Atalaya Mining Copper (LSE:ATYM) — 2023 Annual General Meeting

0:00 Good morning, and welcome to the ASILI Mining PLC twenty twenty three AGM Proceedings. Is meeting. Attendees will be in listen only mode. The company may not be in a position to answer every question submitted today. Have a review all questions and publish responses where appropriate to do so. I'd now like to hand you over to Roger Davy, non executive chairman. Good morning, sir. Good morning. Good morning. Good morning. Most definitely here. Let's very quickly run through the sort of running order of the day of the meeting. Although the chairman's statement is included in the notice of meeting, I will, for good form and from people in the meeting, read the chairman's letter first before the formal meeting. We will then have the formal meeting. And can I ask you please to restrict any questions to the matters on hand at the formal meeting?

0:51 Following this, we'll have a presentation by Alberto on the main activities of the company, and that would be a more open question and answer session. So if I could start then, please, before the formal meeting, with the with the Chairman's letter. The year of 2022 presented a number of external challenges as always, although these were very different from those experienced in 2020 and 2021, where COVID-nineteen affected everyone. We started 2022 with a positive outlook with pandemic in rapid decline and economies all over the world picking up speed. The speaking of euphoria quickly subsided with the events of Ukraine in February 22, which immediately impacted the European and global energy markets. Today, a spike in natural gas prices in Europe pushed electricity prices in Spain to over €500 per megawatt hour in March 2022 and similar levels in late August and early September twenty twenty two, more of that will be lumped up later on, with average realized prices in quarter three reaching around €290 per megawatt hour.

1:56 The year was dominated by geopolitical and macroeconomic factors. For the most part, our operations performed well. The company continued its good track record with copper production totaling 52,300 tonnes compared to 56,000 in '21. The slight reduction in production was a result of lower grades and lower throughput. The plant performed solidly throughout the year despite the negative impact of the twenty twenty two transport sector strike and related stoppages in the first quarter. The average process plant feed grade of 0.4 copper and the process recovery rate of approximately 86% were consistent with reserve estimates and budgeted figures. Cash costs and all in sustaining costs for 2022 of $3.16 per pound and $3.37 per pound, respectively, were on the upper end of guidance for the year. This was mainly due again to the increase in electricity costs and other supplies and lower production volumes, partially offset by the weaker euro.

2:57 Strong operating performance shown in the latter part of 2022 continued into 2023, with the plant maintaining throughput above nameplate capacity. Accordingly, copper production guidance for 2023 remains as previously announced in the range of 53,000 to 55,000 tonnes. Despite solid operational performance during 2022, revenues for 2022 were EUR361.8 million compared to EUR405.7 million in 2021. Reduction was due to lower production volumes and the lower average realized copper price. EBITDA for 2022 was €55,300,000 compared to €199,000,000 in 2021. EBITDA significantly affected by the inflation environmental environment globally and mainly due to the increase in electricity costs during 2022 of around €64,000,000 At one point, we thought we were working only for the electricity companies.

4:04 On a much more positive note, as a result of electricity price so far in 2023 and the benefits from two key company specific electricity procurement initiatives, we are optimistic on the outlook for overall electricity costs for 2023 and beyond, with the relevant knock on positive effect on the profitability. The long term power purchase agreement, PPA, took effect on the start of 2023. This ten year agreement will provide the company with approximately 31% of its current electricity requirements at a fixed rate that is over 75% lower than the estimated average realized electricity price in 2022 and also, in fact, below the rates realized in 2021. The company continues as well in the advancement construction of its 50 megawatt solar plant, Rio Tinto, which is expected to provide approximately 22% of its current electricity needs but fully operational in late twenty twenty three.

5:00 Combined, the 50 megawatt solar plant and the long term PPA will provide over 50% of the company's current electricity requirements as we make both below historical prices in Spain. The company continues to evaluate additional renewable initiatives that could deliver further low cost carbon free electricity for its operations at Rio Tinto, including the use of green turbines. For additional growth prospects, the company is currently focusing on five main projects. The company remains fully committed to the development of the Toledo copper project in Galicia in the North Of Spain. Running parallel with the permitting process, the company is focused on a number of initiatives relating to securing the social license, including engaging stakeholders in the region in advance of its plans to submit the improved project design.

5:49 In the South, at the project Massawa Burnley, exploration work is ongoing with three core rigs platinum core rigs, continuing to be active with encouraging drill results. Drill target completion continues to progress, and the first drill testing is planned at beote.east, another area. Two short drilling programs were completed at Vincona and Chaparral copper gold projects at Projecto Oso Moreno. Finally, in February 23, the company announced the completion of a new preliminary economic assessment for the Projecto VLT block that contemplates a new integrated mine plan for the Cerro Colorado adding San Dionisio and San Antonio on the the direct connection to the Cerro Colorado, which has the potential to increase copper production by increasing the blended head grade process at three zero two plus 15,000,000 ton a year plant.

6:39 The company continues to advance construction of the Ilimix Phase 1 plant, which activities have included the completion of most recent or most civil construction and structural work, sorry, with equipment now being assembled. Conditioning of the plant is expected in the second half of twenty twenty three. Once operational, the Elix plant is expected to produce high purity copper or zinc metals on-site, allowing the company to potentially achieve higher metal recoveries from complex polymetallic ores, lower transportation and concentrate treatment charges and a reduced carbon footprint. Our balance sheet remains strong, and this allows the company to continue to invest in growth and cost reduction initiatives.

