Atalaya Mining Copper Sa · LSE:ATYM
Atalaya Mining Copper Sa — Atalaya Mining — BMO Global Metals, Mining & Critical Minerals Conference 2024
60 slides from Atalaya Mining Copper Sa's conference presentation, February 2024
Slide 1: European copper producer with operations in Spain
European copper producer with operations in Spain BMO Global Metals, Mining & Critical Minerals Conference February 2024
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) has been prepared by Atalaya Mining Plc (the “Company”). While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers
Slide 3: Disclaimer: Technical Disclosure
Disclaimer: Technical Disclosure Technical Disclosure – Proyecto Riotinto Unless otherwise noted, all scientific and technical information relating to Proyecto Riotinto is based on and derived from a technical report entitled “Technical Report On the Riotinto Copper Project” dated September 2022, pr
Slide 4: Atalaya Overview
ATALAYA MINING > Atalaya Overview
Slide 5: Atalaya Snapshot
Atalaya Snapshot European copper producer with operations in Spain . Ticker Operations Asset locations ATYM Riotinto District TOURO AIM (LSE) 15 Mtpa processing plant SPAIN Cerro Colorado mine MADRID San Dionisio deposit Capitalisation San Antonio deposit OSSA MORENA Proyecto Masa Valverde RIOTINTO
Slide 6: Operating Performance
Operating Performance Stable copper producer following the delivery of multiple expansions Throughput (Mt) Copper Production (kt) 6
Slide 7: Scarcity of Copper Pure Plays
Scarcity of Copper “Pure Plays” Atalaya is the 2nd largest copper “pure play” listed in London LSE Miners by Market Capitalisation (£bn) and Copper Contribution to Revenue Source: London Stock Exchange, company filings Note: Copper revenue contribution based on last reported financial or trading sta
Slide 8: Intention to Move to Main Market
Intention to Move to Main Market Premium listing expected to broaden appeal to new institutional investors Overview ▪ Atalaya has announced its intention to apply for the Company's ordinary shares to be: ‒ Admitted to the premium listing segment of the Official List maintained by the Financial Condu
Slide 9: Strong Outlook for Copper
Strong Outlook for Copper Copper demand is accelerating, but building new mines is increasingly difficult Growing Global Copper Consumption (Mt)(1) Falling Production from Legacy Mines(2) ▪ 5x CODELCO’s 2022 to 2030 ▪ 6.5x Escondida mines CODELCO Copper Production Outlook demand growth is ▪ 19x Cobr
Slide 10: Our Journey
ATALAYA MINING > Our Journey
Slide 11: Atalaya Team Track Record
Atalaya Team Track Record Strong experience in permitting, financing and constructing major projects Aguablanca (Ni, Cu) El Valle-Boinás (Au, Cu) Mutanda (Cu, Co) Tasiast (Au) 11
Slide 12: Iberian Pyrite Belt
Iberian Pyrite Belt World class minerals district Riotinto Masa Valverde 12
Slide 13: Riotinto District
Riotinto District World class regional infrastructure 13
Slide 14: Regional Infrastructure
Regional Infrastructure Access to the critical inputs required for modern and sustainable operations Villages Fresh water reservoirs Current TSF Transmission line Planned future TSF NOT REQUIRED: Fresh water • Labour camps reservoir • Fly-in fly-out • Desalination Villages • Pipelines • Own smelter
Slide 15: Proyecto Riotinto: 2014 vs. Today
Proyecto Riotinto: 2014 vs. Today Original Gyratory Crusher – 2014 New Jaw Crusher – Today 15
Slide 16: Proyecto Riotinto: 2014 vs. Today
Proyecto Riotinto: 2014 vs. Today Original Mills – 2014 New Mills – Today 16
Slide 17: Proyecto Riotinto: 2014 vs. Today
