Atalaya Mining Copper (LSE:ATYM) — 2024 Annual General Meeting

0:00 Good morning, ladies and gentlemen, and welcome to the ATALAYA MINING PLC twenty twenty four Annual General Meeting. Throughout this recorded meeting, attendees will be in listen only mode. Questions are encouraged, could be submitted at any time using the Q and A tab just situated on the right hand corner of your screen. I'd now like to hand over to the board from ATALAYA MINING. Good morning.

0:19 Thank you. Good morning. I apologize straight away. Afraid I'm either going to be very rude to people at that end of the table or very rude to the camera. So it's a bit with this setup, it's a little bit difficult. So I'll probably be rude to you. Okay. Down by pin. Before we start, can we just set out the form of the meeting? I've been asked to read out the the state the chairman's statement, which, of course, is in the 2023 annual report and then with the very minor modifications also in the r and s office this morning. But I've been asked to read out the whole script of that, which I will do. We will then move on to the formal part of the meeting. And can I please ask that any questions on the form we restrict any questions to the formal part of the meeting initially, which will be we can take before the resolutions?

1:05 After the formal part of the meeting, we will have a presentation by Alberto Lavenda, the CEO. And can I please ask you to hold any questions concerning the performance or strategy or the future company or past of the company from anything until then because the presentation may very well answer some of your questions or most of your questions? So that's the format of the meeting. With with your permission, then I'll start the actual meeting, which is, ladies and gentlemen, welcome to the annual general meeting of ATALAYA MINING PRC. My name is Roger Davy, Chairman of the company. And with the consent of the meeting, I'll elect as Chairman of the meeting. Without hearing any consent, I will start. Please let me introduce, first of all, my fellow directors, Alberto La Vandera over here Neil Gregson, who as we know will be taking over as chairman in three days' time, doctor Hussein Vagma is further down the road, Kate Harcourt over here, Steven Scott next to Kate, and and and warm welcome to our latest director, Carol Whittle, on the right here, and, of course, to Cesar Sanchez, our CFO.

2:18 We have an apology. I'm afraid that Jesus Fernandez could not was not able to be in London today, so he sent his apologies to the meeting. The meeting will now come to order. And with your consent, I shall ask George Hattaneffito, who is in the middle over there, to act as secretary and scrutineer of the meeting. The following documents have been tabled, circular containing the notice of meeting, forward proxy, the annual report containing the audited consolidated financial statements for the year ended 12/31/2023, the new articles, the draft terms of the cross border conversion, the expert opinion with regard to the draft terms of cross border conversion, the announcement informing shareholders, creditors, employees of the company of their right to submit comments regarding the draft terms of the cross border conversion and the solvency declaration on the current financial status of the company as of 04/30/2024 and approved on the 05/24/2024.

3:19 These documents are, of course, available for any shareholder to examine it as they wish. The annual general meeting of the company was convened by the notice of shareholders dated the 05/31/2024. So I'll put it this way. May I take the notice of red? Thank you. I advise that there is a quorum present, and the notice calling this meeting has been given in accordance with the company's articles of association. I now declare that the meeting that is properly called and constituted for the transaction of business and turns the resolutions for the meeting and propose each resolution in turn. Okay. Another apology. I'm afraid this meeting is a little longer than normal because of the redones and the the work we've done. Resolution number one provides

4:14 for the receipt and consideration of the audited consolidated financial statements of the company for the year ended 12/31/2023 and the reports of the directors and auditors thereon. Now full details of the proxy votes will be in the announcement later, and so I've generously been permitted to round off the numbers during this meeting. So the votes for in resolution one, the proxy votes have been cast as follows. The votes for 94,600,000 against 71,000 and withheld is 1,700, which is a vote for of 99.9%. I now propose resolution number one as an ordinary resolution. Those in favor, please. Thank you. Those against?

5:02 Low hands, thank you very much. I declare the resolution carried. Rerelection of Roger Davy. The resolution number two provides for the resolution for the reelection, sorry, of mister Roger Davy as director of the company. In respect of resolution two, the proxy votes have been cast as follows. $494,000,000 against 627,000 and withheld 1,700, which is a vote for of 99.3%. We'd ask the shareholder, please, to propose the resolution. Okay. I'll get it done. Number two, as an ordinary resolution, shareholder oh, sorry. Shareholders. Okay. Would you propose a resolution? I propose a resolution. Thank you. Those in favor?

