Atalaya Mining Copper (LSE:ATYM) — Q2 and H1 2023 Financial Results

0:01 Good afternoon and welcome to the ATALAYA MINING PLC Q2 and H1 twenty twenty three Financial Results Investor Presentation. Throughout this recorded presentation, will be in listen only mode. Questions are encouraged and can be submitted at any time by the Q and A tab situated at the right 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's appropriate to do so. Before we begin, I'd like to fit the following poll.

0:29 And I'd now like to hand you over to Alberto Lavandiera, CEO. Good afternoon, sir. Going to go through the present you have seen the results in the press release. And at the end, to summarize, we had a good quarter.

0:46 I would say a quarter with 14,200 tons of copper, basically, is setting us in the right target to get to our plans for around 53 to 55,000 tons of copper at the end of the year. All in costs all in sustaining costs have been good, have been much lower than we have had in the first quarter and much lower, of course, than the current quarter last year. And so far, it looks like we are fully on track to get to this production of around 54,000 tons of copper with all in sustaining cost between 3 and three twenty likely in the low end of of these costs if things continue like they were.

1:34 EBITDA this quarter has been around €60,000,000 with a little bit lower than the first quarter with better cash costs, and there were some some non cash adjustments due to go to the q quotational periods of previous quarters that have impacted the the EBITDA. Even so, the EBITDA, the half of the year around €40,000,000 is a quite a healthy one. One of the reasons of this is that the electricity prices have are substantially lower than previous year, around 60% lower, and they continue to trend lower. Right now in August, though, it's still slightly higher than the previous months due to the holiday season in Spain and the lack of wind, but still much lower, substantially lower than they they were in the in the previous year. We continue to do some investments in in the two main projects, which are the solar plant in in in our operation and the construction of the phase one of the Helix.

2:36 And even so, after these investments, we could and paying back debt of around €30,000,000. We continue to have a a strong net cash position of close to €70,000,000. And this was one of the reasons why after why after debating at the board, the board decided to declare an interim dividend for the first part of twenty three, consistent with our policy between 3050% of the free cash flow. And we decided to give another 5¢ per per per share, and I will go over the details of payment a bit later. Another important thing of this quarter was we finally delisted from Toronto. It was a unnecessary expense expense cost that we decided to to remove because really was not ex giving us any liquidity.

3:33 From the assets point of view, from the construction point of view, we continue to to construct, as I said before, Alex and and and the solar plant. And we have been given some announcements which were interested. The first interesting. The first ones where we we announced the results of the APA of of Rio Tinto, but we also got some authorizations of projects of MASA. Project, the environmental authorization, and also the environmental authorization to continue expansions of our team to include in payments pond. The work in TORO is slow, but it's continuing in permanent wise. And related to to TORO, we continue working with the water treatment at TORO and the reverse clean, and the the news coming from that side, from that project, from the society, and the our stakeholders are always all very, very positive.

4:33 So going a little bit into the details of this to the quarter, the plant behaved normally at a at a rate of close to 15 and a half million tons per year. Good recoveries of 87, which were higher than previous quarters and and getting back to our levels of 87, 88%. And copper production, as I've said before, with decent concentrate grades were around 14,000 tons. Even if we had a slightly grade, which was point four, which is probably slightly lower than we had expected, but this was compensated by the by the high recovery. As a result of that as a result of that, the slightly lower sales, obviously, due to the lower copper prices.

5:24 EBITDA I mentioned before, slightly lower due to this non cash adjustment adjustments, but with good operating cash flow of around €20,000,000 and and left us with a net cash position, which was better than the previous previous quarter. And, of course, this results in a in a good cash position and good balance sheet, which you will see in the slide slide nine. We had a cash position of around €113,000,000, and and net cash of around 70 with our nice working capital surplus of 81 even after these investments and that we have been doing in LX, in solar, plus exploration, and plus the permitting of total. So overall, I would say that there was we had a very good performance, and we continue to to deliver in in our in our plans.

