REG - Atalaya Mining PLC - 2023 Annual Results
19/03/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240319:nRSS3203Ha&default-theme=true
RNS Number : 3203H Atalaya Mining PLC 19 March 2024
19 March 2024
Atalaya Mining Plc.
("Atalaya" or "the Company")
2023 Annual Results
Lower costs and balance sheet strength position Atalaya for next growth phase
Atalaya Mining Plc (AIM: ATYM) is pleased to announce its audited consolidated
financial results for the year ended 31 December 2023 ("FY2023" or the
"Period").
Highlights
· Copper production of 51.7 kt at cash costs of $2.79/lb and AISC
of $3.09/lb
· Improved financial results due primarily to lower costs
‒ EBITDA of €73.1 million vs. €55.3 million in FY2022
‒ Cash flows from operating activities of €64.7 million vs.
€38.5 million in FY2022
· Maintained strong balance sheet, including €54.3 million in net
cash, after investments in E-LIX, 50 MW solar plant and €11.5 million in
dividend payments in calendar year 2023
· Final Dividend of $0.04/share proposed, bringing the Full Year
Dividend to $0.09/share
· Capital expenditure budget for 2024 focused principally on San
Dionisio early works
‒ €42-46 million budgeted for continued San Dionisio stripping
and road relocation
‒ Further investments to complete and ramp-up E-LIX and 50 MW
solar plant
· 2024 guidance of 51 - 53 kt Cu production at $3.00 - 3.20/lb AISC
is consistent with FY2023
Q4 2023 and FY2023 Financial Results Summary
Period ended 31 December Unit Q4 2023 Q4 2022 FY2023 FY2022
Revenues from operations €k 85,591 99,893 340,346 361,846
Operating costs €k (71,703) (81,694) (267,246) (306,532)
EBITDA €k 13,888 18,199 73,100 55,314
Profit for the period €k 5,215 8,039 36,663 30,926
Basic earnings per share € cents/share 4.5 6.4 27.7 23.7
Dividend per share((1)) US$/share n/a n/a 0.0900 0.0745
Cash flows from operating activities €k 5,715 20,931 64,743 38,503
Cash flows used in investing activities €k (14,802) (17,525) (50,406) (53,529)
Cash flows from financing activities €k 13,069 19,596 (18,500) 22,411
Net Cash position((2)) €k 54,320 53,085 54,320 53,085
Working capital surplus €k 68,618 84,047 68,618 84,047
Average realised copper price (excluding QPs closed in the Period) US$/lb 3.78 3.70 3.80 3.96
Cu concentrate produced tonnes 64,414 68,908 249,321 249,543
Cu production tonnes 12,775 13,969 51,667 52,269
Cash costs US$/lb payable 2.90 2.90 2.79 3.16
All-In Sustaining Cost ("AISC") US$/lb payable 3.16 3.12 3.09 3.37
(1) Consists of 2023 Interim Dividend (paid 28 September 2023) and
proposed 2023 Final Dividend, which is subject to approval by shareholders at
the Company's 2024 Annual General Meeting.
(2) Includes restricted cash and bank borrowings at 31 December 2023 and
31 December 2022.
Alberto Lavandeira, CEO, commented:
"Atalaya made progress on several important strategic initiatives in 2023 and
we are enthusiastic about the year ahead.
We began 2023 by announcing the results of the Riotinto PEA, which set out our
vision for the future of our flagship operation, including mining higher grade
material from our existing deposits and leveraging our 15 Mtpa processing
plant. We were then granted approval to expand our tailings capacity and mine
footprint, and also to begin waste stripping at San Dionisio, which is an
important component of the PEA mine plan. Similarly, we received the
environmental authorisation and exploitation permit at Proyecto Masa Valverde,
which could become another source of higher grade material for Riotinto.
We made substantial progress at our E-LIX Phase I plant, which has the
potential to unlock significant value from complex ores found in the Iberian
Pyrite Belt and beyond. First copper cathodes were produced in December and we
look forward to providing further updates as plant ramp-up continues.
Regarding costs, European energy markets have continued to normalise, helping
Atalaya achieve lower costs despite ongoing inflationary pressures. The
start-up of our 50 MW solar plant is expected to provide further stability and
also help to lower our carbon footprint.
Finally, we continue to be optimistic about the outlook for Proyecto Touro,
which could become a new source of copper production in Europe. The energy
transition is accelerating the demand for copper, however, uncertainty around
supply is growing as production falls from mature mines and new projects
become increasingly complex. With our strong balance sheet and experienced
team of mine builders and operators, Atalaya is well positioned to benefit
from improving copper market dynamics."
Investor Presentation Reminder
Alberto Lavandeira (CEO) and César Sánchez (CFO) will be holding a live
presentation relating to the 2023 Annual Results via the Investor Meet Company
platform at 11:00am GMT today.
To register, please visit the following link and click "Add to Meet" Atalaya
via:
https://www.investormeetcompany.com/atalaya-mining-plc/register-investor
(https://www.investormeetcompany.com/atalaya-mining-plc/register-investor)
Management will also answer questions that have been submitted via the
Investor Meet Company dashboard.
Note to Readers
The financial information for the years ended 31 December 2023 and 2022
contained in this document does not constitute statutory accounts as defined
in the Cyprus Companies Law Cap. 113. The financial information for the years
ended 31 December 2023 and 2022 have been extracted from the consolidated
financial statements of Atalaya Mining plc for the year ended 31 December 2023
which have been approved by the directors on 18 March 2024. The auditor's
report on those financial statements was unqualified.
Q4 2023 and FY2023 Operating Results Summary
Units expressed in accordance with the international system of units (SI) Unit Q4 2023 Q4 2022 FY2023 FY2022
Ore mined t 3,742,814 3,540,155 14,944,638 14,884,361
Waste mined t 7,362,657 5,329,252 32,182,904 24,661,569
Ore processed t 4,138,368 3,958,654 15,790,098 15,410,459
Copper ore grade % 0.36 0.41 0.38 0.40
Copper concentrate grade % 19.83 20.27 20.72 20.95
Copper recovery rate % 85.47 86.24 86.62 85.84
Copper concentrate t 64,414 68,908 249,321 249,543
Copper contained in concentrate t 12,775 13,969 51,667 52,269
Payable copper contained in concentrate t 12,131 13,280 49,174 49,773
Cash cost US$/lb payable 2.90 2.90 2.79 3.16
All-in sustaining cost US$/lb payable 3.16 3.12 3.09 3.37
Mining
Ore mined was 3.7 million tonnes in Q4 2023 (Q4 2022: 3.5 million tonnes) and
14.9 million tonnes in FY2023 (FY2022: 14.9 million tonnes).
Waste mined was 7.4 million tonnes in Q4 2023 (Q4 2022: 5.3 million tonnes)
and 32.2 million tonnes in FY2023 (FY2022: 24.7 million tonnes). Increased
waste mining was completed at Cerro Colorado in FY2023 to allow for the move
of mining equipment to the San Dionisio area.
Processing
The plant processed ore of 4.1 million tonnes during Q4 2023 (Q4 2022: 4.0
million tonnes) and 15.8 million tonnes in FY2023 (FY2022: 15.4 million
tonnes), again delivering plant performance above its 15 million tonne per
annum nameplate capacity.
Copper grade was 0.36% in Q4 2023 (Q4 2022: 0.41%) and 0.38% in FY2023
(FY2022: 0.40%). The copper grade in Q4 2023 was impacted in part by intense
rainfall in November which prevented access to higher grade areas of the Cerro
Colorado pit and required the use of low-grade stockpiles to supplement plant
feed.
Copper recovery was 85.47% in Q4 2023 (Q4 2022: 86.24%) and 86.62% in
FY2023 (FY2022: 85.84%).
Production
Copper production was 12,775 tonnes in Q4 2023 (Q4 2022: 13,969 tonnes) and
51,667 tonnes in FY2023 (FY2022: 52,269 tonnes). Production for FY2023 was
slightly below FY2022 as a result of lower grades, partly offset by higher ore
throughput and recoveries.
On-site copper concentrate inventories were approximately 6,722 tonnes at 31
December 2023 (31 December 2022: 3,529 tonnes).
Copper contained in concentrates sold was 12,928 tonnes in Q4 2023 (Q4 2022:
14,027 tonnes) and 50,808 tonnes in FY2023 (FY2022: 52,323 tonnes).
Cash Costs and AISC Breakdown
$/lb Cu payable Q4 2023 Q4 2022 FY2023 FY2022
Mining 0.92 0.70 0.86 0.79
Processing 0.84 1.11 0.89 1.31
Other site operating costs 0.67 0.59 0.56 0.54
Total site operating costs 2.44 2.40 2.30 2.65
By-product credits (0.11) (0.07) (0.09) (0.08)
Freight, treatment charges and other offsite costs 0.57 0.57 0.58 0.60
Total offsite costs 0.47 0.50 0.49 0.52
Cash costs 2.90 2.90 2.79 3.16
Cash costs 2.90 2.90 2.79 3.16
Corporate costs 0.09 0.09 0.08 0.08
Sustaining capital (excluding one-off tailings expansion) 0.02 0.06 0.03 0.06
Capitalised stripping costs 0.08 - 0.12 0.01
Other costs 0.06 0.08 0.07 0.06
Total AISC 3.16 3.12 3.09 3.37
Note: Some figures may not add up due to rounding.
Cash costs were $2.90/lb payable copper in Q4 2023 (Q4 2022: $2.90/lb) and
$2.79/lb payable copper in FY2023 (FY2022: $3.16/lb), with the decrease mainly
due to lower electricity costs despite lower production volumes.
AISC were $3.16/lb payable copper in Q4 2023 (Q4 2022: $3.12/lb) and $3.09/lb
payable copper in FY2023 (FY2022: $3.37/lb). The decrease in full year AISC
was driven by the same factors that resulted in lower cash costs, but partly
offset by higher capitalised stripping costs at Cerro Colorado. AISC excludes
one-off investments in the tailings dam (consistent with prior reporting) and
waste stripping at the San Dionisio area.
Q4 2023 and FY2023 Financial Results Highlights
Income Statement
Revenues were €85.6 million in Q4 2023 (Q4 2022: €99.9 million) and
€340.3 million in FY2023 (FY2022: €361.8 million). Lower revenues in
FY2023 were the result of lower copper sales and lower realised copper prices.
Operating costs were €71.7 million in Q4 2023 (Q4 2022: €81.7 million) and
€267.2 million in FY2023 (FY2022: €306.5 million). Lower operating costs
in FY2023 were mainly the result of lower electricity costs, partly offset by
higher administrative and expensed exploration costs.
EBITDA was €13.9 million in Q4 2023 (Q4 2022: €18.2 million) and €73.1
million in FY2023 (FY2022: €55.3 million). Higher EBITDA in FY2023 resulted
from lower operating costs, partly offset by lower revenues.
Profit after tax was €5.2 million in Q4 2023 (Q4 2022: €8.0 million) or
4.5 cents basic earnings per share (Q4 2022: 6.4 cents) and €36.7 million in
FY2023 (FY2022: €30.9 million) or 27.7 cents basic earnings per share (Q4
2022: 23.7 cents).
Cash Flow Statement
Cash flows from operating activities before changes in working capital were
€12.7 million in Q4 2023 (Q4 2022: €19.9 million) and €5.7 million after
working capital changes (Q4 2022: €20.9 million). For FY2023, cash flows
from operating activities before changes in working capital were €72.2
million (FY2022: €56.9 million) and €64.7 million after working capital
changes (FY2022: €38.5 million).
Cash flows used in investing activities were €14.8 million in Q4 2023 (Q4
2022: €17.5 million) and €50.4 million in FY2023 (FY2022: €53.5
million). Key investments in FY2023 included €3.4 million in sustaining
capex (FY2022: €6.2 million), €11.7 million in capitalised stripping
(FY2022: €0.7 million), €13.7 million to extend the tailings dam (FY2022:
€14.1 million), €12.9 million for the 50 MW solar plant (FY2022: €22.7
million) and €18.1 million for the E-LIX Phase I Plant (FY2022: €16.8
million), of which €9.1 million was booked as prepayments for service
contract to Lain Technologies Ltd.
Cash flows from financing activities were positive €13.1 million in Q4 2023
(Q4 2022: positive €19.6 million) as a result of credit facility drawdowns,
and negative €18.5 million in FY2023 (FY2022: positive €22.4 million) as a
result of credit facility repayments and dividend payments.
Balance Sheet
Consolidated cash and cash equivalents were €121.0 million at 31 December
2023 (31 December 2022: €126.4 million). Net of current and non-current
borrowings of €66.7 million, net cash was €54.3 million at 31 December
2023 (31 December 2022: €53.1 million).
Inventories of concentrate valued at cost were €8.4 million at 31 December
2023 (31 December 2022: €4.5 million). The total working capital surplus was
€68.6 million at 31 December 2023 (31 December 2022: €84.0 million).
Electricity Prices
Realised Prices
Market electricity prices in FY2023 improved significantly from the
unprecedented levels experienced in FY2022 following Russia's conflict with
Ukraine. Factors that contributed to the price normalisation in FY2023 include
significantly lower gas prices, high gas inventory levels in Europe, mild
weather in much of Europe and strong contributions from renewable power
generation sources in Iberia. After including the contribution from the
Company's 10-year power purchase agreement ("PPA"), realised electricity
prices in FY2023 were approximately 60% lower than the Company's average
realised electricity price in FY2022.
So far in FY2024, market electricity prices have continued to trend lower,
reaching levels that are consistent with long run averages that existed in
Spain until mid-2021.
50 MW Solar Plant
Construction continues to advance at the 50 MW solar plant at Riotinto. As a
result of certain procurement and installation delays, the contractor has
informed the Company that initial power generation is now expected to begin in
Q2 2024.
In order to reduce exposure to the spot electricity market until the 50 MW
solar plant is operating, the Company has entered into new short term PPAs
such that the majority of Riotinto's electricity requirements for H1 2024 are
now subject to fixed prices.
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.
Outlook for 2024
Production
As announced in the Company's Q4 2023 Operations Update, copper production
guidance is 51,000 - 53,000 tonnes for FY2024, which is consistent with FY2023
production levels. As a result of the anticipated grade profile, FY2024
production is expected to be weighted slightly towards H2 2024.
Operating Costs
For the most part, the prices of key inputs stabilised in FY2023, following
the significant inflationary pressures that were experienced in FY2022.
However, the unit prices of consumables such as explosives, diesel and lime
remain above 2021 levels. Positively, improving prices for spot market
electricity and gas in Spain are expected to benefit Atalaya's cost position.
Cash cost and AISC guidance for FY2024 are consistent with FY2023 levels and
are as follows:
· Cash cost range of $2.80 - 3.00/lb copper payable in FY2024
· AISC range of $3.00 - 3.20/lb copper payable in FY2024
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
Atalaya remains focused on several strategic objectives including growing its
production, increasing mine life, lowering its cost base and enhancing the
long-term sustainability of its operations.
Accordingly, the Company plans to make the following non-sustaining capital
investments in FY2024:
Item € million
Completion of 50 MW solar plant €4 - 5
Completion and ramp-up of E-LIX Phase I Plant((1)) €5 - 7
San Dionisio waste stripping, dewatering and road relocation €42 - 46
Expansion of existing Riotinto tailings facility €13 - 15
Total non-sustaining capital investments €64 - 73
(1) A portion of this total will be accounted for as prepayments to Lain
Technologies.
Exploration
Atalaya considers early stage exploration to be an important component of its
long-term strategy. The Company controls several large land packages across
Spain, including in the Iberian Pyrite Belt (Riotinto District) and the Ossa
Morena Metallogenic Belt (Proyecto Ossa Morena).
For FY2024, exploration expenditures of €5 - 7 million are expected and will
focus on expanding current resources and making new discoveries at Proyecto
Riotinto and Proyecto Masa Valverde, drill testing first-order geophysical
anomalies at Proyecto Riotinto East, expanding and upgrading current resources
at the Alconchel-Pallares copper-gold project and continue drill testing new
targets elsewhere at Proyecto Ossa Morena.
2023 Final Dividend
Atalaya has a dividend policy that seeks to provide capital returns to its
shareholders and allows for continued investments in the Company's portfolio
of growth projects. The dividend policy consists of an annual pay-out of 30 -
50% of free cash flow generated during the applicable financial year and is
payable in two half-yearly instalments.
The Board of Directors has proposed a final dividend for FY2023 of $0.04 per
ordinary share ("Final Dividend"), which is equivalent to approximately 3.1
pence per share. Payment of the Final Dividend is subject to shareholder
approval at the Company's 2024 Annual General Meeting ("AGM"). Should it be
approved, the Final Dividend, together with the Interim Dividend paid in
September 2023, would result in a Full Year Dividend of $0.09 per ordinary
share, which is equivalent to approximately 7.1 pence per share. Further
details on the timing of the potential payment of the Final Dividend will be
provided ahead of the AGM.
Corporate Activities Update
Intention to Move to the Main Market
In November 2023, the Company announced its intention to apply for its
ordinary shares to be admitted to the premium listing segment of the Official
List maintained by the Financial Conduct Authority ("FCA") and to trading on
the London Stock Exchange plc's main market for listed securities (together,
"Admission").
On 21 December 2023, the Company announced the application process was
ongoing, outlined that Admission remained subject to a number of conditions
including the approval by the FCA of a prospectus and noted that Admission
would not take place until after the announcement of the Company's 2023 Annual
Results.
The Company continues to progress the application process and will provide
further update on the potential timing of Admission in due course.
Re-domiciliation
In November 2023, Atalaya announced its intention to re-domicile the Company
by transferring its registered office from the Republic of Cyprus to the
Kingdom of Spain and convened an Extraordinary General Meeting ("EGM") to seek
approval for various related matters.
On 12 December 2023, the Company held the EGM, at which all resolutions were
approved by the Company's shareholders.
As a result, various procedural and legal steps are underway. Completion of
the proposed re-domiciliation continues to be expected before the end of May
2024.
Asset Portfolio Update
Proyecto Riotinto
In April 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 at San Dionisio began
in Q4 2023 and will continue in 2024 in order to prepare the area for future
mining phases.
E-LIX Phase I Plant
Final construction activities are in progress at the E-LIX Phase I plant.
Initial copper cathodes were produced in December 2023 during the
commissioning of portions of the plant. Full commissioning and ramp-up of the
facility are expected during H1 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.
Riotinto District - Proyecto Masa Valverde ("PMV")
In March 2023, the Company announced that PMV was granted an AAU by the Junta
de Andalucía, following an application process that was initiated by the
Company in December 2021. The AAU is an integrated process that combines the
Environmental Impact Assessment and other authorisations and specifies
requirements to avoid, prevent and minimise a project's impact on the
environment and the area's cultural heritage. In November 2023, the
exploitation permit for the Masa Valverde and Majadales deposits was
officially granted.
Various evaluation and optimisation workstreams will continue in 2024. In
addition, two exploration rigs will remain active at PMV.
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
In 2023, exploration drilling continued with one rig at the
Guijarro-Chaparral, La Hinchona and the Alconchel-Pallares copper-gold
projects. One rig is expected to be active throughout 2024.
Proyecto Riotinto East
Drill testing of selected coincident FLEM and AGG anomalies is in progress
with one rig.
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 Henry Fitzgerald-O'Connor / James Asensio +44 20 7523 8000
(NOMAD and Joint Broker)
BMO Capital Markets Tom Rider / Andrew Cameron +44 20 7236 1010
(Joint Broker)
Peel Hunt LLP Ross Allister / David McKeown +44 20 7418 8900
(Joint Broker)
About Atalaya Mining Plc
Atalaya is an AIM-listed mining and development group which produces copper
concentrates and silver by-product at its wholly owned Proyecto Riotinto site
in southwest Spain. Atalaya's current 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 that include Proyecto Masa Valverde and
Proyecto Riotinto East. In addition, the Group 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, visit www.atalayamining.com
(http://www.atalayamining.com)
ATALAYA MINING PLC
MANAGEMENT'S REVIEW AND
EXTRACT OF THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS
31 December 2023
Notice to Reader
The accompanying 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 2022 and 31 December 2023 and results of
operations for the three and twelve months ended 31 December 2023 and 2022.
This report has been prepared as of 18 March 2024. The analysis hereby
included is intended to supplement and complement the audited consolidated
financial statements and notes thereto ("Financial Statements") as at and for
the period ended 31 December 2023, which will be released together with the
Company's 2023 Annual Report.
Atalaya prepares its Annual Financial Statements in accordance with
International Financial Reporting Standards ("IFRSs") as adopted by the EU and
its Consolidated financial statements in accordance with International
Accounting Standard 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 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 listed on AIM of the London Stock Exchange in May 2005 under
the symbol ATYM. The Company continued to be listed on AIM as at 31 December
2023.
In February 2023, Atalaya announced its application for the voluntary
delisting of its ordinary shares from the Toronto Stock Exchange (the "TSX").
The delisting from the TSX took effect on 20 March 2023. Ordinary shares in
the Company continue to trade on the AIM market of the London Stock Exchange
under the symbol "ATYM".
Additional information about Atalaya Mining Plc is available at
www.atalayamining.com (http://www.atalayamining.com) as per requirement of AIM
rule 26.
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 three 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 three
investigation permits (known as Peñas Blancas, Cerro Negro and Herreros
investigation permits), which cover approximately 12,368 hectares and are
located immediately east of Proyecto Riotinto.
2. Operating Review
Proyecto Riotinto
The following table presents a summarised statement of operations of Proyecto
Riotinto for the three and twelve month periods ended 31 December 2023 and
2022.