5:49 Thank you. Those against?

5:51 Not seeing any. I declare resolution to carry. Sorry. Reelection of mister Alberto Lovandeda. The resolution number three votes for the reelection of mister Alberto Lovandeda as the direct as a director of the company. In respect of resolution three, the proxy votes have been cast as follows, 94,400,000 for against this 263,000 and withheld 1,713, which is a vote four of 99.7%. And now proposed resolution number three as an ordinary resolution. Those in favor, please. Those against. Not seeing any. We'll I clear the resolution carried.

6:38 Resolution number four provides for the reelection of mister Jesus Svagnante as director of the company. In respect to resolution four, the proxy votes have been cast as follows. 4, 83,600,000 against 10,400,000 withheld 552,000. That's a vote four of 88.9 of the proxies. And I propose resolution number four as an ordinary resolution. Those in favor? Thank you. Those against? Not seeing any. I declare the resolution carried. Resolution number five provides for the reelection of doctor Hussein Barmah as the director of the company.

7:23 In respect to resolution five, the proxy votes have been cast as follows: for 89,400,000 against 5,200,000 withheld $17.13, which is a 94.5% vote four. I now propose resolution number five as lauding resolution. Those in favor? Thank you. Any those against? Not seeing any, I declare the resolution duly carried. Resolution number six provides for the reelection of mister Neil Gregson as director of the company. In respect of resolution six, the proxy votes have been cast as follows. For 86,100,000 against 8,500,000 and withheld 1,713, which is a vote for of 91%. I now propose a resolution number six as an all new resolution. Those in favor, thank you. Those against, not seeing any, I declare the resolution to carry.

8:19 The resolution number seven provides for the reelection of mister Steven Victor Scott as director of the company. With respect to resolution seven, the proxy votes have been cast as follows: for 89,100,000 against 5,500,000 and withheld 1,713. It's a vote for of 94.1%. And I propose resolution number seven as an ordinary resolution. Those in favor? Those against? Seeing any other further resolution. I apologize. It's a little bit dry and we have to keep going. Resolution number eight provides for the reelection of not because of UK. This is Kate Shane Richards as the director of the company. Respected resolution eight, the proxy votes have been passed as follows.

9:08 Four, eighty nine point one million against 5,500,000 and withheld one point 1,713, which is a vote for of 94.2%. And now propose therefore resolution number eight as an ordinary resolution. Those in favor? Thank you. Those against?

9:26 Not seeing any, I declare the resolution carry. Resolution number nine provides the reelection of Mrs. Carol Whittle as the director of the company. In respect to resolution nine, the proxy votes have been cast as follows: four, it's 94,600,000 against 62,000 and withheld seventeen thirteen, which is a vote for of 99.9%. I now propose resolution number nine as an ordinary resolution. Those in favor? Thank you. Those against? Not seeing any, I declare the resolution carried.

10:05 Resolution number 10 provides for the appointment of PricewaterhouseCoopers Limited as the auditors of the company and to authorize the directors to fix their remuneration. In respect of risk sorry. Was that resolution 10? Sorry. Didn't say that. In resolution number 10, the proxy votes have been cast as follows. Four is 94,600,000 against 64,000 and withheld 47, which is a full a vote for of 99.9%. I now propose resolution number 10 as an ordinary resolution. Those in favor? Thank you. Those against not seeing any, I declare the resolution carried. Resolution number 11 provides for the declaration of a final dividend for the financial year ended 12/31/2023 of US cents 4 per ordinary share of the company. In respect of resolution 11, the proxy votes have been cast as follows.

11:01 Four, ninety four point six million against 17,000 and withheld 1,713, which is a proxy vote four of 100%. And now propose resolution number 11 as an ordinary resolution. Those in favor? Thank you. Those in case.