Proyecto Riotinto: 2014 vs. Today Original Flotation Circuit – 2014 New Flotation Circuit – Today 17
Slide 18: Riotinto Today
Riotinto Today Modern and large-scale operation well-positioned for future growth 18
Slide 19: Riotinto Operating & Funding History
Riotinto Operating & Funding History Re-start & expansions delivered with low capex intensity & limited equity dilution Expansion History and Throughput (Mt) Re-start – 5.0 Mtpa Expansion to 9.5 Mtpa Expansion to 15.0 Mtpa Executed: 2015 Executed: 2016 Executed: 2019 Capex: US$82m Incremental Capex:
Slide 20: Dividend History
Dividend History Policy seeks to balance capital returns, growth projects and financial strength Dividend Payments ▪ Inaugural dividend Dividend Announced US$ GBP EUR US$ GBP EUR declared in 2021 per sh per sh per sh m m m Inaugural 27-Oct-21 0.3950 0.294 0.345 54.6 40.6 47.3 ▪ Formal dividend polic
Slide 21: Riotinto District Vision
ATALAYA MINING > Riotinto District Vision
Slide 22: Atalaya's Significant Resource Base
Atalaya’s Significant Resource Base Including higher grade deposits located near existing processing plant CuEq Resources (Mt)(1)(2)(3) Riotinto District Deposit Grades(2)(3) Producing Growth Pipeline Producing Growth Pipeline 1. Alconchel historical 43-101 resource per 21-Dec-2021 announcement 3. M
Slide 23: Potential Future Processing Hub
Potential Future Processing Hub ATYM’s 15 Mtpa mill could become a processing hub – similar to MATSA model Key Operations in the Iberian Pyrite Belt Magdalena Aguas Teñidas Cerro Colorado San Dionisio San Antonio Riotinto East MATSA (Sandfire) Sotiel 29 km Riotinto District Masa Valverde / Majadales
Slide 24: 2023 Riotinto PEA
2023 Riotinto PEA Contemplates an integrated mine plan that leverages Riotinto’s 15 Mtpa plant Cerro Colorado San Antonio Open pit: 200.7 Mt Underground: 11.8 Mt Riotinto Processing Plant (M&I) 0.37% Cu (Inferred) 1.32% Cu, 1.79% Zn Capacity: 15 Mtpa San Dionisio Open pit: 56.1 Mt (M&I) 0.91% Cu, 1.
Slide 25: Riotinto Deposits
Riotinto Deposits PEA contemplates that the adjacent deposits are mined concurrently Long Section San Dionisio Cerro Colorado San Antonio CuSW Mineralised material PolyMS CuSW PolyMS Open pit Mining method Underground Open pit Underground Legend Copper grade 0.00 – 0.139% 0.14 – 0.199% 0.20 – 0.499%
Slide 26: 2023 Riotinto PEA: Mining & Processing
2023 Riotinto PEA: Mining & Processing Mine plan prioritises higher grade material from San Dionisio and San Antonio Mining Schedule by Mineralised Material Source (Mt) Processing Schedule by Mineralised Material Type and Grade 26
Slide 27: 2023 Riotinto PEA: Production & NPV
2023 Riotinto PEA: Production & NPV Demonstrates the potential for strong economics and production growth Production Profile(1)(2) NPV After-Tax ($m) Sensitivity to Copper Price ($/lb) and Discount Rate(3) Copper Price ($/lb) 2.80 2.98 3.15 3.33 3.50 3.68 3.85 4.03 4.20 0% 928 1,240 1,545 1,848 2,15
Slide 28: San Dionisio Deposit
San Dionisio Deposit Initial stripping is underway to prepare the area for future mining phases February January 2024 2024 Copper Resource Grade (M&I) 28
Slide 29: E-LIX Phase I Plant
E-LIX Phase I Plant Commissioning in progress; expected to unlock significant value February 2024 Recoveries 29
Slide 30: E-LIX Phase I Plant
E-LIX Phase I Plant Capable of producing high purity copper and zinc at mine site January 2024 30
Slide 31: 50 MW Solar Plant
50 MW Solar Plant Expected to lower Atalaya’s carbon footprint and deliver cost savings February 2024 Electricity Sources 31
Slide 32: Proyecto Touro
ATALAYA MINING > Proyecto Touro