Units expressed in accordance with the international system of units (SI) Unit Q4 2023 Q4 2022 FY2023 FY2022
Ore mined t 3,742,814 3,540,155 14,944,638 14,884,361
Waste mined t 7,362,657 5,329,252 32,182,904 24,661,569
Ore processed t 4,138,368 3,958,654 15,790,098 15,410,459
Copper ore grade % 0.36 0.41 0.38 0.40
Copper concentrate grade % 19.83 20.27 20.72 20.95
Copper recovery rate % 85.47 86.24 86.62 85.84
Copper concentrate t 64,414 68,908 249,321 249,543
Copper contained in concentrate t 12,775 13,969 51,667 52,269
Payable copper contained in concentrate t 12,131 13,280 49,174 49,773
Cash cost US$/lb payable 2.90 2.90 2.79 3.16
All-in sustaining cost* US$/lb payable 3.16 3.12 3.09 3.37
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 Q4 2023 Q4 2022 FY2023 FY2022
Mining 0.92 0.70 0.86 0.79
Processing 0.84 1.11 0.89 1.31
Other site operating costs 0.67 0.59 0.56 0.54
Total site operating costs 2.44 2.40 2.30 2.65
By-product credits (0.11) (0.07) (0.09) (0.08)
Freight, treatment charges and other offsite costs 0.57 0.57 0.58 0.60
Total offsite costs 0.47 0.50 0.49 0.52
Cash costs 2.90 2.90 2.79 3.16
Cash costs 2.90 2.90 2.79 3.16
Corporate costs 0.09 0.09 0.08 0.08
Sustaining capital (excluding one-off tailings expansion) 0.02 0.06 0.03 0.06
Capitalised stripping costs 0.08 - 0.12 0.01
Other costs 0.06 0.08 0.07 0.06
Total AISC 3.16 3.12 3.09 3.37
Note: Figures may not add up due to rounding.
Mining and Processing
Mining
Ore mined was 3.7 million tonnes in Q4 2023 (Q4 2022: 3.5 million tonnes) and
14.9 million tonnes in FY2023 (FY2022: 14.9 million tonnes).
Waste mined was 7.4 million tonnes in Q4 2023 (Q4 2022: 5.3 million tonnes)
and 32.2 million tonnes in FY2023 (FY2022: 24.7 million tonnes). Increased
waste mining was completed at Cerro Colorado in FY2023 to allow for the move
of mining equipment to the San Dionisio area.
Processing
The plant processed ore of 4.1 million tonnes during Q4 2023 (Q4 2022: 4.0
million tonnes) and 15.8 million tonnes in FY2023 (FY2022: 15.4 million
tonnes), again delivering plant performance above its 15 million tonne per
annum nameplate capacity.
Copper grade was 0.36% in Q4 2023 (Q4 2022: 0.41%) and 0.38% in FY2023
(FY2022: 0.40%). The copper grade in Q4 2023 was impacted in part by intense
rainfall in November which prevented access to higher grade areas of the Cerro
Colorado pit and required the use of low-grade stockpiles to supplement plant
feed.
Copper recovery was 85.47% in Q4 2023 (Q4 2022: 86.24%) and 86.62% in FY2023
(FY2022: 85.84%).
Production
Copper production was 12,775 tonnes in Q4 2023 (Q4 2022: 13,969 tonnes) and
51,667 tonnes in FY2023 (FY2022: 52,269 tonnes). Production for FY2023 was
slightly below FY2022 as a result of lower grades, partly offset by higher ore
throughput and recoveries.
On-site copper concentrate inventories were approximately 6,722 tonnes at 31
December 2023 (31 December 2022: 3,529 tonnes).
Copper contained in concentrates sold was 12,928 tonnes in Q4 2023 (Q4 2022:
14,027 tonnes) and 50,808 tonnes in FY2023 (FY2022: 52,323 tonnes).
3. Operational Guidance
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. The Company is
aware that recent geopolitical developments and the impact on energy prices
and other supplies may still have further effects or impact how the Company
can manage it operations and is accordingly keeping its guidance under regular
review. Should the Company consider the current guidance no longer achievable,
then the Company will provide a further update.
Proyecto Riotinto operational guidance for 2024 is as follows:
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
As announced in the Company's Q4 2023 Operations Update, copper production
guidance is 51,000 - 53,000 tonnes for FY2024, which is consistent with FY2023
production levels. As a result of the anticipated grade profile, FY2024
production is expected to be weighted slightly towards H2 2024.
Operating Costs
For the most part, the prices of key inputs stabilised in FY2023, following
the significant inflationary pressures that were experienced in FY2022.
However, the unit prices of consumables such as explosives, diesel and lime
remain above 2021 levels. Positively, improving prices for spot market
electricity and gas in Spain are expected to benefit Atalaya's cost
position.
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 (a portion of
which will be accounted for as prepayments to Lain Technologies), €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. Financial Review
Income Statement
The following table presents a summarised consolidated income statement for
the three and twelve month periods ended 31 December 2023 and 31 December
2022.
(Euro 000's) Three month ended 31 Dec 2023 Three month ended 31 Dec 2022 Twelve month ended 31 Dec 2023 Twelve month ended 31 Dec 2022
Revenues from operations 85,591 99,893 340,346 361,846
Cost of sales (65,038) (71,797) (247,290) (289,554)
Corporate expenses (4,713) (4,598) (12,741) (9,954)
Exploration expenses (1,311) (3,801) (6,467) (4,257)
Care and maintenance expenditure (1,199) (1,494) (2,384) (3,053)
Other income 558 (4) 1,636 286
EBITDA 13,888 18,199 73,100 55,314
Depreciation/amortisation (10,635) (8,775) (37,800) (34,119)
Net foreign exchange (loss)/gain (2,038) (4,181) (1,278) 11,546
Net finance (cost)/income (422) 1,030 2,071 (421)
Tax 4,422 1,766 570 (1,394)
Profit for the year 5,215 8,039 36,663 30,926
Three months financial review
Revenues for the three-month period ended 31 December 2023 amounted to €85.6
million (Q4 2022: €99.9 million). The decrease in revenues compared to the
same quarter of the previous year was mainly driven by a decrease in
concentrate sales volumes.
Realised prices excluding QPs were US$3.78/lb copper during Q4 2023 compared
with US$3.70/lb copper in Q4 2022. The realised price during the quarter,
including QPs, was approximately US$3.75/lb.
Cost of sales for the three months ended 31 December 2023 totalled €65.0
million, compared to €71.8 million in Q4 2022. The decrease in costs was
mainly attributable to lower prices for electricity and steel grinding balls.
Cash costs of US$2.90/lb payable copper during Q4 2023 compared with
US$2.90/lb payable copper in the same period last year. Cash costs remained
consistent with the previous year, primarily due to the offsetting effect of a
reduction in electricity costs (a decrease of approx. €8.8 million) in 2023,
counterbalanced by an increase in earthworks waste. AISC for Q4 2023,
excluding one-off investments in the tailings dam, were US$3.16/lb payable
copper compared with US$3.12/lb payable copper in Q4 2022.
Sustaining capex for Q4 2023 amounted to €0.5 million compared with €1.6
million in Q4 2022. Sustaining capex mainly related to continuous enhancements
in the processing systems of the plant. In addition, the Company invested
€3.4 million in the project to increase the tailings dam during Q4 2023 (Q4
2022: €4.8 million). Stripping costs capitalised during Q4 2023 amounted to
€2.0 million (Q4 2022: €nil).
In Q4 2023, the Capex for constructing the 50 MW solar plant was €2.2
million. Additionally, investments in the E-LIX Phase I plant totalled €5.2
million, of which €1.7 million was booked as prepayments for a service
contract with Lain Technologies Ltd.
Corporate expenses for Q4 2023 totalled €4.7 million (Q4 2022: €4.6
million). This includes non-operating costs of the Cyprus office, corporate
legal and consultancy costs, ongoing listing costs, officers and directors'
emoluments, and salaries and related costs of the corporate office.
Exploration costs on Atalaya's project portfolio for the three-month period
ended 31 December 2023 amounted to €1.3 million compared to €3.8 million
in Q4 2022.
EBITDA for the three months ended 31 December 2023 amounted to €13.9 million
compared with Q4 2022 of €18.2 million.
The main item below the EBITDA line is depreciation and amortisation of
€10.6 million (Q4 2022: €8.8 million). In Q4 2023, net financing costs
amounted to a negative €0.4 million (compared to positive €1.0 million in
Q4 2022).
Twelve months financial review
Revenues for the twelve-month period ending 31 December 2023 totalled €340.3
million, compared to €361.8 million in FY 2022. This decline is primarily
attributed to reduced realised prices and lower concentrates sold.
Copper concentrate production during the twelve-month period ended 31 December
2023 was 249,321 tonnes (FY 2022: 249,543 tonnes) with 246,128 tonnes of
copper concentrates sold in the period (FY 2022: 251,268 tonnes). The
production levels remained similar in FY 2023. Inventories of concentrates as
at the reporting date were 6,722 tonnes (31 Dec 2022: 3,529 tonnes).
Realised copper prices, excluding QPs, for FY 2023 were US$3.80/lb copper
compared with US$3.96/lb copper in the same period of 2022. Concentrates were
sold under offtake agreements for the production not committed. The Company
did not enter into any hedging agreements in 2023.
Cost of sales for the twelve-month period ended 31 December 2023 amounted to
€247.3 million, compared with €289.6 million in FY 2022. Lower operating
costs in 2023 were due to a reduction in input costs compared with the 2022
period, where the high cost of electricity, diesel and other supplies were the
result of inflation and the geopolitical situation.
Cash costs of US$2.79/lb payable copper for FY 2023 show a decrease compared
to US$3.16/lb payable copper in the corresponding period last year. This
reduction in cash costs can be primarily attributed to a significant decrease
in electricity costs (approximately €52.5 million lower) and other supplies,
including freight prices. The AISC, excluding investment in the tailings dam
for the twelve-month period, stood at US$3.09/lb payable copper, a decrease
from US$3.37/lb payable copper in FY 2022. This decline is mainly a result of
lower cash costs, although partly offset by higher capitalised stripping
costs.
Sustaining capex for the twelve-month period ended 31 December 2023 amounted
to €3.4 million, compared with €6.2 million in the same period the
previous year. Sustaining capex related to enhancements in plant processing
systems. In addition, the Company invested €13.7 million in the project to
extend the tailings dam, compared with €14.1 million in 2022.
Capex associated with the construction of the 50 MW solar plant amounted to
€12.9 million in FY 2023, while investments in the E-LIX Phase I plant
totalled €18.1 million, of which €9.1 million was booked as prepayments
for service contract to Lain Technologies Ltd.
Corporate costs for the period ended December 2023 were €12.7 million,
compared with €10.0 million in FY 2022. Corporate costs mainly include the
Company's overhead expenses.
Exploration costs related to Atalaya's project portfolio for the twelve months
ended 31 December 2023 were €6.5 million compared to €4.3 million for the
same period last year. The major exploration work costs were incurred at
Proyecto Masa Valverde and Ossa Morena.
EBITDA for the twelve months ended 31 December 2023 amounted to €73.1
million, compared with €55.3 million in FY 2022.
Depreciation and amortisation amounted to €37.8 million for the twelve-month
period ended 31 December 2023 (FY 2022: €34.1 million).
Net foreign exchange loss amounted to €1.3 million in FY 2023 (€11.5
million gain in FY 2022).
For FY 2023, net finance income amounted to positive €2.1 million, compared
to net finance costs of €0.4 million in FY 2022. This increase is driven
mainly by the €3.5 million of interest received as a result of the agreement
reached with Astor on 17 May 2023.
Realised Copper Prices
The average prices of copper for 2023 and 2022 were:
$/lb 2023 2022
Realised copper price (excluding QPs) $/lb 3.80 3.96
Market copper price per lb (period average) $/lb 3.85 4.00
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 $3.82/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") and "realised
prices" 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 and before silver credits,
TC/RCs, penalties freights and other cost items included in the sales invoices
and booked as revenues. Realised price is consistent with the widely accepted
industry standard definition.
6. Liquidity and Capital Resources
Atalaya monitors factors that could impact its l5iquidity as part of the
Company'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 December 2023
and 2022, and cash flows for the twelve months ended 31 December 2023 and
2022.
Liquidity Information
(Euro 000's) 31 Dec 2023 31 Dec 2022
Unrestricted cash and cash equivalents at Group level 94,868 108,550
Unrestricted cash and cash equivalents at Operation level 26,139 17,567
Restricted cash and cash equivalents at Operation level - 331
Consolidated cash and cash equivalents 121,007 126,448
Net cash position 54,320 53,085
Working capital surplus 68,618 84,047
Unrestricted cash and cash equivalents as at 31 December 2023 decreased to
€121.0 million from €126.1 million at 31 December 2022. The increase in
cash balances is due to the cash outflows generated during 2023 mainly related
to financing activities. Cash balances are unrestricted and include balances
at operational and corporate level. Restricted cash amounted at 31 December
2022 to €0.3 million was held in escrow, which represented funds utilized by
the Company to cover possible remaining costs due to Astor following
litigation during 2022. However, due to the settlement reached with Astor on
17 May 2023 whereby Astor agreed to repay €3.5 million of interest
previously paid to it to finalise the litigation, the previously restricted
cash has now been released and reversed.
As of 31 December 2023, Atalaya reported a working capital surplus of €68.6
million, compared with a working capital surplus of €84.0 million at 31
December 2022. The decrease in working capital surplus in 2023 related to the
decrease in current liabilities. Cash decreased compared to the previous year.
At 31 December 2023, trade payables had decreased by 15.9% compared with the
same period last year, mainly attributed to the lower inflation.
The Directors consider the current net cash position as well as the existing
levels of the commodity prices and the current liquidity position to mitigate
any potential financial risks linked to the liquidity position of the Company.
Overview of the Group's Cash Flows
(Euro 000's) Twelve month ended 31 Dec 2023 Twelve month ended 31 Dec 2022
Cash flows from operating activities 64,743 38,503
Cash flows used in investing activities (50,406) (53,529)
Cash flows from financing activities (18,500) 22,411
Net increase in cash and cash equivalents (4,163) 7,385
Net foreign exchange differences (1,278) 11,546
Total net cash flow for the period (5,441) 18,931
In the twelve-month period ending 31 December 2023, cash and cash equivalents
experienced a decrease of €5.4 million. This reduction resulted from cash
generated by operating activities amounting to €64.7 million, offset by cash
used in investing activities totalling €50.4 million and financing
activities amounting to €18.5 million, along with a net foreign exchange
negative impact of €1.3 million.
Cash generated from operating activities before changes in working capital
reached €72.2 million, aligning with an EBITDA of €73.1 million. Atalaya
reduced its trade receivables by €10.9 million and inventory levels by
€5.5 million, while trade payables decreased by €14.9 million. The company
incurred corporate tax payments totalling €5.2 million during this period.
Investing activities for the year 2023 amounted to €50.4 million, primarily
directed towards capital expenditures related to the tailings dam project, the
solar plant, and ongoing improvements to the processing systems of the plant.
Financing activities in 2023 totalled €18.5 million, reflecting a decrease
in financing mainly attributed to dividends paid and the repayment of existing
unsecured credit facilities.
Foreign Exchange
In FY2023, Atalaya recognised a foreign exchange loss of €1.3 million
(FY2022 gain: €11.5 million). The foreign exchange gain mainly related to
variances in EUR and USD conversion rates during the period as all sales are
settled and occasionally held in USD.
The following table summarises the movement in key currencies versus the EUR:
Twelve months ended Twelve months ended
31 Dec 2023 31 Dec 2022
Average rates for the periods
GBP - EUR 0.8698 0.8528
USD - EUR 1.0813 1.0530
Spot rates as at
GBP - EUR 0.8691 0.8869
USD - EUR 1.105 1.0666
During 2023 and 2022, Atalaya did not have any currency hedging agreements.
7. 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.
8. Critical accounting policies, estimates, judgements, assumptions
and accounting changes
The preparation of Atalaya's Financial Statements in accordance with IFRS
requires management to made estimates and assumptions that affected amounts
reported in the Financial Statements and accompanying notes. There is a full
discussion and description of Atalaya's critical accounting estimates and
judgements in the audited consolidated financial statements for the year ended
31 December 2023.
9. Other Information
Additional information about Atalaya Mining Plc. is available at
www.atalayamining.com (http://www.atalayamining.com)
Consolidated financial statements on subsequent pages
By Order of the Board of Directors
Consolidated and Company Statements of Comprehensive Income
for the year ended 31 December 2023
The Group The Company The Group The Company
(Euro 000's) Note 2023 2023 2022 2022
Revenue 5 340,346 5,012 361,846 57,756
Operating costs and mine site administrative expenses (246,630) - (288,275) -
Mine site depreciation, amortisation and impairment 13,14 (37,800) - (34,119) -
Gross profit 55,916 5,012 39,452 57,756
Administration and other expenses (12,741) (5,822) (9,954) (3,601)
Share based benefits 23 (661) - (1,279) -
Exploration expenses (6,467) - (4,257) -
Care and maintenance expenditure (2,384) - (3,053) -
Other income 1,637 - 286 286
Operating profit 35,300 (810) 21,195 54,441
Net foreign exchange (loss)/gain 4 (1,278) (390) 11,546 3,439
Interest income from financial assets at fair value through profit and loss 8 - - - 9,157
Interest income from financial assets at amortised cost 8 5,393 14,604 624 3,779
Finance costs 9 (3,322) - (1,045) -
Profit before tax 36,093 13,404 32,320 70,816
Tax 10 570 (579) (1,394) (617)
Profit for the year 36,663 12,825 30,926 70,199
Profit for the year attributable to:
- Owners of the parent 38,769 12,825 33,155 70,199
- Non-controlling interests (2,106) - (2,229) -
36,663 12,825 30,926 70,199
Earnings per share from operations attributable to ordinary equity holders of
the parent during the year:
Basic earnings per share (EUR cents per share) 11 27.7 - 23.7 -
Diluted earnings per share (EUR cents per share) 11 26.9 - 23.2 -
Profit for the year 36,663 12,825 30,926 70,199
Other comprehensive income: - - - -
Other comprehensive income that will not be reclassified to profit or loss in
subsequent periods (net of tax):
Change in fair value of financial assets through other comprehensive income 20 (2) (2) (6) (6)
'OCI'
Total comprehensive income for the year 36,661 12,823 30,920 70,193
Total comprehensive income for the year attributable to: 38,767 12,823 33,149 70,193
- Owners of the parent (2,106) - (2,229) -
- Non-controlling interests 36,661 12,823 30,920 70,193
The notes on subsequent pages are an integral part of these consolidated and
company financial statements.
Consolidated and Company Statements of Financial Position
As at 31 December 2023
31 Dec 2023 31 Dec 2023 31 Dec 2022 31 Dec 2022
(Euro 000's) Note The Group The Company The Group The Company
Assets
Non-current assets
Property, plant and equipment 13 384,739 - 354,908 -
Intangible assets 14 49,397 - 53,830 -
Investment in subsidiaries 15 - 292,135 - 74,911
Trade and other receivables 19 26,702 227 16,362 259,904
Non-current financial asset 20 1,101 - 1,101 -
Deferred tax asset 17 11,282 - 7,293 -
473,221 292,362 433,494 334,815
Current assets - -
Inventories 18 33,314 - 38,841 -
Trade and other receivables 19 42,897 70,855 64,155 48,831
Tax refundable 100 - 100 -
Other financial assets 20 30 30 33 33
Cash and cash equivalents 21 121,007 58,958 126,448 39,472
197,348 129,843 229,577 88,336
Total assets 670,569 422,205 663,071 423,151
Equity and liabilities
Equity attributable to owners of the parent
Share capital 22 13,596 13,596 13,596 13,596
Share premium 22 319,411 319,411 319,411 319,411
Other reserves 23 70,463 10,077 69,805 9,419
Accumulated profit 98,026 76,563 70,483 75,216
501,496 419,647 473,295 417,642
Non-controlling interests 24 (9,104) - (6,998) -
Total equity 492,392 419,647 466,297 417,642
Liabilities
Non-current liabilities
Trade and other payables 25 2,205 - 2,015 -
Provisions 26 27,234 - 24,083 -
Lease liability 27 3,877 - 4,378 -
Borrowings 28 16,131 - 20,768 -
49,447 - 51,244 -
Current liabilities - -
Trade and other payables 25 75,922 2,369 90,022 5,402
Lease liability 27 501 - 536 -
Current tax liabilities 1,317 189 1,425 107
Provisions 26 434 - 952 -
Borrowings 28 50,556 - 52,595 -
128,730 2,558 145,530 5,509
Total liabilities 178,177 2,558 196,774 5,509
Total equity and liabilities 670,569 422,205 663,071 423,151
The notes on subsequent pages are an integral part of these consolidated and
company financial statements.
The consolidated and company financial statements were authorised for issue by
the Board of Directors on 18 March 2024 and were signed on its behalf.