6:21 Part of this improvement came as a result of the decrease the decrease of the of the electricity prices. You will note in slide 10, the decrease of of the equivalent quarter of around €300 per per megawatt hour back in 2022 in the third quarter, and we are now less than a little bit less than €100 per per per megawatt hour. So it's a huge decrease, and this this has is this one of the reasons why the the the results are are better, the operating results are better, the financial results are better. Of course, the the gas prices also have a reflection in other things like lime production and even explosives prices, where explosive prices have been decreasing from around $1.50 to around $1 euro per per kilo.

7:19 This is reflected this is reflected in the detailed breakdown of cash cost that we see in slide 11. We have been starting to to give the breakdown of these costs during the last few quarters. And you can see comparing with previous quarter and comparing with the full year, how how the mining has been reduced significantly, almost 10¢ per pound from equivalent quarter of last year, and that was due to the high diesel price, high explosives price. And in in the processing, that's plant treatment is really where you can see the big difference. The cost of point 82, it's significantly lower than what we had at one thirty one in in last year and even lower than what we had in the first quarter. This is mainly due to the reduction in prices, slight reduction in prices in line, but mainly the reduction in the reduction in in electricity price. The rest have been other side, which is health and safety, administration, purchases, all these things, laboratory,

8:32 the auxiliary services, water, are more or less constant, same slightly lower than they used to be in the last year. But other other than that, we we can see that overall, we we have a reduction in site operating costs of almost 50¢ per pound compared to previous year. Just to give an idea, we are producing more or less 120,000,000 pounds per year. This is equivalent to around $60,000,000. Yes. This reduction in operating costs.

9:02 Freight has also reduced a little bit due to the reduction in freight charges, 5¢. So overall overall, all all cash costs are $2.60, which are in the low end of our guidance. And I would remind those listening that this cash costs, specifically in mining, include the capital cost of replacement of the mining fleet, which is taken care by the mining contractor. So this is something that not very often, and that mining companies have their own normally, my mining companies have their own mining fleet, and they have to replace the fleet once in a while. We don't have that case. And that normally, that's included in all in sustaining costs, which also were substantially lower, again, around 50¢ per pound than previous year.

10:01 Again, how this compare with with others? Well, normally, we have this slide in the the back end of the presentation. In this slide, we put all in sustaining costs of peers, companies based on public information on all of it. And in the left side of each of the columns is the quarter by quarter. So basically, it's it's more recent quarters on the left side of the each of the piles. One of the things you will notice is in the last six quarters, our all in costs have been going down constantly. Unlike lots of other peers where you can see that the the cost have been continued to go higher for whatever it is there, for whatever reasons.

10:52 But this is something that we like to make some emphasis because often ATALAYA is considered a high cost producer, and we don't think we we think we are not a low cost producer, obviously, but we do wonderful things with what we have. So this is a good comparison to see what you have in the market. So how does it look this year? Well, it looks normal. I would say I won't say boring normal, but I would say normal. Copper grade, we're right now in the low end of the of our guidance, but, anyway, we are in the higher end of the copper recovery. So at the end, these things are compensating one each other. We believe we are in the low end of cash cost, so cash cost will be closer to $2.60 and an all in cost $3 or under per pound.

11:49 So in theory, consistently under under the under our guidance, and the guidance of production will be around 54,000 tons of copper. Obviously, this is assuming that the electricity prices continue as they are. It looks like the tendency is is going down once the summer is out and except the recent days where where the gas prices in Europe have jumped a little bit due due to to some uncertainty of of supplies. The reality is that it looks like Europe and specifically Spain is is already not reliant at all in the gas prices coming from Russia.

