Atalaya Mining Copper Sa · LSE:ATYM

Atalaya Mining Copper Sa — Atalaya Mining — Investor Presentation (April 2019)

33 slides from Atalaya Mining Copper Sa's investor presentation, April 2019

1. Slide 1: A low risk copper producer in Europe

   A low risk copper producer in Europe Investor Presentation April 2019

2. 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

3. Slide 3: Introduction

   Introduction A low risk copper producer in Europe  Proven management team with a consistent track record of delivery EL FERROL Port  Experienced global mine builders with considerable expertise in Spain A CORUÑA Port VILLAGARCIA Port  Prudent operators TOURO  Assets located in established and st

4. Slide 4: Proyecto Riotinto

   Proyecto Riotinto Strong track record of delivering ahead of time and below budget – 5Mtpa to 15Mtpa in four years 1. Restart 5.0Mtpa Incremental throughput: +5.0Mtpa Nameplate copper production: 25ktpa Incremental capex: US$82m Cumulative capex intensity: US$3,280/t Cu Unit processing cost: ~€5.01/

5. Slide 5: Proyecto Riotinto

   Proyecto Riotinto Real near term growth at low capital cost  Steady production progress with record quarter in Q4 2018  FY Cu production ahead of guidance HUELVA RIOTINTO SEVILLE  Cu production guidance for 2019 Matsa increased to 45,000-46,500 tonnes (Trafigura & 0 E-803 50 100 km Proyecto Las C

6. Slide 6: Q1 2019 Production Results

   Q1 2019 Production Results Ore throughput (Mtpa)  Q1 2019 Cu production: 10,219 tonnes 3 12 (Q1 2018: 9,441t; Q4 2018: 11,172t) Annualised (Mt) Quarterly (Mt) 2 8  Consistent throughput and improving 1 4 recovery rates -- --  Copper head grade – 0.46% (Q1 2018: Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

7. Slide 7: 2018 Production Results

   2018 Production Results Q4 – another record quarter Ore throughput (Mtpa) 3 12 Annualised (Mt) Quarterly (Mt)  Q4 2018 Cu production: 11,172 tonnes 2 8  FY 2018 Cu production: 42,114 tonnes 1 4  Consistent throughput and improving -- -- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2018 recovery

8. Slide 8: 2018 Financial Results

   2018 Financial Results  Income Revenues (€m)  Revenues: €189.5m (2017: €160.5m) €53.4 €52.7  Group profit: €34.4m (2017: €18.2m) €45.7 €48.9 €42.8 €45.1  EPS (€ cents): 25.4 (2017: 15.5) €35.7 €25.7  Operating Costs  Cash costs/lb US$1.94 (2017: US$1.91)  AISC/lb: US$2.26 (2017: US$2.30) Q1 2

9. Slide 9: Operating Margins & 2019 Guidance

   Operating Margins & 2019 Guidance All-in Sustaining Average Market Company realised Costs per lb Cu price per lb Cu Price per lb FY 2018 $2.26 $2.93 $2.95 Published Q1 2019 $2.81 $2.80 May 2019 Robust operational outlook continues for 2019 Guidance 2018 Actual 2018 Guidance 2019(1)(2) Contained Cu 3

10. Slide 10: 15M Expansion Plan

    15M Expansion Plan 15Mtpa expansion over 80% complete New primary crusher AIM:ATYM / TSX:AYM 10 SAG Mill construction

11. Slide 11: 15M Expansion Plan

    15M Expansion Plan Mechanical completion scheduled for end Q2 2019 SAG Mill construction New primary crusher AIM:ATYM / TSX:AYM 11

12. Slide 12: 15M Expansion Plan

    15M Expansion Plan 15Mtpa expansion over 80% complete Construction of new flotation area AIM:ATYM / TSX:AYM 12

13. Slide 13: 15M Expansion Plan

    15M Expansion Plan Mechanical completion scheduled for end Q2 2019 SAG pebble crushing and conveyors Construction of new flotation area AIM:ATYM / TSX:AYM 13

14. Slide 14: Reserves and Resources

    Reserves and Resources • Update in July 2018 reported 29% increase in P&P reserves, 21% increase in contained Cu to 822,000t and reduction in strip ratio from 1.95:1 to 1.43:1 • Pit design and internal cut-off grade based on long term Cu price of US$2.60/lb • Resources are pit-constrained at US$3.20

15. Slide 15: Exploration at Proyecto Riotinto

    Exploration at Proyecto Riotinto Additional underground potential with copper/zinc/lead in adjacent orebodies  At Atalaya/San Dionisio pit, massive sulphides and stockwork mineralisation are being targeted – 2,900 m of a 19,000 m programme drilled to date with positive preliminary results  Drillin

16. Slide 16: Proyecto Touro

    Proyecto Touro Low risk, advanced stage project in north-west Spain TOURO  Previously operated by Riotinto Patiño from 1973 to 1986  Well understood orebody with straightforward metallurgy RIOTINTO  Excellent infrastructure and location  Access to power, water and highways  Local skilled workfo

