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RNS Number : 0262M Atalaya Mining PLC 19 May 2022
19 May 2022
Atalaya Mining Plc.
("Atalaya" and/or the "Group")
Q1 2022 Financial Results
Good financial performance despite impact of energy prices, inflation and
transport sector strike
Atalaya Mining Plc (AIM: ATYM; TSX: AYM) is pleased to announce its unaudited
quarterly results for the three months ended 31 March 2022 ("Q1 2022" or
"Period"), together with its unaudited interim financial statements for Q1
2022.
The Unaudited Interim Condensed Consolidated Financial Statements for the
three months ended 31 March 2022 are also available under the Company´s
profile on SEDAR at www.sedar.com (http://www.sedar.com) and on Atalaya's
website at www.atalayamining.com (http://www.atalayamining.com) .
Highlights
· Good financial performance including cash flows from operating
activities of €28.3 million, despite unprecedented energy costs,
inflationary pressures and transport sector strike
· Continued to strengthen the balance sheet, with net cash position
growing to €86.8 million
· Maintaining 2022 full year operational outlook including copper
production of 54 - 56 kt
· Growth pipeline advancing as outlined in the April 2022 announcements
of new Mineral Resource Estimates for higher grade Riotinto District deposits
- San Dionisio, San Antonio and Proyecto Masa Valverde
Q1 2022 Financial Results Summary
Quarter ended 31 March Unit Q1 2022 Q1 2021 %
Revenues from operations €k 86,251 97,380 (11.4%)
Operating costs €k (54,789) (48,026) 14.1%
EBITDA €k 26,712 47,443 (43.7%)
Profit for the period €k 18,257 33,702 (45.8%)
Basic earnings per share € cents/share 13.5 24.5 (44.9%)
Cash flows from operating activities €k 28,298 36,803 (23.1%)
Cash flows used in investing activities ((1)) €k (7,552) (63,930) (88.2%)
Cash flows from financing activities €k (2,378) 52,948 (104.5%)
Net cash position ((2)) €k 86,836 10,588 720.1%
Working capital surplus €k 120,124 61,028 96.8%
Average realised copper price US$/lb 4.42 3.62 22.2%
Cu concentrate produced tonnes 54,209 67,260 (19.4%)
Cu production tonnes 11,461 13,979 (18.0%)
Cash costs US$/lb payable 3.33 2.04 63.5%
All-In Sustaining Costs ("AISC") US$/lb payable 3.59 2.46 46.0%
((1) ) Q1 2021 includes €53 million early payment of the
Deferred Consideration to Astor.
((2) ) Includes restricted cash and bank borrowings at 31 March
2022 and 31 March 2021.
Alberto Lavandeira, CEO commented:
"We are pleased to have generated over €20 million in free cash flow during
the quarter, despite the many external challenges we faced. The transport
sector strike in March forced a temporary shutdown of our processing plant,
electricity prices in Spain remain extremely high compared to historical and
expected future rates, and cost inflation is affecting the prices of many key
consumables.
However, our team has been successful in reducing the impact of these external
factors. During the transport sector strike, we brought forward maintenance
activities which should allow for higher throughput in Q2, we are advancing
the construction of our 50 MW solar plant and entered into a new long term
PPA, and are implementing various efficiency measures to help to offset cost
inflation. We also look forward to the new regulations proposed by Spain,
which would cap the gas price and significantly reduce spot electricity
prices.
Meanwhile, we continue to focus on advancing our project pipeline in the
Riotinto District, which we believe can deliver significant production growth
at low capital intensity as a result of the expected grades and synergies
associated with utilising our existing plant as a central processing hub. In
addition, stakeholder dialogue and the permitting process continue at Proyecto
Touro, which could become a new source of safe and responsible copper
production in Europe."
Investor Presentation Reminder
Alberto Lavandeira (CEO) and César Sánchez (CFO) will be holding a live
presentation relating to the Q1 2022 results via the Investor Meet Company
platform at 1:00pm BST today.
To register, please visit the following link and click "Add to Meet" Atalaya
via:
https://www.investormeetcompany.com/atalaya-mining-plc/register-investor
Management will also answer questions that have been submitted via the
Investor Meet Company dashboard.
Q1 2022 Operating Results Summary
Units expressed in accordance with the international system of units (SI)
Unit Q1 2022 Q1 2021
Ore mined Mt 4.0 3.3
Ore processed Mt 3.5 4.0
Copper ore grade % 0.37 0.41
Copper concentrate grade % 21.14 20.78
Copper recovery rate % 86.07 84.90
Copper concentrate tonnes 54,209 67,260
Copper contained in concentrate tonnes 11,461 13,979
Payable copper contained in concentrate tonnes 10,918 13,306
Mining
Ore totalling 4.0 million tonnes was mined during Q1 2022, which is consistent
with processing rates in recent quarters. This compares with ore mined of 3.3
million tonnes in Q1 2021.
Processing
The plant processed 3.5 million tonnes of ore during Q1 2022, compared to 4.0
million tonnes in Q1 2021 and 3.9 million tonnes in Q4 2021. The decrease
resulted from the transport sector strike, which interrupted the supply of
essential daily consumables and resulted in a temporary shut down of the
plant. In order to minimise the impact of the down time on full year
production, the Company brought forward certain maintenance works previously
planned for Q2.
The processed copper grade was 0.37%, which was below comparative quarters and
resulted from pit sequencing. Copper recoveries were strong at 86.07% despite
lower grades, compared to 84.90% in the Q1 2021 period.
Production
Copper production in Q1 2022 was 11,461 tonnes, which was below Q1 2021
production of 13,979 tonnes. The decrease in copper production was mainly
attributable to the temporary plant shutdown following the transport sector
strike and lower copper grades processed, partially offset by higher copper
recoveries.
Q1 2022 Financial Results Highlights
Income Statement
Revenues for Q1 2022 were €86.3 million, compared with €97.4 million in Q1
2021. The reduction was mainly as a result of lower copper concentrate sales
volumes, partially offset by higher realised copper prices of US$4.42/lb
compared with US$3.62/lb in Q1 2021.
Operating costs for Q1 2022 were €54.8 million, compared with €48.0
million in Q1 2021, due primarily to the increase in electricity prices
following the invasion of the Ukraine and inflation associated with other key
supplies.
EBITDA for the Period was €26.7 million, below Q1 2021 of €47.4 million.
The decrease in EBITDA was driven by the combination of lower revenues and
higher operating costs compared with Q1 2021.
Profit after tax was €18.3 million, or 13.5 cents basic earnings per share,
compared with Q1 2021 profit after tax of €33.7 million, or 24.5 cents basic
earnings per share.
Cash costs for Q1 2022 were US$3.33/lb payable copper, considerably higher
than those reported in Q4 2021 (US$2.18/lb) and Q1 2021 (US$2.04/lb) as a
result of lower production volumes and higher costs associated with
electricity and other supplies, partially offset by the weaker Euro.
AISC during Q1 2022 amounted to US$3.59/lb payable copper compared with
US$2.48/lb payable copper in Q4 2021 and US$2.46/lb in Q1 2021. The increase
in AISC in Q1 2022 was mainly driven by the same factors that increased cash
costs. AISC excludes investment in the tailings dam during the Period, which
amounted to €2.5 million (Q1 2021: €2.7 million).
Cash Flow Statement
Cash flow from operating activities before changes in working capital amounted
to €26.9 million in Q1 2022 (Q1 2021: €50.2 million) or €28.3 million
after working capital changes (Q1 2021: €36.8 million).
Cash flows used in investing activities were €7.6 million in Q1 2022,
compared with €63.9 million in Q1 2021, which included the payment of
deferred consideration to Astor. Capital expenditures in Q1 2022 included
€0.9 million in sustaining capex, €2.5 million for tailings dam expansion,
as well as land purchases.
Cash flows used in financing activities were €2.4 million, which included
debt repayment of €5.8 million and the proceeds of employee options,
compared with an inflow of €52.9 million in Q1 2021 following the drawdown
of unsecured debt facilities to fund the payment to Astor.
Balance Sheet
Consolidated cash and cash equivalents as at 31 March 2022 were €128.5
million (including restricted cash and equivalents of €15.4 million), up
from €107.5 million as at 31 December 2021 and €63.6 million as at 31
March 2021.
Net of current and non-current borrowings of €41.6 million, net cash was
€86.8 million as at 31 March 2022, up from €60.1 million as at 31 December
2021 and €10.6 million as at 31 March 2021.
Inventories of concentrate at 31 March 2022 valued at cost amounted to €14.6
million (31 December 2021: €6.6 million). As at 31 March 2022, total working
capital was €120.1 million, representing a €17.7 million increase from the
€102.4 million surplus as at 31 December 2021 and an increase of €59.1
million from 31 March 2021.
Sustainability Reporting
On 25 April 2022, the Company published its inaugural sustainability report,
as part of its ongoing commitment to enhancing its disclosure and reporting.
The 2021 Sustainability Report, which is available on the Company's website,
was prepared in accordance with Global Reporting Initiative Sustainability
Reporting Standards ("GRI Standards") with the assistance of independent
sustainability consultancy ERM and was audited by EY.
Energy Market Developments in Spain
Situation Update
During Q1 2022, the price of electricity in Spain continued the volatile trend
of late 2021 and reached unprecedented peaks in March as a result of the
conflict in the Ukraine. The European natural gas reference price ("TTF")
peaked at an all-time high that was ten times the level of one year earlier.
Although the consumption of European gas in Spain and Portugal is minimal, the
price of electricity is set by the marginal high-cost producer that uses TTF
as a reference, and as a result the Company has seen the price of electricity
during Q1 2022 averaging around €230/MWh, which is almost four times higher
than the price realised in 2021.
The Spanish Government announced plans to implement measures that will aim to
significantly reduce prices, which are currently unsustainable for the general
economy. The details of these measures have not been finalised yet but are
expected to come into effect during the coming months.
Since the end of the Period, TTF has decreased by over 50% from its peak in
March, and in April, electricity prices in Spain averaged around €190/MWh,
including days when the price was below €90/MWh.
Electricity Procurement Strategy
The Company is focused on implementing a range of measures that will reduce
its long term energy costs and exposure to the spot market, while also
lowering carbon footprint.
As previously announced, in Q1 2022 the Company signed a long-term Power
Purchase Agreement ("PPA") with its electricity supplier for approximately 31%
of its electricity requirements, with deliveries beginning in January 2023 at
prices that are approximately 80% of the rate realised in 2021.
The Company's planned 50 MW solar plant for self-consumption will also help to
reduce the Company's long term power costs while at the same time lower its
carbon emissions. The solar plant, which is expected to provide approximately
22% of the Company's electricity needs, is under construction following the
signing of an agreement with an affiliate of Endesa, the power supply company.
With ground preparation under way and equipment on order, full commissioning
of the solar plant is expected in H1 2023.
In additional, the Company is evaluating further long term renewable power
initiatives such as additional solar capacity, the installation of a wind farm
for self-consumption at the mine site and a pumped hydro project linked with
the clean water dams that the Company is already utilising.
Outlook for 2022
The Company is maintaining its previously announced guidance for 2022, despite
the operational disruptions and lower grades experienced during the Period.
Full year copper production guidance is 54,000 - 56,000 tonnes, with
improvements in copper grade and ore throughput expected in the remaining
quarters of the year, due in part to the bringing forward of maintenance
activities during the transport sector strike.
2022 guidance for cash costs and AISC are US$2.25 - 2.80/lb and US$2.50 -
3.05/lb, respectively. Although electricity prices remain elevated at present,
they are within the range assumed when setting annual cost guidance. In
addition, as Europe enters the summer months and regulatory changes are
implemented in relation to energy prices, the cost of electricity is expected
to return to normalised levels. The Euro/U.S. dollar exchange rate has also
weakened compared to the 1.16 budget, averaging 1.12 during Q1 2022.