7:26 Elix, including Elix, higher grade ore bodies and exploration across our portfolio. In addition, our financial strength means we are well positioned to develop Toro should approvals be granted, which could become a new source of copper production in Europe. I'd like to thank Harry Yu, who stepped down from our Board following a long period of service and also welcome Kate Harcourt to the company's Board. Kate has immense experience in sustainability, and we look forward to publishing our second sustainability report in 2022. I would like to take this opportunity to express our appreciation for the continued dedication and commitment of the management and staff. At the same time, I would like to thank not only the Board members for their continued support, guidance and close involvement with the company activities, but also our valued shareholders for their continued and effective support.

8:17 Thank you. Ladies and gentlemen, I'd now like to move to the formal part. So ladies and gentlemen, welcome to the Annual General Meeting of ATALAYA Mining. My name is Roger Davy, Chairman of the company. And with the consent of the meeting, I will again be very proud to have as the Chairman of the meeting. Please

8:39 let introduce my fellow directors. We have Alberto Lohendeira, Neil Gregson, Neil Kate Harcourt. Steven Scott is, I think, on this side. We have apologies, I'm afraid, from Christopher Fernandez and Hussein Baum, who unfortunately could not be present here today. Mr. Secretary, the meeting will now come to order. And with your consent, I shall ask Dominic Bjornichampion to act as secretary and scrutiny of the meeting. Dominic Bjornichampion. The following documents have been tabled, the circular containing the notice of meeting, the forward proxy and the annual report containing the audited consolidated financial statements for the year ending 12/31/2020. These documents are available for any shareholder to examine, if so wish.

9:29 Annual general meeting of the company was convened by the notice to shareholders dated the 06/01/2023. May I take the notice as read? Seeing no objections, I will take the notice. Read. Violence, there is a quorum present, and that notice called in this meeting has been given in accordance with the company's articles of association. I now, therefore, declare that the meeting is properly called and constituted for the transaction of business. I may now turn to the resolutions put before the meeting and propose each resolution in time to the meeting.

10:01 Resolution number one provides for the receipt and consideration of the audited and subjected financial statements of the company for the year ended 12/31/2022 and the reports of the directors and auditors therein. In respect of Resolution one, the proxy votes have been cast as follows: four, ninety four million eight hundred and forty five thousand seven hundred and one, which is effectively 100% against 58,206 and withheld 176. And I propose resolution number one as a normal resolution. Those in favor, please. Thank you very much. So it's okay. I declare the resolution. Okay. And with the consent of the meeting, I'd rather not read the detailed numbers of the for and against because all the proxies are in the range of nine between 8599%.

10:54 So if you don't mind, I'll just say I'll just declare the the proxies as as a positive vote. Otherwise, we'll be here all day listening to 94,000,000 later than sixty four thousand. So the second resolution number two provides for the reelection of mister Roger Davy as director of the company. Resolute in respect to resolution two, again, ninety three percent four. Can I ask the shareholders, please, to propose resolution number two? Thank you, Those in favor? Thank you. Those against? Otherwise, I'll see you outside. Resolution number three provides for the reelection of Mr. Alberto Mamanda as director of the company.

11:41 Again, proxy votes are 100%. I'll now propose the resolution number three as an ordinary resolution. Those in favor? Thank you very much. Those against? Resolution number four provides for the reelection of mister Jesus Fernandez Lopez as a director of the company. Respect to resolution four, again, it's 100% to the four. So I now propose the resolution number four as an ordinary resolution. Those in favor? Thank you. Those against? Thank you very much. I declare the resolution, Karen. Resolution number five provides the reelection of Doctor. Hussein Bharma as Director of the company. In respect to resolution five, again, 100% for. I now propose resolution number five as an ordinary resolution. Those in favor? Thank you. Those against?

12:29 I declare the resolution held. Resolution number six provides for the reelection of Mr. Neil Bregson as director of the company. In respect to Resolution seven of Wiggins. Like I said, Senate four, I now propose Resolution number six as an ordinary resolution. Do those in favor? Thank you. Those against.

12:49 Resolution seven provides for the reelection of Stephen Victor Scott, directed the company. In an overwhelming four vote, I now propose the resolution number seven as an all new resolution. Those in favor? Thank you. Thank you. I declare the resolution carried. Sorry. Resolution number eight provides the reelection of missus Kate Jane Richards, missus Jane Harcourt. Respect to resolution 80, overwhelmingly four, I now propose the resolution number eight as an ordinary resolution, Sheriff. Thank you very much. Those are same for those reports. I declare the resolution carried. Resolution number nine provides the reelection of Ernst and Young sites for selected as the order piece of the company. Respected resolution nine, again, over 100% for and now close resolution number nine as an ordinary resolution.

13:40 Those in favor, thank you, Pat. Thank you, thirty days, the right pledge resolution card. Resolution 10 provides the declaration of a final dividend for the financial year ending 12/31/2022 of US dollars 0.0385 per ordinary share of the company. And number 100% for four. So I now propose resolution number 10 as an ordinary resolution. Thank you. Those in favor, those against? No. Thank you. I declare the resolution. Resolution number 11. Authorizes the directors to grant, pursuant to ATALAYA MINING COP long term incentive plan 2020, options to subscribe for up to 6,993,960 ordinary shares of 7.5 b each in the capital of the company, ordinary shares, representing approximately 5% of the company's issued share capital at an exercise price in accordance with the terms of the long term incentive plan.