11:22 Adjusting your glasses. That wasn't a hand. Close against not seeing it, they'll declare the resolution carried. It's like an auction. You can buy things if you like to raise your hand up. The resolution number 12 provides for the approval of the director's remuneration report as set out in the company's audited consolidated financial statements for the year ended 12/31/2023. In respect to resolution 12, the proxy votes have been as follows for 68,000,000 against 26,000,000 and withheld 1,185, which is a vote for of 71.9%. And I propose resolution 12 as an ordinary resolution. Those in favor? Thank you. Those against?

12:13 Thank you. Not seeing any. I declare resolution carried. Resolution number 13 provides for the approval of the director's remuneration policy. In respect to resolution 13, the proxy votes have been cast as follows. Four, sixty three point four million against 31,200,000 and withheld 1,185, which is a vote in favor of 67.1%. I've now proposed resolution number 13 as an ordinary resolution. Those in favor? Thank you. Those against I declare the resolution carried. Resolution number 14 the

12:59 directors to grant pursuant to the ATALAYA MINING PLC long term incentive plan options to subscribe for up to 7,028,285 ordinary shares in the capital of the company. This represents approximately 5% of the company's issued share capital. At an exercise of price in accordance with the terms of the long term incentive plan. In respect of Resolution 14, the proxy votes have been cast as follows: $468,800,000 against 21,500,000 withheld 4,300,000, which is a vote of four of 76.2%. And that proposed the meeting resolution number 14 set out in the notice convened in 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 affected, it must be passed by a simple majority of the votes cast on the resolution.

13:53 So I'll ask those in favor, please. Thank you. Thank you. And those against. Seeing any, I declare resolution 14 carried. Resolution number 15 authorizes the directors to issue or grant rights to subscribe for up to an aggregate of 14,056,571 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 Cyprus Companies Act law Cyprus Latin law, sorry, did not apply. 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 the main market for the ten trading days immediately preceding such a sure grant.

14:47 In respect to Resolution 15, the proxy votes have been cast as follows: 494,600,000 against 62,000 and withheld 1,715. This is a vote for of 99.9%. I now propose resolution 15 set out in the notice 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. Those in favor then, please. Queue and those against. Not seeing any unclear resolution 14 carried. Resolution 16 provides for amendment to the company's articles of association by the deletion of regulation one six one and substituting this with a new regulation 161 as follows.

15:40 161, the company may, in accordance with the Cyprus Company's law, continue to exist as a legal person under the legal regime or jurisdiction of a country other than the Republic Of Cyprus. In respect of this resolution number 16, the proxy votes have been cast as follows. Four, ninety four point six million against 62,000 and withheld 1,750, which is a vote for of 99.9%. And that proposed resolution number 16 is a special resolution. To be effective, it must be approved by at least 75% of the votes cast at this meeting. So those in favor, please. Okay. And those against, not seeing any, I declare the resolution carried.

16:31 Gosh. Nearly there. Resolution number 17 provides for the approval of the cross border conversion of the company pursuant to the draft terms of the cross border conversion issued by the Board of Directors on the 05/24/2024 in accordance with Regulation 161 of the company's existing articles of association. As a result of such cross border conversion, the company shall no longer be governed by the laws of the Republic Of Cyprus, which shall continue to exist as a legal entity, shall be governed by Spanish law. In respect of resolution 17, the proxy votes have been cast as follows. Four, ninety four point six million against 18 19,000 sorry, 19,000 and withheld 47, which is a vote four of 100% effectively.

17:19 I now propose the resolution number 17 as a special resolution to be effective. It must be approved by at least 75% of the votes cast at this. Those in favor, please. Against. Not seeing any, I declare the resolution carried.

17:39 Resolution number 18 provides for the submission of an application to the Nicosia District Court for the purposes of obtaining the pre conversion certificate attesting to compliance with all relevant conditions and to the proper completion of all procedures and formalities in Cyprus with respect to the cross border conversion. In respect of Resolution 18, the proxy votes have been cast as follows: four, ninety four point six million against 18,000 and withheld 47, which is effectively a 100% vote for. Our proposed resolution number 18 has a special resolution. To be effective, it must be approved by at least 75% of the votes cast at the meeting. Those in favor? Thank you. Those against?