ELIX
In January 2022, the Company announced the approval of the development of a
Phase I industrial-scale plant that utilises the E-LIX System. The plant will
produce high value copper and zinc metals from complex sulphide concentrates
produced from material sourced within the Riotinto District.
All equipment has been ordered and construction activities are under way. The
plant is expected to reach the commissioning phase before the end of 2022.
Update on Asset Portfolio
Riotinto District - Cerro Colorado
Several efficiency and cost reduction initiatives have been implemented in
recent months. The expert system to control the SAG mill operations has been
fully implemented and is reducing energy consumption. Various initiatives have
focused on improving the flotation process, including the use of new reagents
which have had a positive impact on recoveries. Also, the new tailings
thickening circuit has successfully reduced lime consumption.
Riotinto District - San Dionisio and San Antonio
As announced on 13 April 2022, an independent consultant has finalised new
Mineral Resource Estimates for the San Dionisio and San Antonio deposits, as
part of preparing a new NI 43-101 technical report on the overall Proyecto
Riotinto property.
The San Dionisio deposit is located immediately west of the operating Cerro
Colorado open pit. It represents a high-grade resource that could be mined
first by open pit methods by expanding the existing historic Atalaya pit,
followed by underground methods for the remaining resource. The San Dionisio
deposit contains copper ore that is very similar to what is currently being
mined at Cerro Colorado, as well as polymetallic mineralisation containing
copper, zinc and lead. Atalaya plans to complete a PEA on an operating
schedule that combines Cerro Colorado reserves with higher grade material from
San Dionisio deposit during 2022. Open pit mining at San Dionisio will require
the relocation of certain infrastructure such as the public road, power lines
and water lines that currently run between the two deposits.
San Antonio is a shallow polymetallic deposit that will require underground
mining methods. It is located immediately east of the Cerro Colorado open pit,
from where it is easily accessible via the construction of a ramp.
Riotinto District - Proyecto Masa Valverde ("PMV")
PMV consists of two main deposits: the large Masa Valverde ("MV") deposit and
the smaller, shallower and higher grade Majadales ("MJ") deposit, which is
located 1 km to the southeast of MV along the same northwest trending
structure.
A new Mineral Resource Estimate for PMV was announced on 5 April 2022, which
included a significant increase in tonnage and contained copper, gold and
silver compared to the prior estimate. An initial Indicated Mineral Resource
was also declared for the MV deposit. The supporting NI 43-101 technical
report has now been filed. As a next step, the Company plans to complete a PEA
that focuses on scenarios that would leverage the existing plant at Proyecto
Riotinto and access the orebodies via a single ramp.
Four rigs continue drilling at PMV, with two focused on the Campanario trend
and the other two drill testing a Fix Loop Electromagnetic Anomaly ("FLEM")
anomaly 300 meters west of MV. The Campanario trend is a parallel structure to
MV-MJ, located 1 km to the north and with associated outcropping
mineralisation (gossans and sulphide stockworks) along approximately 5 km. In
addition, several high-priority FLEM anomalies were defined on PMV, all of
which will be systematically drill tested.
Riotinto District - Proyecto Riotinto Este
At Riotinto East, work continues on the definition of drill targets as well as
obtaining the pending administrative permits. It is expected that drilling
will commence in the coming months.
Proyecto Touro
Atalaya remains committed to the development of the Touro copper project and
continues to engage with all stakeholders in order to resolve any concerns
associated with the project.
Consistent with its commitment to a world class development of the project,
the Company made the decision to address the legacy issues associated with
water runoff from the historical mine prior to submitting the Environmental
Impact Assessment ("EIA") for the new Touro development proposal. The original
plan was to construct a water treatment plant during project development, but
the Company has volunteered to address the legacy matters ahead of the EIA
submission as an early contribution to the local community and to demonstrate
that operating systems have drastically improved over the last 35 years. The
water treatment plant is near completion.
In addition, as an integral part of Atalaya's commitment to excellence and
long-term transparency in relation to the development of Touro, agreements
have been signed with major fishing communities in order to implement a water
quality control system located downstream of Touro at the Ulla River, in order
to demonstrate the project's lack of impact on the river. This is consistent
with the Company's overall project design and its "zero-discharge" philosophy.
The Company continues to be confident that its approach to Touro, which
includes fully plastic lined tailings with zero discharge, is in line 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 ("POM")
At Proyecto Ossa Morena, preparation work continues and it is expected that
drilling will begin at the flagship Alconchel-Pallares Cu-Au project during
July or August.
Update on Corporate Developments
Astor Litigation
As announced on 21 March 2022 and 24 March 2022, the Company received the
formal Judgment from the High Court of Justice in relation to the claim for
residual interest arising out of the payment of €53 million in deferred
consideration to Astor.
The Judgment, which puts an end to the litigation between the parties (subject
to any appeal by either party), clarified the basis for calculating the
interest due and confirmed that it is payable by the Company.
On 7 and 8 April 2022, the Company paid €9.6 million to Astor from the trust
account of €15.4 million previously established by Atalaya on 15 July 2021.
A hearing was held on 6 May 2022 and the calculation of the correct interest
arising under the Master Agreement was subsequently agreed between the
parties. Atalaya has agreed a final payment amount of €1.1 million with
Astor which was paid on 16 May 2022.
This announcement contains information which, prior to its publication
constituted inside information for the purposes of Article 7 of Regulation
(EU) No 596/2014.
Contacts:
SEC Newgate UK Elisabeth Cowell / Axaule Shukanayeva / Max Richardson + 44 20 3757 6882
4C Communications Carina Corbett +44 20 3170 7973
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 and TSX-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 centralised processing hub for ore sourced from its
wholly owned regional projects around Riotinto that include Proyecto Masa
Valverde and Proyecto Riotinto Este. 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. In addition, Atalaya is in permitting phase of Proyecto
Ossa Morena. For further information, visit www.atalayamining.com
(http://www.atalayamining.com)
ATALAYA MINING PLC
MANAGEMENT'S REVIEW AND
UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
31 March 2022
Notice to Reader
The accompanying unaudited, condensed, interim consolidated financial
statements of Atalaya Mining Plc have been prepared by and are the
responsibility of Atalaya Mining Plc's management. The unaudited, condensed,
interim consolidated financial statements have not been reviewed by Atalaya's
auditors.
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 2021 and 31 March 2022 and results of operations
for the three months ended 31 March 2022 and 2021.
This report has been prepared as of 18 May 2022. The analysis, hereby
included, is intended to supplement and complement the unaudited interim
condensed consolidated financial statements and notes thereto ("Financial
Statements") as at and for the period ended 31 March 2022. The reader should
review the Financial Statements in conjunction with the review of this report
and with the audited, consolidated financial statements for the year ended 31
December 2021. This document can be found on SEDAR at www.sedar.com
(http://www.sedar.com) and on Atalaya's website at www.atalayamining.com
(http://www.atalayamining.com) .
Atalaya prepares its Annual Financial Statements in accordance with
International Financial Reporting Standards ("IFRSs") as adopted by EU and its
Unaudited Interim Condensed Consolidated Financial Statements in accordance
with International Accounting Standards 34: Interim Financial Reporting. The
currency referred to in this document is the Euro, unless otherwise specified.
Forward-looking statements
This report may include certain "forward-looking statements" and
"forward-looking information" under applicable securities laws. Except for
statements of historical fact, certain information contained herein
constitutes forward-looking statements. Forward-looking statements are
frequently characterised by words such as "plan", "expect", "project",
"intend", "believe", "anticipate", "estimate", and other similar words, or
statements that certain events or conditions "may" or "will" occur.
Forward-looking statements are based on the opinions and estimates of
management at the date the statements are made, and are based on a number of
assumptions and subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ materially from
those projected in the forward-looking statements. Assumptions upon which such
forward-looking statements are based include that all required third party
regulatory and governmental approvals will be obtained. Many of these
assumptions are based on factors and events that are not within the control of
Atalaya and there is no assurance they will prove to be correct. Factors that
could cause actual results to vary materially from results anticipated by such
forward-looking statements include changes in market conditions and other risk
factors discussed or referred to in this report and other documents filed with
the applicable securities regulatory authorities. Although Atalaya has
attempted to identify important factors that could cause actual actions,
events or results to differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events or results
not to be anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
statements. Atalaya undertakes no obligation to update forward-looking
statements if circumstances or management's estimates or opinions should
change except as required by applicable securities laws. The reader is
cautioned not to place undue reliance on forward-looking statements.
1. Incorporation and description of the Business
Atalaya Mining Plc (the "Company") was incorporated in Cyprus on 17 September
2004 as a private company with limited liability under the Companies Law, Cap.
113 and was converted to a public limited liability company on 26 January
2005. Its registered office is at 1 Lampousa Street, Nicosia, Cyprus.
The Company was listed on AIM of the London Stock Exchange ("AIM") in May 2005
under the symbol ATYM and on the Toronto Stock Exchange ("TSX") on 20 December
2010 under the symbol AYM. The Company continued to be listed on AIM and the
TSX as at 31 March 2022.
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 currently owns four mining projects: Proyecto Riotinto, Proyecto
Touro, Proyecto Masa Valverde and Proyecto Ossa Morena. In addition, the
Company has an earn-in agreement to acquire three investigation permits at
Proyecto Riotinto Este.
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 mineralisation, which will add to the potential of
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).
Proyecto Masa Valverde is currently in the permitting process.
Proyecto Riotinto Este
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.
Proyecto Ossa Morena
In December 2021, Atalaya announced the acquisition of a 51% interest in Rio
Narcea Nickel, S.L., which owns 17 investigation permits. The acquisition also
provided a 100% interest in three investigation permits that are also located
along the Ossa-Morena Metallogenic Belt.
2. Overview of Operational Results
Proyecto Riotinto
The following table presents a summarised statement of operations of Proyecto
Riotinto for the three months ended 31 March 2022 and 2021 and the three
months ended 31 December 2021.
Three months Three months ended Three months ended
Units expressed in accordance with the international system of units (SI) ended 31 Mar 2021 31 Dec 2021
Unit 31 Mar 2022
Ore mined t 3,954,647 3,328,389 3,494,222
Ore processed t 3,547,487 4,005,790 3,846,559
Copper ore grade % 0.37 0.41 0.41
Copper concentrate grade % 21.14 20.78 21.44
Copper recovery rate % 86.07 84.90 87.04
Copper concentrate t 54,209 67,260 64,695
Copper contained in concentrate t 11,461 13,979 13,872
Payable copper contained in concentrate t 10,918 13,306 13,225
Cash cost* US$/lb payable 3.33 2.04 2.24
All-in sustaining cost* US$/lb payable 3.59 2.46 2.46
(*) Refer to section 5 of this Management´s Review
Note: There may be slight differences between the numbers in the above table
due to rounding.
Three months operational review
During Q1 2022, a total of 3,547,487 tonnes of ore were processed with an
average copper head grade of 0.37% and a recovery rate of 86.07%. Compared
with Q1 2021, throughput decreased 11.4% while recoveries increased 1.4%.
The decrease in copper production compared to prior periods was mainly
attributable to the temporary plant shutdown following the transport sector
strike, the bringing forward of certain maintenance works and lower copper
grades processed, partially offset by higher copper recoveries.
On-site copper concentrate inventories at the end of Q1 2022 were
approximately 9,904 tonnes. All concentrate in stock at the beginning of the
Period was delivered to the port at Huelva.
Copper prices increased during Q1 2022 compared with Q4 2021. The average
copper spot price during the period was US$4.53/lb. The realised price during
Q1 2022 excluding QPs was approximately US$4.50/lb.
