21 May 2024
Atalaya Mining
Plc.
("Atalaya" and/or the "Company")
Q1 2024 Financial
Results
Good cost control expected
to support performance as copper market
strengthens
Atalaya Mining Plc (LSE: ATYM) is
pleased to announce its unaudited first quarter financial results
for the period ended 31 March 2024 ("Q1 2024" or "the Period")
together with its unaudited condensed consolidated financial
statements.
Highlights
· Copper production of 10.7 kt Cu at cash costs of $2.99/lb and
AISC of $3.17/lb
‒ Good
cost control despite lower production in Q1 2024
· EBITDA of €10.3 million at a realised copper price of
$3.89/lb
‒ Lower operating costs partly offset lower copper
revenues
· Made
further investments in key projects including waste stripping at
San Dionisio
· Strong balance sheet maintained with €36.1 million in net
cash
‒ Negative working capital movements impacted operating cash
flows
· Completed move to Main Market of the London Stock Exchange on
29 April 2024
‒ Re-domiciliation work continues post implementation of new
Cyprus law
Q1 2024 Financial Results Summary
|
Period ended 31 March
|
Unit
|
Q1 2024
|
Q1
2023
|
|
Revenues from operations
|
€k
|
69,938
|
91,171
|
|
Operating costs
|
€k
|
(59,687)
|
(66,766)
|
|
EBITDA
|
€k
|
10,251
|
24,405
|
|
Profit for the period
|
€k
|
1,627
|
11,104
|
|
Basic earnings per share
|
€
cents/share
|
1.5
|
8.1
|
|
Cash flows from operating
activities
|
€k
|
(1,737)
|
12,362
|
|
Cash flows used in investing
activities
|
€k
|
(17,877)
|
(8,811)
|
|
Cash flows from financing
activities
|
€k
|
(16,809)
|
(9,431)
|
|
Net Cash
position(1)
|
€k
|
36,067
|
55,263
|
|
Working capital surplus
|
€k
|
59,608
|
85,336
|
|
Average realised copper price
(excluding QPs closed in the Period)
|
US$/lb
|
3.89
|
4.00
|
|
Cu concentrate produced
|
tonnes
|
52,684
|
57,670
|
|
Cu production
|
tonnes
|
10,666
|
12,139
|
|
Cash costs
|
US$/lb
payable
|
2.99
|
2.88
|
|
All-In Sustaining Cost ("AISC")
|
US$/lb
payable
|
3.17
|
3.12
|
(1) Includes restricted cash and bank borrowings
at 31 March 2024 and 31 March 2023.
Alberto Lavandeira, CEO, commented:
"Naturally, our revenues reflected our copper production for
the quarter and while lower than recent periods, we expect copper
grades to improve in the coming quarters. Positively, our cost
control was good and helped to support EBITDA in Q1 2024, and our
net cash position remains strong. Waste stripping activities are
also advancing at San Dionisio, which is expected to provide
Riotinto with higher grade material in the coming years.
The positive developments in the copper price have been
pleasing to observe in recent weeks. Global demand remains
supported by solid economic activity and strong investment in
renewables, new technologies and domestic supply chains. On the
supply side, challenges remain in the largest copper producing
regions.
Few new large sources of supply are expected in the coming
years as a result of permitting and execution challenges,
discipline by key producers and a preference for buying production
capacity rather than building it, as highlighted by recent
corporate activity.
Atalaya is well-positioned thanks to its pipeline of growth
projects that are located in regions with high quality
infrastructure and long mining histories. Our key projects
including Touro and those around Riotinto are expected to have low
capital intensities and could come onstream much quicker than the
mega projects being pursued by peers."
Investor Presentation Reminder
Alberto Lavandeira (CEO) and César
Sánchez (CFO) will be holding a live presentation relating to the
Q1 2024 Financial Results via the Investor Meet Company platform at
11:00am BST today.
To register, please visit the
following link and click "Add to Meet" Atalaya via:
https://www.investormeetcompany.com/atalaya-mining-plc/register-investor
Management will also answer
questions that have been submitted via the Investor Meet Company
dashboard.
Q1 2024 Operating Results Summary
|
Units expressed in accordance with the international system
of units (SI)
|
Unit
|
Q1 2024
|
Q1
2023
|
|
Ore mined
|
t
|
3,701,828
|
3,421,556
|
|
Waste mined
|
t
|
5,539,677
|
6,516,903
|
|
Ore processed
|
t
|
3,740,093
|
3,723,853
|
|
Copper ore grade
|
%
|
0.34
|
0.38
|
|
Copper concentrate grade
|
%
|
20.25
|
21.05
|
|
Copper recovery rate
|
%
|
84.74
|
86.88
|
|
Copper concentrate
|
t
|
52,684
|
57,670
|
|
Copper contained in
concentrate
|
t
|
10,666
|
12,139
|
|
Payable copper contained in
concentrate
|
t
|
10,139
|
11,563
|
|
Cash cost
|
US$/lb
payable
|
2.99
|
2.88
|
|
All-in sustaining cost
|
US$/lb
payable
|
3.17
|
3.12
|
Mining
Ore mined was 3.7 million tonnes
in Q1 2024 (Q1 2023: 3.4 million tonnes).
Waste mined was 5.5 million
tonnes in Q1 2024 (Q1 2023: 6.5 million tonnes). Separately, waste
stripping activities advanced at the San Dionisio
area.
Processing
The plant processed ore
of 3.7 million tonnes during Q1 2024 (Q1 2023: 3.7
million tonnes). Throughput in Q1 2024 included the scheduling of
two plant shutdowns, one for maintenance and the other for
connecting the 50 MW solar plant to the substation.
Copper grade was 0.34% in Q1
2024 (Q1 2023: 0.38%). The lower copper grade in Q1
2024 was mainly the result of pit sequencing and also due to
rainfall which prevented access to higher grade areas of the Cerro
Colorado pit.
Copper recovery was 84.74% in Q1
2024 (Q1 2023: 86.88%) due to lower grades being
processed.
Production
Copper production was
10,666 tonnes in Q1 2024 (Q1 2023: 12,139 tonnes). Lower
production in Q1 2024 was mainly the result of lower grades and
recoveries.
On-site copper concentrate
inventories at the end of Q1 2024 were approximately 8,283
tonnes.
Copper contained in concentrates
sold was 10,286 tonnes in Q1 2024 (Q1 2023: 12,501
tonnes).
Cash Costs and AISC Breakdown
|
$/lb Cu payable
|
Q1 2024
|
Q1
2023
|
|
Mining
|
0.99
|
0.83
|
|
Processing
|
0.91
|
0.97
|
|
Other site operating
costs
|
0.67
|
0.52
|
|
Total site operating
costs
|
2.57
|
2.32
|
|
By-product credits
|
(0.14)
|
(0.09)
|
|
Freight, treatment charges and other
offsite costs
|
0.56
|
0.65
|
|
Total offsite costs
|
0.42
|
0.56
|
|
Cash costs
|
2.99
|
2.88
|
|
|
|
|
|
Cash costs
|
2.99
|
2.88
|
|
Corporate costs
|
0.09
|
0.07
|
|
Sustaining capital (excluding
one-off tailings expansion)
|
0.02
|
0.01
|
|
Capitalised stripping
costs
|
-
|
0.08
|
|
Other costs
|
0.07
|
0.08
|
|
AISC
|
3.17
|
3.12
|
Note: Some figures may not add up due to
rounding.
Cash costs were $2.99/lb payable
copper in Q1 2024 (Q1 2023: $2.88/lb), with the increase mainly due
to lower copper production, partly offset by lower offsite
costs.
AISC were $3.17/lb payable copper
in Q1 2024 (Q1 2023: $3.12/lb). Lower capitalised stripping costs
at Cerro Colorado helped to offset higher cash costs and corporate
costs. AISC excludes one-off investments in the tailings dam
(consistent with prior reporting) and waste stripping at the San
Dionisio area.
Q1 2024 Financial Results Highlights
Income Statement
Revenues were €69.9 million in Q1
2024 (Q1 2023: €91.2 million). Lower revenues were the result of
lower copper concentrate sales and lower realised copper
prices.
Operating costs were €59.7 million
in Q1 2024 (Q1 2023: €66.8 million). Lower operating costs were
mainly the result of lower sales volume and lower electricity
prices.
EBITDA was €10.3 million in Q1
2024 (Q1 2023: €24.4 million). Lower EBITDA resulted from lower
revenues, partly offset by lower operating costs.
Profit after tax was €1.6 million
in Q1 2024 (Q1 2023: €11.1 million) or 1.5 cents basic earnings per
share (Q1 2023: 8.1 cents). Lower profits were impacted by the same
factors as EBITDA and higher depreciation, partly offset by a
foreign exchange gain and lower taxes.
Cash Flow Statement
Cash flows from operating
activities before changes in working capital were positive €11.4
million in Q1 2024 (Q1 2023: positive €24.1 million) and net cash
from operating activities was negative €1.7 million (Q1 2023:
positive €12.4 million).
Cash flows used in investing
activities were €17.9 million in Q1 2024 (Q1 2023: €8.8 million).
Key investments in Q1 2024 included €0.4 million in sustaining
capex (Q1 2023: €0.3 million), nil in capitalised stripping at
Cerro Colorado (Q1 2023: €1.9 million), €8.2 million related to the
San Dionisio area (Q1 2023: nil), €2.3 million to extend the
tailings dam (Q1 2023: €2.3 million), €0.7 million for the 50 MW
solar plant (Q1 2023: €1.6 million) and €6.3 million for the E-LIX
Phase I Plant (Q1 2023: €3.3 million) including ramp-up
costs.
Cash flows from financing
activities were negative €16.8 million in Q1 2024 (Q1 2023:
negative €9.4 million) due to repayments made under the Company's
credit facilities.
Balance Sheet
The Company's balance sheet
remains strong with consolidated cash and cash equivalents
of €86.2 million as at 31 March 2024. Net of current
and non-current borrowings of €50.1 million, net cash
was €36.1 million as at 31 March 2024, compared
with €54.3 million as at 31 December 2023 with
the decrease in cash being the result of lower copper sales and
higher investment in the Company's capital projects.
Inventories of concentrate valued
at cost were €8.8 million at 31 March 2024 (31 December 2023: €8.4
million). The total working capital surplus was €59.6 million at 31
March 2024 (31 December 2023: €68.6 million).
Outlook for 2024
Copper production in Q1 2024 was
impacted by lower copper grades and recoveries. Guidance for FY2024
of 51,000 - 53,000 tonnes is unchanged due to the expectation of
higher copper grades in the coming quarters and will be reviewed on
an ongoing basis.
Guidance for FY2024 cash costs and
AISC are $2.80 - 3.00/lb and $3.00 - 3.20/lb copper payable,
respectively. AISC excludes one-off investments in the tailings dam
and ongoing waste stripping at the San Dionisio area.
Corporate Activities Update
Move to the Main Market
On 29 April 2024, the Company
announced the admission of its ordinary shares to the premium
listing segment of the Official List maintained by the FCA and to
trading on London Stock Exchange's main market for listed
securities, along with the cancellation of trading on
AIM.
The move up marks a significant
corporate milestone for Atalaya and reflects the Company's desire
to expand its investor base and continue its growth
trajectory.
Photo 1: London Stock Exchange Market Open
Ceremony
Re-domiciliation
On 12 December 2023, the Company
held an Extraordinary General Meeting in relation to its intention
to re-domicile the Company by transferring its registered office
from the Republic of Cyprus to the Kingdom of Spain. All
resolutions were approved by the Company's shareholders.
On 15 March 2024, a new law
related to cross-border reorganisations entered into force in
Cyprus, thereby amending the Cyprus Companies Law by setting
out new procedural requirements in connection with cross-border
conversions of Cypriot companies into another EU jurisdiction. The
Company has concluded that it will need to follow the new
procedures in order to complete the re-domiciliation.
