P ROYECTO R IOTINTO A n ew low r is k cop p e r p rod u cer in E u rop e April 2016 January 2016 January 2016 AIM:ATYM / TSX:AYM
Disclaimer The information contained in this document (“Presentation”) has for or purchase any securities and neither this Presentation nor activities; conclusions of economic evaluations; changes in project been prepared by Atalaya Mining Plc (the “Company”) . While the anything contained herein shall form the basis of any contract or parameters as plans continue to be refined; future prices of information contained herein has been prepared in good faith, commitment whatsoever. 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In particular, any estimates or labour disputes and other risks of the mining industry; political implied) as to, or in relation to, the accuracy, reliability or projections or opinions contained herein necessarily involve instability, terrorist attacks, insurrection or war; delays in obtaining completeness of the information in this Presentation, or any significant elements of subjective judgment, analysis and future governmental approvals or financing or in the completion of revision thereof, or of any other written or oral information made assumptions and each recipient should satisfy itself in relation to development or construction activities, as well as those factors or to be made available to any interested party or its advisers and such matters. discussed in the section entitled “Risk Factors” in the Company’s liability therefore is expressly disclaimed. annual information form dated 31 March 2014. This Presentation contains “forward looking information” which Accordingly, neither the Company nor any of its shareholders, may include, but is not limited to, statements with respect to the Although the Company has attempted to identify important directors, officers, agents, employees or advisers take any future financial or operating performance of the Company, its factors that could cause actual actions, events or results to differ responsibility for, or will accept any liability whether direct or subsidiaries and its projects, the future price of metals, the materially from those described in forward looking statements, indirect, express or implied, contractual, tortious, statutory or estimation of ore reserves and resources, the conversion of there may be other factors that cause actions, events or results to otherwise, in respect of, the accuracy or completeness of such estimated resources into reserves, the realisation of ore reserve differ from those anticipated, estimated or intended. Forward information or for any of the opinions contained herein or for any estimates, the timing and amount of estimated future production, looking statements contained herein are made as of the date of errors, omissions or misstatements or for any loss, howsoever costs of production, capital, operating and exploration this Presentation and the Company disclaims any obligation to arising, from the use of this Presentation. expenditures, costs and timing of the development of new update any forward looking statements, whether as a result of deposits, costs and timing of future exploration, requirements for new information, future events or results or otherwise. Neither the issue of this Presentation nor any part of its contents is additional capital, government regulation of mining operations, to be taken as any form of commitment on the part of the There can be no assurance that forward looking statements will environmental risks, reclamation expenses, title disputes or claims, Company to proceed with any transaction. In no circumstances will prove to be accurate, as actual results and future events could limitations of insurance coverage and the timing and possible the Company be responsible for any costs, losses or expenses differ materially from those anticipated in such statements. outcome of pending litigation and regulatory matters. incurred in connection with any appraisal or investigation of the Accordingly, readers should not place undue reliance on forward Company. In furnishing this Presentation, the Company does not Forward looking statements involve known and unknown risks, looking statements. undertake or agree to any obligation to provide the recipient with uncertainties and other factors which may cause the actual