3. Outlook
The forward-looking information contained in this section is subject to the
risk factors and assumptions contained in the cautionary statement on
forward-looking statements included in the Basis of Reporting. The Company is
aware that the inflationary pressure on the goods and services required for
its business and the geopolitical developments in Ukraine and its impact on
energy prices 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.
3. Outlook (cont.)
Operational guidance
Proyecto Riotinto operational guidance for 2022 remains unchanged. Should the
Company consider the current guidance no longer achievable, then the Company
will provide a further update.
Guidance
Unit 2022
Ore mined million tonnes 15.5
Waste mined million tonnes 23.4
Ore processed million tonnes 15.2 - 15.8
Copper ore grade % 0.42
Copper recovery rate % 83 - 86
Contained copper tonnes 54,000 - 56,000
Cash costs $/lb payable 2.25 - 2.80
All-in sustaining cost $/lb payable 2.50 - 3.05
Atalaya's operating budget for 2022 was set in early December 2021 based on
certain economic assumptions of expected inflation, particularly with respect
to energy costs.
On this basis, full year 2022 copper production is estimated to be in the
range of 54,000 to 56,000 tonnes.
As a result of actual electricity costs in early 2022, the Company has
provided cash cost and AISC guidance that reflects a range of outcomes of
potential energy costs for the full year. Cash costs for 2022 are expected to
be in the range of $2.25/lb - $2.80/lb. AISC for 2022 is expected to be in the
range of $2.50/lb - $3.05/lb copper payable. In addition, the Company expects
to spend approximately €12.5 million in 2022 as part of the project to
increase the capacity of the tailing dam. AISC are presented net of the
one-off project to increase the capacity of the tailing dam.
4. Overview of the Financial Results
The following table presents summarised consolidated income statements for the
three months ended 31 March 2022, with comparatives for the three months ended
31 March 2021.
Three months ended Three months ended
31 Mar 2022 31 Mar 2021
(Euro 000's)
Revenue 86,251 97,380
Total operating costs (54,789) (48,026)
Administrative and other expenses (3,583) (1,573)
Exploration expenses (452) (120)
Care and maintenance expenditure (715) (218)
EBITDA 26,712 47,443
Depreciation/amortisation (7,520) (8,944)
Net foreign exchange gain 2,573 2,930
Net finance cost (315) (82)
Tax (3,193) (7,645)
Profit for the period 18,257 33,702
4. Overview of the Financial Results (cont.)
Three months financial review
Revenues for the three-month period ended 31 March 2022 amounted to €86.3
million (Q1 2021: €97.4 million). Lower revenues are mainly due to a
decrease in copper concentrate volume sold despite higher realised copper
prices.
Decrease in concentrate sold resulted from the transport sector strike, which
interrupted the supply of essential daily consumables as a result of which the
Company brought forward certain maintenance works previously planned for Q2
and shut down the plant temporarily in order to minimise the impact of the
transport sector strike on full year production.
Realised prices were US$4.42/lb copper during Q1 2022 compared with US$3.62/lb
copper in Q1 2021.
Operating costs for the three-month period ended 31 March 2022 amounted to
€54.8 million, compared with €48.0 million in Q1 2021. Unit operating
costs in Q1 2022 were higher than in Q1 2021 due to the high cost of
electricity, diesel and other supplies as result of inflation and the
geopolitical situation in the Ukraine.
Cash costs of US$3.33/lb payable copper during Q1 2022 compared with US$2.04lb
payable copper in the same period last year. Higher cash costs were mainly due
to the reduced production levels and the increase in cost of electricity power
and other supplies despite the stronger US Dollar/Euro rate in Q1 2021 which
partially offset the higher operating costs in Q1 2022. AISC excluding
investment in tailings dam for Q1 2022 were US$3.59/lb payable copper compared
to US$2.46/lb payable copper in Q1 2021.The increase was mainly driven by the
impacts derived from the cash costs despite of lower capitalised stripping
costs, which amounted to €0.7 million in Q1 2022 compared with €4.2
million invested in Q1 2021.
Sustaining capex for Q1 2022 amounted to €0.9 million compared with €1.9
million in Q1 2021. Sustaining capex was mainly related to continuous
enhancements in the processing systems of the plant. In addition, the Company
invested €2.5 million in the project to increase the tailings dam during Q1
2022.
Administrative and other expenses amounted to €3.6 million (Q1 2021: €1.6
million) and include non-operating costs of the Cyprus office, corporate legal
and consultancy costs, on-going listing costs, officers and directors'
emoluments, and salaries and related costs of the corporate office. The higher
cost in the period was mainly related to legal costs owing to Astor litigation
case and expenses related to the execution of share options by certain
employees.
Exploration costs for the three-month period ended 31 March 2022 amounted to
€0.5 million, higher than Q1 2021 (€0.1 million).
EBITDA for the three months ended 31 March 2022 amounted to €26.7 million
compared with Q1 2021 of €47.4 million.
The main item below the EBITDA line is depreciation and amortisation of €7.5
million (Q1 2021: €8.9 million). Lower depreciation was mainly due to the
decrease in ore mined. Net financing costs for Q1 2022 amounted to €0.3
million compared with €82k in Q1 2021. Net finance costs are mainly related
to credit facilities used to pay the Deferred Consideration to Astor in Q1
2021 (Note 5).
The net foreign exchange gain in Q1 2022 totalled €2.6 million (Q1 2021:
€2.9 million).
Income tax expense booked in Q1 2022 amounted to €3.2 million (Q1 2021:
€7.6 million). Lower expenses compared to comparative period is due to lower
profit in Q1 2022.
Copper prices
The average realised copper price increased 18.1% from US$3.62 per pound in Q1
2021 to US$4.42 per pound in Q1 2022.
The average prices of copper for the three months ended 31 March 2022 and 2021
are summarised below:
Three months ended Three months ended
31 Mar 2022 31 Mar 2021
(USD)
Realised copper price per lb 4.42 3.62
Market copper price per lb 4.53 3.85
4. Overview of the Financial Results (cont.)
Realised copper prices for the reporting period noted above have been
calculated using payable copper and including provisional invoices and final
settlements of quotation periods ("QPs") together. Lower realised prices than
market averages are mainly due to the final settlement of invoices where QP
was fixed in previous quarters due to a short open period when copper prices
were lower. Atalaya's average realised price increased to US$4.42/lb from
US$4.36/lb in the previous quarter. When excluding the QPs, the realised price
during Q1 2022 was US$4.50/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 agency fees,
expenditures on rehabilitation, capitalised stripping costs, exploration and
geology costs, corporate costs and sustaining capital expenditures, but
excludes one-off sustaining capital projects, such as investments in the
tailings dam.
Realised price per pound of payable copper is the value of the copper payable
included in the concentrate produced including the discounts and other
features governed by the offtake agreements of the Group and all discounts or
premiums provided in commodity hedge agreements with financial institutions,
if any, expressed in USD per pound of payable copper. Realised price is
consistent with the widely accepted industry standard definition.
6. Liquidity and Capital Resources
Atalaya monitors factors that could impact its liquidity as part of Atalaya's
overall capital management strategy. Factors that are monitored include, but
are not limited to, the market price of copper, foreign currency rates,
production levels, operating costs, capital and administrative costs.
The following is a summary of Atalaya's cash position and cash flows as at 31
March 2022 and 31 December 2021.
Liquidity information
(Euro 000's) 31 March 2022 31 December 2021
Unrestricted cash and cash equivalents at Group level 69,985 48,375
Unrestricted cash and cash equivalents at Operation level 43,053 43,722
Restricted cash and cash equivalents at Operation level 15,420 15,420
Consolidated cash and cash equivalents 128,458 107,517
Net cash position ((1)) 86,836 60,073
Working capital surplus 120,124 102,430
((1) ) Includes borrowings
Unrestricted cash and cash equivalents (which include cash at both Group level
and Operation level) as at 31 March 2022 increased to €113.0 million from
€92.1 million at 31 December 2021. The increase in cash balances is the
result of net cash flow generated in the period. Restricted cash of €15.4
million represents the amount in escrow out of which the Company has paid
interest 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. Following the payment made in May 2022 the balance (less an
amount representing £280,000 being the remaining liability to Astor on costs)
will revert to the Company and it will be classified as unrestricted cash. See
more details in Deferred Consideration note 20.
6. Liquidity and Capital Resources (cont.)
As of 31 March 2022, Atalaya reported a working capital surplus of €120.1
million, compared with a working capital surplus of €102.4 million at 31
December 2021. The main liability of the working capital is trade payables
related to Proyecto Riotinto contractors and, to a lesser extent, short-term
loans following the drawdown of credit facilities during Q1 2022. The increase
in working capital resulted from higher cash balances as well as higher
inventory levels.
Overview of the Group's cash flows
Three months ended Three months ended
31 Mar 2022 31 Mar 2021
(Euro 000's)
Cash flows from operating activities 28,298 36,803
Cash flows used in investing activities (7,552) (63,930)
Cash flows from financing activities (2,378) 52,948
Net increase in cash and cash equivalents 18,368 22,890
Net foreign exchange differences 2,573 2,931
Three months cash flows review
Cash and cash equivalents increased by €20.9 million during the three months
ended 31 March 2022. This was due to the net results of cash generated from
operating activities amounting to €28.3 million, the cash used in investing
activities amounting to €7.6 million, the cash used from financing
activities totalling €2.4 million and net foreign exchange differences of
€2.6 million.
Cash generated from operating activities before working capital changes was
€26.9 million. Trade receivables in the period decreased by €5.2 million,
inventory levels increased by €13.0 million and trade payables increased
by €9.7 million.
Investing activities during the quarter consumed €7.6 million, relating
mainly to the tailings dams project, acquisition of lands around Riotinto and
continuous enhancements in the processing systems of the plant.
Financing activities during the quarter used €2.4 million driven by the
payments of existing unsecured credit facilities and cash generated from
issuance of shares.
Foreign exchange
Foreign exchange rate movements can have a significant effect on Atalaya's
operations, financial position and results. Atalaya's sales are denominated in
U.S. dollars ("USD"), while Atalaya's operating expenses, income taxes and
other expenses are mainly denominated in Euros ("EUR"), and to a much lesser
extent in British Pounds ("GBP").
Accordingly, fluctuations in the exchange rates can potentially impact the
results of operations and carrying value of assets and liabilities on the
balance sheet.
During the three months ended 31 March 2022, Atalaya recognised a foreign
exchange profit of €2.6 million. Foreign exchange losses mainly related to
change in the period end EUR and USD conversion rates, as all sales are cashed
and generally held in USD.
The following table summarises the movement in key currencies versus the EUR:
Three months ended Three months ended
31 Mar 2022 31 Mar 2021
Average rates for the period
GBP - EUR 0.8459 0.8739
USD - EUR 1.1217 1.2048
Spot rates as at end of the period
GBP - EUR 0.8364 0.8521
USD - EUR 1.1101 1.1725
7. Deferred Consideration
In September 2008, the Group moved to 100% ownership of Atalaya Riotinto
Mineral S.L. ("ARM") (and thus full ownership of Proyecto Riotinto) by
acquiring the remaining 49% of the issued capital of ARM. At the time of the
acquisition, the Group signed a Master Agreement (the "Master Agreement") with
Astor Management AG ("Astor") which included a deferred consideration of
€43.9 million (the "Deferred Consideration") payable as consideration in
respect of the acquisition among other items. The Company also entered into a
credit assignment agreement at the same time with a related company of Astor,
Shorthorn AG, pursuant to which the benefit of outstanding loans was assigned
to the Company in consideration for the payment of €9.1 million to Shorthorn
(the "Loan Assignment").
