Atalaya Mining Copper Sa · LSE:ATYM
Atalaya Mining Copper Sa — Atalaya Mining — Q4 2022 Earnings Presentation
46 slides from Atalaya Mining Copper Sa's earnings presentation, Mar 22, 2023
Slide 1: European copper producer with operations in Spain
European copper producer with operations in Spain 2022 Annual Results 22 March 2023
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, p
Slide 4: 2022 Annual Results
ATALAYA MINING > 2022 Annual Results
Slide 5: Review of 2022
Review of 2022 Good operational performance but external challenges impacted financials ‒ Copper production of 52,269 tonnes, partially impacted by the logistics strike in Q1 2022 ‒ AISC of $3.37/lb, due to extremely high electricity prices, input cost inflation and soft Q1 production Operating ‒ AI
Slide 6: Q4 2022 Production Results
Q4 2022 Production Results Strong final quarter of production provides momentum into 2023 Copper production Ore Throughput (Mt) 13,969 tonnes Cu 13,872 tonnes Cu | Q4 2021 Throughput & recoveries 4.0 Mt ore processed 0.41% Cu ore grade 3.8 Mt | Q4 2021 0.41% | Q4 2021 Copper Recovery 86.24% Cu recov
Slide 7: Q4 2022 Financial Results
Q4 2022 Financial Results Improved quarterly performance provides the basis for a stronger 2023 Income statement highlights Revenues (€m) Revenue: €99.9m Op. costs: €(81.7)m €101.5m | Q4 2021 €(50.5)m | Q4 2021 EBITDA: €18.2m Profits: €8.0m €50.9m | Q4 2021 €28.0m | Q4 2021 Cash flow statement highl
Slide 8: FY2022 Financial Results
FY2022 Financial Results Balance sheet strength maintained despite high opex and capex investments Income statement highlights Revenue: €361.8m Op. costs: €(306.5)m €405.7m | FY2021 €(206.6)m | FY2021 EBITDA: €55.3m Profits: €30.9m €199.1m | FY2021 €132.2m | FY2021 Cash flow statement highlights Ope
Slide 9: Input Cost Inflation
Input Cost Inflation Prices of key consumables remain high compared to historical levels Indexed Prices (Dec-2020 = 100) Explosives Diesel Tyres Electricity Steel Balls Lime = direct link to gas prices 9
Slide 10: Cash Costs & AISC Breakdown
Cash Costs & AISC Breakdown Significant impact of high electricity prices, but some moderation in Q4 2022 $/lb Copper Payable Q4 2022 Q4 2021 FY2022 FY2021 ▪ FY2022 costs were heavily impacted Mining 0.70 0.67 0.79 0.64 by inputs linked to Processing 1.11 0.56 1.31 0.61 energy: Other site operating
Slide 11: Electricity Market Update
ATALAYA MINING > Electricity Market Update
Slide 12: Electricity Prices in Spain
Electricity Prices in Spain 2022 electricity prices were unprecedented, although 2023 has improved so far Monthly Arithmetic Average Electricity Price (€/MWh) (1)(2)(3) ▪ In 2022, spot market electricity prices in High Spain were well above historical prices Average and long-term futures contracts (
Slide 13: Natural Gas Prices in Europe
Natural Gas Prices in Europe Gas prices have fallen significantly from peaks in late August / early September Natural Gas Prices – 1 Month Ahead (€/MWh)(1) ▪ European gas prices have been elevated vs. historical levels since late 2021, which was the lead-up to the invasion of the Ukraine ‒ Prices sp
Slide 14: Electricity Price Impact on Unit Costs
Electricity Price Impact on Unit Costs Impact of PPA, solar plant and market price normalisation to reduce AISC AISC Breakdown ($/lb Copper Payable) ▪ Electricity prices are responsible for the vast majority of the AISC increase in 2022 compared to prior years ‒ Other costs have been impacted by inf
Slide 15: 2023 Guidance
ATALAYA MINING > 2023 Guidance
Slide 16: 2023 Guidance
2023 Guidance Steady operational performance and improved cost outlook expected for 2023 Operational Guidance ▪ Production Ore mined Mt 17.1 ‒ Performance consistent with recent quarters is expected for 2023 Waste mined Mt 24.1 ▪ Costs Ore processed Mt 15.3 – 15.8 ‒ Moderation in market electricity
Slide 17: 50 MW Solar Plant
50 MW Solar Plant Expected to provide stable, low cost and carbon-free energy beginning in 2023 50 MW of combined capacity 17
Slide 18: E-LIX Phase I Plant
E-LIX Phase I Plant Construction progressing; expected to unlock significant value 18
Slide 19: Exploration Programme
Exploration Programme €10 million budget will focus on Masa Valverde, Riotinto East and Ossa Morena 19
Slide 20: Growth Strategy