As part of the new law, the
Company is required to publish a report that analyses the
implications of the cross-border conversion for its shareholders
and employees ("Cross-Border Conversion Report"). The Cross-Border
Conversion Report is now available on the Company's website
at www.atalayamining.com/investors/other-documents/.
The Company will seek the
shareholder approvals required to implement the new procedures at
its 2024 Annual General Meeting on 27 June 2024. Assuming
all necessary approvals are obtained, the Company expects that it
could complete the re-domiciliation procedures in Q4
2024. Further updates on the process will be
provided by the Company in due course.
Asset Portfolio Update
Proyecto Riotinto
In 2023, the Company was granted a
substantial modification to the existing Unified Environmental
Authorisation (or in Spanish, Autorización Ambiental Unificada
("AAU")) for Proyecto Riotinto by the Junta de Andalucía. The AAU
allows for the expansion of tailings capacity and the mine
footprint at Riotinto and represents an important step towards
developing regional deposits such as San Dionisio and San
Antonio.
The Company is advancing the
permitting process associated with the San Dionisio final pit,
which represents a key component of the integrated mine plan
outlined in the 2023 Riotinto PEA. Waste stripping is underway in
order to prepare the area for future mining phases, with 4.6
million tonnes of waste mined in Q1 2024. Additional mining
equipment is expected to arrive on site in Q2 2024.
At San Antonio, preparations are
underway to begin an infill and step-out drilling
programme.
E-LIX Phase I Plant
Final construction activities are
underway at the E-LIX Phase I plant. Following the production of
initial copper cathodes and zinc precipitate, commissioning and
ramp-up is expected to continue throughout Q2 2024.
Once fully operational, the E-LIX
plant is expected to produce high-purity copper or zinc metals on
site, allowing the Company to potentially achieve higher metal
recoveries from complex polymetallic ores, lower transportation and
concentrate treatment charges and a reduced carbon
footprint.
50 MW Solar Plant
Construction activities are
advancing at the 50 MW solar plant at Riotinto, however, the
Company's contractor has given notice of further delays and now
expects completion in late 2024.
The Company is evaluating further
measures that could mitigate the financial impact of a future
increase in market electricity prices until the 50 MW solar plant
is fully completed. So far in 2024, market electricity prices have
been below long term averages in Spain, therefore the construction
delay has not had a material impact on the Company's operating
costs.
Once fully operational, the 50 MW
solar plant is expected to provide approximately 22% of Riotinto's
current electricity needs. Together, the 50 MW solar plant and
10-year PPA will provide over 50% of the Company's current
electricity requirements at a rate well below historical prices in
Spain.
Riotinto District - Proyecto Masa Valverde
("PMV")
In 2023, the Company was granted
the AAU and exploitation permit for PMV. As a result, various
workstreams continue including geotechnical and sterilisation
drilling to support design work associated with a future ramp and
ventilation shaft. At this stage, the Company expects to start
construction of the access ramp by the end of 2024.
Two core rigs are active and
focused on step-out drilling at the Mojarra Trend and the Masa
Valverde deposit.
Proyecto Touro
Atalaya remains fully committed to
the development of the Touro copper project, which has the
potential to provide substantial benefits to Galicia and also
support the European Union's critical raw materials
mandate.
Touro has the potential to become
a new source of copper production for Europe. As such, the project
could also be granted "Strategic Project" status by the EU, which
can be awarded to projects "based on their contribution to the
security of supply of strategic raw materials, their technical
feasibility, sustainability and social standards", as part of the
Critical Raw Materials Act. Copper was added to the list of
"Strategic Raw Materials" owing to its importance for strategic
sectors and technologies and due to the supply-demand imbalance
that is expected in the near future.
Running parallel with the ongoing
Touro permitting process, the Company continues to focus on
numerous initiatives related to the social licence, including
engaging with the many stakeholders in the region to provide
detailed information on the new and improved project design.
Positive and favourable feedback from numerous meetings with
municipalities, farmers and fishermen associations and other
industries indicate meaningful support towards the development of a
new and modern mining project.
The Company continues to
successfully restore the water quality of the rivers around Touro
and is operating its water treatment plant, which is addressing the
legacy issues associated with acid water runoff from the historical
mine, which closed in 1987. The field-work carried out by Atalaya
has resulted in an immediate and visible improvement of the water
systems surrounding the project, with the progress being recognised
by local stakeholders and the media.
Atalaya continues to be confident
that its approach to Touro, which includes fully plastic lined
thickened tailings with zero discharge, is consistent with
international best practice and will satisfy the most stringent
environmental conditions that may be imposed by the authorities
prior to the development of the project.
Proyecto Ossa Morena
Drilling continued to progress
with one rig at the Guijarro-Chaparral gold-copper project and the
La Hinchona copper-gold project, both in the central part of the
district. Drilling is expected to resume at the flagship
Alconchel-Pallares copper-gold project during Q2 2024.
Proyecto Riotinto East
In Q2 2024, drill testing will
begin at priority anomalies identified via SkyTEM and AGG
surveys.
This announcement contains information which, prior to its
publication constituted inside information for the purposes of
Article 7 of Regulation (EU) No 596/2014.
Contacts:
|
SEC Newgate UK
|
Elisabeth Cowell / Tom Carnegie /
Matthew Elliott
|
+44 20
3757 6882
|
|
Atalaya Mining
|
Michael Rechsteiner
|
+34 959
59 28 50
|
|
Canaccord Genuity
(Joint Broker)
|
James Asensio / George
Grainger
|
+44 20
7523 8000
|
|
BMO Capital Markets
(Joint Broker)
|
Tom Rider / Andrew
Cameron
|
+44 20
7236 1010
|
|
Peel Hunt LLP
(Joint Broker)
|
Ross Allister / David
McKeown
|
+44 20
7418 8900
|
About Atalaya Mining Plc
Atalaya is a European copper
producer that owns and operates the Proyecto Riotinto complex in
southwest Spain. Atalaya's shares trade on the London Stock
Exchange's Main Market (Premium Segment) under the symbol
"ATYM".
Atalaya's operations include the
Cerro Colorado open pit mine and a modern 15 Mtpa processing plant,
which has the potential to become a central processing hub for ore
sourced from its wholly owned regional projects around Riotinto,
such as Proyecto Masa Valverde and Proyecto Riotinto East. In
addition, Atalaya has a phased earn-in agreement for up to 80%
ownership of Proyecto Touro, a brownfield copper project in the
northwest of Spain, as well as a 99.9% interest in Proyecto Ossa
Morena. For further information, please visit
www.atalayamining.com
ATALAYA MINING
PLC
MANAGEMENT'S REVIEW
AND
UNAUDITED INTERIM CONDENSED
CONSOLIDATED
FINANCIAL
STATEMENTS
31 March
2024
Notice to Reader
The accompanying unaudited interim
condensed consolidated financial statements of Atalaya Mining Plc
have been prepared by and are the responsibility of Atalaya Mining
Plc's management.
Introduction
This report provides an overview
and analysis of the financial results of operations of Atalaya
Mining Plc and its subsidiaries ("Atalaya" and/or "Group"), to
enable the reader to assess material changes in the financial
position between 31 December 2023 and 31 March 2024 and results of
operations for the three months ended 31 March 2024 and
2023.
This report has been prepared as
of 20 May 2024. The analysis, hereby
included, is intended to supplement and complement the unaudited
interim condensed consolidated financial statements and notes
thereto ("Financial Statements") as at and for the period ended 31
March 2024. The reader should review the Financial Statements in
conjunction with the review of this report and with the audited,
consolidated financial statements for the year ended 31 December
2023. These documents can be found on Atalaya's website at
www.atalayamining.com.
Atalaya prepares its Annual
Financial Statements in accordance with International Financial
Reporting Standards ("IFRS") as adopted by EU and its Unaudited
Interim Condensed Consolidated Financial Statements in accordance
with International Accounting Standards 34: Interim Financial
Reporting. The currency referred to in this document is the Euro,
unless otherwise specified.
Forward-looking statements
This report may include certain
"forward-looking statements" and "forward-looking information"
under applicable securities laws. Except for statements of
historical fact, certain information contained herein constitute
forward-looking statements. Forward-looking statements are
frequently characterised by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate", and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made, and are based on a number of assumptions and subject to a
variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those
projected in the forward-looking statements. Assumptions upon which
such forward-looking statements are based include that all required
third party regulatory and governmental approvals will be obtained.
Many of these assumptions are based on factors and events that are
not within the control of Atalaya and there is no assurance they
will prove to be correct. Factors that could cause actual results
to vary materially from results anticipated by such forward-looking
statements include changes in market conditions and other risk
factors discussed or referred to in this report and other documents
filed with the applicable securities regulatory authorities.
Although Atalaya has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be
anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Atalaya undertakes no obligation to
update forward-looking statements if circumstances or management's
estimates or opinions should change except as required by
applicable securities laws. The reader is cautioned not to place
undue reliance on forward-looking statements.
1. Incorporation and
description of the Business
Atalaya Mining Plc (the
"Company") was incorporated in Cyprus on
17 September 2004 as a private company with limited liability under
the Companies Law, Cap. 113 and was converted to a public limited
liability company on 26 January 2005. Its registered office is at 1
Lampousa Street, Nicosia, Cyprus.
The Company was first listed on the
Alternative Investment Market (AIM) of the London Stock Exchange in
May 2005, trading under the symbol ATYM. On 29 April 2024, the
Company was admitted to the premium listing segment of the Official
List maintained by the FCA and to trading on the main market of the
London Stock Exchange.
Atalaya is a European mining and
development company. The strategy is to
evaluate and prioritise metal production opportunities in several
jurisdictions throughout the well-known belts of base and precious
metal mineralisation in Spain, elsewhere in Europe and Latin
America.
The Group has interests in four
mining projects: Proyecto Riotinto, Proyecto Touro, Proyecto Masa
Valverde and Proyecto Ossa Morena. In addition, the Group has an
earn-in agreement to acquire two investigation permits at Proyecto
Riotinto East.
Proyecto Riotinto
The Company owns and operates
through a wholly owned subsidiary, "Proyecto Riotinto", an open-pit
copper mine located in the Iberian Pyrite Belt, in the Andalusia
region of Spain, approximately 65 km northwest of Seville. A
brownfield expansion of this mine was completed in 2019 and
successfully commissioned by Q1 2020.
Proyecto Touro
The Group has an initial 10% stake
in Cobre San Rafael, S.L., the owner of Proyecto Touro, as part of
an earn-in agreement which will enable the Group to acquire up to
80% of the copper project. Proyecto Touro is located in Galicia,
north-west Spain. Proyecto Touro is currently in the permitting
process.
In November 2019, Atalaya executed
the option to acquire 12.5% of Explotaciones Gallegas del Cobre,
S.L. the exploration property around Touro, with known additional
reserves, which will provide high potential to the Proyecto
Touro.
Proyecto Masa Valverde
On 21 October 2020, the Company
announced that it entered into a definitive purchase agreement to
acquire 100% of the shares of Cambridge Mineria España, S.L. (since
renamed Atalaya Masa Valverde, S.L.U.), a Spanish company which
fully owns the Masa Valverde polymetallic project located in Huelva
(Spain). Under the terms of the agreement Atalaya will make an
aggregate €1.4 million cash payment in two instalments of
approximately the same amount. The first payment is to be executed
once the project is permitted and second and final payment when
first production is achieved from the concession.
In November 2023, the exploitation
permit for the Masa Valverde and Majadales deposits was officially
granted.
Proyecto Ossa Morena
In December 2021, Atalaya announced
the acquisition of a 51% interest in Rio Narcea Nickel, S.L., which
owns 9 investigation permits. The acquisition also provided a 100%
interest in three investigation permits that are also located along
the Ossa- Morena Metallogenic Belt. In Q3 2022, Atalaya increased
its ownership interest in POM to 99.9%, up from 51%, following
completion of a capital increase that will fund exploration
activities. During 2022 Atalaya rejected 8 investigation
permits.