17. Slide 17: Proyecto Touro

    Proyecto Touro  Development timeline  Development: 18 to 24 months from receipt of permits  Ramp-up: 9 months  Synergies with Proyecto Riotinto  CAPEX: development plan to replicate Proyecto Riotinto success  OPEX: by sharing services and support  Marketing: clean premium concentrates  PFS e

18. Slide 18: Proyecto Touro: Results of pre-feasibility study

    Proyecto Touro Results of pre-feasibility study Over 40km of exploration and in-fill drilling completed to provide basis of NI 43-101 PFS  Strong project economics  Project parameters  Project NPV: $180m at 8% discount rate using long-term Cu price of $3.00/lb  Contained copper: 392,000 tonnes 

19. Slide 19: Proyecto Touro: Resource and Reserve Statements

    Proyecto Touro Resource and Reserve Statements Resource Summary-Constrained by the $3.20/lb Cu Pit Resource >= 8.14 NSR $/t (Internal Cutoff) >= 9.71 NSR $/t (Breakeven Cutoff) Class kt NSR $/t Cu% RCu% kt NSR $/t Cu% RCu% Measured 69,258 22.55 0.42 0.37 67,886 22.82 0.42 0.37 Indicated 60,592 19.24

20. Slide 20: Proyecto Touro: Process engineering under way

    Proyecto Touro Process engineering under way  Parallels with Riotinto expansion project  Management confident with Capex projections and projected timeline  Metallurgical test works completed  Well-known metallurgy with excellent recoveries and clean high grade concentrates Riotinto actual Touro

21. Slide 21: Proyecto Touro: Exploration

    Proyecto Touro Exploration  Previous mining combined with more recent exploration work gives us a good understanding of the deposit  Mineralisation remains open to the north, west and south Dates Company DD RC DD/RC DD m RC m 2017-2018 ATYM 4 104 17 636 13,254 2016-2017 ATYM 1 93 26 1,443 10,838 2

22. Slide 22: Proyecto Touro: Additional exploration ground

    Proyecto Touro Additional exploration ground signed in 2017  Option to acquire 100% of the adjacent exploration concessions covering 122.7km² giving full control over the known prospective belt  Financial terms similar to existing Touro deal (mining concession)  Option over 2.5 years with 75% pay

23. Slide 23: Atalaya Positioning vs. Copper Peers

    Atalaya Positioning vs. Copper Peers Attractive valuation metrics(1) Enterprise Value (US$m) EV / 2019e CuEq prod’n (US$/t)(2) EV / 2019e EBITDA(3) Net debt / Enterprise Value (4) (4) Atalaya $443 Atalaya $9,363 Atalaya 5.9x Atalaya 5% Ero Copper $1,363 Capstone $4,967 Capstone 4.1x Ero Copper 10% C

24. Slide 24: Future Positioning

    Future Positioning Low-risk growth pipeline and competitive costs 2019E copper production (kt) 318 166 131 125 74 – 79 68 68 50 – 55 49 45 – 47 43 37 28 13 (2) (2) KAZ Minerals Lundin OZ Minerals HudBay Atalaya Sandfire Capstone Atalaya Imperial Atalaya Taseko Ero Copper Copper Mtn. CAML 15 Mtpa + 1

25. Slide 25: Investment Case

    Investment Case  Strong financial position  Nil financial debt(1)  Working capital position improved as a result of cash generated from operations and equity placement  Proven management team with strong track record of consistent delivery  Production guidance ahead of expectations  Well under

26. Slide 26: APPENDIX

    APPENDIX AIM:ATYM / TSX:AYM 26

27. Slide 27: Ownership Structure & Corporate Overview

    Ownership Structure & Corporate Overview  Supportive strategic shareholders  Have participated in prior equity raises for restart of Proyecto Riotinto  Indicative of continued support for the company Major shareholders (as at 30 April 2019) Overview (as at 30 April 2019) Holder # shares % ISC Exc

28. Slide 28: Senior Management & Board of Directors

    Senior Management & Board of Directors Strong Technical & Financial Expertise Alberto Lavandeira César Sánchez Julian Sánchez CEO, Director Chief Financial Officer GM, Operations Nearly 40 years’ experience Formerly CFO of various companies Over 20 years´ international mining operating and developin

29. Slide 29: Riotinto Plan View

    Riotinto Plan View AIM:ATYM / TSX:AYM 29

30. Slide 30: 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

31. Slide 31: Key Investor Rights

    Key Investor Rights Company Agreement Terms XGC • Subscription Agreement *  Pre-emptive right over further issues of equity shares1  One board seat2 Orion Mine • Subscription Finance Agreement *  Pre-emptive right over further issues of equity shares1  One board seat2 Liberty Metals • Subscripti

32. 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

33. Slide 33: Contact Information

    Contact Information: Investor Relations CEO Carina Corbett Alberto Lavandeira 4C Communications Ltd Telephone: +34 959 59 28 50 Telephone: +44 20 3170 7973 Email: info@atalayamining.com Email: corbett@4ccommunications.com AIM:ATYM / TSX:AYM

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