Atalaya Mining Copper (LSE:ATYM) — Q2 2022 and Interim Results

0:01 Good afternoon, and welcome to the ATALAYA Mining plc Q2 twenty twenty two and interim results investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be used at any time by the Q and A tab situated in the right hand corner of your screen. Just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I'd like to do the following poll.

0:31 I'd now like to hand you over to Alberto Lavandiera, CEO. Good afternoon to you, sir. Good afternoon. Thank you, Alessandro. Thank you. Welcome, everybody. Sorry you cannot see my face. I have a very bad connection. So just for clarity of the voice, I have taken the camera off. We'll try later to see if if you can see my face directly. In any case, we are here to to go through presentation of the of the last quarter. It's been I have with me also disconnected the camera, Cesar Sanchez, that is our CFO, which is in the at the on the mine. We are going to look go through the second quarter results and as a summary of the first half results.

1:22 We have their we have their numbers in the presentation. It has been a tough quarter from the cost point of view. From the operation point of view, the company really worked quite well. We continue with productions as as guided, and we recover from the smallest lump in the first quarter of two thousand and one. The but the cash costs were much higher. The all in sustaining costs were much higher. We can go through that a little bit later, and I will focus the presentation actually going through those numbers. As a result of that, the EBITDA was also lower than before. And we and our cash flow is also quite tight, but we continue to have a fantastic balance sheet because we continue to invest in the solar plant and in the LX system through the through the quarter.

2:18 Few other things that are shown in the in the slide five of the presentation are completion of the astral mitigation and so on. I will not bother to go through all of those. You can you can read them. And I would prefer to concentrate directly into the key points of the quarter and also to leave some time, make it brief, and leave some time for questions. So if you in slide six, you can see the evolution of the last quarters. And first graph, you would see the production was of the the ore through the mill was close to 16,000,000 tons, 15,000,000 tons. So base basically, very much steady rate, except the smallest lump that we had in the first quarter due to a national strike.

3:07 Copper recovery, steady, and and copper production recovering from first quarter and going in going into the range of around 55,000, 54,000 tons of copper at the end of the year. So slightly the lower guidance our first guidance, but still very much what we have planned. So if we go to slide seven is when you start comparing what happened in the in the first quarter and first half of this year compared to to the previous quarter. Revenues have been lower due to slightly lower production, slightly lower copper price, and to a to due to a provisional adjustment, it is it is an accounting number of sales that were produced during first quarter or sorry. Excuse me. During the second quarter, but are going to be sold in the third quarter, paid third quarter. So accounting rules ask you to make a provision.

4:18 That means that if these sales are sold at a lower price, you have to take a hit in in your in your revenue, and that's accounted for for that. The big increase is in operating cost. There is almost a $3,030,000,000 euros increase from equivalent quarter of 2021 to 2022. This is almost all of it due to the high electricity prices prevailing in Spain and Portugal, and I would say the whole Europe. And then we can go to that a little bit later. As a result of that higher operating cost, almost in the same amount, our EBITDA goes down from 52 to around €15,000,000, and our profits go down to from 30 to to €11,000,000.

5:05 Still decent result, but I would say quite a disappointment, although expected due to the high electricity prices and high inflation in general. The operating cash flow is is lower. Remember that we include everything in this operating cash flows, including all all our overheads and everything. But and also, we invested around €20,000,000 in the solar plant and in and in other things, ongoing working capital ongoing construction. We financed part of this investment with loans basically dedicated to the solar plant, and our free cash flow during the during the period was reduced by 26,000,000.

6:00 Going excuse me. Going going to the to the that same slide, Slide seven, you will see in the lower part our net cash position. Still, after all these results, we maintain a very solid balance sheet with a net net cash of around €67,000,000 €68,000,000, which is a big difference from our past quarters where we were even having almost €30,000,000 negative working capital. In summary for, the whole half year, it's more or less joining what we had already reported during first quarter and during the second quarter.