Atalaya will pay a total of €2.5
million in cash in three instalments and grant a 1% net smelter
return ("NSR") royalty over all acquired permits. The first payment
of €0.5 million will be made following execution of the purchase
agreement. The second and third instalments of €1 million each will
be made once the environmental impact statement ("EIS") and the
final mining permits for any project within any of the
investigation permits acquired under the Transaction are
secured.
Proyecto Riotinto East
In December 2020, Atalaya entered
into a Memorandum of Understanding with a local private Spanish
company to acquire a 100% beneficial interest in two investigation
permits (known as Peñas Blancas and Cerro Negro investigation
permits), which are located immediately to the east of Proyecto
Riotinto.
2. Overview of Operational
Results
Proyecto
Riotinto
The following table presents a
summarised statement of operations of Proyecto Riotinto for the
three months ended 31 March 2024 and 2023, respectively.
|
Units expressed in accordance with the international system
of units (SI)
|
Unit
|
Three month period ended 31
Mar 2024
|
Three
month period ended 31 Mar 2023
|
|
Ore mined
|
t
|
3,701,828
|
3,421,556
|
|
Waste mined
|
t
|
5,539,677
|
6,516,903
|
|
Ore processed
|
t
|
3,740,093
|
3,723,853
|
|
Copper ore grade
|
%
|
0.34
|
0.38
|
|
Copper concentrate grade
|
%
|
20.25
|
21.05
|
|
Copper recovery rate
|
%
|
84.74
|
86.88
|
|
Copper concentrate
|
t
|
52,684
|
57,670
|
|
Copper contained in
concentrate
|
t
|
10,666
|
12,139
|
|
Payable copper contained in
concentrate
|
t
|
10,139
|
11,563
|
|
Cash cost*
|
US$/lb
payable
|
2.99
|
2.88
|
|
All-in sustaining cost*
|
US$/lb
payable
|
3.17
|
3.12
|
|
|
|
|
|
(*) Refer Section 5 of this Management
Review.
There may be slight differences
between the numbers in the above table and the figures announced in
the quarterly operations updates that are available on Atalaya's
website at www.atalayamining.com
|
$/lb Cu payable
|
Q1 2024
|
Q1
2023
|
|
Mining
|
0.99
|
0.83
|
|
Processing
|
0.91
|
0.97
|
|
Other site operating
costs
|
0.67
|
0.52
|
|
Total site operating
costs
|
2.57
|
2.32
|
|
By-product credits
|
(0.14)
|
(0.09)
|
|
Freight, treatment charges and other
offsite costs
|
0.56
|
0.65
|
|
Total offsite costs
|
0.42
|
0.56
|
|
Cash costs
|
2.99
|
2.88
|
|
|
|
|
|
Cash costs
|
2.99
|
2.88
|
|
Corporate costs
|
0.09
|
0.07
|
|
Sustaining capital (excluding
one-off tailings expansion)
|
0.02
|
0.01
|
|
Capitalised stripping
costs
|
-
|
0.08
|
|
Other costs
|
0.07
|
0.08
|
|
AISC
|
3.17
|
3.12
|
Note: Some figures may not add up due to
rounding.
Three months operational review
Mining
Ore mined was 3.7 million tonnes
in Q1 2024 (Q1 2023: 3.4 million tonnes), compared with 3.7 million
tonnes in Q4 2023.
Waste mined was 5.5
million tonnes in Q1 2024 (Q1 2023: 6.5 million
tonnes), compared with 7.4 million tonnes in Q4 2023. Separately,
waste stripping activities advanced at the San Dionisio
area.
Processing
The plant processed 3.7 million
tonnes of ore in Q1 2024 (Q1 2023: 3.7 million tonnes) compared to
4.1 million tonnes in Q4 2023. Throughput was impacted by the
scheduling of two plant shutdowns, one for maintenance and the
other for the connection of the 50 MW solar plant to the
substation.
Copper grade in Q1 2024 was 0.34%
(Q1 2023: 0.38%) compared to 0.36% in Q4 2023. The lower copper
grade in Q1 2024 was mainly due to pit sequencing and also rainfall
which prevented access to higher grade areas of the Cerro Colorado
pit.
Copper recovery was 84.74% in Q1
2024 (Q1 2023: 86.88%), compared with 85.47% in Q4 2023, due to
lower grades being processed.
Production
Copper production was
10,666 tonnes in Q1 2024 (Q1 2023: 12,139
tonnes), compared with 12,775 tonnes in Q4 2023. Lower production
in Q1 2024 was mainly the result of lower grades and
recoveries.
On-site copper concentrate
inventories at the end of Q1 2024 were approximately 8,283
tonnes.
Copper contained in concentrates
sold was 10,286 tonnes in Q1 2024 (Q1 2023: 12,501
tonnes).
3. Outlook
The forward-looking information contained in this section is
subject to the risk factors and assumptions contained in the
cautionary statement on forward-looking statements included in the
Basis of Reporting. Should the Company consider the current
guidance no longer achievable, then the Company will provide a
further update.
Operational guidance
Guidance for Proyecto Riotinto is unchanged from
the previously announced outlook.
|
|
Unit
|
Guidance
2024
|
|
Ore mined
|
million
tonnes
|
~19
|
|
Waste mined
|
million
tonnes
|
~25
|
|
Ore processed
|
million
tonnes
|
15.3 -
15.8
|
|
Copper ore grade
|
%
|
0.39 -
0.41
|
|
Copper recovery rate
|
%
|
84 - 86
|
|
Contained copper
|
tonnes
|
51,000 -
53,000
|
|
Cash costs
|
$/lb
payable
|
2.80 -
3.00
|
|
All-in sustaining cost
|
$/lb
payable
|
3.00 -
3.20
|
Production
Copper production in Q1 2024 was
impacted by lower copper grades and recoveries. Guidance for FY2024
of 51,000 - 53,000 tonnes is unchanged due to the expectation of
higher copper grades in the coming quarters and will be reviewed on
an ongoing basis.
Operating Costs
Operating cost guidance for FY2024
are a cash cost range of $2.80 - 3.00/lb copper payable and an AISC
range of $3.00 - 3.20/lb copper payable. AISC excludes one-off
investments in the tailings dam (consistent with prior reporting)
and waste stripping at the San Dionisio area, which are included in
capital expenditure guidance below.
Capital Expenditures
Non-sustaining capital expenditure
guidance for FY2024 is €64 - 73 million. This includes €4 - 5
million for completion of the 50 MW solar plant, €5 - 7 million for
completion and ramp-up of the E-LIX Phase I Plant, €42 - 46 million
for San Dionisio waste stripping, dewatering and road relocation
and €13 - 15 million for expansion of the existing Riotinto
tailings facility.
Exploration
Atalaya's exploration guidance for
FY2024 is €5 - 7 million.
4. Overview of the Financial
Results
The following table presents
summarised consolidated income statements for the three months
ended 31 March 2024, with comparatives for the three months ended
31 March 2023.
|
(Euro
000's)
|
Three month period ended 31
Mar 2024
|
Three
month period ended 31 Mar 2023
|
|
|
|
|
|
Revenues
|
69,938
|
91,171
|
|
Costs of sales
|
(56,757)
|
(63,003)
|
|
Administrative and other
expenses
|
(1,927)
|
(2,033)
|
|
Exploration expenses
|
(855)
|
(1,533)
|
|
Care and maintenance
expenditure
|
(432)
|
(295)
|
|
Other income
|
284
|
98
|
|
EBITDA
|
10,251
|
24,405
|
|
Depreciation/amortisation
|
(9,606)
|
(8,762)
|
|
Net foreign exchange
gain/(loss)
|
1,571
|
(1,222)
|
|
Net finance cost
|
(90)
|
(844)
|
|
Tax
|
(499)
|
(2,473)
|
|
Profit for the period
|
1,627
|
11,104
|
Three months financial review
Revenues for the three-month
period ended 31 March 2024 amounted to €69.9 million (Q1 2023:
€91.2 million). Lower revenues are mainly due to a lower in copper
concentrate volume sold and lower realised copper
prices.
Realised prices excluding QPs were
US$3.89/lb copper during Q1 2024 compared with $4.00/lb copper in
Q1 2023. The realised price, including QPs were approximately
$3.79/lb during the quarter ($3.94/lb in Q1 2023).
Cost of sales for the three-month
period ended 31 March 2024 amounted to €56.8 million, compared with
€63.0 million in Q1 2023. Lower costs
primarily attributable to lower sales volume and reduced
electricity prices.
Cash costs of $2.99/lb payable
copper during Q1 2024 compared with $2.88lb payable copper in the
same period last year. Higher cash costs mainly due to lower copper
production in the quarter, combined with a weaker USD Dollar/Euro
exchange rate compared to Q1 2023. AISC excluding investment in
tailings dam expansion and San Dionisio stripping for Q1 2024 were
$3.17/lb payable copper compared to $3.12/lb payable copper in Q1
2023. The increase was primarily due to higher cash
costs.
Sustaining capex for Q1 2024
amounted to €0.4 million compared with €0.3 million in Q1 2023.
Sustaining capex was mainly related to continuous enhancements in
the processing systems of the plant. In addition, the Company
invested €2.3 million in the project to increase the tailings dam
during Q1 2024.
Capex associated with the
construction of the 50 MW solar plant amounted to €0.7 million in
Q1 2024, while investments in the E-LIX Phase I plant,
commissioning and ramp-up totalled €6.3 million. Additionally, a
capex of €8.2 million is related to the San Dionisio
area.
Administrative and other expenses
amounted to €1.9 million (Q1 2023: €2.0 million) and include
non-operating costs of the Cyprus office, corporate legal and
consultancy costs, on-going listing costs, officers and directors'
emoluments, and salaries and related costs of the corporate
office.
Exploration costs for the
three-month period ended 31 March 2024 amounted to €0.9 million,
lower than Q1 2023 (€1.5 million).
EBITDA for the three months ended
31 March 2024 amounted to €10.3 million compared with Q1 2023 of
€24.5 million. The lower EBITDA was due to the decline in sales as
explained above, partially offset by a reduction in cost of
sales.
The main item below the EBITDA
line is depreciation and amortisation of €9.6 million (Q1 2023:
€8.8 million).
Net foreign exchange differences
have a positive impact due to the weaker US Dollar/Euro rate at the
end of Q1 2024 compared with the beginning of the
quarter.
Net financing costs for Q1 2024
amounted to €0.1 million compared with €0.8 million in Q1
2023.
Copper prices
The average realised copper price
(excluding QPs) decreased 3% from US$4.00
per pound in Q1 2023 to US$3.89 per pound
in Q1 2024.
The average prices of copper for
the three months ended 31 March 2024 and 2023 are summarised
below:
|
$/lb
|
Three month period ended 31
Mar 2024
|
Three
month period ended 31 Mar 2023
|
|
Realised copper price excluding QPs
closed
|
3.89
|
4.00
|
|
Market copper price per lb (period
average)
|
3.94
|
4.05
|
Realised copper prices for the
reporting period noted above have been calculated using payable
copper and excluding both provisional invoices and final
settlements of quotation periods ("QPs") together. The realised
price during the year, including the QP, was approximately
$3.79/lb.
5. Non-GAAP
Measures
Atalaya has included certain
non-IFRS measures including "EBITDA", "Cash Cost per pound of
payable copper", "All-In Sustaining Costs" ("AISC") "realised
prices" and "Net Cash/Debt" in this report. Non-IFRS measures do
not have any standardised meaning prescribed under IFRS, and
therefore they may not be comparable to similar measures presented
by other companies. These measures are intended to provide
additional information and should not be considered in isolation or
as a substitute for indicators prepared in accordance with
IFRS.
EBITDA includes gross sales net of
penalties and discounts and all operating costs, excluding finance,
tax, impairment, depreciation and amortisation expenses.
Cash Cost per pound of payable
copper includes cash operating costs, including treatment and
refining charges ("TC/RC"), freight and distribution costs net of
by-product credits. Cash Cost per pound of payable copper is
consistent with the widely accepted industry standard established
by Wood Mackenzie and is also known as the C1 cash cost.
