REG - Atalaya Mining PLC - Q2 and H1 2023 Financial Results
10/08/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230810:nRSJ8598Ia&default-theme=true
RNS Number : 8598I Atalaya Mining PLC 10 August 2023
10 August 2023
Atalaya Mining Plc.
("Atalaya" and/or the "Company")
Q2 and H1 2023 Financial Results
Strong production, decreasing AISC and focus on organic growth
Atalaya Mining Plc (AIM: ATYM) is pleased to announce its unaudited second
quarter and first half financial results for the period ended 30 June 2023
("Q2 2023" and "H1 2023" respectively) together with its unaudited condensed
consolidated interim financial statements.
Highlights
· Strong copper production of 14.2 kt in Q2 2023, bringing H1 2023
total to 26.4 kt
· Improved AISC of $2.89/lb Cu in Q2 2023 mainly due to lower
electricity prices
· FY2023 outlook on track: production of 53-55 kt copper at AISC of
$3.00-3.20/lb
· EBITDA of €15.7 million in Q2 2023 and €40.1 million in H1
2023 as improved cash costs offset lower copper prices
· 2023 interim dividend of US$0.05 per ordinary share declared
· Strong net cash position of €68.8 million supports ongoing
investments in growth, cost reductions and decarbonisation initiatives
Q2 and H1 2023 Financial Results Summary
Period ended 30 June Unit Q2 2023 Q2 2022 H1 2023 H1 2022
Revenues from operations €k 79,051 93,418 170,222 179,669
Operating costs €k (63,345) (78,749) (130,111) (138,288)
EBITDA €k 15,706 14,669 40,111 41,381
Profit for the period €k 9,204 11,849 20,308 30,106
Basic earnings per share € cents/share 6.8 8.6 15.0 22.1
Interim dividend declared per share ((1)) $/share n/a n/a 0.050 0.036
Cash flows from operating activities €k 18,888 (6,916) 31,250 21,382
Cash flows used in investing activities €k (7,929) (19,771) (16,740) (27,323)
Cash flows from financing activities €k (18,936) 17,841 (28,367) 15,463
Net cash position ((2)) €k 68,752 67,554 68,752 67,554
Working capital surplus €k 81,350 129,280 81,350 129,280
Average realised copper price US$/lb 3.81 4.28 3.90 4.38
(excluding QPs)
Cu concentrate produced tonnes 67,931 63,027 125,600 117,235
Cu production tonnes 14,212 13,386 26,351 24,847
Cash costs US$/lb payable 2.60 3.12 2.73 3.22
All-In Sustaining Cost ("AISC") US$/lb payable 2.89 3.33 3.00 3.45
(1) Interim dividends declared in relation to H1 2023 and H1 2022
periods, respectively.
(2) Includes restricted cash and bank borrowings at 30 June 2023 and
2022.
Alberto Lavandeira, CEO, commented:
"I am pleased to report that we have delivered a strong performance in the
first half of 2023. Our operations are performing well, with production on
track to achieve full year objectives. In addition, our AISC has improved
thanks to lower electricity prices, helping to offset lower copper prices. The
resulting EBITDA of €40.1 million in H1 2023 reflects the resiliency of our
business.
Copper fundamentals continue to improve, with many large miners having
recently downgraded their production guidance for 2023 as a result of
operational challenges and project delays. Over the medium term, few large new
projects are expected to be sanctioned due to uncertainties related to
permitting and cost inflation.
In addition, more governments around the world are now classifying copper as a
strategic metal. Recently, the U.S. Department of Energy released its 2023
Critical Materials Assessment, which included copper on its list of materials
with high risk of supply disruption that are integral to clean energy
technologies.
Atalaya is well placed to benefit from the improving market dynamics of
copper. We have a robust cash position and are continuing to advance our
diverse project portfolio. Combined, these initiatives have the potential to
increase our copper production, reduce our cost position, lower our carbon
footprint and extend the life of our operations in Spain."
Investor Presentation Reminder
Alberto Lavandeira (CEO) and César Sánchez (CFO) will be holding a live
presentation relating to the Q2 and H1 2023 Financial Results via the Investor
Meet Company platform at 13:00 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
(https://www.investormeetcompany.com/atalaya-mining-plc/register-investor)
Management will also answer questions that have been submitted via the
Investor Meet Company dashboard.
Q2 and H1 2023 Operating Results Summary
Units expressed in accordance with the international system of units (SI) Unit Q2 2023 Q2 2022 YTD 2023 YTD 2022
Ore mined t 3,934,462 3,572,871 7,356,018 7,527,518
Waste mined t 8,640,747 6,740,305 15,157,650 13,578,935
Ore processed t 4,077,681 3,980,820 7,801,534 7,528,307
Copper ore grade % 0.40 0.39 0.39 0.38
Copper concentrate grade % 20.92 21.23 20.98 21.19
Copper recovery rate % 87.18 86.44 87.04 86.26
Copper concentrate tonnes 67,931 63,027 125,600 117,235
Copper contained in concentrate tonnes 14,212 13,386 26,351 24,847
Payable copper contained in concentrate tonnes 13,533 12,756 25,095 23,674
Mining
Ore mined was 3.9 million tonnes in Q2 2023 (Q2 2022: 3.6 million tonnes) and
7.4 million tonnes in H1 2023 (H1 2022: 7.5 million tonnes).
Waste mined was 8.6 million tonnes in Q2 2023 (Q2 2022: 6.7 million tonnes)
and 15.2 million tonnes in H1 2023 (H1 2022: 13.6 million tonnes). Waste
mining during H1 2023 was consistent with budget and includes increased waste
stripping at Cerro Colorado in anticipation of the potential start of mining
activities at San Dionisio in late 2023.
Processing
The plant processed ore of 4.1 million tonnes in Q2 2023 (Q2 2022: 4.0 million
tonnes) and 7.8 million tonnes in H1 2023 (H1 2022: 7.5 million tonnes).
Throughput rates in Q2 2023 reflected strong mill performance following the
prior rescheduling of plant maintenance activities into Q1 2023.
Copper grade was 0.40% in Q2 2023 (Q2 2022: 0.39%) and 0.39% in H1 2023 (H1
2022: 0.38%).
Copper recoveries in Q2 2023 were 87.18% (Q2 2022: 86.44%) and 87.04% in H1
2023 (H1 2022: 86.26%), as a result of favourable ore characteristics during
the 2023 periods.
Production
Copper production was 14,212 tonnes in Q2 2023 (Q2 2022: 13,386 tonnes) and
26,351 tonnes in H1 2023 (H1 2022: 24,847 tonnes). Production during the 2023
periods benefited from higher throughput, copper grades and copper recoveries
compared with the 2022 periods.
On-site copper concentrate inventories at 30 June 2023 were approximately
7,291 tonnes (31 March 2023: 1,564 tonnes). All concentrate in stock at the
beginning of the period was delivered to the port at Huelva.
Copper contained in concentrates sold was 12,858 tonnes in Q2 2023 (Q2 2022:
13,872 tonnes) and 25,359 tonnes in H1 2023 (H1 2022: 24,176 tonnes).
Cash Costs and AISC Breakdown
$/lb Cu payable Q2 2023 Q2 2022 H1 2023 H1 2022
Mining 0.79 0.87 0.81 0.86
Processing 0.82 1.22 0.89 1.31
Other site operating costs 0.52 0.50 0.51 0.55
Total site operating costs 2.13 2.59 2.21 2.72
By-product credits (0.08) (0.11) (0.08) (0.09)
Freight, treatment charges and other offsite costs 0.55 0.64 0.60 0.59
Total offsite costs 0.47 0.53 0.52 0.50
Cash costs 2.60 3.12 2.73 3.22
Cash costs 2.60 3.12 2.73 3.22
Corporate costs 0.09 0.08 0.08 0.10
Sustaining capital (excluding one-off tailings expansion) 0.04 0.08 0.03 0.06
Capitalised stripping costs 0.10 - 0.09 0.01
Other costs 0.06 0.05 0.07 0.06
Total AISC 2.89 3.33 3.00 3.45
Cash costs were $2.60/lb payable copper in Q2 2023 (Q2 2022: $3.12/lb) and
$2.73/lb payable copper in H1 2023 (H1 2022: $3.22/lb), with the decrease
mainly due to lower electricity costs and higher production volumes.
AISC were $2.89/lb payable copper in Q2 2023 (Q2 2022: $3.33/lb) and $3.00/lb
payable copper in H1 2023 (H1 2022: $3.45/lb). The decrease in AISC was driven
by the same factors that resulted in lower cash costs, but partly offset by
higher capitalised stripping costs. AISC excludes one-off investments in the
tailings dam, consistent with prior reporting.
Q2 and H1 2023 Financial Results Highlights
Income Statement
Revenues were €79.1 million in Q2 2023 (Q2 2022: €93.4 million) and
€170.2 million in H1 2023 (H1 2022: €179.7 million). Lower revenues were
mainly the result of lower realised copper prices during the 2023 periods.
Operating costs were €63.3 million in Q2 2023 (Q2 2022: €78.7 million) and
€130.1 million (H1 2022: €138.3 million). Lower operating costs during the
2023 periods were mainly the result of lower electricity costs and modestly
lower expensed mining costs, partly offset by higher administrative and
expensed exploration costs.
EBITDA was €15.7 million in Q2 2023 (Q2 2022: €14.7 million) and €40.1
million in H1 2023 (H1 2022: €41.4 million). The comparable level of EBITDA
resulted from lower copper prices being offset by lower operating costs.
Profit after tax was €9.2 million in Q2 2023 (Q2 2022: €11.8 million) or
6.8 cents basic earnings per share (Q2 2022: 8.6 cents) and €20.3 million in
H1 2023 (H1 2022: €30.1 million) or 15.0 cents basic earnings per share (Q2
2022: 22.1 cents).
Cash Flow Statement
Cash flows from operating activities before changes in working capital were
€14.7 million in Q2 2023 (Q2 2022: €14.3 million) and €18.9 million
after working capital changes (Q2 2022: negative €6.9 million). For H1 2023,
cash flows from operating activities before changes in working capital were
€38.9 million (H1 2022: €41.3 million) and €31.3 million after working
capital changes (H1 2022: €21.4 million).
Cash flows used in investing activities were €7.9 million in Q2 2023 (Q2
2022: €19.8 million) and €16.7 million in H1 2023 (H1 2022: €27.3
million). Key investments in Q2 2023 included €1.1 million in sustaining
capex (Q2 2022: €2.0 million), €2.7 million in capitalised stripping (Q2
2022: €20 thousand), €3.5 million to increase the tailings dam (Q2 2022:
€3.9 million), €2.8 million for the 50 MW solar plant (Q2 2022: €11.3
million) and €5.0 million for the E-LIX Phase I Plant (Q2 2022: €5.8
million), of which €3.0 million was booked as long-term loans to Lain
Technologies Ltd.
Cash flows from financing activities were negative €18.9 million in Q2 2023
(Q2 2022: positive €17.8 million) and negative €28.4 million in H1 2023
(H1 2022: positive €15.5 million), as a result of scheduled repayments made
under the Company's credit facilities.
Balance Sheet
Consolidated cash and cash equivalents were €112.6 million at 30 June 2023
(31 December 2022: €126.4 million).
Net of current and non-current borrowings of €43.9 million, net cash was
€68.8 million as at 30 June 2023, compared to €55.3 million as at 31 March
2023 and €53.1 million as at 31 December 2022.
Inventories of concentrate valued at cost were €8.2 million at 30 June 2023
(31 December 2022: €4.5 million).
As at 30 June 2023, total working capital was €81.4 million, compared to
€85.3 million as at 31 March 2023 and €84.0 million as at 31 December
2022.
Electricity Prices
Realised Prices
Market electricity prices in Q2 2023 continued to moderate. When including the
contribution from the Company's 10-year power purchase agreement ("PPA"),
realised electricity prices in Q2 2023 and H1 2023 were around 60% lower than
the Company's average realised electricity price in 2022.