6:51 The operating costs go up as a result mainly of electricity. The profits gone down to €30,000,000 and more or less the same thing that we were I just mentioned about the second quarter. The important point is that at the end of the year, at the end of the this quarter, at the end of mid two thousand twenty two, we had €127,000,000 in cash, a fantastic working capital surplus of a €130,000,000, which is higher than what we had in 2021 or hundred and two. So for a company of our size, it's a fantastic, balance sheet to take us to 02/2023.

7:42 Let me go and explain a little bit in slide nine, which deserves a bit of of talk of what's the reason of the higher costs. The main one that accounts to almost 70% of all the inflation is the electricity prices. In slide nine, you will see that historic prices in the last, I would say, ten years have been hovering around fifty, sixty euros megawatt hour. The first part of this year, they went up to even €300 per megawatt hour. And in actually, in in August, they were around €150 per megawatt hour.

8:29 In that slide, you will see in a third point, second point, last part of this second point. Uncertainty remains in relation to realized rates and market rates. It means that the Spanish government and Portuguese government have disconnected or have been allowed to disconnect the prices of electricity from the gas prices in comparison to Europe. Until mid June, the prices of electricity were set by the higher cost producer or the marginal cost producer. And there has been a regulation that has allowed Spain and Portugal to set a maximum cap for the gas prices in order to calculate that.

9:23 Because, actually, we are not getting the the gas from Europe. We are getting it from LNG stations around Spain and Portugal. But because this has a cost for the gas producers that have to start their their combined cycles, the gas generation, the power gas generation generated by gas. Anyway, this extra cost is still not clear who is going to pay, obviously, the consumers. And the prices that are being mentioned in the public notes are around 240, the global prices, which means in addition to these market prices, there will be a compensation to the gas companies, to the gas producers of x kilowatts per hour, unknown depending on who are the payers, who are the consumers, which will increase the final electricity prices to, I would guess, around €200 per megawatt hour.

10:34 Actually, we believe around €250 per megawatt hour. This is 400% higher 400% higher than what we had in 2021 and has a huge influence in our costs. Just to give you an idea, normally, in our operation, we were paying around €2,000,000 per month invoices. And recently, we were paying 7, even €8,000,000 per month. There you can see where is the problems of EBITDA going. There are other sources of inflation that take us to the next slide, which are explosives, which are linked to gas.

11:28 We've gone from basically 50% higher or more. Diesel. Diesel seems to be starting to go down already. Steel balls going up, although starting to go down. Lime is still high due to the use of gas, but we are using less lime, so it's not affecting us too much. So the other two key drivers of inflation are diesel and explosives, which are key for our mining costs, where we have been going from around €5,500,000 normally in '21 per month to six point '8, which means €1,400,000 more every month, still very far away from the extra cost of electricity. Prices of steel reagents and so on are not that inflated, and we have been able to control them by buying all over the world to maintain our cost down because some in some places, the steel was not as bad as us as in Spain.

12:40 Other other things were transport cost. The Baltic Baltic index reached a peak in around May, but has been going down quite a lot for sea freight. So we went that also affects another $0.10 per pound. With all those numbers, we come to the results of first first half and our expectations and views for the remaining of this year. We expect to have copper production of around 52 to 54. Right now, as we speak, July has been quite good. August is going quite well, and rates and rates are being higher than we had in the first half. So it seems that we are going to be around 54,000 tons of copper with good recoveries of around 86% and throughput expected to be around 15 and a half million tonnes per year.

13:38 With those numbers, our cash costs are going to be around between 3 and $3.25 and all in costs, including investments and so on, between $3.25 and $3.45. Of course, this depends on assumptions of electricity, and this can make a big swing depending on what happens in in Ukraine or specifically in the oil and gas of Europe. We are prepared for the worst, but we know that we have a quite a tough quite a tough year ahead. This prices of electricity, extra €100 per per megawatt hour means directly that extra cost around $0.4 per pound extra costs.

14:27 So

14:32 that's why we we are guiding. In addition to that, we just announced a small dividend. Obviously, people would have expected probably more because we had a excellent dividend. We were questioning at the board if we should give a dividend or not considering the uncertainties in copper prices and in inflation and so on. But we believe we have a good balance sheet, and we are prepared for the future. We know that this situation of high cost is temporary because I will speak a little bit later about the measures we're having to reduce these costs in 2023. So we the board decided to give an interim dividend of around GBP $0.03 per share.