AISC per pound of payable copper
includes C1 Cash Costs plus royalties and agency fees, expenditures
on rehabilitation, capitalised stripping costs, exploration and
geology costs, corporate costs and recurring sustaining capital
expenditures but excludes one-off sustaining capital projects, such
as the tailings dam project.
Realised price per pound of payable
copper is the value of the copper payable included in the
concentrate produced including the discounts and other features
governed by the offtake agreements of the Group and all discounts
or premiums provided in commodity hedge agreements with financial
institutions if any, expressed in USD per pound of payable copper.
Realised prices do not include period end mark to market
adjustments in respect of provisional pricing Realised price is
consistent with the widely accepted industry standard
definition.
6. Liquidity and Capital
Resources
Atalaya monitors factors that
could impact its liquidity as part of Atalaya's overall capital
management strategy. Factors that are monitored include, but are
not limited to, the market price of copper, foreign currency rates,
production levels, operating costs, capital and administrative
costs.
The following is a summary of
Atalaya's cash position as at 31 March 2024 and 31 December 2023
and cash flows for Q1 2024 and 2023.
Liquidity information
|
(Euro
000's)
|
31 Mar
2024
|
31 Dec
2023
|
|
Unrestricted cash and cash
equivalents at Group level
|
58,895
|
94,868
|
|
Unrestricted cash and cash
equivalents at Operation level
|
27,260
|
26,139
|
|
Consolidated cash and cash equivalents
|
86,155
|
121,007
|
|
Net cash position
(1)
|
36,067
|
54,320
|
|
Working capital surplus
|
59,608
|
68,618
|
|
|
|
|
(1)
Includes
borrowings
Unrestricted cash and cash
equivalents (which include cash at both Group level and Operation
level) as at 31 March 2024 decreased to €86.2 million from €121.0
million at 31 December 2023. The decrease in cash was mainly due to
higher cash outflows from operations, investments and repayment of
financing. Specifically, negative working capital movements offset
cash flows from operations, investments increased due to the
capital expenditure in the San Dionisio area and financing saw
higher outflows due to the repayment of operating facilities. Cash
balances are unrestricted and include balances at operational and
corporate level.
As of 31 March 2024, Atalaya
reported a working capital surplus of €59.6 million, compared with
a working capital surplus of €68.6 million at 31 December 2023. The
decrease in working capital mainly resulted from the repayment of
current payables.
Overview of the Group's cash flows
|
(Euro
000's)
|
Three month period ended 31
Mar 2024
|
Three
month period ended 31 Mar 2023
|
|
Cash flows (used in)/from operating
activities
|
(1,737)
|
12,362
|
|
Cash flows used in investing
activities
|
(17,877)
|
(8,811)
|
|
Cash flows used in financing
activities
|
(16,809)
|
(9,431)
|
|
Net (decrease) in cash and cash
equivalents
|
(36,423)
|
(5,880)
|
|
Net foreign exchange
differences
|
1,571
|
(1,222)
|
|
Total net cash flow for the
period
|
(34,852)
|
(7,102)
|
Three months cash flows review
Cash and cash equivalents were
€86.2 million at 31 March 2024. This was due to the net results of
cash used in operating activities amounting to €1.7 million, the
cash used in investing activities amounting to €17.9 million, the
cash used from financing activities totaling €16.8 million and net
foreign exchange differences of positive €1.6 million.
Cash generated from operating
activities before working capital changes was €11.4 million. Trade
receivables in the period increased by €2.7 million, inventory
levels increased by €2.2 million and trade payables decreased by
€6.2 million.
Investing activities during the
quarter consumed €17.9 million, relating mainly to the tailings
dams project, E-LIX, San Dionisio area and continuous enhancements
in the processing systems of the plant.
Financing activities during the
quarter used €16.8 million driven by repayments of
existing unsecured credit facilities.
Foreign exchange
Foreign exchange rate movements
can have a significant effect on Atalaya's operations, financial
position and results. Atalaya's sales are denominated in U.S.
dollars ("USD"), while Atalaya's operating expenses, income taxes
and other expenses are mainly denominated in Euros ("EUR") which is
the functional currency of the Group, and to a much lesser extent
in British Pounds ("GBP").
Accordingly, fluctuations in the
exchange rates can potentially impact the results of operations and
carrying value of assets and liabilities on the balance
sheet.
During the three months ended 31
March 2024, Atalaya recognised a foreign exchange gain of €1.6
million (€1.2 million foreign exchange loss in Q1 2023). Foreign
exchange gain mainly related to change in the period end EUR and
USD conversion rates, as all sales are cashed and generally held in
USD.
The following table summarises the
movement in key currencies versus the EUR:
|
(Euro
000's)
|
Three month period ended 31
Mar 2024
|
Three
month period ended 31 Mar 2023
|
|
Average rates for the periods
|
|
|
|
GBP - EUR
|
0.8563
|
0.8831
|
|
USD - EUR
|
1.0858
|
1.0730
|
|
Spot rates as at
|
|
|
|
GBP - EUR
|
0.8551
|
0.8792
|
|
USD - EUR
|
1.0811
|
1.0875
|
7.
Sustainability
Corporate Social Responsibility
The first quarter of the year
brings further developments from Atalaya and its wholly owned
Fundación Atalaya Riotinto that continue to work on several actions
to undertake its social responsibilities.
In this regard, the agreements
with near-by municipalities to establish collaboration have been
renewed and will be operative until mid 2027. With such instrument
in place, there are already some agreed initiatives to improve
certain aspects of the towns, with projects that will be funded by
our Foundation Atalaya aiming at activities that will positively
impact social, environmental, and infrastructure issues.
For example, during the quarter,
Atalaya has agreed to fund the construction of a playground in
Nerva, not only aimed at children but also comprising cardio
exercising equipment for adults. Also in Nerva, Atalaya has agreed
to fund the replacement of halogen bulbs for LED in multiple
streets in Nerva town, which will improve the public lighting and
contribute to reduce the carbon footprint of the town. In parallel,
Atalaya keeps developing its own projects, including the Fourth
Atalaya Mining Operators Course for unemployed locals. This program
has entered now its final stage, with students already on board
with the different companies to complete their 200 hrs hands-on
training.
The Foundation is also working in
the development of Riotinto Experience program, which is an
established site tour open to the public that will represent a new
product to attract visitors to the area contributing to
diversification as well as a very effective channel to communicate
the positive impact of modern mining. During the period, Fundación
Atalaya has also agreed to support various initiatives in the
near-by towns, including sporting activities, such as a bicycle
championship that brought more than 400 participants (La Mina Bike
Maraton), and contributions to local sports teams like CD Trail El
Campillo, Campofrío FC, Riotinto Balompié, and Corta Atalaya Golf
Club. It also contributed to cultural initiatives like the Music
School "Julia Hierro" Contest, the Jornadas Micológicas with
Agaricus association and the national Poetry Contest in Riotinto
"Huellas de Cobre". On the social side, Atalaya has contributed to
the activities of Unidos por el Alto association, which works with
disadvantaged local youth.
Health and Safety
The positive trend of 2023 has
continued during the first quarter of 2024. There were 3
accidents with lost time with a 5.08 for the Frequency Index and 0.07 for the Severity
Index.
Annual reports of technical
specialties in occupational risk prevention, the prevention plan,
and the safety and health document accompanying the Work Plan were
prepared, as well as the planning of preventive activity for the
year 2024.
Regarding Industrial Hygiene
measurements, almost all of those planned for the first quarter
were carried out. As for the first intervention brigade, training
for the volunteers of the Brigade in the handling of the basic life
support and a inspection session of the mining facility.
In addition, Atalaya has reviewed
the risks assessment of all jobs in terms of manual handling of
loads, forced postures and repetitive movements to re-evaluate the
ergonomics parameters.
Furthermore, during the quarter
the first meeting of the health and safety committee with the
worker representatives took place and Atalaya updated its internal
procedure for controlling drugs and preventing work under the
influence of psychoactive substances using AI.
Environment
During the first quarter of 2024,
the environmental department has continued executing the actions of
environmental monitoring of the activity and management of the
natural environment. Key points of the quarter:
· During the first quarter of the year, three environmental
incidents were registered. All of them related to spills over
unpaved area. The areas were cleaned, and the waste were handled
properly.
· A
total rainfall of 481.3 l/m2 was recorded in Q1 2024,
which was around 568% more than in the same period of previous
year. The total rain collected for the hydrological year (October
2023 to September 2024) is 787.2 l/m2, which is 131%
more than the rainfall recorded in the previous hydrological year
(same period).
· Upon
expiration of the existing permit, in January 2024, Atalaya was
granted a new temporary permit valid until January 2026 for an
additional 4.1 hm3 per year of fresh water supply for a
total of 6.6 hm3 per year.
· The
additional measures contemplated in the action plan against dust
continued to be implemented, intensifying periodic irrigation,
implementing new coordination measures, and carrying out exhaustive
monitoring of the emissions generated in the operation.
· All
the regular internal controls of diffuse emissions into the
atmosphere have been carried out, and the results of the controls
are within the limit values. However, in January, PST limit was
exceeded at sampling point number 1, and in March, PSD limit was
exceeded in five control points (dust intrusion). In the rest, PSD
and PST limits were met. The remaining periodic and mandatory
controls have been carried out without incidents. In addition,
during the quarter, several reports were handed to the
Administration bodies.
· Environmental inspections were performed daily, mainly
focused on chemical storage and handling, housekeeping, waste
management, uncontrolled releases and environmentally friendly
practices carried out in the project by ARM's and contractors'
personnel. Additionally, dust control and drainage system
inspections were performed regularly. 84 inspections in total were
carried out during the first quarter, including, plant, mine area
and the contractors' camps.
· Environmental inspections were performed daily, mainly
focused on chemical storage and handling, housekeeping, waste
management, uncontrolled releases and environmentally friendly
practices carried out in the project by ARM's and contractors'
personnel. Additionally, dust control and drainage system
inspections were performed regularly. 82 inspections in total were
carried out during the third quarter, including, plant, mine area
and the contractors' camps.
8. Risk
Factors
Due to the nature of Atalaya's
business in the mining industry, the Group is subject to various
risks that could materially impact the future operating results and
could cause actual events to differ materially from those described
in forward-looking statements relating to Atalaya. Readers are
encouraged to read and consider the risk factors detailed in
Atalaya's audited, consolidated financial statements for the year
ended 31 December 2023.
The Company continues to monitor
the principal risks and uncertainties that could materially impact
the Company's results and operations, including the areas of
increasing uncertainty such as inflationary pressure on goods and
services required for the business and geopolitical developments
worldwide.
9. Critical accounting
policies, estimates, judgements, assumptions and accounting
changes
The preparation of Atalaya's
Financial Statements in accordance with IFRS requires management to
make estimates, judgements and assumptions that affect amounts
reported in the Financial Statements and accompanying notes. There
is a full discussion and description of Atalaya's critical
accounting policies in the audited consolidated financial
statements for the year ended 31 December 2023.
As at 31 March 2024, there are no
significant changes in critical accounting policies or estimates to
those applied in 2023.
10. Other Information
Additional information about
Atalaya Mining Plc. is available at www.atalayamining.com
Unaudited interim condensed
consolidated financial statements on subsequent
pages.
By Order of the Board of
Directors,
___________________________________
Roger Davey
Chairman
Nicosia, 20 May 2024
Notes to the Unaudited
Interim Condensed Consolidated Financial
Statements
(All
amounts in Euro thousands unless otherwise stated)
For the
period ended 31 March 2024 and 2023
1. Incorporation and summary of
business
Atalaya Mining Plc (the "Company")
was incorporated in Cyprus on 17 September 2004 as a private
company with limited liability under the Companies Law, Cap. 113
and was converted to a public limited liability company on 26
January 2005. Its registered office is at 1 Lampousa Street,
Nicosia, Cyprus.
The Company was first listed on
the Alternative Investment Market (AIM) of the London Stock
Exchange in May 2005, trading under the symbol ATYM. On 29 April
2024, the Company was admitted to the premium listing segment of
the Official List maintained by the FCA and to trading on the main
market of the London Stock Exchange.