12:35 And the the stores are over 80% well before they were supposed to be before the the the winter. So it looks like we're a in a good position. We will continue to to to invest in ELEX and in exploration and in solar. And it looks like the capital costs of ELEX is is is going higher due to several reasons, but mainly being a new technology and being done in a very, I would say, a way that stopped fast tracked due to being the technology being applied for the first time. So we have a slight delay, which obviously means that we have a slightly higher higher capital costs.

13:27 Besides all this, as I said, the behavior of the company has been going quite well. So the the board decided to give a dividend of 5¢ per per per share, around $4.04 pence pennies per share. The record date will be August 25, so a couple of weeks, and the the payment will be more or less at the end of September. We we realize that this is we have just paid the the first part of the of the the last part of the of the dividend of last year, just just days ago, weeks ago, but we wanted to be consistent with what we did last year. So the reason of this is by Cyprus law, the dividend the final dividend has to be approved by by the AGM, which sets the date of this this final payment at the June approval.

14:24 So by the time you pay, you end up paying in in August. And we decided to to declare interim dividend each six months and then have the final dividend once we know the final results of '23. So we continue to we continue with our policy, as we stated, of paying 30 to 50% of the cash flow generated during the the year. And unless there's investment needed at certain time and short notice, we will continue with this with its policy, of course. 04/23. I think 04/23, have two things that we have to finish. First, finish with Alex. It's it's advancing all the equipments on-site.

15:17 They are assembling pipes, cables, lots of activity in the round. And our target is to have some feed of of concentrate before the end of the year. So likely to be in the fourth quarter, and we are pushing and trying to help laying technologies as as much as we can. In the case of the the solar plant, we also have some delays with the final license and of of Rio Tinto Village. Now, there's lots of work going on on the ground by installing the supports, cables. We have all the equipment, all the transformer and sides. So again, this solar plant is divided in two areas, the one in the North and one in the South, the one in the North is smaller, close to the plant, and we are targeting to start the collection of that at the end of the year, maybe worse, the first first month of of twenty four.

16:23 So a small delay, but still advancing very well. Besides that, we continue to do all the studies and all the work, the tail work, the tail permitting to get San Dionisio into production as soon as possible. San Iglesio, as you may recall, is basically the pushback of this pit that's seen in picture 17 in the left corner. In the bottom corner is this one drill rig, which we continue with drilling with three rigs in Osa Morena, sorry, in Vaca Muerta, and two rigs in Osa Morena, and one rig in Rio Tinto East. And we will continue with this small slowdown in summer, but we'll continue with this during due to the to the effect the restrictions of of forest fires. They developed do lots of things during this extreme heat wave that we have right now in in Spain.

17:15 But besides that, we will continue drilling normally in this exploration sites. The right side is is some expressions of total. In total, the the activities there are all related to engaging with the authorities. They're helping them with looking through the papers. All the papers have been presented, and we are waiting to see some decision after the summer period. In summer, everything goes to sleep, at least in administration. And but so far, the reception of the project and the local support has been excellent, including including some public support by authorities and by associations recently in the newspapers.

18:09 In summary, I've just gone through all these things. In summary, we still have a very busy year. And our goal is to get our company on track to get to over a 100,000 tons of copper produced first with the addition of production from San Dionisio area from Rio Tinto, and second, with the addition of Toro that can get us over a 120,000 tons. We believe in the copper market, we believe that

18:49 the market will change. We know there's a slowdown in the consumption in China from internal consumption, although the energy transition is requiring more and more copper, the stocks are low. We see what's happening with big companies like Codelco going down, so we don't know when, but it's for sure it will happen that there was a certain time where copper will have to go up, and significant copper prices have to up significantly to incentivize new new new projects, either brownfield or greenfield. We are as as part of that, we are one of the few copper producers in in London, and we continue with our goal to be listed in the main market as soon as possible, we're doing all the work.