The Master Agreement was the subject of litigation in the High Court and the
Court of Appeal that concluded in November 2018. As a consequence, ARM was
obliged to any excess cash (after payment of operating expenses, sustaining
capital expenditure, any senior debt service requirements and up to US$10
million per annum (for non-Proyecto Riotinto related expenses)) to pay the
consideration due to Astor (including the Deferred Consideration and the
amount of €9.1 million payable under the Loan Assignment). "Excess cash" was
not defined in the Master Agreement leaving ambiguity as to how it was to be
calculated.
On 2 March 2020, the Company filed an application in the High Court to seek
clarity on the definition of "Excess Cash". Following the filing of the
statements of case for the trial, Astor applied to Court seeking an early
determination (without the need for a full trial) of the dispute in relation
to the "Excess Cash" (the "Summary Judgment application"). The Summary
Judgment application was heard on 14-15 June 2021. The Court dismissed Astor's
application meaning the proceedings would continue. The trial was heard from
21 February 2022 (the "Trial").
As at 31 December 2020, no consideration was paid to Astor. However, during
December 2020 the Board had discussions and considered an early payment of the
Deferred Consideration and the Loan Assignment provided certain conditions
could be met. Conditions included among others the execution of credit
facilities agreements to fund the payment.
In March 2021, the Company fulfilled all conditions required by the Board and
made the early payment of €53 million to Astor. The payment was fully funded
by unsecured credit facilities.
The payment of the Deferred Consideration did not end the ongoing litigation
as the issue as to whether any residual interest may or may not be payable
remained unresolved. On 15 July 2021, the Company transferred €15.4 million
to the Company's solicitors representing the full amount of interest claimed
by Astor (as at that date) to 30 June 2022. The Company's solicitors provided
an undertaking to Astor's solicitors to hold the full amount until settlement
of the claim to interest or judgment following the Trial. The Company
understood the monies held on client account by the Company's solicitors
safeguarded the maximum outstanding liability to Astor in relation to the
Master Agreement. On that basis, and because the Consideration has been paid
in full in accordance with the Master Agreement, the Company treated itself as
free of the obligations set out at clauses 6(g)(iv)(A) and 6(g)(iv)(B) in the
Master Agreement.
On 21 March 2022, further to the Trial which took place between 21 February
and 1 March 2022, Judgment was handed down. The Judgment deals with matters of
principle. It was left to the parties to calculate the amount of interest that
is payable on the basis of the Judge's conclusions. On 7 and 8 April 2022, the
Company made an initial payment of €9.6 million from the solicitors' client
account it had established in July 2021.
A consequential hearing was held on 6 May 2022 dealing with (i) the interest
calculation; and (ii) Atalaya's application for permission to appeal. As to
(i), again the Court decided certain matters of principle at the hearing and
gave directions as to the remaining issue to be resolved between the parties.
As to (ii), the Court denied Atalaya's application. Atalaya has a right to
apply for permission to appeal from the Court of Appeal.
The Company agreed a final payment amount of €1.1 million with Astor which
was paid on 16 May 2022 from its solicitors' client account. Subject to the
position on costs, the Company has now discharged its liability to Astor in
respect of 'Excess Cash' and associated interest under the Master Agreement.
8. Corporate Social Responsibility
Atalaya and its wholly owned Fundación Atalaya Riotinto have continued its
efforts to develop initiatives to comply with its social responsibility during
the first quarter of the year.
The Foundation has finalised the classroom sessions of its second edition of
its training program for unemployed people from the local communities. The
course, also supported by Riotinto Mine main contractors is starting now its
practical programme, which includes four weeks of hands-on practice with
machinery and different abilities needed in industrial work environments.
Thanks to the collaboration of some of the company´s main contractors, it
will include some experience with blasting and hauling operations, which will
grant specific official qualifications to the participants. The precedent
program concluded satisfactorily with around half the participants now working
in different companies.
During the quarter, the Foundation has started the conversations with the
neighbouring municipalities to agree the principles of the specific projects
for the year, based on the new collaboration agreement that was signed with
all the surrounding towns. The agreement is aimed at providing with funds to
undertake collaboration initiatives addressing infrastructure, social and
environmental projects. In this regard, the Foundation has established
agreements with Riotinto Municipality, to build a child´s playground, to
acquire a new ambulance and construction machinery to be used in municipal
works. The Foundation has also agreed to fund various initiatives including
the sponsoring of Riotinto Balompie, the oldest football club in Spain, also
the local Golf Club, and an official running team. The Foundation is also
sponsoring a local carnival association and a running contest that will bring
many visitors to the area. In the cultural area, the Foundation has sponsored
the publication of a book which is a study on prehistoric copper mining, and
another one by a local journalist about historical protests in the mining
area.
9. Health and Safety
The safety index in Q1 2022 has improved significantly compared to Q4 2021. At
31 March 2022 the frequency rate index was 4.22 and 0.02 for the severity
index, with two accidents with minor sick leave in this quarter. This change
in trend is marked by a period of 93 consecutive days without lost time
accidents and although these data are improving, we must continue to work on
prevention to reach "zero harm".
In the first quarter of 2022, the Field Leadership activity was fully
implemented and with compliance objectives already integrated into the
company's Management System.
Regarding the SAR Cov-2 global health crisis, the sixth wave was controlled in
January 2022 with close monitoring of close contacts through a strict protocol
of antigen and PCR tests, which prevented massive contagion and possible
effects on production. At the end of the quarter, thanks to the high
percentage of vaccination, it has been possible to relax the preventive
measures.
Finally, random checks at the entrances to prevent work under the influence of
psychoactive substances are operating normally.
10. Environmental Management
During the first quarter of the year, no environmental incidents have been
recorded at the Proyecto Riotinto.
A total rainfall of 137.6 l/m(2) has been recorded, which is around 37% less
than the rainfall recorded in the same period of the previous year. The total
rainfall recorded for the water year (October 2021 to date) is 333.7 l/m(2)
(including April), which is 30% less than the rainfall recorded in the same
period of the previous water year.
The additional measures contemplated in the action plan against dust continued
to be implemented, intensifying periodic irrigation, implementing new
coordination measures and carrying out exhaustive monitoring of the emissions
generated in the operation.
Environmental inspections have continued to control the generation of waste,
storage of hazardous chemical products, as well as other aspects related to
order and cleanliness and good environmental practices. These inspections were
carried out on both Atalaya personnel and subcontracted companies. The results
of the inspections to contractors are transferred to the environmental ranking
in order to assess the effort to improve the environmental performance of the
companies operating in the PRT facilities. In February, a gift is given to the
contractor company that came first in 2021.
Training in environmental management continued for the organisation's
personnel, providing training for workers belonging to the maintenance and
plant departments. This training includes specific content by levels and
operational areas that make up the Proyecto Riotinto.
11. 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
2021.
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 COVID-19, inflationary pressure on
goods and services required for the business and geopolitical developments in
Ukraine.
12. Critical accounting policies, estimates, judgements, assumptions and
accounting changes
The preparation of Atalaya's Financial Statements in accordance with IFRS
requires management to make estimates, judgements and assumptions that affect
amounts reported in the Financial Statements and accompanying notes. There is
a full discussion and description of Atalaya's critical accounting policies in
the audited consolidated financial statements for the year ended 31 December
2021.
As at 31 March 2022, there are no significant changes in critical accounting
policies or estimates to those applied in 2022.
13. Other Information
Additional information about Atalaya Mining Plc. is available at www.sedar.com
(http://www.sedar.com) and at www.atalayamining.com
(http://www.atalayamining.com)
Unaudited Interim Condensed Consolidated Financial Statements on pages 12 to
37.
By Order of the Board of Directors,
"Roger Davey"
___________________________________
Roger Davey
Chairman
Nicosia, 18 May 2022
Interim Consolidated Income Statements
(All amounts in Euro thousands unless otherwise stated)
For the three months period ended 31 March 2022 and 2021 - (Unaudited)
Three months ended Three
31 March 2022 months ended
31 March 2021
(Euro 000's) Notes
Revenue 4 86,251 97,380
Operating costs and mine site administrative expenses (54,611) (47,872)
Mine site depreciation and amortization (7,520) (8,944)
Gross profit 24,120 40,564
Administration and other expenses (3,583) (1,573)
Share-based benefits 15 (178) (154)
Care and maintenance expenditure (715) (218)
Exploration expenses (452) (120)
Operating profit 19,192 38,499
Net foreign exchange gain 3 2,573 2,930
Net finance costs 5 (315) (82)
Profit before tax 21,450 41,347
Tax 6 (3,193) (7,645)
Profit for the period 18,257 33,702
Profit for the period attributable to:
- Owners of the parent 7 18,824 33,858
- Non-controlling interests (567) (156)
18,257 33,702
Earnings per share from operations attributable to equity holders of the
parent during the period:
Basic earnings per share (EUR cents per share) 7 13.5 24.5
Fully diluted earnings per share (EUR cents per share) 7 13.2 24.0
Profit for the period
Other comprehensive income: 18,257 33,702
Change in fair value of financial assets through other comprehensive income
'OCI'
- 9
Total comprehensive profit for the period 18,257 33,711
Total comprehensive profit for the period attributable to:
- Owners of the parent 7 18,824 33,867
- Non-controlling interests (567) (156)
18,257 33,711
The notes on pages 16 to 37 are an integral part of these unaudited condensed
interim consolidated financial statements.
Interim Consolidated Balance Sheet
(All amounts in Euro thousands unless otherwise stated)
As at 31 March 2022 and 31 December 2021 - (Unaudited)
(Euro 000's) 31 March 2022 31 December 2021
Note
Assets
Non-current assets
Property, plant and equipment 9 333,912 333,096
Intangible assets 10 56,639 57,368
Trade and other receivables 12 9,638 5,330
Non-current financial assets 12 1,101 1,101
Deferred tax asset 5,503 5,564
406,793 402,459
Current assets
Inventories 11 37,809 24,781
Trade and other receivables 12 41,051 50,128
Tax refundable 379 483
Other financial assets 38 39
Cash and cash equivalents 13 128,458 107,517
207,735 182,948
Total assets 614,528 585,407
Equity and liabilities
Equity attributable to owners of the parent
Share capital 14 13,594 13,447
Share premium 14 319,374 315,916
Other reserves 15 68,710 52,690
Accumulated profits 61,752 58,754
463,430 440,807
Non-controlling interests (5,476) (4,909)
Total equity 457,954 435,898
Liabilities
Non-current liabilities
Trade and other payables 16 3,450 3,450
Provisions 17 26,705 26,578
Leases 19 4,758 4,913
Borrowings 18 34,050 34,050
68,963 68,991
Current liabilities
Trade and other payables 16 75,849 66,191
Leases 19 591 597
Borrowings 18 7,572 13,394
Current tax liabilities 3,599 336
87,611 80,518
Total liabilities 156,574 149,509
Total equity and liabilities 614,528 585,407
The notes on pages 16 to 37 are an integral part of these unaudited condensed
interim consolidated financial statements
Interim Consolidated Statements of Changes in Equity
(All amounts in Euro thousands unless otherwise stated)
For the three months period ended 31 March 2022 and 2021 - (Unaudited)
Other reserves Accum. Non-controlling interest
Share capital Share premium((1)) losses Total Total equity
(Euro 000's) Note
At 1 January 2021 13,439 315,714 40,049 (15,512) 353,690 (3,491) 350,199
Profit for the period - - - 33,858 33,858 (155) 33,703
Change in fair value of financial assets through OCI
- - 9 - 9 - 9
Total comprehensive income - - 9 33,858 33,867 (155) 33,712
Transactions with owners
Issuance of share capital 4 91 - - 95 - 95
Recognition of share-based payments 15 - - 153 - 153 - 153
Recognition of depletion factor 15 - - 6,100 (6,100) - - -
Recognition of non-distributable reserve 15 - - 1,179 (1,179) - - -
Recognition of distributable reserve - - 4,511 (4,511) - - -
At 31 March 2021 13,443 315,805 52,001 6,556 387,805 (3,646) 384,159
Profit for the period - - - 99,786 99,786 (1,263) 98,476
Change in fair value of financial assets through OCI
- - (56) - (56) - (56)
Total comprehensive income - - (56) 99,786 99,730 (1,263) 98,467
Transactions with owners
Issuance of share capital 14 4 111 - - 115 - 115
Recognition of share-based payments 15 - - 746 - 746 - 746
Recognition of depletion factor 15 - - - - - - -
Recognition of non-distributable reserve 15 - - 1,193 (1,193) - - -
Recognition of distributable reserve 15 - - (1,194) 1,194 - - -
Other changes in equity - - - (299) (299) - (299)
Interim dividends paid 8 - - - (47,290) (47,290) - (47,290)
At 31 December 2021/1 January 2022 13,447 315,916 52,690 58,754 440,807 (4,909) 435,898
Profit for the period - - - 18,824 18,824 (567) 18,257
Change in fair value of financial assets through OCI
- - - - - - -
Total comprehensive income - - - 18,824 18,824 (567) 18,257
Transactions with owners
Issuance of share capital 14 147 3,458 - - 3,605 - 3,605
Recognition of share-based payments 15 - - 178 - 178 - 178
Recognition of depletion factor 15 - - 12,800 (12,800) - - -
Recognition of non-distributable reserve 15 - - 316 (316) - - -
Recognition of distributable reserve 15 - - 2,726 (2,726) - - -
Other changes in equity - - - 16 16 - 16
At 31 March 2021 13,594 319,374 68,710 61,752 463,430 (5,476) 457,954
((1)) The share premium reserve is not available for distribution
The notes on pages 16 to 37 are an integral part of these unaudited condensed
interim consolidated financial statements.