Renewable Energy Projects
Construction of the 50 MW solar plant at Riotinto continues to advance, with
start-up expected in late 2023 or early 2024. When fully operational, the
facility is expected to provide approximately 22% of Riotinto's current
electricity needs. Together, the 50 MW solar plant and long-term PPA will
provide over 50% of the Company's current electricity requirements at a rate
below historical prices in Spain.
The Company continues to assess the potential installation of wind turbines at
Riotinto, which could supply additional low cost and carbon-free electricity
and contribute to the Company's decarbonisation objectives.
2023 Guidance
The Company remains on track to achieve the full year 2023 guidance, including
copper production guidance of 53,000 to 55,000 tonnes of copper at cash costs
of $2.80 to $3.00/lb copper payable and AISC of $3.00 to $3.20/lb copper
payable.
In addition, aggregate expenditures relating to non-sustaining capital
investments (such as E-LIX Phase I, the 50 MW solar plant, Riotinto tailings
facility expansion) and exploration activities are trending in line with
FY2023 guidance, although the composition is expected to vary slightly
including modestly higher investments in the E-LIX Phase I plant.
2023 Interim Dividend
Since 2022, Atalaya has had a dividend policy that seeks to provide capital
returns to its shareholders and allows for continued investments in its
portfolio of low capital intensity growth projects. The dividend policy
consists of an annual pay-out of 30 - 50% of free cash flow generated during
the applicable financial year and is payable in two half-yearly instalments.
In relation to FY2022, Atalaya completed the payment of the 2022 Final
Dividend of US$0.0385 per ordinary share on 8 August 2023.
In relation to the H1 2023 period, the Company's Board of Directors has
elected to declare an interim dividend of US$0.050 per ordinary share ("2023
Interim Dividend"), which is equivalent to approximately 3.9 pence per share.
This compares to the 2022 interim dividend of US$0.036 per ordinary share.
Shareholders can elect to receive the 2023 Interim Dividend in Sterling or
Euros by submitting a currency election form, which will be made available on
the Company's website.
2023 Interim Dividend Timetable
Event Date
Ex-dividend date 24 August 2023
Record date 25 August 2023
Last day for currency election 8 September 2023
Reference date for exchange rates used for conversion 11 September 2023
Announcement of dividend currency exchange rates 12 September 2023
Estimated payment date 28 September 2023
The Company is not required to withhold any Cypriot special defence
contributions or general healthcare system contributions upon the distribution
of dividends to its shareholders, as a result of the approval obtained from
the Tax Department of the Ministry of Finance of the Republic of Cyprus.
Asset Portfolio Update
Proyecto Riotinto
In April 2023, the Company was granted a substantial modification to the
existing Unified Environmental Authorisation (or in Spanish, Autorización
Ambiental Unificada ("AAU")) for Proyecto Riotinto by the Junta de Andalucía.
This allows for the expansion of tailings capacity at Riotinto and represents
an important step towards developing regional deposits such as San Dionisio
and San Antonio.
During H1 2023, the Company continued permitting activities associated with
San Dionisio, which represents a key component of the integrated mine plan
that was outlined in the recent Riotinto PEA.
E-LIX Phase I Plant
Construction activities continue at the E-LIX Phase I plant, with
commissioning expected during H2 2023.
Once operational, the E-LIX plant is expected to produce high purity copper or
zinc metals on site, allowing the Company to potentially achieve higher metal
recoveries from complex polymetallic ores, lower transportation and
concentrate treatment charges and a reduced carbon footprint.
Riotinto District - Proyecto Masa Valverde ("PMV")
In March 2023, the Company announced that PMV was granted the AAU by the
Junta de Andalucía, following an application process that was initiated by
the Company in December 2021. The AAU is an integrated process that combines
the Environmental Impact Assessment and other authorisations and specifies
requirements to avoid, prevent and minimise a project's impacts on the
environment and the cultural heritage of the area. Various evaluation
workstreams continue in advance of filing for the exploitation permit.
Three core rigs are active and focused on resource definition drilling at the
Campanario Trend, step-out drilling around the new discovery made at the
Mojarra Trend and first drill testing coincident fix loop electromagnetic
("FLEM") and airborne gravity gradiometry ("AGG") anomalies.
Proyecto Touro
Atalaya remains fully committed to the development of the Touro copper project
in Galicia, which could become a new source of copper production for Europe.
In March 2023, the European Union announced the Critical Raw Materials Act,
which seeks to "address the EU's dependency on imported critical raw materials
by diversifying and securing a domestic and sustainable supply of critical raw
materials". Copper was added to the list of "Strategic Raw Materials" as a
result of the challenges associated with substituting copper metal in
electrical applications.
Running parallel with the Touro permitting process, the Company continues to
focus on numerous initiatives related to securing the social licence to
operate, including engaging with the many stakeholders in the region to
provide detailed information on the new improved project design. Positive and
favourable feedback from numerous meetings with municipalities, farmers and
fishermen associations and other industries indicate meaningful support
towards the development of a new and modern mining project.
The Company continues to restore rivers around Touro and is operating its
water treatment plant, which is addressing the legacy issues associated with
acid water runoff from the historical mine, which closed in 1987. The
construction of the treatment plant was contemplated in the original project
proposal, but Atalaya volunteered to fix the historical acid water issues
prior to the new Environmental Impact Assessment ("EIA") in order to
demonstrate its operating philosophy and the benefits of modern operating
systems. The field work carried out by Atalaya has resulted in an immediate
and visible improvement of the water systems surrounding the project.
Atalaya continues to be confident that its approach to Touro, which includes
fully plastic lined thickened tailings with zero discharge, is consistent with
international best practice and will satisfy the most stringent environmental
conditions that may be imposed by the authorities prior to the development of
the project.
Proyecto Ossa Morena
Drilling continued to progress with one rig at the Guijarro-Chaparral
gold-copper project, located in the central part of the district. Drilling at
the flagship Alconchel-Pallares copper-gold project is expected to commence
during Q3 2023.
Proyecto Riotinto East
Drill testing of selected coincident FLEM and AGG anomalies are in progress
with one rig.
Corporate Matters
Following the voluntary delisting of the Company's ordinary shares from the
Toronto Stock Exchange ("TSX"), an application was made to cease to be a
reporting issuer in Canada. The request was granted during Q2 2023, and as a
result, the Company will no longer be required to file financial statements
and other continuous disclosure documents in Canada.
The Company's disclosure obligations under the AIM Rules for Companies, as
published by London Stock Exchange plc, are unchanged.
Financial Statements
The Unaudited Interim Condensed Consolidated Financial Statements for the
three and six months ended 30 June 2023 are also available on Atalaya's
website at www.atalayamining.com (http://www.atalayamining.com) .
Contacts:
SEC Newgate UK Elisabeth Cowell / Tom Carnegie / Matthew Elliott + 44 20 3757 6882
4C Communications Carina Corbett +44 20 3170 7973
Canaccord Genuity Henry Fitzgerald-O'Connor / James Asensio / Thomas Diehl +44 20 7523 8000
(NOMAD and Joint Broker)
BMO Capital Markets Tom Rider / Andrew Cameron +44 20 7236 1010
(Joint Broker)
Peel Hunt LLP Ross Allister / David McKeown +44 20 7418 8900
(Joint Broker)
About Atalaya Mining Plc
Atalaya is an AIM-listed mining and development group which produces copper
concentrates and silver by-product at its wholly owned Proyecto Riotinto site
in southwest Spain. Atalaya's current operations include the Cerro Colorado
open pit mine and a modern 15 Mtpa processing plant, which has the potential
to become a central processing hub for ore sourced from its wholly owned
regional projects around Riotinto that include Proyecto Masa Valverde and
Proyecto Riotinto East. In addition, the Group has a phased earn-in agreement
for up to 80% ownership of Proyecto Touro, a brownfield copper project in the
northwest of Spain, as well as a 99.9% interest in Proyecto Ossa Morena. For
further information, visit www.atalayamining.com
(http://www.atalayamining.com)
ATALAYA MINING PLC
MANAGEMENT'S REVIEW AND
UNAUDITED INTERIM CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
30 June 2023
Notice to Reader
The accompanying unaudited interim condensed consolidated financial statements
of Atalaya Mining Plc have been prepared by and are the responsibility of
Atalaya Mining Plc's management.
Atalaya will audit the Financial Statements for the period ended 30 June 2023
and the audited financial statements will be published on Atalaya's website in
due course.
Introduction
This report provides an overview and analysis of the financial results of
operations of Atalaya Mining Plc and its subsidiaries ("Atalaya" and/or
"Group"), to enable the reader to assess material changes in the financial
position between 31 December 2022 and 30 June 2023 and results of operations
for the three and six months ended 30 June 2023 and 2022.
This report has been prepared as of 9 August 2023. 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 30 June 2023. 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 2022, and the unaudited interim condensed consolidated financial
statements for the period ended 30 June 2022. These documents can be found 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 ("IFRS") as adopted by the EU and
its Unaudited Interim Condensed Consolidated Financial Statements in
accordance with International Accounting Standard 34: Interim Financial
Reporting. The currency referred to in this document is the Euro, unless
otherwise specified.
Forward-looking statements
This report may include certain "forward-looking statements" and
"forward-looking information" under applicable securities laws. Except for
statements of historical fact, certain information contained herein constitute
forward-looking statements. Forward-looking statements are frequently
characterised by words such as "plan", "expect", "project", "intend",
"believe", "anticipate", "estimate", and other similar words, or statements
that certain events or conditions "may" or "will" occur. Forward-looking
statements are based on the opinions and estimates of management at the date
the statements are made, and are based on a number of assumptions and subject
to a variety of risks and uncertainties and other factors that could cause
actual events or results to differ materially from those projected in the
forward-looking statements. Assumptions upon which such forward-looking
statements are based include that all required third party regulatory and
governmental approvals will be obtained. Many of these assumptions are based
on factors and events that are not within the control of Atalaya and there is
no assurance they will prove to be correct. Factors that could cause actual
results to vary materially from results anticipated by such forward-looking
statements include changes in market conditions and other risk factors
discussed or referred to in this report and other documents filed with the
applicable securities regulatory authorities. Although Atalaya has attempted
to identify important factors that could cause actual actions, events or
results to differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events or results
not to be anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
statements. Atalaya undertakes no obligation to update forward-looking
statements if circumstances or management's estimates or opinions should
change except as required by applicable securities laws. The reader is
cautioned not to place undue reliance on forward-looking statements.
1. Incorporation and 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. The Company continued to be listed on AIM as at 30 June
2023.
On 20 February 2023, Atalaya announced that applied a voluntary delisting of
its ordinary shares from the Toronto Stock Exchange (the "TSX"). Ordinary
shares in the Company continue to trade on the AIM market of the London Stock
Exchange under the symbol "ATYM". Delisting from TSX took effect at the close
of trading on 20 March 2023. Furthermore, Atalaya ceased to be a reporting
issuer in Canadian jurisdictions on 26 June 2023.
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 31 March 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. In July 2022, Atalaya increased its
stake in the company to 99.9% as a result of an equity raise to fund the
exploration activities under the investigation permits.
2. Overview of Operational Results
Proyecto Riotinto
The following table presents a summarised statement of operations of Proyecto
Riotinto for the three and six months ended 30 June 2023 and 2022,
respectively.
Units expressed in accordance with the international system of units (SI) Unit Three month period ended 30 Jun 2023 Three month period ended 30 Jun 2022 Six month period ended 30 Jun 2023 Six month period ended 30 Jun 2022
Ore mined t 3,934,462 3,572,871 7,356,018 7,527,518
Waste mined t 8,640,747 6,740,305 15,157,650 13,578,935
Ore processed t 4,077,681 3,980,820 7,801,534 7,528,307
Copper ore grade % 0.40 0.39 0.39 0.38
Copper concentrate grade % 20.92 21.23 20.98 21.19
Copper recovery rate % 87.18 86.44 87.04 86.26
Copper concentrate t 67,931 63,027 125,600 117,235
Copper contained in concentrate t 14,212 13,386 26,351 24,847
Payable copper contained in concentrate t 13,533 12,756 25,095 23,674
Cash cost* US$/lb payable 2.60 3.12 2.73 3.22
All-in sustaining cost* US$/lb payable 2.89 3.33 3.00 3.45
(*) Refer Section 5 of this Management Review.