15:20 And the details are shown in the slide and in the press release. And we will review the final dividend at the end of the year or beginning of next year, depends on the results. The reason for even if this dividend is symbolic is that it's our policy that the moment we had cash that was ready to be returned to the shareholders, we will do so. We did that last year, and we want to be consistent with this policy. And even with even the with this hard situation that we experienced in this first part of the year, we still are giving out 30 to 50% of our free cash flow to our shareholders.

16:08 So is this all, or is it just a a bad quarter? Let's let's look how we advance what we have in our the burden of a 50 megawatt solar plant that would take care of around 22% of our electricity or three years ago. So we didn't do this in an opportunistic way. Simply, did it because we thought it was a good thing. We also construction of the which we will be at value. We are permitting and doing all the work to it.

16:57 It's just besides. Continue

17:04 to four rigs there. Contains the upsell. To continue with the we are very confident that this is and we continue with exploration.

17:24 So what effect of this? First, the electric costs will lower our footprint, recovery, and extend the money life, increase the optionality.

17:39 This with diversification, with trading, higher trading liquidity, higher production, we believe we have a good future. Going other than to the details, what's the effect of this 50 gigawatts power plant? It takes care for around 20% of our needs,

18:04 more or less second quarter next year. We already purchased basically waiting for the delivery of panels and reformers. So starting, let's say, second half of next year, 22% of our electricity will have a a cash cost of zero. Yes. In relation to that, for instance, with this with this situation of high,

18:38 We signed a power purchase agreement, a PPA with Endesa, starting in January 2023 at 52. I remind you that we are running right now at €245 megawatts, so we have signed something that's almost five times lower for 33% of our needs. That means that starting next year, even if the situation stays as as bad as it is right now, which we hope will not, our cost of electricity will reduce more than half. Basically, we'll reduce at least $3,040,000,000 euros less per year, which is a very significant amount.

19:30 That's and forever because this PPA is for ten years life.

19:37 It's not that only. We have started already the permitting of four windmills. In total, they're around 90 gigawatts per year, basically another 25% of our needs. They will be located they are 100 meters high. They are located besides Cotto Italia behind Sandionizio. The preliminary studies have been positive. We we are with the with the permitting in parallel of detailed measurements during a couple of months while the the permitting is ongoing. Looking at the numbers, this one seems that it's going to be positive and is going to go ahead.

20:23 The capital cost of this is around 15 to €20,000,000. It's a slightly higher cost per kilowatt hour or megawatt hour than the solar, but still quite economic and even more economic with the situation of energy that we have right now. We have also been start starting pumped hydro, but those studies have not been as successful as those related to wind. We continue with with Alex. We have already started the construction of the building and the civil is ongoing. So by the end of this year, we hope we will be able to to show some significant progress in this place.

21:10 We believe that the big addition of high high grade material will come from the extension of Cortotralia, which is called San Denisio. You can see in the picture 18 how the higher copper grade goes all the way to surface. The past miner the past operators mined just the core of the center of the pit, and now we are looking at the Spaniard pit, and we are permit permitting this one. And we hope we can start sooner rather than later in 2023. At the Baso Alverde, we are still in the permitting stages, a longer shot and will not affect the short term cash flows as growth. And I would like to to mention a small but significant progress in TORO. TORO, as you know, it was a project that was delayed. It was stopped due to a negative environment pact declaration by the Galician government.

22:11 One of the issues of the antimining was that there were some acid water historic operations that were that led some acid waters. One of the things we did is to advance the water our water treatment plant that was going to be involved anyway in the in the future project, and we have started and finished the construction. The plant is already working. You can see some some of the pictures in picture 20 of the results of the first tests. The water is coming in as expected, of course, perfectly clean, and the authorities are extremely happy of our commitment. This is an endorsement that we that we believe that this time we will get the permits because all the excuses of of the acid generation of the mines can can be avoided.