Interim Consolidated Statements of Cash Flows
(All amounts in Euro thousands unless otherwise stated)
For the three months period ended 31 March 2022 and 2021 - (Unaudited)
Three months ended Three
31 March months ended
2022 31 March
(Euro 000's) Notes 2021
Cash flows from operating activities
Profit before tax 21,450 41,347
Adjustments for:
Depreciation of property, plant and equipment 9 6,489 7,611
Amortisation of intangibles 10 1,031 1,333
Recognition of share-based payments 15 178 154
Interest income 5 (1) -
Interest expense 5 238 76
Legal provisions 17 - 2,529
Unwinding of discounting 17 73 -
Net foreign exchange differences 3 (2,573) 2,931
Unrealised foreign exchange loss on financing activities 44 83
Cash inflows from operating activities before working capital changes 26,929 50,202
Changes in working capital:
Inventories 11 (13,028) 3,280
Trade and other receivables 12 5,177 (8,954)
Trade and other payables 16 9,660 (9,517)
Cash flows from operations 28,738 35,011
Interest expense on lease liabilities 5 (5) (7)
Interest paid 5 (238) (76)
Tax paid (197) (1,056)
Net cash from operating activities 28,298 36,803
Cash flows from investing activities
Purchase of property, plant and equipment 9 (7,251) (10,847)
Purchase of intangible assets 10 (302) (83)
Payment of deferred consideration 20 - (53,000)
Interest received 5 1 -
Net cash used in investing activities (7,552) (63,930)
Cash flows from financing activities
Lease payments 19 (160) (161)
Proceeds from borrowings 18 (5,822) 53,015
Proceeds from issuance of shares 15 3,604 94
Net cash flows from financing activities (2,378) (52,948)
Net increase in cash and cash equivalents 18,368 22,890
Net foreign exchange difference 3 2,573 2,931
Cash and cash equivalents:
At beginning of the period 107,517 37,767
At end of the period 128,458 63,588
The notes on pages 16 to 37 are an integral part of these unaudited condensed
interim consolidated financial statements.
Notes to the Unaudited Condensed Interim Consolidated Financial Statements
(All amounts in Euro thousands unless otherwise stated)
For the three months period ended 31 March 2022 and 2021 - (Unaudited)
1. Incorporation and Summary of Business
Country of incorporation
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 and on the TSX on 20 December 2010 under the symbol AYM. The
Company continued to be listed on AIM and the TSX as at 31 March 2022.
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 currently controls 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 Este.
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).
Proyecto Masa Valverde is currently in the permitting process.
Proyecto Riotinto Este
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.
Proyecto Ossa Morena
In December 2021, Atalaya announced the acquisition of a 51% interest in Rio
Narcea Nickel, S.L., which owns 17 investigation permits. The acquisition also
provided a 100% interest in three investigation permits that are also located
along the Ossa- Morena Metallogenic Belt.
2. Basis of Preparation and Accounting Policies
2.1 Basis of preparation
(a) Overview
These condensed interim financial statements are unaudited.
The unaudited interim condensed consolidated financial statements for the
period ended 31 March 2022 have been prepared in accordance with International
Accounting Standards 34: Interim Financial Reporting. IFRS comprise the
standard issued by the International Accounting Standard Board ("IASB"), and
IFRS Interpretations Committee ("IFRICs") as issued by the IASB. Additionally,
the unaudited interim condensed consolidated financial statements have also
been prepared in accordance with the IFRS as adopted by the European Union
(EU), using the historical cost convention.
These unaudited interim condensed consolidated financial statements include
the financial statements of the Company and its subsidiary undertakings. They
have been prepared using accounting bases and policies consistent with those
used in the preparation of the consolidated financial statements of the
Company and the Group for the year ended 31 December 2021. These unaudited
interim condensed consolidated financial statements do not include all the
disclosures required for annual financial statements, and accordingly, should
be read in conjunction with the consolidated financial statements and other
information set out in the Group's annual report for the year ended 31
December 2021. The accounting policies are unchanged from those disclosed in
the annual consolidated financial statements for the year ended 31 December
2021.
(b) Going concern
These unaudited condensed interim consolidated financial statements have been
prepared based on accounting principles applicable to a going concern which
assumes that the Group will realise its assets and discharge its liabilities
in the normal course of business. Management has carried out an assessment of
the going concern assumption and has concluded that the Group will generate
sufficient cash and cash equivalents to continue operating for the next twelve
months.
Management continues to monitor the impact of COVID 19 as well as geopolitical
developments. Currently no significant impact is expected in the operations of
the Group.
2.2 New standards, interpretations and amendments adopted by the Group
The accounting policies adopted in the preparation of the unaudited condensed
interim consolidated financial statements are consistent with those followed
in the preparation of the Group's annual consolidated financial statements for
the year ended 31 December 2021, except for the adoption of new standards
effective as of 1 January 2022. The Group has not early adopted any standard,
interpretation or amendment that has been issued but is not yet effective.
Several amendments and interpretations apply for the first time in 2022, but
do not have a material impact on the unaudited condensed interim consolidated
financial statements of the Group.
Reference to the Conceptual Framework - Amendments to IFRS 3
The amendments replace a reference to a previous version of the IASB's
Conceptual Framework with a reference to the current version issued in March
2018 without significantly changing its requirements.
The amendments add an exception to the recognition principle of IFRS 3
Business Combinations to avoid the issue of potential 'day 2' gains or losses
arising for liabilities and contingent liabilities that would be within the
scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets or
IFRIC 21 Levies, if incurred separately. The exception requires entities to
apply the criteria in IAS 37 or IFRIC 21, respectively, instead of the
Conceptual Framework, to determine whether a present obligation exists at the
acquisition date.
The amendments also add a new paragraph to IFRS 3 to clarify that contingent
assets do not qualify for recognition at the acquisition date. These
amendments had no impact on the interim condensed consolidated financial
statements of the Group as there were no contingent assets, liabilities and
contingent liabilities within the scope of these amendments arisen during the
period.
2. Basis of Preparation and Accounting Policies (cont.)
2.2 New standards, interpretations and amendments adopted by the Group (cont.)
Property, Plant and Equipment: Proceeds before Intended Use - Amendments to
IAS 16
The amendment prohibits entities from deducting from the cost of an item of
property, plant and equipment, any proceeds of the sale of items produced
while bringing that asset to the location and condition necessary for it to be
capable of operating in the manner intended by management. Instead, an entity
recognises the proceeds from selling such items, and the costs of producing
those items, in profit or loss.
These amendments had no impact on the interim condensed consolidated financial
statements of the Group as there were no sales of such items produced by
property, plant and equipment made available for use on or after the beginning
of the earliest period presented.
IFRS 1 First-time Adoption of International Financial Reporting Standards -
Subsidiary as a first-time adopter
The amendment permits a subsidiary that elects to apply paragraph D16(a) of
IFRS 1 to measure cumulative translation differences using the amounts
reported in the parent's consolidated financial statements, based on the
parent's date of transition to IFRS, if no adjustments were made for
consolidation procedures and for the effects of the business combination in
which the parent acquired the subsidiary. This amendment is also applied to an
associate or joint venture that elects to apply paragraph D16(a) of IFRS 1.
These amendments had no impact on the interim condensed consolidated financial
statements of the Group as it is not a first-time adopter.
IFRS 9 Financial Instruments - Fees in the '10 per cent' test for
derecognition of financial liabilities
The amendment clarifies the fees that an entity includes when assessing
whether the terms of a new or modified financial liability are substantially
different from the terms of the original financial liability. These fees
include only those paid or received between the borrower and the lender,
including fees paid or received by either the borrower or lender on the
other's behalf. There is no similar amendment proposed for IAS 39 Financial
Instruments: Recognition and Measurement. These amendments had no impact on
the interim condensed consolidated financial statements of the Group as there
were no modifications of the Group's financial instruments during the period.
2.3 Fair value estimation
The fair values of the Group's financial assets and liabilities approximate
their carrying amounts at the reporting date.
The fair value of financial instruments traded in active markets, such as
publicly traded trading and other financial assets is based on quoted market
prices at the reporting date. The quoted market price used for financial
assets held by the Group is the current bid price. The appropriate quoted
market price for financial liabilities is the current ask price.
The fair value of financial instruments that are not traded in an active
market is determined by using valuation techniques. The group uses a variety
of methods, such as estimated discounted cash flows, and makes assumptions
that are based on market conditions existing at the reporting date.
2. Basis of Preparation and Accounting Policies (cont.)
2.3 Fair value estimation (cont.)
Fair value measurements recognised in the consolidated statement of financial
position
The following table provides an analysis of financial instruments that are
measured subsequent to initial recognition at fair value, Grouped into Levels
1 to 3 based on the degree to which the fair value is observable.
· Level 1 fair value measurements are those derived from quoted
prices (unadjusted) in active markets for identical assets or liabilities.
· Level 2 fair value measurements are those derived from inputs
other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly (i.e. as prices) or indirectly (i.e.
derived from prices).
· Level 3 fair value measurements are those derived from valuation
techniques that include inputs for the asset or liability that are not based
on observable market data (unobservable inputs).
Financial assets
(Euro 000's) Level 1 Level 2 Level 3 Total
31 March 2022
Other financial assets
Financial assets at FV through OCI 38 - 1,101 1,139
Trade and other receivables
Receivables (subject to provisional pricing) - 11,669 - 11,669
Total 38 11,669 1,101 12,808
31 December 2021
Other financial assets
Financial assets at FV through OCI 39 - 1,101 1,140
Trade and other receivables
Receivables (subject to provisional pricing) - 29,148 - 29,148
Total 39 29,148 1,101 30,288
2.4 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 unaudited
condensed interim consolidated financial statements. Estimates and assumptions
are continually evaluated and are based on management's experience and other
factors, including expectations of future events that are believed to be
reasonable under the circumstances. Uncertainty about these assumptions and
estimates could result in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in future periods.