18:26 Not seeing any. I declare the resolution carried. Resolution 19 provides for the company sorry. Resolution 19 provides that the company shall take all such steps to make all necessary tax returns with the tax authorities in Cyprus and obtain tax clearance certificates. In respect to resolution 19, the proxy votes have been cast as follows: eight four, eight ninety four point six million against 18,000, and they withheld 47, which is effectively 100% vote for. I now propose resolution number 19 as a special resolution. To be effective, it must be at least 75 of the votes cast at this meeting. Those in favor? Thank you. And those against, not seeing any, I declare the resolution carried.

19:20 And finally, notarization of resolutions and declarations, applications and statements in connection with the cross border conversion. The resolution number 20 authorizes each of the company's directors and Mr. Cesar Sanchez as company CFO as well as the company's legal counsel in Cyprus to one, have these resolutions notarized before a notary public in Spain as well as to take all actions and execute all public and private documents as are necessary or desirable for registration of these resolutions at the Spanish company's registry and for the removal from the registry at the Cypriot company registry of entries relating to the company. And two, is a wonderful legal document. It's over a 100 words in one sentence.

20:13 The lawyers. Not very I'm not sure. Make all declarations, applications, and statements, and do all acts and things as may be necessary in connection with the cross border conversion and to do all related and ancillary acts and sign and register any documents in connection with the registration of the company in Spain and, generally, to do all such things being in the interest of the company for it to cease to be registered in The Republic Of Cyprus and make all necessary notifications, applications to court, any applications to inform the Cypriot and Spanish tax authorities, all the cross border conversion, and take any other necessary actions in this respect, semicolon, and number two three, take all actions and complete all processes with private persons or public organizations of any nationality as are necessary or convenient under applicable law to execute, register, or disclose these resolutions or their effects.

21:16 In respect of resolution 20, the proxy votes have been cast as follows. Four, ninety four point six million against 62,000, withheld 1,713, effectively 99.9% vote four. And now proposed resolution number 20 as a special resolution. To be effective, it must be approved by at least 75% of the votes cast at the meeting. Those in favor, please. Thank you. Those against. Not seeing any. I declare resolution carried. Thank you very much. That completes the formal part of the Annual General Meeting, and I declare the meeting is closed. Thank you all very much for attending. We would like to invite no, sorry. Before we do that, we will then the meeting is now closed as the formal part. I'm gonna hand over to the CEO of Bethel Avadeda to do a presentation on the company.

22:14 Very much.

22:25 Would try to be brief. I'll take the next chairman. I'll try to be brief and leave some time for questions. Otherwise, we will start. We will start first with the results, the review of the results of last year and I have here also close to the results of the previous year. We produced around same amount of copper than last year, only around 600 tons less by processing more ore in the mill at lower grade. And despite the lower production and the lower grade, we were able to get cash costs of around $280 per per pound and around $3.1 per pound all in sustaining costs, which are around 20¢ lower than the previous year. There's the reason for that is mainly the reduction of operating costs.

23:25 Most of them related to electricity and everything related to the energy prices during last year. So it was a quite successful year because we had a bit of EUR 73,000,000, which is around EUR 20,000,000 more than previous year and profits of EUR 36,000,000, which is basically 20% higher than the previous year. Operating cash flow of EUR 65,000,000 was also higher, around EUR 30,000,000 higher than previous year. And free cash flow went from being negative in during the 2022 to being positive for around EUR 50,000,000 in 2023. And this allow us to maintain our net cash position in around €5,000,000 like previous year.

24:18 Without that,

24:20 it's part of having invested in exploration into the solar plant and other investments. I would say from the economic point of view, a quite it was quite quite a good year. From the corporate point of view, we decided to we announced that we will be moving to main market, and we we talked about that a little bit. We also announced that we would be moving out from Cyprus to Spain in order to benefit from all the things that we can can discuss. And also, we we paid a dividend and we announced a lower dividend, which basically is $09 per pound per share, excuse me, which is also substantially higher to the 7,500,000 7.5¢ per pound that we had last year. So again, from this point of view, we deliver on our promises.