There may be slight differences between the numbers in the above table and the
figures announced in the quarterly operations updates that are available on
Atalaya's website at www.atalayamining.com (http://www.atalayamining.com)
$/lb Cu payable Three month period ended 30 Jun 2023 Three month period ended 30 June 2022 Six month period ended 30 Jun 2023 Six month period ended 30 Jun 2022
Mining 0.79 0.87 0.81 0.86
Processing 0.82 1.22 0.89 1.31
Other site operating costs 0.52 0.50 0.51 0.55
Total site operating costs 2.13 2.59 2.21 2.72
By-product credits (0.08) (0.11) (0.08) (0.09)
Freight, treatment charges and other offsite costs 0.55 0.64 0.60 0.59
Total offsite costs 0.47 0.53 0.52 0.50
Cash costs 2.60 3.12 2.73 3.22
Cash costs 2.60 3.12 2.73 3.22
Corporate costs 0.09 0.08 0.08 0.10
Sustaining capital (excluding one-off tailings expansion) 0.04 0.08 0.03 0.06
Capitalised stripping costs 0.10 - 0.09 0.01
Other costs 0.06 0.05 0.07 0.06
Total AISC 2.89 3.33 3.00 3.45
Three months operational review
The plant processed ore of 4.1 million tonnes during Q2 2023 (Q2 2022: 4.0
million tonnes), compared with 3.7 million tonnes in Q1 2023. Throughput rates
during the period reflected strong mill performance following the prior
rescheduling of plant maintenance activities into Q1 2023.
Copper grade was 0.40% in Q2 2023 (Q2 2022: 0.39%), compared with 0.38% in Q1
2023.
Copper recoveries in Q2 2023 were 87.18% (Q2 2022: 86.44%), compared with
86.88% in Q1 2023, as a result of favourable ore characteristics during the
period.
Copper production was 14,212 tonnes in Q2 2023 (Q2 2022: 13,386 tonnes),
compared with 12,139 tonnes in Q1 2023. Production during the period benefited
from strong throughput and copper recoveries.
On-site copper concentrate inventories at 30 June 2023 were approximately
7,291 tonnes (31 March 2023: 1,564 tonnes). All concentrate in stock at the
beginning of the period was delivered to the port at Huelva.
Copper contained in concentrates sold was 12,858 tonnes in Q2 2023 (Q2 2022:
13,872 tonnes), compared with 12,501 tonnes in Q1 2023.
Six months operational review
Production of copper contained in concentrate during H1 2023 was 26,351
tonnes, compared with 24,847 tonnes in the same period of 2022. Payable copper
in concentrates was 25,095 tonnes compared with 23,674 tonnes of payable
copper in H1 2022.
Ore mined in H1 2023 was 7.4 million tonnes compared with 7.5 million tonnes
during H1 2022. Ore processed was 7.8 million tonnes versus 7.5 million tonnes
in H1 2022 with similar-grade stockpiles processed in both periods.
Ore grade during H1 2023 was 0.39% Cu compared with 0.38% Cu in H1 2022.
Copper recovery was 87.04% versus 86.26% in H1 2022. Concentrate production
amounted to 125,600 tonnes above H1 2022 production of 117,235 tonnes.
2. 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.
Operational guidance
Guidance for Proyecto Riotinto is unchanged from previously announced outlook.
Unit Guidance 2023
Ore mined million tonnes 17.1
Waste mined million tonnes 24.1
Ore processed million tonnes 15.3 - 15.8
Copper ore grade % 0.40 - 0.42
Copper recovery rate % 85 - 86
Contained copper tonnes 53,000-55,000
Cash costs $/lb payable 2.80 - 3.00
All-in sustaining cost $/lb payable 3.00 - 3.20
Production guidance for 2023 remains in the range of 53,000 to 55,000 tonnes
of copper.
Inflationary pressures continue to impact the global mining industry. The
prices of many key inputs, including diesel, tyres, explosives, grinding media
and lime, increased materially in 2022 as a result of higher global energy
prices and logistics constraints. Since then, prices have stabilised for
certain items.
The cash cost guidance range for 2023 remains at $2.80 to $3.00/lb copper
payable and the AISC guidance range remains at $3.00 to $3.20/lb copper
payable. These cost guidance ranges are based on an assumed market electricity
price range of €100 to 150/MWh and also include the benefit of the Company's
PPA.
In addition, aggregate expenditures relating to non-sustaining capital
investments (such as E-LIX Phase I, the 50 MW solar plant, Riotinto tailings
facility expansion) and exploration activities are trending in line with
FY2023 guidance, although the composition is expected to vary slightly
including modestly higher investments in the E-LIX Phase I plant.
3. Overview of the Financial Results
The following table presents summarised consolidated income statements for the
three and six months ended 30 June 2023, with comparatives for the three and
six months ended 30 June 2022, respectively.
(Euro 000's) Three month period ended 30 Jun 2023 Three month period ended 30 June 2022 Six month period ended 30 Jun 2023 Six month period ended 30 Jun 2022
Revenues 79,051 93,418 170,222 179,669
Costs of sales (57,618) (78,200) (120,621) (132,989)
Administrative and other expenses (3,612) (868) (5,645) (4,451)
Exploration expenses (2,069) 88 (3,602) (364)
Care and maintenance expenditure (391) (55) (686) (770)
Other income 345 286 443 286
EBITDA 15,706 14,669 40,111 41,381
Depreciation/amortisation (9,411) (8,785) (18,173) (16,305)
Net foreign exchange gain 1,277 7,521 55 10,094
Net finance cost 3,480 (626) 2,636 (941)
Tax (1,848) (930) (4,321) (4,123)
Profit for the period 9,204 11,849 20,308 30,106
Three months financial review
Revenues for the three-month period ended 30 June 2023 amounted to €79.1
million (Q2 2022: €93.4 million). Reduced revenues in comparison to the same
quarter of the previous year were mainly attributable to decreased volumes of
concentrate sold and lower realised prices.
Realised prices excluding QPs were US$3.81/lb copper during Q2 2023 compared
with US$4.28/lb copper in Q2 2022. The realised price during the quarter,
including QPs, was approximately US$3.86/lb.
Cost of sales for the three-month period ended 30 June 2023 amounted to
€57.6 million, compared with €78.2 million in Q2 2022. Unit operating
costs in Q2 2023 were lower than in Q2 2022.
Cash costs of US$2.60/lb payable copper during Q2 2023 compared with
US$3.12/lb payable copper in the same period last year. Lower cash costs were
primarily attributed to a significant reduction in the cost of electricity
(approx. €13.3 million lower) and other supply-related costs, which also
included lower freight prices. AISC for Q2 2023, excluding one-off investments
in the tailings dam, were US$2.89lb payable copper compared with US$3.33/lb
payable copper in Q2 2022.
Sustaining capex for Q2 2023 amounted to €1.1 million compared with €2.0
million in Q2 2022. Sustaining capex mainly related to continuous enhancements
in the processing systems of the plant. In addition, the Company invested
€3.5 million in the project to increase the tailings dam during Q2 2023 (Q2
2022: €3.9 million). Stripping costs capitalised during Q2 2023 amounted to
€2.7 million (Q2 2022: €20k).
Capex associated with the construction of the 50 MW solar plant amounted to
€2.8 million in Q2 2023, while investments in the E-LIX Phase I plant
totalled €5.0 million, of which €3.0 million was booked as long term loans
to Lain Technologies Ltd.
Administrative and other expenses amounted to €3.6 million (Q2 2022: €0.9
million) and include non-operating costs of the Cyprus office, corporate legal
and consultancy costs, on-going listing costs, officers and directors'
emoluments, and salaries and related costs of the corporate office.
Exploration costs on Atalaya's projects portfolio for the three-month period
ended 30 June 2023 amounted to €2.1 million compared to €88k in Q2 2022
mainly as a result of costs incurred during the period in Proyecto Masa
Valverde.
EBITDA for the three months ended 30 June 2023 amounted to €15.7 million
compared with Q2 2022 of €14.7 million.
The main item below the EBITDA line is depreciation and amortisation of €9.4
million (Q2 2022: €8.8 million). In Q2 2023, net financing costs amounted to
a positive €3.5 million (compared to €0.6 million in Q2 2022). This
increase is mainly attributed to the interest received of €3.5 million as a
result of the agreement reached with Astor on 17 May 2023.
Six months financial review
Revenues for the six-month period ended 30 June 2023 amounted to €170.2
million (H1 2022: €179.7 million).
Copper concentrate production during the six-month period ended 30 June 2023
was 125,600 tonnes (H1 2022: 117,235 tonnes) with 122,040 tonnes of copper
concentrates sold in the period (H1 2022: 115,321 tonnes). Higher production
levels in H1 2023 were mainly the result of robust throughput. Inventories of
concentrates as at the reporting date were 7,291 tonnes (31 Dec 2022: 3,529
tonnes).
Realised copper prices, excluding QPs, for H1 2023 were US$3.90/lb copper
compared with US$4.38/lb copper in the same period of 2022. Concentrates were
sold under offtake agreements for the production not committed. The Company
did not enter into any hedging agreements in 2023.
Cost of sales for the six-month period ended 30 June 2023 amounted to €120.6
million, compared with €133.0 million in H1 2022. Lower operating costs in
2023 were due to a reduction in input costs compared with the 2022 period,
where the high cost of electricity, diesel and other supplies were the result
of inflation and the geopolitical situation in Ukraine.
Cash costs of US$2.73/lb payable copper during H1 2023 compare with US$3.22/lb
payable copper in the same period last year. The reduction in cash costs can
be mainly attributed to a significant reduction in the cost of electricity
(approx. €25.3 million lower) and other supplies, including freight prices.
AISC excluding investment in the tailings dam in the six month period were
US$3.00/lb payable copper compared with US$3.45/lb payable copper in H1 2022.
The decrease is mainly due to the lower cash costs, although partly offset by
higher capitalised stripping costs.
Sustaining capex for the six-month period ended 30 June 2023 amounted to
€1.5 million, compared with €2.9 million in the same period the previous
year. Sustaining capex related to enhancements in processing systems of the
plant. In addition, the Company invested €6.9 million in the project to
increase the tailings dam, compared with €6.4 million in 2022.
Capex associated with the construction of the 50 MW solar plant amounted to
€4.5 million in H1 2023, while investments in the E-LIX Phase I plant
totalled €8.4 million, of which €4.9 million was booked as long term loans
to Lain Technologies Ltd.
Corporate costs for the first six-month period ended June 2023 were €5.6
million, compared with €4.5 million in H1 2022. Corporate costs mainly
include the Company's overhead expenses.
Exploration costs related to Atalaya's project portfolio for the six-month
period ended 30 June 2023 and amounted to €3.6 million, compared with €0.4
million, plus €1.4 million capitalised as permits in Proyecto Masa Valverde,
in H1 2022.
EBITDA for the six months ended 30 June 2023 amounted to €40.1 million,
compared with €41.4 million in H1 2022.
Depreciation and amortisation amounted to €18.2 million for the six-month
period ended 30 June 2023 (H1 2022: €16.3 million).
Net foreign exchange gains amounted to €55k in H1 2023 (€10.1 million in
H1 2022).
Net finance costs for H1 2023 amounted to positive €2.7 million (H1 2022
negative €0.9 million).
Copper prices
The average realised copper price (excluding QPs) decreased by 11% to
US$3.81/lb in Q2 2023, from US$4.28/lb in Q2 2022.