Additional information about
Atalaya Mining Plc is available at www.atalayamining.com.
Change of name and share consolidation
Following the Company's
Extraordinary General Meeting ("EGM") on 13 October 2015, the
change of name from EMED Mining Public Limited to Atalaya Mining
Plc became effective on 21 October 2015. On the same day, the
consolidation of ordinary shares came into effect, whereby all
shareholders received one new ordinary share of nominal value Stg
£0.075 for every 30 existing ordinary shares of nominal value Stg
£0.0025.
Principal activities
Atalaya is a European mining and
development company. The strategy is to evaluate and prioritise
metal production opportunities in several jurisdictions throughout
the well-known belts of base and precious metal mineralisation in
Spain, elsewhere in Europe and Latin America.
The Group has interests in four
mining projects: Proyecto Riotinto, Proyecto Touro, Proyecto Masa
Valverde and Proyecto Ossa Morena. In addition, the Group has an
earn-in agreement to acquire two investigation permits at Proyecto
Riotinto East.
Proyecto Riotinto
The Company owns and operates
through a wholly owned subsidiary, "Proyecto Riotinto", an open-pit
copper mine located in the Iberian Pyrite Belt, in the Andalusia
region of Spain, approximately 65 km northwest of Seville. A
brownfield expansion of this mine was completed in 2019 and
successfully commissioned by Q1 2020.
Proyecto Touro
The Group has an initial 10% stake
in Cobre San Rafael, S.L., the owner of Proyecto Touro, as part of
an earn-in agreement which will enable the Group to acquire up to
80% of the copper project. Proyecto Touro is located in Galicia,
north-west Spain. Proyecto Touro is currently in the permitting
process.
In November 2019, Atalaya executed
the option to acquire 12.5% of Explotaciones Gallegas del Cobre,
S.L. the exploration property around Touro, with known additional
reserves, which will provide high potential to the Proyecto
Touro.
Proyecto Masa Valverde
On 21 October 2020, the Company
announced that it entered into a definitive purchase agreement to
acquire 100% of the shares of Cambridge Mineria España, S.L. (since
renamed Atalaya Masa Valverde, S.L.U.), a Spanish company which
fully owns the Masa Valverde polymetallic project located in Huelva
(Spain). Under the terms of the agreement Atalaya will make an
aggregate €1.4 million cash payment in two instalments of
approximately the same amount. The first payment is to be executed
once the project is permitted and second and final payment when
first production is achieved from the concession.
In November 2023, the exploitation
permits for the Masa Valverde and Majadales deposits was officially
granted.
Proyecto Ossa Morena
In December 2021, Atalaya
announced the acquisition of a 51% interest in Rio Narcea Nickel,
S.L., which owns 9 investigation permits. The acquisition also
provided a 100% interest in three investigation permits that are
also located along the Ossa- Morena Metallogenic Belt. In Q3 2022,
Atalaya increased its ownership interest in POM to 99.9%, up from
51%, following completion of a capital increase that will fund
exploration activities. During 2022 Atalaya rejected 8
investigation permits.
Atalaya will pay a total of €2.5
million in cash in three instalments and grant a 1% net smelter
return ("NSR") royalty over all acquired permits. The first payment
of €0.5 million will be made following execution of the purchase
agreement. The second and third instalments of €1 million each will
be made once the environmental impact statement ("EIS") and the
final mining permits for any project within any of the
investigation permits acquired under the Transaction are
secured.
Proyecto Riotinto East
In December 2020, Atalaya entered
into a Memorandum of Understanding with a local private Spanish
company to acquire a 100% beneficial interest in two investigation
permits (known as Peñas Blancas and Cerro
Negro investigation permits), which are located immediately to the
east of Proyecto Riotinto.
2. Basis of preparation and accounting
policies
2.1 Basis of preparation
(a)
Overview
These condensed interim financial
statements are unaudited.
The unaudited interim condensed
consolidated financial statements for the period ended 31 March
2024 have been prepared in accordance with International Accounting
Standard 34: Interim Financial Reporting. IFRS comprise the
standard issued by the International Accounting Standard Board
("IASB"), and IFRS Interpretations Committee ("IFRICs") as issued
by the IASB. Additionally, the unaudited interim condensed
consolidated financial statements have also been prepared in
accordance with the IFRS as adopted by the European Union (EU),
using the historical cost convention and have been prepared on a
historical cost basis except for the revaluation of certain
financial instruments that are measured at fair value at the end of
each reporting period, as explained below.
These unaudited interim condensed
consolidated financial statements include the financial statements
of the Company and its subsidiary undertakings. They have been
prepared using accounting bases and policies consistent with those
used in the preparation of the consolidated financial statements of
the Company and the Group for the year ended 31 December 2023.
These unaudited interim condensed consolidated financial statements
do not include all the disclosures required for annual financial
statements, and accordingly, should be read in conjunction with the
consolidated financial statements and other information set out in
the Group's annual report for the year ended 31 December
2023.
(b)
Going concern
These unaudited condensed interim
consolidated financial statements have been prepared based on
accounting principles applicable to a going concern which assumes
that the Group will realise its assets and discharge its
liabilities in the normal course of business. Management has
carried out an assessment of the going concern assumption and has
concluded that the Group will generate sufficient cash and cash
equivalents to continue operating for the next twelve
months.
Management continues to monitor the
impact of geopolitical developments. Currently no significant
impact is expected in the operations of the Group.
2.2 New standards, interpretations
and amendments adopted by the Group
The accounting policies adopted in
the preparation of the unaudited condensed interim consolidated
financial statements are consistent with those followed in the
preparation of the Group's annual consolidated financial statements
for the year ended 31 December 2023, except for the adoption of new
standards effective as of 1 January 2024. The Group has not early
adopted any standard, interpretation or amendment that has been
issued but is not yet effective.
Several amendments and
interpretations apply for the first time in 2024, but do not have a
material impact on the unaudited condensed interim consolidated
financial statements of the Group.
IAS 1 Presentation of Financial
Statements: Classification of Liabilities as Current or Non-current
(Amendments)
The amendments are effective for
annual reporting periods beginning on or after January 1, 2024,
with earlier application permitted, and will need to be applied
retrospectively in accordance with IAS 8. The objective of the
amendments is to clarify the principles in IAS 1 for the
classification of liabilities as either current or non-current. The
amendments clarify the meaning of a right to defer settlement, the
requirement for this right to exist at the end of the reporting
period, that management intent does not affect current or
non-current classification, that options by the counterparty that
could result in settlement by the transfer of the entity's own
equity instruments do not affect current or non-current
classification. Also, the amendments specify that only covenants
with which an entity must comply on or before the reporting date
will affect a liability's classification. Additional disclosures
are also required for non-current liabilities arising from loan
arrangements that are subject to covenants to be complied with
within twelve months after the reporting period. The amendments had
no material impact on the Group's unaudited condensed interim
consolidated financial statements.
IFRS 16 Leases: Lease Liability in a
Sale and Leaseback (amendments)
The amendments are effective for
annual reporting periods beginning on or after January 1, 2024,
with earlier application permitted. The amendments are intended to
improve the requirements that a seller-lessee uses in measuring the
lease liability arising in a sale and leaseback transaction in IFRS
16, while it does not change the accounting for leases unrelated to
sale and leaseback transactions. In particular, the seller-lessee
determines 'lease payments' or 'revised lease payments' in such a
way that the seller-lessee would not recognise any amount of the
gain or loss that relates to the right of use it retains. Applying
these requirements does not prevent the seller-lessee from
recognising, in profit or loss, any gain or loss relating to the
partial or full termination of a lease. A seller-lessee applies the
amendment retrospectively in accordance with IAS 8 to sale and
leaseback transactions entered into after the date of initial
application, being the beginning of the annual reporting period in
which an entity first applied IFRS 16. The amendments had no
material impact on the Group's unaudited condensed interim
consolidated financial statements.
IAS 7 Statement of Cash Flows and
IFRS 7 Financial Instruments Disclosure - Supplier Finance
Arrangements (Amendments)
The amendments are effective for
annual reporting periods beginning on or after January 1, 2024,
with earlier application permitted. The amendments supplement
requirements already in IFRS and require an entity to disclose the
terms and conditions of supplier finance arrangements.
Additionally, entities are required to disclose at the beginning
and end of reporting period the carrying amounts of supplier
finance arrangement financial liabilities and the line items in
which those liabilities are presented as well as the carrying
amounts of financial liabilities and line items, for which the
finance providers have already settled the corresponding trade
payables. Entities should also disclose the type and effect of
non-cash changes in the carrying amounts of supplier finance
arrangement financial liabilities, which prevent the carrying
amounts of the financial liabilities from being comparable.
Furthermore, the amendments require an entity to disclose at the
beginning and end of the reporting period the range of payment due
dates for financial liabilities owed to the finance providers and
for comparable trade payables that are not part of those
arrangements. The amendments have not yet been endorsed by the EU.
The amendments had no material impact on the Group's unaudited
condensed interim consolidated financial statements.
IAS 21 The Effects of Changes in
Foreign Exchange Rates: Lack of Exchangeability
(Amendments)
The amendments are effective for
annual reporting periods beginning on or after January 1, 2025,
with earlier application permitted. The amendments specify how an
entity should assess whether a currency is exchangeable and how it
should determine a spot exchange rate when exchangeability is
lacking. A currency is considered to be exchangeable into another
currency when an entity is able to obtain the other currency within
a time frame that allows for a normal administrative delay and
through a market or exchange mechanism in which an exchange
transaction would create enforceable rights and obligations. If a
currency is not exchangeable into another currency, an entity is
required to estimate the spot exchange rate at the measurement
date. An entity's objective in estimating the spot exchange rate is
to reflect the rate at which an orderly exchange transaction would
take place at the measurement date between market participants
under prevailing economic conditions. The amendments note that an
entity can use an observable exchange rate without adjustment or
another estimation technique. The amendments had no material impact
on the Group's unaudited condensed interim consolidated financial
statements.
2.3 Fair value estimation
The fair values of the Group's
financial assets and liabilities approximate their carrying amounts
at the reporting date.
The fair value of financial
instruments traded in active markets, such as publicly traded
trading and other financial assets is based on quoted market prices
at the reporting date. The quoted market price used for financial
assets held by the Group is the current bid price. The appropriate
quoted market price for financial liabilities is the current ask
price.
The fair value of financial
instruments that are not traded in an active market is determined
by using valuation techniques. The Group uses a variety of methods,
such as estimated discounted cash flows, and makes assumptions that
are based on market conditions existing at the reporting
date.
Fair value measurements recognised
in the consolidated statement of financial position
The following table provides an
analysis of financial instruments that are measured subsequent to
initial recognition at fair value, Grouped into Levels 1 to 3 based
on the degree to which the fair value is observable.
· Level 1 fair value measurements are those derived from quoted
prices (unadjusted) in active markets for identical assets or
liabilities.
· Level 2 fair value measurements are those derived from inputs
other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices).
· Level 3 fair value measurements are those derived from
valuation techniques that include inputs for the asset or liability
that are not based on observable market data (unobservable
inputs).
2.3 Fair value estimation
|
Financial assets or liabilities
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
(Euro 000's)
|
|
|
|
|
|
31 Mar 2024
|
|
|
|
|
|
Other financial assets
|
|
|
|
|
|
Financial assets at FV through
OCI
|
27
|
-
|
1,101
|
1,128
|
|
Trade and other receivables
|
-
|
-
|
-
|
-
|
|
Receivables (subject to provisional
pricing)
|
-
|
14,158
|
-
|
14,158
|
|
Total
|
27
|
14,158
|
1,101
|
15,286
|
|
|
|
|
|
|
|
31 Dec 2023
|
|
|
|
|
|
Other financial assets
|
|
|
|
|
|
Financial assets at FV through
OCI
|
33
|
-
|
1,101
|
1,134
|
|
Trade and other
receivables
|
|
|
|
-
|
|
Receivables (subject to provisional
pricing)
|
-
|
15,164
|
-
|
15,164
|
|
Total
|
30
|
15,164
|
1,101
|
16,295
|
2.4 Critical accounting estimates and
judgements
The preparation of the unaudited
interim condensed consolidated financial statements require
management to make judgements, estimates and assumptions that
affect the reported amounts of revenues, expenses, assets and
liabilities, and the accompanying disclosures, and the disclosure
of contingent liabilities at the date of the consolidated financial
statements. Estimates and assumptions are continually evaluated and
are based on management's experience and other factors, including
expectations of future events that are believed to be reasonable
under the circumstances. Uncertainty about these assumptions and
estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected
in future periods.