14:45 In respect to Resolution 11, the proxy votes are 482%. I now propose the meeting Resolution 11 set out in the notes convening the annual general meeting. As at least 50% of the company's issued share capital is represented at the meeting, in order for the resolution to be effective, it must be passed by a simple majority of the votes cast on the resolution. Can I ask those in favor, please? Thank you. Those again? You very much. I declare the resolution carried. Resolution number 12 authorizes the directors to issue or grant rights to subscribe for up to an aggregate of 13,987,921 ordinary shares, representing approximately 10% of the current issued share capital of the company as if the rights of pre exemption in section 60B of the company's law did not apply.

15:40 Such ordinary shares issued or rights to subscribe to ordinary shares granted pursuant to this authority will be at a price of not less than 20% discount to the market price of an ordinary share on aim for the ten trading days immediately preceding such issue or graft. In respect of resolution 12, again, proxy voting votes are added to 100% and now proposed resolution of the 12 set out to the notice of the remaining language of the meeting. As at least 50% of the company's issued share capital is represented at the meeting, in order for this resolution to be effective, it must be passed by a simple majority of the votes passed on the resolution. Those in favor, please. Thank you. Those against. Thank you very much. I declare the resolution. Resolution 13 provides for an amendment to the company's articles of association by the addition of a new regulation 161 as follows entitled the Green Dominant Conciliation.

16:37 One six one, the company may, by a special resolution and upon consent given by the registrar of companies, continue to exist as a legal person subject to the legal regime of a country or jurisdiction other than The Republic Of Cyprus to be operated pursuant to the laws of such country or jurisdiction. In respect to resolution 13, we have proxy votes of 100%. I now propose resolution number 13 as a special resolution to be effective. It must be approved by at least 75% of votes cast at the meeting. Those in favor, please. Thank you. Those against? Thank you very much. I declare the resolution carried. Thank you. Sorry, took so long. That completes, in fact, the formal business of the Annual General Meeting.

17:28 And I thank everybody for attending. Alberto will now make his presentation on the company's activities where we can have a more question and answer session. And after which, we'd like to invite you all to stay and join us for refreshments. We have some time now? We do. We do. Good. Thank goodness for that. And take the opportunity to discuss the business further if you wish. So thank you very much. I'll now hand over to our doctor for the presentation.

18:05 Check. Thank you very much, Roger. I'm going to try not to repeat the figures that Roger has shown. Let's try to summarize briefly what we have done in '22, how 2023 is going, and what are the what's the future for this company. The two was a tough year where we've used more or less as expected and slightly less due to a strike in Spain and much higher cash costs, especially due to the high inflation related to energy prices.

18:53 Even with that, we completed the year with a good cash flow position of EUR 53,000,000 and generated EUR 55,000,000 EBITDA.

19:09 From the asset level, we continue to progress. We continue to progress the announcement we had in the satellites around the Tinto were some the issue of San Antonio, storage deposits that were partially mined in the past. In Massawa River, that's something that we have acquired some time ago. We published the technical reports on those projects and we started exploring around the belts to find new new resources. And we also started with the construction of something called Elix and a solar plant and I will talk about that a little bit. An important thing from the corporate point of view is finally we got rid of Aster, We concluded all the litigations after having to pay €53,000,000, which which was not a bad outcome because we had to pay for several years.

20:09 And we also paid an interim dividend besides the dividend we have paid in 2021. And then the board has approved another small dividend to complete that first.

20:22 A long standing shareholder actually sees all their stake because they run into trouble in the real estate in China. So the shares were executed by a bank and he resigned as being an executive direct non executive director. He was one of the kind of founders of the company. So this this person was substituted by others. We had the main addition to the board and was Kate Harcourt, which is brings a lot of experience from the sustainability point of view, which is consistent with the establishment of a sustainability committee in our company and the publishing of the first system related report in 2021 and now recently the 2022 report.

21:12 And also related to ESG matters, we commissioned a water treatment plant in total, which I will speak about that, which is essential to get the purpose. So that was '22 in a nutshell. So how things are going in '23? We're almost half the year. First quarter, 12,000 tons of copper with EBITDA 24,000,000, a little bit lower than if you divide the whole guidance of 55,000 in four, but we are on track for our guidance. We expect to be we expect to be substantially higher production and lower costs during the second quarter.

21:57 So I think you should reasonably expect that will be with the within the guidance for 2023. Our cash position to continue to be okay, despite the fact that we're investing heavily in the solar plant and in the in the LX. And this situation will continue as we speak during the year. We had also continued doing lots of activities. And as a result of that, we got permits ready to start mining in Macebo Alverde, so it would be an underground mine where we'll track the ore to the system grants. And we already also got the environmental permits for the expansion of the team to especially that gives us space for additional 10 of paying this capacity.

