Atalaya Mining Copper (LSE:ATYM) — 2024 Annual Results

0:03 Good morning, and welcome to the ATALAYA Mining PLC twenty twenty four Annual Results Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and they can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Simply type in your questions and present. Company may not be in a position to answer every question received during the meeting itself. However, company can review all questions submitted today and publish responses, which is appropriate to do so. Before we begin, I would like to submit the following poll.

0:33 And I would now like to hand you over to CEO, Alberto Lavendera. Good morning to you. Good morning. Thank you very much. Good morning, everybody, ladies and gentlemen. Thanks for being here with our review presentation of the annual results of 2024 as well as some details in the last quarter of twenty twenty four, especially the financial side because the operational side has already been pre released. I will be following the presentation, which will be available in our webpage, if I may. So let me see if I can go with this presentation. With me, I have Cesar Sanchez, the CFO of the company.

1:21 If there is any detailed question at the end of the presentation in relation to financials or any other detailed details and numbers, he would be very happy to reply. I'm not going to read slide six, which talks about all the details that we are going to be looking a little bit later. So I will I will just say that, in general, in this presentation, we'll be looking at operational numbers, the financial results, some corporate activities that we have, some things going on during the year, how are some of our assets doing, and of course, some a few a few words in sustainability. Let me start with the the corporate initiatives, and the highlights of 02/2024.

2:10 '24, of course, was a kind of, disappointing year as we said before from with some lower rates in in in general, although we had a good finish of the year in the last quarter. But although we had some it was the first time we had in the last ten years a reduction of our guidance, a review of our guidance. I think it was quite a good year. In April, we moved to the main market, the main market in in London. And we also this January, this a couple of months ago, we moved finally all our investigation from Cyprus to Spain. These things are are quite important together because these these two changes allow us to become eligible for the FTSE index, FTSE Russell index.

3:01 And in early March, actually, the the review of the index announced that ATALAYA would be part of the all share index. And we were very close, very close to be included in the 40 to 50. For some reasons, we were not included at the very end, but we are there. We I'm sure we'll get back. Of course, these things, index inclusion is important because we believe that they they will increase the company visibility to large investors and of course, increase will help in the trade and liquidity. At our operations, things also went very well. As you can see in the slide, you can see the solar plant basically built. It took some time, some delays. But finally, we are very proud to see that this is one of the largest, the if not the largest, self consumption, solar plant for industrial activity in Spain and also one of the large ones of the world. It basically provides all our power during sunny hours.

4:04 And not only will we use the the TALLAYA footprint, and will provide us a stable source of power for Rio Tinto operations, but it will also produce around 22% of our energy needs at our plant once it's fully operational later in the year. Right now, we have, like, 80% running. But as I always said, one of the big value drivers of the company's total new project that they've been developed in in in the North part of Spain, copper project. And in June 24, we were awarded the strategic status for this project by the regional government. This thing streamlines the permitting process. It gives basically gives the the regional government one year to to produce all the all the the reports and permits, which will be due in June.

4:57 And, of course, it can still be some delays if they ask for additional time in some of the departments. But we basically are extremely optimistic. We are quite optimistic that the all the total prospects of approval. And we expect certainly, we expect environmental decision sometime in in this year. Of course, last but not least, I mean, there's lots of things going on in our operations. There's a few few of them are are shown in the slide seven. And, of course, permitting of San Denisio, the pit that's close to our our our federal operation is should be obtained. It's very advanced and should be obtained certainly this year, but really will be obtained probably in the next weeks or months, because we have already received some some preliminary indications of that.

5:49 At Massawa Verdes, as a satellite deposit around 25 kilometers away, we are about to start the construction of a ramp, accessing the high grade copper zone, and we are just waiting to finalize the acquisition of some surface rights to to to install the the portal, the the box cut. We also will see the ramp up of LX after lots of of of issues start up being a new technology at our installation. And then in addition to that, we have been doing a lot of exploration in our ground, specifically in Mar Mesa Verde area and also in Sweden. And we will be updating the market in new course when especially when we finalize the winter drilling campaign in Sweden, which as you probably most of you know, they can only drill in the North sorry.

6:43 In the Far North, you can only drill during the winter season because in summer, the the ground becomes very muddy and it's a little bit difficult to and not operational. You can still do it, but start operational. So that's, I would say, the highlights of what happened in '24. Before I continue with the operations, let me give you a few few words to sustainability. There's lots of things that we we have done, and we will be publishing those in the in the new report, sustainability report for '24 in the in the next few weeks. Actually has already been approved and then it's the final print in the glossy. The glossy version has been printed and once it's done, we'll be publishing this. We saw some nice improvements in this thing. The first of all, the the accidents, the the lost time accidents were reduced.