23:08 So with that, I would probably go to the questions. Yeah. Alberto, thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions using the q and a tab situated in the right hand corner of your screen. But just while the company take a few minutes to review those questions submitted today, I'd like to remind you that recording of this presentation along with a copy of the slides and the published q and a can be accessed via your investor dashboard. As you can see, we've received a number of questions throughout today's presentation, and thank you to all the investors for submitting those. Alberto, could I just ask you to read out these questions and give responses where it's appropriate to do so? And then I'll pick up from you at the end. Yes. Thanks, Clint. One question. So the last quarter, you discussed your evaluation of other renewable energy options such as wind, turbines, pump pumped hydro.

24:02 Have you made any decisions with these options? Well, I just commented that we have already made the the decision to start the permitting of the wind turbines, four wind turbines of around a bit less than six megawatts each. High and with a specific location, and we don't know how long this will take, but we have taken the decision to to to all the permitting as soon as as we can. The pump and hydro, we have completed the first tests. And so far with our with our approach, this they didn't give good economic numbers.

24:38 Second question I have is diesel prices are high. Can your mining contractor switch to electric trucks like some other miners? Well, in in our case, the problem is that electricity prices is very high in Spain. And also, you need a certain infrastructure to go with electric. It's not very common in other places, and it's only possible when you have very very cheap electric prices from hydro. In our case, it's it's it's not possible. What we are doing to to minimize the effect of diesel is to optimize as maximum the distance of haulage. Also, are looking carefully at the markets and looking at buying a significant amount amount of diesel to store the port when the prices are convenient and use that, let's say, buy it not only in the national market, but in the general market.

25:41 Another question is when your RELX plant begins production, will it main produce copper or zinc? We will start with zinc. It can produce both. All the test works that we have done in the last few months have been extracting the zinc from the copper concentrates. So we will be able to treat some materials that have copper with lots of zinc in the concentrate, which right now we cannot produce. And we will able to get paid for the zinc, but still get paid for the copper. This is the way we will start, but the plant will be able to to produce only copper or only zinc. The recoveries of zinc, which right now we are not paid for, are extremely high and very fast and without affecting the copper at all.

26:34 Another question comes, when you will will you announce more exploration results from Massawa Alverde? We are cons we we will continue while we have a group of results. We have four rigs there, two with infill and doing some specific work in Massawa Alverde, another two in the satellite zone called Camparario Escambizada, where we have found some new areas. Totally, the area is is five kilometers long, so it takes some time to to be testing all these anomalies. But so far, we will we will be announcing as they arrive probably in this in during this quarter. Another question is what proportion of your costs are are in euros? I would say approximately 80%.

27:24 80 to 84%, 85%. The only cost that are not in euros are the freight, the DCs, RCs, penalties,

27:36 and some of the cost of buying materials outside like poles and so on that sometimes we have to pay. If we buy them outside, we have to pay in euros. Non current asset loans have increased from 2.3 to 7.7 in relation to L Existing. The loan has a four years grace period. Why has the country been structured in this way? What is the maximum foreseen debt or balance? And how will I end the loan repayment? Well, starting by answering the last one, it's, I would say, it's a problem of of LINE Technologies. We have warranties over the technology. We try to get an equity placement there, but the line insisted that they just wanted loans because they don't want to lose the majority of this technology.

28:33 This, we believe, it's it's going to be a breakthrough technology. It's going to could change the way some things are treated. So we negotiated this system in order to to to refinance part of the part of the installations that are, let's say, common knowledge, those are ours. And some of the things we give them give the the line the the the money for them to to buy Some specific materials and some specific technologies that are not in the public knowledge. It was basically the only way we could advance in this this this way. Current assets loans have increased for that's that's the same one.