22:49 This is in a process of almost three years, so imagine how important is this. And also we continue with construction of Ericsson Soar. An important point is that we continue with our plans to move the market as our main list. As a first step of that, we have finally delisted from Toronto. We didn't have too many shareholders there, in order to shareholders. So finally, this basically, we do this as a cost saving exercise.

23:25 We are to be our our target is to be listed at the end of the year, the main market is in lot. From the health and safety point of view, we've been dealing with health with with food safety results. We we could deal with the restoration and water treatment by the total, which is essential for our permits, and and we continue to evaluate more renewals. So now we're in a very short talk. For how this is the future of the company. You can see the growth of this company from back in 2000 and when we restarted the old power plant of around four and a half million tons per year to basically 15,000,000 tons per year during the last four years, quite established production.

24:18 The question marks that were raised by some people about the ability of the production to be extended after such a short ramp up period in such a short capital has been not improved. We also as a result of that, we have been reducing between fifty two and fifty five thousand, 56,000 tons of copper. It's quite a low grade, which means the operations are going quite well. So let's talk about the briefly about the main issue on 2022 and what's changed in 2023. In different colors in this slide, you will see in the lower part what was the price of electricity in the Spanish market back in 2020.

25:07 It was quite low due to the COVID obviously, the crisis, but in many cases we had a fixed price of around 60, which is two lines in the bottom are 0 and 100, so more or less slightly higher than half the way between 0 and 100. The next year in gray, you will see that started low, but then you started going up in the last part of the year due to the expansion of the gas prices. The black line, which is in the upper part is our, you can see two big spikes, one in February, late February, one in in August, which are the invasions related to invasion of Ukraine. And with the heat wave that happened to be in Spain, coincident with the blowing of the pipes of the Baltic. Those prices of electricity of 300 to 500 were basically five times higher than what we used to have in the past.

26:04 What did we do about that? We hedged for ten years in that smallest pie that you can see downwards in February, we covered ourselves for 30% of our production at around 54% for ten years starting in January 2023, taking advantage of the market at that moment to be able to make sure we were covered at less than we used to have, less price than we used to have. We also started with a permitting reconstruction of a solar plant and ordering all the equipment. But besides that the gas has stabilized due to or situation of gas as you know, Europe is not so dependent to Russia anymore.

26:50 And since January in the kind of brown lines, you have seen, you can see that the market prices of electricity have been always in general under 100. And actually, recently, they're around around €100 per megawatt hour. That's the price of the market and 30% of that we paid at around 55, which means our price is under 100, which is roughly half what it used to be. So this is essential because last year, we used to pay in previous years €20,000,000 of electricity bill. And last year we paid ATA. So €68,000,000 that went directly to your cash flow with tax.

27:43 And of course, the electricity also has relation with the line, with the line prices, with the other consumables and with inflation in general. So I think we are in a good start and we will continue looking at opportunities to hedge a little bit more in the future. But besides that, as I said before, finally we got all the panels on-site, We are starting the construction. There were some delays with permits of the village of Rutinco and some supply issues. Finally, it looks like it looks like at the end of this year, we'll have another 20% of our needs basically covered at zero price.

28:28 And of course, this is forever.

28:33 In addition to that, are we so interested in electricity?

28:37 We have started something called Elix. ELECS could be named for electricity mixing, leaching, and it's something that just in case you are not familiar with it, basically consists of leaching, zinc and copper concentrates using electricity as the main consumption. So for us, it's very important to have cheaper electricity prices. So last year, we decided construction of our first phase plant, this is how it looks in the last months. It's going a little bit slower than we have expected It will be in a novel process and it will be constructed by some company that we finance. But finally, we have the commissioning of this plant in later part of this year at the end of the summer.

29:30 You can see some pictures of outside, inside you can see for example, the position of the electromagnetic cells that are already there. So things are going moving probably slower than I would have liked, but they're moving quite fast in general for such a complex and new project. All the motor control centers are on-site, basically waiting for cables to be distributed, including transformer equipment for all the footprints on-site. And as you can see, it's a quite a complex installation that will be ready to be commissioned at the end of the year. And why is this important? People may ask, well, why are you interested in Enel X? At the end of the day, you only have copper. Well, we do have copper. We do have copper, but in our we are only mining copper in the center of the pit that you see in the center of the picture that's called ferrocobra.

30:23 If we didn't have anything else, we're mining for around ten years. I remind you, we've been mining already for eight years. So it's talking about eighteen years mining at the higher phase, when back in 2013, the facility started showing a point of twelve years life. In the foreground and in the background, we we have two deposits called San Antonio, San Felician, which are historic deposits that are well known. As you can see, they have higher corporate rate and higher and had good sales values. Well, the first thing we said is how can we put this into our we submitted certain studies, how we could blend these deposits into with our open pit.

31:11 How this looks if we I if I made a vertical section along this this pit, it will be looking something like this. At the left side, you will see the ATALAYA pit. It is some red color, rates of copper over 1% and orange and yellow is over 0.2%. So I think that's yellow is interesting and red. And you can see in the right side a higher grade flattish deposit going under down, but we lined up. You can see several things in the centers where we mined the federal Colorado. In the two sides, you can mine a big part of it, we have no conflict and parts of it underground in the right side, we'd mine it only using underground vessels. So this is the reason why energy would be very important.