Provisions are recognised when the
Group has a present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources will be
required to settle the obligation, and a reliable estimate of the
amount can be made. If the effect of the time value of money is
material, provisions are discounted using a current pre-tax rate
that reflects, where appropriate, the risks specific to the
liability. Where discounting is used, the increase in the provision
due to the passage of time is recognised as a finance
cost.
A full analysis of critical
accounting estimates and judgements is set out in Note 3.3 of the
2023 audited financial statements.
3. Business and geographical
segments
Business segments
The Group has only one distinct
business segment, being that of mining operations, which include
mineral exploration and development.
Copper concentrates produced by the Group are sold to three
off-takers as per the relevant offtake agreements. In addition, the
Group enters into spot agreements for the concentrates not
committed to off-takers.
Geographical segments
The Group's mining activities are
located in Spain. The commercialisation of the copper concentrates
produced in Spain is carried out through Cyprus. Sales transactions
to related parties are on arm's length basis in a similar manner to
transaction with third parties. Accounting policies used by the
Group in different locations are the same as those contained in
Note 2.
The table below presents an analysis
of revenue from external customers based on their geographical
location, determined by the country of establishment of each
customer.
|
Revenue - from external customers
|
Three month period ended 31
Mar 2024
|
Three
month period ended 31 Mar 2023
|
|
|
€'000
|
€'000
|
|
Switzerland
|
69,938
|
91,171
|
The table below presents revenues
from external customers attributed to the country of domicile of
the Company.
|
Revenue - from external customers
|
Three month period ended 31
Mar 2024
|
Three
month period ended 31 Mar 2023
|
|
|
€'000
|
€'000
|
|
Cyprus
|
5,227
|
6,589
|
|
Spain
|
64,711
|
84,582
|
|
|
69,938
|
91,171
|
The geographical location of the
specified non-current assets is based on the physical location of
the asset in the case of property, plant and equipment and
intellectual property and the location of the operation to which
they are allocated in the case of goodwill.
|
Non-current assets
|
31 Mar
2024
|
31 Dec
2023
|
|
|
€'000
|
€'000
|
|
Spain
|
442,554
|
434,136
|
|
|
442,554
|
434,136
|
Revenue represents the sales value
of goods supplied to customers; net of value added tax. The
following table summarises sales to customers with whom
transactions have individually exceeded 10.0% of the Group's
revenues.
|
(Euro 000's)
|
|
Three month period ended 31
Mar 2024
|
|
Three
month period ended 31 Mar 2023
|
|
|
Segment
|
€'000
|
Segment
|
€'000
|
|
Offtaker 1
|
Copper
|
19,701
|
Copper
|
14,396
|
|
Offtaker 2
|
Copper
|
26,101
|
Copper
|
27,892
|
|
Offtaker 3
|
Copper
|
24,136
|
Copper
|
48,866
|
4.
Revenue
|
(Euro 000's)
|
Three month period ended 31
Mar 2024
|
Three
month period ended 31 Mar 2023
|
|
Revenue from contracts with
customers (1)
|
73,718
|
88,313
|
|
Fair value (losses)/gains relating
to provisional pricing within sales (2)
|
(3,780)
|
2,858
|
|
Total revenue
|
69,938
|
91,171
|
All revenue from copper
concentrate is recognised at a point in time when the control is
transferred. Revenue from freight services is recognised over time
as the services are provided.
(1)
Included within Q1 2024 revenue there is a
transaction price of €3.1 million (€2.4 million in Q1 2023) related
to the freight services provided by the Group to the customers
arising from the sales of copper concentrate under CIF
incoterm.
(2)
Provisional pricing impact represents the change
in fair value of the embedded derivative arising on sales of
concentrate.
5. Net Finance Costs
|
(Euro 000's)
|
Three month period ended 31
Mar 2024
|
Three
month period ended 31 Mar 2023
|
|
Interest expense
|
|
|
|
Other interest
|
(511)
|
(510)
|
|
Interest on lease
liabilities
|
(7)
|
(7)
|
|
Unwinding of discount on mine
rehabilitation provision (Note 17)
|
(107)
|
(553)
|
|
Interest income
|
|
|
|
Financial interest
(1)
|
535
|
226
|
|
|
(90)
|
(844)
|
(1)
Interest income mainly related to interest
received on bank balances.
6. Tax
The Group calculates the period
income tax expense using the tax rate that would be applicable to
the expected total annual earnings. The major components of income
tax expense in the unaudited interim condensed consolidated
statement of profit or loss are:
|
(Euro 000's)
|
Three month period ended 31
Mar 2024
|
Three
month period ended 31 Mar 2023
|
|
Income taxes
|
|
|
|
Current (income)
tax/expense
|
(499)
|
2,473
|
|
(Income) tax/expense recognised in statement of profit and
loss
|
(499)
|
2,473
|
7. Earnings per share
The calculation of the basic and
fully diluted loss per share attributable to the ordinary equity
holders of the Company is based on the following data:
|
(Euro 000's)
|
Three month period ended 31
Mar 2024
|
Three
month period ended 31 Mar 2023
|
|
Profit attributable to equity
holders of the parent
|
2,026
|
11,369
|
|
|
|
|
|
Weighted number of ordinary shares
for the purposes of basic earnings per share (000's)
|
139,889
|
139,880
|
|
Basic earnings per share (EUR
cents/share)
|
1.5
|
8.1
|
|
|
|
|
|
Weighted number of ordinary shares
for the purposes of fully diluted earnings per share
(000's)
|
144,728
|
143,423
|
|
Fully diluted earnings per share
(EUR cents/share)
|
1.4
|
7.9
|
At 31 March 2024 there are nil
warrants (Note 14) and 4,828,500 options
(Note 14) (31 March 2023: nil warrants and 3,543,500 options) which
have been included when calculating the weighted average number of
shares for 2024.
8. Property, plant and equipment
|
(Euro 000's)
|
Land and
buildings
|
Right-of-use
assets
|
Plant and
machinery
|
Assets under
construction (1)
|
Deferred mining
costs (2)
|
Other assets
(3)
|
Total
|
|
Cost
|
|
|
|
|
|
|
|
|
At 1 January 2023
|
80,326
|
7,076
|
291,335
|
50,235
|
52,358
|
872
|
482,202
|
|
Additions
|
-
|
-
|
1,409
|
6,977
|
1,868
|
-
|
10,254
|
|
Reclassifications
|
-
|
-
|
1,543
|
(1,543)
|
-
|
-
|
-
|
|
Increase in rehab.
Provision
|
120
|
-
|
-
|
-
|
-
|
-
|
120
|
|
At 31 March 2023
|
80,446
|
7,076
|
294,287
|
55,669
|
54,226
|
872
|
492,576
|
|
Additions
|
36
|
-
|
4,602
|
35,172
|
9,846
|
79
|
49,735
|
|
Increase in rehab.
Provision
|
3,025
|
-
|
-
|
-
|
-
|
-
|
3,025
|
|
Reclassifications
|
-
|
-
|
20,240
|
(20,240)
|
-
|
-
|
-
|
|
Advances
|
10
|
-
|
-
|
-
|
-
|
-
|
10
|
|
Write-off
|
|
|
|
|
|
|
-
|
|
At
31 December 2023
|
83,517
|
7,076
|
319,129
|
70,601
|
64,072
|
951
|
545,346
|
|
Adjustments
|
-
|
-
|
5
|
-
|
-
|
-
|
5
|
|
Opening adjusted
|
83,517
|
7,076
|
319,134
|
70,601
|
64,072
|
951
|
545,351
|
|
Additions
|
-
|
-
|
1,670
|
16,188
|
-
|
-
|
17,858
|
|
Increase in rehab. Provision
|
475
|
-
|
-
|
-
|
-
|
-
|
475
|
|
Reclassifications
|
-
|
-
|
242
|
(242)
|
-
|
-
|
-
|
|
Write-off
|
-
|
(148)
|
(439)
|
-
|
-
|
-
|
(587)
|
|
At
31 March 2024
|
83,992
|
6,928
|
320,607
|
86,547
|
64,072
|
951
|
563,097
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
|
|
|
|
At 1 January 2023
|
20,454
|
1,998
|
89,182
|
-
|
14,921
|
739
|
127,294
|
|
Adjustments
|
-
|
-
|
6
|
-
|
-
|
-
|
6
|
|
Opening adjusted
|
20,454
|
1,998
|
89,188
|
-
|
14,921
|
739
|
127,300
|
|
Charge for the period
|
984
|
603
|
5,277
|
-
|
816
|
(2)
|
7,678
|
|
At 31 March 2023
|
21,438
|
2,601
|
94,465
|
-
|
15,737
|
737
|
134,978
|
|
Charge for the period
|
3,264
|
(70)
|
19,082
|
-
|
3,326
|
27
|
25,629
|
|
At
31 December 2023
|
24,702
|
2,531
|
113,547
|
-
|
19,063
|
764
|
160,607
|
|
Adjustments
|
-
|
-
|
1
|
-
|
-
|
-
|
1
|
|
Opening adjusted
|
24,702
|
2,531
|
113,548
|
-
|
19,063
|
764
|
160,608
|
|
Charge for the period
|
1,987
|
117
|
5,798
|
-
|
1,170
|
11
|
9,083
|
|
Write-off
|
-
|
(57)
|
-
|
-
|
-
|
-
|
(57)
|
|
At
31 March 2024
|
26,689
|
2,591
|
119,346
|
-
|
20,233
|
775
|
169,634
|
|
|
|
|
|
|
|
|
|
|
Net book
value
|
|
|
|
|
|
|
|
|
At
31 March 2024
|
57,303
|
4,337
|
201,261
|
86,547
|
43,839
|
176
|
393,463
|
|
At 31 December 2023
|
58,815
|
4,545
|
205,582
|
70,601
|
45,009
|
187
|
384,739
|
(1) Assets under construction at 31 March 2024 were €86.5 million
(31 Dec 2023: €70.6 million) which include sustaining capital
expenditures, tailings dams project, ELIX plant, solar plant and
the San Dionisio area.
(2) Stripping costs excluding San Dionisio
(3) Includes motor vehicles, furniture, fixtures and office
equipment which are depreciated over 5-10 years.
The above fixed assets are mainly
located in Spain.
9. Intangible assets
|
(Euro 000's)
|
Permits
|
Licences, R&D and
software
|
Total
|
|
Cost
|
|
|
|
|
At 1 January 2023
|
81,255
|
8,642
|
89,897
|
|
Additions
|
31
|
-
|
31
|
|
At 31 March 2023
|
81,286
|
8,642
|
89,928
|
|
Additions
|
113
|
116
|
229
|
|
Disposals
|
(200)
|
-
|
(200)
|
|
At
31 December 2023
|
81,199
|
8,758
|
89,957
|
|
Additions
|
272
|
-
|
272
|
|
At
31 March 2024
|
81,471
|
8,758
|
90,229
|
|
Amortisation
|
|
|
|
|
At 1 January 2023
|
27,627
|
8,440
|
36,067
|
|
Charge for the period
|
1,066
|
18
|
1,084
|
|
At 31 March 2023
|
28,693
|
8,458
|
37,151
|
|
Charge for the period
|
3,387
|
22
|
3,409
|
|
At
31 December 2023
|
32,080
|
8,480
|
40,560
|
|
Charge for the period
|
572
|
7
|
579
|
|
At
31 March 2024
|
32,652
|
8,487
|
41,139
|
|
Net book
value
|
|
|
|
|
At
31 March 2024
|
48,819
|
271
|
49,090
|
|
At 31 December 2023
|
49,119
|
278
|
49,397
|
Increase of permits related to the
capitalisation of Proyecto Masa Valverde.