results, Certain scientific and technical information contained in this access to any additional information or to update this Presentation performance or achievements of the Company and/or its Presentation is based on or derived from the Company’s technical or to correct any inaccuracies in, or omissions from, this subsidiaries to be materially different from any future results, report entitled “NI 43-101 Technical Report on Atalaya ’s Rio Tinto Presentation which may become apparent. performance or achievements expressed or implied by the forward Copper Project, Huelva Province, Spain” dated February 2013 and looking statements. This Presentation should not be considered as the giving of which is available on the Company’s corporate profile on SEDAR at investment advice by the Company or any of its shareholders, Such factors include, among others, general business, economic, www.sedar.com. directors, officers, agents, employees or advisers. In particular, this competitive, political and social uncertainties; the actual results of Presentation does not constitute an offer or invitation to subscribe current exploration activities; actual results of reclamation AIM:ATYM / TSX:AYM 2
Atalaya Mining Investment highlights Restart project already in commercial production Delivered ahead of schedule Under budget One of the lowest capital intensity copper projects in the world Commercial production achieved without recourse to senior debt Located in a prolific mining jurisdiction in Spain Benefits from established and modern infrastructure Brownfield expansion to increase throughput to 9.5Mtpa 92% complete with commissioning in mid-2016 Proven management team who have repeatedly demonstrated success Mine builders and operators, with expertise in Spain and internationally AIM:ATYM / TSX:AYM 3
Highly competitive cost structure Capital Intensity (US$ / t Annual Copper Production) * $51,434 $46,516 $43,958 $38,976 $28,347 $28,759 $31,013 $24,654 $16,744 $17,494 $17,958 $18,042 $19,269 $19,528 $20,572 $6,391 $10,141 $10,142 $12,187 $12,531 $12,685 $12,774 $12,828 $13,611 $4,100 C1 Copper Cash Costs (US$ / lb) ** $3.41 $2.25 $2.02 $1.82 $1.84 $1.80 $1.64 $1.59 $1.57 $1.39 $1.34 $1.30 $1.26 $1.27 $1.23 $1.14 $1.16 $1.12 $1.00 $1.03 $0.96 $0.92 $0.88 ($0.27) ($5.77) Source: Wood Mackenzie – March 2016 and NI-43.101, Feb 2013 Note : Selected projects based on Wood Mackenzie’s Highly Probable and Probable Projects * Riotinto capital intensity per Atalaya, **Rio Tinto cash costs per Wood Mackenzie AIM:ATYM / TSX:AYM 4
Atalaya positioning vs. copper peers Enterprise Value (US$mm) (1,3) 2017e copper production (kt) (2) Total Resource grade (% Cu) (3) Atalaya $153 Atalaya Atalaya 0.5% 42 Imperial Metals $874 Capstone 0.3% Capstone 98 Thompson Creek Imperial Metals $763 Imperial Metals 61 0.3% Capstone $542 Taseko Copper Mountain 0.3% 45 Copper Mountain $383 Thompson Creek 0.2% Thompson Creek 43 Taseko Taseko $326 Copper Mountain 34 0.2% (4) Central Asia Metals $234 Central Asia Metals Central Asia Metals 0.1% 14 1. As at April 7, 2016 2. Based on Wood Mackenzie 3. Based on Management guidance 4. Based on BMO Equity Research Source: Wood Mackenzie – March 2016, BMO Equity Research and NI-43.101, Feb 2013 AIM:ATYM / TSX:AYM 5
Attractive valuation metrics Net debt / (net debt + mkt. cap) EV / 2017e copper production ($/t) EV / 2017e EBITDA Atalaya Atalaya Atalaya nmf $3,651 1.9x Capstone Thompson Creek Central Asia Metals nmf $5,554 5.4x Capstone 63% Taseko $7,276 Central Asia Metals 5.7x Taseko 67% Copper Mountain $11,188 Imperial Metals 6.2x Imperial Metals 73% Imperial Metals $14,320 Capstone 6.5x Copper Mountain 88% Central Asia Metals $16,699 Taseko 7.7x Thompson Creek 93% Thompson Creek $17,898 Copper Mountain 8.0x Source: Wood Mackenzie – March 2016, BMO Equity Research and NI-43.101, Feb 2013 AIM:ATYM / TSX:AYM 6
Proyecto Riotinto Located in an established mining jurisdiction with infrastructure links RIOTINTO HUELVA SEVILLE Matsa 50 100 km 0 (Trafigura & E-803 Mubadala) Las Cruces Proyecto (First Quantum) Riotinto N-435 A-4 E-1 A-49 Seville A-92 Huelva Atlantic Copper SPAIN Smelter (Freeport McMoRan) N-IV A-4 Proyecto Riotinto Other Mines E-5 City/Town Cádiz Major Roads A-4 Minor Roads AIM:ATYM / TSX:AYM 7
Plan view AIM:ATYM / TSX:AYM 8
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