32:00 In any case, when we commissioned with Tetra Tech, a PA, we said, look, I wanted to put a plan here, how we can mine this in the next fifteen years using just floatation, and we put the plan together. But because we have the same deposits, it would be very interesting to also have some other means of recoveries. With very low recoveries for copper and zinc, what I mean, copper in the range of 70 versus our 86 right now and zinc also in the range of the seventies, we will get in this results of production and some results of after tax that was in values of certain discoveries, which I always speak with.

32:46 What is the effect of LX? Well, we are in '23 and we have we can assume that on the 26, we don't need zinc. Zinc is shown in black, It's shown as copper equivalent, but actually zinc in there. It means before '26, we have to decide if we are going to go with straight flotation or we are going to with helix. So right now, we have this industrial plant being constructed, so we believe that this thing can help. Why it didn't help? Because the recoveries using this this leaching is it is like it's it's like trying to separate small crystals of of sugar, brown sugar and white sugar by hand versus dissolving dust. When you dissolve them, you get basically a 100% recovery, 95% recovery.

33:33 So the differential recovery between one method and the other are huge, like 20 points. In any case, we are as you know, we are quite conservative and we assume this plan even without considering that. With this plan, our production will get us to over 60,000 tons of copper in the next four years, only copper without adding any zinc or at least minimum zinc and then going to over a 100,000 tons of copper equivalent including the copper. Long term prices, copper prices of $3.85, which is our current price flat for the next fifteen years, the cash flow undiscounted, which is the cash flow you use after tax, especially useful to pay dividends is 2,700,000,000, which is more than five times our market cap.

34:30 Even if we discount it at 8%, it would be 1,400,000,000, which is roughly three times our market cap. Of course, we believe that the copper price in fifteen years is going to be much higher than that. And you can see our leverage. This project will still be economic even at very low copper prices, but at higher copper prices and we believe the market is going to over $4 the undiscounted cash flow is over $3,000,000,000 and the discounted cash flow after tax is $1,500,000,000 which is more than five times our cash flow. So I think we have a very good a very nice future at the mid teens itself. And this is assuming that in the next fifteen years, we don't discover any reserves or sources from any of the satellites like Paso Del Belem, Bajada Del Es, or any other places that we are drilling.

35:28 This is just one of the parts of our growth. The other one is total. I'm really sorry to be saved every day, just every year, I'm going to get the purpose of total because I'm from the area. What you're seeing in the picture is the the old pits that were mined back in '87, the last time. And in the public picture is the form of the old flat. We are going to be putting up these. But we got in 2020, a negative environment in fact declaration. So that negative declaration was due to I think it was political reasons, but the main thing is, look, two excuses.

36:13 One is that we cannot warranty that the payments are not going to break things or are not going to break like they did in the Brazilian disaster of Bolivia that happened previous year and flood the rivers. And second is that there is remnant acid water from the past historic mines that if you see what happened in the past, then it's going to happen in the future. Well, for the first statement, we said, look, we are going to remove the water from the tailings. So it's not just water on top of the veins. It's impossible, and it breaks and makes out of the water. Second thing, we are going to fix the water situation, which is a quite unusual case because normally, this was going to be done after we started up.

37:04 We said, look, these are authorities, our Australians because it's a lady running the water authority that allow us to fix the water situation, which is our legacy situation, which is not our problem, the same way that we were going to do it as as promised in the project, let us show you that can be done, then that's in the future of when working is going to be worse, it's not true. We did that. We were allowed to take the plant, started operating the plant since the beginning of the year working in closed circuit. But this the result of of this, and this is visible, is that the rivers that are flowing under under the total project in the left slide, you can see how was the Ladnas River, which takes the water from all slippage back in August 2021.

38:01 The water is not that dirty as it looks, but there was a precipitation. There was a precipitation of of iron in stones. And what you can see in and what you can see in the right side, hopefully, you can see it well, is the pristine river, the same picture from the same position with the river totally pristine. Obviously, this is known by the authorities and this gives us a very good feel that now those two species cannot be used anymore. And there's a third reason why we believe this thing is this time is different. In the past, we used to have some people saying no to the mine, they even remember four years ago some activists coming to one, our MGM saying that they didn't want the mine, there were two persons, one was locals.

38:57 Well, few couple of months ago, we got 3,000 people saying yes to the mine, getting together into a market, they are all local, and you seldom find these things in the mine. Normally, you mean this would be very vocal, say, we are against the mine, and it's not very common that the TV comes there and shows local support for this project. So we are very confident with this. So with all this, where are we going? Where I see this company? Well, in the range of 54,000 tons of copper produced this year, In the next four years close to 60,000, growing to 91,000 tons. So this is just copper and copper equivalent.

39:46 And then with total, we will be we will be going, that's an average of years with total another 30,000 So our company in, I would say, three years time, we would range of 100,000 tons, 120,000 tons of copper, which is doubling the gain what we doubled from 2015 to 2019. And why we believe this the shareholders will will benefit? Coppers were going up. The copper consumption is going up in the left graph. I'm sure you have seen it in lots of studies.

40:31 It's going up simply because there's more people in the in the work and there's more people living in the cities, they all want their car, their fridge, their TV. On top of that, has been the normal growth that you can see in the gray part of the graph. We have something that's been in all the countries, which is electrification. It's not we are not talking about electrification of vehicles. We're talking about the use of green energies to try to reduce the carbon c o two in the world. So there is a clear increase in demand and consensus of deficit of around 6,000,000 tons in the next six years. Six years is nothing.