Roger Davey Alberto Lavandeira
Chair Chief Execute Officer
Consolidated Statement of Changes in Equity
for the year ended 31 December 2023
(Euro 000's) Note Share capital Share premium ((2)) Other reserves ((1)) Accum. Profits Total NCI Total equity
1 Jan 2023 13,596 319,411 69,805 70,483 473,295 (6,998) 466,297
Profit/(loss) for the period - - - 38,769 38,769 (2,106) 36,663
Change in fair value of financial assets through other comprehensive income 20 - - (3) - (3) - (3)
'OCI'
Total comprehensive (loss)/income - - (3) 38,769 38,766 (2,106) 36,660
Recognition of share-based payments 23 - - 661 - 661 - 661
Other changes in equity - - - 252 252 - 252
Dividends paid 12 - - - (11,478) (11,478) - (11,478)
31 Dec 2023 13,596 319,411 70,463 98,026 501,496 (9,104) 492,392
(Euro 000's) Note Share capital Share premium ((2)) Other reserves ((1)) Accum. Profits Total NCI Total equity
1 Jan 2022 13,447 315,916 52,690 58,754 440,807 (4,909) 435,898
Profit/(loss) for the period - - - 33,155 33,155 (2,229) 30,926
Change in fair value of financial assets through other comprehensive income 20 - - (6) - (6) - (6)
'OCI'
Total comprehensive (loss)/income - - (6) 33,155 33,149 (2,229) 30,920
Issuance of share capital 22 149 3,495 - - 3,644 - 3,644
Recognition of depletion factor 23 - - 12,800 (12,800) - - -
Recognition of share-based payments 23 - - 1,279 - 1,279 - 1,279
Recognition of non-distributable reserve 23 - - 316 (316) - - -
Recognition of distributable reserve 23 - - 2,726 (2,726) - - -
Other changes in equity - - - (485) (485) 140 (345)
Dividends paid 12 - - - (5,099) (5,099) - (5,099)
31 Dec 2022 13,596 319,411 69,805 70,483 473,295 (6,998) 466,297
( )
((1)) Refer to Note 23
((2)) The share premium reserve is not available for distribution.
The notes on subsequent pages are an integral part of these consolidated and
company financial statements
Company Statement of Changes in Equity
for the year ended 31 December 2023
(Euro 000's) Note Share capital Share premium ((1)) Other reserves Accum. Profits Total
1 Jan 2022 13,447 315,916 8,146 10,116 347,625
Profit for the year - - - 70,199 70,199
Change in fair value of financial assets through other comprehensive income 20 - - (6) - (6)
'OCI'
Total comprehensive income - - (6) 70,199 70,193
Issuance of share capital 22 149 3,495 - - 3,644
Recognition of share-based payments 23 - - 1,279 - 1,279
Interim dividends paid - - - (5,099) (5,099)
31 Dec 2022/1 Jan 2023 13,596 319,411 9,419 75,216 417,642
Profit for the period - - - 12,825 12,825
Change in fair value of financial assets through other comprehensive income 20 - - (3) - (3)
'OCI'
Total comprehensive income - - (3) 12,825 12,822
Recognition of share-based payments 23 - - 661 - 661
Dividends paid - - - (11,478) (11,478)
31 Dec 2023 13,596 319,411 10,077 76,563 419,647
( )
((1)) Refer to Note 23
((2)) The share premium reserve is not available for distribution.
Companies, which do not distribute 70% of their profits after tax, as defined
by the relevant tax law in Cyprus, within two years after the end of the
relevant tax year, will be deemed to have distributed this amount as dividend
on the 31 December of the second year. The amount of the deemed dividend
distribution is reduced by any actual dividend already distributed by 31
December of the second year for the year the profits relate. The Company pays
special defence contribution on behalf of the shareholders over the amount of
the deemed dividend distribution at a rate of 17% when the entitled
shareholders are natural persons tax residents of Cyprus and have their
domicile in Cyprus. In addition, from 2019 General Healthcare System
contribution at a rate of 1.7% - 2.65%, when the entitled shareholders are
natural persons tax residents of Cyprus, regardless of their domicile.
The notes on subsequent pages are an integral part of these consolidated and
company financial statements.
Consolidated Statement of Cash Flows
for the year ended 31 December 2023
(Euro 000's) Note 2023 2022
Cash flows from operating activities
Profit before tax 36,093 32,320
Adjustments for:
Depreciation of property, plant and equipment 13 33,307 29,637
Amortisation of intangible assets 14 4,493 4,482
Recognition of share‑based payments 23 661 1,279
Interest income 8 (5,393) (244)
Interest expense 9 2,607 1,025
Unwinding of discounting 9 690 -
Legal provisions 26 1 (43)
Net foreign exchange differences 1,278 (11,546)
Unrealised foreign exchange (loss)/gain on financing activities (1,492) 25
Cash inflows from operating activities before working capital changes 72,245 56,935
Changes in working capital:
Inventories 18 5,527 (14,060)
Trade and other receivables 19 10,918 (24,471)
Trade and other payables 25 (14,924) 24,662
Provisions 26 (1,203) (91)
Cash flows from operations 72,563 42,975
Interest expense on lease liabilities 27 (25) (20)
Interest paid (2,607) (1,025)
Tax paid (5,188) (3,427)
Net cash from operating activities 64,743 38,503
Cash flows from investing activities
Purchases of property, plant and equipment 13 (53,837) (52,650)
Purchases of intangible assets 14 (460) (944)
Interest received 8 3,891 65
Net cash used in investing activities (50,406) (53,529)
Cash flows from financing activities
Lease payment 27 (536) (617)
Net (repayments)/proceeds from borrowings (6,486) 24,484
Proceeds from issue of share capital - 3,643
Dividends paid (11,478) (5,099)
Net cash (used in)/from financing activities (18,500) 22,411
Net increase in cash and cash equivalents (4,163) 7,385
Net foreign exchange difference (1,278) 11,546
Cash and cash equivalents:
At beginning of the year 21 126,448 107,517
At end of the year 21 121,007 126,448
The notes on subsequent pages are an integral part of these consolidated and
company financial statements.
Company Statement of Cash Flows
for the year ended 31 December 2023
(Euro 000's) Note 2023 2022
Cash flows from operating activities
Profit before tax 13,404 70,816
Adjustments for:
Interest income 8 (518) (36)
Interest income from interest-bearing intercompany loans 8 (14,087) (12,900)
Net foreign exchange difference 390 (3,439)
Unrealised foreign exchange loss on financing activities - (63)
Cash inflows (used in)/from operating activities before working capital (811) 54,378
changes
Changes in working capital:
Trade and other receivables 19 21,089 (61,273)
Trade and other payables 25 (3,030) 3,950
Cash flows from operations 17,247 (2,945)
Tax paid (498) (311)
Net cash from/(used in) operating activities 16,749 (3,256)
Cash flows from investing activities
Investment in subsidiaries 15 (1) (9,461)
Interest received 518 36
Interest income from interest-bearing intercompany loans 8 14,087 12,900
Net cash from investing activities 14,603 3,475
Cash flows from financing activities
Proceeds from issue of share capital 22 - 3,643
Dividends paid 12 (11,477) (5,099)
Net cash used in financing activities (11,477) (1,456)
Net increase/(decrease) in cash and cash equivalents 19,876 (1,237)
Net foreign exchange difference (390) 3,439
Cash and cash equivalents:
At beginning of the year 21 39,472 37,270
At end of the year 21 58,958 39,472
The notes on subsequent pages are an integral part of these consolidated and
company financial statements.
For non-cash transactions refer to Note 15.
Notes to the Consolidated and Company Financial Statements
for the year ended 31 December 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 listed on AIM of the London Stock Exchange in May 2005 under
the symbol ATYM. The Company continued to be listed on AIM as at 31 December
2023.
In February 2023, Atalaya announced its application for the voluntary
delisting of its ordinary shares from the Toronto Stock Exchange (the "TSX").
The delisting from the TSX took effect on 20 March 2023. Ordinary shares in
the Company continue to trade on the AIM market of the London Stock Exchange
under the symbol "ATYM".
Additional information about Atalaya Mining Plc is available at
www.atalayamining.com (http://www.atalayamining.com) as per requirement of AIM
rule 26.
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 three 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 three
investigation permits (known as Peñas Blancas, Cerro Negro and Herreros
investigation permits), which cover approximately 12,368 hectares and are
located immediately east of Proyecto Riotinto.
2. Summary of material accounting policies
The principal accounting policies applied in the preparation of these
consolidated and company financial statements are set out below. These
policies have been consistently applied to all the years presented, unless
otherwise stated.
2.1 Basis of preparation
(a) Overview
The financial statements of Atalaya Mining Plc have been prepared in
accordance with International Financial Reporting Standards ("IFRS"). IFRS
comprise the standards issued by the International Accounting Standards Board
("IASB").
The financial statements are presented in € and all values are rounded to
the nearest thousand (€'000), except where otherwise indicated.
Additionally, the financial statements have also been prepared in accordance
with the IFRS as adopted by the European Union and the requirements of the
Cyprus Companies Law, Cap.113. For the year ending 31 December 2023, the
standards applicable for IFRS's as adopted by the EU are aligned with the
IFRS's as issued by the IASB.
The consolidated financial statements 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
and in note 3.
The preparation of financial statements in conformity with IFRS requires the
use of certain critical accounting estimates. It also requires management to
exercise its judgment in the process of applying the Group's accounting
policies. The areas involving a higher degree of judgement or complexity, or
areas where assumptions and estimates are material to the financial statements
are disclosed in Note 3.3.
(b) Going concern
The Directors have considered and debated different possible scenarios on the
Company's operations, financial position and forecast for a period of at least
12 months since the approval of these financial statements. Possible scenarios
range from (i) disruption in Proyecto Riotinto; (ii) market volatility in
commodity and electricity prices; and (iii) availability of existing credit
facilities.
The Directors, after reviewing these scenarios, the current cash resources,
forecasts and budgets, timing of cash flows, borrowing facilities, sensitivity
analyses and considering the associated uncertainties to the Group's
operations have a reasonable expectation that the Company has adequate
resources to continue operating in the foreseeable future.
Accordingly, these financial statements have been prepared based on accounting
principles applicable to a going concern which assumes that the Group and the
Company 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 and the Company will
generate sufficient cash and cash equivalents to continue operating for the
next twelve months since the approval of these consolidated financial
statements.
Management continues to monitor the impact of geopolitical developments.
Currently no significant impact is expected in the operations of the Group.
2.2 Changes in accounting policy and disclosures
The Group has adopted all the new and revised IFRSs and International
Accounting Standards (IASs) which are relevant to its operations and are
effective for accounting periods commencing on 1 January 2023.
IFRS 17: Insurance Contracts
The standard is effective for annual periods beginning on or after 1 January
2023. This is a comprehensive new accounting standard for insurance contracts,
covering recognition and measurement, presentation and disclosure. IFRS 17
applies to all types of insurance contracts issued, as well as to certain
guarantees and financial instruments with discretional participation
contracts. These standards had no impact on the consolidated and parent
company financial statements.
IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2:
Disclosure of Accounting policies (Amendments)
The Amendments are effective for annual periods beginning on or after January
1, 2023. The amendments provide guidance on the application of materiality
judgements to accounting policy disclosures. In particular, the amendments to
IAS 1 replace the requirement to disclose 'significant' accounting policies
with a requirement to disclose 'material' accounting policies. Also, guidance
and illustrative examples are added in the Practice Statement to assist in the
application of the materiality concept when making judgements about accounting
policy disclosures. These amendments had no impact on the consolidated
financial statements of the Group.
IAS 8 Accounting policies, Changes in Accounting Estimates and Errors:
Definition of Accounting Estimates (Amendments)
The amendments become effective for annual reporting periods beginning on or
after January 1, 2023 and apply to changes in accounting policies and changes
in accounting estimates that occur on or after the start of that period. The
amendments introduce a new definition of accounting estimates, defined as
monetary amounts in financial statements that are subject to measurement
uncertainty, if they do not result from a correction of prior period error.
Also, the amendments clarify what changes in accounting estimates are and how
these differ from changes in accounting policies and corrections of errors.
These amendments had no impact on the consolidated financial statements of the
Group.
IAS 12 Income taxes: Deferred Tax related to Assets and Liabilities arising
from a Single Transaction (Amendments)
The amendments are effective for annual periods beginning on or after January
1, 2023. The amendments narrow the scope of and provide further clarity on the
initial recognition exception under IAS 12 and specify how companies should
account for deferred tax related to assets and liabilities arising from a
single transaction, such as leases and decommissioning obligations. The
amendments clarify that where payments that settle a liability are deductible
for tax purposes, it is a matter of judgement, having considered the
applicable tax law, whether such deductions are attributable for tax purposes
to the liability or to the related asset component. Under the amendments, the
initial recognition exception does not apply to transactions that, on initial
recognition, give rise to equal taxable and deductible temporary differences.
It only applies if the recognition of a lease asset and lease liability (or
decommissioning liability and decommissioning asset component) give rise to
taxable and deductible temporary differences that are not equal. These
amendments had no impact on the consolidated financial statements of the
Group.
IAS 12 Income taxes: International Tax Reform - Pillar Two Model Rules
(Amendments)
The amendments are effective immediately upon issuance, but certain disclosure
requirements are effective later. The Organisation for Economic Co-operation
and Development's (OECD) published the Pillar Two model rules in December 2021
to ensure that large multinational companies would be subject to a minimum 15%
tax rate. On 23 May 2023, the IASB issued International Tax Reform-Pillar Two
Model Rules - Amendments to IAS 12. The amendments introduce a mandatory
temporary exception to the accounting for deferred taxes arising from the
jurisdictional implementation of the Pillar Two model rules and disclosure
requirements for affected entities on the potential exposure to Pillar Two
income taxes. The Amendments require, for periods in which Pillar Two
legislation is (substantively) enacted but not yet effective, disclosure of
known or reasonably estimable information that helps users of financial
statements understand the entity's exposure arising from Pillar Two income
taxes. To comply with these requirements, an entity is required to disclose
qualitative and quantitative information about its exposure to Pillar Two
income taxes at the end of the reporting period. The disclosure of the current
tax expense related to Pillar Two income taxes and the disclosures in relation
to periods before the legislation is effective are required for annual
reporting periods beginning on or after 1 January 2023, but are not required
for any interim period ending on or before 31 December 2023. These amendments
had no impact on the consolidated financial statements of the Group as at 31
December 2023.
2.2.1 Standards issued but not yet effective and not yet adopted by 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 are not expected to have a
material impact on the Group.
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 are not expected to have a material impact on the Group.
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 have not yet been endorsed by the EU and
are not expected to have a material impact on the Group.
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 have not yet been
endorsed by the EU and are not expected to have a material impact on the
Group.
2.3 Consolidation
(a) Basis of consolidation
The consolidated financial statements comprise the financial statements of
Atalaya Mining Plc and its subsidiaries.
(b) Subsidiaries
Subsidiaries are all entities (including special purpose entities) over which
the Group and the Company has control. Control exists when the Group is
exposed, or has rights, to variable returns for its involvement with the
investee and has the ability to affect those returns through its power over
the investee. The existence and effect of potential voting rights that are
currently exercisable or convertible are considered when assessing whether the
Group controls another entity. The Group also assesses existence of control
where it does not have more than 50% of the voting power but is able to govern
the financial and operating policies by virtue of de-facto control.
De-facto control may arise in circumstances where the size of the Group's
voting rights relative to the size and dispersion of holdings of other
shareholders give the Group the power to govern the financial and operating
policies, etc.
The Group re-assesses whether it controls an investee if facts and
circumstances indicate that there are changes to one or more of the three
elements of control. Consolidation of a subsidiary begins when the Group
obtains control over the subsidiary and ceases when the Group loses control of
the subsidiary. Assets, liabilities, income and expenses of a subsidiary
acquired or disposed of during the year are included in the consolidated
financial statements from the date the Group gains control until the date the
Group ceases to control the subsidiary.
Profit or loss and each component of OCI are attributed to the equity holders
of the parent of the Group and to the non-controlling interests, even if this
results in the non-controlling interests having a deficit balance. When
necessary, adjustments are made to the financial statements of subsidiaries to
bring their accounting policies in line with the Group's accounting policies.
All intra-group assets and liabilities, equity, income, expenses and cash
flows relating to transactions between members of the Group are eliminated in
full on consolidation.
A change in the ownership interest of a subsidiary, without a loss of control,
is accounted for as an equity transaction.
Subsidiaries are fully consolidated from the date on which control is
transferred to the Group. If the Group loses control over a subsidiary, it
derecognises the related assets (including goodwill), liabilities,
non-controlling interest and other components of equity, while any resultant
gain or loss is recognised in profit or loss. Any investment retained is
recognised at fair value'.
The main operating subsidiary of Atalaya Mining Plc is the 100% owned Atalaya
Riotinto Minera, S.L.U. which operates "Proyecto Riotinto", in the historical
site of Huelva, Spain.
The name and shareholding of the entities included in the Group in these
financial statements are:
Entity name Business %((2)) Country
Atalaya Mining, Plc Holding n/a Cyprus
EMED Marketing Ltd. Trade 100% Cyprus
Atalaya Riotinto Minera, S.L.U. Operating 100% Spain
Recursos Cuenca Minera, S.L. ((3)) Dormant 50% Spain
Atalaya Minasderiotinto Project (UK), Ltd. Holding 100% United Kingdom
Eastern Mediterranean Exploration & Development, S.L.U. Dormant 100% Spain
Atalaya Touro (UK), Ltd. Holding 100% United Kingdom
Fundación ARM Trust 100% Spain
Cobre San Rafael, S.L. ((1)) Development 10% Spain
Atalaya Servicios Mineros, S.L.U. Holding 100% Spain
Atalaya Masa Valverde, S.L.U. Development 100% Spain
Atalaya Financing Ltd. Financing 100% Cyprus
Atalaya Ossa Morena, S.L. Development 99.9% Spain
Iberian Polimetal S.L. Development 100% Spain
Notes
((1) ) Cobre San Rafael, S.L. is the entity which holds the
mining rights of the Proyecto Touro. The Group has control in the management
of Cobre San Rafael, S.L., including one of the two Directors, management of
the financial books and the capacity to appoint the key personnel.
((2) ) The effective proportion of shares held as at 30 June 2023
and 31 December 2022 remained unchanged.
((3) ) Recursos Cuenca Minera is a joint venture with ARM, see
note 16.
((4) ) EMED Mining Spain, S.L. was disposed on 4 January 2022.
See note 29.
The Group applies the acquisition method to account for business combinations.
The consideration transferred for the acquisition of a subsidiary is the fair
value of the transferred assets, liabilities incurred by the former owners of
the acquiree, and the equity interests issued by the Group. The consideration
transferred includes the fair value of any asset or liability resulting from a
contingent consideration arrangement. Identifiable assets acquired,
liabilities and contingent liabilities assumed in a business combination are
measured initially at fair value at the acquisition date. The Group recognised
any non-controlling interest in the acquiree on an acquisition-by-acquisition
basis, either at fair value or at the non-controlling interest's proportionate
share of the recognised amounts of acquiree's identifiable net assets.
(c) Acquisition-related costs are expensed as incurred
If the business combination is achieved in stages, the acquisition date
carrying value of the acquirer's previously held equity interest in the
acquire is re-measured to fair value at the acquisition date; any gains or
losses arising from such re-measurement are recognised in profit or loss.
Any contingent consideration to be transferred by the Group is recognised at
fair value at the acquisition date. Subsequent changes to the fair value of
the contingent consideration that is deemed to be an asset or liability is
recognised in accordance with IFRS 9 in profit or loss. Contingent
consideration that is classified as equity is not re-measured, and its
subsequent settlement is accounted for within equity.
Inter-company transactions, balances, income and expenses on transactions
between Group companies are eliminated. Gains and losses resulting from
intercompany transactions that are recognised in assets are also eliminated.
Accounting policies of subsidiaries have been changed where necessary to
ensure consistency with the policies adopted by the Group.
(d) Changes in ownership interests in subsidiaries without change of control
Transactions with non-controlling interests that do not result in loss of
control are accounted for as equity transactions - that is, as transactions
with the owners in their capacity as owners. The difference between fair value
of any consideration paid and the relevant share acquired of the carrying
value of net assets of the subsidiary is recorded in equity. Gains or losses
on disposals to non-controlling interests are also recorded in equity.
(e) Disposal of subsidiaries
When the Group ceases to have control any retained interest in the entity is
re-measured to its fair value at the date when control is lost, with the
change in carrying amount recognised in profit or loss. The fair value is the
initial carrying amount for the purposes of subsequently accounting for the
retained interest as an associate, joint venture or financial asset. In
addition, any amounts previously recognised in other comprehensive income in
respect of that entity are accounted for as if the Group had directly disposed
of the related assets or liabilities. This may mean that amounts previously
recognised in other comprehensive income are reclassified to profit or loss.
(f) Associates and joint ventures
An associate is an entity over which the Group has significant influence.
Significant influence is the power to participate in the financial and
operating policy decisions of the investee (generally accompanying a
shareholding of between 20% and 50% of the voting rights) but is not control
or joint control over those policies.
A joint venture is a type of joint arrangement whereby the parties that have
joint control of the arrangement have rights to the net assets of the joint
venture. Joint control is the contractually agreed sharing of control of an
arrangement, which exists only when decisions about the relevant activities
require the unanimous consent of the parties sharing control.
Investments in associates or joint ventures are accounted for using the equity
method of accounting. Under the equity method, the investment is initially
recognised at cost, and the carrying amount is increased or decreased to
recognise the investor's share of the profit or loss of the investee after the
date of acquisition. The Group's investment in associates or joint ventures
includes goodwill identified on acquisition.
If the ownership interest in an associate or joint venture is reduced but
significant influence is retained, only a proportionate share of the amounts
previously recognised in other comprehensive income is reclassified to profit
or loss where appropriate.
The Group's share of post-acquisition profit or loss is recognised in the
income statement, and its share of post-acquisition movements in other
comprehensive income is recognised in other comprehensive income, with a
corresponding adjustment to the carrying amount of the investment. When the
Group share of losses in an associate or a joint venture equals or exceeds its
interest in the associate or joint venture, including any other unsecured
receivables, the Group does not recognise further losses, unless it has
incurred legal or constructive obligations or made payments on behalf of the
associate or the joint venture.
The Group determines at each reporting date whether there is any objective
evidence that the investment in the associate or the joint venture is
impaired. If this is the case, the Group calculates the amount of impairment
as the difference between the recoverable amount of the associate or the joint
venture and its carrying value and recognises the amount adjacent to 'share of
profit/(loss) of associates' or joint ventures' in the income statement.