Slide 33: Proyecto Touro Location
Proyecto Touro Location World class infrastructure 33
Slide 34: Proyecto Touro
Proyecto Touro Past producing mine and currently operating as an aggregate quarry 34
Slide 35: Proyecto Touro
Proyecto Touro Water treatment plant is addressing legacy water runoff issues 35
Slide 36: Proyecto Touro
Proyecto Touro Ongoing river restoration August 2021 – Lañas River May 2023 – Lañas River 36
Slide 37: Proyecto Touro
Proyecto Touro Increasing support from the local communities 37
Slide 38: Conclusion
ATALAYA MINING > Conclusion
Slide 39: Illustrative Production Potential
Illustrative Production Potential Growth driven by higher grades at Riotinto and potential Touro development Copper Equivalent Production (kt)(1)(2) 1. Recovered metal in concentrate. 2. Copper Equivalent production is calculated from results presented in the PEA and based on $3.50/lb Cu, $1.20/lb Z
Slide 40: Investment Highlights
Investment Highlights ▪European MAP copper producer with scale, growth and consistency ‒ Copper production of >50 ktpa from Cerro Colorado alone ▪‒ ASSETS Potential to grow copper equivalent production to >100 ktpa via existing portfolio ‒ Riotinto reserves plus adjacent deposits support long life-o
Slide 41: Appendix
ATALAYA MINING > Appendix
Slide 42: Key Information
Key Information Capitalisation Share Price Performance (GBp) Ticker - LSE: AIM ATYM Share price (16-Feb-24) GBp 327 Basic shares m 139.9 Fully-diluted shares m 144.7 Market capitalisation (basic) £m 457 Market capitalisation (basic) US$m $576 Cash (at 31-Dec) €m 120 Debt (at 31-Dec) €m 64 Enterprise
Slide 43: Electricity Prices in Spain
Electricity Prices in Spain Market prices have continued to moderate vs. extreme levels in 2022 Spot Market + Adjustment in Spanish System (€/MWh)(1)(2) 1. Source: OMI, Polo Español S.A. (OMIE), day-ahead operations program 2. Since 15-Jun-2022, includes daily adjustment mechanism related to legisla
Slide 44: Q4 2023 Production Results
Q4 2023 Production Results Good throughput helped to offset lower grades Copper production Ore Throughput (Mt) 12,775 tonnes Cu 13,969 tonnes Cu | Q4 2023 Throughput & recoveries 4.1 Mt ore processed 0.36% Cu ore grade Copper Recovery 4.0 Mt | Q4 2023 0.41% | Q4 2023 85.39% Cu recovery 86.24% | Q4 2
Slide 45: YTD 2023 Financial Results
YTD 2023 Financial Results Continued balance sheet strength and cash flow generation Income statement highlights Revenue: €254.8m Op. costs: €(195.5)m €262.0m | YTD 2022 €(224.8)m | YTD 2022 EBITDA: €59.2m Profits: €31.4m €37.1m | YTD 2022 €22.9m | YTD 2022 Cash flow statement highlights Operating C
Slide 46: Cash Costs & AISC Breakdown
Cash Costs & AISC Breakdown Improved operating costs vs. 2022 due to lower electricity prices and offsite costs $/lb Copper Payable Q3 2023 Q3 2022 YTD 2023 FY2022 ▪ In Q3 2023, significantly Mining 0.90 0.75 0.84 0.79 lower electricity Processing 0.93 1.53 0.90 1.31 prices and lower Other site oper
Slide 47: AISC Benchmarking
AISC Benchmarking ATYM remains well-positioned vs. copper peers Reported AISC (US$/lb) Source: Company filings Note: Peers that do not disclose AISC include Central Asia Metals, Ero Copper, Sandfire and Taseko 47
Slide 48: Capital Cost Summary
Capital Cost Summary Much of phased capex linked to polymetallic material and underground mines Unit 2023-2026 2027-2036 LOM By Mineralised Material Type Related to CuSW Material $m 44 - 44 Related to PolyMS Material $m 98 154 252 Related to Overall Operations $m 20 142 196 Subtotal $m 162 297 492 C
Slide 49: Operating Cost Summary
