Atalaya Mining Copper Sa · LSE:ATYM
Atalaya Mining Copper Sa — Atalaya Mining — Investor Presentation (December 2017)
34 slides from Atalaya Mining Copper Sa's investor presentation, December 2017
Slide 1: A low risk copper producer in Europe
A low risk copper producer in Europe December 2017 AIM:ATYM / TSX:AYM
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) has commitment whatsoever. Each party to whom this Presentation is variations of ore grade or recovery rates; failure of plant, been prepared by Atalaya Mining Plc (the “Company”). While the made available must make its own indep
Slide 3: Disclaimer
Disclaimer Technical Disclosure mining experience. The scientific and technical information and qualifications as set out above. The Company’s actual financial Unless otherwise noted, all scientific and technical information contained in this Presentation has been reviewed and approved by position a
Slide 4: Introduction
Introduction AIM:ATYM / TSX:AYM 4
Slide 5: Highlights
Highlights Assets located in established and stable mining jurisdictions Capitalisation (30-Nov) in Spain Ticker (Exchanges) ATYM (LSE:AIM), AYM (TSX) Access to developed and modern infrastructure GB£ £1.75 Share Price Low capital intensity C$ $2.80 Basic Shares million 116.7 Well understood
Slide 6: Proyecto Riotinto
Proyecto Riotinto Proven and predictable production in southwest Spain Brownfield refurbishment and expansion of existing infrastructure Previously operated last in 2001 by Minas de Rio Tinto (previously Freeport McMoran) Successful restart, expansion, and ramp-up to 9.5 Mtpa throughput RIOTIN
Slide 7: Production Results
Production Results Consistent operational performance Ore throughput (Mtpa) Commercial production declared in 3 12 Annualised (Mt) February 2016 Quarterly (Mt) 2 8 Restart project began in summer 2014 1 4 Initial throughput capacity of 5 Mtpa -- -- 9.5 Mtpa nameplate capacity Q1 2016 Q2 2016
Slide 8: Q3 2017 Financial Results
Q3 2017 Financial Results Revenues (€m) Revenue €53.4 €115 Q3 copper production of 10.7 kt, up 18% over €35.7 prior quarter of 9.1 kt €25.7 €50 Concentrate sales of 41.0 kt, down from 55.6 kt in prior quarter ̵ Concentrate inventory build of 6.3 kt vs. prior quarter Q1 2017 Q2 2017 Q3 2017 YTD
Slide 9: Guidance for 2017
Guidance for 2017 Robust operational outlook for remainder of 2017 Guidance 2016 Actual 2016 Guidance 2017(1) Concentrate 115-130 kt 122.5 kt 165-175 kt Contained Cu 23.5-27 kt 26.2 kt 36-39 kt Cash Cost US$1.90-US$2.10/lb US$1.95/lb US$1.95-US$2.10/lb 1. See page 3 “Future Oriented Financial Inform
Slide 10: Proyecto Touro
Proyecto Touro Low risk, advanced stage project in Northwest Spain TOURO Previously operated by Riotinto Patiño from 1973 to 1986 Well understood orebody, straightforward metallurgy with test work suggesting high Cu recovery and clean concentrates RIOTINTO Excellent infrastructure and location
Slide 11: Proyecto Touro
Proyecto Touro Upcoming milestones Near term milestones Q4: NI 43-101 pre-feasibility study Development timeline Permitting: ~12 months Development: 18 to 24 months Ramp-up: 9 months Synergies with Proyecto Riotinto CAPEX: development plan to replicate Proyecto Riotinto success OPE
Slide 12: Atalaya Positioning vs. Copper Peers
Atalaya Positioning vs. Copper Peers Attractive valuation metrics(1) Enterprise Value (US$m) EV / 2017e CuEq prod’n (US$/t)(2) EV / 2018e EBITDA(3) Net debt / Enterprise Value (4) Atalaya $325 Atalaya $7,740 Atalaya 4.4x Atalaya 13% (4) Imperial Metals $837 Capstone $5,922 Avanco 3.9x Avanco nmf Cen
Slide 13: Proyecto Riotinto Expansion to 15 Mtpa
Proyecto Riotinto Expansion to 15 Mtpa (“15M”) For all slides in respect of the Riotinto Expansion, see page 3 “Forward Looking Statements” and page 3 “Riotinto Expansion Plan”. All figures are based on internal management estimates and are subject to change post completion of further technical stud
Slide 14: 15M Introduction
15M Introduction In Q2 2017, Atalaya commissioned a study to expand Proyecto Riotinto processing throughput Several options considered and evaluated using certain criteria: Potential plant downtime due to tie-ins Potential capital costs Ease of construction and modification to facilities
Slide 15: Illustrative 15M Highlights
Illustrative 15M Highlights Increased scale and reduced cost structure Select project statistics (2018+, 10yr Averages) Increased production 15 Mtpa (1) 9.5 Mtpa Variation Nameplate capacity increased ~60% Operating Metrics Total Ore Mined Mt 163 150 +8.5% 43% increase over next five years Tot
Slide 16: Illustrative 15M Financial Summary
Illustrative 15M Financial Summary Capital & operating cost breakdown Financial highlights (2018+) 15M – Capital Cost Estimate NPV Sensitivities – 15M Expansion vs. 9.5 Mtpa Case (US$ m) US$18.00/oz silver, 1.15 USD:EUR, 8% Discount Rate Cost (€m) $1,250 Direct Field Costs €51.8 9.5 Mtpa Case NPV 15