25:13 And from the assets point of view also previous year, we have said we were going to start Helix and then we'll report a little bit on that, but we were able to start producing some urine test work. In spite of the delays, we were able to do some copper cathodes and some zinc precipitants produced from the treatment of of copper concentrates. But also quite important is that we have already started stripping the San Benicio for future. And I should remind that last year, we said that we had just published the 40 three-one hundred one related to those resources and we were just going to start up orbiting. And actually, one year later, we are already mining the first phase of that pit. We also last year, we also announced that we were going to start a solar plant and this year is basically all finished.

26:08 And also we said we were going to continue with the permitting process in total, which we did and also this has resulted in further being declared of strategic interest by the Shunta del Hamifa. We have continued working also with the ESG and health and safety, publishing our second third system amenity report and also providing targets for reduction of emissions at Scope 1 near Scope And we continue with activities of the restoration of the rivers, clean waters around Toto and the construction of the solar plant in Albrechtilde.

26:54 Some changes to the Board meeting of Rexel is a former senior independent director and also is now from now going to be a chairman of the of the company. So all these details are there. Going a little bit in front to be very brief. I think an important achievement this year was getting to the main main bar. The mission in April was the end of a long journey that we had planned a couple of years ago and it was responding to the desire of lots of investors that wanted the transparency and the benefits of being in big market.

27:42 With this transition will also mean that we will be able to after the re investigation in Cyprus, to move our headquarters, an official headquarters from Cyprus to Spain. It's logic because all our assets are in Spain. And that will mean that we will be able to be subject to the inclusion of the index in the FLSI, which will provide, again, a new source of liquidity to our shareholders, which is something that we always require and it was planned all the time. With this, it also brings some changes in the rules. And I would like to say that the main thing is is that due to our chairman here, Royal David, president in that ceremony, been over ten years in the company due to the rules of the main market.

28:37 He's not ever no longer considered independent, although I have to say to the public that I have not seen people as independent as as a lawyer. And I now want to thank you thank him in public for his contribution during this very long and stressful journey, although sometimes it's been very painful to be here. But Royer will remain at the board and we feel as an executive director, and it will be substituted by Neil Rexon, which has been also with the company for quite a long time and knows very well the company. I'm sure it would be as good as Royer. Also, changes in the board. Kate had been senior made senior independent director, and welcome Carol to to our company. She's always our firm, and this company has never unfulfilled the promises. So we do continue having a lot of things to to talk about the progress of this company.

29:39 The main thing to that we we will be welcoming this year is the final final, you know, awarded strategic established project, project of strategic interest according to the laws of Galifa. This is a law that was passed in the beginning of this year, which is designed to expedite and streamline the permitting of industrial polysilicon. It is the first time mining permit is included in in this this type of initiatives. Fulfill the conditions, we have been working with the authorities and with all the stakeholders with more than 300,000,000 having held being held in the community in the project to to listen to the concerns and to give solutions to to the concerns that something having a negative impact declaration four years ago.

30:35 We believe that with this declaration, the permitting of the project of Toro is going to be much lower, much shorter. Maximum by law is going to be one year. We think it's going to be shorter than that and we look forward to getting this project, which will be part of our future. Last year, we also mentioned that we have filed the technical report for San Luis Obispo. San Luis Obispo has high grade, almost double the grade that we are mining in Cerro Colorado, which you can see in the picture. And and one year later, we're already mining, still have to receive the full permits for the full pit.

31:24 As you can see, the existing operation is already substantial and this would allow us to produce higher grade copper in this year, in this year '24, and substantially higher production in years to come. The lower part of the project contains some sulfides of copper mixed with with zinc, which will require the addition of a flotation or new flotation installation or the treatment of the polymetallic sulfides. Also last year, we said that as part of our strategy to treat those sulfides, we were being looking at something that we have been providing assistance, financial assistance and technical assistance to system called Elix, which has been developed on our site.