The average prices of copper for the three months ended 30 June 2023 and 2022
are summarised below:
$/lb Three month period ended 30 Jun 2023 Three month period ended 30 June 2022 Six month period ended 30 Jun 2023 Six month period ended 30 Jun 2022
Realised copper price (excluding QPs) 3.81 4.28 3.90 4.38
Market copper price per lb (period average) 3.85 4.40 3.95 4.13
Realised copper prices for the reporting period noted above have been
calculated using payable copper and excluding both provisional invoices and
final settlements of quotation periods ("QPs") together. The realised price
during Q2 2023, including the QP, was approximately $3.86/lb.
4. Non-GAAP Measures
Atalaya has included certain non-IFRS measures including "EBITDA", "Cash Cost
per pound of payable copper", "All-In Sustaining Costs" ("AISC") "realised
prices" and "Net Cash/Debt" in this report. Non-IFRS measures do not have any
standardised meaning prescribed under IFRS, and therefore they may not be
comparable to similar measures presented by other companies. These measures
are intended to provide additional information and should not be considered in
isolation or as a substitute for indicators prepared in accordance with IFRS.
EBITDA includes gross sales net of penalties and discounts and all operating
costs, excluding finance, tax, impairment, depreciation and amortisation
expenses.
Cash Cost per pound of payable copper includes cash operating costs, including
treatment and refining charges ("TC/RC"), freight and distribution costs net
of by-product credits. Cash Cost per pound of payable copper is consistent
with the widely accepted industry standard established by Wood Mackenzie and
is also known as the C1 cash cost.
AISC per pound of payable copper includes C1 Cash Costs plus royalties and
agency fees, expenditures on rehabilitation, capitalised stripping costs,
exploration and geology costs, corporate costs and recurring sustaining
capital expenditures but excludes one-off sustaining capital projects, such as
the tailings dam project.
Realised price per pound of payable copper is the value of the copper payable
included in the concentrate produced including the discounts and other
features governed by the offtake agreements of the Group and all discounts or
premiums provided in commodity hedge agreements with financial institutions if
any, expressed in USD per pound of payable copper. Realised prices do not
include period end mark to market adjustments in respect of provisional
pricing Realised price is consistent with the widely accepted industry
standard definition.
5. 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 30
June 2023 and 31 December 2022.
Liquidity information
(Euro 000's) 30 Jun 2023 31 Dec 2022
Unrestricted cash and cash equivalents at Group level 99,700 108,550
Unrestricted cash and cash equivalents at Operation level 12,946 17,567
Restricted cash and cash equivalents at Operation level - 331
Consolidated cash and cash equivalents ((1)) 112,646 126,448
Net cash position ((1)) 68,752 53,085
Working capital surplus 81,350 84,047
((1) ) Includes borrowings
Unrestricted cash and cash equivalents (which include cash at both Group level
and Operation level) as at 30 June 2023 decreased to €112.6 million from
€126.4 million at 31 December 2022. The decrease in cash balances is the
result of net cash flow generated in the period and payment of debt to fund
development of the 50 MW solar plant and other facilities. Restricted cash
amounted at 31 December 2022 to €0.3 million was held in escrow, which
represented funds utilized by the Company to cover interest payments of €9.6
million on 7 and 8 April 2022 (following the trial in February and March 2022)
and €1.1 million on 16 May 2022 to Astor under the Master Agreement.
However, due to the settlement reached with Astor on 17 May 2023 whereby Astor
agreed to repay €3.5 million of interest previously paid to it to finalise
the litigation, the previously restricted cash has now been released and
reversed.
Borrowings have decreased by €29.5 million between 31 December 2022 and 30
June 2023, primarily as a result of repayments made on multiple fronts. These
repayments include those made towards the financing of the solar plant
facility, as well as the repayment of debt associated with operating
facilities and the Astor facility. The company's proactive approach to its
balance sheet has led to this substantial reduction in the borrowing balance,
indicating improved financial management and a strengthened position for the
company.
As of 30 June 2023, Atalaya reported a working capital surplus of €81.4
million, compared with a working capital surplus of €84.0 million at 31
December 2022. 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 settlement of credit facilities during Q2 2023.
The decrease in working capital resulted from higher inventory levels and
lower payable balances.
Overview of the Group's cash flows
(Euro 000's) Three month period ended 30 Jun 2023 Three month period ended 30 June 2022 Six month period ended 30 Jun 2023 Six month period ended 30 Jun 2022
Cash flows / (used in) from operating activities 18,888 (6,916) 31,250 21,382
Cash flows used in investing activities (7,929) (19,771) (16,740) (27,323)
Cash flows (used in) / from financing activities (18,936) 17,841 (28,367) 15,463
Net (decrease) / increase in cash and cash equivalents (7,977) (8,846) (13,857) 9,522
Net foreign exchange differences 1,277 7,521 55 10,094
Total net cash flow for the period (6,700) (1,325) (13,802) 19,616
Three months cash flows review
Cash and cash equivalents decreased by €6.7 million during the three months
ended 30 June 2023. This was due to the net results of cash from operating
activities amounting to €18.9 million, the cash used in investing activities
amounting to €7.9 million, the cash used in financing activities totalling
€18.9 million and net foreign exchange differences of €1.3 million.
Cash generated from operating activities before working capital changes was
€14.7 million. Atalaya decreased its trade receivables in the period by
€9.9 million, increased its inventory levels by €3.9 million and increased
its trade payables by €0.3 million.
Investing activities during the quarter consumed €7.9 million, relating
mainly to the 50 MW solar plant construction, tailings dam project, E-LIX
project and continuous enhancements in the processing systems of the plant.
Financing activities during the quarter decreased by €18.9 million primarily
due to the settlement of unsecured credit facilities.
Six months cash flows review
Cash and cash equivalents decreased by €13.8 million during the six months
ended 30 June 2023. This was due to cash from operating activities amounting
to €31.3 million, cash used in investing activities amounting to €16.7
million, cash used in financing activities amounting to €28.4 million and
net foreign exchange differences of €0.1 million.
Cash generated from operating activities before working capital changes was
€38.9 million. Atalaya decreased its trade payables in the period by €20.6
million, decreased its inventory levels by €0.1 million and decreased its
trade receivable balances by €17.3 million.
Throughout the quarter, investing activities amounted to €16.7 million, with
the majority of funds directed towards the construction of the 50 MW solar
plant, the tailings dam project, the E-LIX project, and ongoing enhancements
in the plant's processing systems.
Financing activities during the six-month period ended 30 June 2023 decreased
by €28.4 million driven by the repayment of unsecured credit facilities.
Foreign exchange
Foreign exchange rate movements can have a significant effect on Atalaya's
operations, financial position and results. Atalaya's sales are denominated in
U.S. dollars ("USD"), while Atalaya's operating expenses, income taxes and
other expenses are mainly denominated in Euros ("EUR") which is the functional
currency of the Group, and to a much lesser extent in British Pounds ("GBP").
Accordingly, fluctuations in the exchange rates can potentially impact the
results of operations and carrying value of assets and liabilities on the
balance sheet.
During the three and six months ended 30 June 2023, Atalaya recognised a
foreign exchange profit of €1.3 million and €55k, respectively. Foreign
exchange profits mainly related to changes in the period in EUR and USD
conversion rates, as all sales are cashed and occasionally held in USD.
The following table summarises the movement in key currencies versus the EUR:
(Euro 000's) Three month period ended 30 Jun 2023 Three month period Six month period ended 30 Jun 2023 Six month period ended 30 Jun 2022
ended 30
Jun 2022
Average rates for the periods
GBP - EUR 0.8693 0.8485 0.8764 0.8424
USD - EUR 1.0887 1.0647 1.0807 1.0934
Spot rates as at
GBP - EUR 0.8583 0.8582 0.8583 0.8582
USD - EUR 1.0866 1.0387 1.0866 1.0387
6. Sustainability
Corporate Social Responsibility
The second quarter of the year marks further progress for Atalaya and its
wholly owned Fundación Atalaya Riotinto as we continue to carry out several
initiatives to fulfil our social responsibilities.
In this context, the neighbouring municipalities have proposed various
projects to be funded by the Foundation, as part of the signed partnership
agreement. This agreement aims to provide funding for collaborative efforts to
address social, environmental, and infrastructure challenges. During Q2 2023,
Atalaya has committed to financing the refurbishment of certain streets'
pavement and infrastructure in Nerva. Additionally, in Minas de Riotinto, the
Foundation will support the construction of a public playground and related
facilities. Furthermore, the Foundation will provide funding for several local
projects, including support for NGOs like Athenea and AFA, dedicated to
assisting individuals with disabilities, as well as local social institutions
such as the Centro Cultural de Nerva. The Foundation has also shown support
for local football clubs and contributed to the publication of a book on the
history of Cuenca Minera and its British heritage.
Furthermore, the Foundation has completed the program for local unemployed
individuals: the Third Atalaya Mining Operators Course has finished its
practical sessions, offering comprehensive training on various machinery. The
group of 20 students has now commenced a two-month internship period with the
Riotinto Mine's principal contractors. This hands-on experience will include
activities like blasting and hauling, alongside formal qualifications for the
participants. The previous program was a success, with nearly half of the
participants now employed by different companies.
Health and Safety
The results for the first six months of 2023, compared to the same period in
2022, show similar figures for the Severity Index (0.07). However, there has
been an increase in the Frequency Index to 5.79, with one of the accidents
classified as a major accident.
Furthermore, during the quarter, Atalaya conducted an internal audit for
health and safety management in accordance with ISO 45001:2018.
In addition, Atalaya has updated its internal procedure for controlling drugs
and preventing work under the influence of psychoactive substances and has
increased the fine for a positive result.
In terms of Field Leadership activity, 45 individuals have been incorporated
after completing training in June.
The training plan for Atalaya employees is currently focused on basic life
support and the rules of action in the event of health emergencies at the
company. An information program is also scheduled for the summer months, as in
previous years, to address working in high temperatures.
Environment
During the second quarter of 2023, the environmental department continued to
execute actions for environmental monitoring of the company's activities and
the management of the natural environment. Key points from the quarter:
· No environmental incidents were recorded at Atalaya Riotinto
during this quarter.
· A total rainfall of 65.3 l/m(2) was recorded in Q2 2023, which
was approximately 19% higher than the same period in the previous year. The
total rain collected for the hydrological year (October 2022 to September
2023) was 405.7 l/m2, which is 10% more than the rainfall recorded in the
previous hydrological year during the same period.
· On 18 April 2023, the substantial modification of the Unified
Environmental Authorization (Environmental permit) was granted.
· Mandatory reports were submitted to the Environmental
Administration, including the Annual report of air quality in nearby towns
(Minas de Riotinto, La Dehesa, and Nerva) and the Annual Water Balance Report.
· Additional measures from the action plan against dust continued
to be implemented, including intensified periodic irrigation, new coordination
measures, and comprehensive monitoring of the emissions generated in the
operation.
· All regular internal controls of diffuse emissions into the
atmosphere have been conducted, and the results are within the limit values
(waiting for June results). Furthermore, Annual External Control, Point, and
Diffuse Emissions monitoring were carried out in May, with results still
pending. The rest of the periodic and mandatory controls have been carried out
without incidents. Additionally, several reports were submitted to the
Administration bodies during the quarter.
· Daily environmental inspections were performed, with a focus on
chemical storage and handling, housekeeping, waste management, uncontrolled
releases, and environmentally friendly practices conducted by ARM's and
contractors' personnel. Regular inspections of dust control and drainage
systems were also carried out. A total of 77 inspections were conducted during
the second quarter, covering the plant, mine area, and the contractors' camps.
7. Risk Factors
Due to the nature of Atalaya's business in the mining industry, the Group is
subject to various risks that could materially impact the future operating
results and could cause actual events to differ materially from those
described in forward-looking statements relating to Atalaya. Readers are
encouraged to read and consider the risk factors detailed in Atalaya's
audited, consolidated financial statements for the year ended 31 December
2022.
The Company continues to monitor the principal risks and uncertainties that
could materially impact the Company's results and operations, including the
areas of increasing uncertainty such as inflationary pressure on goods and
services required for the business and geopolitical developments in Ukraine.
8. 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
2022.
As at 30 June 2023, there are no significant changes in critical accounting
policies or estimates to those applied in 2022.