Provisions are recognised when the Group has a present legal or constructive
obligation as a result of past events, it is probable that an outflow of
resources will be required to settle the obligation, and a reliable estimate
of the amount can be made. If the effect of the time value of money is
material, provisions are discounted using a current pre-tax rate that
reflects, where appropriate, the risks specific to the liability. Where
discounting is used, the increase in the provision due to the passage of time
is recognised as a finance cost.
A full analysis of critical accounting estimates and judgements is set out in
Note 3.3 of the 2021 audited consolidated financial statements.
3. Business and Geographical Segments
Business segments
The Group has only one distinct business segment, being that of mining
operations, which include mineral exploration and development.
Copper concentrates produced by the Group are sold to three off-takers as per
the relevant offtake agreement (Note 22.3). in addition, the Group has spot
agreements for the concentrates not committed to off-takers.
Geographical segments
The Group's mining activities are located in Spain. The commercialisation of
the copper concentrates produced in Spain is carried out through Cyprus. Sales
transactions to related parties are on an arm's length basis in a similar
manner to transactions with third parties. Accounting policies used by the
Group in different locations are the same as those contained in Note 2.
Cyprus Spain Other Total
(Euro 000's)
Three months ended 31 March 2022
Revenue 11,830 74,421 - 86,251
Earnings/(loss) Before Interest, Tax, Depreciation and Amortisation (EBITDA) 8,967 17,752 (7) 26,712
Depreciation/amortisation charge - (7,520) - (7,520)
Net foreign exchange gain 1,170 1,403 - 2,573
Finance income - 1 - 1
Finance cost - (316) - (316)
Profit/(loss) before tax 10,137 11,320 (7) 21,450
Tax (1,024) (2,169) - (3,193)
Profit for the period 9,113 9,151 (7) 18,257
Total assets 81,725 531,625 1,178 614,528
Total liabilities (2,617) (153,949) (8) (156,574)
Depreciation of property, plant and equipment - 6,489 - 6,489
Amortisation of intangible assets - 1,031 - 1,031
Total additions of non-current assets - 18,876 - 18,876
Three months ended 31 March 2021
Revenue 14,954 82,426 97,380
Earnings/(loss) Before Interest, Tax, Depreciation and Amortisation (EBITDA) 12,590 34,869 (16) 47,443
Depreciation/amortisation charge - (8,944) - (8,944)
Net foreign exchange gain 555 2,374 2 2,931
Finance cost - (83) - (83)
Profit/(loss) before tax 13,145 28,216 (14) 41,347
Tax - (7,645) - (7,645)
Profit for the period 33,702
Total assets 79,788 457,544 1,158 538,490
Total liabilities (1,517) (152,778) (36) (154,331)
Depreciation of property, plant and equipment - 7,611 - 7,611
Amortisation of intangible assets - 1,333 - 1,333
Total additions of non-current assets - 17,588 - 17,588
4. Revenues
Three months ended 31 March 2022 Three months ended
31 March 2021
(Euro 000's)
Revenue from contracts with customers ((1)) 81,769 92,700
Fair value gains relating to provisional pricing within sales ((2)) 4,482 4,680
Total revenue 86,251 97,380
All revenue from copper concentrate is recognised at a point in time when the
control of the product is transferred. Revenue from freight services is
recognised over time as the services are provided.
((1) ) Included within Q1 2022 revenue, there is a transaction
price of €1.4 million (€0.3 million in Q1 2021) 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.
5. Net Finance Costs
Three months ended 31 March 2022 Three
months ended
(Euro 000's) 31 March 2021
Interest expense:
Other interest (238) (76)
Unwinding of discount on mine rehab prov (73) -
Interest expense on lease liabilities (5) (7)
Interest income 1 -
(315) (83)
6. Tax
The Group calculates the period income tax expense using the tax rate that
would be applicable to the expected total annual earnings. The major
components of income tax expense in the unaudited interim condensed
consolidated statement of profit or loss are:
Three months ended 31 March 2022 Three months ended 31 March 2021
(Euro 000's)
Income taxes
Current income tax expense 3,193 7,645
Income tax expense recognised in statement of profit and loss 3,193 7,645
7. Earnings per share
The calculation of the basic and fully diluted profit per share attributable
to the ordinary equity holders of the Company is based on the following data:
Three months ended 31 March 2022 Three months ended
31 March 2021
(Euro 000's)
Parent company (734) (368)
Subsidiaries 19,558 34,226
Profit attributable to equity holders of the parent 18,824 33,858
Weighted number of ordinary shares for the purposes of basic earnings per
share (000's)
139,407 138,163
Basic profit per share (EUR cents/share) 13.5 24.5
Weighted number of ordinary shares for the purposes of fully diluted earnings
per share (000's)
142,163 140,928
Fully diluted profit per share (EUR cents/share) 13.2 24.0
As at 31 March 2022, there are nil warrants (Note 14) and 2,341,000 options
(Note 15) (31 March 2021: nil warrants and 2,746,250 options). Warrants and
options are included when calculating the weighted average number of shares
for the period.
8. Dividends paid
Cash dividends declared and paid during the period:
(Euro 000's) 31 Mar 2022 31 Mar 2021
Dividend - -
Total cash dividends paid in the period to ordinary shareholders - -
Fully paid ordinary shares carry one vote per share and carry the right to
dividends.
Dividend Policy
On 27 October 2021, Atalaya initiated a sustainable dividend policy that will
allow for continued investments in its portfolio of low capital intensity
growth projects, such as the San Dionisio deposit, Proyecto Masa Valverde,
Proyecto Ossa Morena and Proyecto Touro. The approved a Dividend Policy will
set out an annual pay-out of between 30% and 50% of free cash flow generated
during the applicable financial year.
The declaration and payment of all future dividends under the new policy are
subject to approval by the Board of Directors.
An inaugural dividend of US$0.395 per share was declared on 27 October 2021,
and paid on 1 December 2021, totalling €47.3 million.
9. Property, Plant and Equipment
Land and buildings Plant and machinery Assets under construction((3)) Other assets((1)) Total
Right of use assets ((5)) Deferred mining costs((2))
(Euro 000's)
Cost
At 1 January 2021 64,034 6,569 268,051 15,828 41,868 801 397,151
Additions 43 - 1,621 4,990 4,236 - 10,890
Reclassifications - - 587 (587) - - -
At 31 March 2021 64,077 6,569 270,259 20,231 46,104 801 408,041
Additions 227 507 320 15,396 5,563 - 22,013
Increase in rehab. Provision
655 - - - - - 655
Reclassifications - - 12,767 (12,767) - - -
Advances 44 - - - - - 44
At 31 December 2021 65,003 7,076 283,346 22,860 51,667 801 430,753
Additions 2,383((4)) - 244 3,950 671 - 7,248
Reclassifications - - 2,376 (2,376) - - -
Increase in rehab. Provision
54 - - - - - 54
Advances 3
At 31 March 2022 67,443 7,076 286,326 24,074 52,338 801 438,058
Depreciation
At 1 January 2021 11,671 956 48,134 - 8,528 688 69,977
Charge for the period 1,176 148 5,552 - 728 7 7,611
At 31 March 2021 12,847 1,104 53,686 - 9,256 695 77,588
Charge for the period 3,719 442 14,305 - 2,124 19 20,069
At 31 December 2021 16,026 1,546 67,991 - 11,380 714 97,657
Charge for the period 1,001 140 4,466 - 875 7 6,489
At 31 March 2022 17,027 1,686 72,457 - 12,255 721 104,146
Net book value
At 31 March 2022 50,416 5,390 213,869 24,074 40,083 80 333,912
At 31 December 2021 48,977 5,530 215,355 22,860 40,287 87 333,096
( )
((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 March 2022 were €24.1 million (2021:
€20.2 million) which include sustaining capital expenditures and tailings
dams project.
((4)) Increase in lands related with the acquisition of lands surround
Riotinto District.
((5)) See leases in Note 19.
The above fixed assets are mostly located in Spain.
10. Intangible Assets
Permits
(Euro 000's) Licences, R&D and software Total
Cost
At 1 January 2021 78,210 8,595 86,805
Additions - 83 83
At 31 March 2021 78,210 8,678 86,888
Additions 2,148((1)) (83) 2,065
At 31 December 2021 80,358 8,595 88,953
Additions 302 - 302
At 31 March 2022 80,660 8,595 89,255
Amortisation
On 1 January 2021 18,683 8,306 26,989
Charge for the period 1,316 17 1,333
At 31 March 2021 19,999 8,323 28,322
Charge for the period 3,215 48 3,263
At 31 December 2021 23,214 8,371 31,585
Charge for the period 1,015 16 1,031
At 31 March 2022 24,229 8,387 32,616
Net book value
At 31 March 2022 56,431 208 56,639
At 31 December 2021 57,144 224 57,368
(1) Additions of Q1 2021 resulted from the acquisition of 51% of Rio
Narcea Nickel SL
The ultimate recovery of balances carried forward in relation to areas of
interest or all such assets including intangibles is dependent on successful
development, and commercial exploitation, or alternatively the sale of the
respective areas.
The Group conducts impairment testing on an annual basis unless indicators of
impairment are not present at the reporting date. In considering the carrying
value of the assets at Proyecto Riotinto, including the intangible assets and
any impairment thereof, the Group assessed that no indicators were present as
at 31 March 2022 and thus no impairment has been recognised.
11. Inventories
(Euro 000's) 31 Mar 2022 31 Dec 2021
Finished products 14,618 5,185
Materials and supplies 20,785 18,216
Work in progress 2,406 1,380
37,809 24,781
As of 31 March 2022, copper concentrate produced and not sold amounted to
9,904 tonnes (31 Dec 2021: 5,254 tonnes). Inventory for copper concentrate is
valued at cost and was €14.6 million as at 31 March 2022 (31 Dec 2021:
€5.2 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.
12. Trade and Other Receivables
(Euro 000's) 31 Mar 2022 31 Dec 2021
Non-current
Deposits 304 303
Loans 6,639 2,332
Other non-current receivables - long term deposits 2,695 2,695
9,638 5,330
Current
Trade receivables at fair value - subject to provisional pricing 11,669 8,865
Trade receivables from shareholders at fair value - subject to provisional
pricing (Note 22.3)
- 20,283
Other receivables from related parties at amortised cost (Note 22.3) 56 56
Deposits 21 21
VAT receivable 23,077 17,300
Tax advances 9 -
Prepayments 4,280 3,303
Other current assets 1,939 300
41,051 50,128
Allowance for expected credit losses - -
Total current trade and other receivables 50,689 55,458
Trade receivables are shown net of any interest applied to prepayments.
Payment terms are aligned with offtake agreements and market standards and
generally are 7 days on 90% of the invoice and the remaining 10% at the
settlement date which can vary between 1 to 5 months. The fair values of trade
and other receivables approximate to their book values.
Non-current deposits included €250k (€250k at 31 December 2021) as a
collateral for bank guarantees, which was recorded as restricted cash (or
deposit). Restricted cash related to the collateral was reclassified to
noncurrent trade and other receivables since the deposit is considered to be
long term.
Loans are related to an agreement entered by the Group and Lain Technologies
Ltd in relation to the construction of the pilot plan to develop the E-LIX
System. The Loan is secured with the pilot plant, has a grace period of up to
four years and repayment terms depending on future investments on the system.