32:12 We showed last year's picture similar to this where you could see in the center of the picture, the plant of helix. At that time, it was only a cage, something empty with a few installations. And I believe that the last presentation showed some sub rotation cells. This system should provide us with better recoveries in the complex metallurgies with around 20 points higher, which although still needs full commissioning, we believe it will we can add out of value to the company specifically in the polymetallic sulfides in the pilot belt. So last year, we're only showing a gauge. And this year, we can show a bit more than that, although the secrecy that this construction has been taken doesn't allow us to to show all the installations.

33:03 But you can see the right side picture that installations is something quite complex for pipes, which has allowed us to produce already the first copper capitals during the commissioning in the last days of previous year simply when we were testing the production and the for winning cells and also all these copper sheets came from the copper concentrates. This system can all review can all also extract the zinc from copper concentrates and also a plant right now that's been commissioned has been extracting zinc concentrates zinc metal precipitates from copper concentrates, zinc shown on the left.

33:49 And on the right, you can see the copper clean concentrates. So in other words, inside the plant, you you introduce a mix blended copper zinc concentrate, and you can extract a zinc precipitate that you can leach and produce metal directly. And and you are left with a copper concentrate without zinc and without the penalties that you can also leach and use metal directly or sell it as it is a better concentrate. I can announce now that although we have had delays and these things always take time because they are quite new, We are in the commissioning phase already in a continuous or semi continuous operation and we should see the economic results of this operation in the second part of twenty twenty four.

34:37 For this, the main reagent was electricity. 80% of the costs of this plant was electricity. Last year, as I said, we had higher production costs and we're only showing some boxes of cells that had a right to site and were ready to be assembled and it's going to be in production of by mid this year. Unfortunately, we have had some some delays with the supplier, but as you can see, the the plant is is basically finished and it will be commissioned at the end of the year. Actually, in a in that view of installation, in this picture, you can see there in the far left all that old dump covered with panels, which not only restores a low dump, but also gives gives us future cheaper electricity, which will be fundamental not only to for the operating cost of the flotation plant, but also for Enel X. This plant should provide 22% of our electricity needs with around a bit more than 35% also being hedged already at a low copper price for a low electricity price, which means we will be able to to get cheap electricity for for for the future in our company.

35:59 And and finally, what are our targets for this year? Well, we have seen a difficult market. We have achieved that already. We are progressing to move to Cyprus. The solution, as we have heard before of moving up to Cyprus has been approved unanimously. And we believe we will be ready to to have this thing approved by fourth quarter of this year. Alex will continue to ramp up and commissioning the second part. We also expect the start of the solar plant finally. We will continue some initial stripping and providing higher rates. We also finalized in the permit of the main pit, which we don't have any doubt. It's going to be obtained because we have already obtained the most difficult part, which is the tailings expansion and the footprint of the project itself.

36:55 Our total now that we have received the strategic environment, strategic initiative of positive status, it means that the project will go into public information the summer, late July, early August, which means they will go through almost maybe September, the paperwork in the Schumtech can be made, the reports in the last part of the year and we could have the approval of this project because we believe we will fill up some forward additions on the end of this year or by first quarter of twenty twenty five and never more than one year. Following that in fifteen months to eighteen months, we will have that probably up and running, exactly in the point where we believe the copper prices are going to be quite high and higher, substantially higher than now. This is a very clean concentrate, very straightforward product.

37:53 I won't say it's a cut and paste of what we have done in Rio Tinto. But certainly, I used to say that when we built Rio Tinto, we built it without money. In this case, where we have now a good balance sheet and we have money in the bank and we have a team with experience, it must be a piece of cake. Having said that, we continue also to focus and find more things in the district of around Rio Tinto, we have several rigs going on. And we also continue to look even abroad in Europe, in South America, Iberian Peninsula for new discoveries to expand the the life of this company. And remember, when we first started EXACT ten years ago, the first EGM of this new era was in 2014.

38:43 We have ahead of us twelve years of life. We have gone now ten years and we still have fifteen ahead of us assuming we will find anything. So I think the future of this company is excellent. So this concludes my presentation. I wanted to make it brief and we have a few questions coming online, which I'm happy to read and respond. I don't think people can see them, but I can see them on my screen. So the first question comes, what are the key milestones and timelines for total project? And what challenges or opportunities do you foresee in the development of this project? Well, I've said about the key milestones. I think we will see the project going to public information in the summer.