41:19 Six years is a blink in the eye and you are there. The biggest producer, which is called out of this public information you just released a few days ago, is going down on their minds. This is their old state. They struggle to keep production flat with huge investment, I guess, in the next few years. So it would be lucky if they can stay as they are. And only in 2030, they may get some projects, new projects being constructed. And why only then? Let's look at the right side of the picture. What's the real cost of projects? Well, Lanka, Pennebago over in Panama, I could also mention Oyu Tolgoi in Mongolia, all between $8.07 $67,000,000,000 investments, current in five to ten years.

42:24 Very high capital intensities with lots of issues of with the new ports, the sanitation, water lines, people, getting people. This is something that we don't have. Ladies and gentlemen, do bear with me just while we reconnect to the room. Ladies and gentlemen, just bear with me while we reconnect to the room for the meeting.

43:13 We will be back with you shortly. Alberto, can you hear me from your machine? Because I I'm not seeing Alberto? So all the camera is. Ladies and gentlemen, just wait a momentary while we get reconnected to the room, and we're just coming back in now. Bear with me one second, Alberto. We should get you reconnected. Just accept control, and we'll bring you back through.

44:20 Ladies and gentlemen, do just bear with me while we get the connection back. Just requesting control there, Alberto. Thank you. Alberto, you're back with us. Thank you very much indeed. Can see the slide deck in front of you. Ladies and gentlemen, thank you. We will just resume. So in other words, each time is getting more difficult. Even if we wanted to even if we want to join new markets, We want to build the supply gap just to give you an idea of how big is this gap of 6,000,000 tons. You can see it in the upper corner of the slide. It's equivalent to the production of of five times what Kobelco will be producing, like, six times as Komida, which is the largest mine in the world, like, 20 mine 20 mines of the Abeco.

45:19 So simply, there's no time to build this production. So we are very confident that eventually when China starts opening up normal economy like the rest of the world is moving in this electrification, let's say, sequence or new life of the world, we are going to be seeing a huge consumption of copper, which can take a few years to come, but it's not a question if it will come or not, it will be a question of when. Why is why would you invest in ATALAYA? Well, in London, if you want to invest in copper, you're solely on the fast enough also the second way way. And solar companies are half copper, half other metals, shell of the large companies.

46:26 We believe we are very small of English, but we believe we will be moving to the left side of the graph where we can be a company with much higher market cap and higher equity. And with that, having to take some questions from here from from the here and also to go and see the questions that have been submitted. And at least we have two, three. So if I am I'd like to read all the questions.

47:22 And I have a very interesting and tough, and I would say, untrue question filled of untruth, of lack of truth. But normal with my my behavior, I will answer or reply, and if possible, as clear as possible. So I wanna start reading the questions that I have here. So, how do you see ATALAYA benefiting from energy transitions and the need for more and more hope? Would you benefit from IRA in The U. S? Do you see the benefits of having assets in Europe rather than South America and other jurisdictions?

48:13 Well, yes, we will benefit because copper price has to go up due to its energy transition and obviously we are very, very leveraged to copper. There's no such IRA in Europe or there's something similar where copper has been included in the critical metals, which means list, which means that the Europe has given some instructions that some copper has to be some metal, those metals have been produced in Europe and also give some guidelines for permitting to speed up permitting. This will obviously be essential for total because it would be very hard for the the lithium authorities to say that they do not have the technicians and the equipment and the knowledge and the the controls to be able to construct the mine while they're able to construct cars like Stellatis as one of the big factories in Spain or ships or nice wines or salad, nice clothes.

49:22 So it will be very difficult for the Galician government after these orders from Europe to to benefit from this. And, course, yes, we benefit. We believe that we are positioned uniquely EU because of the same jurisdiction, because some of these mines that I've seen, I mentioned before, that are needed to grow and to balance the market are in let's call it, funny places, like some parts of South America, some of the mountains of North America in the parks, some of some countries in Asia or deep in the middle of making the type of rounds, which are not going to be so easy and so secure unlike in the EU. You can take longer, but it's a kind of safe jurisdiction.

50:18 Future spanning strategy, there is a top of Spain, we have the largest lithium in Europe, Infinity Lithium Corporation, Gulfport, Balovisa, the probably is subject to similar systems from local activists. ATYM has a speak expert expertise in permitting. Are there any talks with this group? Is there opportunity to present itself to ATALAYA not by a stake? Well, it's a tough question. I look I don't I don't like to speak of other companies. This asset, it has a position, but it's nothing to do with the position that we have. Actually, as you haven't seen, we have lot of people are totally in favor. The only position comes from very specific small groups, environmental groups that are against the mining in general, and also against windmills against absolutely everything.

51:17 In the case of this company, the project is very close to living houses. So housing will be at the edge of the pit when it was initially rejected, now they're going underground. So the resistance is more due to the fact that there are people living there and they do like to see around both the shrimp and the meat. Besides that, I am not an expert of this project and and I cannot say if it's interesting or not, specifically this product. What does it mean we don't like lithium? Linking to the previous question, can I please explore the EV chain, lithium and cobalt? Is this being considered? Yes, it's being considered. Yes, we have been looking at several metals not only copper and specifically these metals included here.