19:47 And I believe there's a question about that during the question and answer, and we will give you how that is progressing. So for those of you that do not know much of ATALAYA about us, we are in Europe, stable, consistent, best practices. We have a growth pipeline, very clear. We have demonstrated that in the past years. We never stop. We have an excellent team that continue to deliver, continue to do always improvements in operation, in new installations, reduction of cost, exploring. And really, this is a low low cost proposition and low risk proposition on copper.

20:39 And with that, I would say that the best thing is to to to go to the question and answer. Perfect. Alberto, thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab, which is situated on the top right hand corner of your screen. But just while the company take a few moments 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 questions throughout today's presentation. And if I could just ask you to read out those questions and give response to where it's appropriate to do so, I'll pick up from you at the end. So if I may start reading some of the presentation we have received.

21:24 What is the lane that transferred to the main food exchange? I think I will pass this to Cesar, which is handling the contacts with lawyers and the sponsor bank, etcetera, he can give you all the details. Thank you, Alberto and hello everyone. So we have no delays on the process, I think it's been very clear from the company to say that being listed in the main market it's been or a strategic objective for the company, a good goal to achieve. And we had over the last year, we had some issues by migrating the company to The UK. And that's, you know, for some tax reason and that's why we call off that process, but we continue with the process and to be listed in the main market and the people need to understand that there are some complexities on the different work streams that we need to work on, but as Alberto mentioned, we are working on it. We continue working very hard to get it done as soon as possible, there is some complexity that we need to overcome, but I wouldn't expect any delay. Things are progressing quite well and hopefully we can give you a little bit more detailed information once we continue our discussion with the regulator and and with the different work stream that we have.

22:57 You, professor. There's another question saying how much production should we expect from Alex in twenty three minuteimal and twenty four? Will it be mostly zinc or some copper too? I think, to be fair, in '23, I will be very happy if we simply start treating concentrates and get on top of my table some ingots of zinc or cathodes of copper. Initially, we will start with zinc. We'll start treating that we have already identified some areas with zinc and copper, where we will be floating and producing a a global concentrate. And from this global concentrate copper zinc, we will leach out the zinc without touching the copper or minimal touching touching the copper, and that copper will be sold, and the sink will be sold as a byproduct.

23:54 So in '23, due to the delays that they have, I think minimal. In '24 in '24, I would say that depends on how they when they start full steam. I would say that mostly will be zinc, maybe some copper, but mostly will be zinc because that's where we will concentrate. And I will be happy if we get to the to the range of 70% of the, I would say, 7,000 tons, 8,000 tons of zinc. I will be very happy with that. Then where this value the value of this plant comes from is to be able to recover zinc that otherwise is not recoverable. And when we have zinc copper, we're able to have much higher recoveries of both in places where we have very complex metallurgy.

24:42 Specifically, there there are some deposits in the parent belt, some of them owned by us, where the grain is very fine and when you when you had to grind to down to 20 microns or less in order to recover copper, and sometimes even the copper, you can only get 70% or see 60% of copper. Using LX, we have demonstrated we can be done. So this is the main goal of of of it. By the way, this this plant that we are that we are building, it's it's it has the capacity to treat 3,000 tons of copper and 10,000 tons of of of zinc. But the reality is with minimum minimum additions, we'll be able to treat double than that.

25:28 So the space, the building, the CCMs, the transformers, the electrolysis, everything except the tanks and filters, like plantation tanks are all over the same to almost double. So with a minimum investment, we will be able to produce more, treat more. But initially, answering the question will be mostly zinc. Copper if we do copper, it will be only to test it and demonstrate it. Another thing is, what are your latest thoughts on potential for regional to regional consolidation in the Iberian Parliament Belt? Well, my latest thoughts. My latest thoughts have always been the same. It's not latest. It's really what I believe it it should happen in in some way.

26:19 There are several projects going on and several companies going on, and I think the eventually, we will have to see what are the synergies of each part. We have couple of companies in Portugal. We have two, three producing projects in in Spain and in Sevilla, and another two that can come. So, eventually, I think it will probably just be something together. I think '24 will be interesting year, especially if we get the technology of Helix working as we expect because, certainly, that will open let's say that will open the doors of doing something together with with with with neighbors.