29:25 Why has the debt been drawn down rather than surplus cash balances? Does does not increase interest cost? It's a it's a good point. Our interests are one and a half percent to 175% with no liabilities sorry, no no warranties. So it's a very good financing. And it's always good to have a good cushion in your balance sheet instead of having to go with negative working capital as we have been doing during the last year. So that's the reason it was a cheap financing without recourse, without hedging, without any sort of advancements, and we thought it was a good system. Why are VAT receivables so high? Is there a risk they will be fully recovered? No. There's no risk. Simply, they are higher simply because of of the amount of of business going on, specifically with the increase of in electricity and the increase in in operating cost. The VAT is basically goes attached to your operating costs, and there's no risk of of getting this number. We have never had in in all my life in Spain, we have never had any problem of of receiving the VAT back.

30:48 Just to add some more color on the VAT. So the the the the VAT normally gets paid back in in in a in a period of time of about six months, and the majority of the VAT has already been received as of, you know, some amount of the where, you know, depending from 2021. So, you know, the amount has significantly dropped now. And as Alberto mentioned, it it is a slightly you know, the volume is a slightly higher as other sort of, you know, higher cost and and higher investments. So that's why the total amount has increased a little bit, but but there is no issue recovering. The the the the administration takes about six months to to repay all the all the VAT.

31:41 Okay. And thank you, Cesar. Can you confirm the dividends will be paid without deduction of local tax? I understand, yes, like like last year. Exactly. Exactly. The the the tax was an issue that we have dealt with the the tax administration in Cyprus, and and we have now received a letter from them just to avoid having through the hustles of all the shareholder to submit their declaration of tax residency. So I can confirm that we can pay the dividend across without any deduction and to everyone, to all the shareholders as we don't have any shareholder in Cypress. There's one question here. Is there any plan to move your listing to the main market of the London Stock Exchange? Yes. Continue doing all the right steps.

32:33 We may not achieve the the premium listing because of our market cap has gone down. But so far, we we are doing all the steps to do that as soon as we can. How concerned are you that a global recession will reduce copper prices below your cash costs? It's a good question. Look, we we are concerned more than than the copper price, we are concerned about the increase of our cash costs. I don't believe well, we don't believe that the copper prices will go down even with a recession for a long period simply because the copper is needed for the green technology. The copper is needed to to actually to counteract all the inflation that's coming from gas. There's no other options or or diesel or oil.

33:32 So this will have to happen worldwide. And this thing of inflation, diesel explosives, all kinds of even power is happening all over the the world and all the mines of the world. In the case of Europe, it's extreme due to the strange situation of the gas dependency of Germany and Europe. But it means that the most of the mines and the producers will also start suffering. And what's more important is that new projects are not going to be built unless there's an incentive of higher copper price. So it may be a matter of one year, half a year, two years or three years. The longer it takes, we believe that the copper price will explode up much higher.

34:26 Has energy price increase changed your near term strategy for growth projects at all? Would you consider incorporating more energy independence of Toro, solar wind and your other projects. Certainly, in Toro, we are going to we have already included a solar plant on top of the existing old tailings, and there's a big wind farms in in total. Actually, Galicia is is one of the the big wind producers, and this huge wind farm has been built. By the time we get that thing gets built, we believe that the pricing will have stabilized as they were in the past. Spain has always been around 40 to €60 per megawatt hour, basically due to the very low dependence of the of the gas.

35:22 So, yes, I think we'll have solar and we'll have a PPA with hydraulic or with with wind. Near term strategy for growth at all. Well, we continue looking at growth projects, but we look at them very carefully. We will not make investments in places where it doesn't make sense or if the costs are not clear. Another question comes in, in the LX system, what happens to the gold and silver products? I believe, and I'm not an expert, that the silver stays in the anode sludge. I'm not sure in the gold. The silver does stay in the in the sludge.

36:08 You have to remove and sell it as it is. Do you have any forward projections for copper price? Well, I don't know if it's projections or protections. Here, says projections. Well, we expect the copper price to recover, and we are exposed to to the copper price, fully exposed. Will the copper in the future consider investing in additional solar energy and additional wind turbines? Yes. I have answered that. Yes. We are going to be very likely. Will include include us this wind turbines and probably more solar, but specifically wind turbines. A major shareholder may another question. Major shareholder exited recently. Has a stock overhang now being resolved?