Profits and losses resulting from upstream and downstream transactions between
the Group and its associate or joint venture are recognised in the Group's
consolidated financial statements only to the extent of unrelated investors'
interests in the associates or the joint ventures. Unrealised losses are
eliminated unless the transaction provides evidence of an impairment of the
asset transferred. Accounting policies of associates have been changed where
necessary to ensure consistency with the policies adopted by the Group.
Dilution gains and losses arising in investments in associates or joint
ventures are recognised in the income statement.
(g) Functional currency
Functional and presentation currency items included in the financial
statements of each of the Group's entities are measured using the currency of
the primary economic environment in which the entity operates ('the functional
currency'). The financial statements are presented in Euro which is the
Company's functional and presentation currency.
Determination of functional currency may involve certain judgements to
determine the primary economic environment and the parent entity reconsiders
the functional currency of its entities if there is a change in events and
conditions which determined the primary economic environment.
Foreign currency transactions are translated into the functional currency
using the spot exchange rates prevailing at the dates of the transactions or
valuation where items are re-measured. Foreign exchange gains and losses
resulting from the settlement of such transactions are recognised in the
income statement.
Monetary assets and liabilities denominated in foreign currencies are updated
at year-end spot exchange rates.
Non-monetary items that are measured at historical cost in a foreign currency
are translated using the exchange rates at the dates of the initial
transaction. Non-monetary items measured at fair value in a foreign currency
are translated using the exchange rates at the date when the fair value was
determined.
Gains or losses of monetary and non-monetary items are recognised in the
income statement.
Balance sheet items are translated at period-end exchange rates. Exchange
differences on translation of the net assets of such entities whose functional
currency are not the Euro are taken to equity and recorded in a separate
currency translation reserve.
2.4 Investments in subsidiary companies in the Company's financial statements
Investments in subsidiary companies are stated at cost less provision for
impairment in value, which is recognised as an expense in the period in which
the impairment is identified.
2.5 Interest in joint arrangements
A joint arrangement is a contractual arrangement whereby the Group and other
parties undertake an economic activity that is subject to joint control that
is when the strategic, financial and operating policy decisions relating to
the activities the joint arrangement require the unanimous consent of the
parties sharing control.
Where a Group entity undertakes its activities under joint arrangements
directly, the Group's share of jointly controlled assets and any liabilities
incurred jointly with other ventures are recognised in the financial
statements of the relevant entity and classified according to their nature.
Liabilities and expenses incurred directly in respect of interests in jointly
controlled assets are accounted for on an accrual basis. Income from the sale
or use of the Group's share of the output of jointly controlled assets, and
its share of joint arrangement expenses, are recognised when it is probable
that the economic benefits associated with the transactions will flow to/from
the Group and their amount can be measured reliably.
The Group enters joint arrangements that involve the establishment of a
separate entity in which each acquiree has an interest (jointly controlled
entity). The Group reports its interests in jointly controlled entities using
the equity method of accounting.
Where the Group transacts with its jointly controlled entities, unrealised
profits and losses are eliminated to the extent of the Group's interest in the
joint arrangement.
2.6 Segment reporting
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision-maker. The chief operating
decision-maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the CEO who
makes strategic decisions.
The Group has only one distinct business segment, being that of mining
operations, mineral exploration and development.
2.7 Inventory
Inventory consists of copper concentrates, ore stockpiles and metal in circuit
and spare parts. Inventory is physically measured or estimated and valued at
the lower of cost or net realisable value. Net realisable value is the
estimated future sales price of the product the entity expects to realise when
the product is processed and sold, less estimated costs to complete production
and bring the product to sale. Where the time value of money is material,
these future prices and costs to complete are discounted.
Cost is determined by using the FIFO method and comprises direct purchase
costs and an appropriate portion of fixed and variable overhead costs,
including depreciation and amortisation, incurred in converting materials into
finished goods, based on the normal production capacity. The cost of
production is allocated to joint products using a ratio of spot prices by
volume at each month end. Separately identifiable costs of conversion of each
metal are specifically allocated.
Materials and supplies are valued at the lower of cost or net realisable
value. Any provision for obsolescence is determined by reference to specific
items of stock. A regular review is undertaken to determine the extent of any
provision for obsolescence.
2.8 Assets under construction
All subsequent expenditure on the construction, installation or completion of
infrastructure facilities including mine plants and other necessary works for
mining, are capitalised in "Assets under Construction". Any costs incurred in
testing the assets to determine if they are functioning as intended, are
capitalised, net of any proceeds received from selling any product produced
while testing. Where these proceeds exceed the cost of testing, any excess is
recognised in the statement of profit or loss and other comprehensive income.
After production starts, all assets included in "Assets under Construction"
are then transferred to the relevant asset categories.
Once a project has been established as commercially viable, related
development expenditure is capitalised. A development decision is made based
upon consideration of project economics, including future metal prices,
reserves and resources, and estimated operating and capital costs.
Capitalisation of costs incurred and proceeds received during the development
phase ceases when the property is capable of operating at levels intended by
management.
Capitalisation ceases when the mine is capable of commercial production,
except for development costs which give rise to a future benefit.
Pre-commissioning sales are offset against the cost of assets under
construction. No depreciation is recognised until the assets are substantially
complete and ready for productive use.
2.9 Property, plant and equipment
Property, plant and equipment are stated at historical cost less accumulated
depreciation and any accumulated impairment losses.
Subsequent costs are included in the assets' carrying amount or recognised as
a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Group and the cost
of the item can be measured reliably. The carrying amount of the replaced part
is derecognised. All other repairs and maintenance are charged to the income
statement during the financial period in which they are incurred.
Property, plant and equipment are depreciated to their estimated residual
value over the estimated useful life of the specific asset concerned, or the
estimated remaining life of the associated mine ("LOM"), field or lease.
Depreciation commences when the asset is available for use.
The major categories of property, plant and equipment are
depreciated/amortised on a Unit of Production ("UOP") and/or straight-line
basis as follows:
Buildings UOP
Mineral rights UOP
Deferred mining costs UOP
Plant and machinery UOP
Motor vehicles 5 years
Furniture/fixtures/office equipment 5 - 10 years
The Group reviews the estimated residual values and expected useful lives of
assets at least annually. In particular, the Group considers the impact of
health, safety and environmental legislation in its assessment of expected
useful lives and estimated residual values. Furthermore, the Group considers
climate-related matters, including physical and transition risks.
Specifically, the Group determines whether climate-related legislation and
regulations might impact either the useful life or residual values, e.g., by
banning or restricting the use of the Group's fossil fuel-driven machinery and
equipment or imposing additional energy efficiency requirements on the Group's
buildings and office properties. An asset's carrying amount is written down
immediately to its recoverable amount if the asset's carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with
the carrying amount and are recognised within "Other income" in the income
statement.
(a) Mineral rights
Mineral reserves and resources which can be reasonably valued are recognised
in the assessment of fair values on acquisition. Mineral rights for which
values cannot be reasonably determined are not recognised. Exploitable mineral
rights are amortised using the UOP basis over the commercially recoverable
reserves and, in certain circumstances, other mineral resources. Mineral
resources are included in amortisation calculations where there is a high
degree of confidence that they will be extracted in an economic manner.
(b) Deferred mining costs - stripping costs
Mainly comprises of certain capitalised costs related to pre-production and
in-production stripping activities as outlined below.
Stripping costs incurred in the development phase of a mine (or pit) before
production commences are capitalised as part of the cost of constructing the
mine (or pit) and subsequently amortised over the life of the mine (or pit) on
a UOP basis.
In-production stripping costs related to accessing an identifiable component
of the ore body to realise benefits in the form of improved access to ore to
be mined in the future (stripping activity asset), are capitalised within
deferred mining costs provided all the following conditions are met:
i. it is probable that the future economic benefit associated with
the stripping activity will be realised;
ii. the component of the ore body for which access has been improved
can be identified and;
iii. the costs relating to the stripping activity associated with the
improved access can be reliably measured.
If all of the criteria are not met, the production stripping costs are charged
to the consolidated statement of income as they are incurred.
The stripping activity asset is initially measured at cost, which is the
accumulation of costs directly incurred to perform the stripping activity that
improves access to the identified component of ore, plus an allocation of
directly attributable overhead costs.
(c) Exploration costs
Under the Group's accounting policy, exploration expenditure is not
capitalised until the management determines a property will be developed and
point is reached at which there is a high degree of confidence in the
project's viability and it is considered probable that future economic
benefits will flow to the Group. A development decision is made based upon
consideration of project economics, including future metal prices, reserves
and resources, and estimated operating and capital costs.
Subsequent recovery of the resulting carrying value depends on successful
development or sale of the undeveloped project. If a project does not prove
viable, all irrecoverable costs associated with the project net of any related
impairment provisions are written off.
(d) Major maintenance and repairs
Expenditure on major maintenance refits or repairs comprises the cost of
replacement assets or parts of assets and overhaul costs. Where an asset, or
part of an asset, that was separately depreciated and is now written off is
replaced, and it is probable that future economic benefits associated with the
item will flow to the Group through an extended life, the expenditure is
capitalised.
Where part of the asset was not separately considered as a component and
therefore not depreciated separately, the replacement value is used to
estimate the carrying amount of the replaced asset(s) which is immediately
written off. All other day-to-day maintenance and repairs costs are expensed
as incurred.
(e) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or
production of an asset that necessarily takes a substantial period of time to
get ready for its intended use or sale (a qualifying asset) are capitalised as
part of the cost of the respective asset. Where funds are borrowed
specifically to finance a project, the amount capitalised represents the
actual borrowing costs incurred. All other borrowing costs are recognised in
the statement of profit or loss and other comprehensive income in the period
in which they are incurred.
(f) Restoration, rehabilitation and decommissioning
Restoration, rehabilitation and decommissioning costs arising from the
installation of plant and other site preparation work, discounted using a risk
adjusted discount rate to their net present value, are provided for and
capitalised at the time such an obligation arises.
The costs are charged to the consolidated statement of income over the life of
the operation through depreciation of the asset and the unwinding of the
discount on the provision. Costs for restoration of subsequent site
disturbance, which are created on an ongoing basis during production, are
provided for at their net present values and charged to the consolidated
statement of income as extraction progresses.
Changes in the estimated timing of the rehabilitation or changes to the
estimated future costs are accounted for prospectively by recognising an
adjustment to the rehabilitation liability and a corresponding adjustment to
the asset to which it relates, provided the reduction in the provision is not
greater than the depreciated capitalised cost of the related asset, in which
case the capitalised cost is reduced to zero and the remaining adjustment
recognised in the consolidated statement of income. In the case of closed
sites, changes to estimated costs are recognised immediately in the
consolidated statement of income.
2.10 Intangible assets
(a) Business combination and goodwill
Goodwill arises on the acquisition of subsidiaries and represents the excess
of the consideration transferred over the acquired interest in net fair value
of the net identifiable assets, liabilities and contingent liabilities of the
acquiree and the fair value of the non-controlling interest in the acquiree.
The results of businesses acquired during the year are brought into the
consolidated financial statements from the effective date of acquisition. The
identifiable assets, liabilities and contingent liabilities of a business
which can be measured reliably are recorded at their provisional fair values
at the date of acquisition. Acquisition-related costs are expensed as
incurred.
Goodwill impairment reviews are undertaken annually or more frequently if
events or changes in circumstances indicate a potential impairment. The
carrying value of goodwill is compared to the recoverable amount, which is the
higher of value in use and the fair value less costs to sell. Any impairment
is recognised immediately as an expense and is not subsequently reversed.
For the purposes of goodwill impairment testing, goodwill acquired in a
business combination is allocated to groups of CGUs that are expected to
benefit from the synergies of the combination.
An impairment loss in respect of goodwill is not reversed.
(b) Permits
Permits are capitalised as intangible assets which relate to projects that are
at the pre-development stage. No amortisation charge is recognised in respect
of these intangible assets. Once the Group receives those permits and commence
production, the intangible assets relating to permits will be depreciated on a
UOP basis.
(c) Other intangible assets include computer software.
Intangible assets acquired separately are measured on initial recognition at
cost. The cost of intangible assets acquired in a business combination is
their fair value at the date of acquisition provided they meet recognition
criteria as per IFRS 3. Following initial recognition, intangible assets are
carried at cost less any accumulated amortisation (calculated on a
straight-line basis over their useful lives) and accumulated impairment
losses, if any.
The useful lives of intangible assets are assessed as either finite or
indefinite.
Intangible assets with finite lives are amortised over their useful economic
lives and assessed for impairment whenever there is an indication that the
intangible asset may be impaired. The amortisation period and the amortisation
method for an intangible asset with a finite useful life are reviewed at least
at the end of each reporting period.
Gains or losses arising from derecognition of an intangible asset are measured
as the difference between the net disposal proceeds and the carrying amount of
the asset and are recognised in the consolidated and company statements of
comprehensive income when the asset is derecognised.
2.11 Impairment of non-financial assets
Assets that have an indefinite useful life - for example, goodwill or
intangible assets not ready for use - are not subject to amortisation and are
tested annually for impairment. Assets that are subject to amortisation are
reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the asset's carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset's fair
value less costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (cash-generating units). Non-financial
assets other than goodwill that suffered impairment are reviewed for possible
reversal of the impairment at each reporting date.
The Group assesses whether climate risks, including physical risks and
transition risks could have a significant impact.
2.12 Financial assets and liabilities
2.12.1 Classification
The Group classifies its financial assets in the following measurement
categories:
• those to be measured at amortised cost.
• those to be measured subsequently at fair value through
OCI, and.
• those to be measured subsequently at fair value through
profit or loss.
The classification of financial assets at initial recognition depends on the
financial asset's contractual cash flow characteristics and the Group's and
the Company's business model for managing them. In order for a financial asset
to be classified and measured at amortised cost, it needs to give rise to cash
flows that are 'solely payments of principal and interest' ('SPPI') on the
principal amount outstanding. This assessment is referred to as the SPPI test
and is performed at an instrument level.
For assets measured at fair value, gains and losses will either be recorded in
profit or loss or OCI. For investments in equity instruments that are not held
for trading, this will depend on whether the group has made an irrevocable
election at the time of initial recognition to account for the equity
investment at fair value through other comprehensive income (FVOCI).
The Group reclassifies debt investments when and only when its business model
for managing those assets changes.
Regular way purchases and sales of financial assets are recognised on
trade-date, the date on which the Group commits to purchase or sell the
asset.
At initial recognition, the Group measures a financial asset at its fair value
plus, in the case of a financial asset not at fair value through profit or
loss (FVPL), transaction costs that are directly attributable to the
acquisition of the financial asset. Transaction costs of financial assets
carried at FVPL are expensed in profit or loss.
Financial assets with embedded derivatives are considered in their entirety
when determining whether their cash flows are solely payment of principal and
interest.
Subsequent measurement of debt instruments depends on the Group's business
model for managing the asset and the cash flow characteristics of the asset.
There are three measurement categories into which the Group classifies its
debt instruments:
2.12.2 Amortised cost
Assets that are held for collection of contractual cash flows where those cash
flows represent solely payments of principal and interest are measured at
amortised cost. Interest income from these financial assets is included in
finance income using the effective interest rate method. Any gain or loss
arising on derecognition is recognised directly in profit or loss and
presented in other gains/(losses) together with foreign exchange gains and
losses.
Impairment losses are presented as separate line item in the statement of
profit or loss.
The Company´s financial assets at amortised cost include current and
non-current receivables (other than trade receivables which are measured at
fair value through profit and loss) and cash and cash equivalents.
2.12.3 Fair value through other comprehensive income
Financial assets which are debt instruments, that are held for collection of
contractual cash flows and for selling the financial assets, where the assets'
cash flows represent solely payments of principal and interest, are measured
at FVOCI. Movements in the carrying amount are taken through OCI, except for
the recognition of impairment gains or losses, interest income and foreign
exchange gains and losses which are recognised in profit or loss. When the
financial asset is derecognised, the cumulative gain or loss previously
recognised in OCI is reclassified from equity to profit or loss and recognised
in other gains/(losses). Interest income from these financial assets is
included in finance income using the effective interest rate method. Foreign
exchange gains and losses are presented in net foreign exchange gain/(loss)
before tax and impairment expenses are presented as a separate line item in
the statement of profit or loss.
2.12.4 Equity instruments designated as fair value through other comprehensive
income
Upon initial recognition, the Group can elect to classify irrevocably its
equity investments as equity instruments designated at fair value through OCI
when they meet the definition of equity under IAS 32 Financial Instruments:
Presentation and are not held for trading. The classification is determined on
an instrument-by-instrument basis.
Gains and losses on these financial assets are never recycled to profit or
loss. Dividends are recognised as other income in the consolidated and company
statements of comprehensive income when the right of payment has been
established, except when the Group benefits from such proceeds as a recovery
of part of the cost of the financial asset, in which case, such gains are
recorded in OCI. Equity instruments designated at fair value through OCI are
not subject to impairment assessment.
The Group elected to classify irrevocably its listed equity investments under
this category.
2.12.5 Assets at fair value through profit and loss
Assets that do not meet the criteria for amortised cost or FVOCI are measured
at FVPL. A gain or loss on a debt investment that is subsequently measured at
FVPL is recognised as profit or loss and presented net within other
gains/(losses) in the period in which it arises.
Changes in the fair value of financial assets at FVPL are recognised in the
consolidated and company statements of comprehensive income as applicable. The
Company's and Group's financial assets at fair value through profit and loss
include current and non-current receivables (other than trade receivables
which are measured at amortised cost).
2.12.6 De-recognition of financial assets
Financial assets are derecognised when the rights to receive cash flows from
the financial assets have expired or have been transferred and the Group has
transferred substantially all the risks and rewards of ownership.
2.12.7 Impairment of financial assets
The Group assesses on a forward looking basis the expected credit losses
associated with its debt instruments carried at amortised cost. Expected
credit losses are based on the difference between the contractual cash flows
due in accordance with the contract and all the cash flows that the Group
expects to receive, discounted at an approximation of the original effective
interest rate. The expected cash flows will include cash flows from the sale
of collateral held or other credit enhancements that are integral to the
contractual terms.
For receivables (other than trade receivables which are measured at FVPL), the
Group applies the simplified approach permitted by IFRS 9, which requires
expected lifetime losses to be recognised from initial recognition of the
receivables.
The Group considers a financial asset in default when contractual payments are
90 days past due. However, in certain cases, the Group may also consider a
financial asset to be in default when internal or external information
indicates that the Group is unlikely to receive the outstanding contractual
amounts in full before taking into account any credit enhancements held by the
Group. A financial asset is written off when there is no reasonable
expectation of recovering the contractual cash flows and usually occurs when
past due for more than one year and not subject to enforcement activity.
2.12.8. Financial liabilities and trade payables
After initial recognition, interest-bearing loans and borrowings and trade and
other payables are subsequently measured at amortised cost using the EIR
method. Gains and losses are recognised in the consolidated and company
statements of comprehensive income when the liabilities are derecognised, as
well as through the EIR amortisation process.
Amortised cost is calculated by taking any discount or premium on acquisition
and fees or costs that are an integral part of the EIR, into account. The EIR
amortisation is included as finance costs in the consolidated and company
statements of comprehensive income
2.13 Current versus Non-current Classification
The Group presents assets and liabilities in the consolidated and company
statements of financial position based on current/non-current classification.
(a) An asset is current when it is either:
· Expected to be realised or intended to be sold or consumed in
normal operating cycle;
· Held primarily for the purpose of trading;
· Expected to be realised within 12 months after the reporting
period
Or
· Cash or cash equivalent unless restricted from being exchanged or
used to settle a liability for at least 12 months after the reporting period
All other assets are classified as non-current.
(b) A liability is current when either:
· It is expected to be settled in the normal operating cycle;
· It is held primarily for the purpose of trading
· It is due to be settled within 12 months after the reporting
period
Or
· There is no unconditional right to defer the settlement of the
liability for at least 12 months after the reporting period
The Group classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and
liabilities.
2.14 Cash and cash equivalents
In the consolidated and company statements of cash flows, cash and cash
equivalents includes cash in hand and in bank including deposits held at call
with banks, with a maturity of less than 3 months.
2.15 Provisions
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 the amount has been
reliably estimated. Provisions are not recognised for future operating losses.
2.16 Interest-bearing loans and borrowings
Where there are a number of similar obligations, the likelihood that an
outflow will be required in settlement is determined by considering the class
of obligations as a whole. A provision is recognised even if the likelihood of
an outflow with respect to any one item included in the same class of
obligations may be small. Provisions are measured at the present value of the
expenditures expected to be required to settle the obligation using a pre-tax
rate that reflects current market assessments of the time value of money and
the risks specific to the obligation. The increase in the provision due to
passage of time is recognised as interest expense.
Borrowings are recognised initially at fair value, net of transaction costs
incurred. Borrowings are subsequently stated at amortised cost. Any difference
between the proceeds (net of transaction costs) and the redemption value is
recognised in profit or loss over the period of the borrowings, using the
effective interest method, unless they are directly attributable to the
acquisition, construction or production of a qualifying asset, in which case
they are capitalised as part of the cost of that asset.
Fees paid on the establishment of loan facilities are recognised as
transaction costs of the loan to the extent that it is probable that some or
all of the facility will be drawn down. In this case, the fee is deferred
until the draw-down occurs. To the extent there is no evidence that it is
probable that some or all of the facility will be drawn down, the fee is
capitalised as a prepayment and amortised over the period of the facility to
which it relates.
Borrowing costs are interest and other costs that the Group incurs in
connection with the borrowing of funds, including interest on borrowings,
amortisation of discounts or premium relating to borrowings, amortisation of
ancillary costs incurred in connection with the arrangement of borrowings,
finance lease charges and exchange differences arising from foreign currency
borrowings to the extent that they are regarded as an adjustment to interest
costs.