7:35 We publish everything. Every every small accident, even if it's just a twist on the ankle or a feet or a small thing, And it's it's quite low lower than the industry, and I think we are very proud of that safety of our employees is is really the most important thing in our operation. But we also continue trying to get make progress in water, in electricity consumption rates, both have been reduced from previous years, and we will continue doing so. It's always it's good for sustainability, but it's also good from the operating point of view. And we continue to be good neighbors. I think one of the good things that we have at Rio Tinto, and I think we are very proud of, is that we have had, basically almost eleven years in our operation without the minimum problem being not only accepted, but a very welcome partner, a very welcome stakeholder without any strike, without any issues with the local communities.

8:37 And we have a foundation that makes significant investments in lots of social activities, cultural activities in the areas around Rio Tinto, around €1,000,000 that go directly to to all kinds of of things that are are really not related to the mine, and people welcome it. And, of course, we continue purchasing everything from Spanish suppliers, highlighting that we can make a contribution to the local economy. I think these those things are very important, especially we want to continue there for lots of years. Now let's go to the production results in the last quarter and also in the whole year. Well, we had already published the production results, which were 12,078 tons of copper, slightly similar, slightly lower than previous year, but certainly an improvement versus previous quarters. And finally, we got better grades, substantially higher rates than the rest of the year and also substantially higher rate than the than the previous quarter.

9:45 Tons on the plant, the throughput didn't go as well as expected, although we had a kind of record year overall. But we had some con issues with the we had to stop the plant for a while to connect a couple of times the the solar plant, and that we would have produced slightly slightly higher, but no big deal. We had recoveries. We had recoveries that were lower than than average and lower than expected in copper concentrate grades. But this is really due to the nature of the ore where we were blend blending some of the surface material very close to San Ignacio, where we have an interim permit to start a small pit. And you have to adjust reagents. Right now, the only thing I can report is as a whole, we ended well. And what we have seen in the first quarter of twenty five, two months and a half so far indicates that we are improving these figures by substantial margin, and we will be well within our guidance so far at least with what we can see.

10:53 From those operational results, we can get the financial results. The financial results, the revenue was slightly lower than the previous year, basically due to to lower production. And and the operating cost, it's important that that were also lower. Lower because the the cost per ton are low are very similar to previous years, so we were able to maintain maintain the the the cost per ton. But, of course, when you produce a little bit less, your your your EBITDA is slightly lower. And the profits are better than previous year, but that's due to an impairment impairment reversal in total of around seven million euros. Without that, it would have been similar to the previous quarter.

11:42 This reversal of total is simply because our auditors believe that after the the probably being declared of strategic interest, Those those costs that had been written down at certain time for development prior to to to 2,020 decision are we are optimistic enough that we believe that those things can be capitalized, so we return them back. So they give slightly higher profits. Investments similar to previous year and And even with this lower production numbers, we ended with a very strong balance sheet, including EUR 35,000,000 in net cash, which is and without debt, which is significant, very good position.

12:37 As a general review of the whole year, very similar to what I just mentioned for the whole quarter. The revenues were slightly lower due due to the due to the lower sales, but good cost control the good cost control that we have, you can see that actually our operating costs were lower even in the fact even with the fact that we treated more tons, so our cost per unit per ton has been lower. We have made a big effort to even fight inflation. The EBITDA decrease is much more modest than the revenue decrease. As a result of that, we had operating cash flow of 53,000,000, which helped us still invest 66,000,000 across our business, which includes the solar plant, the helix, the exploration in Sweden and Valverde.

13:34 So and maintaining a very good a very good balance sheet.

13:41 Looking at the breakdown of our costs, we as you know, we provide always good guidance and very detailed guidance of how we we do. And you can see that the the all in costs and and well, the site operating costs were were slightly higher than previous years. But this is due, as I said before, to the lower production. So in the cost per unit, they were were similar. But when you consider that we had also always some, let's call it, a wood luck or a little bit better behavior on the on the some other things, for example, the byproduct rates. When we were treating low grade, low grade copper at the pit, we saw since about two years ago, year and a half ago, that we had an area with high silver content where we could blend it. Without much copper, we could blend it in through the plant and produce some additional silver, which is helping with around 20¢ with our byproduct credit. So overall, our cash cost is is similar to lower than previous year, and we have been able to maintain a a quite decent cash cost even considering that we had this lower production. So these silver credits have helped out to offset.