37:02 Is there still any other stock to remove in the market? I think it's fully removed. I think their liquidity has improved quite a lot. This major shareholder, which was a Chinese one of the first shareholders in the company, they had 22%, around 30,000,000 shares. Those shares were placed in around 44 institutions or blocks, and I would say that there's no overhang at all. Another question is what would the base case timing for total permanent construction production? Based on what we see, we have been told that we our project will be included we believe we can be included in what we call projecto tractor, which means it's a tractor project, a project that has creation of jobs and quality of quality in the area, which will expedite permitting. We have submitted all the papers and we will likely get the permit for this in the first half, I would say the last part of of the first half of the next year, '23.

38:22 Construction takes year in, let's say, fifteen months. It means that during '23 will be in construction, end of twenty three will be into production. Another question is what has the grade improvement been since the end of half? And what do you expect the grades to be over the next six to eighteen months? The first month of July and what we have seen in August, the grades have been around point 43% copper, so back to normal or higher. And we expect those grades to be maintained during the year. We're also trying to permit at least part of the San Deniso project as soon as possible, so we can get higher grades, much higher grades over 0.6% copper, at least in some part of 2023.

39:29 Has there been any conversation with the government or energy suppliers about capping the increase in prices? Yeah. We have had a lot of of meetings with this energy suppliers, and that's the reason why we got last year well, a few months ago, we got a power purchase agreement at around 52 for ten years. Because, basically, we told them that otherwise, we just close. The energy is something very complicated in Spain or Europe, I would say. And the government will have to say something because these prices are not sustainable for the industry. Right now, the only reason why nothing is happening is simply because most of the industry players are enjoying lower prices established at a at longer term agreements, and only part of the the increase in price is passed to the industry and to the individuals, but something needs to be changed in the system.

40:37 The change may come through the system that has been proposed by Greece, where there will be two types of of setting of prices. One will be setting without the gas price to to balance the hydraulic nuclear wind and other energies. And then the last part will be only for gas. This will avoid the use of gas pricing, very expensive, to set the the prices for electricity for the whole system. Spain only uses normally around not even 10% of electricity from gas, but this 10% is setting the price for the whole system, which doesn't make sense. This was something that was okay when the the difference between gas prices and and normal electricity from nuclear or from wind, whatever, was not very different, but it doesn't make sense when the prices of one and the other are totally different.

41:41 For example, the I was just checking that in in the in the prices of gas, Europe, prices in 2010 were €10, and today, as we speak, is 200. But it doesn't make sense at all to apply this extra electricity, the 10% for the whole system. So the whole Europe will have to change their system because it doesn't work. In the context of generating negative cash flow from operations, how should we be thinking in capital allocation in second half? Well, we are looking at each each of the investments.

42:28 So far, we we continue to look at this at at our commitments of LX and our commitments of of solar, which are there already. In the case of solar, we have a loan to to complete that investment. And, basically, we'll try to look at each of our euros. Inspiration, if needed, we can always cut it down a little bit. But that's what we can do. Being very careful with the with our expenditures. Please, can you quantify any cost effect for MELIX? Difficult to to quantify.

43:15 Difficult to to quantify. The the big increase comes from MELICs. The big advantage from MELICs comes from high recovery. So in a normal recovery of complex sulfides, get, let's say, 70% recovery of copper, 75 of zinc. By using ELX, we have seen we can get over 90 of copper and over 95 of zinc. So you had you have more production. So to divide your cost by this lower production and the costs are overall costs are quite low.

44:04 We have done some numbers in specifically in the case of San Dionysio, and the added value for San Dionysio and San Antonio of LX was in the order of higher than the whole market cap of the company, almost double the market cap of the company. So it's very significant simply because higher recoveries. How are you assessing the risk of CapEx inflation for both solar and LX projects? In the case of solar, it's it's totally capped and and very clear. We had some inflation in Alex. The the building itself costed already 500,000 more.

44:57 The cost of copper in bars or whatever was higher. So, yes, we had a little bit, but not not a big amount. And all the way every all the equipment and everything has been bought, so we don't expect anything else from now Our early estimates for for Alex first phase was around 12,000,000, and the the last ones were around 15, so not too bad. So another question coming here is, it looks like oil, gas, other fossil fuels and many other costs will be higher in the midterm. CapEx will also be higher. What could be the copper incentive price required to invest in a new mine?