9. Other Information
Additional information about Atalaya Mining Plc. is available at
www.atalayamining.com (http://www.atalayamining.com)
Atalaya will audit the Financial Statements for the period ended 30 June 2023
and the audited financial statements will be published on Atalaya's website in
due course.
Unaudited interim condensed consolidated financial statements on subsequent
pages.
Unaudited Interim Condensed Consolidated Income Statements
(All amounts in Euro thousands unless otherwise stated)
For the period ended 30 June 2023 and 2022
(Euro 000's) Note Three month period ended 30 Jun 2023 Three month period ended 30 Jun 2022 Six month period ended 30 Jun 2023 Six month period ended 30 Jun 2022
Revenue 4 79,051 93,418 170,222 179,669
Operating costs and mine site administrative expenses (57,364) (78,021) (120,291) (132,632)
Mine site depreciation and amortization (9,411) (8,785) (18,173) (16,305)
Gross profit 12,276 6,612 31,758 30,732
Administration and other expenses (3,612) (868) (5,645) (4,451)
Share-based benefits 14 (254) (179) (330) (357)
Exploration expenses (2,069) 88 (3,602) (364)
Care and maintenance expenditure (391) (55) (686) (770)
Operating profit 5,950 5,598 21,495 24,790
Other income 345 286 443 286
Net foreign exchange (loss)/gain 3 1,277 7,521 55 10,094
Net finance income/(costs) 5 3,480 (626) 2,636 (941)
Profit before tax 11,052 12,779 24,629 34,229
Tax 6 (1,848) (930) (4,321) (4,123)
Profit for the period 9,204 11,849 20,308 30,106
Profit for the period attributable to:
- Owners of the parent 7 9,542 12,058 20,911 30,882
- Non-controlling interests (338) (209) (603) (776)
9,204 11,849 20,308 30,106
Earnings per share from operations attributable to equity holders of the
parent during the period:
Basic earnings per share (EUR cents per share) 7 6.8 8.6 15.0 22.1
Fully diluted earnings per share (EUR cents per share) 7 6.6 8.4 14.6 21.7
Profit for the period 9,204 11,849 20,308 30,106
Other comprehensive income that will not be reclassified to profit or loss in
subsequent periods (net of tax):
Change in fair value of financial assets through other comprehensive income (11) (6) (5) (6)
'OCI'
Total comprehensive income for the period 9,193 11,843 20,303 30,100
Total comprehensive income for the period attributable to:
- Owners of the parent 7 9,531 12,052 20,906 30,876
- Non-controlling interests (338) (209) (603) (776)
9,193 11,843 20,303 30,100
The notes on the subsequent pages are an integral part of these Unaudited
Interim Condensed Consolidated Financial Statements.
Unaudited Interim Condensed Consolidated Statement of Financial Position
(All amounts in Euro thousands unless otherwise stated)
As at 31 March 2023 and 2022
(Euro 000's) Note 30 Jun 2023 31 Dec 2022
Assets Unaudited Audited
Non-current assets
Property, plant and equipment 8 366,527 354,908
Intangible assets 9 51,619 53,830
Trade and other receivables 12 21,848 16,362
Non-current financial assets 2.3 1,101 1,101
Deferred tax asset 7,033 7,293
448,128 433,494
Current assets
Inventories 10 38,762 38,841
Trade and other receivables 12 41,341 64,155
Tax refundable 100 100
Other financial assets 2.3 28 33
Cash and cash equivalents 13 112,646 126,448
192,877 229,577
Total assets 641,005 663,071
Equity and liabilities
Equity attributable to owners of the parent
Share capital 14 13,596 13,596
Share premium 14 319,411 319,411
Other reserves 15 70,131 69,805
Accumulated profit 86,650 70,483
489,788 473,295
Non-controlling interests (7,601) (6,998)
Total equity 482,187 466,297
Liabilities
Non-current liabilities
Trade and other payables 16 3,412 2,015
Provisions 17 27,114 24,083
Lease liabilities 19 4,128 4,378
Borrowings 18 12,637 20,768
47,291 51,244
Current liabilities
Trade and other payables 16 70,199 90,022
Lease liabilities 19 504 536
Borrowings 18 31,257 52,595
Dividend payable 11 4,956 -
Current provisions 17 722 952
Current tax liabilities 3,889 1,425
111,527 145,530
Total liabilities 158,818 196,774
Total equity and liabilities 641,005 663,071
The notes on the subsequent pages are an integral part of these Unaudited
Interim Condensed Consolidated Financial Statements.
Atalaya will audit the Financial Statements for the period ended 30 June 2023
and the audited financial statements will be published on Atalaya's website in
due course.
Unaudited Interim Condensed Consolidated Statements of Changes in Equity
(All amounts in Euro thousands unless otherwise stated)
For the period ended 30 June 2023 and 2022
(Euro 000's) Note Share capital Share premium ((1)) Other reserves Accum. Profits Total NCI Total equity
At 1 January 2023 13,596 319,411 69,805 70,483 473,295 (6,998) 466,297
Adjustment prior year - - - (12) (12) - (12)
Opening balance adjusted 13,596 319,411 69,805 70,471 473,283 (6,998) 466,285
Profit for the period - - - 20,911 20,911 (603) 20,308
Change in fair value of financial assets through OCI - - (5) - (5) - (5)
Total comprehensive income - - (5) 20,911 20,906 (603) 20,303
Transactions with owners
Recognition of share-based payments 15 - - 331 - 331 - 331
Other changes in equity - - - 224 224 - 224
Dividends 11 - - - (4,956) (4,956) - (4,956)
At 30 June 2023 13,596 319,411 70,131 86,650 489,788 (7,601) 482,187
(Euro 000's) Note Share capital Share premium ((1)) Other reserves Accum. Profits Total NCI Total equity
At 1 January 2022 13,447 315,916 52,690 58,754 440,807 (4,909) 435,898
Adjustment prior year - - - (53) (53) - (53)
Opening balance adjusted 13,447 315,916 52,690 58,701 440,754 (4,909) 435,845
Profit for the period - - - 30,882 30,882 (776) 30,106
Change in fair value of financial assets through OCI - - (6) - (6) - (6)
Total comprehensive income - - (6) 30,882 30,876 (776) 30,100
Transactions with owners
Issuance of share capital 14 149 3,495 - - 3,644 - 3,644
Recognition of share-based payments 15 - - 12,800 (12,800) - - -
Recognition of depletion factor 15 - - 357 - 357 - 357
Recognition of non-distributable reserve 15 - - 316 (316) - - -
Recognition of-distributable reserve 15 - - 2,726 (2,726) - - -
Other changes in equity - - (292) (1) (293) - (293)
At 30 June 2022 13,596 319,411 68,591 73,740 475,338 (5,685) 469,653
(Euro 000's) Note Share capital Share premium ((1)) Other reserves Accum. Profits Total NCI Total equity
Audited
At 1 January 2022 13,447 315,916 52,690 58,754 440,807 (4,909) 435,898
Adjustment prior year - - - (53) (53) - (53)
Opening balance adjusted 13,447 315,916 52,690 58,701 440,754 (4,909) 435,845
Profit for the period - - - 33,155 33,155 (2,229) 30,926
Change in fair value of financial assets through OCI - - (6) - (6) - (6)
Total comprehensive income - - (6) 33,155 33,149 (2,229) 30,920
Transactions with owners
Issuance of share capital 14 149 3,495 - - 3,644 - 3,644
Recognition of depletion factor 15 - - 12,800 (12,800) - - -
Recognition of share-based payments 15 - - 1,279 - 1,279 - 1,279
Recognition of non-distributable reserve 15 - - 316 (316) - - -
Recognition of distributable reserve 15 - - 2,726 (2,726) - - -
Other changes in equity - - - (432) (432) 140 (292)
Dividends - - - (5,099) (5,099) - (5,099)
At 31 December 2022 13,596 319,411 69,805 70,483 473,295 (6,998) 466,297
((1)) The share premium reserve is not available for distribution
The notes on subsequent pages are an integral part of these Unaudited Interim
Condensed Consolidated Financial Statements.
Unaudited Interim Condensed Consolidated Statement of Cash Flows
(All amounts in Euro thousands unless otherwise stated)
For to the period ended 30 June 2023 and 2022
(Euro 000's) Note Three month period ended 30 Jun 2023 Three month period ended 30 June 2022 Six month period ended 30 Jun 2023 Six month period ended 30 Jun 2022
Cash flows from operating activities
Profit before tax 11,052 12,779 24,629 34,229
Adjustments for:
Depreciation of property, plant and equipment 8 8,236 7,629 15,914 14,118
Amortisation of intangibles 9 1,175 1,156 2,259 2,187
Recognition of share-based payments 15 254 179 330 357
Interest income 5 (4,171) (14) (4,397) (15)
Interest expense 5 684 (238) 1,194 -
Unwinding of discounting on mine rehabilitation provision 17 - 396 553 469
Other provisions 17 234 - 287 -
Net foreign exchange differences 3 (1,277) (7,521) (55) (10,094)
Unrealised foreign exchange loss on financing activities (1,446) (45) (1,850) (1)
Cash inflows from operating activities before working capital changes 14,741 14,321 38,864 41,250
Changes in working capital:
Inventories 10 (3,851) (638) 79 (13,666)
Trade and other receivables 12 9,893 (13,128) 17,328 (7,951)
Trade and other payables 16 347 (5,966) (20,647) 3,694
Provisions 17 (146) - (294)
Cash flows from operations 20,984 (5,411) 35,330 23,327
Tax paid (1,406) (1,261) (2,873) (1,458)
Interest on leases liabilities 5 (6) 2 (13) (3)
Interest paid 5 (684) (246) (1,194) (484)
Net cash from operating activities 18,888 (6,916) 31,250 21,382
Cash flows from investing activities
Purchase of property, plant and equipment 9 (11,678) (18,781) (20,523) (26,032)
Purchase of intangible assets 10 (17) (1,004) (48) (1,306)
Interest received 5 3,766 14 3,831 15
Net cash used in investing activities (7,929) (19,771) (16,740) (27,323)
Cash flows from financing activities
Lease payments 19 (144) (155) (295) (315)
Net (Repayments) from borrowings 18 (18,792) 17,957 (28,072) 12,135
Proceeds from issuance of shares 14 - 39 - 3,643
Net cash from financing activities (18,936) 17,841 (28,367) 15,463
Net (decrease) / increase in cash and cash equivalents (7,977) (8,846) (13,857) 9,522
Net foreign exchange difference 3 1,277 7,521 55 10,094
Cash and cash equivalents:
At beginning of the period 119,346 128,458 126,448 107,517
At end of the period 112,646 127,133 112,646 127,133
The notes on the subsequent pages are an integral part of these Unaudited
Interim Condensed Consolidated Financial Statements.
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
(All amounts in Euro thousands unless otherwise stated)
For the period ended 30 June 2023 and 2022
1. Incorporation and summary of business
Atalaya Mining Plc (the "Company") was incorporated in Cyprus on 17 September
2004 as a private company with limited liability under the Companies Law, Cap.
113 and was converted to a public limited liability company on 26 January
2005. Its registered office is at 1 Lampousa Street, Nicosia, Cyprus.
The Company was listed on AIM of the London Stock Exchange in May 2005 under
the symbol ATYM. The Company continued to be listed on AIM as at 30 June 2022.
On 20 February 2023, Atalaya announced that applied a voluntary delisting of
its ordinary shares from the Toronto Stock Exchange (the "TSX"). Ordinary
shares in the Company continue to trade on the AIM market of the London Stock
Exchange under the symbol "ATYM". Delisting from the TSX took effect at the
close of trading on 20 March 2023. Furthermore, Atalaya ceased to be a
reporting issuer in Canadian jurisdictions on 26 June 2023.
Additional information about Atalaya Mining Plc is available at
www.atalayamining.com (http://www.atalayamining.com) as per requirement of AIM
rule 26.