Slide 17: Proyecto Riotinto
Proyecto Riotinto From mid 2014 to end 2017 Atalaya team continues to drive production growth Delivered initial restart of Riotinto at ~50% lower cost than contemplated in 2013 NI 43-101 Nearly doubled throughput capacity within 1st year of commercial production Phase I Restart Expansion to Ex
Slide 18: 15M Execution Schedule
15M Execution Schedule Overall duration of 18 months Critical path driven by new milling section Basic and detailed design – 4 months Procurement – 10 months Construction – 10 months Commissioning – 6 months Overall duration (18 months) Basic & detailed design (4 months) Procurement (10
Slide 19: Proyecto Riotinto Life-of-Mine
Proyecto Riotinto Life-of-Mine Copper production (kt) and AISC (US$/lb) 70 $3.50 60 $3.00 50 $2.50 40 $2.00 30 $1.50 20 $1.00 10 $0.50 -- -- 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Exploration programme focused on known orebodies AIM:ATYM / TSX:AYM 19
Slide 20: Future Positioning
Future Positioning Low-risk growth pipeline and competitive costs 2017E copper production (kt) 237 202 134 107 86 74 – 79 62 50 – 55 54 51 36 – 39 29 19 13 – 14 13.5 – 14 (2) (2) (2) KAZ Lundin HudBay OZMinerals Capstone Atalaya Sandfire Atalaya Taseko Imperial Atalaya Copper Mtn. Ero Copper CAML Av
Slide 21: Conclusion
CONCLUSION AIM:ATYM / TSX:AYM 21
Slide 22: Highlights
Highlights Assets located in established and stable mining jurisdictions in Spain Access to developed and modern infrastructure Low capital intensity Well understood deposits with low operational risk Strong pipeline of low-risk growth projects Riotinto 15 Mtpa expansion expected to grow
Slide 23: Contact Information
Contact Information Alberto Lavandeira CEO Telephone: +34 959 59 28 50 Email: info@atalayamining.com Investor Relations North America Investor Relations UK and Europe Michelle Roth Carina Corbett Roth Investor Relations 4C Communications Ltd Telephone: +1 732 792 2200 Telephone: +44 20 3170 7973 Ema
Slide 24: Appendix
APPENDIX AIM:ATYM / TSX:AYM 24
Slide 25: Existing Riotinto Plan View
Existing Riotinto Plan View AIM:ATYM / TSX:AYM 25
Slide 26: 15M Flowsheet
15M Flowsheet ROM ORE ROM ORE TO FLOTATION PRIMARY CRUSHING PRIMARY CRUSHING SAG MILLING GYRATORY JAW (NEW) (EXISTING) (NEW) O/F O/F O/F COARSE ORE PRIMARY SECONDARY SECONDARY STOCKPILE CYCLONING CYCLONING CYCLONING (EXISTING) (NEW) (EXISTING) (EXISTING) U/F U/F U/F PRIMARY SECONDARY SECONDARY PRIMA
Slide 27: Reserves and Resources
Reserves and Resources The pit design and internal cut-off grade are based on a long term copper price of US$2.60/lb. Resources are pit-constrained at US$3.20/lb Cu Ore (Mt) Copper (%) RESERVES* Proven 78 0.45 Probable 75 0.44 TOTAL 153 0.45 RESOURCES (inclusive of reserves)* Measured 90 0.43 Indica
Slide 28: Senior management
Senior management Strong Technical & Financial Expertise Team with proven and lengthy experience in the start-up and operation of Alberto Lavandeira mines in Spain and internationally, supported by local and international Chief Executive Officer, Director consultants Ángel López: Plant. Over 18 year
Slide 29: Board of Directors
Board of Directors Strong Technical & Financial Expertise Alberto Lavandeira CEO, Director Roger Davey Jesús Fernández Harry Liu Jonathan Lamb Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Over 40 years’ experience in the Head of the M&A team for Vice Pr
Slide 30: Ownership Structure
Ownership Structure Major shareholders (current) Supportive strategic shareholders Shareholding % Out Have participated in prior equity raises for Urion Mining International (Trafigura) 25,684,344 22.0% restart of Proyecto Riotinto Yanggu Xiangguang Copper (XGC) 25,588,527 21.9% Indicative of
Slide 31: Key Investor Rights
Key Investor Rights Company Agreement Terms XGC • Subscription Agreement * Pre-emptive right over further issues of equity shares1 • Offtake Agreement One board seat2 Offtake granted over 49.12% of life of mine reserves in the Technical Report Orion Mine • Subscription Agreement * Pre-emptiv
Slide 32: Summary of Astor case ruling
Summary of Astor case ruling Judgement handed down 6 March 2017 Deferred Consideration payment not triggered, hence first instalment has not fallen due No breach of obligation to use all reasonable endeavours to obtain a senior debt facility or duty of good faith No lump sum or fixed payment s
Slide 33: Mining Industry in Spain
Mining Industry in Spain An established mining-friendly jurisdiction 1 2 6 Aguas Teñidas Significant Mining Proyecto Riotinto Copper Copper, zinc Infrastructure 11 3 4 Substation located Power 8 1km from mine site 10 7 Supplied from Las Cruces 9 SPAIN Aguablanca Campofrio reservoir Copper Nickel, co
Slide 34: AIM:ATYM / TSX:AYM
AIM:ATYM / TSX:AYM
Atalaya Mining — Investor Presentation (December 2017) on 6ix