ATALAYA MINING > Growth Strategy
Slide 21: Strategic Asset Portfolio
Strategic Asset Portfolio Total land package covers >1,200 km2 in three prolific mining districts in Spain Alconchel Proyecto Ossa Morena Proyecto Touro Riotinto Riotinto East Riotinto Atalaya permits District Proyecto Masa Valverde Processing facilities Active mine Main deposits Mineral occurrence
Slide 22: 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 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 Aguas Teñidas Magdalena Cerro Colorado MATSA San Dionisio San Antonio (Sandfire) Riotinto East Sotiel Riotinto Masa Valverde / District Majadales Atala
Slide 24: New Riotinto PEA
New Riotinto PEA Highlights of independent study
Slide 25: New Riotinto PEA
New Riotinto PEA Contemplates an integrated mine plan that leverages Riotinto’s 15 Mtpa plant San Antonio Underground: 11.8 Mt Riotinto Processing Plant (Inferred) 1.32% Cu, 1.79% Zn Capacity: 15 Mtpa Cerro Colorado Open pit: 200.7 Mt (M&I) 0.37% Cu San Dionisio Open pit: 56.1 Mt (M&I) 0.91% Cu, 1.1
Slide 26: New Riotinto PEA: Mining & Processing
New 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: New Riotinto PEA: Production & NPV
New 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: 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 29: 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 30: Economic Summary: Base Case
Economic Summary: Base Case $3.50/lb Cu, $1.20/lb Zn, $0.95/lb Pb Unit 2023-2026 2027-2036 LOM Gross Revenues $m 1,735 6,549 8,855 Offsite Costs $m (223) (1,064) (1,361) Net Smelter Return $m 1,512 5,486 7,494 Site Operating Costs $m (1,048) (2,963) (4,318) EBITDA $m 464 2,522 3,176 Change in Workin
Slide 31: Economic Summary: Sensitivity Case
Economic Summary: Sensitivity Case $4.03/lb Cu, $1.20/lb Zn, $0.95/lb Pb Unit 2023-2026 2027-2036 LOM Gross Revenues $m 1,995 7,316 9,967 Offsite Costs $m (223) (1,064) (1,361) Net Smelter Return $m 1,772 6,252 8,606 Site Operating Costs $m (1,048) (2,963) (4,318) EBITDA $m 724 3,289 4,288 Change in
Slide 32: Proyecto Touro
ATALAYA MINING > Proyecto Touro
Slide 33: Proyecto Touro
Proyecto Touro Past producing mine and currently operating as an aggregate quarry 33
Slide 34: Proyecto Touro
Proyecto Touro Water treatment plant is operational and will address legacy water runoff issues 34
Slide 35: Proyecto Touro
Proyecto Touro Addressing legacy water runoff issues 35
Slide 36: Proyecto Touro
Proyecto Touro Community engagement initiatives continue 36
Slide 37: Conclusion
ATALAYA MINING > Conclusion
Slide 38: 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, $1.20/lb Z
Slide 39: Key Activities for 2023
Key Activities for 2023 50MW solar plant: Construction progressing; start-up in late 2023 E-LIX: Construction of Phase I plant progressing; commissioning in H2 2023 San Dionisio / San Antonio: New Riotinto PEA technical report pending; permitting Touro: Permitting process continues Proyecto Masa Val
Slide 40: Appendix
ATALAYA MINING > Appendix
Slide 41: Key Information
Key Information Capitalisation Share Price Performance (GBp) Ticker - LSE: AIM ATYM Share price (17-Mar-23) GBp 325 Basic shares m 139.9 Fully-diluted shares m 143.4 Market capitalisation (basic) £m 455 Market capitalisation (basic) US$m $551 Cash (at 31-Dec) €m 126 Debt (at 31-Dec) €m 73 Enterprise
Slide 42: AISC Benchmarking
AISC Benchmarking Despite extreme electricity prices in Europe, Atalaya is well-positioned vs. peers Reported AISC (US$/lb) Source: Company filings Note: Peers that do not disclose AISC include Central Asia Metals, Ero Copper, Sandfire and Taseko 42
Slide 43: 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 44: 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 45: Board of Directors
Board of Directors Mining, capital markets, sustainability and finance expertise Non-Executive Over 40 years’ experience in the mining industry. Former Senior Mining Engineer at NM Rothschild & Sons; Roger Chair of the former Director, VP and GM, AngloGold (Argentina). Currently a director of Centra
Slide 46: Atalaya Mining plc Investor Relations
Contacts: Atalaya Mining plc Alberto Lavandeira, CEO +34 959 59 28 50 info@atalayamining.com Investor Relations Carina Corbett, 4C Communications Ltd +44 20 3170 7973 corbett@4ccommunications.com