52:10 Is satellite mining twenty four hours a day? Yes, of course, twenty four hours a day, seven days a week. We always stop the plant for preventive maintenance, which is carried several months, stop the whole plant for a few days and then run again all the time. The waste from last eight years, can this be reprocessed with LX any value? Actually, it's a very interesting question. I think LX would be better used for high value materials than waste with low grade, low grade would probably not be a high value. But having said that, it's a very good question because we have huge dumps at around 0.2% copper and our cut off is around 0.18 at this copper prices. What does it mean? But if copper prices went up to $5 per pound and I see that happening in the future, Obviously, all these dumps would be economic to be treated because The U. Already accounted for as a cost, so they don't have any mining cost, any waste cost.

53:18 So they would be an additional resource that right now we are not contemplating. We're just keeping this store and yes, in this store and in the future we'll be treating this. This question is likely to have been asked moving to the main board. Can you make this a priority? Yes, we have this for priority. We were moving to the main board and we had an issue with the taxes since the Brexit. Due to The UK not being in the EU, the Spanish authorities tax authorities considered that the main asset was in Spain.

54:04 So selling, they consider that the company was basically selling shares of ATALAYA MINING and being given a share of a new company called ATALAYA METHLS, which even had a name and that would trigger some tax payments in Spain and of course, probably in other places due to the fact of being known EU. So that route was removed, but we continue with moving to the main board and we plan to do this at the end of this year, that's the target. Basically, we'll be listing the shares instead of AIM moving listing them in main board.

54:50 Besides that, we are looking also at at listing the shares in a EU jurisdiction country, call it France, Netherlands, because we have lots of shareholders that buy shares in AIM or shares in UK. We have acknowledged in the past that size is important for a mining company. We let TALLAYA make acquisitions to grow, we merge with our entity to grow. I can tell you that we have looked at lots of companies. We have been signing CAs and make even making offers, final offers and binding offers to to companies.

55:38 Unfortunately, we were not successful because we really need to short term to our shareholders. We will not merge for the sake of merging just to grow. For one simple reason, it has to be something that makes sense and that creates value. Because your shareholders will be asking you to dispose imagine the merger number with somebody at fifty fifty. Would you please dispose 50% of your shares to buy another company at another 50% of the shares of other company just to go because you are larger. If it makes sense, yes. If two plus two is more than than four, it's fine. But normally, due to this fact of the market premiums and so on, and some people are requesting cash, we did not see return and we didn't make any progress on that.

56:33 And we will continue looking with patients and the opportunities we have acquired in the past have been also always with limited expenditures. What did an outlook and you make at least? Well, this year we we have a small dividend that has been approved due to the the relative low cash flow generation. Although our policy will be to to give a 30 to 50% dividend or equivalent to between 3050% of our free cash flow. And we have been consistent to that. And I only have one long question, which is very interesting because normally, I think I should have ignored it.

57:26 But it includes such statements that I think would be unfair for the team and the company not to say. Where is the investment opportunity in ATALAYA? Ten years of historic share price proves that's simply there's none of this one. You can clearly see the excellent remuneration or returns of executive board members enjoying the comp enjoying from the company year to year, including their amazing ability to dispose of their free shares at historic heights. Well, I will stop and he continues. I will start to think this this last statement of selling shares at historic highs, it contradicts with the fact that shame that the share price had been going down all the time. So something is wrong, either one of the two statements, which is also not true.

58:15 Also, ten years of historic share prices prove that simply is in one. But the team, new team came into this company, I just checked. Our share price equivalent now was around 120 and it went down to 95. I have it in front of me. Back in 2015, we were under $101,100 pounds or one pound, almost one year. We have reached $4 per pound and now we are around $3.20 Well, I'm sure that going through COVID, going through two expansions, three expansions and still behaving like that is has given you or this this gentleman ample opportunity to dispose his shares. I'm sure he has lots of faith in our company.

59:03 But it continues because also the rewards to the lawyers, accountants, and procure and procurement is funny. I think it looks like the lawyers and accountants and procurement supposed to be in purchases, our rewards are not payments. Look, I I suppose in the this gentleman, the shareholder, which I think I have to know the name and maybe in Spanish, believes that the lawyers and accountants are work for free, especially if they're good ones, and procurement is to buy things also for free, because probably this is what used to happen in the past. But the hard fact is that shareholders have had no return in real terms. Investors in the shares of a company do not see a return in their investment and do not hear sorry, do so to see a return in their investment, not to hear promises of returns, not to see the Executive Board continually rewarding themselves.

1:00:01 Their share price as I write is struggling about 3. In the past ten years, the price of copper has doubled, but shares in ATALAYA are now below the price prior to consideration. I will continue then I will reply and that's why I know where it's coming from. Investors actually saw better returns on their investment when the business was struggling as a starter called EMED. Why does well, let me continue. Price of the shares of AMED, the consolidators Harry. Went from around 3 up to 8, fantastic, to drop in the same year under one. So a small drop up and down in after ten years, ups and downs, ups and downs. And when we got the company back in 2015, actually had been going down after eight years around 150, I mean, around half of the price that it was initially in 2005.