14:59 But and in the in the we always report all in sustaining cost. We believe this is the only way to do it simply because we are capitalizing a lot of our stripping because we are moving more material to open the pit and to avoid any any future problems. And with that, our all in costs were around $3.26 for the year, slightly higher than previous years, but still quite good considering the lower production production of the year. So with that, how do we look? We always like to compare ourselves with with try to be competitive, try to be constant. And here, we have we are showing some of benchmark with compare other peers.

15:49 We believe that our all in sustaining costs, which is the right measure to measure your operation, are are competitive and are within the the industry guidance considering our our position. And we have been fighting inflation. And in the long run, we expect that this the evolution of this all in cost is going to be positive and going lower. Why? Because we are going to be producing higher grade, which reduces so more production reduces your all in costs. We are also seeing in the future a good evolution of the treatment charges, which is expected to be quite lower this year in '25 onwards due to the lack of concentrates in the world. And and also, we we we expect to see also reduction of energy prices.

16:38 So with that, how do we see the year? We have been giving some guidance, which we believe is conservative, but we prefer to be conservative and and say, look. This is what we believe we are going to be achieving. Around 50,000 tons of copper in the year. So far, the indication this first quarter, this the year has started quite well, so it's this is encouraging. The cash cost expect to have them a little bit lower than '24. And the all in costs, we will have a slightly similar to '24 simply because we are going to be having around 20¢ of of capitalized shipping at Federal Corrado. We need to do that we need to do that because because we want to open the pit to make sure we have several lots of fronts available for for blending and be able to have a constant feed at the plant, which is good for recoveries, good for grades, and we'll be able to blend with the material coming from San Dimitrios, which is slightly slightly more complex, although higher rate. We will be doing investments in Sandinicio, which will include a big a big a big pushback of the, basically, the hill. I will show you a picture a little bit later, which also includes moving of a road, and I'll also tell you how things is this is progressing very well. We also start our the ramp access ramp to Massawa Berde going towards the high grade copper zone that we

18:08 have identified there. We have to finalize some works in the solar plant to be able to make it full to have it produced at full capacity and as well as continue with the tailings expansion. So overall, it's going to be a very busy year, but but very interesting. Looking at the itself in this some of these big big investments, everybody asks us about what's the process on the issue. You can see in the picture that actually the mining is progressing well. And what we are waiting is for a final permit basically to remove the hill that you see in the left side, which is in minute.

18:54 The meantime, we are mining with an interim pit that you can see there. And this contains much higher grades. And of course, we need to make to move a lot of movement of around 30,000,000 tonnes in order to get to this to the main area. This is the big part. We are in the last part of the administration to complete all the permitting stage. We want to make sure that things are done correctly. And but we as I said, we don't expect the issues.

19:29 We will continue right now as it's not affecting us at all with the blending of our ex existing operations. As part of that, we are already advancing the the move of a road. This road basically is is is is behind the pit, so you can see it very clear at the far end, a white areas is the solar plant. The road just goes around the pit. As you can see, it's very advanced and very neat and very nice, and we would expect to be finishing this road during in this year. By the way, this road has been moved several times, so I know some people were had questions. We were able to move on a national road. You can see we are, and this is what we are doing right now. We have the permits. We will be providing updates of of how the work progresses as we go through the year. Another important thing we are going to be starting is an access ramp to MASA.

20:23 Remind you that MASA. A. A. As shown in the picture at the left, very left. And in the right hand picture, it's it's it's also shown on the right is the deeper one. It contains massive sofas, polymetallic, but in one of the areas, it contains high grade coppers. This is the area where we are defining with infill drilling from surface. And the the satellite deposits located around 25 kilometers straight line, around 30 kilometers by road. We are in the basically, the final stages of getting the the land to to install the portal with all the permits. And after that, we will very likely start to to to drive the ramp as soon as possible.

21:18 This year, we will be given updates of the final drilling in this copper zone in in in our in our plants. But this is something that's going on already as we speak. And then, of course, we will continue unlocking some some value in in Elix, which is working right now treating treatingcom copper zinc concentrates with high content of zinc. By the way, in the picture that you can see, a real picture that you see in in the slide right now, in the left side, you can see the road also that going around the around the the plant. It's from another view. An important thing is TOTO. TOTO has is is is is the big the big value driver.