2.17 Deferred consideration
Deferred consideration arises when settlement of all or any part of the cost
of an agreement is deferred. It is stated at fair value at the date of
recognition, which is determined by discounting the amount due to present
value at that date. Interest is imputed on the fair value of
non-interest-bearing deferred consideration at the discount rate and expensed
within interest payable and similar charges. At each balance sheet date
deferred consideration comprises the remaining deferred consideration valued
at acquisition plus interest imputed on such amounts from recognition to the
balance sheet date.
2.18 Share capital
Ordinary shares are classified as equity. The difference between the fair
value of the consideration received by the Company and the nominal value of
the share capital being issued is taken to the share premium account.
Incremental costs directly attributable to the issue of new ordinary shares
are shown in equity as a deduction, net of tax, from the proceeds in the share
premium account.
2.19 Current and deferred income tax
The tax expense for the period comprises current and deferred tax. Tax is
recognised in the income statement, except to the extent that it relates to
items recognised in other comprehensive income or directly in equity. In this
case, the tax is also recognised in other comprehensive income or directly in
equity, respectively.
The current income tax charge is calculated on the basis of the tax laws
enacted or substantively enacted at the end of the reporting period date in
the countries where the Company and its subsidiaries operate and generate
taxable income. Management periodically evaluates positions taken in tax
returns with respect to situations in which applicable tax regulation is
subject to interpretation. It establishes provisions where appropriate on the
basis of amounts expected to be paid to the tax authorities.
Deferred income tax is recognised, using the liability method, on temporary
differences arising between the tax bases of assets and liabilities and their
carrying amounts in the consolidated financial statements. However, deferred
tax liabilities are not recognised if they arise from the initial recognition
of goodwill; deferred income tax is also not recognised if it arises from
initial recognition of an asset or liability in a transaction other than a
business combination that at the time of the transaction affects neither
accounting nor taxable profit or loss. Income tax is determined using tax
rates (and laws) that have been enacted or substantively enacted by the end of
the reporting period date and are expected to apply when the related deferred
tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised only to the extent that it is probable that
future taxable profit will be available against which the temporary
differences can be utilised.
Deferred income tax is provided on temporary differences arising on
investments in subsidiaries and associates, except for deferred income tax
liabilities where the timing of the reversal of the temporary difference is
controlled by the Group and it is probable that the temporary difference will
not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to offset current tax assets against current tax liabilities
and when the deferred income tax assets and liabilities relate to income taxes
levied by the same taxation authority on either the same taxable entity or
different taxable entities where there is an intention to settle the balances
on a net basis.
In assessing the recoverability of deferred tax assets, the Group relies on
the same forecast assumptions used elsewhere in the financial statements and
in other management reports, which, among other things, reflect the potential
impact of climate-related development on the business, such as increased cost
of production as a result of measures to reduce carbon emission.
2.20 Share-based payments
The Group operates a share-based compensation plan, under which the entity
receives services from employees as consideration for equity instruments
(options) of the Group. The fair value of the employee services received in
exchange for the grant of the options is recognised as an expense. The fair
value is measured using the Black Scholes pricing model. The inputs used in
the model are based on management's best estimates for the effects of
non-transferability, exercise restrictions and behavioural considerations.
Non-market performance and service conditions are included in assumptions
about the number of options that are expected to vest.
Vesting conditions are: (i) the personnel should be an employee that provides
services to the Group; and (ii) should be in continuous employment for the
whole vesting period of 3 years. Specific arrangements may exist with senior
managers and board members, whereby their options stay in use until the end.
The total expense is recognised over the vesting period, which is the period
over which all of the specified vesting conditions are to be satisfied (Note
23).
2.21 Rehabilitation provisions
The Group records the present value of estimated costs of legal and
constructive obligations required to restore operating locations in the period
in which the obligation is incurred. The nature of these restoration
activities includes dismantling and removing structures, rehabilitating mines
and tailings dams, dismantling operating facilities, closure of plant and
waste sites and restoration, reclamation and re-vegetation of affected areas.
The obligation generally arises when the asset is installed, or the
ground/environment is disturbed at the production location. When the liability
is initially recognised, the present value of the estimated cost is
capitalised by increasing the carrying amount of the related mining assets to
the extent that it was incurred prior to the production of related ore. Over
time, the discounted liability is increased for the change in present value
based on the discount rates that reflect current market assessments and the
risks specific to the liability. The periodic unwinding of the discount is
recognised in the consolidated income statement as a finance cost. Additional
disturbances or changes in rehabilitation costs will be recognised as
additions or charges to the corresponding assets and rehabilitation liability
when they occur. For closed sites, changes to estimated costs are recognised
immediately in the consolidated income statement.
The Group assesses its mine rehabilitation provision annually. Material
estimates and assumptions are made in determining the provision for mine
rehabilitation as there are numerous factors that will affect the ultimate
liability payable. These factors include estimates of the extent and costs of
rehabilitation activities, technological changes, regulatory changes and
changes in discount rates. Those uncertainties may result in future actual
expenditure differing from the amounts currently provided. The provision at
the consolidated statement of financial position date represents management's
best estimate of the present value of the future rehabilitation costs
required.
The impact of climate-related matters, such as changes in environmental
regulations and other relevant legislation, is considered by the Group in
estimating the rehabilitation provision on the manufacturing facility. Changes
in the estimated future costs, or in the discount rate applied, are added to
or deducted from the cost of the asset.
2.22 Leases
The determination of whether an arrangement is, or contains a lease is based
on the substance of the arrangement at inception date including whether the
fulfilment of the arrangement is dependent on the use of a specific asset or
assets or the arrangement conveys a right to use the asset.
The Group assesses at contract inception whether a contract is, or contains, a
lease. That is, if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration.
The Group applies a single recognition and measurement approach for all
leases, except for short-term leases and leases of low-value assets. The Group
recognises lease liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets.
A reassessment is made after inception of the lease only if one of the
following applies:
a) There is a change in contractual terms, other than a renewal or extension
of the arrangement;
b) A renewal option is exercised, or extension granted, unless the term of the
renewal or extension was initially included in the lease term;
c) There is a change in the determination of whether fulfilment is dependent
on a specified asset; or
d) There is a substantial change to the asset.
Group as a lessee
The Group has lease contracts for various items of laboratory equipment, motor
vehicle, lands and buildings used in its operations. Leases of laboratory
equipment and motor vehicles generally have lease terms for four years, while
lands and buildings generally have lease terms for the life of mine, currently
after 13 years of operation. The Group's obligations under its leases are
secured by the lessor's title to the leased assets. Generally, the Group is
restricted from assigning and subleasing the leased assets.
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease
(i.e., the date the underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated depreciation and impairment
losses, and adjusted for any remeasurement of lease liabilities.
The cost of right-of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease payments made at or
before the commencement date less any lease incentives received. Unless the
Group is reasonably certain to obtain ownership of the leased asset at the end
of the lease term, the recognised right-of-use assets are depreciated on a
straight-line basis over the shorter of its estimated useful life and the
lease term. Right-of-use assets are subject to impairment.
After initial measurement, the right-of-use assets are depreciated from the
commencement date using the straight-line method over the shorter of the
estimated useful lives of the right-of-use assets or the end of lease term.
These are as follows:
Right-of-use asset Depreciation terms in years
Lands and buildings Based on Units of Production (UOP)
Motor vehicles Based on straight line depreciation
Laboratory equipment Based on straight line depreciation
After the commencement date, the right-of-use assets are measured at cost less
any accumulated depreciation and any accumulated impairment losses and
adjusted for any remeasurement of the lease liability.
Lease liabilities
The lease liability is initially measured at the present value of the lease
payments that are not paid at the commencement date, discounted using the
interest rate implicit in the lease or, if that rate cannot be readily
determined, the Group's incremental borrowing rate. Generally, the Group uses
its incremental borrowing rate as the discount rate. Lease payments included
in the measurement of the lease liability include the following:
· Fixed payments, less any lease incentives receivable
· Variable lease payments that depend on an index or rate,
initially measured using the index or rate as at the commencement date
· Amounts expected to be payable by the lessee under residual value
guarantees
· The exercise price of a purchase option if the lessee is
reasonably certain to exercise that option
· Lease payments in an optional renewal period if the Group is
reasonably certain to exercise an extension option
· Payments of penalties for early terminating the lease, unless the
Group is reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest
rate method. After the commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and reduced for the lease
payments made. In addition, the carrying amount of lease liabilities is
re-measured if there is a modification, a change in the lease term, a change
in the in-substance fixed lease payments or a change in the assessment to
purchase the underlying asset. The result of this re-measurement is disclosed
in a line of the right-of-use assets note as modifications.
When the lease liability is remeasured, a corresponding adjustment is made to
the carrying amount of the right-of-use asset or is recorded as profit or loss
if the carrying amount of the right-of-use asset has been reduced to zero.
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term
leases of machinery and equipment (i.e., those leases that have a lease term
of 12 months or less from the commencement date and do not contain a purchase
option). It also applies the lease of low-value assets recognition exemption
to leases of office equipment that are considered of low value (i.e., below
€5,000). Lease payments on short-term leases and leases of low-value assets
are recognised as expense on a straight-line basis over the lease term.
2.23 Revenue recognition
(a) Revenue from contracts with customers
Atalaya is principally engaged in the business of producing copper concentrate
and in some instances, provides freight/shipping services. Revenue from
contracts with customers is recognised when control of the goods or services
is transferred to the customer at an amount that reflects the consideration to
which Atalaya expects to be entitled in exchange for those goods or
services. Atalaya has concluded that it is the principal in its revenue
contracts because it controls the goods or services before transferring them
to the customer.
(b) Copper in concentrate (metal in concentrate) sales
For most copper in concentrate (metal in concentrate) sales, the enforceable
contract is each purchase order, which is an individual, short-term
contract. For the Group's metal in concentrate sales not sold under CIF
Incoterms, the performance obligations are the delivery of the concentrate. A
proportion of the Group's metal in concentrate sales are sold under CIF
Incoterms, whereby the Group is also responsible for providing freight
services. In these situations, the freight services also represent separate
performance obligation (see paragraph (c) below).
The majority of the Group's sales of metal in concentrate allow for price
adjustments based on the market price at the end of the relevant QP stipulated
in the contract. These are referred to as provisional pricing arrangements and
are such that the selling price for metal in concentrate is based on
prevailing spot prices on a specified future date after shipment to the
customer. Adjustments to the sales price occur based on movements in quoted
market prices up to the end of the QP. The period between provisional
invoicing and the end of the QP can be between one and three months.
Revenue is recognised when control passes to the customer, which occurs at a
point in time when the metal in concentrate is physically transferred onto a
vessel, train, conveyor or other delivery mechanism. The revenue is measured
at the amount to which the Group expects to be entitled, being the estimate of
the price expected to be received at the end of the QP, i.e., the forward
price, and a corresponding trade receivable is recognised. For those
arrangements subject to CIF shipping terms, a portion of the transaction price
is allocated to the separate freight services provided (See paragraph (c)
below).
For these provisional pricing arrangements, any future changes that occur over
the QP are included within the provisionally priced trade receivables and are,
therefore, within the scope of IFRS 9 and not within the scope of IFRS 15.
Given the exposure to the commodity price, these provisionally priced trade
receivables will fail the cash flow characteristics test within IFRS 9 and
will be required to be measured at fair value through profit or loss up from
initial recognition and until the date of settlement. These subsequent changes
in fair value are recognised as part of revenue in the statement of profit or
loss and other comprehensive income each period and disclosed separately from
revenue from contracts with customers as part of 'Fair value gains/losses on
provisionally priced trade receivables. Changes in fair value over, and until
the end of, the QP, are estimated by reference to updated forward market
prices for copper as well as taking other relevant fair value considerations
as set out in IFRS 13, into account, including interest rate and credit risk
adjustments.
Final settlement is based on quantities adjusted as required following the
inspection of the product by the customer as well as applicable commodity
prices. IFRS 15 requires that variable consideration should only be recognised
to the extent that it is highly probable that a significant reversal in the
amount of cumulative revenue recognized will not occur. As the adjustments
relating to the final assay results for the quantity and quality of
concentrate sold are not significant, they do not constrain the recognition of
revenue.
(c) Freight services
As noted above, a proportion of the Group's metal in concentrate sales are
sold under CIF Incoterms, whereby the Group is responsible for providing
freight services (as principal) after the date that the Group transfers
control of the metal in concentrate to its customers. The Group, therefore,
has separate performance obligation for freight services which are provided
solely to facilitate sale of the commodities it produces.
The revenue from freight services is a separate performance obligation under
IFRS 15 and therefore is recognised as the service is provided, hence at year
end a portion of revenue must be deferred as well as the insurance costs
associated.
Other Incoterms commonly used by the Group are FOB, where the Group has no
responsibility for freight or insurance once control of the products has
passed at the loading port, Ex works where control of the goods passes when
the product is picked up at seller´s promises, and CIP where control of the
goods passes when the product is delivered to the agreed destination. For
arrangements which have these Incoterms, the only performance obligations are
the provision of the product at the point where control passes.
(d) Sales of services
The Group sells services in relation to maintenance of accounting records,
management, technical, administrative support and other services to other
companies. Revenue is recognised in the accounting period in which the
services are rendered.
Contract assets
A contract asset is the right to consideration in exchange for goods or
services transferred to the customer. If the Group performs by transferring
goods or services to a customer before the customer pays consideration or
before payment is due, a contract asset is recognised for the earned
consideration that is conditional. The Group does not have any contract assets
as performance and a right to consideration occurs within a short period of
time and all rights to consideration are unconditional.
Contract liabilities
A contract liability is the obligation to transfer goods or services to a
customer for which the Group has received consideration (or an amount of
consideration is due) from the customer. If a customer pays consideration
before the Group transfers goods or services to the customer, a contract
liability is recognised when the payment is made or the payment is due
(whichever is earlier). Contract liabilities are recognised as revenue when
the Group performs under the contract.
From time to time, the Group recognises contract liabilities in relation to
some metal in concentrate sales which are sold under CIF Incoterms, whereby a
portion of the cash may be received from the customer before the freight
services are provided.
2.24 Interest income
Interest income is recognised using the effective interest method. When a loan
and receivable is impaired, the Group and the Company reduce the carrying
amount to its recoverable amount, the estimated future cash flow is discounted
at the original effective interest rate of the instrument and the discount
continues unwinding as interest income. Interest income on impaired loan and
receivables is recognised using the original effective interest rate.
2.25 Dividend income
Dividend income is recognised when the right to receive payment is
established.
2.26 Dividend distribution
Dividend distributions to the Company's shareholders are recognised as a
liability in the Group's financial statements in the period in which the
dividends are approved by the Company's shareholders.
2.27 Earnings per share
The Group presents basic and diluted earnings per share data for its ordinary
shares. Basic earnings per share is calculated by dividing the profit or loss
attributable to ordinary shareholders of the Company by the weighted average
number of ordinary shares outstanding during the period. Diluted earnings per
share is determined by adjusting the profit or loss attributable to ordinary
shareholders and the weighted average number of ordinary shares outstanding
for the effects of all dilutive potential ordinary shares, which comprise
instruments convertible into ordinary shares and share options granted to
employees.
2.28 Comparatives
Where necessary, comparative figures have been adjusted to conform to changes
in presentation in the current year.
2.29 Amendment of financial statements after issue
The Board of Directors and shareholders has no right to amend the Financial
Statements after they are authorised.
2.30 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 and fair value through profit and loss 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 and company 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).
THE GROUP
(Euro 000's) Level 1 Level 2 Level 3 Total
31 Dec 2023
Other current financial assets
Financial assets at FV through OCI 30 - 1,101 1,131
Trade and other receivables
Receivables (subject to provisional pricing) - 15,164 - 15,164
Total 30 15,164 1,101 16,295
31 Dec 2022
Other current financial assets
Financial assets at FV through OCI 33 - 1,101 1,134
Receivables (subject to provisional pricing) - 27,557 - 27,557
Total 33 27,557 1,101 28,691
THE COMPANY
(Euro 000's) Level 1 Level 2 Level 3 Total
31 Dec 2023
Non-current receivables
Financial assets at FV through profit and loss (note 30.4) - - - -
Other current financial assets
Financial assets at FV through OCI 30 - - 30
Total 30 - - 30
31 Dec 2022
Non-current receivables
Financial assets at FV through profit and loss (note 30.4) - - 14,247 14,247
Other current financial assets
Financial assets at FV through OCI 33 - - 33
Total 33 - 14,247 14,280
2.31 Climate-related matters
The Group considers climate-related matters in estimates and assumptions,
where appropriate. This assessment includes a wide range of possible impacts
on the group due to both physical and transition risks. Even though the Group
believes its business model and products will still be viable after the
transition to a low-carbon economy, climate-related matters increase the
uncertainty in estimates and assumptions underpinning several items in the
financial statements. Even though climate-related risks might not currently
have a significant impact on measurement, the Group is closely monitoring
relevant changes and developments, such as new climate-related legislation.
The items and considerations that are most directly impacted by
climate-related matters are:
- Useful life of property, plant and equipment. When reviewing the
residual values and expected useful lives of assets, the Group considers
climate-related matters, such as climate-related legislation and regulations
that may restrict the use of assets or require significant capital
expenditures, based on the assessment on climate-related matters, there was no
impact.
- Impairment of non-financial assets. The value-in-use may be
impacted in several different ways by transition risk in particular, such as
climate-related legislation and regulations and changes in demand for the
Group products, based on the assessment on climate-related matters, there was
no impact.
- In determining fair value measurement, the impact of potential
climate-related matters, including legislation, which may affect the fair
value measurement of assets and liabilities in the financial statements has
been considered and based on the assessment on climate-related matters, there
was no impact.
- Rehabilitation provision. The impact of climate-related
legislation and regulations is considered in estimating the timing and future
costs of rehabilitation of the Group facilities, based on the assessment on
climate-related matters, there was no impact.
3. Financial Risk Management and Critical accounting estimates and judgements
3.1 Financial risk factors
The Group manages its exposure to key financial risks in accordance with its
financial risk management policy. The objective of the policy is to support
the delivery of the Group's financial targets while protecting future
financial security. The main risks that could adversely affect the Group's
financial assets, liabilities or future cash flows are market risks
comprising: commodity price risk, interest rate risk and foreign currency
risk; liquidity risk and credit risk; operational risk, compliance risk and
litigation risk. Management reviews and agrees policies for managing each of
these risks that are summarised below.
The Group's senior management oversees the management of financial risks. The
Group's senior management is supported by the AC that advises on financial
risks and the appropriate financial risk governance framework for the Group.
The AC provides assurance to the Group's senior management that the Group's
financial risk-taking activities are governed by appropriate policies and
procedures and that financial risks are identified, measured and managed in
accordance with the Group's policies and risk objectives. Currently, the Group
does not apply any form of hedge accounting.
(a) Liquidity risk
Liquidity risk is the risk that arises when the maturity of assets and
liabilities does not match. An unmatched position potentially enhances
profitability but can also increase the risk of losses. The Group has
procedures with the object of minimising such losses such as maintaining
sufficient cash to meet liabilities when due. Cash flow forecasting is
performed in the operating entities of the Group and aggregated by Group
finance. Group finance monitors rolling forecasts of the Group's liquidity
requirements to ensure it has sufficient cash to meet operational needs.
The following tables detail the Group's remaining contractual maturity for its
financial liabilities. The tables have been drawn up based on the undiscounted
cash flows of financial liabilities based on the earliest date on which the
Group can be required to pay. The table includes principal cash flows.
THE GROUP
(Euro 000's) Carrying amounts Contractual cash flows Less than 3 months Between 3 - 12 months Between 1 - 2 years Between 2 - 5 years Over 5 years
31 Dec 2023
Tax liability 1,317 1,317 - 1,317 - - -
Lease liability 4,378 4,378 - 501 - 1,928 1,949
Other financial liabilities 66,687 65,406 - 50,556 16,131 - -
Non-current payables 2,205 - - 205 - - 2,000
Trade and other payables 75,922 72,623 36,964 38,882 76 - -
150,509 143,724 36,967 91,458 16,207 1,928 3,949
31 Dec 2022
Tax liability 1,425 1,425 - 1,425 - - -
Lease liability 4,914 4,914 - 536 - 1,957 2,421
Other financial liabilities 73,362 73,362 - 52,594 10,812 9,956 -
Non-current payables 2,015 - - 15 - - 2,000
Trade and other payables 90,022 86,810 53,912 36,110 - - -
171,738 166,511 53,912 90,680 10,812 11,913 4,421
THE COMPANY
(Euro 000's) Carrying amounts Contractual cash flows Less than 3 months Between 3 - 12 months Between 1 - 2 years Between 2 - 5 years Over 5 years
31 Dec 2023
Tax liability 189 189 - 189 - - -
Trade and other payables 2,369 868 - 2,369 - - -
2,558 1,057 - 2,558 - - -
31 Dec 2022
Tax liability 107 107 - 107 - - -
Trade and other payables 5,402 543 - 5,402 - - -
5,509 650 - 5,509 - - -
(b) Currency risk
Currency risk is the risk that the value of financial instruments will
fluctuate due to changes in foreign exchange rates.
Currency risk arises when future commercial transactions and recognised assets
and liabilities are denominated in a currency that is not the Group's
measurement currency. The Group is exposed to foreign exchange risk arising
from various currency exposures primarily with respect to the US Dollar and
the British Pound. The Group's management monitors the exchange rate
fluctuations on a continuous basis and acts accordingly.