Change of name and share consolidation
Following the Company's Extraordinary General Meeting ("EGM") on 13 October
2015, the change of name from EMED Mining Public Limited to Atalaya Mining Plc
became effective on 21 October 2015. On the same day, the consolidation of
ordinary shares came into effect, whereby all shareholders received one new
ordinary share of nominal value Stg £0.075 for every 30 existing ordinary
shares of nominal value Stg £0.0025.
Principal activities
Atalaya is a European mining and development company. The strategy is to
evaluate and prioritise metal production opportunities in several
jurisdictions throughout the well-known belts of base and precious metal
mineralisation in Spain, elsewhere in Europe and Latin America.
The Group has interests in four mining projects: Proyecto Riotinto, Proyecto
Touro, Proyecto Masa Valverde and Proyecto Ossa Morena. In addition, the Group
has an earn-in agreement to acquire three investigation permits at Proyecto
Riotinto 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 East
In December 2020, Atalaya entered into a Memorandum of Understanding with a
local private Spanish company to acquire a 100% beneficial interest in three
investigation permits (known as Peñas Blancas, Cerro Negro and Herreros
investigation permits), which cover approximately 12,368 hectares and are
located immediately east of Proyecto Riotinto.
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. In Q3 2022 Atalaya increased its
ownership interest in POM to 99.9%, up from 51%, following completion of a
capital increase that will fund exploration activities.
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 30 June 2023 have been prepared in accordance with International
Accounting Standard 34: Interim Financial Reporting. IFRS comprise the
standard issued by the International Accounting Standard Board ("IASB"), and
IFRS Interpretations Committee ("IFRICs") as issued by the IASB. Additionally,
the unaudited interim condensed consolidated financial statements have also
been prepared in accordance with the IFRS as adopted by the European Union
(EU), using the historical cost convention and have been prepared on a
historical cost basis except for the revaluation of certain financial
instruments that are measured at fair value at the end of each reporting
period, as explained below.
These unaudited interim condensed consolidated financial statements include
the financial statements of the Company and its subsidiary undertakings. They
have been prepared using accounting bases and policies consistent with those
used in the preparation of the consolidated financial statements of the
Company and the Group for the year ended 31 December 2022. 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 2022.
(b) Going concern
These unaudited condensed interim consolidated financial statements have been
prepared based on accounting principles applicable to a going concern which
assumes that the Group will realise its assets and discharge its liabilities
in the normal course of business. Management has carried out an assessment of
the going concern assumption and has concluded that the Group will generate
sufficient cash and cash equivalents to continue operating for the next twelve
months.
Management continues to monitor the impact of geopolitical developments.
Currently no significant impact is expected in the operations of the Group.
2.2 New standards, interpretations and amendments adopted by the Group
The accounting policies adopted in the preparation of the unaudited condensed
interim consolidated financial statements are consistent with those followed
in the preparation of the Group's annual consolidated financial statements for
the year ended 31 December 2022, except for the adoption of new standards
effective as of 1 January 2023. 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 2023, but
do not have a material impact on the unaudited condensed interim consolidated
financial statements of the Group.
IFRS 17 Insurance Contracts
In May 2017, the IASB issued IFRS 17 Insurance Contracts, a comprehensive new
accounting standard for insurance contracts covering recognition and
measurement, presentation and disclosure. IFRS 17 replaces IFRS 4 Insurance
Contracts that was issued in 2005. IFRS 17 applies to all types of insurance
contracts (i.e., life, non-life, direct insurance and re-insurance),
regardless of the type of entities that issue them, as well as to certain
guarantees and financial instruments with discretionary participation
features; a few scope exceptions will apply. The overall objective of IFRS 17
is to provide an accounting model for insurance contracts that is more useful
and consistent for insurers. In contrast to the requirements in IFRS 4, which
are largely based on grandfathering previous local accounting policies, IFRS
17 provides a comprehensive model for insurance contracts, covering all
relevant accounting aspects. IFRS 17 is based on a general model, supplemented
by:
· A specific adaptation for contracts with direct participation
features (the variable fee approach)
· A simplified approach (the premium allocation approach) mainly
for short-duration contracts
The amendments had no impact on the Group's unaudited condensed interim
consolidated financial statements.
Definition of Accounting Estimates - Amendments to IAS 8
The amendments to IAS 8 clarify the distinction between changes in accounting
estimates, and changes in accounting policies and the correction of errors.
They also clarify how entities use measurement techniques and inputs to
develop accounting estimates.
The amendments had no impact on the Group's unaudited condensed interim
consolidated financial statements.
Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice
Statement 2
The amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality
Judgements provide guidance and examples to help entities apply materiality
judgements to accounting policy disclosures. The amendments aim to help
entities provide accounting policy disclosures that are more useful by
replacing the requirement for entities to disclose their 'significant'
accounting policies with a requirement to disclose their 'material' accounting
policies and adding guidance on how entities apply the concept of materiality
in making decisions about accounting policy disclosures.
The amendments had no impact on the Group's unaudited condensed interim
consolidated financial statements. but are expected to affect the accounting
policy disclosures in the Group's annual consolidated financial statements.
Deferred Tax related to Assets and Liabilities arising from a Single
Transaction - Amendments to IAS 12
The amendments to IAS 12 Income Tax narrow the scope of the initial
recognition exception, so that it no longer applies to transactions that give
rise to equal taxable and deductible temporary differences such as leases and
decommissioning liabilities. The amendments had no impact on the Group's
unaudited condensed interim consolidated financial statements.
2.3 Fair value estimation
The fair values of the Group's financial assets and liabilities approximate
their carrying amounts at the reporting date.
The fair value of financial instruments traded in active markets, such as
publicly traded trading and other financial assets is based on quoted market
prices at the reporting date. The quoted market price used for financial
assets held by the Group is the current bid price. The appropriate quoted
market price for financial liabilities is the current ask price.
The fair value of financial instruments that are not traded in an active
market is determined by using valuation techniques. The Group uses a variety
of methods, such as estimated discounted cash flows, and makes assumptions
that are based on market conditions existing at the reporting date.
Fair value measurements recognised in the consolidated statement of financial
position
The following table provides an analysis of financial instruments that are
measured subsequent to initial recognition at fair value, Grouped into Levels
1 to 3 based on the degree to which the fair value is observable.
· Level 1 fair value measurements are those derived from quoted
prices (unadjusted) in active markets for identical assets or liabilities.
· Level 2 fair value measurements are those derived from inputs
other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly (i.e. as prices) or indirectly (i.e.
derived from prices).
· Level 3 fair value measurements are those derived from valuation
techniques that include inputs for the asset or liability that are not based
on observable market data (unobservable inputs).
2.3 Fair value estimation
Financial assets or liabilities Level 1 Level 2 Level 3 Total
(Euro 000's)
30 Jun 2023
Other financial assets
Financial assets at FV through OCI 28 - 1,101 1,129
Trade and other receivables
Receivables (subject to provisional pricing) - 8,787 - 8,787
Total 28 8,797 1,101 9,916
31 Dec 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
2.4 Critical accounting estimates and judgements
The preparation of the unaudited interim condensed consolidated financial
statements require management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities, and the accompanying disclosures, and the disclosure of
contingent liabilities at the date of the consolidated financial statements.
Estimates and assumptions are continually evaluated and are based on
management's experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances. Uncertainty
about these assumptions and estimates could result in outcomes that require a
material adjustment to the carrying amount of assets or liabilities affected
in future periods.
Provisions are recognised when the Group has a present legal or constructive
obligation as a result of past events, it is probable that an outflow of
resources will be required to settle the obligation, and a reliable estimate
of the amount can be made. If the effect of the time value of money is
material, provisions are discounted using a current pre-tax rate that
reflects, where appropriate, the risks specific to the liability. Where
discounting is used, the increase in the provision due to the passage of time
is recognised as a finance cost.
A full analysis of critical accounting estimates and judgements is set out in
Note 3.3 of the 2022 audited financial statements.
3. Business and geographical segments
Business segments
The Group has only one distinct business segment, being that of mining
operations, which include mineral exploration and development.
Copper concentrates produced by the Group are sold to three off-takers as per
the relevant offtake agreements. In addition, the Group 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 arm's length basis in a similar manner
to transaction with third parties. Accounting policies used by the Group in
different locations are the same as those contained in Note 2.
(Euro 000's) Cyprus Spain Other Total
Three month period ended 30 Jun 2023
Revenue - from external customers 7,283 71,768 - 79,051
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) 1,964 13,759 (17) 15,706
Depreciation/amortisation charge - (9,411) - (9,411)
Net foreign exchange gain (171) 1,448 - 1,277
Finance income 131 4,039 - 4,170
Finance cost - (690) - (690)
Profit before tax 1,924 9,145 (17) 11,052
Tax (820) (1,028) - (1,848)
Profit/(loss) for the period 1,104 8,117 (17) 9,204
Six month period ended 30 Jun 2023
Revenue - from external customers 13,872 156,350 - 170,222
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) 5,821 34,307 (17) 40,111
Depreciation/amortisation charge - (18,173) - (18,173)
Net foreign exchange gain (457) 512 - 55
Finance income 201 4,195 - 4,396
Finance cost - (1,760) - (1,760)
Profit/(loss) before tax 5,565 19,081 (17) 24,629
Tax (1,589) (2,732) - (4,321)
Profit/(loss) for the period 3,976 16,349 (17) 20,308
Total assets 76,642 539,615 24,748 641,005
Total liabilities (7,928) (150,890) - (158,818)
Depreciation of property, plant and equipment - 15,914 - 15,914
Amortisation of intangible assets - 2,259 - 2,259
Total net additions of non-current assets - 37,343 - 37,343
(Euro 000's) Cyprus Spain Other Total
Three month period ended 30 Jun 2022
Revenue - from external customers 5,910 87,508 - 93,418
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) 3,352 11,324 (7) 14,669
Depreciation/amortisation charge - (8,785) - (8,785)
Net foreign exchange loss 4,146 3,375 - 7,521
Finance income - 14 - 14
Finance cost - (640) - (640)
Profit before tax 7,498 5,288 (7) 12,779
Tax (892) (38) - (930)
Profit for the period 6,606 5,250 (7) 11,849
Six month period ended 30 Jun 2022
Revenue - from external customers 17,740 161,929 - 179,669
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) 12,319 29,076 (14) 41,381
Depreciation/amortisation charge - (16,305) - (16,305)
Net foreign exchange gain 5,316 4,778 - 10,094
Finance income - 15 - 15
Finance cost - (956) - (956)
Profit/(loss) before tax 17,635 16,608 (14) 34,229
Tax (1,916) (2,207) - (4,123)
Profit for the period 15,719 14,401 (14) 30,106
Total assets 85,742 553,321 1,175 640,238
Total liabilities (3,973) 133,932 (300,544) (170,585)
Depreciation of property, plant and equipment - (14,188) - (14,188)
Amortisation of intangible assets - (2,187) - (2,187)
Total net additions of non-current assets - 39,645 - 39,645
Revenue represents the sales value of goods supplied to customers; net of
value added tax. The following table summarises sales to customers with whom
transactions have individually exceeded 10.0% of the Group's revenues.
(Euro 000's) Six month period ended 30 Jun 2023 Six month period ended 30 Jun 2022
Segment €'000 Segment €'000
Offtaker 1 Copper 36,667 Copper 43,005
Offtaker 2 Copper 39,553 Copper 60,566
Offtaker 3 Copper 93,985 Copper 76,086
4. Revenue
(Euro 000's) Three month period ended 30 Jun 2023, Three month period ended 30 Jun 2022 Six month period ended 30 Jun 2023 Six month period ended 30 Jun 2022
Revenue from contracts with customers ((1)) 85,602 103,909 173,915 185,678
Fair value losses relating to provisional pricing within sales ((2)) (6,551) (10,491) (3,693) (6,009)
Total revenue 79,051 93,418 170,222 179,669
All revenue from copper concentrate is recognised at a point in time when the
control is transferred. Revenue from freight services is recognised over time
as the services are provided.