22:10 The other company, the public consultation has been completed in January. There's lots of support. Of course, there's allegations against the project by the by the opposition as expected and in like, know, any democratic country, but we have also had thousands of of of supports written supports. We are quite active in that, and we believe we are believe we are going to be getting the permits this year sometime mid midyear. This this project is has some very good attributes compared to.

22:57 And I think it's important to mention, how does it compare. It has a production of around 30,000 compared to around 50,000 of Rio Tinto. The CapEx is going to be around 250,000,000. So we are going we are talking about a capital intensive around $10,000 per ton. This is very low compared to what's around the world. And and there are reasons for that. The reasons is is that the the project is located in a in a place with, with very good infrastructure, four lane motorway running just four kilometers north, three ports, people, train people, house heavy industry in the region.

23:46 Some of the equipment that we manufactured for the Rio Tinto project was built in in this part of the area. And so that drives the capital intensity quite to a quite good and competitive number compared to other projects in the world. And besides that, it has a low strip ratio, slightly lower than Rio Tinto. It has a a better copper grade, better recovery, better concentrate grade, which results in in higher probability with no penalties at all. So the concentrate is going to be a premium concentrate with with a good demand from traders and smelters. And it's a softer slightly softer. It's not a soft material, but it's slightly softer than Rio Tinto, means which it will consume less balls, less energy and excess process.

24:32 And also, the haulage distance is quite low. We are not guiding yet the all in sustaining cost, but I can advance you that's well below the one the the all in sustaining cost of Rio Tinto, probably in the order of of around $1 per pound. So it's really it's really quite quite quite good. So where are we going to focus in in this year? Well, lots of work ahead, continuous stripping in San Unisio, get the final permits, basically, to get them out of the way, not because they are much of a problem. Start or develop to the ramp of Total, obtain the final permits at Total, finalize the commissioning ramp up of Elix, finalize the full full capacity of the solar plant, although it's not so relevant anyway anymore.

25:33 And let's see if we can make some new discoveries in either in Sweden or in Spain. So we have lots of things going on. But, of course, the big conclusion is that this company is is a growth company. At the end, we are going we're talking about having around 52,000 50,000 tons of of capacity with our existing Cerro Colorado pit. But just treating the stockwork area at Rio Tinto, where we have in San Luis, only the upper part, which is only copper, and also only copper in area of of Maceo del Verde. So these these two areas do not require any additional change in the circuit of of the of the mine. So, basically, this is just mine and dump it there. That can give additional 10,000 tons of copper without any additional CapEx or relative CapEx.

26:28 We will need a special addition of sink circuit in the future to get the polymetallic phase, which can drive us another 20 tons of copper equivalent because it has a a combined rate much, much higher. And and, of course and, of course, we will we will have the total project, which is is can give around 30,000 tons of copper, which will take us over a 100,000 tons of copper in basically three years' time, which is almost doubling our existing our existing production capacity. And this is important because in in London, there's a we are the second largest pure play listed.

27:15 Obviously, the big one is Santa Feaster, which is much larger than us. But anyone who wants to do with a higher visibility, who wants some pure exposure to copper, I think that ATALAYA would provide a very good opportunity to invest. So I think this is the conclusion and that we can end before we get into the Q and A. And I'm happy to take some questions now. Fantastic, Alberto. Thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q and A tab situated on the top right corner of your screen. Alberto, as you can see, we have received a number of questions throughout today's presentation.

28:00 And if I may now hand back to you to share the Q and A, read out the questions where appropriate to do so and I'll pick up from you at the end. Thank you. Okay, good. Let me start. I will try to reply to all the questions if we have time as usual. The first quest question is high. Some questions regarding cost. I just expect the all in sustaining cost to increase compared to '24, even do you have the PPA and solar operational, and some improved prices have decreased. Could you provide some insights on this? Additionally, what you would normalize and achieve all in sustaining cost we like in the medium term. Well, yes, it's we expect a little bit of increase of volume cost, especially due to the capitalization and the the of of the stripping.

28:51 But PPA and solar, remember, that are important but not so relevant. Basically, our our cost of of electricity, it's it's it's around not even $2 per ton of material, the cost of electricity global with around sorry, €2 per ton. Rough roughly a little bit less, but anyway, €2 per ton versus a €15 per ton total cost of mining plant in g and a. So even if you reduce a little bit your your due to the solar PPA, which is, let's say, you can get it from two to to 1.8 is not so relevant in the overall cost.

