REG - Atalaya MiningCopper - 2024 Annual Results
18/03/2025 07:00
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RNS Number : 0213B Atalaya Mining Copper, S.A. 18 March 2025
18 March 2025
Atalaya Mining Copper, S.A.
("Atalaya" or "the Company")
2024 Annual Results
Transition year lays the foundation for key project catalysts in 2025
Atalaya Mining (LSE: ATYM) is pleased to announce its audited consolidated
financial results for the year ended 31 December 2024 ("FY2024" or the
"Period").
Highlights
· Copper production of 46.2 kt with cash costs of $2.92/lb and AISC
of $3.26/lb, highlighting good control of absolute costs
· EBITDA of €66.4 million and cash flows from operating
activities of €53.4 million supported balance sheet during period of
continued investment
· Net cash position of €35.1 million and unsold concentrate
valued at €19.7 million
· Improving sustainability performance, including a reduced lost
time injury frequency rate and lower water and electricity consumption rates
· Proyecto Touro permitting process is advancing following the
award of strategic industrial project status by the Xunta de Galicia in June
2024
· Completed move to Main Market and re-domiciliation to Spain,
which facilitated the pending inclusion in the FTSE All-Share Index
· Final dividend of $0.03/sh proposed, bringing the full year total
to $0.07/sh
· Positive start to year supports copper production outlook of 48 -
52 kt for 2025
o Lower cash costs expected along with further investments in higher grade
deposits such as San Dionisio and Masa Valverde
Q4 2024 and FY2024 Operating Results Summary
Period ended 31 Dec Unit Q4 2024 Q4 2023 FY2024 FY2023
Revenues from operations €k 77,852 85,591 326,797 340,346
Operating costs €k (65,172) (71,703) (260,441) (267,246)
EBITDA €k 12,680 13,888 66,356 73,100
Profit for the period €k 14,922 5,215 32,560 36,663
Basic earnings per share € cents/share 8.7 4.5 22.6 27.7
Dividend per share ((1)) US$/share n/a n/a 0.07 0.09
Cash flows from operating activities €k 11,101 5,715 53,403 64,743
Cash flows used in investing activities €k (16,578) (14,802) (66,073) (50,406)
Cash flows from financing activities €k (19,168) 13,069 (57,261) (18,500)
Net cash position ((2)) €k 35,091 54,320 35,091 54,320
Working capital surplus €k 44,728 68,618 44,728 68,618
Average realised copper price (excluding QPs) US$/lb 4.10 3.78 4.19 3.80
Copper concentrate produced tonnes 69,550 64,414 252,165 249,321
Copper production tonnes 12,078 12,775 46,227 51,667
Cash Cost US$/lb payable 2.79 2.90 2.92 2.79
All-In Sustaining Cost ("AISC") US$/lb payable 3.28 3.16 3.26 3.09
(1) Consists of 2024 Interim Dividend (paid 19 September 2024) and
proposed 2024 Final Dividend, which is subject to approval by shareholders at
the Company's 2025 Annual General Meeting.
(2) Includes restricted cash and bank borrowings at 31 December 2024 and
31 December 2023.
Alberto Lavandeira, CEO, commented:
"We are proud of several key accomplishments that were achieved in 2024
despite the challenges we faced with lower production. In terms of our
operations, we achieved a new annual record for ore processed, exhibited good
control of absolute costs, improved our safety performance and achieved
reductions in our water and electricity consumption rates. Our balance sheet
remains strong and the Board has again proposed a final dividend. At the
corporate level, Atalaya's shares will soon be included in the FTSE All-Share
Index thanks to the completion of our move to the Main Market and our
re-domiciliation to Spain.
We are particularly optimistic about the prospects for 2025. Our operations
have made a positive start to the year, supporting our outlook for higher
full-year production. We expect to make further progress at our projects in
the Riotinto District including San Dionisio and Masa Valverde, which are key
components of our strategy to deliver higher grade material to the plant at
Riotinto.
At Proyecto Touro, permitting continues to advance after being awarded the
status of strategic industrial project by the Xunta de Galicia. We believe
this project will be benchmark in sustainable mining in Europe and a milestone
for Galician industry. We remain confident on the outlook for copper and
believe that the timing for Touro is ideal given significant copper market
deficits are on the horizon."
Results Presentations
Analyst and Investor Presentation
Alberto Lavandeira (CEO) and César Sánchez (CFO) will host a webcast for
analysts and investors today at 9:00 GMT.
To access the SparkLive webcast, please visit:
Atalaya Mining 2024 Annual Results | SparkLive | LSEG
(https://sparklive.lseg.com/AtalayaMining/events/128af107-a273-4b71-bb05-fb99842a2e75/atalaya-mining-2024-annual-results)
Investor Meet Company Presentation
In addition, Alberto Lavandeira and César Sánchez will be holding a live
presentation via the Investor Meet Company platform today at 11:00 GMT.
To access the Investor Meet Company presentation, please visit:
https://www.investormeetcompany.com/companies/atalaya-mining-plc
(https://www.investormeetcompany.com/companies/atalaya-mining-plc)
Management will also answer questions that have been submitted via the
Investor Meet Company dashboard.
Note to Readers
The financial information for the years ended 31 December 2024 and 2023
contained in this document does not constitute statutory accounts. The
financial information for the years ended 31 December 2024 and 2023 has been
extracted from the consolidated financial statements of Atalaya Mining
Copper, S.A. for the year ended 31 December 2024 which have been approved by
the directors on 17 March 2025. The auditor's report on those financial
statements was unqualified.
FY2024 Select Sustainability Highlights
Unit FY2024 FY2023
Work-related injuries (Riotinto employees & contractors) LTIFR 3.33 3.94
Operational water used m(3)/t processed 1.91 2.15
Electricity intensity kWh/t processed 22.66 23.29
Investment in local communities €m 1.0 0.7
Procurement from Spanish suppliers % 93 89
Atalaya continues to make progress towards achieving greater sustainability
across its business activities. We look forward to further improvements in the
years ahead.
For further information, please refer to Atalaya's 2024 Sustainability Report,
which will be published in due course.
Q4 and FY2024 Operating Results Summary
Unit Q4 2024 Q4 2023 FY2024 FY2023
Ore mined tonnes 3,507,203 3,742,814 15,176,009 14,944,638
Waste mined ((1)) tonnes 10,200,079 7,362,657 32,824,156 32,182,904
Ore processed tonnes 3,757,040 4,138,368 15,913,064 15,790,098
Copper grade % 0.41 0.36 0.35 0.38
Copper concentrate grade % 17.37 19.83 18.33 20.72
Copper recovery % 78.15 85.47 83.06 86.62
Copper concentrate produced tonnes 69,550 64,414 252,165 249,321
Copper production tonnes 12,078 12,775 46,227 51,667
Payable copper production tonnes 11,382 12,131 43,706 49,174
Cash Cost US$/lb payable 2.79 2.90 2.92 2.79
All-in Sustaining Cost US$/lb payable 3.28 3.16 3.26 3.09
(1) Represents the Cerro Colorado pit only.
Mining
Ore mined was 3.5 million tonnes in Q4 2024 (Q4 2023: 3.7 million tonnes) and
15.2 million tonnes in FY2024 (FY2023: 14.9 million tonnes).
Waste mined at Cerro Colorado was 10.2 million tonnes in Q4 2024 (Q4 2023: 7.4
million tonnes) and 32.8 million tonnes in FY2024 (FY2023: 32.2 million
tonnes). In addition, waste stripping activities continued at the San Dionisio
area.
Processing
Ore processed was 3.8 million tonnes in Q4 2024 (Q4 2023: 4.1 million tonnes)
and 15.9 million tonnes in FY2024 (FY2023: 15.8 million tonnes), which
represents a new annual throughput record.
Copper grade was 0.41% in Q4 2024 (Q4 2023: 0.36%) and 0.35% in FY2024
(FY2023: 0.38%), with lower full-year grades as a result of pit sequencing.
Copper recovery was 78.15% in Q4 2024 (Q4 2023: 85.47%) and 83.06% in FY2024
(FY2023: 86.62%), with the decrease due to a combination of lower grades and
the characteristics of certain ores.
Production
Copper production was 12,078 tonnes in Q4 2024 (Q4 2023: 12,775 tonnes) and
46,227 tonnes in FY2024 (FY2023: 51,667 tonnes). Production in FY2024 was
below FY2023 as a result of lower copper grades and recoveries, although
higher silver production helped to mitigate the impact on revenues.
On-site copper concentrate inventories were 21,815 tonnes at 31 December 2024
(31 December 2023: 6,722 tonnes).
Copper contained in concentrates sold was 10,271 tonnes in Q4 2024 (Q4 2023:
12,928 tonnes) and 43,609 tonnes in FY2024 (FY2023: 50,808 tonnes).
Cash Cost and AISC Breakdown
$/lb Cu payable Q4 2024 Q4 2023 FY2024 FY2023
Mining 1.05 0.92 1.07 0.86
Processing 0.88 0.84 0.90 0.89
Other site operating costs 0.66 0.67 0.64 0.56
Total site operating costs 2.58 2.44 2.61 2.30
By-product credits (0.34) (0.11) (0.27) (0.09)
Freight, treatment charges and other offsite costs 0.55 0.57 0.58 0.58
Total offsite costs 0.21 0.47 0.30 0.49
Cash Cost 2.79 2.90 2.92 2.79
Cash Cost 2.79 2.90 2.92 2.79
Corporate costs 0.11 0.09 0.10 0.08
Sustaining capital (excluding tailings expansion) 0.03 0.02 0.05 0.03
Capitalised stripping costs ((1)) 0.27 0.08 0.11 0.12
Other costs 0.09 0.06 0.09 0.07
AISC 3.28 3.16 3.26 3.09
(1) Represents the Cerro Colorado pit only.
Note: Some figures may not add up due to rounding.
Cash costs were $2.79/lb payable copper in Q4 2024 (Q4 2023: $2.90/lb) and
$2.92/lb payable copper in FY2024 (FY2023: $2.79/lb), with the increase mainly
due to lower copper production, although this impact was partly offset by
higher silver credits and good control of absolute costs.
AISC were $3.28/lb payable copper in Q4 2024 (Q4 2023: $3.16/lb) and $3.26/lb
payable copper in FY2024 (FY2023: $3.09/lb), with the increase in full-year
costs due to the same factors that impacted cash costs. AISC excludes
investments in the tailings dam (consistent with prior reporting) and waste
stripping at the San Dionisio area.
Q4 and FY2024 Financial Results Highlights
Income Statement
Revenues were €77.9 million in Q4 2024 (Q4 2023: €85.6 million) and
€326.8 million in FY2024 (FY2023: €340.3 million), as a result of lower
copper sales offsetting higher copper prices.
Operating costs were €65.2 million in Q4 2024 (Q4 2023: €71.7 million) and
€260.4 million in FY2024 (FY2023: €267.2 million), highlighting good
control of absolute costs.
EBITDA was €12.7 million in Q4 2024 (Q4 2023: €13.9 million) and €66.4
million in FY2024 (FY2023: €73.1 million).
Profit after tax was €14.9 million in Q4 2024 (Q4 2023: €5.2 million) or
8.7 cents basic earnings per share (Q4 2023: 4.5 cents) and €32.6 million in
FY2024 (FY2023: €36.7 million) or 22.6 cents basic earnings per share
(FY2023: 27.7 cents). Profits benefitted from a €6.9 million impairment
reversal related to Proyecto Touro.
Cash Flow Statement
Cash flows from operating activities before changes in working capital were
€11.7 million in Q4 2024 (Q4 2023: €12.7 million) and €11.1 million
after working capital changes (Q4 2023: €5.7 million). For FY2024, cash
flows from operating activities before changes in working capital were €66.4
million (FY2023: €72.2 million) and €53.4 million after working capital
changes (FY2023: €64.7 million).
Cash flows used in investing activities were €16.6 million in Q4 2024 (Q4
2023: €14.8 million) and €66.1 million in FY2024 (FY2023: €50.4
million). Key investments in FY2024 included €4.0 million in sustaining
capex, €9.9 million in capitalised stripping at Cerro Colorado, €25.7
million related to the San Dionisio area, €14.8 million to expand the
tailings dam and €8.4 million for the 50 MW solar plant. In addition,
€12.4 million was invested in the E-LIX Phase I Plant, of which €5.3
million was recorded as a loan to Lain Technologies, €2.1 million as
additions to PP&E and the remaining as prepayments for service contracts.
Cash flows from financing activities were negative €19.2 million in Q4 2024
(Q4 2023: positive €13.1 million) and negative €57.3 million in FY2024
(FY2023: negative €18.5 million) as a result of credit facility repayments
and dividend payments.
Balance Sheet
The Company's balance sheet remains strong with consolidated cash and cash
equivalents of €52.9 million as at 31 December 2024 (31 December 2023:
€121.0 million).
Current and non-current borrowings were €17.8 million, resulting in a net
cash position of €35.1 million as at 31 December 2024 (31 December 2023:
€54.3 million). The decrease in net cash is mainly the result of ongoing
capital investments and the €10.3 million in dividend payments made during
2024.
Inventories of concentrate valued at cost were €19.7 million at 31 December
2024 (31 December 2023: €8.4 million). The total working capital surplus was
€44.7 million at 31 December 2024 (31 December 2023: €68.6 million).
2024 Final Dividend
Atalaya has a dividend policy that seeks to provide capital returns to its
shareholders and allows for continued investments in the Company's portfolio
of growth projects. Dividends are payable in two half-yearly instalments.
The Board of Directors has proposed a final dividend for FY2024 of $0.03 per
ordinary share ("Final Dividend"), which is equivalent to approximately 2.3
pence per share. Payment of the Final Dividend is subject to shareholder
approval at the Company's 2025 Annual General Meeting ("AGM"). Should it be
approved, the Final Dividend, together with the Interim Dividend paid in
September 2024, would result in a Full Year Dividend of $0.07 per ordinary
share for FY2024, which is equivalent to approximately 5.4 pence per share.
Further details on the timing of the potential payment of the Final Dividend
will be provided ahead of the AGM.
Outlook for 2025
Production
As announced in the Company's Q4 2024 Operations Update, copper production
guidance is 48,000 - 52,000 tonnes for FY2025, which compares to FY2024
production of 46,227 tonnes. Production in FY2025 is expected to be weighted
slightly towards H1 2025 as a result of pit sequencing.
Production in the initial months of 2025 has been encouraging and supports the
Company's full-year 2025 outlook.
Operating Costs
The prices of several key consumables continued their downward trend in 2024
after having peaked in 2022, although unit prices remain above 2021 levels.
Ongoing conflicts in several regions may continue to disrupt supply chains and
impact energy prices, therefore further input price volatility is possible.