Amounts withdrawn bears interest at 2%
13. Cash and cash equivalents
(Euro 000's) 31 Mar 2022 31 Dec 2021
Unrestricted cash and cash equivalents at Group level 69,985 48,375
Unrestricted cash and cash equivalents at Operation level 43,053 43,722
Restricted cash and cash equivalents at Operation level 15,420 15,420
Consolidated cash and cash equivalents 128,458 107,517
13. Cash and cash equivalents (cont.)
As at 31 March 2022, the Group's operating subsidiary held Restricted cash of
€15.4 million for paying interest to Astor under the Master Agreement.
Following the hearing of 6 May 2022, the Company has transferred a total
amount of €10.7 million. The majority of the balance (less £280,000) will
revert to the Company and will be classified as unrestricted cash. See more
details in Deferred Consideration note 20.
Cash and cash equivalents denominated in the following currencies:
(Euro 000's) 31 Mar 2022 31 Dec 2021
Euro - functional and presentation currency 38,155 30,145
Great Britain Pound 2,903 36
United States Dollar 87,400 77,336
128,458 107,517
14. Share Capital and Share Premium
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
000's Euro 000's Euro 000's Euro 000's
Issue Date Price (£) Details
31 December 2020/1 January 2021 138,141 13,439 315,714 329,153
12 Feb 2021 2.015 Exercised share options ((a)) 41 4 91 95
Balance at 31 March 2021 138,182 13,443 315,805 329,248
18 May 2021 2.015 Exercised share options((b)) 20 1 45 46
18 May 2021 1.475 Exercised share options((b)) 10 1 15 16
15 Dec 2021 1.475 Exercised share options((c)) 9 2 43 45
15 Dec 2021 2.015 Exercised share options((c)) 15 - 8 8
31 December 2021/1 January 2022 138,236 13,447 315,916 329,363
22 Jan 2022 1.440 Exercised share options((d)) 314 28 512 540
22 Jan 2022 2.015 Exercised share options((d)) 321 29 746 775
22 Jan 2022 2.045 Exercised share options((d)) 400 36 941 977
22 Jan 2022 1.475 Exercised share options((d)) 451 42 754 796
22 Jan 2022 3.090 Exercised share options((d)) 134 12 505 517
31 March 2022 139,857 13,594 319,374 332,968
14. Share Capital and Share Premium (cont.)
Authorised capital
The Company's authorised share capital is 200,000,000 ordinary shares of Stg
£0.075 each.
Issued capital
2022
(a) On 26 January 2022, the Company announced that is was notified that
PDMRs exercised a total of 1,300,000 options. Further details (including
details of sales of shares following the exercise of options) are given in
Note 25.
2021
(b) On 12 February 2021, the Company was notified that certain employees
exercised options over 40,750 ordinary shares of £0.075 at a price of
£2.015, thus creating a share premium of €91k.
(c) On 18 May 2021, the Company was notified that certain employees
exercised options over 30,000 ordinary shares of £0.075 at a price between
£1.475 and £2.015, thus creating a share premium of €61k.
(d) On 15 December 2021, the Company was notified that certain employees
exercised options over 24,500 ordinary shares of £0.075 at a price between
£1.475 and £2.015, thus creating a share premium of €50k.
Warrants
As at 31 March 2022 and 2021, there were no warrants.
15. Other Reserves
Share option Bonus share
Fair value reserve of financial assets at FVOCI ((2)) Total
(Euro 000's) Non-Distributable reserve((3))
Distributable reserve((4))
Depletion factor((1))
At 1 January 2021 8,187 208 25,033 (1,100) 5,628 2,093 40,049
Recognition of depletion factor - - 6,100 - - - 6,100
Recognition of non-distributable reserve - - - - 1,179 - 1,179
Recognition of distributable reserve - - - - - 4,510 4,510
Recognition of share based payments
154 - - - - - 154
Change in fair value of financial assets at fair value through OCI
- - - 9 - - 9
At 31 March 2021 8,341 208 31,133 (1,091) 6,807 6,603 52,001
Recognition of depletion factor
- - (6,155) - - - 6,155
Recognition of share based payments
745 - - - - - 745
Change in fair value of financial assets at fair value through OCI
- - - (56) - - (56)
Recognition of non-distributable reserve
- - - - 1,193 - 1,193
Recognition of distributable reserve - - - - - 4,962 4,962
At 31 December 2021 9,086 208 24,978 (1,147) 8,000 11,565 52,690
Recognition of share based payments
178 - - - - - 178
Recognition of depletion factor
- - 12,800 - - - 12,800
Recognition of non-distributable reserve
- - - - 316 - 316
Recognition of distributable reserve
- - - - - 2,726 2,726
Change in fair value of financial assets at fair value through OCI
- - - - - - -
At 31 March 2021 9,264 208 37,778 (1,147) 8,316 14,291 68,710
((1) ) Depletion factor reserve
At 31 March 2022, the Group has recognised €12.8 million (disposed €6.2
million at 31 March 2021) as a depletion factor reserve in order to fulfil
with the Spanish Corporate Tax Act.
((2) ) Fair value reserve of financial assets at FVOCI
The Group has elected to recognise changes in the fair value of certain
investments in equity securities in OCI, as explained in (1) above. These
changes are accumulated within the FVOCI reserve within equity. The Group
transfers amounts from this reserve to retained earnings when the relevant
equity securities are derecognised.
((3) ) Non-distributable reserve
To comply with Spanish Law, the Group needed to record a reserve when profit
generated equal to a 10% of profit/(loss) for the year until 20% of share
capital is reached.
((4) ) Distributable reserve
The Group reclassified 10% of the profit of 2021 to distributable reserves.
15. Other Reserves (cont.)
In general terms, share option agreements contain provisions adjusting the
exercise price in certain circumstances including the allotment of fully paid
ordinary shares by way of a capitalisation of the Company's reserves, a
subdivision or consolidation of the ordinary shares, a reduction of share
capital and offers or invitations (whether by way of rights issue or
otherwise) to the holders of ordinary shares.
Details of share options outstanding as at 31 March 2022:
Grant date Expiry date Exercise price £ Share options
29 May 2019 28-May-2024 2.015 666,500
30 June 2020 29 June 2030 1.475 538,500
24 June 2021 23 June 2031 3.090 1,016,000
26 January 2022 25 January 2032 4.160 120,000
Total 2,341,000
Weighted average Share options
exercise price £
At 1 January 2022 2.154 3,841,750
Granted options during the year 4.160 120,000
Options executed during the year 2.015 (1,620,750)
31 March 2022 2.467 2,341,000
16. Trade and Other Payables
(Euro 000's) 31 Mar 2022 31 Dec 2021
Non-current
Other noncurrent payables 3,435 3,435
Government grant 15 15
3,450 3,450
Current
Trade payables 59,745 49,712
Accruals 15,907 16,267
VAT payable 61 74
Other 136 138
75,849 66,191
Other non-current payables are related with the acquisition of Atalaya Masa
Valverde, SLU formerly Cambridge Minería España, SL and 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.
Accruals included an interest payable amounted to €11.7 million for the
Group representing the interest calculation proposed by Astor.
Trade payables are non-interest-bearing and are normally settled on 60-day
terms.
17. Provisions
Rehabilitation costs
(Euro 000's) Legal costs Total costs
1 January 2021 626 24,638 25,264
Additions 2,617 43 2,660
Reversal of provision (88) - (88)
At 31 March 2021 3,155 24,681 27,836
Additions - 612 278
Used of provision (286) - (286)
Revision of provision (2,590) (57) (2,647)
Finance cost - 1,063 1,063
At 31 December 2021 279 26,299 26,578
Additions - - -
Revision of provision - 54 54
Finance costs - 73 73
At 31 March 2022 279 26,426 26,705
(Euro 000's) 31 Mar 2022 31 Dec 2021
Non-current 26,705 27,836
Total 26,705 27,836
Rehabilitation provision
Rehabilitation provision represents the accrued cost required to provide
adequate restoration and rehabilitation upon the completion of production
activities. These amounts will be settled when rehabilitation is undertaken,
generally over the project's life.
The discount rate used in the calculation of the net present value of the
liability as at 31 March 2022 was 1.12% (2021: 1.36%), which is the average of
the 15-year Spain Government Bond rate from 2017 to 2021. An inflation rate of
1%-1.96% is applied on annual basis.
Legal provision
The Group has been named a defendant in several legal actions in Spain, the
outcome of which is not determinable as at 31 March 2022. Management has
individually reviewed each case and made a provision of €nil (€2.6 million
at 31 Mar 2021) for these claims, which has been reflected in these unaudited
condensed interim consolidated financial statements.
18. Borrowings
(Euro 000's) 31 Mar 2022 31 Dec 2021
Non-current borrowings
Credit facilities 34,050 34,050
34,050 34,050
Current borrowings
Credit facilities 7,572 13,394
7,572 13,394
The Group had uncommitted credit facilities risks totalling €98.8 million.
During 2022, Atalaya drawn down some of its existing credit facilities to pay
the Deferred Consideration (Note 20). Interest rates of existing credit
facilities, including facilities used to pay the Deferred Consideration, range
from 1.60% to 2.45% and the average interest rate on all facilities used and
unused is 1.79%. The maximum term of the facilities is three years. All
borrowings are unsecured.
At 31 March 2022, the Group had used €41.6 million of its facilities and had
undrawn facilities of €57.2 million.
19. Lease liabilities
(Euro 000's) 31 Mar 2022 31 Dec 2021
Non-current
Leases 4,758 4,913
4,758 4,913
Current
Leases 591 597
591 597
Finance leases
The Group entered into lease arrangements for the renting of land and
building, laboratory equipment and vehicles which are subject to the adoption
of all requirements of IFRS 16 Leases. The Group has elected not to recognise
right-of-use assets and lease liabilities for short-term leases that have a
lease term of 12 months or less and leases of low-value assets. Depreciation
expense regarding leases amount to €0.1 million (Q1 2021: €0.3million) for
the three month period ended 31 March 2022. 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 March
2022, the remaining term of this lease is eleven and half years.
The duration of the motor vehicle and laboratory equipment lease is for a
period of four years, payments are due at the beginning of the month
escalating annually on average by 1.5%. At 31 March 2022, the remaining term
of this motor vehicle and laboratory equipment lease is nine months and one
and half years respectively.
(Euro 000's) 31 Mar 2022 31 Dec 2021
Minimum lease payments due:
- Within one year 591 597
- Two to five years 1,990 2,014
- Over five years 2,779 2,899
Present value of minimum lease payments due 5,360 5,510
(Euro 000's) Lease liability
Balance 1 January 2022 5,510
Additions -
Interest expense 5
Lease payments (155)
Balance at 31 March 2022 5,360
Balance at 31 March 2022
- Non-current liabilities 4,769
- Current liabilities 591
5,360
20. Deferred Consideration
In September 2008, the Group moved to 100% ownership of Atalaya Riotinto
Mineral S.L. ("ARM") (and thus full ownership of Proyecto Riotinto) by
acquiring the remaining 49% of the issued capital of ARM. At the time of the
acquisition, the Group signed a Master Agreement (the "Master Agreement") with
Astor Management AG ("Astor") which included a deferred consideration of
€43.9 million (the "Deferred Consideration") payable as consideration in
respect of the acquisition among other items. The Company also entered into a
credit assignment agreement at the same time with a related company of Astor,
Shorthorn AG, pursuant to which the benefit of outstanding loans was assigned
to the Company in consideration for the payment of €9.1 million to Shorthorn
(the "Loan Assignment").
The Master Agreement was the subject of litigation in the High Court and the
Court of Appeal that concluded in November 2018. As a consequence, ARM was
obliged to any excess cash (after payment of operating expenses, sustaining
capital expenditure, any senior debt service requirements and up to US$10
million per annum (for non-Proyecto Riotinto related expenses)) to pay the
consideration due to Astor (including the Deferred Consideration and the
amount of €9.1 million payable under the Loan Assignment). "Excess cash" was
not defined in the Master Agreement leaving ambiguity as to how it was to be
calculated.