Operating Cost Summary Potential reduction in cash costs due to higher grades and by-product credits Unit 2023-2026 2027-2036 LOM Site Operating Costs Mining $m 435 1,371 1,875 Processing $m 492 1,275 1,962 G&A $m 71 177 275 Subtotal $m 998 2,822 4,112 Contingency of 5% $m 50 141 206 Total $m 1,048
Slide 50: CODELCO Challenges (1/2)
CODELCO Challenges (1/2) World’s largest copper producer has struggled to offset its declining production Copper Production (kt) Net Debt ($bn) Source: CODELCO 50
Slide 51: CODELCO Challenges (2/2)
CODELCO Challenges (2/2) Significant capex / execution risk associated with maintaining production levels CODELCO Business and Development Plan (Production in Mt) $40bn capex over 10 years Source: CODELCO 51
Slide 52: Copper Outlook: Escondida
Copper Outlook: Escondida Falling grades at the world’s largest copper mine highlights industry challenges Annual Copper Production (kt)(1) ▪ Escondida is the world’s largest copper mine ‒ Owned by BHP (57.5%), Rio Tinto (30%) and Japanese consortiums ▪ Production could fall materially from FY2027,
Slide 53: EU Critical Raw Materials Act
EU Critical Raw Materials Act Copper has been added to the EU’s list of Strategic Raw Materials Background of Act Focus on Building European Capacity ‒ Ensure a secure and sustainable supply of ‒ Identify “Strategic Projects” in the EU and critical raw materials for EU industry third countries that
Slide 54: U.S. Critical Materials Assessment
U.S. Critical Materials Assessment Copper is viewed as essential to clean energy technologies by the U.S. DOE DOE Vision & Strategy Importance of Copper ‒ Develop reliable, resilient, affordable, diverse, ▪ Copper has been moved from noncritical 29 sustainable, and secure domestic critical in the sh
Slide 55: 2022 Sustainability Report
2022 Sustainability Report Highlights Atalaya's commitment to enhancing its disclosure and performance 2022 Sustainability Report ▪ In May 2023, Atalaya published its second annual sustainability report ‒ Statistics and data are for the year ended 31 December 2022 ‒ Represents a core component of At
Slide 56: Safe Tailings Management
Safe Tailings Management Atalaya applies industry best practice standards to its tailings facility 2023 TSF Report ▪ In March 2023, Atalaya published a standalone document that summarises the Company’s approach to safe tailings management ▪ The report includes details on the history of the tailings
Slide 57: Reserves and Resources
Reserves and Resources Attributable Grade Contained Metal Contained Metal Asset Ownership Tonnage Cu Zn Pb Au Ag Cu Zn Pb Au Ag CuEq Cu CuEq Notes Mt g/t g/t Mt Mt Mt Moz Moz Mt Mt Mt Cerro Colorado 100% Reserves 185.7 0.38% - - - - 0.7 - - - - 0.7 0.7 0.7 M&I 200.7 0.37% 0.15% 0.03% - - 0.7 0.3 0.1
Slide 58: Senior Management
Senior Management Decades of operations, project development and financial expertise Alberto Lavandeira César Sánchez Enrique Delgado Chief Executive Officer, Director Chief Financial Officer Operations – General Manager, Proyecto Riotinto Over 40 years’ experience Former CFO of companies in Former
Slide 59: Board of Directors
Board of Directors Mining, capital markets, sustainability and finance expertise Non-Executive Chair of the Over 40 years’ experience in the mining industry. Former Senior Mining Engineer at NM Rothschild & Sons; Roger Davey Board former Director, VP and GM, AngloGold (Argentina). Currently a direct
Slide 60: Atalaya Mining plc
Contacts: Atalaya Mining plc Alberto Lavandeira, CEO +34 959 59 28 50 info@atalayamining.com
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