With respect to electricity, the Company's long-term PPA and solar plant are
expected to provide some price stability.
Cash Cost and AISC guidance for FY2025 are as follows:
· Cash Cost range of $2.70 - 2.90/lb copper payable
‒ Compares with actual of $2.92/lb in FY2024
· AISC range of $3.20 - 3.40/lb copper payable
‒ Includes capitalised stripping costs of ~$0.20/lb from Cerro
Colorado
‒ Compares with actual of $3.26/lb in FY2024, which included
$0.11/lb in capitalised stripping costs from Cerro Colorado
AISC guidance excludes investments in the tailings dam and ongoing waste
stripping at the San Dionisio area, which are included in the non-sustaining
capital investment guidance below.
Non-Sustaining Capital Investments
Atalaya continues to make investments that support its core strategic
objectives of increasing its copper production, diversifying its sources of
production, extending mine life, delivering structural cost reductions and
maximising overall asset optionality.
The Company plans to make the following non-sustaining capital investments in
FY2025:
Item € million
San Dionisio waste stripping, dewatering and road relocation ((1)) €32 - 46
Proyecto Masa Valverde access ramp ((2)) €8 - 12
E-LIX Phase I Plant €5 - 7
50 MW solar plant €3 - 5
Expansion of existing Riotinto tailings facility €10 - 12
Total non-sustaining capital investments €58 - 82
(1) Upon receipt of the final permit, a portion of this may be
reclassified to Cash Cost and AISC
(2) Ramp development to begin once purchase of surface rights are
completed
Exploration Expenditures
Investing in early stage exploration remains a key component of Atalaya's
long-term strategy. The Company has interests in several key land packages in
Spain, including in the Iberian Pyrite Belt (Riotinto District), the Ossa
Morena Metallogenic Belt (Proyecto Ossa Morena) and around Proyecto Touro, as
well as new earn-in agreements in two VMS districts in Sweden.
In FY2025, the Company's exploration expenditure budget is €6 - 8 million.
The main focus will be on expanding and upgrading resources at Cerro Colorado,
San Antonio, Proyecto Masa Valverde and Proyecto Touro, as well as drill
testing targets in Sweden and at Proyecto Masa Valverde.
Corporate Activities Update
Move to the Main Market
On 29 April 2024, the Company announced the admission of its ordinary shares
to the premium listing segment of the Official List maintained by the
Financial Conduct Authority ("FCA") and to trading on London Stock Exchange's
main market for listed securities, along with the cancellation of trading on
AIM.
The move up marked a significant corporate milestone for Atalaya and reflected
the Company's desire to expand its investor base and continue its growth
trajectory.
New Listing Rules
On 29 July 2024, the FCA implemented a new simplified listing regime. As a
result, the Company is now admitted to the equity shares (commercial
companies) ("ESCC") category of the Official List, in place of the prior
premium listing segment.
Re-domiciliation
On 10 January 2025, the Company announced the completion of its
re-domiciliation from the Republic of Cyprus to the Kingdom of Spain.
As a result, trading in Atalaya's shares under the new registered name of
Atalaya Mining Copper, S.A. became effective on 10 January 2025. In addition,
the actions and initiatives noted in the Company's 6 January 2025 announcement
became effective on 9 January 2025, with retrospective effect for Spanish
corporate law purposes as from 27 December 2024.
The re-domiciliation to Spain, along with Atalaya's move to the Main Market,
opened the possibility for Atalaya to be included in the FTSE UK Index Series
and further expanded its access to new investors.
Indexation
On 5 March 2025, FTSE Russell announced the results of its March 2025
Quarterly Review for the FTSE UK Index Series. Atalaya is pleased that its
shares will be added to the FTSE All-Share and FTSE SmallCap indices effective
24 March 2025. This milestone is expected to enhance the Company's visibility
to institutional investors.
Board of Directors
During 2024 and early 2025, several updates took effect related to succession
planning at the Company's Board of Directors:
· Neil Gregson was appointed Chair of Atalaya, succeeding Roger
Davey
· Kate Harcourt was appointed Senior Independent Director
· Carole Whittall was appointed as an Independent Non-Executive
Director
· Roger Davey retired from the Board
· Coriseo González-Izquierdo was appointed as an Independent
Non-Executive Director
As a result of these updates, various changes were made to the composition of
the Company's Board committees.
In addition, it is intended that Coriseo González-Izquierdo will succeed
Hussin Barma as Chair of the Remuneration Committee no later than the date of
the 2025 Annual General Meeting.
Asset Portfolio Update
Proyecto Riotinto
Waste stripping continues at San Dionisio in order to prepare the area for
future mining phases. Total material mined was 1.9 million tonnes in Q4 2024
and 13.4 million tonnes in FY2024. Meanwhile, the permitting process
associated with the San Dionisio final pit continues to advance.
Construction progress continues in relation to the planned relocation of the
A-461 road that currently runs between Cerro Colorado and San Dionisio.
At San Antonio, an infill and step-out drilling programme is expected to
begin in the coming months.
E-LIX Phase I Plant
Commissioning and ramp-up activities continue at the E-LIX Phase I plant.
During Q4 2024, good progress was made in relation to rectifying issues in the
conventional elements of the plant. The novel leaching section continues to
perform well, where recent focus has been on leaching the zinc contained
within Atalaya's copper concentrates given the low copper treatment charge
environment.
Once fully operational, the E-LIX plant is expected to produce high-purity
copper or zinc metals on site, allowing the Company to potentially achieve
higher metal recoveries from complex polymetallic ores, lower transportation
charges and a reduced carbon footprint.
50 MW Solar Plant
The 50 MW solar plant was connected to the substation at the end
of October 2024. With Phase I complete, full capacity is expected to be
reached in 2025 after which the facility is expected to provide approximately
22% of Riotinto's current electricity needs.
Together, the 50 MW solar plant and the Company's 10-year PPA will provide
over 50% of the Company's current electricity requirements at a rate well
below historical prices in Spain. The Company also continues to assess
opportunities to enter into additional long-term PPAs in order to provide
further price stability.
Riotinto District - Proyecto Masa Valverde ("PMV")
PMV has been granted the two key permits required for development - the
Unified Environmental Authorisation (or in Spanish, Autorización Ambiental
Unificada ("AAU") and the exploitation permit. The Company expects to start
construction of the access ramp in H1 2025 once it has completed the purchase
of certain surface rights.
At present, four drill rigs are testing the north extension of the copper
veining stockwork mineralisation at the Masa Valverde deposit, while
additional drilling was recently completed at other targets.
Proyecto Touro
On 24 June 2024, Atalaya announced that Proyecto Touro, via its local entity
Cobre San Rafael, was declared a strategic industrial project by the Council
of the Xunta de Galicia ("XdG"). Under legislation of the Autonomous
Community of Galicia, the status of strategic industrial project (or in
Spanish, Proyecto Industrial Estratégico ("PIE")) acts to simplify the
administrative procedures associated with the development of industrial
projects and intends to substantially reduce permitting timelines.
This declaration highlights the XdG's commitment to promoting new investment
that will benefit the region and also support the objectives of the European
Union. Copper is considered a strategic raw material by the EU and this
project has the potential to become a new source of sustainable European
copper production.
The XdG is continuing its review according to the simplified procedures
afforded to projects with PIE status. The public information period, which
serves to inform the surrounding communities and organisations about the
proposed project, concluded on 31 January 2025. Cobre San Rafael is currently
focused on analysing and responding to the feedback submitted during the
public information period and assessing the sectoral reports issued by the
various departments of the XdG.
In addition, the Company continues to engage with the many stakeholders in the
region including through various recruitment initiatives, and is restoring the
water quality of the rivers around Touro by operating its water treatment
plant.
The Company also continues infill and step-out drilling programmes focused on
areas captured in the initial mine plan and where mineralisation remains open.
Proyecto Ossa Morena
Once new permits are approved, drilling will be prioritised at the flagship
Alconchel-Pallares copper-gold project and the Guijarro-Chaparral gold-copper
project.
Proyecto Riotinto East
A gravimetric ground survey will be carried out over selected areas to better
define drill targets.
Skellefte Belt and Rockliden (Sweden)
On 19 November 2024, Atalaya announced that it had entered into two binding
agreements with Mineral Prospektering i Sverige AB ("MPS") pursuant to which
Atalaya can earn an initial 75% interest in two separate land packages
in Sweden. The Skellefte Belt land package ("Skellefte Belt Project") and the
Rockliden land package ("Rockliden Project") are located in two notable
districts that host many large-scale volcanogenic massive sulphide ("VMS")
deposits and mines owned by Boliden AB. Both regions are underexplored and
could increase Atalaya's exposure to critical minerals in Europe.
In Q4 2024, activities focused on preparing for the winter drilling season. At
the Rockliden Project, drilling commenced during the first week of January
2025, with an initial focus on extensional drilling at the "Target 1" prospect
and other untested high priority regional Versatile Time-Domain
Electromagnetic ("VTEM") anomalies. At the Skellefte Belt Project, drilling
is underway and focused on known VTEM anomalies and infill and extensional
drilling at the Bjurtraskgruvan prospect.
This announcement contains information which, prior to its publication
constituted inside information for the purposes of Article 7 of Regulation
(EU) No 596/2014.
Contacts:
SEC Newgate UK Elisabeth Cowell / Tom Carnegie/ Gwen Samuel +44 20 3757 6882
Atalaya Mining Michael Rechsteiner +34 959 59 28 50
About Atalaya Mining Copper, S.A.
Atalaya is a European copper producer that owns and operates the Proyecto
Riotinto complex in southwest Spain. Atalaya's shares trade on the London
Stock Exchange's Main Market under the symbol "ATYM".
Atalaya's operations include the Cerro Colorado open pit mine and a modern 15
Mtpa processing plant, which has the potential to become a central processing
hub for ore sourced from its wholly owned regional projects around Riotinto,
such as Proyecto Masa Valverde and Proyecto Riotinto East. In addition,
Atalaya has a phased earn-in agreement for up to 80% ownership of Cobre San
Rafael S.L., which fully owns the Proyecto Touro brownfield copper project in
the northwest of Spain, as well as a 99.9% interest in Proyecto Ossa Morena.
For further information, please visit www.atalayamining.com
(http://www.atalayamining.com)
ATALAYA MINING COPPER, S.A.
MANAGEMENT'S REVIEW AND
EXTRACT OF THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS
31 December 2024
Notice to Reader
The accompanying consolidated financial statements of Atalaya Mining Copper,
S.A. have been prepared by and are the responsibility of Atalaya Mining
Copper, S.A.'s management.
Introduction
This report provides an overview and analysis of the financial results of
operations of Atalaya Mining Copper, S.A. and its subsidiaries ("Atalaya"
and/or "Group"), to enable the reader to assess material changes in the
financial position between 31 December 2023 and 31 December 2024 and results
of operations for the three and twelve months ended 31 December 2024 and 2023.
This report has been prepared as of 17 March 2024. The analysis hereby
included is intended to supplement and complement the audited consolidated
financial statements and notes thereto ("Financial Statements") as at and for
the period ended 31 December 2024, which will be released together with the
Company's 2024 Annual Report.
Atalaya prepares its Annual Financial Statements in accordance with
International Financial Reporting Standards ("IFRSs") as adopted by the EU.
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" applicable under securities laws. Except for
statements of historical fact, certain information contained herein
constitutes forward-looking statements. Forward-looking statements are
frequently characterised by words such as "plan", "expect", "project",
"intend", "believe", "anticipate", "estimate", and other similar words, or
statements that certain events or conditions "may" or "will" occur.
Forward-looking statements are based on the opinions and estimates of
management at the date the statements are made and are based on a number of
assumptions and subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ materially from
those projected in the forward-looking statements. Assumptions upon which
such forward-looking statements are based include all required third party
regulatory and governmental approvals that 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 be correct. Factors that 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.
Non-Financial Information Statement
The Non-Financial Information Statement has been prepared in accordance with
the requirements of Spanish Law 11/2018, of 28 December, on non-financial and
diversity information (amending the Commercial Code, the revised text of the
Capital Companies Act approved by Royal Legislative Decree 1/2010 of 2 July,
and Law 22/2015 of 20 July on Auditing). This statement aims to provide
stakeholders with relevant information on the Group's environmental, social,
and governance performance.
For a comprehensive overview of Atalaya's ESG performance, including
environmental initiatives, social impact, employee relations, human rights
policies, and anti-corruption measures, please refer to the Atalaya
Sustainability Report 2024, which is published separately and provides
detailed disclosures aligned with international reporting standards such as
the Global Reporting Initiative (GRI) standards.
1. Incorporation and summary of business
Atalaya Mining Plc 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 was at 1 Lampousa Street, Nicosia, Cyprus.
The Company was first listed on the Alternative Investment Market (AIM) of the
London Stock Exchange in May 2005.
Change of name and share consolidation (2015)
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. The Company's trading symbol became
"ATYM".
On 29 April 2024, the Company was admitted to trading on the main market of
the London Stock Exchange.
Cross-border conversion (re-domiciliation) (2024-2025)
On 10 January 2025, the Company successfully completed a cross-border
conversion, resulting in its re-domiciliation from the Republic of Cyprus to
the Kingdom of Spain. This process was carried out in accordance with the
Company's strategic objectives to align its corporate structure with its
operational base in Spain.
A cross-border conversion deed was executed on 23 December 2024 and
subsequently filed with the Spanish Commercial Registry on 27 December 2024.
Under Spanish corporate law, the re-domiciliation became legally effective
from the date of registration with the Spanish Commercial Registry, i.e., 27
December 2024. However, for administrative and procedural purposes, the final
formalities were completed on 9 January 2025, with the official public
announcement being made on 10 January 2025. Following this change:
· Atalaya's corporate seat was transferred from Cyprus to Spain,
and Atalaya became a Spanish public limited company (Sociedad Anónima) under
the laws of the Kingdom of Spain;
· Atalaya's registered name changed from Atalaya Mining Plc to
Atalaya Mining Copper, S.A.; and;
· Atalaya's registered address changed from 1, Lampousas Street,
1095 Nicosia, Cyprus to Paseo de las Delicias, 1, 3, 41001, Sevilla, Spain.
The Company's shares commenced trading under "Atalaya Mining Copper, S.A." on
10 January 2025 at 8:00 am (London time) and the nominal value of the
Company's shares were also adjusted from 7.5p to €0.09 per share.
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 certain investigation permits at Proyecto
Riotinto East.
Additional information about the Company is available at
www.atalayamining.com.
2. Operating Review
Proyecto Riotinto
The following table presents a summarised statement of operations of Proyecto
Riotinto for the three and twelve month periods ended 31 December 2024 and
2023.