39:32 We'll see responses of litigations and complaints of those opposing by the third quarter, and we will be able to have all our third quarter ready by the end of the year. After that is the Shultra Egalycia, which has shown support to this project to reply and give us the statute for the final permits, which will include, by the way, the urbanistic permit, the construction permit, the water permits. So all the permits associated will be obtained in one go, which we expect it to be. Challenges, of course, will always be some challenges in the construction, you never know. Opportunities, I think the opportunity there is to make further discoveries to be to be able to produce some byproducts using ELIX.

40:19 And and I think that project, I'm sure it will we will see the same thing that happened in Rio Tinto where we would extend my life and I see that project going for at least twenty years while easing with the resources we have from the ground. Second question comes since cash costs have decreased significantly, can you elaborate the main factors that contributed to these reductions and how sustainable this cost numbers in the long term? Well, I think they are fully sustainable. Actually, the cost today up to June are similar or lower than previous year. The main reduction of these costs are due to the due to the lower electricity costs, and this it seemed as something that's here to to stay.

41:10 Actually, the the the cost would would even be going to be reduced much more when we start inputting higher grades from San Iglesia because obviously the costs that we have are mainly per ton of material introduced to the plant and we have high grade we use more, the cost go down. The third question comes like following the agreement domiciliation in Spain, what changes are expected to company operational, regulatory or tax framework? Well, I don't think there will be many changes. The regulation and tax are similar to what we are enjoying right now. We are not having specific benefits, tax implications from being in the Basel in Cyprus because this tax authorities in Spain tax you from your you have your main activity.

42:08 And I think this is not going to change too much. I think the important thing that will happen is that it will be subject to being included in the index in the main market, which means we'll provide a higher liquidity for our shareholders. Of course, also being in Spain, we have seen a huge support from the Junta Andalusia because it's quite an initial that the company traded in a market like London has a soft domicile social domicile in Andalusia and not even in Madrid. And this has been very welcome. And actually, I can I can report that we have a full support of the authorities to a level that you cannot imagine? I mean, we achieved basically meetings and results with full collaboration with the authorities.

43:02 The last question comes, is LX total recovery 70% for float and 80% for LX56? No. Actually, for flotation, it will be around 70% to 75% and LX will have around 95% recovery. So the global recovery will be over 5%. So basically, the recovery from LX is is full. Still, I sorry. I see we have a new one. Are the projects in development progressing as expected? I suppose being exploration. Well, exploration is is never as good as we expect and we always expect more to make the next discovery.

43:48 But let's say that the report the progress is enough to justify the port to approve a good budget in the continuation of the budget and to have several rigs going in drilling extensions, mainly in Maceo Del Rey, but also in some grassroots. So let's say that it's very early to say the results, but they are good enough to say that we continue with very good expectations. And also, by the way, we are also going to start exploring in total, which also mean that probably we'll be able to expand our source in the future. So that concludes the presentation and the questions. And any questions from the table? Thank you, presentation. I want to ask about Massive Valverde, the high grade and the proximity to react in terms the economics for it, It's actually very, very strong and strong within.

44:44 Is that a fair assessment? Am missing something? It sorry. And if it is a fair assessment, is there a reason why management wouldn't try and fast track a a head of of? Well, I think things are totally separate because they are in different districts. But if something in this company is that we move very fast, and we only got the permits of Basel IV last year, We have already been drilling the technical drill holes to start construction of the ramp. I expect to take to the board at the end of this year the award of the construction of the ramp. So yes, we are going to develop that project in Palo Alto.

45:30 Actually, it doesn't mean they are totally different, obviously, in the North Part of Spain, while Palo Alto will still require a construction of around two years in order to get the parts of the deposit. The deposit of Mass Auverde is a large sulfide deposit, which contains some lowest rates overall, but then within it, it contains some good grades of copper and some new grades of zinc. Initially, the ramp will be pointing and going towards the area with copper, where we can just throw in the copper extracted by a contractor, throw it in our plan with very limited investment. But yes, we are developing that. We are working on it, and we only got the permits last year, we are already working to start actually this year. So we moved quite fast.