Foreign currency sensitivity
The following table demonstrates the sensitivity to a reasonably possible
change in the foreign exchange rate, with all other variables held constant,
of the Group's profit before tax due to changes in the carrying value of
monetary assets and liabilities at reporting date:
Effect on profit before tax for the year ended 31 Dec 2023 increase/(decrease) Effect on profit before tax for the year ended 31 Dec 2022 increase/(decrease)
(Euro 000's)
+5% 17,454 17,303
-5% (17,454) (17,303)
(c) Commodity price risk
Commodity price is the risk that the Group's future earnings will be adversely
impacted by changes in the market prices of commodities, primarily copper.
Management is aware of this impact on its primary revenue stream but knows
that there is little it can do to influence the price earned apart from a
hedging scheme.
Commodity price hedging is governed by the Group´s policy which allows to
limit the exposure to prices. The Group may decide to hedge part of its
production during the year.
Commodity price sensitivity
The table below summarises the impact on profit before tax for changes in
commodity prices on the fair value of derivative financial instruments and
trade receivables (subject to provisional pricing). The impact on equity is
the same as the impact on profit before income tax as these derivative
financial instruments have not been designated as hedges and are classified as
held-for-trading and are therefore fair valued through profit or loss.
The analysis is based on the assumption that the copper prices move $0.05/lb
with all other variables held constant. Reasonably possible movements in
commodity prices were determined based on a review of the last two years'
historical prices.
Effect on profit before tax for the year ended 31 Dec 2023 increase/(decrease) Effect on profit before tax for the year ended 31 Dec 2022 increase/(decrease)
Eur 000's Eur 000's
Increase/(decrease) in copper prices
Increase $0.05/lb (2022: $0.05) 5,138 5,285
Decrease $0.05/lb (2022: $0.05) (5,138) (5,285)
(d) Credit risk
Credit risk arises when a failure by counterparties to discharge their
obligations could reduce the amount of future cash inflows from financial
assets on hand at the reporting date. The Group has no significant
concentration of credit risk. The Group has policies in place to ensure that
sales of products and services are made to customers with an appropriate
credit history and monitors on a continuous basis the ageing profile of its
receivables. The Group has policies to limit the amount of credit exposure to
any financial institution.
Except as detailed in the following table, the carrying amount of financial
assets recorded in the financial statements, which is net of impairment
losses, represents the maximum credit exposure without taking account of the
value of any collateral obtained:
(Euro 000's) 31 Dec 2023 31 Dec 2022
Unrestricted cash and cash equivalents at Group level 94,868 108,550
Unrestricted cash and cash equivalents at Operation level 26,139 17,567
Restricted cash and cash equivalents at Operation level - 331
Consolidated cash and cash equivalents 121,007 126,448
Net cash position ((1)) 54,320 53,085
Working capital surplus 68,618 84,047
((1) ) Includes restricted cash and bank borrowings at 31
December 2022
Restricted cash amounted at 31 December 2022 to €0.3 million was held in
escrow, which represented funds utilized by the Company to cover possible
remaining costs due to Astor following litigation during 2022. However, due to
the settlement reached with Astor on 17 May 2023 whereby Astor agreed to repay
€3.5 million of interest previously paid to it to finalise the litigation,
the previously restricted cash has now been released and reversed (Note 8).
Besides of the above, there are no collaterals held in respect of these
financial instruments and there are no financial assets that are past due or
impaired as at 31 December 2023 and 2022.
(e) Interest rate risk
Interest rate risk is the risk that the value of financial instruments will
fluctuate due to changes in market interest rates. Borrowings issued at
variable rates expose the Group to cash flow interest rate risk. Borrowings
issued at fixed rates expose the Group to fair value interest rate risk. The
Group's management monitors the interest rate fluctuations on a continuous
basis and acts accordingly.
At the reporting date the interest rate profile of interest‑bearing
financial instruments was:
(Euro 000's) 2023 2022
Variable rate instruments
Financial assets 121,007 126,448
An increase of 100 basis points in interest rates at 31 December 2023 would
have increased / (decreased) equity and profit or loss by the amounts shown
below. This analysis assumes that all other variables, in particular foreign
currency rates, remain constant. For a decrease of 100 basis points there
would be an equal and opposite impact on the profit and other equity.
Equity Profit or loss
(Euro 000's) 2023 2022 2023 2022
Variable rate instruments 1,210 1,264 1,210 1,264
(f) Operational risk
Operational risk is the risk that derives from the deficiencies relating to
the Group's information technology and control systems as well as the risk of
human error and natural disasters. The Group's systems are evaluated,
maintained and upgraded continuously.
(g) Compliance risk
Compliance risk is the risk of financial loss, including fines and other
penalties, which arises from non‑compliance with laws and regulations. The
Group has systems in place to mitigate this risk, including seeking advice
from external legal and regulatory advisors in each jurisdiction.
(h) Litigation risk
Litigation risk is the risk of financial loss, interruption of the Group's
operations or any other undesirable situation that arises from the possibility
of non‑execution or violation of legal contracts and consequentially of
lawsuits. The risk is restricted through the contracts used by the Group to
execute its operations.
3.2 Capital risk management
The Group considers its capital structure to consist of share capital, share
premium and share options reserve. The Group's objectives when managing
capital are to safeguard the Group's ability to continue as a going concern in
order to provide returns for shareholders and benefits for other stakeholders
and to maintain an optimal capital structure to reduce the cost of capital.
The Group is not subject to any externally imposed capital requirements.
In order to maintain or adjust the capital structure, the Group issues new
shares. The Group manages its capital to ensure that it will be able to
continue as a going concern while maximising the return to shareholders
through the optimisation of the debt and equity balance. The AFRC reviews the
capital structure on a continuing basis.
The Group's objectives when managing capital are to safeguard the Group's
ability to continue as a going concern and to maintain an optimal capital
structure so as to maximise shareholder value. In order to maintain or achieve
an optimal capital structure, the Group may adjust the amount of dividend
payment, return capital to shareholders, issue new shares, buy back issued
shares, obtain new borrowings or sell assets to reduce borrowings.
The Group monitors capital on the basis of the gearing ratio. The gearing
ratio is calculated as net debt divided by total capital. Net debt is
calculated as provisions plus deferred consideration plus trade and other
payables less cash and cash equivalents.
(Euro 000's) 31 Dec 2023 31 Dec 2022
Total liabilities less cash 57,170 70,326
Total equity (excluding NCI) 501,496 473,295
Total capital 558,666 543,621
Gearing ratio 10.23% 12.94%
3.3 Critical accounting estimates and judgements
The preparation of the financial statements requires 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.
In particular, the Group has identified a number of areas where significant
judgements, estimates and assumptions are required.
(a) Capitalisation of exploration and evaluation costs
Under the Group's accounting policy, exploration and evaluation expenditure is
not capitalised until the point is reached at which there is a high degree of
confidence in the project's viability, and it is considered probable that
future economic benefits will flow to the Group. Subsequent recovery of the
resulting carrying value depends on successful development or sale of the
undeveloped project. If a project proves to be unviable, all irrecoverable
costs associated with the project net of any related impairment provisions are
written off.
(b) Stripping costs
The Group incurs waste removal costs (stripping costs) during the development
and production phases of its surface mining operations. Furthermore, during
the production phase, stripping costs are incurred in the production of
inventory as well as in the creation of future benefits by improving access
and mining flexibility in respect of the orebodies to be mined, the latter
being referred to as a stripping activity asset. Judgement is required to
distinguish between the development and production activities at surface
mining operations.
The Group is required to identify the separately identifiable components or
phases of the orebodies for each of its surface mining operations. Judgement
is required to identify and define these components, and also to determine the
expected volumes (tonnes) of waste to be stripped and ore to be mined in each
of these components. These assessments may vary between mines because the
assessments are undertaken for each individual mine and are based on a
combination of information available in the mine plans, specific
characteristics of the orebody, the milestones relating to major capital
investment decisions and the type and grade of minerals being mined.
Judgement is also required to identify a suitable production measure that can
be applied in the calculation and allocation of production stripping costs
between inventory and the stripping activity asset. The Group considers the
ratio of expected volume of waste to be stripped for an expected volume of ore
to be mined for a specific component of the orebody, compared to the current
period ratio of actual volume of waste to the volume of ore to be the most
suitable measure of production.
These judgements and estimates are used to calculate and allocate the
production stripping costs to inventory and/or the stripping activity
asset(s). Furthermore, judgements and estimates are also used to apply the
units of production method in determining the depreciable lives of the
stripping activity asset(s).
(c) Ore reserve and mineral resource estimates
The Group estimates its ore reserves and mineral resources based on
information compiled by appropriately qualified persons relating to the
geological and technical data on the size, depth, shape and grade of the ore
body and suitable production techniques and recovery rates.
Such an analysis requires complex geological judgements to interpret the data.
The estimation of recoverable reserves is based upon factors such as estimates
of foreign exchange rates, commodity prices, future capital requirements and
production costs, along with geological assumptions and judgements made in
estimating the size and grade of the ore body.
The Group uses qualified persons (as defined by the Canadian Securities
Administrators' National Instrument 43-101) to compile this data. Changes in
the judgments surrounding proven and probable reserves may impact as follows:
· The carrying value of exploration and evaluation assets, mine
properties, property, plant and equipment, and goodwill may be affected due to
changes in estimated future cash flows;
· Depreciation and amortisation charges in the consolidated and
company statements of comprehensive income may change where such charges are
determined using the UOP method, or where the useful life of the related
assets change;
· Capitalised stripping costs recognised in the statement of
financial position as either part of mine properties or inventory or charged
to profit or loss may change due to changes in stripping ratios;
· Provisions for rehabilitation and environmental provisions may
change where reserve estimate changes affect expectations about when such
activities will occur and the associated cost of these activities;
· The recognition and carrying value of deferred income tax assets
may change due to changes in the judgements regarding the existence of such
assets and in estimates of the likely recovery of such assets.
(d) Impairment of assets
Events or changes in circumstances can give rise to significant impairment
charges or impairment reversals in a particular year. The Group assesses each
Cash Generating Unit ("CGU") annually to determine whether any indications of
impairment exist. If it was necessary management could contract independent
expert to value the assets. Where an indicator of impairment exists, a formal
estimate of the recoverable amount is made, which is considered the higher of
the fair value less cost to sell and value-in-use. An impairment loss is
recognised immediately in net earnings. The Group has determined that each
mine location is a CGU.
These assessments require the use of estimates and assumptions such as
commodity prices, discount rates, future capital requirements, exploration
potential and operating performance. Fair value is determined as the price
that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. Fair
value for mineral assets is generally determined as the present value of
estimated future cash flows arising from the continued use of the asset, which
includes estimates such as the cost of future expansion plans and eventual
disposal, using assumptions that an independent market participant may take
into account. Cash flows are discounted at an appropriate discount rate to
determine the net present value. For the purpose of calculating the impairment
of any asset, management regards an individual mine or works site as a CGU.
Although management has made its best estimate of these factors, it is
possible that changes could occur in the near term that could adversely affect
management's estimate of the net cash flow to be generated from its projects.
(e) Provisions for decommissioning and site restoration costs
Accounting for restoration provisions requires management to make estimates of
the future costs the Group will incur to complete the restoration and
remediation work required to comply with existing laws, regulations and
agreements in place at each mining operation and any environmental and social
principles the Group is in compliance with. The calculation of the present
value of these costs also includes assumptions regarding the timing of
restoration and remediation work, applicable risk-free interest rate for
discounting those future cash outflows, inflation and foreign exchange rates
and assumptions relating to probabilities of alternative estimates of future
cash outflows.
Management uses its judgement and experience to provide for and (in the case
of capitalised decommissioning costs) amortise these estimated costs over the
life of the mine. The ultimate cost of decommissioning and timing is uncertain
and cost estimates can vary in response to many factors including changes to
relevant environmental laws and regulations requirements, the emergence of new
restoration techniques or experience at other mine sites. As a result, there
could be significant adjustments to the provisions established which would
affect future financial results. Refer to Note 26 for further details.
(f) Income tax
Significant judgment is required in determining the provision for income
taxes. There are transactions and calculations for which the ultimate tax
determination is uncertain during the ordinary course of business. The Group
and Company recognise liabilities for anticipated tax audit issues based on
estimates of whether additional taxes will be due. Where the final tax outcome
of these matters is different from the amounts that were initially recorded,
such differences will impact the income tax and deferred tax provisions in the
period in which such determination is made.
Judgement is also required to determine whether deferred tax assets are
recognised in the consolidated statements of financial position. Deferred tax
assets, including those arising from unutilised tax losses, require the Group
to assess the probability that the Group will generate sufficient taxable
earnings in future periods, in order to utilise recognised deferred tax
assets.
Assumptions about the generation of future taxable profits depend on
management's estimates of future cash flows. These estimates of future taxable
income are based on forecast cash flows from operations (which are impacted by
production and sales volumes, commodity prices, reserves, operating costs,
closure and rehabilitation costs, capital expenditure, dividends and other
capital management transactions). To the extent that future cash flows and
taxable income differ significantly from estimates, the ability of the Group
to realise the net deferred tax assets could be impacted.
In addition, future changes in tax laws in the jurisdictions in which the
Group operates could limit the ability of the Group to obtain tax deductions
in future periods.
(g) Inventory
Net realisable value tests are performed at each reporting date and represent
the estimated future sales price of the product the entity expects to realise
when the product is processed and sold, less estimated costs to complete
production and bring the product to sale. Where the time value of money is
material, these future prices and costs to complete are discounted.
(h) Leases - Estimating the incremental borrowing rate
The Group cannot readily determine the interest rate implicit in the lease,
therefore, it uses its incremental borrowing rate (IBR) to measure lease
liabilities. The IBR is the rate of interest that the Group would have to pay
to borrow over a similar term, and with a similar security, the funds
necessary to obtain an asset of a similar value to the right-of-use asset in a
similar economic environment. The IBR therefore reflects what the Group 'would
have to pay', which requires estimation when no observable rates are available
(such as for subsidiaries that do not enter into financing transactions) or
when they need to be adjusted to reflect the terms and conditions of the lease
(for example, when leases are not in the subsidiary's functional currency).
The Group estimates the IBR using observable inputs (such as market interest
rates) when available and is required to make certain entity-specific
estimates (such as the subsidiary's stand-alone credit rating).
(i) Contingent liabilities
A contingent liability arises where a past event has taken place for which the
outcome will be confirmed only by the occurrence or non-occurrence of one or
more uncertain events outside of the control of the Group, or a present
obligation exists but is not recognised because it is not probable that an
outflow of resources will be required to settle the obligation.
A provision is made when a loss to the Group is likely to crystallise. The
assessment of the existence of a contingency and its likely outcome,
particularly if it is considered that a provision might be necessary, involves
significant judgment taking all relevant factors into account.
(j) Share-based compensation benefits
Share based compensation benefits are accounted for in accordance with the
fair value recognition provisions of IFRS 2 "Share-based Payment". As such,
share-based compensation expense for equity-settled share-based payments is
measured at the grant date based on the fair value of the award and is
recognised as an expense over the vesting period. The fair value of such
share-based awards at the grant date is measured using the Black Scholes
pricing model. The inputs used in the model are based on management's best
estimates for the effects of non-transferability, exercise restrictions,
behavioural considerations and expected volatility. Please refer to Note 23.
(k) Consolidation of Cobre San Rafael
Cobre San Rafael, S.L. is the entity which holds the mining rights of Proyecto
Touro. The Group controls Cobre San Rafael, S.L. as it is exposed to variable
returns from its involvement with the subsidiary and has the ability to affect
those returns through its power over the subsidiary. The control is proven as:
one of the two Directors belongs to the Group and management of the financial
books and the capacity to appoint the key personnel is controlled by Atalaya.
(l) Classification of financial assets
Financial assets are classified, at initial recognition, and subsequently
measured at amortised cost, fair value through OCI, or fair value through
profit or loss.
The Group and Company exercises judgement upon determining the classification
of its financial assets upon considering whether contractual features
including interest rate could significantly affect future cash flows.
Furthermore, judgment is required when assessing whether compensation paid or
received on early termination of lending arrangements results in cash flows
that are not 'solely payments of principal and interest (SPPI).
(n) Determining the lease term of contracts with renewal options
The Group determines the lease term as the non-cancellable term of the lease,
together with any periods covered by an option to extend the lease if it is
reasonably certain to be exercised, or any periods covered by an option to
terminate the lease, if it is reasonably certain not to be exercised.
The Group has the option, under some of its leases to lease the assets for
additional terms of three to five years. The Group applies judgement in
evaluating whether it is reasonably certain to exercise the option to renew.
That is, it considers all relevant factors that create an economic incentive
for it to exercise the renewal. After the commencement date, the Group
reassesses the lease term if there is a significant event or change in
circumstances that is within its control and affects its ability to exercise
(or not to exercise) the option to renew (e.g., a change in business
strategy). The Group included the renewal period as part of the lease term
for leases of plant and machinery due to the significance of these assets to
its operations. These leases have a short non-cancellable period (i.e., three
to five years) and there will be a significant negative effect on production
if a replacement is not readily available. The renewal options for leases of
motor vehicles were not included as part of the lease term because the Group
has a policy of leasing motor vehicles for not more than five years and hence
not exercising any renewal options.
4. Segments
Segments
The Group has only one distinct business segment, that being mining
operations, which include mineral exploration and development.
Copper concentrates produced by the Group are sold to three offtakers as per
the relevant offtake agreement (Note 30.3).
Geographical areas of operations
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 2023 2022
€'000 €'000
Switzerland 340,346 361,846
The table below presents revenues from external customers attributed to the
country of domicile of the Company.
Revenue - from external customers 2023 2022
€'000 €'000
Cyprus 25,712 30,662
Spain 314,634 331,184
340,346 361,846
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 2023 2022
€'000 €'000
Spain 434,136 408,738
434,136 408,738
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) 2023 2022
Segment €'000 Segment €'000
Offtaker 1 Copper 80,031 Copper 71,839
Offtaker 2 Copper 76,688 Copper 108,158
Offtaker 3 Copper 183,596 Copper 181,822
5. Revenue
THE GROUP
(Euro 000's) 2023 2022
Revenue from contracts with customers ((1)) 344,940 371,303
Fair value gain relating to provisional pricing within sales ((2)) (4,594) (9,457)
Total revenue 340,346 361,846
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 2023 revenue there is a transaction price of
€9.8 million (€7.6 million in 2022) 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 represented the change in fair
value of the embedded derivative arising on sales of concentrate.
THE COMPANY
(Euro 000's) 2023 2022
Sales of services to related companies (Note 30.3) 5,012 2,756
Dividends - 55,000
Total revenue 5,012 57,756
6. Expenses by nature
THE GROUP
(Euro 000's) 2023 2022
Operating costs 208,416 246,840
Care and maintenance expenditure 11,511 15,603
Exploration expenses 5,103 3,723
Employee benefit expense (Note 7) 25,756 24,556
Compensation of key management personnel (Note 30.2) 2,230 2,189
Auditors' remuneration - audit 584 345
Other assurance 20 -
Other accountants' remuneration 385 138
Consultants' remuneration 4,977 1,087
Depreciation of property, plant and equipment (Note 13) 33,307 29,637
Amortisation of intangible assets (Note 14) 4,493 4,482
Share option-based employee benefits (Note 23) 661 1,279
Shareholders' communication expense 232 305
On-going listing costs 521 533
Legal costs 1,779 1,469
Public relations and communication development 711 1,035
Rents (Note 27) 5,682 5,678
Other expenses and provisions 314 2,038
Total 306,682 340,937
THE COMPANY
(Euro 000's) 2023 2022
Key management remuneration (Note 30.2) 605 540
Auditors' remuneration - audit 263 139
Other accountants' remuneration 341 57
Consultants' remuneration 1,352 224
Management fees (Note 30.3) 19 66
Travel costs 5 2
Shareholders' communication expense 232 305
On-going listing costs 521 533
Legal costs 1,771 1,258
Insurances 82 84
Other expenses and provisions 631 392
Total 5,822 3,600
7. Employee benefit expense
THE GROUP
(Euro 000's) 2023 2022
Wages and salaries 18,836 18,438
Social security and social contributions 6,246 5,659
Employees' other allowances 18 16
Bonus to employees 656 443
Total 25,756 24,556
The average number of employees and the number of employees at year end by
office are:
Average At year end
Number of employees 2023 2022 2023 2022
Spain - Full time 479 492 476 489
Spain - Part time 6 4 6 5
Cyprus - Full time 1 1 1 1
Cyprus - Part time 2 2 2 2
Total 488 499 485 497
THE COMPANY
The company had no employees during the year ended 31 December 2023 and 2022.
8. Finance income
THE GROUP
(Euro 000's) 2023 2022
Financial interests 1,501 244
Other received interests 3,892 -
Unwinding of discount on mine rehabilitation provision (Note 26) - 380
Total 5,393 624
THE COMPANY
(Euro 000's) 2023 2022
Interest income from interest-bearing intercompany loans at fair value through - 9,157
profit and loss (Note 30.3)
Interest income from interest-bearing intercompany loans at amortised cost 14,087 3,743
(Note 30.3)
Financial interests 517 36
Total 14,604 12,936
Financial interests relate to interest received on bank balances.
Other received interests mainly comprise the €3.5 million interest received
as a result of the agreement reached with Astor in May 2023.
9. Finance costs
THE GROUP
(Euro 000's) 2023 2022
Interest expense:
Other interest 2,607 1,025
Interest expense on lease liabilities 25 20
Unwinding of discount on mine rehabilitation provision (Note 26) 690 -
3,322 1,045
Other interests include the financing costs related to Astor and Solar plant
facilities.