27:14 There's one question here that there has been some press that there can be a situation where too hot can be bad for solar and risk here for us. It is true. It is true that when it's too hot, the the performance of the of the solar panels are are slower than than in clear spring days or or or but but simply a smaller performance. For example, in Spain right now, if you look at the anyone who looks at the the charts, Spain will probably be producing during sunny days around 70% from solar. So there's no risk simply the performance is lower. Juan is is very hot, but that depends a lot in the wind and depends on the situation.

28:06 But so far, is producing normally quite well. What impact will weak US dollar have on the company in the future? Well, it our operating costs are around 70% denominated in euros. So the exchange rate of dollar in euros has a direct influence with us. So

28:37 depending how how is the the the exchange rate euro to dollar, a weak euro is better for us in 70% of the cases. So that will whatever deterioration of the US dollar will probably mean higher operating cost for us. But having said that, we also have to look at what would happen with the metal prices because normally, there there is a correlation with that with the metal prices. So, normally, metal prices go up when that things those things happen.

29:14 Another question is, our debt situation is very strong. There is a chance that some of our competitors might struggle. Any talks advancing with possible targets who may not have as a strong balance sheet? Well, we we we continue to to look at targets in Spain, in Europe, and in other places of the world, provided it makes sense. We have not only we have a balance cash flow a strong balance sheet, but we have especially, we have a a healthy position from a debt point of view because we don't have a project debt, and we don't have royalties or streams. So this, yes, it's an advantage. And when discussing with potential acquisition targets, this together with our demonstrated capability to get things done with minimum capital cost has been a plus, and we will try to to continue using that for an to our advantage.

30:21 But so far, we have not closed anything, but we continue having talks always always with targets, provided the the right the right price. We we don't like to overpay.

30:36 Another question is, can you give us a split of CapEx spending during the quarter on the Alex and solar projects? Cesar, do you have the details there in front of you? I have it also, but I have to open them. Yes. I do. So for the solar plant, we spend around 2,800,000 during the quarter and for Elix 2,100,000. Yeah so these are the amount that we spent in the quarter on just dollar on net income.

31:10 There's another question, interesting question. We appreciate the dividend, but with the share price so low to what you think what do you think what to what do you think the company's worth? Do you switch to share buybacks? This is something that we have discussed at the board, and it's it's a really, it's a good point because we could buy our shares back because there's a good investment. But there was lots of discussion, and we thought that one of the problems would be that we would drive the the limited liquidity. There's one of the reasons why our share doesn't move is that people that hold it, they don't want to sell at this price. So,

31:56 yeah, we have thought on that, but so far, we decided not to do it for the moment. Another question. Say, listed in other markets, where is the thinking now? UK, Spain? Are you aware that dual listed can cause a negative effect on share price through arbitration of dual listed shares or of dual listed share plus? BHP had this on a grand scale for years. Do you Faiza, you want to get to mean, I'm thinking of UK and Spain, the advantage on and disadvantage of each?

32:31 Yes. We so we're looking at all the options. So as you might be aware of, we are currently Cypriot entity now being listed in the main market as we are trying to pursue and being incorporated in Cyprus might have some issues to be included in the FTSE Russell Index and this is why we're looking to move the company to other location or at least we're trying to understand what the options are. If we migrate the company to Spain as an example, we will be able to be lifted in the main market and be included in the FTSE Russell Index but this is only if you're not listed in Spain.

33:18 So if you're doing listed in Spain and in The UK and you are a Spanish incorporated entity, you might have some limitation to be included in the FTSE. At the end of the day, the goal, the main goal is to be listed in the main market to be included in the FTSE index to provide more liquidity to the shares and hopefully help the share price to go up. And this is what we look in all these options. For the time being, the project as it's currently being progressing on is continually being listed in the main market and looking at the possibility of migrating the company to another Europe country. But yeah, that's the thinking about the dual distance, so we need to be very cautious in the in terms about being listed in another country if you want to be included in the footy, which I think it will be good for the company.