Units expressed in accordance with the international system of units (SI) Unit Q4 2024 Q4 2023 FY2024 FY2023
Ore mined tonnes 3,507,203 3,742,814 15,176,009 14,944,638
Waste mined ((1)) tonnes 10,200,079 7,362,657 32,824,156 32,182,904
Ore processed tonnes 3,757,040 4,138,368 15,913,064 15,790,098
Copper grade % 0.41 0.36 0.35 0.38
Copper concentrate grade % 17.37 19.83 18.33 20.72
Copper recovery % 78.15 85.47 83.06 86.62
Copper concentrate produced tonnes 69,550 64,414 252,165 249,321
Copper production tonnes 12,078 12,775 46,227 51,667
Payable copper production tonnes 11,382 12,131 43,706 49,174
Cash Cost US$/lb payable 2.79 2.90 2.92 2.79
All-in Sustaining Cost US$/lb payable 3.28 3.16 3.26 3.09
(1) Represents the Cerro Colorado pit only.
There may be slight differences between the numbers in the above table and the
figures announced in the quarterly operations updates that are available on
Atalaya's website at www.atalayamining.com.
$/lb Cu payable Q4 2024 Q4 2023 FY2024 FY2023
Mining 1.05 0.92 1.07 0.86
Processing 0.88 0.84 0.90 0.89
Other site operating costs 0.66 0.67 0.64 0.56
Total site operating costs 2.58 2.44 2.61 2.30
By-product credits (0.34) (0.11) (0.27) (0.09)
Freight, treatment charges and other offsite costs 0.55 0.57 0.58 0.58
Total offsite costs 0.21 0.47 0.30 0.49
Cash Cost 2.79 2.90 2.92 2.79
Cash Cost 2.79 2.90 2.92 2.79
Corporate costs 0.11 0.09 0.10 0.08
Sustaining capital (excluding tailings expansion) 0.03 0.02 0.05 0.03
Capitalised stripping costs ((1)) 0.27 0.08 0.11 0.12
Other costs 0.09 0.06 0.09 0.07
AISC 3.28 3.16 3.26 3.09
(1) Represents the Cerro Colorado pit only.
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.
Mining and Processing
Mining
Ore mined was 3.5 million tonnes in Q4 2024 (Q4 2023: 3.7 million tonnes) and
15.2 million tonnes in FY2024 (FY2023: 14.9 million tonnes).
Waste mined at Cerro Colorado was 10.2 million tonnes in Q4 2024 (Q4 2023: 7.4
million tonnes) and 32.8 million tonnes in FY2024 (FY2023: 32.2 million
tonnes). In addition, waste stripping activities continued at the San Dionisio
area.
Processing
Ore processed was 3.8 million tonnes in Q4 2024 (Q4 2023: 4.1 million tonnes)
and 15.9 million tonnes in FY2024 (FY2023: 15.8 million tonnes), which
represents a new annual throughput record.
Copper grade was 0.41% in Q4 2024 (Q4 2023: 0.36%) and 0.35% in FY2024
(FY2023: 0.38%), with lower full-year grades as a result of pit sequencing.
Copper recovery was 78.15% in Q4 2024 (Q4 2023: 85.47%) and 83.06% in FY2024
(FY2023: 86.62%), with the decrease due to a combination of lower grades and
the characteristics of certain ores.
Production
Copper production was 12,078 tonnes in Q4 2024 (Q4 2023: 12,775 tonnes) and
46,227 tonnes in FY2024 (FY2023: 51,667 tonnes). Production in FY2024 was
below FY2023 as a result of lower copper grades and recoveries, although
higher silver production helped to mitigate the impact on revenues.
On-site copper concentrate inventories were 21,815 tonnes at 31 December 2024
(31 December 2023: 6,722 tonnes).
Copper contained in concentrates sold was 10,271 tonnes in Q4 2024 (Q4 2023:
12,928 tonnes) and 43,609 tonnes in FY2024 (FY2023: 50,808 tonnes).
Asset Portfolio Update
Proyecto Riotinto
Waste stripping continues at San Dionisio in order to prepare the area for
future mining phases. Total material mined was 1.9 million tonnes in Q4 2024
and 13.4 million tonnes in FY2024. Meanwhile, the permitting process
associated with the San Dionisio final pit continues to advance.
Construction progress continues in relation to the planned relocation of the
A-461 road that currently runs between Cerro Colorado and San Dionisio.
At San Antonio, an infill and step-out drilling programme is expected to
begin in the coming months.
E-LIX Phase I Plant
Commissioning and ramp-up activities continue at the E-LIX Phase I plant.
During Q4 2024, good progress was made in relation to rectifying issues in the
conventional elements of the plant. The novel leaching section continues to
perform well, where recent focus has been on leaching the zinc contained
within Atalaya's copper concentrates given the low copper treatment charge
environment.
Once fully operational, the E-LIX plant is expected to produce high-purity
copper or zinc metals on site, allowing the Company to potentially achieve
higher metal recoveries from complex polymetallic ores, lower transportation
charges and a reduced carbon footprint.
50 MW Solar Plant
The 50 MW solar plant was connected to the substation at the end
of October 2024. With Phase I complete, full capacity is expected to be
reached in 2025 after which the facility is expected to provide approximately
22% of Riotinto's current electricity needs.
Together, the 50 MW solar plant and the Company's 10-year PPA will provide
over 50% of the Company's current electricity requirements at a rate well
below historical prices in Spain. The Company also continues to assess
opportunities to enter into additional long-term PPAs in order to provide
further price stability.
Riotinto District - Proyecto Masa Valverde
PMV has been granted the two key permits required for development - the
Unified Environmental Authorisation (or in Spanish, Autorización Ambiental
Unificada ("AAU") and the exploitation permit. The Company expects to start
construction of the access ramp in H1 2025 once it has completed the purchase
of certain surface rights.
At present, four drill rigs are testing the north extension of the copper
veining stockwork mineralisation at the Masa Valverde deposit, while
additional drilling was recently completed at other targets.
Proyecto Touro
On 24 June 2024, Atalaya announced that Proyecto Touro, via its local entity
Cobre San Rafael, was declared a strategic industrial project by the Council
of the Xunta de Galicia ("XdG"). Under legislation of the Autonomous
Community of Galicia, the status of strategic industrial project (or in
Spanish, Proyecto Industrial Estratégico ("PIE")) acts to simplify the
administrative procedures associated with the development of industrial
projects and intends to substantially reduce permitting timelines.
This declaration highlights the XdG's commitment to promoting new investment
that will benefit the region and also support the objectives of the European
Union. Copper is considered a strategic raw material by the EU and this
project has the potential to become a new source of sustainable European
copper production.
The XdG is continuing its review according to the simplified procedures
afforded to projects with PIE status. The public information period, which
serves to inform the surrounding communities and organisations about the
proposed project, concluded on 31 January 2025. Cobre San Rafael is currently
focused on analysing and responding to the feedback submitted during the
public information period and assessing the sectoral reports issued by the
various departments of the XdG.
In addition, the Company continues to engage with the many stakeholders in the
region including through various recruitment initiatives, and is restoring the
water quality of the rivers around Touro by operating its water treatment
plant.
The Company also continues infill and step-out drilling programmes focused on
areas captured in the initial mine plan and where mineralisation remains open.
Proyecto Ossa Morena
Once new permits are approved, drilling will be prioritised at the flagship
Alconchel-Pallares copper-gold project and the Guijarro-Chaparral gold-copper
project.
Riotinto District - Proyecto Riotinto East
A gravimetric ground survey will be carried out over selected areas to better
define drill targets.
Skellefte Belt and Rockliden (Sweden)
On 19 November 2024, Atalaya announced that it had entered into two binding
agreements with Mineral Prospektering i Sverige AB ("MPS") pursuant to which
Atalaya can earn an initial 75% interest in two separate land packages
in Sweden. The Skellefte Belt land package ("Skellefte Belt Project") and the
Rockliden land package ("Rockliden Project") are located in two notable
districts that host many large-scale volcanogenic massive sulphide ("VMS")
deposits and mines owned by Boliden AB. Both regions are underexplored and
could increase Atalaya's exposure to critical minerals in Europe.
In Q4 2024, activities focused on preparing for the winter drilling season. At
the Rockliden Project, drilling commenced during the first week of January
2025, with an initial focus on extensional drilling at the "Target 1" prospect
and other untested high priority regional Versatile Time-Domain
Electromagnetic ("VTEM") anomalies. At the Skellefte Belt Project, drilling
is underway and focused on known VTEM anomalies and infill and extensional
drilling at the Bjurtraskgruvan prospect.
Corporate Activities Update
Move to the Main Market
On 29 April 2024, the Company announced the admission of its ordinary shares
to the premium listing segment of the Official List maintained by the
Financial Conduct Authority ("FCA") and to trading on London Stock Exchange's
main market for listed securities, along with the cancellation of trading on
AIM.
The move up marked a significant corporate milestone for Atalaya and reflected
the Company's desire to expand its investor base and continue its growth
trajectory.
New Listing Rules
On 29 July 2024, the FCA implemented a new simplified listing regime. As a
result, the Company is now admitted to the equity shares (commercial
companies) ("ESCC") category of the Official List, in place of the prior
premium listing segment.
Re-domiciliation
On 10 January 2025, the Company announced the completion of its
re-domiciliation from the Republic of Cyprus to the Kingdom of Spain.
As a result, trading in Atalaya's shares under the new registered name of
Atalaya Mining Copper, S.A. became effective on 10 January 2025. In addition,
the actions and initiatives noted in the Company's 6 January 2025 announcement
became effective on 9 January 2025, with retrospective effect for Spanish
corporate law purposes as from 27 December 2024.
The re-domiciliation to Spain, along with Atalaya's move to the Main Market,
opened the possibility for Atalaya to be included in the FTSE UK Index Series
and further expanded its access to new investors.
Indexation
On 5 March 2025, FTSE Russell announced the results of its March 2025
Quarterly Review for the FTSE UK Index Series. Atalaya is pleased that its
shares will be added to the FTSE All-Share and FTSE SmallCap indices effective
24 March 2025. This milestone is expected to enhance the Company's visibility
to institutional investors.
Board of Directors
During 2024 and early 2025, several updates took effect related to succession
planning at the Company's Board of Directors:
· Neil Gregson was appointed Chair of Atalaya, succeeding Roger
Davey
· Kate Harcourt was appointed Senior Independent Director
· Carole Whittall was appointed as an Independent Non-Executive
Director
· Roger Davey retired from the Board
· Coriseo González-Izquierdo was appointed as an Independent
Non-Executive Director
As a result of these updates, various changes were made to the composition of
the Company's Board committees.
In addition, it is intended that Coriseo González-Izquierdo will succeed
Hussin Barma as Chair of the Remuneration Committee no later than the date of
the 2025 Annual General Meeting.
3. Operational Guidance
The forward-looking information contained in this section is subject to the
risk factors and assumptions contained in the cautionary statement on
forward-looking statements included in the Basis of Reporting. Should the
Company consider the current guidance no longer achievable, then the Company
will provide a further update.
Proyecto Riotinto operational guidance for 2025 is as follows:
Unit Guidance 2025
Ore mined million tonnes 15 - 16
Waste mined((1)) million tonnes 37 - 43
Ore processed million tonnes 15.5 - 15.8
Copper grade % 0.38 - 0.42
Copper recovery % 78 - 82
Copper production tonnes 48,000 - 52,000
Cash Cost $/lb payable $2.70 - 2.90
All-in Sustaining Cost $/lb payable $3.20 - 3.40
(1) Represents the Cerro Colorado pit only.
Production
As announced in the Company's Q4 2024 Operations Update, copper production
guidance is 48,000 - 52,000 tonnes for FY2025, which compares to FY2024
production of 46,227 tonnes. Production in FY2025 is expected to be weighted
slightly towards H1 2025 as a result of pit sequencing.
Production in the initial months of 2025 has been encouraging and supports the
Company's full-year 2025 outlook.
Operating Costs
The prices of several key consumables continued their downward trend in 2024
after having peaked in 2022, although unit prices remain above 2021 levels.
Ongoing conflicts in several regions may continue to disrupt supply chains and
impact energy prices, therefore further input price volatility is possible.
With respect to electricity, the Company's long-term PPA and solar plant are
expected to provide some price stability.
Cash Cost and AISC guidance for FY2025 are as follows:
· Cash Cost range of $2.70 - 2.90/lb copper payable
o Compares with actual of $2.92/lb in FY2024
· AISC range of $3.20 - 3.40/lb copper payable
o Includes capitalised stripping costs of ~$0.20/lb from Cerro Colorado
o Compares with actual of $3.26/lb in FY2024, which included $0.11/lb in
capitalised stripping costs from Cerro Colorado
AISC guidance excludes investments in the tailings dam and ongoing waste
stripping at the San Dionisio area, which are included in the non-sustaining
capital investment guidance below.
Non-Sustaining Capital Investments
Atalaya continues to make investments that support its core strategic
objectives of increasing its copper production, diversifying its sources of
production, extending mine life, delivering structural cost reductions and
maximising overall asset optionality.
The Company plans to make the following non-sustaining capital investments in
FY2025:
Item € million
San Dionisio waste stripping, dewatering and road relocation ((1)) €32 - 46
Proyecto Masa Valverde access ramp ((2)) €8 - 12
E-LIX Phase I Plant €5 - 7
50 MW solar plant €3 - 5
Expansion of existing Riotinto tailings facility €10 - 12
Total non-sustaining capital investments €58 - 82
(1) Upon receipt of the final permit, a portion of this may be
reclassified to Cash Cost and AISC
(2) Ramp development to begin once purchase of surface rights are
completed
Exploration Expenditures
Investing in early stage exploration remains a key component of Atalaya's
long-term strategy. The Company has interests in several key land packages in
Spain, including in the Iberian Pyrite Belt (Riotinto District), the Ossa
Morena Metallogenic Belt (Proyecto Ossa Morena) and around Proyecto Touro, as
well as new earn-in agreements in two VMS districts in Sweden.
In FY2025, the Company's exploration expenditure budget is €6 - 8 million.
The main focus will be on expanding and upgrading resources at Cerro Colorado,
San Antonio, Proyecto Masa Valverde and Proyecto Touro, as well as drill
testing targets in Sweden and at Proyecto Masa Valverde.
4. Financial Review
Income Statement
The following table presents a summarised consolidated income statement for
the three and twelve month periods ended 31 December 2024 and 31 December
2023.