10. Tax
THE GROUP
(Euro 000's) 2023 2022
Current income tax charge 3,419 3,123
Deferred tax income relating to the origination of temporary differences (Note (6,852) (4,544)
17)
Deferred tax expense relating to reversal of temporary differences (Note 17) 2,863 2,815
(570) 1,394
The tax on the Group's results before tax differs from the theoretical amount
that would arise using the applicable tax rates as follows:
(Euro 000's) 2023 2022
Accounting profit before tax 36,093 32,320
Tax calculated at the applicable tax rates of the Company - 12.5% 4,512 4,040
Tax effect of expenses not deductible for tax purposes 3,290 1,029
Tax effect of tax loss for the year (1,271) 3,819
Tax effect of allowances and income not subject to tax (4,381) (7,857)
Effect of higher tax rates in other jurisdictions of the group 993 2,092
Tax effect of tax losses brought forward 276 -
Deferred tax (Note 17) (3,989) (1,729)
Tax (credit)/ charge (570) 1,394
THE COMPANY
(Euro 000's) 2023 2022
Current income tax charge 579 617
579 617
Tax losses carried forward
As at 31 December 2023, the Group had tax losses carried forward amounting to
€6 million from the Spanish subsidiaries.
Cyprus
The corporation tax rate is 12.5%. Under certain conditions interest income
may be subject to defence contribution at the rate of 30%. In such cases this
interest will be exempt from corporation tax. In certain cases, dividends
received from abroad may be subject to defence contribution at the rate of 17%
for 2014 and thereafter. Under current legislation, tax losses may be carried
forward and be set off against taxable income of the five succeeding years.
Companies which do not distribute 70% of their profits after tax, as defined
by the relevant tax law, within two years after the end of the relevant tax
year, will be deemed to have distributed as dividends 70% of these profits.
Special contribution for defence at 20% for the tax years 2012 and 2013 and
17% for 2014 and thereafter will be payable on such deemed dividends to the
extent that the shareholders (companies and individuals) are Cyprus tax
residents and Cyprus domiciled. The amount of deemed distribution is reduced
by any actual dividends paid out of the profits of the relevant year at any
time. This special contribution for defence is payable by the Company for the
account of the shareholders.
Spain
The corporation tax rate for 2023 and 2022 is 25%. The recent Spanish tax
reform approved in 2014 reduced the general corporation tax rate from 30% to
28% in 2015 and to 25% in 2016, and introduced, among other changes, a 10%
reduction in the tax base subject to equity increase and other requirements.
Under current legislation, tax losses may be carried forward and be set off
against taxable income with no limitation.
11. Earnings per share
The calculation of the basic and diluted earnings per share attributable to
the ordinary equity holders of the Company is based on the following data:
(Euro 000's) 2023 2022
Parent company (6,255) (676)
Subsidiaries 45,024 33,831
Profit attributable to equity holders of the parent 38,769 33,155
Weighted number of ordinary shares for the purposes of basic earnings per 139,880 139,757
share ('000)
Basic earnings per share (EUR cents/share) 27.7 23.7
Weighted number of ordinary shares for the purposes of diluted earnings per 144,224 142,834
share ('000)
Diluted earnings per share (EUR cents/share) 26.9 23.2
At 31 December 2023 there are nil warrants and 4,848,500 options (Note 22) (31
December 2022: nil warrants and 3,543,500 options) which have been included
when calculating the weighted average number of shares for FY2023.
12. Dividends
Cash dividends declared and paid during the year:
(Euro 000's) 2023 2022
Final dividends declared and paid 4,956 -
Interim dividends declared and paid 6,522 5,099
11,478 5,099
Fully paid ordinary shares carry one vote per share and carry the right to
dividends.
In March 2023, the Board of Directors proposed a final dividend for 2022 of
US$0.0385 per ordinary share, which was equivalent to approximately 3.15 pence
per share. Following the approval of Resolution 10 by the Company's
shareholders at its 2023 Annual General Meeting, which took place on 28 June
2023, the 2022 final dividend was paid on 8 August 2023.
On 9 August 2023, the Company's Board of Directors declared an Interim
Dividend for 2023 of US$0.05 per ordinary share, which is equivalent to
approximately 3.9 pence per share. The Interim Dividend was paid on 28
September 2023 using foreign exchange rates announced on 12 September 2023.
A final dividend of US$0.04 per share has been proposed for approval by
shareholders at the 2024 Annual General Meeting. This would give a total
dividend in respect of 2023 of US$0.09 per share.
13. Property, plant and equipment
(Euro 000's) Land and buildings Right of use assets ((5)) Plant and equipment Assets under construction ((3)) Deferred mining costs ((2)) Other assets ((1)) Total
2023
Cost
At 1 January 2023 80,326 7,076 291,335 50,235 52,358 872 482,202
Additions 36 - 6,011 42,149 11,714 79 59,782
Increase in rehab. Provision (Note 26) 3,145 - - - - - 3,145
Reclassifications ((4)) - - 21,783 (21,783) - - -
Advances 10 - - - - - 10
31 Dec 2023 83,517 7,076 319,129 70,601 64,072 951 545,346
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 year 4,248 533 24,359 - 4,142 25 33,307
31 Dec 2023 24,702 2,531 113,547 - 19,063 764 160,607
Net book value at 31 December 2023 58,815 4,545 205,582 70,601 45,009 187 384,739
2022
Cost
1 Jan 2022 65,003 7,076 283,346 22,860 51,667 801 430,753
Additions 2,383 - 1,262 49,473 691 - 53,809
Increase in rehab. provision 1,727 - - - - - 1,727
Reclassifications 15,300 - 6,727 (22,098) - 71 -
Advances 103 - - - - - 103
Write-off (4,190) - - - - - (4,190)
31 Dec 2022 80,326 7,076 291,335 50,235 52,358 872 482,202
Depreciation
At 1 January 2022 16,026 1,546 67,991 - 11,380 714 97,657
Charge for the year 4,428 452 21,191 - 3,541 25 29,637
31 Dec 2022 20,454 1,998 89,182 - 14,921 739 127,294
Net book value at 31 December 2022 59,872 5,078 202,153 50,235 37,437 133 354,908
((1)) Includes motor vehicles, furniture, fixtures and office equipment which
are depreciated over 5-10 years.
((2)) Stripping costs
((3)) Assets under construction at 31 December 2023 amounted to €70.6
million (2022: €50.2 million) which include sustaining capital expenditures,
tailings dams project, ELIX plant and solar plant.
((4)) Transfers including sustaining Capex (€20.6 million).
((5)) See leases in Note 27.
The Group
The above fixed assets are mainly located in Spain.
THE COMPANY
(Euro 000's) Other
assets((1)) Total
2023
Cost
At 1 January 2023 15 15
At 31 December 2023 15 15
Depreciation
At 1 January 2023 15 15
Charge for the year - -
At 31 December 2023 15 15
Net book value at 31 December 2023 - -
2022
Cost
At 1 January 2022 15 15
At 31 December 2022 15 15
Depreciation
At 1 January 2022 15 15
Charge for the year - -
At 31 December 2022 15 15
Net book value at 31 December 2022 - -
((1) ) Includes furniture, fixtures and office equipment which
were depreciated over 5-10 years.
14. Intangible assets
The Group
(Euro 000's) Licences, R&D and Software
Permits ((1)) Total
2023
Cost
On 1 January 2023 81,255 8,642 89,897
Additions 144 116 260
Disposals (200) - (200)
At 31 December 2023 81,199 8,758 89,957
Amortisation
On 1 January 2023 27,627 8,440 36,067
Charge for the year 4,453 40 4,493
At 31 December 2023 32,080 8,480 40,560
Net book value at 31 December 2023 49,119 278 49,397
2022
Cost
On 1 January 2022 80,358 8,595 88,953
Additions 897 47 944
At 31 December 2022 81,255 8,642 89,897
Amortisation
On 1 January 2022 23,214 8,371 31,585
Charge for the year 4,413 69 4,482
At 31 December 2022 27,627 8,440 36,067
Net book value at 31 December 2022 53,628 202 53,830
((1) ) Permits also include the mining rights of Proyecto Touro,
Masa Valverde and Ossa Morena
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 in case there is an indicator of
impairment. Atalaya assessed its assets concluding that there are no
indicators of impairment for either Proyecto Riotinto or any other as of 31
December 2023.
15. Investment in subsidiaries
(Euro 000's) 2023 2022
The Company
Opening amount at cost minus provision for impairment 74,910 64,171
Increase of investment ((1) (2) (3)) 217,225 10,739
Closing amount at cost less provision for impairment 292,135 74,910
The directly owned subsidiaries of the Group, the percentage of equity owned
and the main country of operation are set out below. These interests are
consolidated within these financial statements.
Effective proportion of shares held in 2023((2)) Effective proportion of shares held in 2022((2))
Date of incorporation/ Principal activity Country of incorporation
Subsidiary companies acquisition
Atalaya Touro (UK) Ltd 10 March 2017 Holding United Kingdom 100% 100%
United Kingdom
AMP ((1)) 10 Sep 2008 Holding 100% 100%
EMED Marketing Ltd 8 Sep 2008 Trading Cyprus 100% 100%
Atalaya Financing Ltd ((3)) 16 Sep 2020 Financing Cyprus 100% 100%
((1)) €0.7 million related to share-based payment expense (FY2022: €10.8
million).
((2)) The effective proportion of shares held as at 31 December 2023 and 2022
remained unchanged.
((3 )) €216.5 million attributable to the transfer of intercompany loans
from ATYM to Atalaya Financing Ltd. through a share capital raise. (FY2022:
€nil) (note 19 & 30.4).
16. Investment in joint venture
Country of incorporation Effective proportion of shares
Company name Principal activities held at 31 December 2015
Recursos Cuenca Minera S.L. Exploitation of tailing dams and waste areas resources Spain 50%
In 2012, ARM initiated a 50/50 joint venture with Rumbo to assess and leverage
the potential of class B resources within the tailings dam and waste areas at
The Proyecto Riotinto. Pursuant to the joint venture agreement, ARM served as
the operator and reimbursed Rumbo for the expenses linked to the
classification application for the Class B resources. ARM covered the initial
expenses for a feasibility study, with a maximum funding limit of €2.0
million. Subsequent costs were shared by the joint venture partners in
accordance with their respective ownership interests.
The Group's significant aggregate amounts in respect of the joint venture are
as follows:
(Euro 000's) 31 Dec 2023 31 Dec 2022
Intangible assets 94 94
Trade and other receivables 3 2
Cash and cash equivalents 19 21
Trade and other payables (115) (115)
Net assets 1 2
Revenue - -
Expenses - -
Net profit/(loss) after tax - -
17. Deferred tax
Consolidated statement of financial position Consolidated income statement
(Euro 000's) 2023 2022 2023 2022
The Group
Deferred tax asset
At 1 January 7,293 5,564 - -
Deferred tax income relating to the origination of temporary differences (Note
10)
6,852 4,544 (6,852) (4,544)
Deferred tax expense relating to reversal of temporary differences (Note 10)
(2,863) (2,815) 2,863 2,815
At 31 December 11,282 7,293
Deferred tax income/(expense) (Note 10) (3,989) (1,729)
Deferred tax assets are recognised for the carry-forward of unused tax losses
and unused tax credits to the extent that it is probable that taxable profits
will be available in the future against which the unused tax losses/credits
can be utilised. The Group held tax losses amounted to €6 million in Spain
(2022: €4.4 million).
18. Inventories
(Euro 000's) 31 Dec 2023 31 Dec 2022
THE GROUP
Finished products 8,416 4,547
Materials and supplies 21,852 31,330
Work in progress 3,046 2,964
33,314 38,841
As at 31 December 2023, copper concentrate produced and not sold amounted to
6,722 tonnes (FY2022: 3,529 tonnes). Accordingly, the inventory for copper
concentrate was €8.4 million (FY2022: €4.5 million). During the year 2023
the Group recorded cost of sales amounting to €247.3 million (FY2022:
€289.6 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.
19. Trade and other receivables
(Euro 000's) 2023 2022
THE GROUP
Non-current trade and other receivables
Deposits 307 256
Loans 233 -
Prepayments for service contract 23,476 12,865
Other non-current receivables 2,686 3,241
26,702 16,362
Current trade and other receivables
Trade receivables at fair value - subject to provisional pricing 10,110 14,757
Trade receivables from shareholders at fair value - subject to provisional 5,054 12,800
pricing (Note 30.5)
Other receivables from related parties at amortised cost (Note 30.4) 56 56
Deposits 37 37
VAT receivable 21,003 28,856
Tax advances - 9
Prepayments 5,855 5,845
Other current assets 782 1,795
42,897 64,155
Allowance for expected credit losses - -
Total trade and other receivables 69,599 80,517
(Euro 000's) 2023 2022
THE COMPANY
Non-current trade and other receivables
Receivables from own subsidiaries at amortised cost (Note 30.4) 227 245,657
Receivables from own subsidiaries at fair value through profit and loss (Note - 14,247
30.4)
227 259,904
Current trade and other receivables
Receivables from own subsidiaries at amortised cost (Note 30.4) 70,797 48,774
Other receivables 58 57
Total current trade and other receivables 70,855 48,831
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 value of trade
and other receivables approximate their book values.
Non-current deposits included €250k (€250k at 31 December 2022) 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.
20. Other Financial assets
The Group
(Euro 000's) 31 Dec 2023 31 Dec 2022
Financial asset at fair value through OCI (see (a) below) 1,131 1,134
Total current 30 33
Total non-current 1,101 1,101
THE COMPANY
(Euro 000's) 31 Dec 2023 31 Dec 2022
Financial asset at fair value through OCI (see (a) below) 30 33
Total current 30 33
a) Financial assets at fair value through OCI
The Group
(Euro 000's) 31 Dec 2023 31 Dec 2022
At 1 January 1,134 1,140
Fair value change recorded in equity (Note 23) (3) (6)
At 31 December 1,131 1,134
THE COMPANY
(Euro 000's) 31 Dec 2023 31 Dec 2022
At 1 January 33 39
Fair value change recorded in equity (Note 23) (3) (6)
At 31 December 30 33
Country of incorporation Effective proportion of shares
Company name Principal activities held at 31 December 2023
Explotaciones Gallegas del Cobre SL Exploration company Spain 12.5%
KEFI Minerals Plc Exploration and development mining company listed on AIM UK 0.19%
Prospech Limited Exploration company Australia 0.53%
The Group decided to recognise changes in the fair value through Other
Comprehensive Income ('OCI'), as explained in Note 2.12.
21. Cash and cash equivalents
The Group
(Euro 000's) 31 Dec 2023 31 Dec 2022
Unrestricted cash and cash equivalents at Group level 94,868 108,550
Unrestricted cash and cash equivalents at Operation level 26,139 17,567
Restricted cash and cash equivalents at Operation level - 331
Consolidated cash and cash equivalents 121,007 126,448
Restricted cash amounted at 31 December 2022 to €0.3 million was held in
escrow, which represented funds utilized by the Company to cover interest
payments of €9.6 million on 7 and 8 April 2022 (following the trial in
February and March 2022) and €1.1 million on 16 May 2022 to Astor under the
Master Agreement. However, due to the settlement reached with Astor on 17 May
2023 whereby Astor agreed to repay €3.5 million of interest previously paid
to it to finalise the litigation, the previously restricted cash has now been
released and reversed.
Cash and cash equivalents denominated in the following currencies:
(Euro 000's) 31 Dec 2023 31 Dec 2022
Euro - functional and presentation currency 50,470 84,146
Great Britain Pound 52 895
United States Dollar 70,485 41,407
121,007 126,448
The Company
(Euro 000's) 31 Dec 2023 31 Dec 2022
Cash at bank and on hand 58,958 39,472
Cash and cash equivalents denominated in the following currencies:
Euro - functional and presentation currency 36,191 38,496
Great Britain Pound 41 879
United States Dollar 22,726 97
58,958 39,472
22. Share capital
Shares Share Capital Share premium Total
000's Stg£'000 Stg£'000 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 2021/1 January 2022 138,236 13,447 315,916 329,363
22-Jan-22 1.44 Exercised share options ((b)) 314 28 512 540
22-Jan-22 2.015 Exercised share options ((b)) 321 29 746 775
22-Jan-22 2.045 Exercised share options ((b)) 400 36 941 977
22-Jan-22 1.475 Exercised share options ((b)) 451 42 754 796
22-Jan-22 3.09 Exercised share options ((b)) 135 12 505 517
23-Jun-22 1.475 Exercised share options ((a)) 23 2 37 39
31-Dec-22 139,880 13,596 319,411 333,007
31-Dec-23 139,880 13,596 319,411 333,007
* The Company´s share capital at 31 December 2023 is 139,879,209 ordinary
shares (139,879,209 in 2022) of Stg £0.075 each.
Authorised capital
The Company's authorised share capital is 200,000,000 ordinary shares of
£0.075 each.
Issued capital
No share issuance has taken place in FY2023.
a) On 23 June 2022, the Company announced that it has issued 22,500
ordinary shares of 7.5p in the Company ("Option Shares") pursuant to an
exercise of share options by an employee.
b) On 26 January 2022, the Company announced that is was notified that
PDMRs exercised a total of 1,350,000 options. Further details (including
details of sales of shares following the exercise of options) are given in
Note 23.
23. Other reserves
THE GROUP
(Euro 000's) Share option ((5)) Bonus share Depletion factor ((1)) FV reserve of financial assets at FVOCI ((2)) Non-distributable reserve ((3)) Distributable reserve((4)) Total
At 1 January 2022 9,086 208 24,978 (1,147) 8,000 11,565 52,690
Recognition of depletion factor - - 12,800 - - - 12,800
Recognition of non-distributable reserve - - - - 316 - 316
Recognition of distributable reserve - - - - - 2,726 2,726
Recognition of share based payments((5)) 1,279 - - - - - 1,279
Change in fair value of financial assets at fair value through OCI (Note 20) - - - (6) - - (6)
At 31 December 2022 10,365 208 37,778 (1,153) 8,316 14,291 69,805
Recognition of share based payments 661 - - - - - 661
Change in fair value of financial assets at fair value through OCI (Note 20) - - - (3) - - (3)
At 31 December 2023 11,026 208 37,778 (1,156) 8,316 14,291 70,463
the Company
Fair value reserve of financial assets at FVOCI ((2))
Share option ((5)) Bonus share
Total
(Euro 000's)
At 1 January 2022 9,086 208 (1,147) 8,147
Recognition of share based payments((5)) 1,279 - - 1,279
Change in fair value of financial assets at fair value through OCI (Note 20) - - (6) (6)
At 31 December 2022 10,365 208 (1,153) 9,420
Recognition of share based payments 661 - - 661
Change in fair value of financial assets at fair value through OCI (Note 20) - - (2) (2)
At 31 December 2023 11,026 208 (1,155) 10,079
((1) ) Depletion factor reserve
During the twelve month period ended 31 December 2023, the Group has
recognised €nil (FY2022: addition of €12.8 million) as a depletion factor
reserve as per the Spanish Corporate Tax Act.
((2) ) Fair value reserve of financial assets at FVOCI
The Group decided to recognise changes in the fair value of certain
investments in equity securities in OCI. These changes are accumulated within
the FVOCI reserve under equity. The Group transfers amounts from this reserve
to retained earnings when the relevant equity securities are derecognised.
((3) ) Non-distributable reserve
As required by the Spanish Corporate Tax Act, the Group classified a
non-distributable reserve of 10% of the profits generated by the Spanish
subsidiaries until the reserve is 20% of share capital of the subsidiary.
((4) ) Distributable reserve
The Group reclassified at least 10% of the profit of 2022 to distributable
reserves.
((5) ) Share options
Details of share options outstanding as at 31 December 2023:
Grant date Expiry date Exercise price £ Share options
29 May 2019 28-May-2024 2.015 666,500
30 Jun 2020 30 Jun 2030 1.475 516,000
24 Jun 2021 23 Jun 2031 3.090 1,016,000
26 Jan 2022 25 Jan 2032 4.160 120,000
22 Jun 2022 30 Jun 2027 3.575 1,225,000
22 May 2023 21 May 2028 3.270 1,305,000
Total 4,848,500
Weighted average Share options
exercise price £
At 1 January 2023 2.857 3,543,500
Granted options during the year 3.270 1,305,000
Options executed during the year - -
31 December 2023 2.968 4,848,500
On 23 May 2023, the Company announced that in accordance with the Company's
Long Term Incentive Plan 2020, it granted 1,305,000 share options to Persons
Discharging Managerial Responsibilities ("PDMRs") and other employees.
On 23 June 2022, the Company announced that it has issued 22,500 ordinary
shares of 7.5p in the Company ("Option Shares") pursuant to an exercise of
share options by an employee.
On 26 January 2022, the Company announced that is was notified that PDMRs
exercised a total of 1,350,000 options.
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.
The estimated fair values of the options were calculated using the Black
Scholes option pricing model. The inputs into the model and the results are as
follows:
Grant Weighted average share price £ Weighted average exercise price £ Expected volatility Expected life Risk Expected dividend yield Estimated Fair Value £
Date (years) Free
rate
23 Feb 2017 1.440 1.440 51.8% 5 0.6% Nil 0.666
29 May 2019 2.015 2.015 46.9% 5 0.8% Nil 0.66
8 July 2019 2.045 2.045 46.9% 5 0.8% Nil 0.66
30 June 2020 1.475 1.475 50.32% 10 0.3% Nil 0.60
23 June 2021 3.090 3.090 50.91% 10 0.7% Nil 0.81
26 January 2022 4.160 4.160 49.18% 10 1.149% Nil 1.12
22 June 2022 3.575 3.575 34.12% 5 2.748% Nil 0.71
22 May 2023 3.270 3.270 38.15% 5 4.219% Nil 0.88
The volatility has been estimated based on the underlying volatility of the
price of the Company's shares in the preceding twelve months.