29:41 What's more relevant here is the all in sustaining costs. How do we look long term? It's a very good question. People ask ask about what happens with your continuing investment in in tailings. You can see there that every year, we have, 10¢ coming from tailings. This thing is expected to decrease in the future and future being around three years because we expect to permit a new deposit of tailings, which will require lower ongoing additions of waste every year. The reason of that is that we have more reserves and resources coming from Valverde, San Dimitio, San Antonio.

30:30 And it and also, we believe we are going to be expanding the mineable open pit reserves at Cerro Colorado with our recent drilling. So we will eventually require some additional space. So we are in very, very well advanced already with the permit being disc with the project being discussed as on to to try to get a a place permitted with with much lower capital intensity in a year than the one that we have right now. That's where I see things going. In the future, we also see more of our concentrates going to Spain and Europe due to the that will probably take transport costs of around 10¢ and and DCs due to the fact that there is a lack of concentrates in the world and specifically in Europe.

31:27 And with new smelters coming on stream in Indonesia, that will also help because they will deviate, some of these concentrates to that areas, and the conditions in Europe should should improve. So I think in the meantime, we will see those improvements. Other than that, I don't see a huge increase, or decrease in all in sustaining costs because we have what we have low grade. When we get higher production from some in a blend and we have a an average production of 60,000, 65,000 tons of copper, of course, we'll see a decrease in which more or less automatic.

32:16 Another question is, could you provide more insight into our rates and recovery rates to 25?

32:22 We have already passed the most challenging phase of quality. Yes. We have passed most of the the the challenging phases because we were basically blending the surface in this interim pit. We are, as I said before, already getting into better grades as we see in in January, February, March. We have to be careful though to blend the material. We cannot just put high grade only for several reasons. One is that we don't have enough capacity in the filters. We cannot depress too much of the sulfide. So we will be blending certain amount and we'll try to optimize obviously that. And and this is this is quite quite we expect an improvement in recoveries and rates in the next few months and in the year.

33:19 Very interesting, S. You consider recent developments in the macro low's product in Evalidia to be positive for you? For those of you that are not familiar, the regional government has approved the environment impact positive environment back declaration in a cellulose plant around 20 kilometers east from Toro in the same river shed, which has been, in theory, highly contested socially by some by the typical opposition and the the sea people and also very supported locally. So I think the fact that the regional government has approved this requiring a good investment, an investment of around €800,000,000, I think it's a very positive sign that the regional government has to is serious imposing, of course, good conditions or strong conditions for operations.

34:24 But it's serious to to take difficult decisions because this project obviously of implies a heavy a higher utilization or plantation of eucalyptus trees. There's another already a second cellulose plant in Galicia, and forestry is an important industry. And in some cases, it's a little bit contested. I think this is very positive development because we believe that our project complies. It was also a project that was considered strategic. In our project, we believe it's a it's a local point, also very well supported by local population and certainly with a much limited impact regionally. So I think it's it's quite positive, and we believe we are the second in the queue.

35:17 Another one is when do you expect San Luis San Antonio to stop production? What's estimated mine life of this and expected tons of copper from each? Well, a bit difficult to to say this, but, San Antonio contains it's an underground deposit of around depends on the cutoff around 15,000,000 tons per year. Sorry. 15,000,000 ton reserves. It's open towards the east. And this year, we are doing some infill. It's already been approved to do some infill drilling there. It will be mined underground through a ramp. The ramp will start from the existing federal pit. This thing will is not planned until at least three, four years from now, and the mine rate very likely will be around 1,000,000 tons per year of polymetallic material. This is all polymetallic material.

36:06 In the case of some of the issue, you we are already mining, as you know, and it can it's basically two zones. One, the upper part is is copper only, and the lower part, it's copper only is top work, then we have a copper only, but with some some massive sulfides embedded. And the lower part is is polymetallic, and it's part of a pit, part on the ground. The underground is also around 20,000,000 tons of polymetallic, grades of around one and a half percent copper, plus around 3% zinc and lead. That those will require the the the the mining using the underground methods. Rock is very good. And we expect the mining rate to be in the underground around one and a half million tons per year, mining from a con with a contractor, and it will not happen also until we have the sync circuit construct.