1:01:06 Why does the ship price of this company fail to reflect investment Put in the rises in copper prices profitability, perhaps the board and your appointed brokers are simply enjoying the lifestyle of this business, force them and they cannot sell the investment story. Maybe it's true. The reality is that in the past, in this company we used to love called INET, they had offices in Seville, in Cyprus, in Slovakia, in houses paid by the company, paid by the company in Siberia, Argentina. Right now, we drive our own cars, all every day for the we work hard. We don't have a minimum office that you can see is quite humble in London, and we continue to work hard for our shareholders.

1:01:56 So I do not accept these statements, and I think they are unfair with the existing shareholders and to the past shareholders and to management and to the board. And I think I could not stop saying this. And that's all I think. Don't have any more. Alberto, that's correct. There's no further questions online. If there's anything in the room or if you'd like to hand back conclude the online session. Any more questions in the room? Yes. Could I just say on that, So the plant, if I understand it correctly, once it's up and running next year, it will supply 20% of the energy costs, etcetera.

1:02:49 Is it in your mind to expand that to bigger plants? Because we there's a certain limit. I mean, the the plant, that's what they call peak capacity, is basically when the sun is up at 03:00 in the afternoon more or less. And that's at that moment, we will almost be sourcing all our demand from the plant and minimum from the net. You still need to the net for technical reasons. If you expand beyond that, you will need to store it somewhere and you will not be able to consume it. So let's say our plant gives 50 megawatts and we consume 50 megawatts. Yeah. So we size to the maximum we could we could consume. And the wind turbines, The turbines, we are still struggling to find the economics on that because they are so so, we are not in a perfect wind area.

1:03:44 The price of the price that the what they call the levelized cost of energy, which is the price equivalent of of the energy that we produce with wind. In that case, it will be around €45 megawatt hour, and that's more or less the futures you can buy anyway. So it would maybe very nice from the ESG point of view. Yeah. But from the economic point of view, and, you know, it's fine ESG, but we also have to Yeah. It has to be economic. Yeah. I understand. I understand. But we continue. Yeah. Just going back to the solar in The UK, it seems we're trying to put excess electricity into batteries. The batteries again also what they call the levelized cost of energy, right now it's over 100. So for a private consumer, maybe it's yes, because there's the consumption of energy, sorry, prices of energies in Spain at least they are lower in the midday due to the wind and sun, and then they are higher in the sunset in end of the day in the sunrise.

1:04:52 So those peaks, if you have batteries and squids and when you have a higher consumption in your office, in your house, waking up or going to bed, makes sense for private consumers. Or in our case, I think it's still more economic to have a long term price agreement with the consumer, because of the company. And now, if you look in the future prices in the space, you could lock in €56 per megawatt hour. So there's a page called OMIP, which anyone can look at, and you see the future prices starting in January. Right now, you can lock €56. So there's no sense to to put the batteries so far. In the future, it will come. It will come especially because you have hours during the day that the price is zero.

1:05:41 And Yeah. Certain days, we win and sell. Thank you. Thank you. Just a question about foreign exchange. If the pound gets stronger against dollar and euro, and dollar gets weaker against other currencies, what would they impact beyond the profitability of the pound? The pound and the euro, well, I think the only changes for the share price because most of our costs are in euros or dollars. I would say 70% are in euros and 30% are in dollars. And dollars are treatment charges, shipping charges, as matters and things like that. And here in pounds, we don't have too much costs. I mean, there are some office costs, fees, listing fees, lawyers, accounting, so it doesn't affect too much the The general control. Yeah. Doesn't affect much. What's important is the euro.

1:06:38 We would like a weak euro. Thank you. Let's just silence. How realistic do you think we're gonna get on to the main market by the end of the year? Okay. Okay. Be happy with that. I remember talking to you. Yes. Yeah. Indeed. A bit of a disappointment. We weren't there by then. But to Indeed. Yes. And as Alberto mentioned, that was mainly because the transactions were suspected to be done, firstly, coming to The UK and then afterward going to the main market. Yeah. So, obviously, being listed on the bidding listed, it's always been a priority and continues to be a priority.

1:07:26 So we we have started doing some good work on it, and we are progressing. So we are finding data by choice, and we have a lot of leverage of the work that we did last year. And and we are in a very good position to, you know, get it done Yeah. As soon as possible. It is in in our mind to get it done before year end. But but, again, you know, we we also expected this last year at a point to disappoint you. No. It's difficult when you have to allow other people. It's exactly. And I I think according to the advisory, it says a very little chance that we can have delays, but there is always, you know, kind of companies that you you didn't expect that. But but just to remark that this is a priority for the company, and we we we know this is a, you know, feedback that we are consistently receiving from the shareholders.

1:08:19 And and I I it's a it's in, you know, priority list and continue to be the priority list, and we we we try to execute as soon as possible. In in my view, it can only be very good once we get this on the main market. It opens up the doors for institutions that can't buy on Abe shares or companies abroad. So the sooner, the better. Yeah. Great. Thank you. Thank you. Any other questions? I'll answer with with time because of refreshments and some more informal questioning. That's fantastic. Thank you very much. And I'd like to thank the Board for updating attendees today. Please ask attendees not to close the session as you'll be redirected to provide your feedback and all the team will better understand your views and expectations.

1:09:16 Minutes. Thank It's you, and good morning to you. Thank you.