45:43 100% agreed. I mean, I bet you that none what I mean, none is none of the greenfield projects that are being looked at in South America, North America, none of them will be economic if they use the current costs, current operating costs. I'm totally sure that the new no new big projects will be invested in this the construction in this in these places, except those that are already online. And maybe with exception of some in Congo with very high grades where they the capital intensity is not that high.

46:31 For several reasons, one is the CapEx, but also the OpEx and permitting delays, COVID restriction, traveling time. Right now, with this higher operating costs, the price of copper will probably have to go over $5 per pound sustained in order to to have a one big proit being sanctioned and being approved. And finally and I left it for the very end. I have it here. I wouldn't answer these questions, but it looks like there was an investor that was saying that where was the incentive of investing in ATALAYA because it's been a thorough investment because he bought shares in 2010 from MINED.

47:23 And now the prices is lower and twelve years wasted for investors, and that's fine. But one thing that I didn't like is that he was saying that the executive board has made millions selling gifted shares to extremely well timed point packages with bonus and share options. Sell shares at the very peak, and then watch the price call up immediately. Well, I don't think this is a fair thing, and that's why I thought it was something important that I addressed it. Back in 2010, I checked because I really got angry, not because of somebody buys or buys shares and loses or makes money. Well, that's part of the investment.

48:19 But to the question of management and board that has made incredible efforts to keep this company afloat. Back in 2010, if somebody had invested $1, our share now now would be we have lost 19%. If I invested in Freeport, same dollar had gone down to 26%. Freeport is the is the, I would say, benchmark for copper. I can only be responsible for my team, which is excellent, since mid two thousand fourteen. At that time, from then, from mid two thousand fourteen to now, even with this slump in share price, our stock is still up 20%, while Freeport is down 15%, same period.

49:16 About the, I would say acquisition, unfair acquisition of executives executives exercising share options on the peak. Executives exercise two executives exercise some share options. The last day they were they was available for them to to exercise shares. The last day, waiting until the last minute, actually requested some extension to see if they could extend it. And in other executive, which is my case, I paid my taxes money, and paid for the shares and without selling them. So we are in the same boat of shareholders, and these acquisitions are very unfair because this company has been able to survive very difficult times and will continue to do so. This is one more.

50:06 Nobody would have thought that the price of gas in 2010 will go from 10 to now 220 times, or electricity in 2010 go from 40 to 250. Certainly, we wouldn't. I wouldn't. So be sure whoever it was sent this question that we will continue to do the best for this company. And if it happened to to be a bad investment, well, there's always safer investments to invest in, but not that we, as management, are not doing the best that we can. And I think this is all the questions I have.

50:55 Yeah. Alberto, Sazar, thank you for that. I think you've actually managed to address all the questions from investors. And, of course, the company will review all questions submitted today, and we'll publish those responses on the investment company platform. But just before redirecting investors to provide you with their feedback, which I know is particularly important to you both, Alberto, could I just ask you for a few closing comments? Yes. I think I think it's a very difficult time for a company and for management. It's it's difficult because they're all external factors. I've seen this happening in my life several times with when gold went to 240, only to move up to 1,800 in a few years later.

51:43 I've seen this with nickel going to 2 and then going back to 15. I've seen this with the crisis of two thousand and eight when the coal price reached less than $2 and then went up to $4 in one year later. I believe this is going to pass. I think we have a very tough, few months until we get into January and into April next year where the energy prices will give us some breathing space, but we will go ahead. This is a long term investment. Our operations will have, from now on, at least fifteen to twenty years life. When we arrived here, it was only 12. This is a long term road.

52:30 We always look for the money of our shareholders, and we'll continue to do so. So I think we have a a decent future, although we have some difficult times ahead in the next few months. Alberto, A. Thanks once again for updating investors today. Could I please ask investors not to close this session as you now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations? This will only take a few minutes to complete, but I'm sure it'll 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. Thank you very much.

53:16 Thank you.