37:02 The sync circuit constructor will have to be constructed in the next three years because right now, we only have copper, so we don't need to we don't need to rush to construct the sink. What are we doing now? We are basically optimizing the grinding rates, the recoveries in order to improve what's in our PA, which is based on historic recoveries. And in historic test work, it's around 58, 60% copper recovery. So we want to see how we can improve that and also how we can improve the zinc recovery. Rare earths. Spain does have some rare deposits in the place called Matamula in Fiora Real, considered one of the most promising monocitian sites, making Spain potentially largest in Europe after Finland and Sweden.

37:53 Has was blocked in '99 to environmental concerns. Has ATALAYA explore opportunities in this region? Given your track record with permitting and previous environmental issues at MINOMO, do you think you would have an advantage? Probably would, but we have not contacted them at all simply because we have so much in our plates. And to be honest, we don't have we don't have visibility. At least I don't have to be humble visibility on how how we to treat rare earths. I remember somebody telling me that rare earths are basically gravel unless and are should be paid as gravel unless you have a recovery system to to to remove the oxides, especially the high value rare earth's heavy neodymium, prasademium oxides, which is what are used for the magnets.

38:47 So I think this project, Fiori Real, although it's very interesting by the way, I don't think it's a problem of of personally, don't think it's a problem of of environment. The place is not environmental sensitive at all. It's a pro it's a problem of local opposition, very vocal, but really no no big deal. Unless we unless there is a processing plant somewhere in Europe in order to produce this this this oxides, which otherwise most of the downstream processing has to go to China as far as far as I know. I think they control 80% of the downstream facilities. Although there is some some new things in The United States and Australia.

39:33 The next, question also related to rare earths. Sweden is has one large rare earths in located in Kiruna. Discovery announced in '23 by Lake AB. Does ATALAYA deal with mineral prospectus very bring us any closer to rare earths? I don't think so. I don't think I don't think I we we are in an area that's basically a BMS deposit with the prospects of copper and zinc. This this case of LAKB is an iron deposit of magnetite, which has is an iron with high phosphor content. In one of the satellites around Kiruna Mine, they contain a lot of of phosphates, and these phosphates are what contain the rare earths. Actually, the monocyte is a phosphate, if I if I remember well. Although, as I say, I'm not a specialist.

40:25 By the way, we have to be a bit careful with rare earths because the the market is much. I know it makes some nice headings, but the markets of rare earth is is minuscule. It's very small compared to what's surrounding copper. Another question is land ATALAYA's land use post mining, authority launches platform with 300 megawatts data center in Sarawota to billion in development of campus. Does ATALAYA management recognize as clean energy, expandable water land infrastructure that we could that could be used for data center revolution? What active steps are taken to capitalizing this opportunity? The second question, and actually, we are looking at these things. We are looking at what can we do because we have basically solar.

41:16 And we have the ability of more solar, and we are quite close to an area with good winds in the Southwest Of Spain, in Portugal's border where there's good winds, but required infrastructure to get cheap power into our position. I know that the the local the local the regional supplier is developing some electric lines to connect to that area of the wind because solar only runs during the day. What are we doing? We yes. We are looking at something not related to totally with data centers, but how can we use in the future our tailings old tailings pond?

42:03 Is it possible to install batteries? Batteries are are going battery prices are going down, and we have a team investigating that to see if there is opportunity to have abundant solar because we do have a lot of sun hours, and we can capitalize by having good storage facility, and we can get some really cheap power. It could be used for data centers, but it could be used to any other thing. But we are studying the possibility of of batteries, and we are watching the evolution. In the case of sustaining CapEx total terms, what's the ballpark number that you are expecting in 'twenty five? Do you expect the change in 'twenty six and 'twenty seven?

42:52 Well, we have given already the guidance. And as I said, it's not very different in 2627. We expect to have much less sustaining CapEx as soon as we get as at the moment we start with tailings a pond. And also, we will not have the pre stripping of some of initial. ATALAYA's land use post mining management. Is ATALAYA looking at opportunity given data center how data centers are funded? Will ATALAYA consider creating a lee new legal entity for the sole purpose of development funding digital Spain twenty five in the data center space?

43:42 Well, right now, as I said before, the only thing we are looking is how we can get cheap power. Because if we don't have cheap power and good infrastructure, data centers are not it's only one part of the use. Once we have a cheap electricity, I'm sure we we could have good opportunities for our land. In the case of total, what are the next key milestones for the project after consultation process is is completed? Right now, we are in the process of getting the responses from the from the what they call the the the each of the bodies of the administration. So sectorial projects. Sartorial sectorial bodies, water, air, land, forestry, cultures on.

