Atalaya Mining Copper Sa · LSE:ATYM
Atalaya Mining Copper Sa — Atalaya Mining — Shareholder Meeting (June 2019)
23 slides from Atalaya Mining Copper Sa's shareholder meeting presentation, Jun 27, 2019
Slide 1: A low risk copper producer in Europe
A low risk copper producer in Europe AGM Presentation 27 June 2019
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) has been prepared by Atalaya Mining Plc (the “Company”). While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers
Slide 3: Proyecto Riotinto
Proyecto Riotinto Strong track record of delivering ahead of time and below budget – 5Mtpa to 15Mtpa in four years 1. Restart 5.0Mtpa Incremental throughput: +5.0Mtpa Nameplate copper production: 25ktpa Incremental capex: US$82m Cumulative capex intensity: US$3,280/t Cu Unit processing cost: ~€5.01/
Slide 4: Q1 2019 Production Results
Q1 2019 Production Results Ore throughput (Mtpa) Q1 2019 Cu production: 10,219 tonnes 3 12 (Q1 2018: 9,441t; Q4 2018: 11,172t) Annualised (Mt) Quarterly (Mt) 2 8 Consistent throughput and improving 1 4 recovery rates -- -- Copper head grade – 0.46% (Q1 2018: Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 5: Q1 2019 Financial Results
Q1 2019 Financial Results Income Revenues (€m) Revenues: €51.7m (2018: €52.7m) €53.4 €52.7 €51.7 Group profit: €14.2m (2018: €8.8m) €45.7 €48.9 €42.8 €45.1 €35.7 EPS (€ cents): 10.3 (2018: 6.5) €25.7 Operating Costs Cash costs/lb US$1.89 (2018: US$2.27) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 AISC/
Slide 6: Operating Margins & 2019 Guidance
Operating Margins & 2019 Guidance All-in Sustaining Average Market Company realised Costs per lb Cu price per lb Cu Price per lb FY 2018 $2.26 $2.93 $2.95 Q1 2019 $2.18 $2.81 $2.80 Robust operational outlook continues for 2019 Guidance 2018 Actual 2018 Guidance 2019(1)(2) Contained Cu 39-41kt 42.1kt
Slide 7: 15M Expansion Plan
15M Expansion Plan 15Mtpa expansion nearing completion New primary crusher AIM:ATYM / TSX:AYM 7 SAG Mill construction
Slide 8: 15M Expansion Plan
15M Expansion Plan Mechanical completion scheduled for end Q2 2019 New primary crusher AIM:ATYM / TSX:AYM 8
Slide 9: 15M Expansion Plan
15M Expansion Plan 15Mtpa expansion nearing completion Construction of new flotation area AIM:ATYM / TSX:AYM 9
Slide 10: 15M Expansion Plan
15M Expansion Plan Mechanical completion scheduled for end Q2 2019 132kV Switch Yard SAG pebble crushing and conveyors AIM:ATYM / TSX:AYM 10
Slide 11: Reserves and Resources
Reserves and Resources • Update in July 2018 reported 29% increase in P&P reserves, 21% increase in contained Cu to 822,000t and reduction in strip ratio from 1.95:1 to 1.43:1 • Pit design and internal cut-off grade based on long term Cu price of US$2.60/lb • Resources are pit-constrained at US$3.20
Slide 12: Exploration at Proyecto Riotinto
Exploration at Proyecto Riotinto Additional underground potential with copper/zinc/lead in adjacent orebodies At Atalaya/San Dionisio pit, massive sulphides and stockwork mineralisation are being targeted – 2,900 m of a 19,000 m programme drilled to date with positive preliminary results Drillin
Slide 13: Proyecto Touro
Proyecto Touro Low risk, advanced stage project in north-west Spain TOURO Previously operated by Riotinto Patiño from 1973 to 1986 Well understood orebody with straightforward metallurgy RIOTINTO Excellent infrastructure and location Access to power, water and highways Local skilled workfo
Slide 14: Proyecto Touro
Proyecto Touro Development timeline Development: 18 to 24 months from receipt of permits Ramp-up: 9 months Synergies with Proyecto Riotinto CAPEX: development plan to replicate Proyecto Riotinto success OPEX: by sharing services and support Marketing: clean premium concentrates PFS e
Slide 15: Proyecto Touro: Results of pre-feasibility study
Proyecto Touro Results of pre-feasibility study Over 40km of exploration and in-fill drilling completed to provide basis of NI 43-101 PFS Strong project economics Project parameters Project NPV: $180m at 8% discount rate using long-term Cu price of $3.00/lb Contained copper: 392,000 tonnes
Slide 16: Proyecto Touro: Resource and Reserve Statements
Proyecto Touro Resource and Reserve Statements Resource Summary-Constrained by the $3.20/lb Cu Pit Resource >= 8.14 NSR $/t (Internal Cutoff) >= 9.71 NSR $/t (Breakeven Cutoff) Class kt NSR $/t Cu% RCu% kt NSR $/t Cu% RCu% Measured 69,258 22.55 0.42 0.37 67,886 22.82 0.42 0.37 Indicated 60,592 19.24
Slide 17: Proyecto Touro: Process engineering under way
Proyecto Touro Process engineering under way Parallels with Riotinto expansion project Management confident with Capex projections and projected timeline Metallurgical test works completed Well-known metallurgy with excellent recoveries and clean high grade concentrates Riotinto actual Touro
Slide 18: Proyecto Touro: Exploration
Proyecto Touro Exploration Previous mining combined with more recent exploration work gives us a good understanding of the deposit Mineralisation remains open to the north, west and south Dates Company DD RC DD/RC DD m RC m 2017-2018 ATYM 4 104 17 636 13,254 2016-2017 ATYM 1 93 26 1,443 10,838 2
Slide 19: Additional exploration ground signed in 2017
Proyecto Touro Additional exploration ground signed in 2017 Option to acquire 100% of the adjacent exploration concessions covering 122.7km² giving full control over the known prospective belt Financial terms similar to existing Touro deal (mining concession) Option over 2.5 years with 75% pay
Slide 20: Atalaya Positioning vs. Copper Peers
Atalaya Positioning vs. Copper Peers Attractive valuation metrics(1) Enterprise Value (US$m) EV / 2019e CuEq prod’n (US$/t)(2) EV / 2019e EBITDA(3) Net debt / Enterprise Value (4) (4) Atalaya $393 Atalaya $8,310 Atalaya 5.0x Atalaya 8% Ero Copper $1,652 Imperial Metals $3,217 Imperial Metals 2.1x Im
Slide 21: Future Positioning
Future Positioning Low-risk growth pipeline and competitive costs 2019E copper production (kt) 318 178 125 123 74 – 79 68 68 50 – 55 45 – 47 43 37 28 21 13 (2) (2) KAZ Minerals Lundin Hudbay OZ Minerals Atalaya Sandfire Capstone Atalaya Atalaya Taseko Ero Copper Copper Mtn. Imperial CAML 15 Mtpa + 1
Slide 22: Investment Case
Investment Case Strong financial position Nil financial debt(1) Working capital position improved as a result of cash generated from operations and equity placement Proven management team with strong track record of consistent delivery Production guidance ahead of expectations Well under
Slide 23: Contact Information
Contact Information: Investor Relations CEO Carina Corbett Alberto Lavandeira 4C Communications Ltd Telephone: +34 959 59 28 50 Telephone: +44 20 3170 7973 Email: [email protected] Email: [email protected] AIM:ATYM / TSX:AYM