((1) ) Included within Q2 2023 and H1 2023 revenues are
transaction prices, which relate to the freight services provided by the Group
to the customers arising from the sales of copper concentrate under CIF
incoterm, of €2.1 million (Q2 2022: €2.9 million) and €4.5 million (H1
2022: €4.3 million), respectively.
((2) ) Provisional pricing impact represents the change in fair
value of the embedded derivative arising on sales of concentrate.
5. Net Finance Income/(Costs)
(Euro 000's) Three month period ended 30 Jun 2023 Three month period ended 30 June 2022 Six month period ended 30 Jun 2023 Six month period ended 30 Jun 2022
Interest expense
Other interest (684) (246) (1,194) (484)
Interest on lease liabilities (6) 2 (13) (3)
Unwinding of discount on mine rehabilitation provision (Note 17) - (396) (553) (469)
Interest income
Financial interests ((1)) 340 14 566 15
Other received interests ((2)) 3,830 - 3,830 -
3,480 (626) 2,636 (941)
((1) ) Interest income relates to interest received on bank
balances.
((2) ) Interest income comprise mainly the interest received of
€3.5 million as a result of the agreement reached with Astor in May 2023.
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 30 Jun 2023 Three months ended 30 Jun 2022 Six months ended 30 Jun 2023 Six months ended
30 Jun 2022
(Euro 000's)
Income taxes
Current income tax expense (1,848) (930) (4,321) (4,123)
Income tax expense recognised in statement of profit and loss
(1,848) (930) (4,321) (4,123)
7. Earnings per share
The calculation of the basic and fully diluted loss per share attributable to
the ordinary equity holders of the Company is based on the following data:
Three months ended 30 Jun 2023 Three months ended 30 Jun 2022 Six months ended 30 Jun 2023 Six months ended
30 Jun 2022
(Euro 000's)
Profit attributable to equity holders of the parent 9,542 12,058 20,911 30,882
Weighted number of ordinary shares for the purposes of basic earnings per 139,880 139,859 139,880 139,634
share (000's)
Basic profit per share (EUR cents/share) 6.8 8.6 15.0 22.1
Weighted number of ordinary shares for the purposes of fully diluted earnings 144,028 143,736 143,705 142,235
per share (000's)
Fully diluted profit per share (EUR cents/share) 6.6 8.4 14.6 21.7
At 30 June 2023 there are nil warrants (Note 14) and 4,848,500 options (Note
14) (2022: nil warrants and 3,543,500 options) which have been included when
calculating the weighted average number of shares for 2022.
8. Property, plant and equipment
(Euro 000's) Land and buildings Right-of-use assets Plant and machinery Assets under construction ((1)) Deferred mining costs ((2)) Other assets ((3)) Total
Cost
At 1 January 2022 65,003 7,076 283,346 22,860 51,667 801 430,753
Additions 2,383 - 621 22,334 691 - 26,029
Reclassifications 15,300 - 4,979 (20,279) - - -
Increase in rehab. Provision 1,107 - - - - - 1,107
Advances 3 - - - - - 3
At 30 June 2022 83,796 7,076 288,946 24,915 52,358 801 457,892
Additions - - 641 27,139 - - 27,780
Increase in rehab. Provision 620 - - - - - 620
Reclassifications - - 1,748 (1,819) - 71 -
Advances 100 - - - - - 100
Write-off (4,190) - - - - - (4,190)
At 31 December 2022 80,326 7,076 291,335 50,235 52,358 872 482,202
Additions 36 - 4,525 15,825 4,572 24 24,982
Increase in rehab. Provision 2,541 - - - - - 2,541
Reclassifications - - 18,413 (18,413) - - -
At 30 June 2023 82,913 7,076 314,273 47,647 56,930 896 509,735
Depreciation
At 1 January 2022 16,026 1,546 67,991 - 11,380 714 97,657
Charge for the period 2,157 158 9,994 - 1,797 12 14,118
At 30 June 2022 18,183 1,704 77,985 - 13,177 726 111,775
Charge for the period 2,271 294 11,197 - 1,744 13 15,519
At 31 December 2022 20,454 1,998 89,182 - 14,921 739 127,294
Charge for the period 2,057 278 11,717 - 1,855 7 15,914
At 30 June 2023 22,511 2,276 100,899 - 16,776 746 143,208
Net book value
At 30 June 2023 60,402 4,800 213,374 47,647 40,154 150 366,527
At 31 December 2022 59,872 5,078 202,153 50,235 37,437 133 354,908
( )
((1)) Assets under construction at 30 June 2023 were €47.6 million (2022:
€24.9 million) which include sustaining capital expenditures, tailings dams
project, ELIX plant and solar plant.
((2)) Stripping costs
((3)) Includes motor vehicles, furniture, fixtures and office equipment which
are depreciated over 5-10 years.
((4)) Increase in lands related to the rehabilitation provision
The above fixed assets are mainly located in Spain.
9. Intangible assets
(Euro 000's) Permits Licences, R&D and software Total
Cost
At 1 January 2022 80,358 8,595 88,953
Additions 1,306 - 1,306
At 30 June 2022 81,664 8,595 90,259
Additions (409) 47 (362)
At 31 December 2022 81,255 8,642 89,897
Additions 48 - 48
At 30 June 2023 81,303 8,642 89,945
Amortisation
At 1 January 2022 23,214 8,371 31,585
Charge for the period 2,155 32 2,187
At 30 June 2022 25,369 8,403 33,772
Charge for the period 2,258 37 2,295
At 31 December 2022 27,627 8,440 36,067
Charge for the period 2,234 25 2,259
At 30 June 2023 29,861 8,465 38,326
Net book value
At 30 June 2023 51,442 177 51,619
At 31 December 2022 53,628 202 53,830
Increase of permits in 2023 related to the capitalisation of Proyecto Masa
Valverde.
The ultimate recovery of balances carried forward in relation to areas of
interest or all such assets including intangibles is dependent on successful
development, and commercial exploitation, or alternatively the sale of the
respective areas.
The Group conducts impairment testing on an annual basis unless indicators of
impairment are not present at the reporting date.
10. Inventories
(Euro 000's) 30 Jun 2023 31 Dec 2022
Finished products 8,197 4,547
Materials and supplies 27,158 31,330
Work in progress 3,407 2,964
Total inventories 38,762 38,841
As of 30 June 2023, copper concentrate produced and not sold amounted to 7,291
tonnes (31 Dec 2022: 3,529 tonnes). Accordingly, the inventory for copper
concentrate was €8.2 million (31 Dec 2022: €4.5 million).
Materials and supplies relate mainly to machinery spare parts. Work in
progress represents ore stockpiles, which is ore that has been extracted and
is available for further processing.
11. Dividends payable
Cash dividends payable at the end of the period:
(Euro 000's) 30 Jun 2023 31 Dec 2022
Dividend payable(*) 4,956 -
Fully paid ordinary shares carry one vote per share and carry the right to
dividends.
(*) In March 2023, the Board of Directors proposed a final dividend for 2022
of US$0.0385 per ordinary share, which was equivalent to approximately 3.15
pence per share. Following the approval of Resolution 10 by the Company's
shareholders at its 2023 Annual General Meeting, which took place on 28 June
2023, the 2022 final dividend was paid on 8 August 2023 (Note 26).
12. Trade and other receivables
(Euro 000's) 30 Jun 2023 31 Dec 2022
Non-current
Deposits 310 256
Loans 18,848 12,865
Other non-current receivables 2,690 3,241
21,848 16,362
Current
Trade receivables at fair value - subject to provisional pricing 7,066 14,757
Trade receivables from shareholders at fair value - subject to provisional 1,721 12,800
pricing (Note 22.3)
Other receivables from related parties at amortised cost (Note 22.3) 56 56
Deposits 37 37
VAT receivables 25,690 28,856
Tax advances 1,109 9
Prepayments 3,621 5,845
Other current assets 2,041 1,795
41,341 64,155
Allowance for expected credit losses - -
Total trade and other receivables 63,189 80,517
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 2022) as a
collateral for bank guarantees, which was recorded as restricted cash (or
deposit).
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 in E-LIX System
facilities. Amounts withdrawn bears interest at 2%.
13. Cash and cash equivalents
(Euro 000's) 30 Jun 2023 31 Dec 2022
Unrestricted cash and cash equivalents at Group level 99,700 108,550
Unrestricted cash and cash equivalents at Operation level 12,946 17,567
Restricted cash and cash equivalents at Operation level - 331
Consolidated cash and cash equivalents 112,646 126,448
Restricted cash amounted at 31 December 2022 to €0.3 million was held in
escrow, which represented funds utilized by the Company to cover interest
payments of €9.6 million on 7 and 8 April 2022 (following the trial in
February and March 2022) and €1.1 million on 16 May 2022 to Astor under the
Master Agreement. However, due to the settlement reached with Astor on 17 May
2023 whereby Astor agreed to repay €3.5 million of interest previously paid
to it to finalise the litigation, the previously restricted cash has now been
released and reversed.
Cash and cash equivalents denominated in the following currencies:
(Euro 000's) 30 Jun 2023 31 Dec 2022
Euro - functional and presentation currency 81,570 84,146
Great Britain Pound 71 895
United States Dollar 31,005 41,407
Consolidated cash and cash equivalents 112,646 126,448
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 Shares Share Capital Share premium Total
Issue Date Price (£) Details 000's €'000 €'000 €'000
31 December 2021/1 January 2022 138,236 13,447 315,916 329,363
22-Jan-22 1.44 Exercised share options ((b)) 314 28 512 540
22-Jan-22 2.015 Exercised share options ((b)) 321 29 746 775
22-Jan-22 2.045 Exercised share options ((b)) 400 36 941 977
22-Jan-22 1.475 Exercised share options ((b)) 451 42 754 796
22-Jan-22 3.09 Exercised share options ((b)) 135 12 505 517
23-Jun-22 1.475 Exercised share options ((a)) 23 2 37 39
31-Dec-22 139,880 13,596 319,411 333,007
30-Jun-23 139,880 13,596 319,411 333,007
Authorised capital
The Company's authorised share capital is 200,000,000 ordinary shares of Stg
£0.075 each.
Issued capital
2023
No share issuance has taken place thus far in 2023.
The Company's share capital at 30 June 2023 is 139,879,209 ordinary shares of
Stg £0.075 each.
2022
a) On 23 June 2022, the Company announced that it has issued 22,500
ordinary shares of 7.5p in the Company pursuant to an exercise of share
options by an employee.
b) On 26 January 2022, the Company announced that it was notified that
PDMRs and senior employees exercised a total of 1,350,000 and 270,750 options.
In general, option agreements contain provisions adjusting the exercise price
in certain circumstances including the allotment of fully paid ordinary shares
by way of a capitalisation of the Company's reserves, a subdivision or
consolidation of the ordinary shares, a reduction of share capital and offers
or invitations (whether by way of rights issue or otherwise) to the holders of
ordinary shares.
Details of share options outstanding as at 30 June 2023:
Grant date Expiry date Exercise price £ Share options
29 May 2019 28 May 2024 2.015 666,500
30 June 2020 29 June 2030 1.475 516,000
24 June 2021 23 June 2031 3.090 1,016,000
26 January 2022 25 January 2032 4.160 120,000
22 June 2022 30 June 2027 3.575 1,225,000
22 May 2023 30 May 2028 3.270 1,305,000
Total 4,848,500
Weighted average Share options
exercise price £
At 1 January 2023 2.857 3,543,500
Granted during the year 3.270 1,305,000
30 June 2023 2.968 4,848,500
Warrants
As at 30 June 2023 and 2022 there were no warrants.