(Euro 000's) Three month ended 31 Dec 2024 Three month ended 31 Dec 2023 Twelve month ended 31 Dec 2024 Twelve month ended 31 Dec 2023
Revenues from operations 77,852 85,591 326,797 340,346
Cost of sales (59,598) (65,038) (242,163) (247,290)
Corporate expenses (1,833) (4,713) (7,927) (12,741)
Exploration expenses (4,637) (1,311) (7,950) (6,467)
Care and maintenance expenditure 1,269 (1,199) (2,784) (2,384)
Other income (373) 558 383 1,636
EBITDA 12,680 13,888 66,356 73,100
Depreciation/amortisation (10,625) (10,635) (43,565) (37,800)
Net Impairment reversals on Assets ((1)) 5,744 - 5,744 -
Net foreign exchange gain/(loss) 2,532 (2,038) 3,090 (1,278)
Net finance income/(cost) 553 (422) (102) 2,071
Tax 4,038 4,422 1,037 570
Profit for the year 14,922 5,215 32,560 36,663
(1) Includes reversal of prior Touro impairment. Refer to Note 14
Three months financial review
Revenues for Q4 2024 amounted to €77.9 million, down from €85.6 million in
Q4 2023. The decline was primarily due to lower concentrate sales volumes and
concentrate grades. Realised copper prices, excluding QPs, were US$4.10/lb in
Q4 2024, compared with US$3.78/lb in Q4 2023. Including QPs, the realised
price was approximately US$4.15/lb.
Copper contained in concentrates sold was 10,271 tonnes in Q4 2024 and 12,928
tonnes in FY2023.
Cost of sales for Q4 2024 totalled €59.6 million, compared to €65.0
million in Q4 2023. The decrease was mainly due to a higher volume of
concentrate stock at the end of the period. Cash costs stood at US$2.79/lb
payable copper, down from US$2.90/lb in the prior-year quarter, benefiting
from silver credits despite lower copper payable. All-in Sustaining Costs
(AISC) for Q4 2024, excluding investments in the tailings dam, were US$3.28/lb
payable copper, compared with US$3.16/lb in Q4 2023. The increase was mainly
due to higher capitalised stripping costs.
Sustaining capex for Q4 2024 amounted to €0.4 million, compared with €0.5
million in Q4 2023, primarily related to plant processing system improvements.
Investment in the tailings dam project during Q4 2024 was €4.0 million,
€3.4 million in Q4 2023. Capitalised stripping costs for Cerro Colorado for
Q4 2024 were €6.2 million, higher than previous year (€2.0 million). The
50 MW solar plant construction capex totalled €2.9 million in Q4 2024.
Corporate expenses for Q4 2024 totalled €1.8 million, compared with €4.7
million in Q4 2023. These expenses include non-operating costs of the Cyprus
office, corporate legal and consultancy fees, listing costs, and salaries for
corporate officers and directors. Exploration expenses for the three-month
period ended 31 December 2024 were €4.6 million, compared to €1.3 million
in Q4 2023.
EBITDA for Q4 2024 amounted to €12.7 million, down from €13.9 million in
Q4 2023. Depreciation and amortisation remained stable at €10.6 million in
both periods. Net foreign exchange gains in Q4 2024 were €2.5 million,
compared with a loss of €2.0 million in Q4 2023. Net financing income in Q4
2024 were a positive €0.6 million, compared with a loss of €0.4 million in
the prior-year quarter.
Twelve months financial review
Revenues for FY 2024 totalled €326.8 million, compared with €340.3 million
in FY 2023. The decrease was mainly due to lower concentrate sales volumes and
concentrate grades, partially offset by higher realised prices.
Copper concentrate production for FY 2024 was 252,165 tonnes, up from 249,321
tonnes in FY 2023, while sales totalled 237,072 tonnes, down from 246,128
tonnes in the previous year. Inventories of concentrates at year-end stood at
21,815 tonnes, compared with 6,722 tonnes at 31 December 2023. Copper
contained in concentrates sold was 43,609 tonnes in FY 2024 and 50,808 tonnes
in FY2023.
Realised copper prices, excluding QPs, averaged US$4.19/lb in FY 2024,
compared with US$3.80/lb in FY 2023. The Company did not enter into any
hedging agreements during 2024.
Cost of sales for FY 2024 amounted to €242.2 million, down from €247.3
million in 2023. The reduction in costs was mainly due to a positive impact
from a higher year-end copper concentrate inventories despite of higher input
costs. Cash costs for FY 2024 were US$2.92/lb payable copper, up from
US$2.79/lb in 2023, mainly due to lower copper production. However, higher
silver by-product credits helped offset part of the impact. AISC, excluding
investment in the tailings dam, stood at US$3.26/lb payable copper in FY 2024,
compared to US$3.09/lb in FY 2023, with the increase driven by higher
capitalised stripping costs and corporate expenses.
Sustaining capex for the twelve-month period ended 31 December 2024 totalled
€4.0 million, compared with €3.4 million in FY 2023, mainly for plant
processing system upgrades. Investment in the tailings dam expansion was
€14.8 million, compared with €13.7 million in 2023. The 50 MW solar plant
construction capex amounted to €8.4 million in FY 2024, San Dionisio area
€25.7 million, Capitalised stripping costs for Cerro Colorado €9.9 million
while investments in the E-LIX Phase I plant totalled €12.4 million, of
which €5.3 million was booked as a loan to Lain Technologies Ltd, €2.1
million to PPE and €5.0m as prepayments for service contracts.
Corporate expenses for FY 2024 amounted to €7.9 million, down from €12.7
million in FY 2023, reflecting lower overhead costs. Exploration expenses for
the year totalled €7.9 million, compared with €6.5 million in 2023, with
major exploration work carried out at Proyecto Masa Valverde and Riotinto.
EBITDA for FY 2024 was €66.4 million, down from €73.1 million in FY 2023.
Depreciation and amortisation for the year amounted to €43.6 million,
compared with €37.8 million in 2023. Net impairment reversals for FY 2024
were €5.7 million, compared with zero in FY 2023. The net foreign exchange
gain for FY 2024 was €3.1 million, compared with a loss of €1.3 million in
FY 2023.
Net finance costs for FY 2024 amounted to negative €0.1 million, compared
with €2.1 million in FY 2023.
Profit after tax for FY 2024 was €32.6 million, down from €36.7 million in
FY 2023. Tax expenses amounted to €1.0 million, compared to €0.6 million
in 2023. Earnings per share for FY 2024 was 22.6 cents, compared with 27.7
cents in FY 2023. Diluted EPS was 21.8 cents, down from 26.9 cents in the
prior year.
Realised Copper Prices
The average prices of copper for 2024 and 2023 were:
$/lb 2024 2023
Realised copper price (excluding QPs) $/lb 4.19 3.80
Market copper price per lb (period average) $/lb 4.15 3.85
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 2024, including the QP, was approximately $4.06/lb.
5. Alternative Performance Measures
Atalaya has included certain non-IFRS measures including "EBITDA", "Cash Cost
per pound of payable copper" "All-In Sustaining Cost" ("AISC") and "realised
prices" in this report. Non-IFRS measures do not have any standardised meaning
prescribed under IFRS, and therefore they may not be comparable to similar
measures presented by other companies. These measures are intended to provide
additional information and should not be considered in isolation or as a
substitute for indicators prepared in accordance with IFRS.
EBITDA includes gross sales net of penalties and discounts and all operating
costs, excluding finance, tax, impairment, depreciation and amortisation
expenses.
Cash Cost per pound of payable copper includes on-site cash operating costs,
and off-site 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 cash cost.
AISC per pound of payable copper includes the Cash Cost plus royalties and
agency fees, expenditure on rehabilitations, stripping costs, exploration and
geology costs, corporate costs, and sustaining capital expenditures.
Realised prices 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,
expressed in USD per pound of payable copper. Realised price is consistent
with the widely accepted industry standard definition.
6. Liquidity and Capital Resources
Atalaya monitors factors that could impact its liquidity as part of the
Company's overall capital management strategy. Factors that are monitored
include, but are not limited to, the market price of copper, foreign currency
rates, production levels, operating costs, capital and administrative costs.
The following is a summary of Atalaya's cash position as at 31 December 2024
and 2023, and cash flows for the twelve months ended 31 December 2024 and
2023.
Liquidity Information
(Euro 000's) 31 Dec 2024 31 Dec 2023
Unrestricted cash and cash equivalents at Group level 43,184 94,868
Unrestricted cash and cash equivalents at Operation level 9,694 26,139
Consolidated cash and cash equivalents 52,878 121,007
Net cash position 35,091 54,320
Working capital surplus 44,728 68,618
Unrestricted cash and cash equivalents as at 31 December 2024 decreased to
€52.9 million from €121.0 million at 31 December 2023. The decrease in
cash balances is primarily due to cash outflows during 2024, mainly related to
financing and investing activities. Cash balances are unrestricted and include
balances at both the operational and corporate levels. The net decrease in
cash and cash equivalents for the year was €68.1 million, compared to a
decrease of €4.2 million in 2023. This decline was driven by increased
capital expenditures, net debt repayments, and dividend payments.
As of 31 December 2024, Atalaya reported a working capital surplus of €44.7
million, compared with a working capital surplus of €68.6 million at 31
December 2023. The decrease in working capital surplus in 2024 was mainly
driven by changes in current liabilities and cash balances. Cash decreased
significantly compared to the previous year, reflecting higher investments in
property, plant, and equipment, as well as the repayment of borrowings and
payment of dividends. At 31 December 2024, trade and other payables increased
to €90.1 million, up from €75.9 million in 2023, while inventories also
increased to €49.2 million from €33.3 million in the prior year. Trade and
other receivables remained relatively stable at €36.9 million in 2024,
compared to €42.9 million in 2023.
The Directors consider the current net cash position as well as the existing
levels of the commodity prices and the current liquidity position to mitigate
any potential financial risks linked to the liquidity position of the Company.
Overview of the Group's Cash Flows
(Euro 000's) Twelve month ended 31 Dec 2024 Twelve month ended 31 Dec 2023
Cash flows from operating activities 53,403 64,743
Cash flows used in investing activities (66,073) (50,406)
Cash flows from financing activities (57,261) (18,500)
Net (decreased)/increase in cash and cash equivalents (69,931) (4,163)
Net foreign exchange differences 1,802 (1,278)
Total net cash flow for the period (68,129) (5,441)
In the twelve-month period ending 31 December 2024, cash and cash equivalents
experienced a decrease of €69.9 million. This reduction resulted from cash
generated by operating activities amounting to €53.4 million, offset by cash
used in investing activities totalling €66.1 million and financing outflows
amounting to €57.3 million, partially mitigated by a €1.8 million net
positive foreign exchange impact.
Cash generated from operating activities before changes in working capital
reached €66.4 million, compared with an EBITDA of €67.0 million. Atalaya
increased its inventories by €15.0 million, while trade and other
receivables decreased by €1.2 million, and trade and other payables
increased by €5.6 million. The company incurred corporate tax payments
totalling €0.8 million during this period.
Investing activities for the year 2024 amounted to €66.1 million, primarily
directed towards capital expenditures related to ongoing projects, including
plant improvements and infrastructure developments.
Financing activities in 2024 totalled negative €57.3 million, mainly driven
by the repayment of borrowings amounting to €51.9 million, dividend payments
of €10.3 million, and lease payments of €0.6 million, partially offset by
proceeds from the issuance of share capital totalling €2.5 million and new
borrowings of €3.0 million.
Foreign Exchange
In FY2024, Atalaya recognised a foreign exchange gain of €3.1 million
(FY2023 loss: €1.3 million). The foreign exchange gain mainly related to
variances in EUR and USD conversion rates during the period as all sales are
settled and occasionally held in USD.
The following table summarises the movement in key currencies versus the EUR:
Twelve months ended Twelve months ended
31 Dec 2024 31 Dec 2023
Average rates for the periods
GBP - EUR 0.8587 0.8698
USD - EUR 1.091 1.0813
Spot rates as at
GBP - EUR 0.8292 0.8691
USD - EUR 1.039 1.105
During 2024 and 2023, Atalaya did not have any currency hedging agreements.
7. Risk Factors
Due to the nature of Atalaya's business in the mining industry, the Group is
subject to various risks that could materially impact the future operating
results and could cause actual events to differ materially from those
described in forward-looking statements relating to Atalaya. Readers are
encouraged to read and consider the risk factors detailed in Atalaya's audited
consolidated financial statements for the year ended 31 December 2024.
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 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 estimates and
judgements in the audited consolidated financial statements for the year ended
31 December 2024.
9. Other Information
Additional information about Atalaya Mining Copper, S.A. is available at
www.atalayamining.com (http://www.atalayamining.com)
Consolidated financial statements on subsequent pages
By Order of the Board of Directors
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2024
(Euro 000's) Note 2024 2023
Revenue 5 326,797 340,346
Operating costs and mine site administrative expenses (240,784) (246,630)
Mine site depreciation, amortisation and impairment 13,14 (36,617) (37,800)
Gross profit 49,396 55,916
Administration and other expenses (7,927) (12,741)
Share based benefits 24 (1,379) (661)
Impairment loss on financial and contract assets 15 (1,204) -
Exploration expenses (7,950) (6,467)
Care and maintenance expenditure (2,784) (2,384)
Other income 383 1,637
Operating profit 28,535 35,300
Net foreign exchange gain/(loss) 4 3,090 (1,278)
Interest income from financial assets at amortised cost 8 1,887 5,393
Finance costs 9 (1,989) (3,322)
Profit before tax 31,523 36,093
Tax 10 1,037 570
Profit for the year 32,560 36,663
Profit for the year attributable to:
- Owners of the parent 25 31,738 38,769
- Non-controlling interests 25 822 (2,106)
32,560 36,663
Earnings per share from operations attributable to ordinary equity holders of
the parent during the year:
Basic earnings per share (EUR cents per share) 11 22.6 27.7
Diluted earnings per share (EUR cents per share) 11 21.8 26.9
Profit for the year 32,560 36,663
Other comprehensive income: - -
Other comprehensive income that will not be reclassified to profit or loss in
subsequent periods (net of tax):
Change in fair value of financial assets through other comprehensive income 21 (7) (2)
'OCI'
Total comprehensive income for the year 32,553 36,661
Total comprehensive income for the year attributable to:
- Owners of the parent 25 31,731 38,767
- Non-controlling interests 25 822 (2,106)
The notes on subsequent pages are an integral part of these consolidated
financial statements.