46:20 And we are drilling there as we speak. Yeah. Look, we CapEx, we have given some guidance for this year, in rock curves, looking a little bit beyond this year, we have the main consumption of CapEx, obviously, which is not included in this year is the total growth. If we see that we could get the project further than, let's say, at the end of this year, which is most of the district case, the investment will be around EUR $250,000,000 in two steps.

47:07 The first step will be slightly less than EUR 200,000,000 and the next expansion, small expansion, there's no change in two point five years later. We will be seeing around EUR $250,000,000 in the next three years, starting next year. But with the first one, around EUR 200,000,000 will be done in eighteen months. And that's a big investment. In the case of investments in our production site like Rio Tinto, we have this thing of Massaro Verde, which would be along along two years because there's a certain speed, you cannot move faster than that. And let's say, the ramp roughly, it's around 20,000,000, so you expect another 10,000,000 each year because that's you don't speed up much and this doesn't require doesn't require any plant or so.

48:04 Besides that, we will continue having the normal exploration of roughly around 10,000,000 per year. And depends on the results of the LX, we make or shut a facility for restructuring of zinc, which has to be constructed in the next three years, so I cannot tell you exactly when it's going to be. In the PA, it was around $75,000,000 That's still work of course and we are looking at all the sites. So that's roughly what we what we will have in the next three years. Unless we have a huge discovery and we can adapt to the plans yet. Any other questions? Good. Thank you.

48:51 Well, before I close the meeting, I think it would be remiss of me not to say just a few words. This is my last my tenth and last appearance as chairman of ATALAYA. I have to say I'm very proud to have spent ten years as chairman of ATALAYA. I've been very privileged to support Alberta and play perhaps a very minor role in the attainments of the company over all of those years. When Alberto joined the company or tricked him into coming into the company, had, in fact, no concession, no permits, no funding, no money, and he still joined the company. And over the ten years, ably supported by Sessa, I have to say, sitting opposite in here, we turned it into a company which had a 4,000,000 throughput, plant throughput producing copper, which was raised to 9,000,000 tons a year throughput up to a 15,000,000 tons a year throughput, which is now looking at 16,000,000 above nameplate capacity, producing 50 odd thousand tons of copper a year. I mean, it's some attainment from a period of no permits, no funding, not even a concession. And I'm very privileged and proud to have been part of a small part of that, a very small part of that, supporting Alberta from a long way behind it.

50:19 I'm being I'm handing over to Neil, the the safe and and capable hands of Neil Gregson from now on, so he'll be here for here taking over the meetings. I'll be at the other end of the table supporting and possibly asking questions, but always supporting the company after all this time with them. And I'd just like to thank everybody for a wonderful ten years, not only the board, but the advisers who we've known now for so long, the advisers and good friends of the company who have kept us going for so long and supported us. I think it's time for me to go because I don't know anybody knows. I forgot to read the chairman statement at the beginning. But everything in fact in there was included in the CEO's report, so it would have been a repetition if I had read it out. But if I would just finish that, the chairman statement off, and I'll read it because the last statement said, I'd like to take this opportunity to express my appreciation for the continued dedication and commitment of the management and staff of ATALAYA.

51:24 At the same time, I would like to thank all board members for their support, guidance, and continued engagement with all aspects of the company's activity, and to also, of course, big thanks to our valued shareholders for their continued and appreciated support. So essentially, that's me bowing out and saying thank you very much for everybody. Thank you. And we'd like to invite you all to stay on and join us, of course, for refreshments, I hope. Have we got refreshments before we offer? And and discuss on a more informal basis with the particularly, Greg. So at your will. That's great. To the board of ATALAYA MINING, thank you very much indeed for your time this morning. If I could please ask investors not to close this session as we'll now redirect you for the opportunity to provide your feedback in order that the company can better understand your views and expectations.

52:16 So I take a few moments to complete. I'm sure you'll be greatly valued by the company. On behalf of the board of ATALAYA MINING PLC, we'd like to thank you for attending today's annual general meeting, and good morning to you.