34:13 Thank you. There's another question here. Can you provide some more detail on permanent status to begin mining as an initial? How is the policy expected to back up production next year? Well, the time with permits, you never know. We have submitted the the the small modifications of the mining of the pit and moving of the road, which is is has gone through public info public consultation. We believe what what are the things needed there? We need to move our electric line. We need to move the road. We need to get the permit to mine specifically there. We believe we could get into some mining per stripping even this year and or early part of next year.

35:02 How much is that going to impact the copper production next year? I really don't know. Not much being the first year. I would say not much.

35:19 How do you think about the timeline for total approval? Is it the next twelve months or five year? More like five years. No. It will be less than twelve months without any question. Right now, in in fact, due to some changes in the laws that have happened, in theory, the the mining authorities should provide an environment impact statement within the next six six months of receive of receiving the papers. So even with delays that are created by the lots of questions by the anti mining groups that try to slow down the process always.

36:05 For example, last time, were almost one year in public information when it should have been only one month. But the way things are going, I think, will be certainly there in the next twelve months. What do you when will you expect the impact of Indonesia or in '23, '24? I think, as I said before, in '23, only moving some some waste in '24, probably something, but I cannot tell you how much in production. I I will guess a little bit. Our target will be to try to get some more high grade sooner rather than later in '24, but I cannot give you the numbers right now. On exploration activities, can you please give me the detail on the work you have been doing in h one?

36:55 And what were the inspiration products are going forward? Where are you seeing the most potential to add value in the business to inspiration? This is an interesting question because we are not doing infill drilling at any site. So we are we know that we have some good grades in Massawa Verde, copper, and zinc. What we are doing is checking this will not change the needle. What we are doing is risky exploration at MASA Al Verde, checking two lateral zones, two parallel zones to MASA Al Verde, which are called Campanario, and other one is called Mojara. In all of them, we have cut sulfides.

37:42 Some are better grades than others, and it's a matter of following this kind of mineralized levels. The the good thing here is that we have proven the we have proven that the the geophysics system, especially fixed loop EM ground level works well combined with gravity, and we are systematically testing. Sometimes we only intersect the parets. Sometimes it's always too small. Sometimes it's it's just parets in in the in the shales, but this is the way. Potential. I think the the the best potential is to find another deposit like has been done in the parallel belts.

38:30 I mean, there have been new discoveries. One place called El Villa, another one called Magdalena, which is a major world class deposit, which was only a few few kilometers away from existing known deposits. So that's a matter of, I would say, little bit persistence and luck. We have €10,000,000 in exploration budget. We recently hired the former exploration manager that was responsible of several discoveries in the Parrot Belt, and we will continue that way. Once we get the permits of TOTO, we also intend to start a big exploration program there because mineralization remains open in basically all the directions.

39:26 Does ATALAYA have any assets outside of Spain left over the immediate days? Nothing left. We still have some shares of Kefi Mining that the previous management of EMED decided to to invest, self invest. And, basically, the value is asymptotic towards zero. So it's going bad. But besides that, we don't have anything. Could Cesar give some little more color on the tax issues with moving to the main market and a firmer time timeline? Cesar, you can I think you have the responsibility, but this you can Yeah? Just to be clear, there are no tax issues to move to the main market.

40:17 So the tax issues arrived when we try to migrate the company from Cyprus to The UK and that was basically as a result that The UK law doesn't admit to our re domiciliation process and therefore we need to incorporate that UK entity and that UK entity would make an offer to buy all the shares of the secret entity And that offer will trigger some taxes in Spain to all the shareholders of ATALAYA MINING PLC. But again, this is why the reason why we call off the process of migrating the company from Cyprus to The UK. And there is no question on that. But migrating the company from Cyprus to Spain has no tax issues and listing the move up from AIM to the main market has no tax issue. There's no trust for the company, so we don't have any tax issue for the current project and all the taxes were related to The UK immigration which is now abandoned.