15. Other reserves
(Euro 000's) FV reserve of financial assets at FVOCI ((2)) Non-Distributable reserve ((3)) Total
Share option Bonus share Depletion factor ((1)) Distributable
reserve ((4))
At 1 January 2022 9,086 208 24,978 (1,147) 8,000 11,565 52,690
Recognition of share- based payments 357 - - - - - 357
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 - - - (6) - - (6)
Other changes in reserves - - - - - (292) (292)
At 30 June 2022 9,443 208 37,778 (1,153) 8,316 13,999 68,591
Recognition of share-based payments 922 - - - - - 922
Other changes in reserves - - - - - 292 292
Change in fair value of financial assets at fair value through OCI - - - - - - -
At 31 December 2022 10,365 208 37,778 (1,153) 8,316 14,291 69,805
Recognition of share-based payments 330 - - - - - 330
Change in fair value of financial assets at fair value through OCI - - - (4) - - (4)
At 30 June 2023 10,695 208 37,778 (1,157) 8,316 14,291 70,131
((1) ) Depletion factor reserve
At 30 June 2023, the Group has recognised €nil million (H1 2022: disposed
€12.8 million) as a depletion factor reserve as per the Spanish Corporate
Tax Act.
((2) ) Fair value reserve of financial assets at FVOCI
The Group has elected to recognise changes in the fair value of certain
investments in equity securities in OCI, as explained in (1) above. These
changes are accumulated within the FVOCI reserve within equity. The Group
transfers amounts from this reserve to retained earnings when the relevant
equity securities are derecognised.
((3) ) Non-distributable reserve
To comply with Spanish Law, the Group needed to record a reserve of profits
generated equal to a 10% of profit/(loss) for the year until 20% of share
capital is reached.
((4) ) Distributable reserve
The Group reclassified at least 10% of the profit of 2022 to distributable
reserves.
16. Trade and other payables
(Euro 000's) 30 Jun 2023 31 Dec 2022
Non-current
Other non-current payables 2,000 2,000
Government grant 1,412 15
3,412 2,015
Current
Trade payables 65,896 85,038
Accruals 3,547 3,322
VAT payables - 259
Other 756 1,403
70,199 90,022
Other non-current payables are related with the acquisition of Atalaya Ossa
Morena SL (former Rio Narcea Nickel SL).
Trade payables are mainly for the acquisition of materials, supplies and other
services. These payables do not accrue interest and no guarantees have been
granted. The fair value of trade and other payables approximate their book
values. Trade payables are non-interest-bearing and are normally settled on
60-day terms.
17. Provisions
(Euro 000's) Other provisions Legal costs Rehabilitation costs Total costs
At 1 January 2022 - 279 26,299 26,578
Additions - - 1,033 1,033
Revision of provision - - 74 74
Finance cost - - 469 469
At 30 June 2022 - 279 27,875 28,154
Additions - 30 - 30
Reclassification 1,435 - - 1,435
Used of provision - (10) (155) (165)
Reversal of provision - (73) (3,497) (3,570)
Finance cost - - (849) (849)
At 31 December 2022 1,435 226 23,374 25,035
Used of provision - - (294) (294)
Revision of provision - - 2,542 2,542
Finance cost - - 553 553
At 30 June 2023 1,435 226 26,175 27,836
(Euro 000's) 30 Jun 2023 31 Dec 2022
Non-current 27,114 24,083
Current 722 952
Total 27,836 25,035
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 30 June 2023 was 3.41% (2022: 3.41%), which is the 15-year
Spain Government Bond rate from 2017 to 2021. An inflation rate of 1%-5.70% is
applied on annual basis.
Legal provision
The Group has been named a defendant in several legal actions in Spain, the
outcome of which is not determinable as at 30 June 2023. Management has
individually reviewed each case and established a provision of €0.2 million
as of 30 June 2023 (€0.2 million at 31 December 2022) for these claims,
which has been reflected in these unaudited condensed interim consolidated
financial statements.
18. Borrowings
(Euro 000's) 30 Jun 2023 31 Dec 2022
Non-current borrowings
Credit facilities 12,637 20,768
12,637 20,768
Current borrowings
Credit facilities 31,257 52,595
31,257 52,595
The Group had credit approval for facilities totalling €128.0 million
(€119.6 million at 31 December 2022). During 2023, Atalaya drew down some of
its existing credit facilities to financing the construction of 50 MW solar
plant (payable amount of €17.6 million at 30 June 2023) and in 2022 to pay
the Deferred Consideration.
Borrowing with fixed interest rates range from 1.60% to 2.45% with an average
fixed interest rate of 1.95%. Margins on borrowing with variable interest
rates, usually 12 months EURIBOR, range from 1.10% to 2.00% with an average
margin of 1.49%.
At 30 June 2023, the Group had used €43.9 million of its facilities and had
undrawn facilities of €84.1 million.
19. Lease liabilities
(Euro 000's) 30 Jun 2023 31 Dec 2022
Non-current
Lease liabilities 4,128 4,378
4,128 4,378
Current
Lease liabilities 504 536
504 536
Lease liabilities
The Group entered into lease arrangements for the renting of land, 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 amounts to €0.3 million (2022: €0.2 million) for the six month
period ended 30 June 2023. The land lease is set for a duration of thirteen
years, with payments due at the beginning of each month, increasing annually
by an average of 1.5%. As of 30 June 2023, the remaining term of this lease is
nine and a half years.
Since the Company acquired 100% of the shares of Cambridge Mineria Espana,
S.L. (renamed to Atalaya Masa Valverde, S.L.U.) in October 2020, a lease
arrangement for a warehouse rent was included. The warehouse lease is
scheduled for a period of thirteen years, with payments due at the beginning
of each month, escalating in accordance with the yearly Spanish consumer price
index. As of 30 June 2023, the remaining term of this lease is eight and a
half years.
(Euro 000's) 30 Jun 2023 31 Dec 2022
Minimum lease payments due:
- Within one year 504 536
- Two to five years 1,943 1,957
- Over five years 2,185 2,421
Present value of minimum lease payments due 4,632 4,914
(Euro 000's) Lease liabilities
At 1 January 2023 4,914
Interest expense 13
Lease payments (295)
At 30 June 2023 4,632
At 30 June 2023
Non-current liabilities 4,128
Current liabilities 504
4,632
20. Acquisition, incorporation and disposal of subsidiaries
There were no acquisitions or incorporation of subsidiaries during the six
month period ended 30 June 2023 and 2022.
21. Winding-up of subsidiaries
There were no operations wound up during the six month period ended 30 June
2023.
On 4 January 2022, the subsidiary EMED Mining Spain, S.L. was wound up.
22. Related party transactions
The following transactions were carried out with related parties:
22.1 Compensation of key management personnel
The total remuneration and fees of Directors (including Executive Directors)
and other key management personnel was as follows:
(Euro 000's) Three month period ended 30 Jun 2023 Three month period ended 30 June 2022 Six month period ended 30 Jun 2023 Six month period ended 30 Jun 2022
Directors' remuneration and fees 255 238 615 496
Directors' bonus ((1)) 163 357 163 357
Share option-based benefits and other benefits to directors 48 64 68 127
Key management personnel fees 154 141 358 282
Key management bonus ((1)) 109 239 109 239
Share option-based and other benefits to key management personnel 48 62 68 123
777 1,101 1,381 1,624
((1) ) These amounts related to the performance bonus for 2022
approved by the Board of Directors of the Company during H1 2023. Director's
bonus relates to the amount approved for the CEO as an executive director and
key management bonus relates to the amount approved for other key management
personnel which are not directors of Atalaya Mining plc.
22.2 Share-based benefits
On 23 May 2023, the Company announced that in accordance with the Company's
Long Term Incentive Plan 2020 which was approved by shareholders at the Annual
General Meeting on 28 June 2023, it has granted 1,305,000 share options to
Persons Discharging Managerial Responsibilities and other management.
The Options expire on 21 May 2028, five years from the deemed date of grant
(22 May 2023), have an exercise price of 327 pence per ordinary share, being
the last mid-market closing price on the grant date, and vest in three equal
tranches, one third on grant and the balance equally on the first and second
anniversary of the grant date.
22.3 Transactions with related parties/shareholders
i) Transaction with shareholders
(Euro 000's) Three month period ended 30 Jun 2023 Three month period ended 30 June 2022 Six month period ended 30 Jun 2023 Six month period ended 30 Jun 2022
Trafigura- Revenue from contracts 21,526 36,590 33,820 44,808
Freight services - - - -
21,526 36,590 33,820 44,808
Gain / (losses) relating provisional pricing within sales 745 (3,197) 2,847 (1,803)
Trafigura - Total revenue from contracts 22,271 33,394 36,667 43,005
ii) Period-end balances with related parties
(Euro 000's) 30 Jun 2023 31 Dec 2022
Receivables from related parties:
Recursos Cuenca Minera S.L. 56 56
Total (Note 12) 56 56
The above balances bear no interest and are repayable on demand.
iii) Period-end balances with shareholders
(Euro 000's) 30 Jun 2023 31 Dec 2022
Trafigura - Debtor balance- subject to provisional pricing 1,721 12,800
Total (Note 12) 1,721 12,800
The above debtor balance arising from sales of goods and other balances bear
no interest and is repayable on demand.
23. Contingent liabilities
Judicial and administrative cases
In the normal course of business, the Group may be involved in legal
proceedings, claims and assessments. Such matters are subject to many
uncertainties, and outcomes are not predictable with assurance. Legal fees for
such matters are expensed as incurred and the Group accrues for adverse
outcomes as they become probable and estimable.
24. Commitments
There are no minimum exploration requirements at Proyecto Riotinto. However,
the Group is obliged to pay local land taxes which currently are approximately
€235,000 per year in Spain and the Group is required to maintain the
Riotinto site in compliance with all applicable regulatory requirements.
In 2012, ARM entered into a 50/50 joint venture with Rumbo to evaluate and
exploit the potential of the class B resources in the tailings dam and waste
areas at Proyecto Riotinto (mainly residual gold and silver in the old gossan
tailings). Under the joint venture agreement, ARM will be the operator of the
joint venture, will reimburse Rumbo for the costs associated with the
application for classification of the Class B resources and will fund the
initial expenditure of a feasibility study up to a maximum of €2.0 million.
Costs are then borne by the joint venture partners in accordance with their
respective ownership interests.
25. Significant events
The 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 12 January 2023, the Company was notified that Allianz Global
Investors GmbH, shareholder of the Company, decreased its voting rights from
4.93% to 3.98%.
· On 20 February 2023, Atalaya announced a voluntary delisting of
its ordinary shares from the Toronto Stock Exchange (the "TSX") which was
effective from the closing of trading on 20 March 2023.
· On 23 February 2023, Atalaya announced the results from a new
preliminary economic assessment ("PEA") for the Cerro Colorado, San Dionisio
and San Antonio deposits at its Proyecto Riotinto operation in Spain.
· On 28 March 2023, Atalaya announced that Proyecto Masa Valverde
was granted the Unified Environmental Authorisation (or in Spanish,
Autorización Ambiental Unificada ("AAU")) by the Junta de Andalucía.
· On 23 May 2023, the Company announced that in accordance with the
Company's Long Term Incentive Plan 2020, it was granted 1,305,000 share
options to Persons Discharging Managerial Responsibilities ("PDMRs") and other
employees.
· On 26 June 2023, the Company announced that the Ontario
Securities Commission, as principal regulator, granted Atalaya's request to
cease to be a reporting issuer in the Canadian Jurisdictions.
26. Events after the Reporting Period
· On 10 July 2023, a PMDR sold 250,000 ordinary shares.
· Following the approval of Resolution 10 by the Company's
shareholders at its 2023 Annual General Meeting, which took place on 28 June
2023, the 2022 Final Dividend of US$0.0385 per ordinary share was paid on 8
August 2023.
· On 9 August 2023, the Company's Board of Directors elected to
declare a 2023 Interim Dividend of US$0.05 per ordinary share, which is
equivalent to approximately 3.9 pence per share.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR PLMPTMTBMBRJRecent news on Atalaya Mining
See all newsREG - Atalaya Mining PLC - Holding(s) in Company
AnnouncementREG - Atalaya Mining PLC - Admission to Trading on the Main Market
AnnouncementREG - Atalaya Mining PLC - Holding(s) in Company
AnnouncementREG - FTSE Russell - Atalaya Mining
AnnouncementREG - Atalaya Mining PLC - Publication of Prospectus
Announcement