The ultimate recovery of balances
carried forward in relation to areas of interest or all such assets
including intangibles is dependent on successful development, and
commercial exploitation, or alternatively the sale of the
respective areas.
The Group conducts impairment
testing on an annual basis unless indicators of impairment are not
present at the reporting date.
10. Inventories
|
(Euro 000's)
|
31 Mar
2024
|
31 Dec
2023
|
|
Finished products
|
8,782
|
8,416
|
|
Materials and supplies
|
23,255
|
21,852
|
|
Work in progress
|
3,521
|
3,046
|
|
Total inventories
|
35,558
|
33,314
|
As of 31 March 2024, copper
concentrate produced and not sold amounted to 8,283 tonnes (31 Dec
2023: 6,722 tonnes). Accordingly, the inventory for copper
concentrate was €8.8 million (31 Dec 2023: €8.4
million).
During Q1 2024 the Group recorded
cost of sales amounting to €56.8 million (Q1 2023: €63.0
million).
Materials and supplies relate
mainly to machinery spare parts. Work in progress represents ore
stockpiles, which is ore that has been extracted and is available
for further processing.
11. Dividends paid
Cash dividends declared and paid
during the period:
|
(Euro 000's)
|
Three month period ended 31
Mar 2024
|
Three
month period ended 31 Mar 2023
|
|
Dividends declared and
paid
|
-
|
-
|
|
Interim dividend declared and
paid
|
-
|
-
|
A final dividend of US$0.04 in
respect of 2023 was proposed on 18 March 2024 for approval by
shareholders at the 2024 AGM. This will result in a total
dividend for 2023 of US$0.09 per share.
12. Trade and other receivables
|
(Euro 000's)
|
31 Mar
2024
|
31 Dec
2023
|
|
Non-current
|
|
|
|
Deposits
|
306
|
307
|
|
Loans
|
234
|
233
|
|
Prepayments for service
contract
|
23,763
|
23,476
|
|
Other non-current
receivables
|
2,686
|
2,686
|
|
|
26,989
|
26,702
|
|
Current
|
|
|
|
Trade receivables at fair value -
subject to provisional
pricing
|
11,076
|
10,110
|
|
Trade receivables from shareholders
at fair value - subject to
provisional pricing (Note 22.3)
|
3,082
|
5,054
|
|
Trade receivables from shareholders
at amortised cost (Note 21.3)
|
21
|
-
|
|
Other receivables from related
parties at amortised cost (Note 21.3)
|
56
|
56
|
|
Deposits
|
37
|
37
|
|
VAT receivables
|
23,690
|
21,003
|
|
Tax advances
|
22
|
-
|
|
Prepayments
|
5,010
|
5,855
|
|
Other current assets
|
495
|
782
|
|
|
43,487
|
42,897
|
|
Allowance for expected credit
losses
|
-
|
-
|
|
Total trade and other receivables
|
70,476
|
69,599
|
Trade receivables are shown net of
any interest applied to prepayments. Payment terms are aligned with
offtake agreements and market standards and generally are 7 days on
90% of the invoice and the remaining 10% at the settlement date
which can vary between 1 to 5 months. The fair values of trade and
other receivables approximate to their book values.
Non-current deposits included €250k
(€250k at 31 December 2023) as a collateral for bank guarantees,
which was recorded as restricted cash (or deposit).
The prepayments for the service
contract relate to an agreement entered into between the Group and
Lain Technologies Ltd for the construction of an industrial plant
using the E-LIX technology, which is currently under construction
at Proyecto Riotinto. This technology system is a newly developed
electrochemical extraction process that utilises singular catalysts
and physiochemical conditions to dissolve the valuable metals
contained within sulphide concentrates. Lain Technologies Ltd.
developed and fully owns the E-LIX System. According to the
agreement, once the Industrial Plant at Proyecto Riotinto is
operational, the Group will have access to (i) the use of E-LIX
Technology to extract cathodes and (ii) exclusivity in the use of
the E-LIX Technology on concentrates extracted from the Iberian
Pyrite Belt for eight years.
13. Cash and cash equivalents
|
(Euro
000's)
|
31 Mar
2024
|
31 Dec
2023
|
|
Unrestricted cash and cash
equivalents at Group level
|
58,895
|
94,868
|
|
Unrestricted cash and cash
equivalents at Operation level
|
27,260
|
26,139
|
|
Consolidated cash and cash
equivalents
|
86,155
|
121,007
|
The table above provides a
comprehensive overview of the cash and cash equivalents held by
Atalaya as of 31 March 2024.
Cash and cash equivalents denominated in the following
currencies:
|
(Euro 000's)
|
31 Mar
2024
|
31 Dec
2023
|
|
Euro - functional and presentation
currency
|
43,374
|
50,470
|
|
Great Britain Pound
|
126
|
52
|
|
United States Dollar
|
42,655
|
70,485
|
|
Consolidated cash and cash
equivalents
|
86,155
|
121,007
|
14. Share capital and share premium
|
|
|
Shares
000's
|
Share
Capital
Stg£'000
|
Share
premium
Stg£'000
|
Total
Stg£'000
|
|
Authorised
|
|
|
|
|
|
|
Ordinary shares of Stg £0.075
each*
|
|
200,000
|
15,000
|
-
|
15,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Issued and fully paid
|
|
|
Shares
|
Share
Capital
|
Share
premium
|
Total
|
|
Issue Date
|
Price (£)
|
Details
|
000's
|
€'000
|
€'000
|
€'000
|
|
31
December 2022/1 January 2023
|
|
139,880
|
13,596
|
319,411
|
333,007
|
|
|
|
|
|
|
|
|
|
31-Dec-23
|
|
|
139,880
|
13,596
|
319,411
|
333,007
|
|
14-Feb-24
|
3.090
|
Exercised share options
(a)
|
20
|
2
|
71
|
73
|
|
31-Mar-24
|
|
|
139,899
|
13,598
|
319,482
|
333,080
|
Authorised capital
The Company's authorised share
capital is 200,000,000 ordinary shares of Stg £0.075
each.
Issued capital
(a) On 9 February
2024, the Company announced that it has issued 20,000 ordinary
shares of 7.5p in the Company ("Option Shares") pursuant to an
exercise of share options by an employee.
No share issuance has taken place
in FY2023.
The Company's share capital at 31
March 2024 is 139,899,209 ordinary shares of Stg £0.075
each.
In general, option agreements
contain provisions adjusting the exercise price in certain
circumstances including the allotment of fully paid ordinary shares
by way of a capitalisation of the Company's reserves, a subdivision
or consolidation of the ordinary shares, a reduction of share
capital and offers or invitations (whether by way of rights issue
or otherwise) to the holders of ordinary shares.
Details of share options
outstanding as at 31 March 2024:
|
Grant date
|
Expiry date
|
Exercise
price £
|
Share
options
|
|
29 May
2019
|
28 May
2024
|
2.015
|
666,500
|
|
30 June
2020
|
29 June
2030
|
1.475
|
516,000
|
|
24 June
2021
|
23 June
2031
|
3.090
|
996,000
|
|
26 January 2022
|
25
January 2032
|
4.160
|
120,000
|
|
22 June
2022
|
30 June
2027
|
3.575
|
1,225,000
|
|
22 May
2023
|
30 May
2028
|
3.270
|
1,305,000
|
|
Total
|
4,828,500
|
|
|
|
|
|
|
|
Weighted
average
exercise
price £
|
Share
options
|
|
|
At 1 January 2024
|
2.857
|
4,848,500
|
|
|
Granted during the year
|
-
|
-
|
|
Options executed during the
year
|
3.090
|
(20,000)
|
|
|
31 Mar 2024
|
2.967
|
4,828,500
|
|
|
|
|
|
|
|
| |
Warrants
As at 31 March 2024 and 2023 there
were no warrants.
15.
Other reserves
|
(Euro 000's)
|
Share
option
|
Bonus share
|
Depletion factor
(1)
|
FV reserve of financial
assets at FVOCI (2)
|
Non-Distributable reserve
(3)
|
Distributable
reserve
(4)
|
Total
|
|
At 1 January 2023
|
10,365
|
208
|
37,778
|
(1,153)
|
8,316
|
14,291
|
69,805
|
|
Change in fair value of financial
assets at fair value through OCI
|
-
|
-
|
-
|
6
|
-
|
-
|
6
|
|
At 31 March 2023
|
10,365
|
208
|
37,778
|
(1,147)
|
8,316
|
14,291
|
69,811
|
|
Recognition of share-based
payments
|
661
|
-
|
-
|
-
|
-
|
-
|
661
|
|
Change in fair value of financial
assets at fair value through OCI
|
-
|
-
|
-
|
(9)
|
-
|
-
|
(9)
|
|
At
31 December 2023
|
11,026
|
208
|
37,778
|
(1,156)
|
8,316
|
14,291
|
70,463
|
|
Recognition of share-based payments
|
151
|
-
|
-
|
-
|
-
|
-
|
151
|
|
Recognition of non-distributable reserve
|
-
|
-
|
-
|
-
|
142
|
-
|
142
|
|
Recognition of distributable reserve
|
-
|
-
|
-
|
-
|
-
|
9,297
|
9,297
|
|
Recognition of depletion factor
|
-
|
-
|
7,500
|
-
|
-
|
-
|
7,500
|
|
Change in fair value of financial assets at fair value through
OCI
|
-
|
-
|
-
|
(4)
|
-
|
-
|
(4)
|
|
At
31 March 2024
|
11,177
|
208
|
45,278
|
(1,160)
|
8,458
|
23,588
|
87,549
|
(1)
Depletion factor reserve
At 31 March 2024, the Group has
recognised €7.5 million (31 March 2023: €nil million) as a
depletion factor reserve as per the Spanish Corporate Tax
Act.
(2)
Fair value reserve of financial assets at
FVOCI
The Group has elected to recognise
changes in the fair value of certain investments in equity
securities in OCI, as explained in (1) above. These changes are
accumulated within the FVOCI reserve within equity. The Group
transfers amounts from this reserve to retained earnings when the
relevant equity securities are derecognised.
(3)
Non-distributable reserve
To comply with Spanish Law, the
Group needed to record a reserve of profits generated equal to a
10% of profit/(loss) for the year until 20% of share capital is
reached.
(4)
Distributable reserve
The Group reclassified at least
10% of the profit of 2023 to distributable reserves.
16. Trade and other payables
|
(Euro 000's)
|
31 Mar
2024
|
31 Dec
2023
|
|
Non-current
|
|
|
|
Other non-current
payables
|
2,003
|
2,003
|
|
Government grant
|
202
|
202
|
|
|
2,205
|
2,205
|
|
Current
|
|
|
|
Trade payables
|
65,399
|
70,303
|
|
Trade payables to shareholders (Note
22.3)
|
-
|
179
|
|
Accruals
|
3,595
|
3,395
|
|
VAT payables
|
355
|
391
|
|
Other
|
359
|
1,654
|
|
|
69,708
|
75,922
|
Other non-current payables are
related with the acquisition of Atalaya Ossa Morena SL (former Rio
Narcea Nickel SL).
Trade payables are mainly for the
acquisition of materials, supplies and other services. These
payables do not accrue interest and no guarantees have been
granted. The fair value of trade and other payables approximate
their book values. Trade payables are non-interest-bearing and are
normally settled on 60-day terms.