41:27 Okay. What's the relation with with a lawyer a colloider that came to AGM once in London? We invited her to see the dams, and is she now a partner rather than a foe? Well, I think they have kind of forgotten us. They have given up. So far, we have been they always they always complain. Even they complain when we are looking for the permits of toll of of ELIX, but they always try to complain through the administrative process, not anymore through any environmental reason, because really there is no reasons. So I think they kind of we are not a target anymore. What is the current status regarding total project?

42:12 What are the upcoming milestones and any change in view in the probability of receiving the permits in the project? Look. I've been told personally that we will get the permits. So for me, it's a matter of when, not when. Unfortunately, the timing with politicians and civil servants is very slow. They have had we have had elections in Spain twice, municipal and national, which created kind of uncertainty. The municipal elections made some changes in the in the high level at the at the Junta Galicia, the regional government, because the former president the former minister equivalent to the minister of industry was a candidate for one province and had to leave, and he was substituted by a young lady.

43:15 This lady, I've been we have had contact with her, and she seems to be quite supportive. Simply asked us a little bit of time to get through the file, but told us that everything I've heard was very positive. Milestones. We will expect to receive some news in September of if to see if our project is accepted as a project of strategic interest. If this is the case, the timelines for permitting and lots of other things are are reduced. If that's not accepted, it doesn't mean anything. It simply means that it goes to the normal route. And what's the next milestone is starting to public information of the project.

44:03 In theory, it should be quite straightforward because in the last time we presented the the papers, we had 15 reports received from administration, 13 were positive, and two were questionable. And based on these two, we received a negative environment by declaration. These two departments now are totally positive and they have been explained the changes and they are keen to give a positive report. So I don't see any reason why would be no at all. And so I think the pros the probabilities are extremely high. The timing is is is the difficult part because the antimining groups, anti mining or anti development or anti everything.

44:53 They're also opposing, for example, windmills, even although wind is considered a very environmental friendly generation. They're opposing using the legal the legal the the small corners of the law trying to delay the installation of of parks. They are simply people that are trying to slow things, And this is something that's worrying them, the local administration, because it's just collapsing the collapsing the administration, the the civil servants. So it's something we have to live with and they're in administration, they're putting in place new laws to streamline permitting and hope that they give some some push to this all this permitting, not only to us, to all the the rest of activities.

45:51 I like this one. Your current target to be 1,000,000,001 billion pounds market cap, of course, I maintain it. That's that's the minimum. I don't know why we're not much more. There's another question saying any I think management can do to increase liquidity. Traffic in the Chinese are supportive shareholders, but lack of liquidity keeps shares undervalued. Well, as you know, the Chinese share shareholder has has disappeared now, and and that has been placed in into institutions. So now we only have Trafigura, which is 22%, and it's very passive. And the rest are institutions, but nobody wants to sell.

46:38 I think the liquidity is is all coming from private hands, and once in a while, some higher volumes when some institution wants to buy. Well, we are doing things. We are starting to see investors, family offices in The UK, in Europe, in Switzerland starting September, because I think the moment we create more buyers that are are able to see the value, we the shares will move. Alex, obviously, we are very excited with this. Are there any other process that we can consider investing in? Well, not that I am aware. I mean, this thing of Alex is kind of unique and especially unique for our for our purposes and for our our deposit.

47:35 Is the tailings facility expansion that we are team to progress in as expected and on budget? And for how long will the TSF have capacity? Yes. This is is is progressing normally. It's totally on budget. We we have with the current permits around ten years of space. And having said that, we will soon start the permitting of a new tailings facility downstream of the existing one to to be able to hold more capacity, and it will be installed in a in a valley, narrow valley, which will reduce the CapEx for the future. We that one will not have a rush to get permitted, but certainly will mean a lower a higher capacity for over 150,000,000 tons, and especially a lower capital and operating costs.