Consolidated Statement of Financial Position
As at 31 December 2024
31 Dec 2024 31 Dec 2023
(Euro 000's) Note
Assets
Non-current assets
Property, plant and equipment 13 409,032 384,739
Intangible assets 14 70,209 49,397
Loans 19 2,627 -
Trade and other receivables 20 33,252 26,702
Non-current financial asset 21 1,101 1,101
Deferred tax asset 17 15,085 11,282
531,306 473,221
Current assets
Inventories 18 49,162 33,314
Loans 19 5,352 -
Trade and other receivables 20 36,863 42,897
Tax refundable 266 100
Other financial assets 21 23 30
Cash and cash equivalents 22 52,878 121,007
144,544 197,348
Total assets 675,850 670,569
Equity and liabilities
Equity attributable to owners of the parent
Share capital 23 12,668 13,596
Share premium 23 321,856 319,411
Other reserves 24 88,774 70,463
Accumulated profit 93,085 98,026
516,383 501,496
Non-controlling interests 25 2,154 (9,104)
Total equity 518,537 492,392
Liabilities
Non-current liabilities
Trade and other payables 26 13,983 2,205
Provisions 27 29,328 27,234
Lease liability 28 3,320 3,877
Borrowings 29 10,866 16,131
57,497 49,447
Current liabilities
Trade and other payables 26 90,090 75,922
Lease liability 28 481 501
Current tax liabilities 1,408 1,317
Provisions 27 916 434
Borrowings 29 6,921 50,556
99,816 128,730
Total liabilities 157,313 178,177
Total equity and liabilities 675,850 670,569
The notes on subsequent pages are an integral part of these consolidated
financial statements.
The consolidated financial statements were authorised for issue by the Board
of Directors on 17 March 2025 and were signed on its behalf.
Consolidated Statement of Changes in Equity
for the year ended 31 December 2024
(Euro 000's) Note Share capital Share premium Other reserves ((1)) Accum. Profits Total NCI Total equity
1 Jan 2024 13,596 319,411 70,463 98,026 501,496 (9,104) 492,392
Profit for the period - - - 31,738 31,738 822 32,560
Change in fair value of financial assets through other comprehensive income 21 - - (7) - (7) - (7)
'OCI'
Total comprehensive (loss)/income - - (7) 31,738 31,731 822 32,553
Issuance of share capital 23 76 2,445 - - 2,521 - 2,521
Recognition of depletion factor 24 - - 8,949 (8,949) - - -
Recognition of non-distributable reserve 24 - - 1,843 - 1,843 - 1,843
Recognition of distributable reserve 24 - - 142 (142) - - -
Recognition of share-based payments 24 - - 7,385 (7,385) - - -
Other changes in equity (1,004) - (1) 542 (463) - (463)
Revaluation of non-controlling interest - - - (10,439) (10,439) 10,436 (3)
Dividends paid 12 - - - (10,306) (10,306) - (10,306)
31 Dec 2024 12,668 321,856 88,774 93,085 516,383 2,154 518,537
(Euro 000's) Note Share capital Share premium Other reserves ((1)) Accum. Profits Total NCI Total equity
1 Jan 2023 13,596 319,411 69,805 70,483 473,295 (6,998) 466,297
Profit/(loss) for the period - - - 38,769 38,769 (2,106) 36,663
Change in fair value of financial assets through other comprehensive income 21 - - (3) - (3) - (3)
'OCI'
Total comprehensive (loss)/income - - (3) 38,769 38,766 (2,106) 36,660
Recognition of share-based payments 24 - - 661 - 661 - 661
Other changes in equity - - - 252 252 - 252
Dividends paid 12 - - - (11,478) (11,478) - (11,478)
31 Dec 2023 13,596 319,411 70,463 98,026 501,496 (9,104) 492,392
( )
((1)) Refer to Note 23
The notes on subsequent pages are an integral part of these consolidated
financial statements
Consolidated Statement of Cash Flows
for the year ended 31 December 2024
(Euro 000's) Note 2024 2023
Cash flows from operating activities
Profit before tax 31,523 36,093
Adjustments for:
Depreciation of property, plant and equipment 13 39,658 33,307
Amortisation of intangible assets 14 3,907 4,493
Recognition of share‑based payments 24 1,379 660
Interest income 8 (1,887) (5,392)
Interest expense 9 1,161 2,607
Unwinding of discounting 9 828 690
Legal provisions 27 (1,255) 1
Impairment loss on financial and contract assets 6 1,205 -
Reversal of Intangible Asset Impairment 14 (6,948) -
Net foreign exchange differences (3,090) 1,278
Unrealised foreign exchange (loss)/gain on financing activities (85) (1,492)
Cash inflows from operating activities before working capital changes 66,396 72,245
Changes in working capital:
Inventories 18 (14,958) 5,527
Trade and other receivables 20 (1,247) 10,918
Trade and other payables 26 5,595 (14,924)
Provisions 27 (434) (1,203)
Cash flows from operations 55,352 72,563
Interest expense on lease liabilities 28 (30) (25)
Interest paid (1,131) (2,607)
Tax paid (788) (5,188)
Net cash from operating activities 53,403 64,743
Cash flows from investing activities
Purchases of property, plant and equipment 13 (60,212) (53,837)
Purchases of intangible assets 14 (1,198) (460)
Payments for investments 19 (5,305) -
Interest received 8 642 3,891
Net cash used in investing activities (66,073) (50,406)
Cash flows from financing activities
Lease payment 28 (577) (536)
Proceeds from borrowings 29(a) 3,000 36,810
Repayment of borrowings 29(a) (51,900) (43,296)
Proceeds from issue of share capital 2,522 -
Dividends paid 12 (10,306) (11,478)
Net cash (used in)/from financing activities (57,261) (18,500)
Net decrease in cash and cash equivalents (69,931) (4,163)
Net foreign exchange difference 1,802 (1,278)
Cash and cash equivalents:
At beginning of the year 22 121,007 126,448
At end of the year 22 52,878 121,007
The notes on subsequent pages are an integral part of these consolidated
financial statements.
1. Incorporation and summary of business
Atalaya Mining Plc 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 was at 1 Lampousa Street, Nicosia, Cyprus.
The Company was first listed on the Alternative Investment Market (AIM) of the
London Stock Exchange in May 2005.
Change of name and share consolidation (2015)
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. The Company's trading symbol became
"ATYM".
On 29 April 2024, the Company was admitted to trading on the main market of
the London Stock Exchange.
Cross-border conversion (re-domiciliation) (2024-2025)
On 10 January 2025, the Company successfully completed a cross-border
conversion, resulting in its re-domiciliation from the Republic of Cyprus to
the Kingdom of Spain. This process was carried out in accordance with the
Company's strategic objectives to align its corporate structure with its
operational base in Spain.
A cross-border conversion deed was executed on 23 December 2024 and
subsequently filed with the Spanish Commercial Registry on 27 December 2024.
Under Spanish corporate law, the re-domiciliation became legally effective
from the date of registration with the Spanish Commercial Registry, i.e., 27
December 2024. However, for administrative and procedural purposes, the final
formalities were completed on 9 January 2025, with the official public
announcement being made on 10 January 2025. Following this change:
· Atalaya's corporate seat was transferred from Cyprus to Spain,
and Atalaya became a Spanish public limited company (Sociedad Anónima) under
the laws of the Kingdom of Spain;
· Atalaya's registered name changed from Atalaya Mining Plc to
Atalaya Mining Copper, S.A.; and;
· Atalaya's registered address changed from 1, Lampousas Street,
1095 Nicosia, Cyprus to Paseo de las Delicias, 1, 3, 41001, Sevilla, Spain.
The Company's shares commenced trading under "Atalaya Mining Copper, S.A." on
10 January 2025 at 8:00 am (London time) and the nominal value of the
Company's shares were also adjusted from 7.5p to €0.09 per share.
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 certain investigation permits at Proyecto
Riotinto East.
Additional information about the Company is available at www.atalayamining.com
(http://www.atalayamining.com)
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 initially acquired a 10% stake in Cobre San Rafael, S.L. ("CSR"),
the owner of Proyecto Touro, as part of an earn-in agreement, which was
designed to enable the Group to acquire up to 80% of the copper project.
Proyecto Touro is located in Galicia, north-west Spain, and is currently in
the permitting process.
In July 2017, the Group announced that it had executed the option to acquire
10% of the share capital of CSR, a wholly owned subsidiary of Explotaciones
Gallegas S.L. This acquisition was part of an earn-in agreement, structured in
four phases, allowing the Group to progressively increase its stake in CSR up
to 80%:
- Phase 1 - The Group paid €0.5 million to secure the
exclusivity agreement and committed to funding up to a maximum of €5.0
million to support the permitting and financing stages.
- Phase 2 - Upon receipt of permits, the Group is required to pay
€2.0 million to acquire an additional 30% interest in the project
(cumulative 40%).
- Phase 3 - Once development capital is secured and construction
commences, the Group is required to pay €5.0 million to acquire an
additional 30% interest in the project (cumulative 70%).
- Phase 4 - Upon declaration of commercial production, the Group
purchases an additional 10% interest (cumulative 80%) in exchange for a 0.75%
Net Smelter Return royalty, with a buyback option.
The Agreement was structured to ensure that each phase and corresponding
payment would only occur once the project was de-risked, permitted, and
operational..
On 24 June 2024, Atalaya announced that Proyecto Touro, via its local entity
Cobre San Rafael, was declared a strategic industrial project by the Council
of the Xunta de Galicia ("XdG"). Under legislation of the Autonomous Community
of Galicia, the status of strategic industrial project (or in Spanish,
Proyecto Industrial Estratégico ("PIE")) acts to simplify the administrative
procedures associated with the development of industrial projects and intends
to substantially reduce permitting timelines.
This declaration highlights the XdG's commitment to promoting new investment
that will benefit the region and also support the objectives of the European
Union. Copper is considered a strategic raw material by the EU and this
project has the potential to become a new source of sustainable European
copper production.
The XdG is continuing its review according to the simplified procedures
afforded to projects with PIE status. The public information period, which
serves to inform the surrounding communities and organisations about the
proposed project, concluded on 31 January 2025. Cobre San Rafael is currently
focused on analysing and responding to the feedback submitted during the
public information period and assessing the sectoral reports issued by the
various departments of the XdG.
As a result of the changes occurred during the year, the Group considers that
it is likely that phases 2, 3 and 4 of the Touro project may be completed, and
therefore, in application of the Group's policy on contingent payments (Note
2.31), it has recorded an intangible asset amounting to €16.5 million at the
end of the year (Note 14), as well as the corresponding contingent liabilities
(note 26).
In line with the Group's policy on non-controlling interests (note 2.3), the
Group has allocated 20% of this new intangible asset in non-controlling
interests, amounting to €3.3 million (Note 25).
As described in note 14 and linked to the Group's expectation that future
phases may be completed, the Group has reversed an impairment recorded in 2019
on intangible fixed assets amounting to €6.9 million, which corresponded to
capitalised expenses associated with Proyecto Touro.
In addition, the Company continues to engage with the many stakeholders in the
region including through various recruitment initiatives, and is restoring the
water quality of the rivers around Touro by operating its water treatment
plant.
The Company also continues infill and step-out drilling programmes focused on
areas captured in the initial mine plan and where mineralisation remains open.
Proyecto Masa Valverde
On 21 October 2020, the Company announced that it entered into a definitive
purchase agreement to acquire 100% of the shares of Cambridge Mineria España,
S.L. (since renamed Atalaya Masa Valverde, S.L.U.), a Spanish company which
fully owns the Masa Valverde polymetallic project located in Huelva (Spain).
Under the terms of the agreement Atalaya will make an aggregate €1.4 million
cash payment in two instalments of approximately the same amount. The first
payment is to be executed once the project is permitted and second and final
payment when first production is achieved from the concession.
n November 2023, the exploitation permit for the Masa Valverde and Majadales
deposits was officially granted. Following this milestone, in January 2024,
the Company made a payment of €0.7 million as part of the process associated
with the granted permits.
Proyecto Ossa Morena
In December 2021, Atalaya announced the acquisition of a 51% interest in Rio
Narcea Nickel, S.L., which owned 9 investigation permits. The acquisition also
provided a 100% interest in three investigation permits that are also located
along the Ossa-Morena Metallogenic Belt. In Q3 2022, Atalaya increased its
ownership interest in POM to 99.9%, up from 51%, following completion of a
capital increase that will fund exploration activities. During 2022 Atalaya
rejected 8 investigation permits.
Atalaya will pay a total of €2.5 million in cash in three instalments and
grant a 1% net smelter return ("NSR") royalty over all acquired permits. The
first payment of €0.5 million was made following execution of the purchase
agreement. The second and third instalments of €1 million each will be made
once the environmental impact statement ("EIS") and the final mining permits
for any project within any of the investigation permits acquired under the
Transaction are secured. In accordance with the agreement, these outstanding
instalments are disclosed as a non-current payable to the sellers (Note 26).
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. After a short drilling
campaign, the Los Herreros investigation permit was rejected in June 2022.
Proyecto Riotinto East consists of the remaining two investigation permits,
Peñas Blancas and Cerro Negro, totalling 10,016 hectares.
Skellefte Belt Project and Rockliden Project
During the year, the Group entered into agreements with Mineral Prospektering
i Sverige AB in relation to the Skellefte Belt Project and the Rockliden
Project, both situated in well-established volcanogenic massive sulphide
districts renowned for their mineral resource potential. In 2024, a total of
€1.2 million in funding was provided to MPS in relation to preparatory work
for the planned winter drilling campaigns and to compensate for certain past
expenditures incurred by MPS (Note 15).
Overview of assets by mining projects
The following table presents the allocation of assets across the Company's
mining operations, distinguishing between mining assets, which include
exploration, development, and production-related investments, and non-mining
assets, covering infrastructure, equipment, and other supporting assets.
Net book value (€'000) Proyecto Touro Proyecto Ossa Morena Proyecto Masa Valverde Proyecto Riotinto Proyecto Riotinto East Total
Mining assets 31,894 2,101 3,842 441,295 50 479,182
Non-mining assets - - - 59 - 59
31,894 2,101 3,842 441,354 50 479,241
2. Summary of material accounting policies
The principal accounting policies applied in the preparation of these
consolidated and company financial statements are set out below. These
policies have been consistently applied to all the years presented, unless
otherwise stated.
2.1 Basis of preparation
(a) Overview
The consolidated financial statements of Atalaya Mining Copper, S.A. and its
subsidiaries (together, the "Group") have been prepared in accordance with
International Financial Reporting Standards ("IFRS") as adopted by the
European Union (EU). IFRS comprise the standards issued by the International
Accounting Standards Board ("IASB"), as endorsed by the EU for application by
publicly listed companies.
The consolidated financial statements are presented in Euros (€), with all
amounts rounded to the nearest thousand (€'000), unless otherwise stated.
As a Spanish company operating under EU regulations, the Group also complies
with the requirements of Spanish corporate law, including the Commercial Code
(Código de Comercio) and the Spanish Capital Companies Act (Ley de Sociedades
de Capital), where applicable. These regulations govern the preparation and
disclosure of consolidated financial statements.