44:37 And we have obtained already or we have received or know that we have been that have been processed around half of them, and that's the the the activity. In the meantime, in parallel, we we, as ATALAYA or the teams of TORO, are with their consultants answering each and all of the of the allegations that have been received, and those form a body that goes into into the final impact declaration. So, basically, it includes all the complaints or impositive or allegations positive or negative. The response summarized response from the company plus all the summary reports of all the allegation of all the bodies of the administration. So it's quite a a long process, which is basically takes a couple of months, at least two or three months.

45:29 Any update or resolution on the relation with Trafigura? Is it good relation? Do you they contribute anyway? Do they still have offtake agreements? Do you know if they want to remain long term shareholder? Well, we don't know what they want, in the long term. We've if you look at history in the past, they have been in and out because that's how the nature of the business. They have been loyal shareholders since August 2014, so it's going to be eleven years. They came in at a very good price buying a stake of of a fund, so they're well in the money. They continue to be traders. They of our concentrates, but they only take around a little bit less than 20% of our of our concentrates in in in fair terms, in market terms, and they have been quite supportive. And, actually, when we have a a spot sale that's out of the specifications of the contract, we always tender it out to all the tenders and sometimes a new one. And sometimes they have been awarded the the tenders, sometimes not.

46:37 And I only say that relations has been quite quite good, and they contribute a lot in in this sense in the in no no conflicts at all as far as I I am always very supportive. In relation to Alex, has the relation changed? Will you be negotiating a better deal with Alex considering the delays? Well, we'll see it in the right moment. Depends, obviously, right now until now, we have been given loans, and some of the cases are loans with certain conditions. In some of the loans also are have some warranties with equity. And if if some additional funds are required, we'll speak in the moment depends on the conditions.

47:24 Certainly, we have taken a lot of development risk, and I think we should be compensated in some way for taking this risk. When will it actually start to have an impact on driving down all in sustaining costs? Is there a finite time cost that you come online before shutting the project down? Look, the instructions have been very simple. We will we will not allow this to be a cash drain. So the LX will have to be self sustaining from the operating cost point of view and have a future. So far, the numbers in theory show that is the case. But if that's not the case, certainly, we're not contributing we'll not continue contributing to the pricing cost. It doesn't mean it doesn't mean the thing is not economic. It doesn't mean it cannot be economic for other third party.

48:15 It doesn't mean we cannot change the and instead of using our own concentrate, we we could use a third party concentrate. It's very difficult. So the case of Helix is still very valid, but certainly, we have a very clear instruction that after this year, we don't want this to be a cash drain for the company. Did you get a response from Fertzy Russell as how went wrong with entry to $2.50? The decrease in share price does not explain no entry nor mark. There's other group that entered. Yeah. We we did write to them, and they gave us an explanation where it was not very clear in relation that there was not only the market cap where they looked. It didn't convince us too much, but I don't think it was the right we don't didn't believe that it was right thing to start fighting with this because, eventually, we believe we are going to be getting in in the next review in three months.

49:12 And and in any case, the all index is also applies a lot of liquidity. So there's not such a huge difference between being in the in the two fifty and the in the three fifty or or all in. But, certainly, the yes. We did we did get into them, and we did get into them. And the reply was not totally satisfied, but but we leave it there. We we believe we are going to be getting there. Gold hits new highs. Does ATALAYA have any gold prospects in the portfolio? Or some Morena will use our conchel copper gold process. You are 100% right. Our conchel is a copper gold, IOCG, and we are waiting for some drilling permits and also at the same time getting this project into a a mining concession because it already has a it already has a small resource that can be mined. In addition to that, we have the one place called Guijaro area, which contains between 200,000 and half a million ounces of gold likely unpredictable, and that's one of the areas where we are exploring.

50:19 And we'll be looking at either either development and permitting ourselves or farming in that, you know, into a junior that can get an exchange of shares where we can get more added value sooner because it it is not something major in our in our in our portfolio. BHP, Anglo, Abandon, Rio, Glengor, just in talks, what do you think of these potential deals? Any any mayors approach ATALAYA? No. We have not had any mayors approaching ATALAYA, and I don't think they will. We are a small company. We have to be modest. We we are but sometimes good is beautiful. We're I don't expect the shares of Blanket to do to to be able to multiply by a 100% in in one year, which I think this thing can happen in shares of ATALAYA.