24. Non-controlling interest
(Euro 000's) 2023 2022
Opening balance (6,998) (4,909)
On acquisition of a subsidiary - 140
Share of total comprehensive income for the year (2,106) (2,229)
Closing balance (9,104) (6,998)
The Group has a 10% interest in Cobre San Rafael, S.L. acquired in July 2017
while the remaining 90% is held by a non-controlling interest (Note 2.3 (b)
(1)). The significant financial information with respect to the subsidiary
before intercompany eliminations as at and for the twelve month period ended
31 December 2023 and 2022 is as follows:
(Euro 000's) 2023 2022
Non-current assets 7,273 6,976
Current assets 601 551
Non-current liabilities 17,096 14,478
Current liabilities 697 824
Equity (9,918) (7,776)
Revenue - -
Loss for the year and total comprehensive income (2,341) (2,477)
Cobre San Rafael, S.L. was established on 13 June 2016.
25. Trade and other payables
THE GROUP
(Euro 000's) 31 Dec 2023 31 Dec 2022
Non-current trade and other payables
Other non-current payables 2,003 2,000
Government grant 202 15
2,205 2,015
Current trade and other payables
Trade payables 70,303 84,806
Trade payables to shareholders (Note 30.5) 179 232
Accruals 3,395 3,322
VAT payable 391 259
Other 1,654 1,403
75,922 90,022
THE COMPANY
(Euro 000's) 31 Dec 2023 31 Dec 2022
Current trade and other payables
Suppliers 477 284
Accruals 1,501 1,034
Payable to own subsidiaries (Note 30.4) - 3,825
VAT payable 391 259
2,369 5,402
Other non-current payables are related with the acquisition of Atalaya Masa
Valverde SL formerly Cambridge Minería España, SL and Atalaya Ossa Morena
SLU formerly 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.
The Group's exposure to currency and liquidity risk related to liabilities is
disclosed in Note 3.
Trade payables are non-interest-bearing and are normally settled on 60-day
terms.
26. Provisions
(Euro 000's) Other provisions Legal costs Rehabilitation costs Total costs
At 1 January 2022 - 279 26,299 26,578
Additions - 30 1,033 1,063
Reclassification 1,435 - - 1,435
Used of provision - (10) (81) (91)
Reversal of provision - (73) (3,497) (3,570)
Finance income (Note 8) - - (380) (380)
At 31 December 2022 1,435 226 23,374 25,035
Additions - 1 - 1
Used of provision (685) - (518) (1,203)
Increase of provision - - 3,145 3,145
Finance cost (Note 9) - - 690 690
At 31 December 2023 750 227 26,691 27,668
(Euro 000's) 2023 2022
Non-Current 27,234 24,083
Current 434 952
Total 27,668 25,035
Rehabilitation provision
Rehabilitation provision represents the estimated cost required for 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.
During 2020, Management engaged an independent consultant to review and update
the rehabilitation liability. The updated estimation includes the expanded
capacity of the plant and its impact on the mining project.
The discount rate used in the calculation of the net present value of the
liability as at 31 December 2023 was 3.62% (2022: 3.41%), which is the 15-year
Spain Government Bond rate for 2023. An inflation rate of 1%-5.70% (2022:
1%-5.70%) is applied on annual basis.
The reserves for Proyecto Riotinto are derived from the comprehensive
technical report on the mineral resources and reserves, titled "Technical
Report On the Riotinto Copper Project." The report, dated September 2022,
supersedes the previous December 2020 reference, offering the latest and most
accurate data available. It includes detailed assessments by qualified
experts, ensuring a reliable foundation for the project's proven and probable
reserves, as well as measured and indicated resources.
The expected payments for the rehabilitation work are as follows:
(Euro 000 's) Between Between More than 10 years
1 - 5 Years 6 - 10 Years
Expected payments for rehabilitation of the mining site, discounted 8,563 3,275 14,853
Legal provision
The Group has been named as defendant in several legal actions in Spain, the
outcome of which is not determinable as at 31 December 2023. Management has
reviewed individually each case and made a provision of €227k (€226k in
2022) for these claims, which has been reflected in these consolidated
financial statements.
Other provisions
Other provisions are related with the called-up equity holdings of Atalaya
Masa Valverde S.L.
27. Leases
(Euro 000's) 31 Dec 2023 31 Dec 2022
Non-current
Leases 3,877 4,378
3,877 4,378
Current
Leases 501 536
501 536
The Group entered into lease arrangements for the renting of land and a
warehouse which are subject to the adoption of all requirements of IFRS 16
Leases (Note 2.2). 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.
Amounts recognised in the statement of financial position and profit or loss
Set out below are the carrying amounts of the Group's right-of-use assets and
lease liabilities and the movements during the period:
Right - of-use assets
Laboratory equipment Lease liabilities
(Euro 000's) Lands and buildings Vehicles Total
As at 1 January 2023 5,048 - 30 5,078 4,914
Additions - - - - -
Depreciation expense (503) - (30) (533) -
Interest expense - - - - 25
Payments - - - - (561)
As at 31 December 2023 4,545 - - 4,545 4,378
The amounts recognised in profit or loss, are set out below:
Twelve Twelve month ended
month ended 31 Dec
31 Dec 2022
(Euro 000's) 2023
As at 31 December
Depreciation expense of right-of-use assets (533) (452)
Interest expense on lease liabilities (25) (20)
Total amounts recognised in profit or loss (558) (472)
The Group recognised rent expense from short-term leases (Note 6).
The duration of the land and building lease is for a period of twelve years.
Payments are due at the beginning of the month escalating annually on average
by 1.5%. At 31 December 2023, the remaining term of this lease is six years.
(Note 2)
The duration of the motor vehicle and laboratory equipment lease was for a
period of four years, payments are due at the beginning of the month
escalating annually on average by 1.5%. At 31 December 2023, motor vehicle and
laboratory equipment lease have been terminated.
Present value of minimum lease payments due 31 Dec 2023 31 Dec 2022
€'000 €'000
Within one year 501 536
2 to 5 years 1,928 1,957
Over 5 years 1,949 2,421
4,378 4,914
Minimum lease payments due 31 Dec 2023 31 Dec 2022
€'000 €'000
Within one year 531 561
2 to 5 years 2,125 2,125
Over 5 years 2,285 2,818
4,941 5,504
(Euro 000's) Lease liability
Balance 1 January 2023 4,914
Additions -
Interest expense 25
Lease payments (561)
Balance at 31 Dec 2023 4,378
Balance at 31 Dec 2023
- Non-current liabilities 3,877
- Current liabilities 501
4,378
28. Borrowings
(Euro 000's) 31 Dec 2023 31 Dec 2022
Non-current borrowings
Credit facilities 16,131 20,768
16,131 20,768
Current borrowings
Credit facilities 50,556 52,595
50,556 52,595
The Group had credit approval for unsecured facilities totalling €103.8
million (€119.3 million at 31 December 2022). During 2023, Atalaya drew down
some of its existing credit facilities to financing the construction of 50 MW
solar plant (payable amount of €20.0 million at 31 December 2023) and in
2021 to pay the Deferred Consideration.
Borrowing with fixed interest rates range from 1.75% to 2.45% with an average
fixed interest rate of 2.00%. Margins on borrowing with variable interest
rates, usually 12 months EURIBOR, range from 0.95% to 2.00% with an average
margin of 1.25%.
At 31 December 2023, the Group had used €65.3 million of its facilities and
had undrawn facilities of €38.5 million. Non-current borrowings include
€1.2 million of an interest-free loan received from the Ministerio de
Ciencia e Innovacion and €0.2 million of accrued interest related to solar
plant facilities.
29. Acquisition, incorporation and disposals of subsidiaries
2023
Acquisition and incorporation of subsidiaries
There were no acquisition or incorporation of subsidiaries during the year.
Disposals of subsidiaries
There were no disposals of subsidiaries during the year.
Wind-up of subsidiaries
There were no disposals of subsidiaries during the year.
2022
Acquisition and incorporation of subsidiaries
On 31 January 2022, Atalaya established a new entity, Iberian Polimetal S.L.U.
Disposals of subsidiaries
On 4 January 2022, the subsidiary EMED Mining Spain, S.L. was disposed.
Wind-up of subsidiaries
In 2022 the subsidiary EMED Mining Spain, S.L. was wounded up.
30. Group information and related party disclosures
30.1 Information about subsidiaries
These audited consolidated financial statements include:
Effective proportion of shares held
Parent Principal activity Country of incorporation
Subsidiary companies
Atalaya Touro (UK) Ltd Atalaya Mining Plc Holding United Kingdom 100%
Atalaya Financing Ltd Atalaya Mining Plc Financing Cyprus 100%
Atalaya MinasdeRiotinto Project (UK) Ltd Atalaya Mining Plc Holding United Kingdom 100%
EMED Marketing Ltd Atalaya Mining Plc Trading Cyprus 100%
Atalaya Riotinto Minera S.L.U. Atalaya MinasdeRiotinto Project (UK) Ltd Production Spain 100%
Eastern Mediterranean Exploration and Development S.L.U. Atalaya MinasdeRiotinto Project (UK) Ltd Dormant Spain 100%
Cobre San Rafael, S.L. ((1)) Atalaya Touro (UK) Ltd Exploration Spain 10%
Recursos Cuenca Minera S.L.U. Atalaya Riotinto Minera SLU Dormant Spain J-V
Fundacion Atalaya Riotinto Atalaya Riotinto Minera SLU Trust Spain 100%
Atalaya Servicios Mineros, S.L.U. Atalaya MinasdeRiotinto Project (UK) Ltd Holding Spain 100%
Atalaya Masa Valverde S.L.U. Atalaya Servicios Mineros, S.L.U. Exploration Spain 100%
Atalaya Ossa Morena S.L.U. ((3)) Atalaya Servicios Mineros, S.L.U. Exploration Spain 99.9%
Iberian Polimetal S.L.U. Atalaya Servicios Mineros, S.L.U. Dormant Spain 100%
((1)) Cobre San Rafael, S.L. is the entity which holds the mining rights of
Proyecto Touro. The Group has control in the government, key management and
other key business aspects of Cobre San Rafael, S.L., including one of the two
Directors, management of the financial books and the capacity of appointment
the key personnel (Note 2.3 (b) (1)).
Transactions between Atalaya and Cobre San Rafael are not disclosed as related
party interest as they are fully eliminated as part of the consolidation
process (Note 2.3 (b)).
((3)) Rio Narcea Nickel, S.L.U. changed its name to Atalaya Ossa Morena, S.L.U
on 31 January 2022. In July 2022, Atalaya increased its ownership interest in
Proyecto Ossa Morena to 99.9%, up from 51%, following completion of a capital
increase that will fund exploration activities.
The following transactions were carried out with related parties:
30.2 Compensation of key management personnel
The total remuneration and fees of Directors (including executive Directors)
and other key management personnel was as follows:
The Group The Company
(Euro 000's) 2023 2022 2023 2022
Directors' remuneration and fees 1,092 1,028 605 540
Director's bonus ((1)) 322 357 - -
Share option-based benefits to Directors 190 426 - -
Key management personnel remuneration ((2)) 588 571 - -
Key management bonus ((1)) 221 239 - -
Share option-based and other benefits to key management personnel 190 417 - -
2,603 3,038 605 540
((1)) These amounts related to the approved performance bonus for 2022 by the
Board of Directors following the proposal of the Remuneration Committee. The
2023 estimates recorded are not included in the table above as this is yet to
be approved by the Board of Directors. There is no certainty or guarantee that
the Board of Directors will approve a similar amount for 2023 performance.
((2)) Includes wages and salaries of key management personnel of €568k
(2022: €551k) and other benefits of €20k (2022: €20k). At 31 December
2023 amounts due to Directors, as from the Group, are €nil (€nil at 31
December 2022) and €nil (€nil at 31 December 2022) to key management.
At 31 December 2023 amounts due to Directors, as from the Company, are €nil
(€nil at 31 December 2022) and €nil (€nil at 31 December 2022) to key
management.
Share-based benefits
On 23 May 2023, the Company announced that in accordance with the Company's
Long Term Incentive Plan 2020 which was approved by shareholders at the Annual
General Meeting on 28 June 2023, it had granted 1,305,000 share options, of
which 800,000 to Persons Discharging Managerial Responsibilities and 505,000
to other management.
The Options expire on 21 May 2028, five years from the deemed date of grant
(22 May 2023), have an exercise price of 327 pence per ordinary share, being
the last mid-market closing price on the grant date, and vest in three equal
tranches, one third on grant and the balance equally on the first and second
anniversary of the grant date (see note 23).
During 2023 the Directors and key management personnel have not been granted
any bonus shares (2022: nil).
30.3 Transactions with shareholders and related parties
THE GROUP
(Euro 000's) 2023 2022
Trafigura Pte Ltd - Revenue from contracts ((a)) 78,723 77,005
Gains/(Losses) relating provisional pricing within sales 1,308 (5,165)
80,031 71,840
Impala Terminals Huelva S.L.U. - Port Handling and Warehousing services ((b)) 2,431 1,824
Related parties - total amounts from contracts 82,462 73,664
(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 2023, the company completed 6 sales transactions under the terms of the
Offtake Agreements valued at €36.9m (2022: 7 sales valued at €57.7m).
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 offtake agreements.
In 2023, the Company completed 2 spot sales valued at €43.1m with Trafigura
through amendments to its existing offtake agreement (2022: 2 spot sales
valued at €14.2m).
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
offtake agreement and for the life of mine for the volumes committed to
Trafigura under its 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.
As at year end 31 December 2023 and 2022, Impala Terminals was part of the
Trafigura Group, under joint control.
The Company noted that the fees payable to Impala Terminals were not included
in the related party disclosure notes of the Groups's financial statements in
previous years. During 2023, management has carried out a reassessment of its
relationship with Impala Terminals in accordance with IAS 24 requirements and
has concluded that Impala Terminals is a related party of the Group. The
required disclosures of transactions and balances with Impala Terminals for
the year ended 31 December 2023 and 2022 have been included. These
transactions with related parties are at arm's length basis in a similar
manner to transactions with third parties.
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 offtake agreement.
THE COMPANY
(Euro 000's) 2023 2022
Sales of services (Note 5):
EMED Marketing Ltd 2,540 1,404
Atalaya Riotinto Minera SLU 2,472 1,352
5,012 2,756
Purchase of services (Note 6):
Atalaya Riotinto Minera SLU (19) (66)
(19) (66)
Finance income (Note 8):
Atalaya Minasderiotinto Project (UK) Ltd - Finance income from
interest-bearing loan:
Credit agreement - at amortised cost - 989
Participative loan - at fair value through profit and loss - 9,157
Credit facility - at amortised cost - 1,465
Restructuring loan - at amortised cost 14,087 1,289
14,087 12,900
30.4 Year-end balances with related parties
THE GROUP
(Euro 000's) 31 Dec 2023 31 Dec 2022
Current assets - Receivable from related parties (Note 19):
Recursos Cuenca Minera S.L. 56 56
Total 56 56
The above balances bear no interest and are repayable on demand.
THE COMPANY
(Euro 000's) 31 Dec 2023 31 Dec 2022
Non-current assets - Loan from related parties at FV through profit and loss
(Note 19):
Atalaya Masa Valverde SL - Participative Loan ((2) (3)) - 6,150
Atalaya Ossa Morena SL - Participative Loan ((2) (3)) - 3,100
Atalaya Touro UK Ltd - Participative Loan ((2) (3)) - 4,997
- 14,247
Non-current assets - Loans and receivables from related parties at amortised
cost (Note 19):
Atalaya MinasdeRiotinto Project (UK) Ltd - Restructuring Loan ((1)) - 245,258
Atalaya MinasdeRiotinto Project (UK) Ltd - Group cost sharing 227 399
227 245,657
Current assets - Loans and receivables from related parties at amortised cost
(Note 19):
Atalaya Riotinto Minera SLU ( )- Group cost sharing 3,824 1,352
EMED Marketing Ltd - Group cost sharing 3,686 664
EMED Marketing Ltd ((2)) 15,390 -
Atalaya Touro (UK) Ltd ((2)) 1,654 1,650
Atalaya MinasdeRiotinto Project (UK) Ltd 45,000 45,000
Atalaya Financing Ltd 1,243 108
70,797 48,774
((1) ) This balance bears interest of EURIBOR 12month plus 3.
50%. The Participative loan was cancelled on 30 November 2022. The Group
signed on 1 December 2022 a new Loan Restructuring Agreement for the amount
due of the Participative Loan bearing a EURIBOR 12month plus 3.50% interest
and maturing on 30 November 2028. On 29 December 2023, the loan with a
remaining balance of €195 million was transferred to Atalaya Financing
Limited in exchange for share capital raised (Note 15).
((2) ) This balance bears no interest.
((3) ) On 29 December 2023, these loans with remaining balances
of €21.3 million were transferred to Atalaya Financing Limited in exchange
for share capital raised (Note 15).
THE COMPANY
(Euro 000's) 31 Dec 2023 31 Dec 2022
Payable to related party (Note 25):
EMED Marketing Ltd - 3,825
- 3,825
The above balances bear no interest and are repayable on demand.
30.5 Year-end balances with shareholders and their joint ventures
(Euro 000's) 31 Dec 2023 31 Dec 2022
Receivable from shareholder (Note 19)
Trafigura Pte. Ltd 5,054 12,800
- Debtor balance- subject to provisional pricing
5,054 12,800
Payable from joint venture of shareholder (Note 25)
Impala Terminals Huelva S.L.U. - Payable balance (179) (232)
(179) (232)
The above debtor balance arising from the agreements between Trafigura and
Impala (Note 30.3), bear no interest and is repayable on demand.
31. 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.
32. 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.
33. Significant events
The events in Ukraine from 24 February 2022 are having an impact on the global
economy, but the full implications cannot yet be predicted.
Recent events in Israel since October 2023 have had an effect on the global
economy, causing an increase in oil prices, disruptions to transport and
logistics, rising freight costs and uncertain delivery schedules.
The financial consequences of the current crisis on the global economy and
business activity as a whole cannot be estimated with any reasonable degree of
certainty at this stage.
· On 12 January 2023, the Company was notified that Allianz Global
Investors GmbH, shareholder of the Company, decreased its voting rights from
4.93% to 3.98%.
· On 20 February 2023, Atalaya announced a voluntary delisting of
its ordinary shares from the TSX which was effective from the closing of
trading on 20 March 2023.
· On 23 February 2023, Atalaya announced the results from a new PEA
for the Cerro Colorado, San Dionisio and San Antonio deposits at its Proyecto
Riotinto operation in Spain.
· On 28 March 2023, Atalaya announced that Proyecto Masa Valverde
was granted the Unified Environmental Authorisation AAU by the Junta de
Andalucía. On 26 January 2022, executed certain options by PDMRs;.
· On 23 May 2023, the Company announced that in accordance with the
Company's Long Term Incentive Plan 2020, it granted 1,305,000 share options to
PDMR and other employees.
· On 26 June 2023, the Company announced that the Ontario
Securities Commission, as principal regulator, granted Atalaya's request to
cease to be a reporting issuer in the Canadian Jurisdictions.
· On 10 July 2023, a PMDR sold 250,000 ordinary shares.
· Following the approval of Resolution 10 by the Company's
shareholders at its 2023 Annual General Meeting, which took place on 28 June
2023, the 2022 Final Dividend of US$0.0385 per ordinary share was paid on 8
August 2023.
· On 9 August 2023, the Company's Board of Directors declared an
Interim Dividend for 2023 of US$0.05 per ordinary share, which is equivalent
to approximately 3.9 pence per share. The Interim Dividend was paid on 28
September 2023 using foreign exchange rates announced on 12 September 2023.
· On 10 October 2023, Atalaya announced that a PDMR purchased 5,000
ordinary shares.
· On 13 November 2023, Atalaya announced its intention to apply for
the Company's ordinary shares to be admitted to the premium listing segment of
the Official List maintained by the FCA and to trading on the London Stock
Exchange plc's main market for listed securities.
· On 14 November 2023, Atalaya announced its intention to
re-domicile the Company by transferring its registered office from the
Republic of Cyprus to the Kingdom of Spain.
· On 17 November 2023, the Company was notified that BlackRock,
Inc., shareholder of the Company, decreased its voting rights from 4.03% to
3.99%. On 18 December 2024 the Company was notified that BlackRock, Inc.
increased its voting rights from 3.99% to 4.01%.
· On 12 December 2023, the Company hosted a 2023 Extraordinary
General Meeting in London to approve the re-domiciliation.
· On 14 December 2023, The Company announced that it 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 20 December 2023, the Company was notified that Ithaki
Limited., a shareholder of the Company, acquired 6.02% of the voting rights.
· On 21 December 2023, Atalaya announced that in relation to its
application to the FCA to admission of its Ordinary Shares to the premium
listing segment of the Official List and to trading on the main market for
listed securities of the London Stock Exchange's, as announced on 13 November
2023, the Company has continued to progress the application process and
admission remains subject to a number of conditions including the approval of
a prospectus by the FCA.
34. Events after the reporting period
· On 10 January 2024, Atalaya paid €0.7m following the
acquisition of the Masa Valverde polymetallic project after receiving the
exploitation permits and restoration plan.
· On 9 February 2024, Atalaya announced that it issued 20,000
ordinary shares of 7.5p in the Company pursuant to an exercise of share
options by a former employee.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR DZGMFLRFGDZMRecent news on Atalaya Mining
See all newsREG - Atalaya Mining PLC - Holding(s) in Company
AnnouncementREG - FTSE Russell - Atalaya Mining
AnnouncementREG - Atalaya Mining PLC - Publication of Prospectus
AnnouncementREG - Atalaya Mining PLC - Q1 2024 Operations Update
AnnouncementREG - Atalaya Mining PLC - 2023 Annual Results
Announcement