The definition of Public Interest Entity ("PIE") is set out in Article 2.13 of
Directive 2006/43/EC, amended by Article 1 of Directive 2014/56/EU, that
states that it is considered to be PIEs: (a) entities governed by the law of a
Member State whose transferable securities are admitted to trading on a
regulated market of any Member State; (b) credit institutions as defined in
point 1 of Article 3(1) of Directive 2013/36/EU; (c) insurance undertakings
within the meaning of Article 2(1) of Directive 91/674/EEC; and (d) entities
designated by Member States as public-interest entities. As the company is not
included in any of the categories above, it is not considered to be a PIE.
The preparation of these financial statements in conformity with IFRS requires
the application of critical accounting estimates and judgements. Management
must exercise its best judgement when applying the Group's accounting
policies, particularly in areas involving complex transactions, estimates, and
assumptions. The key areas requiring significant judgment or estimates are
disclosed in Note 3.3.
(b) Going concern
These consolidated financial statements have been prepared on a going concern
basis, which assumes that the Group will continue to operate and meet its
financial obligations in the normal course of business.
The Directors have assessed the Group's financial position, operational
performance, and external market conditions for a period of at least 12 months
from the date of approval of these financial statements. This assessment
considered: Copper price volatility and foreign exchange fluctuations, given
their direct impact on revenue and profitability; production levels and cost
profile, ensuring the Group maintains operational efficiency and financial
resilience; capital expenditure and ongoing development projects, aligning
with the Group's strategic and operational needs; liquidity and borrowing
facilities, confirming the Group's ability to meet financial obligations as
they fall due; energy cost stability, supported by the commissioning of a
solar power plant and a long-term PPA to mitigate electricity price
volatility, regulatory and geopolitical risks, ensuring compliance with
evolving industry regulations and addressing potential global market
disruptions; copper head grade variability, with sensitivity analyses
conducted to evaluate the impact of potential fluctuations in ore quality.
Following a comprehensive review of forecasts, financial resources, and
stress-tested downside scenarios, the Directors have concluded that there are
no material uncertainties that could reasonably be expected to cast
significant doubt on the Group's ability to continue operating as a going
concern. Accordingly, the going concern basis of accounting remains
appropriate for the preparation of these consolidated financial statements.
The Directors and Management will continue to monitor external factors,
including market conditions and regulatory developments, to ensure the Group
remains well-positioned to navigate potential challenges.
2.2 Changes in accounting policy and disclosures
The Group has adopted all the new and revised IFRSs and International
Accounting Standards (IASs) which are relevant to its operations and are
effective for accounting periods commencing on 1 January 2024.
IFRS 16 (Amendment) - Lease Liability in a Sale and Leaseback
The amendment to IFRS 16 clarifies how a company should account for a sale and
leaseback transaction after the transaction date. While IFRS 16 already
includes requirements on how to recognise a sale and leaseback at the
transaction date, it did not previously specify how to record the transaction
thereafter. The amendment provides additional guidance on how entities should
measure lease liabilities that arise in a sale and leaseback transaction. This
amendment became effective from 1 January 2024. After assessment, management
has concluded that this amendment has no material impact on the Group's
consolidated financial statements.
IAS 1 (Amendment) - Classification of Liabilities as Current or Non-Current
and IAS 1 (Amendment) - Non-Current Liabilities with Covenants
The amendments to IAS 1 clarify that the classification of liabilities as
current or non-current depends on the rights that exist at the reporting date,
rather than management's expectations or post-balance sheet events (e.g.,
waivers or covenant breaches). Additionally, the amendments improve disclosure
requirements when the right to defer the settlement of a liability is
conditional on meeting covenants within 12 months after the reporting date.
These amendments became effective on 1 January 2024 and must be applied
retrospectively under IAS 8 ("Accounting Policies, Changes in Accounting
Estimates, and Errors"). After assessment, management has concluded that this
amendment has no material impact on the Group's consolidated financial
statements.
IAS 7 (Amendment) and IFRS 7 (Amendment) - Supplier Finance Arrangements
("Confirming")
The IASB has amended IAS 7 and IFRS 7 to enhance disclosure requirements for
supplier finance arrangements ("confirming") and their impact on liabilities,
cash flows, and liquidity risk exposure. These amendments address investor
concerns regarding the lack of transparency in the reporting of supplier
finance arrangements. This amendment became effective on 1 January 2024. After
assessment, management has concluded that this amendment has no material
impact on the Group's consolidated financial statements.
Standards issued but not yet effective and not yet adopted by the Group
The following amendment has been issued but is not yet effective for the
Group. While its mandatory application begins on 1 January 2025, early
adoption is permitted.
IAS 21 (Amendment) - Lack of Exchangeability
The IASB has amended IAS 21 to introduce new requirements to help entities
determine whether a currency is exchangeable into another currency and, if
not, how to determine the appropriate spot exchange rate to use. When a
currency is not exchangeable, an entity must estimate the spot exchange rate
on the valuation date, reflecting the rate at which an orderly exchange
transaction between market participants would occur under prevailing economic
conditions.
Upon initial application of this amendment, entities are not required to
restate comparative information. Instead, affected balances must be translated
using the estimated spot exchange rate at the initial application date, with
the resulting adjustment recognised in reserves.
This amendment becomes effective on 1 January 2025, with early adoption
permitted. Following our assessment, we have determined that this amendment
does not have a material impact on the Group's consolidated financial
statements.
Standards, Interpretations, and Amendments to Existing Standards Not Yet
Endorsed by the European Union or Not Available for Early Adoption
As of the date of preparation of these consolidated financial statements, the
IASB and the IFRS Interpretations Committee have issued the following
standards, amendments, and interpretations that are still pending endorsement
by the European Union.
Since these standards cannot yet be adopted, we have assessed their potential
impact on the Group's consolidated financial statements once they become
applicable.
IFRS 10 (Amendment) and IAS 28 (Amendment) - Sale or Contribution of Assets
Between an Investor and Its Associate or Joint Venture
These amendments clarify the accounting treatment for sales and contributions
of assets between an investor and its associates or joint ventures, depending
on whether the non-monetary assets transferred constitute a "business" under
IFRS 3. If the assets qualify as a business, the investor must recognise the
full gain or loss on the transaction. Otherwise, the investor recognises only
the portion of the gain or loss attributable to other investors.
Originally, these amendments were set to be applied prospectively from 1
January 2016, but in late 2015, the IASB postponed their effective date
indefinitely, pending a broader review of the accounting treatment for
associates and joint ventures. As these amendments remain indefinitely
deferred and pending EU endorsement, their potential impact on the Group has
adopted the following accounting policy in accordance with IAS 8:
Since the Group does not engage in business combinations, the sale or
contribution of assets to a joint venture is accounted for by recognising only
the portion of the gain or loss attributable to other investors in the joint
venture.
IFRS 18 - Presentation and Disclosures in Financial Statements
IFRS 18 is a newly issued standard that replaces IAS 1 (Presentation of
Financial Statements) while retaining many of its core principles. However, it
introduces key changes, including:
A structured format for the income statement, requiring specific totals and
subtotals and categorising items into five sections: operating, investing,
financing, income taxes, and discontinued operations.
Disclosure requirements for performance measures reported in financial
statements (management-defined performance measures).
Enhanced aggregation and disaggregation principles applicable to both primary
financial statements and notes.
Although IFRS 18 does not affect recognition or measurement principles, it may
alter how entities present their operating result.
This standard becomes effective from 1 January 2027, including interim
financial statements, and requires retrospective application. Early adoption
is permitted, but it is still pending EU endorsement.
Following our preliminary assessment, IFRS 18 is expected to impact the
presentation and disclosures in the Group's consolidated financial statements
but will not affect recognition or measurement principles.
IFRS 19 - Subsidiaries Without Public Accountability: Disclosures
IFRS 19 is a new standard designed for subsidiaries without public
accountability whose parent company applies full IFRS in its consolidated
financial statements. It allows such subsidiaries to follow IFRS recognition
and measurement principles while applying reduced disclosure requirements.
This voluntary standard applies to subsidiaries preparing consolidated,
separate, or individual financial statements, provided that local regulations
permit its use.
IFRS 19 becomes effective from 1 January 2027, with early adoption permitted,
but it is still pending EU endorsement.
This standard is not expected to have a material impact on the Group's
consolidated financial statements, as its applicability depends on the status
of subsidiaries and local regulatory requirements.
IFRS 9 (Amendment) and IFRS 7 (Amendment) - Classification and Measurement of
Financial Instruments
These amendments clarify and refine the classification and derecognition of
certain financial instruments, including:
Clarification of the recognition and derecognition date for specific financial
assets and liabilities, with a new exception for certain liabilities settled
through electronic cash transfer systems. Additional guidance on assessing
whether a financial asset meets the solely payments of principal and interest
(SPPI) criterion. New disclosure requirements for financial instruments with
contractual terms that can alter cash flows, including ESG-linked financial
instruments. Updates to disclosure requirements for equity instruments
measured at fair value through other comprehensive income (FVOCI).
While the amendments related to the SPPI criterion mainly affect financial
institutions, the changes regarding recognition, ESG-linked instruments, and
disclosures are relevant to all entities.
These amendments become effective from 1 January 2026, with early adoption
permitted but pending EU endorsement. The amendments may introduce additional
disclosure requirements, but they are not expected to have a significant
impact on the Group's recognition and measurement of financial instruments.
IFRS Annual Improvements - Volume 11
The IASB's Annual Improvements process addresses minor amendments to IFRS to
eliminate inconsistencies and improve clarity. The 11th volume includes
changes to the following standards:
IFRS 1 - First-time Adoption of IFRS
IFRS 7 - Financial Instruments: Disclosures
IFRS 9 - Financial Instruments
IFRS 10 - Consolidated Financial Statements
IAS 7 - Statement of Cash Flows
These amendments become effective from 1 January 2026, pending EU endorsement.
The impact of these improvements is expected to be limited, as they primarily
clarify existing guidance rather than introduce substantial changes.
IFRS 9 (Amendment) and IFRS 7 (Amendment) - Electricity Supply Contracts
Linked to Natural Variability
These amendments address the accounting for electricity supply contracts
dependent on natural conditions (e.g., wind and solar energy), helping
entities reflect these contracts more accurately in their financial
statements. The key changes include:
Clarification of the "own use" exemption for electricity contracts.
Allowing hedge accounting for certain contracts when used as hedging
instruments.
New disclosure requirements to improve transparency regarding the financial
impact of such contracts.
These amendments become effective from 1 January 2026, pending EU endorsement.
The amendments may require additional disclosures, particularly if the Group
enters into renewable energy contracts, but they are not expected to have a
material impact on recognition or measurement principles.
2.3 Consolidation
The consolidated financial statements include the financial statements of
Atalaya Mining Copper, S.A. and its subsidiaries, each prepared up to 31
December, together with the attributable share of results and reserves of
associates and joint ventures, adjusted where necessary to conform to the
Group's accounting policies.
Subsidiaries are consolidated from the date of acquisition, which is the date
on which the Group obtains control and continue to be consolidated until the
date such control ceases. Control exists when the Group is exposed to, or has
rights to, variable returns from its involvement with an entity and has the
ability to affect those returns through its power over the entity.
The Group reassesses control whenever facts and circumstances indicate that
one or more of the elements of control may have changed.
A subsidiary is an entity that is controlled by the Group. Control exists when
the Group has the power to govern the financial and operating policies of an
entity to obtain benefits from its activities. This control is typically
achieved through ownership of more than 50% of the voting rights, either
directly or indirectly.
The Group also considers the existence of potential voting rights, which are
currently exercisable or convertible, in its assessment of control.
Additionally, de facto control may exist where the Group's voting rights,
relative to the size and dispersion of other shareholders, give it the power
to direct the financial and operating policies of the entity.
If the Group's ownership interest in a subsidiary change but control is
retained, the transaction is accounted for as an equity transaction.
If the Group loses control of a subsidiary, it:
- Derecognises the subsidiary's assets, liabilities,
non-controlling interests, and other equity components.
- Recognises any resulting gain or loss in profit or loss.
- Recognises any retained investment at fair value on the date
control is lost.
All intragroup balances, transactions, income, and expenses, including
unrealised profits and losses on transactions within the Group, are eliminated
in full in preparing the consolidated financial statements.
The name and shareholding of the entities included in the Group in these
financial statements are:
Entity name Business %((2)) Country
Atalaya Mining Copper, S.A. (former Atalaya Mining Plc) Holding n/a Spain
EMED Marketing Ltd. Trade 100% Cyprus
Atalaya Riotinto Minera, S.L.U. Operating 100% Spain
Recursos Cuenca Minera, S.L. ((3)) Dormant 50% Spain
Atalaya Minasderiotinto Project (UK), Ltd. Holding 100% United Kingdom
Eastern Mediterranean Exploration & Development, S.L.U. Dormant 100% Spain
Atalaya Touro (UK), Ltd. Holding 100% United Kingdom
Fundación ARM Trust 100% Spain
Cobre San Rafael, S.L. ((1)) Development 10% Spain
Atalaya Servicios Mineros, S.L.U. Holding 100% Spain
Atalaya Masa Valverde, S.L.U. Development 100% Spain
Atalaya Financing Ltd. Financing 100% Cyprus
Atalaya Ossa Morena, S.L. Development 99.9% Spain
Iberian Polimetal S.L. Development 100% Spain
Notes
((1) ) Cobre San Rafael, S.L. is the entity which holds the
mining rights of the Proyecto Touro. The Group has control in the management
of Cobre San Rafael, S.L., including one of the two Directors, management of
the financial books.
((2) ) The effective proportion of shares held as at 31 December
2024 and 31 December 2023 remained unchanged.
((3) ) Recursos Cuenca Minera is a joint venture with ARM, see
note 16.
The Group applies the acquisition method to account for business combinations.
The consideration transferred for the acquisition of a subsidiary is the fair
value of the transferred assets, liabilities incurred by the former owners of
the acquiree, and the equity interests issued by the Group. The consideration
transferred includes the fair value of any asset or liability resulting from a
contingent consideration arrangement. Identifiable assets acquired,
liabilities and contingent liabilities assumed in a business combination are
measured initially at fair value at the acquisition date. The Group recognised
any non-controlling interest in the acquiree on an acquisition-by-acquisition
basis, either at fair value or at the non-controlling interest's proportionate
share of the recognised amounts of acquiree's identifiable net assets.
Non-controlling interests in the results and equity of subsidiaries are shown
separately in the consolidated statement of profit or loss, statement of
comprehensive income, statement of changes in equity and statement of
financial position.