On 2 March 2020, the Company filed an application in the High Court to seek
clarity on the definition of "Excess Cash". Following the filing of the
statements of case for the trial, Astor applied to Court seeking an early
determination (without the need for a full trial) of the dispute in relation
to the "Excess Cash" (the "Summary Judgment application"). The Summary
Judgment application was heard on 14-15 June 2021. The Court dismissed Astor's
application meaning the proceedings would continue. The trial was heard from
21 February 2022 (the "Trial").
As at 31 December 2020, no consideration was paid to Astor. However, during
December 2020 the Board had discussions and considered an early payment of the
Deferred Consideration and the Loan Assignment provided certain conditions
could be met. Conditions included among others the execution of credit
facilities agreements to fund the payment.
In March 2021, the Company fulfilled all conditions required by the Board and
made the early payment of €53 million to Astor. The payment was fully funded
by unsecured credit facilities.
The payment of the Deferred Consideration did not end the ongoing litigation
as the issue as to whether any residual interest may or may not be payable
remained unresolved. On 15 July 2021, the Company transferred €15.4 million
to the Company's solicitors representing the full amount of interest claimed
by Astor (as at that date) to 30 June 2022. The Company's solicitors provided
an undertaking to Astor's solicitors to hold the full amount until settlement
of the claim to interest or judgment following the Trial. The Company
understood the monies held on client account by the Company's solicitors
safeguarded the maximum outstanding liability to Astor in relation to the
Master Agreement. On that basis, and because the Consideration has been paid
in full in accordance with the Master Agreement, the Company treated itself as
free of the obligations set out at clauses 6(g)(iv)(A) and 6(g)(iv)(B) in the
Master Agreement.
On 21 March 2022, further to the Trial which took place between 21 February
and 1 March 2022, Judgment was handed down. The Judgment deals with matters of
principle. It was left to the parties to calculate the amount of interest that
is payable on the basis of the Judge's conclusions. On 7 and 8 April 2022, the
Company made an initial payment of €9.6 million from the solicitors' client
account it had established in July 2021.
A consequential hearing was held on 6 May 2022 dealing with (i) the interest
calculation; and (ii) Atalaya's application for permission to appeal. As to
(i), again the Court decided certain matters of principle at the hearing and
gave directions as to the remaining issue to be resolved between the parties.
As to (ii), the Court denied Atalaya's application. Atalaya has a right to
apply for permission to appeal from the Court of Appeal.
The Company agreed a final payment amount of €1.1 million with Astor which
was paid on 16 May 2022 from its solicitors' client account. Subject to the
position on costs, the Company has now discharged its liability to Astor in
respect of 'Excess Cash' and associated interest under the Master Agreement.
21. Acquisition, Incorporation and Disposal of Subsidiaries
2022
Acquisition and incorporation of subsidiaries
There were no acquisition or incorporation of subsidiaries during the three
months period ended 31 March 2022.
Disposals of subsidiaries
There were no disposals of subsidiaries during the three months period ended
31 March 2022.
Wind-up of subsidiaries
On 4 January 2022, the subsidiary EMED Mining Spain, S.L. was wound up.
2021
Acquisition and incorporation of subsidiaries
There were no acquisition nor incorporation of subsidiaries during the three
months period ended 31 March 2021.
Disposals of subsidiaries
There were no disposals of subsidiaries during the three months period ended
31 March 2021.
Wind-up of subsidiaries
There were no operations wound up during the three months period ended 31
March 2021.
22. Related Party Transactions
The following transactions were carried out with related parties:
22.1 Compensation of key management personnel
The total remuneration and fees of Directors (including Executive Directors)
and other key management personnel was as follows:
(Euro 000's) Three months ended Three months ended
31 Mar 2022 31 Mar 2021
Directors' remuneration and fees 258 279
Share option-based benefits to directors 64 56
Key management personnel fees 141 142
Share option-based and other benefits to key management personnel 61 65
524 542
22.2 Share-based benefits
The directors and key management personnel have not been granted any options
during the three-month period ended 31 March 2022 (Q1 2021: nil).
22. Related Party Transactions (cont.)
22.3 Transactions with related parties/shareholders
i) Transaction with shareholders
(Euro 000's) Three months ended Three months ended
31 Mar 2022 31 Mar 2021
Trafigura- Revenue from contracts 8,218 21,875
Freight services - -
8,218 21,875
Gain / (losses) relating provisional pricing within sales 1,395 (270)
9,613 21,605
ii) Period-end balances with related parties
(Euro 000's)
31 Mar 2022 31 Dec 2021
Receivables from related parties:
Recursos Cuenca Minera S.L. 56 56
Total (Note12) 56 56
The above balances bear no interest and are repayable on demand.
iii) Period-end balances with shareholders
(Euro 000's) 31 Mar 2022 31 Dec 2021
Trafigura - Debtor balance- subject to provisional pricing - 20,283
Total (Note 12) - 20,283
The above debtor balance arising from sales of goods and other balances bear
no interest and is repayable on demand.
23. Contingent Liabilities
Legal and administrative cases
In the normal course of business, the Group may be involved in legal
proceedings, claims and assessments. Such matters are subject to many
uncertainties, and outcomes are not predictable with assurance. Legal fees for
such matters are expensed as incurred and the Group accrues for adverse
outcomes as they become probable and estimable.
24. Commitments
There are no minimum exploration requirements at Proyecto Riotinto. However,
the Group is obliged to pay local land taxes which currently are approximately
€235,000 per year in Spain and the Group is required to maintain the
Riotinto site in compliance with all applicable regulatory requirements.
In 2012, ARM entered into a 50/50 joint venture with Rumbo to evaluate and
exploit the potential of the class B resources in the tailings dam and waste
areas at Proyecto Riotinto (mainly residual gold and silver in the old gossan
tailings). Under the joint venture agreement, ARM will be the operator of the
joint venture, will reimburse Rumbo for the costs associated with the
application for classification of the Class B resources and will fund the
initial expenditure of a feasibility study up to a maximum of €2.0 million.
Costs are then borne by the joint venture partners in accordance with their
respective ownership interests.
25. Significant Events
Τhe events in Ukraine from 24 February 2022 are impacting the Global Economy
but cannot yet be predicted in full. The main concern now is the rising prices
for energy, fuel and other raw materials and rising inflation, which may
affect household incomes and business operating costs. The financial effect of
the current crisis on the Global Economy and overall business activities
cannot be estimated with reasonable certainty at this stage.
· On 4 January 2022 the subsidiary EMED Mining Spain, S.L. was
disposed.
· On 6 January 2022, the Company announced the approval of the
construction of the first phase of an industrial scale plant ("Phase I") that
utilises the E-LIX System ("E-LIX"), which will produce high value copper and
zinc metals from the complex sulphide concentrates sourced from Proyecto
Riotinto.
· On 25 January 2022, the Company announced that it has published a
new document that provides additional disclosure on the Company's
comprehensive approach to Environmental, Social and Governance matters.
· On 26 January 2022, the Company announced that it was notified
that PDMRs executed options as follow:
- Alberto Lavandeira, Chief Executive Officer and Managing
Director of the Company executed 150,000 options. Following the above
transactions Mr. Lavandeira is interested in an aggregate of 430,000 ordinary
shares of the Company representing 0.30% of the current issued share capital.
- Enrique Delgado, General Manager of Proyecto Riotinto, executed
550,000 options. Following the above transactions Mr. Delgado was interested
in an aggregate of 550,000 ordinary shares of the Company at that date
representing 0.39% of the current issued share capital.
- César Sánchez, Chief Financial Officer, executed 650,000
options. Following the above transactions Mr. Sánchez was interested in an
aggregate of 650,000 ordinary shares of the Company at that date representing
0.46% of the current issued share capital.
· On 27 January 2022, Atalaya announced that, in accordance with
the Company's Long Term Inventive Plan 2020, it has granted 120,000 share
options an employee.
25. Significant Events (cont.)
· On 3 February 2022, the Company announced the results of five
additional drill holes from its ongoing resource definition drilling programme
at Proyecto Masa Valverde ("PMV"). PMV is located in southern Spain
approximately 28 km to the south of Atalaya's 15Mtpa mill at Proyecto
Riotinto.
New drill results include best continuous copper intercept at PMV to date: 125
metres at 1.19% Cu, including high grade intervals of 12m at 2.29% Cu, 19m at
2.56% Cu and 15m at 2.27% Cu.
· On 22 February 2022, the Company announced that it was notified
on 21 February 2022, that Cesar Sanchez and Enrique Delgado, both persons
discharging managerial responsibilities ("PDMR"), had sold 300,000 and 250,000
ordinary shares in Atalaya, respectively, at a price of 440.0 pence per share.
Following the sale of these shares Mr Sanchez is interested in an aggregate of
350,000 ordinary shares of the Company representing 0.250% of the current
issued share capital. Mr. Delgado is interested in an aggregate of 300,000
ordinary shares of Atalaya representing 0.215% of the current issued share
capital.
· On 21 March 2022, further to the Trial which took place between
21 February and 1 March 2022, the Judgment was handed down. The Judgment deals
with matters of principle. The points that the Judge has decided will dictate
the amount of interest that is payable.
· On 24 March 2022, Atalaya announced that Mr. Harry Liu has
stepped down as a Non-Executive Director of the Company with immediate effect.
26. Events After the Reporting Period
· On 4 April 2022, new shareholders of the Company, Newline
Insurance Company Limited, Brit Reinsurance (Bermuda) Limited, Brit Syndicates
Limited, Odyssey Reinsurance Company, acquired 5.08% of voting rights.
· On 4 April 2022, Allianz Global Investors GmbH, shareholder of
the Company, increased its % of voting rights from below 3% to 3.92%.
· On 5 April 2022, Atalaya announced a new Mineral Resource
Estimate, prepared in accordance with CIM guidelines and disclosure
requirements of NI 43-101, for its 100% owned Proyecto Masa Valverde.
· On 7 April 2022, the Company noted the announcement on 1 April
2022 by ICBC Standard Bank Plc ("ICBCS") confirming the sale of the entire
holding of Yanggu Xiangguang Copper Co. Ltd ("XGC") (via its subsidiary, Hong
Kong Xiangguang International Holdings Ltd), in Atalaya. The Company therefore
understands that XGC has ceased to be a shareholder.
· On 13 April 2022, Atalaya announced new Mineral Resource
Estimates, prepared in accordance with CIM guidelines and disclosure
requirements of NI 43-101, for its San Dionisio and San Antonio deposits.
· On 25 April 2022, the Company announced the publication of its
inaugural Sustainability Report for the year ended 31 December 2021.
· The 2021 Sustainability Report represents a key component of the
Company's ongoing commitment to enhancing its disclosure and reporting. The
report was prepared in accordance with Global Reporting Initiative
Sustainability Reporting Standards ("GRI Standards") with the assistance of
independent sustainability consultancy ERM and was audited by EY.
· On 4 May 2022, Allianz Global Investors GmbH, shareholder of the
Company, increased its % of voting rights from below 3.92% to 4.07%.
· On 8 April 2022, the Company transferred €9.6 million to Astor
from the trust account already established by Atalaya on 15 July 2021.
26. Events After the Reporting Period (cont.)
· A hearing in respect of the Astor litigation was held on 6 May
2022, further to which the calculation of the correct interest arising under
the Master Agreement was agreed between the parties. Consequently, the Company
paid the final amount out of an escrow account held for that purpose. Subject
to the position on costs, the Company has now discharged its liability to
Astor in respect of 'Excess Cash' and associated interest under the Master
Agreement.
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