17. Provisions
|
(Euro 000's)
|
Other
provisions
|
Legal
costs
|
Rehabilitation
costs
|
Total
costs
|
|
At 1 January 2023
|
1,435
|
226
|
23,374
|
25,035
|
|
Use of provision
|
-
|
-
|
(148)
|
(148)
|
|
Increase in provision
|
-
|
-
|
120
|
120
|
|
Finance cost
|
-
|
-
|
553
|
553
|
|
At 31 March 2023
|
1,435
|
226
|
23,899
|
25,560
|
|
Additions
|
-
|
1
|
-
|
1
|
|
Use of provision
|
(685)
|
-
|
(370)
|
(1,055)
|
|
Reversal of provision
|
-
|
-
|
3,025
|
3,025
|
|
Finance cost
|
-
|
-
|
137
|
137
|
|
At
31 December 2023
|
750
|
227
|
26,691
|
27,668
|
|
Use
of provision
|
-
|
-
|
(271)
|
(271)
|
|
Increase in provision
|
-
|
-
|
475
|
475
|
|
Finance cost
|
-
|
-
|
107
|
107
|
|
At
31 March 2024
|
750
|
227
|
27,002
|
27,979
|
|
(Euro 000's)
|
31 Mar
2024
|
31 Dec
2023
|
|
Non-current
|
27,816
|
27,234
|
|
Current
|
163
|
434
|
|
Total
|
27,979
|
27,668
|
Rehabilitation provision
Rehabilitation provision represents
the accrued cost required to provide adequate restoration and
rehabilitation upon the completion of production activities. These
amounts will be settled when rehabilitation is undertaken,
generally over the project's life.
The discount rate used in the
calculation of the net present value of the liability as at 31
March 2024 was 3.62% (2023: 3.62%), which is the 15-year Spain
Government Bond rate for 2023. An inflation rate of 1%-5.70% (2023:
1%-5.70%) is applied on annual basis.
Legal provision
The Group has been named a
defendant in several legal actions in Spain, the outcome of which
is not determinable as at 31 Martch 2024. Management has
individually reviewed each case and established a provision of €0.2
million as of 31 March 2024 (€0.2 million at 31 December 2023) for
these claims, which has been reflected in these unaudited condensed
interim consolidated financial statements.
Other provisions
Other provisions are related with
the called-up equity holdings of Atalaya Masa Valverde
S.L.
18. Borrowings
|
(Euro 000's)
|
31 Mar
2024
|
31 Dec
2023
|
|
Non-current borrowings
|
|
|
|
Credit facilities
|
13,556
|
16,131
|
|
|
13,556
|
16,131
|
|
Current borrowings
|
|
|
|
Credit facilities
|
36,532
|
50,556
|
|
|
36,532
|
50,556
|
The Group had credit approval for
facilities totalling €125.4 million (€103.8 million at 31 December
2023). During 2023, Atalaya drew down some of its existing credit
facilities to financing the construction of 50 MW solar plant
(outstanding balance of €18.5 million at 31 March 2024) and in 2022
to pay the Deferred Consideration.
Borrowing with fixed interest
rates range from 1.75% to
2.45% with an average
fixed interest rate of 2.10%. Margins on
borrowing with variable interest rates, usually 12 months EURIBOR,
range from 0.95% to 2.25% with an average margin
of 1.36%.
At 31 March 2024, the Group had
used €50.1 million of its facilities and had undrawn facilities of
€75.3 million.
19. Lease liabilities
|
(Euro 000's)
|
31 Mar
2024
|
31 Dec
2023
|
|
Non-current
|
|
|
|
Lease liabilities
|
3,681
|
3,877
|
|
|
3,681
|
3,877
|
|
Current
|
|
|
|
Lease liabilities
|
487
|
501
|
|
|
487
|
501
|
Lease liabilities
The Group entered into lease
arrangements for the renting of land which is subject to the
adoption of all requirements of IFRS 16 Leases. The Group has
elected not to recognise right-of-use assets and lease liabilities
for short-term leases that have a lease term of 12 months or less
and leases of low-value assets. Depreciation expense regarding
leases amounts to €0.1 million (Q1 2023:
€0.6 million) for the three month period ended 31 March 2024. The
land lease is set for a duration of thirteen years, with payments
due at the beginning of each month, increasing annually by an
average of 1.5%. As of 31 March 2024, the remaining term of this
lease is nine years.
|
(Euro 000's)
|
31 Mar
2024
|
31 Dec
2023
|
|
Minimum lease payments due:
|
|
|
|
- Within one year
|
487
|
501
|
|
- Two to five years
|
1,877
|
1,928
|
|
- Over five years
|
1,804
|
1,949
|
|
Present value of minimum lease payments due
|
4,168
|
4,378
|
|
|
|
|
|
(Euro 000's)
|
Lease
liabilities
|
|
|
At
1 January 2023
|
4,378
|
|
|
Interest expense
|
7
|
|
|
Lease payments
|
(129)
|
|
|
Write-off
|
(88)
|
|
|
At
31 March 2024
|
4,168
|
|
|
|
|
|
|
At
31 March 2024
|
|
|
|
Non-current liabilities
|
3,681
|
|
|
Current liabilities
|
487
|
|
|
|
4,168
|
|
20. Acquisition, incorporation and disposal of
subsidiaries
There were no acquisitions or
incorporation of subsidiaries during the three month period ended
31 March 2024 and 2023.
21. Winding-up of subsidiaries
There were no operations wound up
during the three month period ended 31 March 2024 and
2023.
22. Related party transactions
The following transactions were
carried out with related parties:
22.1 Compensation of key management
personnel
The total remuneration and fees of
Directors (including Executive Directors) and other key management
personnel was as follows:
|
(Euro 000's)
|
Three month period ended 31
Mar 2024
|
Three
month period ended 31 Mar 2023
|
|
Directors' remuneration and
fees
|
297
|
360
|
|
Share option-based benefits and
other benefits to directors
|
48
|
20
|
|
Key management personnel
fees
|
149
|
204
|
|
Share option-based and other
benefits to key management personnel
|
48
|
20
|
|
|
541
|
604
|
22.2 Share-based benefits
The directors and key management
personnel have not been granted any options during the three-month
period ended 31 March 2024 (Q1 2023: nil).
22.3 Transactions with related
parties/shareholders
i) Transaction with shareholders
|
(Euro 000's)
|
Three month period ended 31
Mar 2024
|
Three
month period ended 31 Mar 2023
|
|
Trafigura Pte Ltd- Revenue from
contracts (a)
|
19,946
|
12,294
|
|
(Losses)/gains relating provisional
pricing within sales
|
(245)
|
2,103
|
|
|
19,701
|
14,397
|
|
Impala Terminals Huelva S.L.U. -
Port Handling and Warehousing services (b)
|
(417)
|
(566)
|
|
Trafigura - Total revenue from contracts
|
19,284
|
13,831
|
(a) Offtake agreement and spot
sales to Trafigura
Offtake agreement
In May 2015, the Company agreed
terms with key stakeholders in a capitalisation exercise to finance
the re-start of Proyecto Riotinto (the "2015
Capitalisation").
As part of the 2015
Capitalisation, the Company entered into offtake agreements with
some of its large shareholders, one of which was Trafigura Pte Ltd
("Trafigura"), under which the total forecast concentrate
production from Proyecto Riotinto was committed ("2015 Offtake
Agreements").
During Q1 2024, the Company
completed 3 sales transactions under the terms of the 2015 Offtake
Agreements valued at €19.7 million (Q1 2023: 5 sales valued at
€14.4 million).
Spot Sales Agreements
Due to various expansions
implemented at Proyecto Riotinto in recent years, volumes of
concentrate have been periodically available for sale outside of
the Company's various 2015 Offtake Agreements.
In Q1 2024, the Company completed
nil spot sales (Q1 2023: nil spot sales valued at €nil) There was
an adjustment of negative €1.0 million in Q1 2024 which related to
QP adjustments registered in Q1 2024 relating to spot sales made in
the previous year.
Sales transactions with related
parties are at arm's length basis in a similar manner to
transactions with third parties.
(b) Port Handling and Warehousing
services
In September 2015, Atalaya entered
into a services agreement with Impala Terminals Huelva S.L.U.
("Impala Terminals") for the handling, storage and shipping of
copper concentrates produced from Proyecto Riotinto. The agreement
covered total export concentrate volumes produced from Proyecto
Riotinto for three years for volumes not committed to Trafigura
under its 2015 Offtake Agreement and for the life of mine for the
volumes committed to Trafigura under its 2015 Offtake
Agreement.
In September 2018, the Company
entered into an amendment to the 2015 Port Handling Agreement,
which included improved financial terms and a five year
extension.
In December 2023, the Company
entered into an extension of the service agreement with Impala
Terminals for the handling, storage and shipping of copper
concentrates produced from Proyecto Riotinto on similar terms than
the 2015 agreement and the extension in 2018. This extension has a
term of approximately five years and covers the concentrate volumes
produced for export from Proyecto Riotinto that are not already
committed to the Trafigura Group under its 2015 Offtake
Agreement.
As at 31 March 2024, Impala
Terminals was part of the Trafigura Group, under joint
control.
ii) Period-end balances with related
parties
|
(Euro 000's)
|
31 Mar
2024
|
31 Dec
2023
|
|
Receivables from related parties:
|
|
|
|
Recursos Cuenca Minera
S.L.
|
56
|
56
|
|
Total (Note 12)
|
56
|
56
|
The above balances bear no
interest and are repayable on demand.
iii) Period-end balances with shareholders
|
(Euro 000's)
|
31 Mar
2024
|
31 Dec
2023
|
|
Receivable from shareholder (Note 12)
|
|
|
|
Trafigura - Debtor balance- subject
to provisional pricing
|
3,082
|
5,054
|
|
Trafigura - Debtor balance- at
amortised cost
|
21
|
-
|
|
|
3,103
|
5,054
|
|
|
|
|
|
Payable from joint venture of shareholder (Note
16)
|
|
|
|
Impala Terminals Huelva S.L.U. -
Payable balance
|
-
|
(179)
|
|
|
-
|
(179)
|
The above debtor balance arising
from sales of goods and other balances bear no interest and is
repayable on demand.
23. Contingent liabilities
Judicial and administrative cases
In the normal course of business,
the Group may be involved in legal proceedings, claims and
assessments. Such matters are subject to many uncertainties, and
outcomes are not predictable with assurance. Legal fees for such
matters are expensed as incurred and the Group accrues for adverse
outcomes as they become probable and estimable.
24. Commitments
There are no minimum exploration
requirements at Proyecto Riotinto. However, the Group is obliged to
pay local land taxes which currently are approximately €235,000 per
year in Spain and the Group is required to maintain the Riotinto
site in compliance with all applicable regulatory
requirements.
In 2012, ARM entered into a 50/50
joint venture with Rumbo to evaluate and exploit the potential of
the class B resources in the tailings dam and waste areas at
Proyecto Riotinto (mainly residual gold and silver in the old
gossan tailings). Under the joint venture agreement, ARM will be
the operator of the joint venture, will reimburse Rumbo for the
costs associated with the application for classification of the
Class B resources and will fund the initial expenditure of a
feasibility study up to a maximum of €2.0 million. Costs are then
borne by the joint venture partners in accordance with their
respective ownership interests.
25. Significant events
Ongoing geopolitical events are
impacting the global economy, but the full implications cannot yet
be predicted. Key impacts include higher and more volatile input
costs and disruptions to freight and logistics. The financial
consequences of these events cannot be estimated with any
reasonable degree of certainty at this stage.
· On 9
February 2024, the Company issued 20,000 ordinary shares of 7.5p in
the Company pursuant to an exercise of share options by a former
employee.
26. Events after the Reporting Period
· Following the publication the prospectus in relation to the
admission of its ordinary shares ("Ordinary Shares") to the premium
listing segment of the Official List of the Financial Conduct
Authority ("FCA"), which took place on 24 April 2024, Atalaya was
admitted to the premium listing segment and to trading on London
Stock Exchange plc's main market for listed securities (together,
"Admission") on 29 April and cancelled from trading on
AIM.
· On
25 April 2022, BlackRock, Inc., shareholder of the Company,
decreased its voting rights from 4.07% to 4.05%, and on 26 April
decreased its voting rights to 3.97%.
· On 7
May 2024, the Company issued 66,500 ordinary shares of 7.5p in the
Company pursuant to an exercise of share options by non-PDMR
employees.