If there are contractual arrangements that determine the attribution of
earnings, such as a profit-sharing agreement or the attribution specified by
the arrangement the non-controlling interest will be presented accordingly.
Otherwise, the relative ownership interests in the entity should be used if
the parent's ownership and the non-controlling interest's ownership in the
assets and liabilities are proportional.
When contractual profit-sharing arrangement changes over time, the earnings
allocation to the non-controlling interest should be based on its present
entitlement.
(a) Acquisition-related costs are expensed as incurred
If the business combination is achieved in stages, the acquisition date
carrying value of the acquirer's previously held equity interest in the
acquire is re-measured to fair value at the acquisition date; any gains or
losses arising from such re-measurement are recognised in profit or loss.
Any contingent consideration to be transferred by the Group is recognised at
fair value at the acquisition date. Subsequent changes to the fair value of
the contingent consideration that is deemed to be an asset or liability is
recognised in accordance with IFRS 9 in profit or loss. Contingent
consideration that is classified as equity is not re-measured, and its
subsequent settlement is accounted for within equity.
Inter-company transactions, balances, income and expenses on transactions
between Group companies are eliminated. Gains and losses resulting from
intercompany transactions that are recognised in assets are also eliminated.
Accounting policies of subsidiaries have been changed where necessary to
ensure consistency with the policies adopted by the Group.
(d) Changes in ownership interests in subsidiaries without change of control
Transactions with non-controlling interests that do not result in loss of
control are accounted for as equity transactions - that is, as transactions
with the owners in their capacity as owners. The difference between fair value
of any consideration paid and the relevant share acquired of the carrying
value of net assets of the subsidiary is recorded in equity. Gains or losses
on disposals to non-controlling interests are also recorded in equity.
(b) Disposal of subsidiaries
When the Group ceases to have control any retained interest in the entity is
re-measured to its fair value at the date when control is lost, with the
change in carrying amount recognised in profit or loss. The fair value is the
initial carrying amount for the purposes of subsequently accounting for the
retained interest as an associate, joint venture or financial asset. In
addition, any amounts previously recognised in other comprehensive income in
respect of that entity are accounted for as if the Group had directly disposed
of the related assets or liabilities. This may mean that amounts previously
recognised in other comprehensive income are reclassified to profit or loss.
(c) Associates and joint ventures
An associate is an entity over which the Group has significant influence.
Significant influence is the power to participate in the financial and
operating policy decisions of the investee (generally accompanying a
shareholding of between 20% and 50% of the voting rights) but is not control
or joint control over those policies.
A joint venture is a type of joint arrangement whereby the parties that have
joint control of the arrangement have rights to the net assets of the joint
venture. Joint control is the contractually agreed sharing of control of an
arrangement, which exists only when decisions about the relevant activities
require the unanimous consent of the parties sharing control.
Investments in associates or joint ventures are accounted for using the equity
method of accounting. Under the equity method, the investment is initially
recognised at cost, and the carrying amount is increased or decreased to
recognise the investor's share of the profit or loss of the investee after the
date of acquisition. The Group's investment in associates or joint ventures
includes goodwill identified on acquisition.
If the ownership interest in an associate or joint venture is reduced but
significant influence is retained, only a proportionate share of the amounts
previously recognised in other comprehensive income is reclassified to profit
or loss where appropriate.
The Group's share of post-acquisition profit or loss is recognised in the
income statement, and its share of post-acquisition movements in other
comprehensive income is recognised in other comprehensive income, with a
corresponding adjustment to the carrying amount of the investment. When the
Group share of losses in an associate or a joint venture equals or exceeds its
interest in the associate or joint venture, including any other unsecured
receivables, the Group does not recognise further losses, unless it has
incurred legal or constructive obligations or made payments on behalf of the
associate or the joint venture.
The Group determines at each reporting date whether there is any objective
evidence that the investment in the associate or the joint venture is
impaired. If this is the case, the Group calculates the amount of impairment
as the difference between the recoverable amount of the associate or the joint
venture and its carrying value and recognises the amount adjacent to 'share of
profit/(loss) of associates' or joint ventures' in the income statement.
Profits and losses resulting from upstream and downstream transactions between
the Group and its associate or joint venture are recognised in the Group's
consolidated financial statements only to the extent of unrelated investors'
interests in the associates or the joint ventures. Unrealised losses are
eliminated unless the transaction provides evidence of an impairment of the
asset transferred. Accounting policies of associates have been changed where
necessary to ensure consistency with the policies adopted by the Group.
Dilution gains and losses arising in investments in associates or joint
ventures are recognised in the income statement.
(d) Functional currency
Functional and presentation currency items included in the financial
statements of each of the Group's entities are measured using the currency of
the primary economic environment in which the entity operates ('the functional
currency'). The financial statements are presented in Euro which is the
Company's functional and presentation currency.
Determination of functional currency may involve certain judgements to
determine the primary economic environment and the parent entity reconsiders
the functional currency of its entities if there is a change in events and
conditions which determined the primary economic environment.
Foreign currency transactions are translated into the functional currency
using the spot exchange rates prevailing at the dates of the transactions or
valuation where items are re-measured. Foreign exchange gains and losses
resulting from the settlement of such transactions are recognised in the
income statement.
Monetary assets and liabilities denominated in foreign currencies are updated
at year-end spot exchange rates.
Non-monetary items that are measured at historical cost in a foreign currency
are translated using the exchange rates at the dates of the initial
transaction. Non-monetary items measured at fair value in a foreign currency
are translated using the exchange rates at the date when the fair value was
determined.
Gains or losses of monetary and non-monetary items are recognised in the
income statement.
Balance sheet items are translated at period-end exchange rates. Exchange
differences on translation of the net assets of such entities whose functional
currency are not the Euro are taken to equity and recorded in a separate
currency translation reserve.
e) Care and Maintenance Expenditure
Care and maintenance expenditure includes costs incurred to maintain assets
and infrastructure in an operationally ready state during periods of reduced
or suspended activity. These costs may relate to preparatory works for
potential projects, ongoing maintenance of assets not currently in active
production, or regulatory compliance obligations.
Under IFRS, these expenditures are classified below gross profit in the
statement of comprehensive income because they are not directly attributable
to revenue-generating operations. Instead, they represent period costs
incurred while assets are not in active use, and therefore, are recognised as
an operating expense rather than part of cost of sales.
2.4 Interest in joint arrangements
A joint arrangement is a contractual arrangement whereby the Group and other
parties undertake an economic activity that is subject to joint control that
is when the strategic, financial and operating policy decisions relating to
the activities the joint arrangement require the unanimous consent of the
parties sharing control.
Where a Group entity undertakes its activities under joint arrangements
directly, the Group's share of jointly controlled assets and any liabilities
incurred jointly with other ventures are recognised in the financial
statements of the relevant entity and classified according to their nature.
Liabilities and expenses incurred directly in respect of interests in jointly
controlled assets are accounted for on an accrual basis. Income from the sale
or use of the Group's share of the output of jointly controlled assets, and
its share of joint arrangement expenses, are recognised when it is probable
that the economic benefits associated with the transactions will flow to/from
the Group and their amount can be measured reliably.
The Group enters joint arrangements that involve the establishment of a
separate entity in which each acquiree has an interest (jointly controlled
entity). The Group reports its interests in jointly controlled entities using
the equity method of accounting.
Where the Group transacts with its jointly controlled entities, unrealised
profits and losses are eliminated to the extent of the Group's interest in the
joint arrangement.
2.5 Segment reporting
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision-maker. The chief operating
decision-maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the CEO who
makes strategic decisions.
The Group has only one distinct business segment, being that of mining
operations, mineral exploration and development.
2.6 Inventory
Inventory consists of copper concentrates, ore stockpiles and metal in circuit
and spare parts. Inventory is physically measured or estimated and valued at
the lower of cost or net realisable value. Net realisable value is the
estimated future sales price of the product the entity expects to realise when
the product is processed and sold, less estimated costs to complete production
and bring the product to sale. Where the time value of money is material,
these future prices and costs to complete are discounted.
Cost is determined by using the FIFO method and comprises direct purchase
costs and an appropriate portion of fixed and variable overhead costs,
including depreciation and amortisation, incurred in converting materials into
finished goods, based on the normal production capacity. The cost of
production is allocated to joint products using a ratio of spot prices by
volume at each month end. Separately identifiable costs of conversion of each
metal are specifically allocated.
Materials and supplies are valued at the lower of cost or net realisable
value. Any provision for obsolescence is determined by reference to specific
items of stock. A regular review is undertaken to determine the extent of any
provision for obsolescence.
2.7 Assets under construction
All subsequent expenditure on the construction, installation or completion of
infrastructure facilities including mine plants and other necessary works for
mining, are capitalised in "Assets under Construction". Any costs incurred in
testing the assets to determine if they are functioning as intended, are
capitalised.
Revenue and costs from pre-commissioning sales
In accordance with IAS 16 (Amendment, paragraph 20A), proceeds from selling
any product produced during the testing phase are recognised as revenue in the
statement of profit or loss, and the related production costs are recognised
in accordance with IAS 2 Inventories. These proceeds are not offset against
the cost of assets under construction.
Capitalisation of development expenditure
Development expenditure, including expenditure on intangible assets, is
capitalised when it meets the recognition criteria under IFRS. Specifically,
expenditure is capitalised when:
- It is directly attributable to preparing the asset for its
intended use, including feasibility studies, pilot plant costs, engineering
and design costs, and other costs necessary for the development of the asset.
- The technical and commercial feasibility of the project has been
demonstrated, and it is probable that the expenditure will generate future
economic benefits.
- The project is determined to be commercially viable, based on an
assessment of project economics, including market conditions, resource
estimates, expected operating and capital costs, and management's strategic
intent.
- For intangible assets, capitalisation applies to
development-phase expenditures when the future economic benefits of the asset
are probable. Costs incurred before feasibility is demonstrated, or those
related to general research activities, are expensed as incurred.
- The project is determined to be commercially viable, based on an
assessment of project economics, including market conditions, resource
estimates, expected operating and capital costs, and management's strategic
intent.
Reversal of Impairment
An impairment loss previously recognised on an asset, including capitalised
intangible expenditure, is reversed when there is an indication that the
impairment conditions no longer exist or have changed. The reversal occurs
when:
- There is new evidence supporting the recoverability of the
asset, such as technological or economic developments, improved market
conditions, or additional data confirming its future economic benefits.
- The asset's recoverable amount, determined as the higher of fair
value less costs of disposal and value in use, exceeds its previously impaired
carrying amount.
- The initial impairment was not due to obsolescence or permanent
damage that would prevent the asset from generating future economic benefits.
The reversal is recognised in the income statement up to the amount that would
have been recognised had the original impairment not occurred, in line with
IAS 36 Impairment of Assets.
Depreciation commencement
Depreciation is not recognised until the assets are substantially complete and
ready for productive use. At that point, all capitalised amounts within
"Assets under Construction" are transferred to the relevant asset categories
and depreciation begins in accordance with the Group's accounting policy.
2.8 Property, plant and equipment
Property, plant and equipment are stated at historical cost less accumulated
depreciation and any accumulated impairment losses.
Subsequent costs are included in the assets' carrying amount or recognised as
a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Group and the cost
of the item can be measured reliably. The carrying amount of the replaced part
is derecognised. All other repairs and maintenance are charged to the income
statement during the financial period in which they are incurred.
Property, plant and equipment are depreciated to their estimated residual
value over the estimated useful life of the specific asset concerned, or the
estimated remaining life of the associated mine ("LOM"), field or lease.
Depreciation commences when the asset is available for use.
The major categories of property, plant and equipment are
depreciated/amortised on a Unit of Production ("UOP") and/or straight-line
basis as follows:
Land and buildings UOP
Deferred mining costs UOP
Plant and equipment UOP
Other assets: Furniture/fixtures/office equipment/Motor vehicles 5 - 10 years
Right of use assets (IFRS 16) UOP
The Group reviews the estimated residual values and expected useful lives of
assets at least annually. In particular, the Group considers the impact of
health, safety and environmental legislation in its assessment of expected
useful lives and estimated residual values. Furthermore, the Group considers
climate-related matters, including physical and transition risks.
Specifically, the Group determines whether climate-related legislation and
regulations might impact either the useful life or residual values, e.g., by
banning or restricting the use of the Group's fossil fuel-driven machinery and
equipment or imposing additional energy efficiency requirements on the Group's
buildings and office properties. An asset's carrying amount is written down
immediately to its recoverable amount if the asset's carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with
the carrying amount and are recognised within "Other income" in the income
statement.
(a) Mineral rights
Mineral reserves and resources which can be reasonably valued are recognised
in the assessment of fair values on acquisition. Mineral rights for which
values cannot be reasonably determined are not recognised. Exploitable mineral
rights are amortised using the UOP basis over the commercially recoverable
reserves and, in certain circumstances, other mineral resources. Mineral
resources are included in amortisation calculations where there is a high
degree of confidence that they will be extracted in an economic manner.
(b) Deferred mining costs - stripping costs
Mainly comprises of certain capitalised costs related to pre-production and
in-production stripping activities as outlined below.
Stripping costs incurred in the development phase of a mine (or pit) before
production commences are capitalised as part of the cost of constructing the
mine (or pit) and subsequently amortised over the life of the mine (or pit) on
a UOP basis.
In-production stripping costs related to accessing an identifiable component
of the ore body to realise benefits in the form of improved access to ore to
be mined in the future (stripping activity asset), are capitalised within
deferred mining costs provided all the following conditions are met:
i. it is probable that the future economic benefit associated with
the stripping activity will be realised;
ii. the component of the ore body for which access has been improved
can be identified and;
iii. the costs relating to the stripping activity associated with the
improved access can be reliably measured.
If all of the criteria are not met, the production stripping costs are charged
to the consolidated statement of income as they are incurred.
The stripping activity asset is initially measured at cost, which is the
accumulation of costs directly incurred to perform the stripping activity that
improves access to the identified component of ore, plus an allocation of
directly attributable overhead costs.
(c) Exploration costs
Under the Group's accounting policy, exploration expenditure is not
capitalised until the management determines a property will be developed and
point is reached at which there is a high degree of confidence in the
project's viability and it is considered probable that future economic
benefits will flow to the Group. A development decision is made based upon
consideration of project economics, including future metal prices, reserves
and resources, and estimated operating and capital costs.
Subsequent recovery of the resulting carrying value depends on successful
development or sale of the undeveloped project. If a project does not prove
viable, all irrecoverable costs associated with the project net of any related
impairment provisions are written off.