51:09 So I think this is we are we have not been approached by big companies, but, of course, we have been receiving interest. And especially some of our larger holes have been receiving interest from the different parties in our company because we are very good. We offer very good value. Somebody is asking about the potential increased capacity of the solar plant. Well, depends if we can store. If we can store electricity, we can really expand the the solar plant to 200 to a 150. What we are not able is to be able to to to to sell it to the grid in an economic terms. So they'll we can probably be able to produce 100 megawatts and store the the 50 and then use this 50 if it's economic based on on the battery. So it's a it's a matter of batteries are now starting to be potentially interesting.

52:07 In the case of we have lots of land and space, so there's not a problem of land. It's simply it has to make sense. In the case of some of issue, when do you expect to see the final permit? Will you could delay the impact of the mine maturity in '25? No. It will not affect the mine plan because we have already a a stockpile of material that we are using. And we have already received what we call the which is like a pro a preliminary version of the permit that they submit so you can correct the facts so we know this thing is imminent. It could be weeks or one month, but it's not going to affect us at all. What is the what was the start start end date in relation to the strategic declaration? The we there was a June 24 when it was when it was declared strategic.

53:03 So, basically, it's one year from that, so the end of June. But, of course, the administration could request additional time if there is some some it depends on on what the reports that are missing. If there's a no substantial report, then they will issue the the environment and by declaration anyway. But if there is something missing, the water department or something that's really very important, they can request some additional time to to issue that that thing. They have not done that in the case of the paper mill or the cellulose mill. They were able to do it. But in our case, it's 25,000 pages. It's quite complex. Of course, not everything is is water, but that's something that's yeah. I think we will get it before before that.

53:50 Why mining waste increases from 32, 24 to guided 37, 42? Does it include the ways outside Cerro Corrado? Basically, no. This is basically the capitalized stripping. We want to open the pit a little bit more to be able to access to access several fronts and make sure that we have several fronts to be able to blend. The strip rate of the pit itself doesn't change. Actually, we are working in in we are going to be working this year into act to update the reserves, and we already have some some preliminary numbers. The the overall strip rate of around two to one is not going to change at all. When do you when do you expect Massawa Berde to commence initial production? I would say around two years from the start of the ramp, which is likely going to be mid this year.

54:44 Maybe a little bit faster. Can you please provide a bit when do you expect total to start production of copper concentrate and when you expect to feed in and l account? Look. If we get the permits by midyear, we will be in in position to start putting first production in year and a half from that. So, basically, it would be the end of twenty six, start of twenty seven. The if it's delayed one, two months, or whatever, it will be sometime in '27 for sure. And the start up of of of total, we don't expect the the issues. Very similar to what we have here. Has the company received any revenues from production?

55:29 Yes. We have sold a couple of things, but not really relevant to to provide any any update to that. We have lots of stockpiles of of of same precipitate stored, but nothing nothing relevant. What's the contribution in '26, '27, and '28 for for Alex? Some numbers could be appreciated. Well, it's very, very difficult to to say at this stage until we get it up and running. What are the prospects for dividend growth? What do you think will be in twelve months? Well, we depends on the production. If copper prices goes as I believe, it's going to be very good. Well, I think we will be providing 30 to 50% of the of the free cash flow as we said in the past. So the moment we get a little bit more of cash flow, we will be doubling, tripling whatever the dividend. Really, this depends a lot in the current price.

56:30 And that's all. Thank you. No. There's another one. No. There's another one here. No. This is the old one. It's the data center's another one. Perfect. That's great, Alberto. Thank you very much indeed for addressing all those questions for investors today. And, of course, the company can view all questions submitted today, and we'll publish those responses on the investor me company platform. But before we direct investors to provide you with their feedback, which I know is particularly important to the company, Alberto, if I may just ask you for a few closing comments. Well, as usual, very many thanks for your support. I I like to see names in the questions of of long term supporters. They know our effort. They know that we are doing the best for the company and for the shareholders.

57:22 And and I really like the patience and their their continuous to support. I think we are in a great company, and we will be updating this is going to be a very good year. So thanks very much, and I've been for being there and look forward to to continue chatting. Alberto, S. A. Thank you once again for updating investors today. Could I please ask investors not to close this session as you will now be automatically redirected to provide your feedback in order that the board can better understand your views and expectations? This will only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team of ATALAYA MINING PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all.