48:34 I have I have two other questions that came through mail, which are normally we don't answer, but I will answer them. Total the commentary is the same. Just wondering what has changed in the ground in the last six months. Are we any closer to resolution? What are indicators? And well, yes, I I mentioned that the main change here is is the attitude of the local population. For example, just to give you an idea, the last month we have given we have been given the kind of symbolic prize, symbolic trophy of the gold clam by the Fisherman Association of of of the river mouth of the River Ulla, which is a river that goes under receives the water of Toro, due to the efforts of cleaning the water and transparency and so on. While these same people were some of the people opposing in the past.

49:41 So right now, we are we are considered friends, and we are considered we are doing fantastic job of cleaning the waters of the past, and they don't see us as an enemy at all. This thing is transparent to the to the local authorities. We are sponsoring the the the the football team of Santiago, and they have nice words to us. And we we are asked to be in this this forms of green economy and copper economy with along with people with car factories, which are happen to be Stellantis has a big car factory in Galicia.

50:27 So the fact that we are seen as our company in the for the future, including presentations with the president of the Junta and the the minister, I think is is good. I mean, the relation is fantastic and simply they tell us that simply they are overloaded with papers. That's the only reason of the delays and nothing major. And the last one is LX looks like it's taking longer and costing more. What does it maybe approaching 30,000,000, what will be a good result for for the for second part of the of the year? Well, for me, a good result would be to, as I say, to have some some concentrate going through and demonstrating that the leach is well, as we have seen in the lab and in the pilot plant, having some ingots produced of high purity metals of of zinc and and cathodes of copper produced in my office, show them, tell it, and and and, yes, the it was it's going to cost more, as I said.

51:35 Between our our involvement and things that we have done and support and loans and accounting for everything, probably, yes, approaching the 30,000,000. And the last question I have here, what is ATALAYA ranking as a copper producer in Spain? Obviously, many are not listed. So I think, well, there are not many producing companies now because there used to be one which was Las Cruces, which is First Quantum, but they stopped the production this year. In June, I think they they stopped total production. And the next phase requires a big investment producing around 40,000 tons of copper. The biggest producer is is Sandfire with Matza complex, which produces around 40,000 80,000 tons of copper.

52:27 And then there's a small producer in the North Part of Spain with around 10,000 tons of copper. And lots of other projects, but not big producers anyway. So in Spain, yes, we are the second. Well, I think I don't I don't see any more questions, so I will pass it back to to you. Alberto, Cesar, thank you very much for that. I think you've addressed all those questions from investors. And of course, the company will review all the questions submitted today and will publish those responses on the Investor Me company platform. But just before redirecting investors to provide you their feedback, which is important to the company. Alberto, could I just ask you for a few closing comments? Well, yes. Thank you. And then as usual, thank you for your continued support.

53:14 I like to see the some names in in the questions. We continue to deliver. It's hard because it's a little bit frustrating to see that the share price does not respond and the this last lack of liquidity. Maybe it's it's our fault, but I think it's eventually it will come. I think people still are thinking that the that the electricity prices are still high, and we will continue to having high cost, and we just demonstrate the the opposite. We will continue to perform. We will deliver on what we are doing. This year, we'll end up having some listing of Elix, which is going to be transformational for the company. And, we can also advance total very close to production.

54:01 So we're in a good path, and thank you very much for for your support and being there. I mean, in one side, I hate not having liquidity, but in the other side, I see, well, nobody wants to sell at this prices, so everybody must be happy. So thanks a lot to all of you. Alberto, Sisar, thank you once again for updating investors today. Could I please ask investors not to close this session As 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 moments to complete, but some should 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.