(d) Major maintenance and repairs
Expenditure on major maintenance refits or repairs comprises the cost of
replacement assets or parts of assets and overhaul costs. Where an asset, or
part of an asset, that was separately depreciated and is now written off is
replaced, and it is probable that future economic benefits associated with the
item will flow to the Group through an extended life, the expenditure is
capitalised.
Where part of the asset was not separately considered as a component and
therefore not depreciated separately, the replacement value is used to
estimate the carrying amount of the replaced asset(s) which is immediately
written off. All other day-to-day maintenance and repairs costs are expensed
as incurred.
(e) Borrowing costs
Borrowing costs directly and indirectly attributable to the acquisition,
construction or production of an asset that necessarily takes a substantial
period of time to get ready for its intended use or sale (a qualifying asset)
are capitalised as part of the cost of the respective asset. Where funds are
borrowed specifically to finance a project, the amount capitalised represents
the actual borrowing costs incurred. All other borrowing costs are recognised
in the statement of profit or loss and other comprehensive income in the
period in which they are incurred.
(f) Restoration, rehabilitation and decommissioning
Restoration, rehabilitation and decommissioning costs arising from the
installation of plant and other site preparation work, discounted using a risk
adjusted discount rate to their net present value, are provided for and
capitalised at the time such an obligation arises.
The costs are charged to the consolidated statement of income over the life of
the operation through depreciation of the asset and the unwinding of the
discount on the provision. Costs for restoration of subsequent site
disturbance, which are created on an ongoing basis during production, are
provided for at their net present values and charged to the consolidated
statement of income as extraction progresses.
Changes in the estimated timing of the rehabilitation or changes to the
estimated future costs are accounted for prospectively by recognising an
adjustment to the rehabilitation liability and a corresponding adjustment to
the asset to which it relates, provided the reduction in the provision is not
greater than the depreciated capitalised cost of the related asset, in which
case the capitalised cost is reduced to zero and the remaining adjustment
recognised in the consolidated statement of income. In the case of closed
sites, changes to estimated costs are recognised immediately in the
consolidated statement of income.
2.9 Intangible assets
(a) Permits
Permits represent legal rights, licences, and authorisations required to
advance mining projects from the pre-development stage to production. Costs
directly attributable to obtaining and securing these permits are capitalised
as intangible assets, provided they meet the recognition criteria of IAS 38 -
Intangible Assets. These costs typically include application fees,
environmental and engineering studies, legal expenses, and other necessary
expenditures incurred to obtain the permits.
No amortisation is recognised on these intangible assets until the associated
project transitions into commercial production. Once the Group receives the
required permits and commences production, the capitalised permit costs are
amortised using the UOP method, based on the commercially recoverable reserves
of the related mining project.
If at any stage it is determined that the permit will not be utilised due to
project discontinuation or regulatory changes, the capitalised costs are
immediately impaired and recognised as an expense in the consolidated
statement of profit or loss. The Group will recurrently evaluate the status of
the project. Should subsequently evaluation of the project determine the
underlying reasons to determine the permit would not be utilised are
reasonable reversed or mitigated, the Group may reverse the impairment
consequently.
(b) Other intangible assets include computer software.
Intangible assets acquired separately are measured on initial recognition at
cost. The cost of intangible assets acquired in a business combination is
their fair value at the date of acquisition provided they meet recognition
criteria as per IFRS 3. Following initial recognition, intangible assets are
carried at cost less any accumulated amortisation (calculated on a
straight-line basis over their useful lives) and accumulated impairment
losses, if any.
The useful lives of intangible assets are assessed as either finite or
indefinite.
Intangible assets with finite lives are amortised over their useful economic
lives and assessed for impairment whenever there is an indication that the
intangible asset may be impaired. The amortisation period and the amortisation
method for an intangible asset with a finite useful life are reviewed at least
at the end of each reporting period.
Gains or losses arising from derecognition of an intangible asset are measured
as the difference between the net disposal proceeds and the carrying amount of
the asset and are recognised in the consolidated and company statements of
comprehensive income when the asset is derecognised.
2.10 Impairment of non-financial assets
Assets that have an indefinite useful life - for example, goodwill or
intangible assets not ready for use - are not subject to amortisation and are
tested annually for impairment. Assets that are subject to amortisation are
reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the asset's carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset's fair
value less costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (cash-generating units). Non-financial
assets other than goodwill that suffered impairment are reviewed for possible
reversal of the impairment at each reporting date.
The Group assesses whether climate risks, including physical risks and
transition risks could have a significant impact.
2.11 Financial assets and liabilities
(a) Classification
The Group classifies its financial assets in the following measurement
categories:
• those to be measured at amortised cost.
• those to be measured subsequently at fair value through
OCI, and.
• those to be measured subsequently at fair value through
profit or loss.
The classification of financial assets at initial recognition depends on the
financial asset's contractual cash flow characteristics and the Group's and
the Company's business model for managing them. In order for a financial asset
to be classified and measured at amortised cost, it needs to give rise to cash
flows that are 'solely payments of principal and interest' ('SPPI') on the
principal amount outstanding. This assessment is referred to as the SPPI test
and is performed at an instrument level.
For assets measured at fair value, gains and losses will either be recorded in
profit or loss or OCI. For investments in equity instruments that are not held
for trading, this will depend on whether the group has made an irrevocable
election at the time of initial recognition to account for the equity
investment at fair value through other comprehensive income (FVOCI).
The Group reclassifies debt investments when and only when its business model
for managing those assets changes.
Regular way purchases and sales of financial assets are recognised on
trade-date, the date on which the Group commits to purchase or sell the
asset.
At initial recognition, the Group measures a financial asset at its fair value
plus, in the case of a financial asset not at fair value through profit or
loss (FVPL), transaction costs that are directly attributable to the
acquisition of the financial asset. Transaction costs of financial assets
carried at FVPL are expensed in profit or loss.
Financial assets with embedded derivatives are considered in their entirety
when determining whether their cash flows are solely payment of principal and
interest.
Subsequent measurement of debt instruments depends on the Group's business
model for managing the asset and the cash flow characteristics of the asset.
There are three measurement categories into which the Group classifies its
debt instruments:
(b) Amortised cost
Assets that are held for collection of contractual cash flows where those cash
flows represent solely payments of principal and interest are measured at
amortised cost. Interest income from these financial assets is included in
finance income using the effective interest rate method. Any gain or loss
arising on derecognition is recognised directly in profit or loss and
presented in other gains/(losses) together with foreign exchange gains and
losses.
Impairment losses are presented as separate line item in the statement of
profit or loss.
The Company´s financial assets at amortised cost include current and
non-current receivables (other than trade receivables which are measured at
fair value through profit and loss) and cash and cash equivalents.
(c) Fair value through other comprehensive income
Financial assets which are debt instruments, that are held for collection of
contractual cash flows and for selling the financial assets, where the assets'
cash flows represent solely payments of principal and interest, are measured
at FVOCI. Movements in the carrying amount are taken through OCI, except for
the recognition of impairment gains or losses, interest income and foreign
exchange gains and losses which are recognised in profit or loss. When the
financial asset is derecognised, the cumulative gain or loss previously
recognised in OCI is reclassified from equity to profit or loss and recognised
in other gains/(losses). Interest income from these financial assets is
included in finance income using the effective interest rate method. Foreign
exchange gains and losses are presented in net foreign exchange gain/(loss)
before tax and impairment expenses are presented as a separate line item in
the statement of profit or loss.
(d) Equity instruments designated as fair value through other comprehensive
income
Upon initial recognition, the Group can elect to classify irrevocably its
equity investments as equity instruments designated at fair value through OCI
when they meet the definition of equity under IAS 32 Financial Instruments:
Presentation and are not held for trading. The classification is determined on
an instrument-by-instrument basis.
Gains and losses on these financial assets are never recycled to profit or
loss. Dividends are recognised as other income in the consolidated and company
statements of comprehensive income when the right of payment has been
established, except when the Group benefits from such proceeds as a recovery
of part of the cost of the financial asset, in which case, such gains are
recorded in OCI. Equity instruments designated at fair value through OCI are
not subject to impairment assessment.
The Group elected to classify irrevocably its listed equity investments under
this category.
(e) Assets at fair value through profit and loss
Assets that do not meet the criteria for amortised cost or FVOCI are measured
at FVPL. A gain or loss on a debt investment that is subsequently measured at
FVPL is recognised as profit or loss and presented net within other
gains/(losses) in the period in which it arises.
Changes in the fair value of financial assets at FVPL are recognised in the
consolidated and company statements of comprehensive income as applicable. The
Company's and Group's financial assets at fair value through profit and loss
include current and non-current receivables (other than trade receivables
which are measured at amortised cost).
(f) De-recognition of financial assets
Financial assets are derecognised when the rights to receive cash flows from
the financial assets have expired or have been transferred and the Group has
transferred substantially all the risks and rewards of ownership.
(g) Impairment of financial assets
The Group assesses on a forward looking basis the expected credit losses
associated with its debt instruments carried at amortised cost. Expected
credit losses are based on the difference between the contractual cash flows
due in accordance with the contract and all the cash flows that the Group
expects to receive, discounted at an approximation of the original effective
interest rate. The expected cash flows will include cash flows from the sale
of collateral held or other credit enhancements that are integral to the
contractual terms.
For receivables (other than trade receivables which are measured at FVPL), the
Group applies the simplified approach permitted by IFRS 9, which requires
expected lifetime losses to be recognised from initial recognition of the
receivables.
The Group considers a financial asset in default when contractual payments are
90 days past due. However, in certain cases, the Group may also consider a
financial asset to be in default when internal or external information
indicates that the Group is unlikely to receive the outstanding contractual
amounts in full before taking into account any credit enhancements held by the
Group. A financial asset is written off when there is no reasonable
expectation of recovering the contractual cash flows and usually occurs when
past due for more than one year and not subject to enforcement activity.
(h). Financial liabilities and trade payables
After initial recognition, interest-bearing loans and borrowings and trade and
other payables are subsequently measured at amortised cost using the EIR
method. Gains and losses are recognised in the consolidated and company
statements of comprehensive income when the liabilities are derecognised, as
well as through the EIR amortisation process.
Amortised cost is calculated by taking any discount or premium on acquisition
and fees or costs that are an integral part of the EIR, into account. The EIR
amortisation is included as finance costs in the consolidated and company
statements of comprehensive income
2.12 Current versus Non-current Classification
The Group presents assets and liabilities in the consolidated and company
statements of financial position based on current/non-current classification.
(a) An asset is current when it is either:
· Expected to be realised or intended to be sold or consumed in
normal operating cycle;
· Held primarily for the purpose of trading;
· Expected to be realised within 12 months after the reporting
period
Or
· Cash or cash equivalent unless restricted from being exchanged or
used to settle a liability for at least 12 months after the reporting period
All other assets are classified as non-current.
(b) A liability is current when either:
· It is expected to be settled in the normal operating cycle;
· It is held primarily for the purpose of trading
· It is due to be settled within 12 months after the reporting
period
Or
· There is no unconditional right to defer the settlement of the
liability for at least 12 months after the reporting period
The Group classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and
liabilities.
2.13 Cash and cash equivalents
In the consolidated statements of cash flows, cash and cash equivalents
includes cash in hand and cash at bank, as well as short-term deposits with
banks that have an original maturity of less than three months from the date
of acquisition.
2.14 Provisions
Provisions are recognised when: The Group has a present legal or constructive
obligation as a result of past events; it is probable that an outflow of
resources will be required to settle the obligation; and the amount has been
reliably estimated. Provisions are not recognised for future operating losses.
2.15 Interest-bearing loans and borrowings
Where there are a number of similar obligations, the likelihood that an
outflow will be required in settlement is determined by considering the class
of obligations as a whole. A provision is recognised even if the likelihood of
an outflow with respect to any one item included in the same class of
obligations may be small. Provisions are measured at the present value of the
expenditures expected to be required to settle the obligation using a pre-tax
rate that reflects current market assessments of the time value of money and
the risks specific to the obligation. The increase in the provision due to
passage of time is recognised as interest expense.
Borrowings are recognised initially at fair value, net of transaction costs
incurred. Borrowings are subsequently stated at amortised cost. Any difference
between the proceeds (net of transaction costs) and the redemption value is
recognised in profit or loss over the period of the borrowings, using the
effective interest method, unless they are directly attributable to the
acquisition, construction or production of a qualifying asset, in which case
they are capitalised as part of the cost of that asset.
Fees paid on the establishment of loan facilities are recognised as
transaction costs of the loan to the extent that it is probable that some or
all of the facility will be drawn down. In this case, the fee is deferred
until the draw-down occurs. To the extent there is no evidence that it is
probable that some or all of the facility will be drawn down, the fee is
capitalised as a prepayment and amortised over the period of the facility to
which it relates.
Borrowing costs are interest and other costs that the Group incurs in
connection with the borrowing of funds, including interest on borrowings,
amortisation of discounts or premium relating to borrowings, amortisation of
ancillary costs incurred in connection with the arrangement of borrowings,
finance lease charges and exchange differences arising from foreign currency
borrowings to the extent that they are regarded as an adjustment to interest
costs.
2.16 Deferred consideration
Deferred consideration arises when settlement of all or any part of the cost
of an agreement is deferred. It is stated at fair value at the date of
recognition, which is determined by discounting the amount due to present
value at that date. Interest is imputed on the fair value of
non-interest-bearing deferred consideration at the discount rate and expensed
within interest payable and similar charges. At each balance sheet date
deferred consideration comprises the remaining deferred consideration valued
at acquisition plus interest imputed on such amounts from recognition to the
balance sheet date.
2.17 Share capital
Ordinary shares are classified as equity. The difference between the fair
value of the consideration received by the Company and the nominal value of
the share capital being issued is taken to the share premium account.
Incremental costs directly attributable to the issue of new ordinary shares
are shown in equity as a deduction, net of tax, from the proceeds in the share
premium account.
2.18 Current and deferred income tax
The tax expense for the period comprises current and deferred tax. Tax is
recognised in the income statement, except to the extent that it relates to
items recognised in other comprehensive income or directly in equity. In this
case, the tax is also recognised in other comprehensive income or directly in
equity, respectively.
The current income tax charge is calculated on the basis of the tax laws
enacted or substantively enacted at the end of the reporting period date in
the countries where the Company and its subsidiaries operate and generate
taxable income. Management periodically evaluates positions taken in tax
returns with respect to situations in which applicable tax regulation is
subject to interpretation. It establishes provisions where appropriate on the
basis of amounts expected to be paid to the tax authorities.
Deferred income tax is recognised, using the liability method, on temporary
differences arising between the tax bases of assets and liabilities and their
carrying amounts in the consolidated financial statements. However, deferred
tax liabilities are not recognised if they arise from the initial recognition
of goodwill; deferred income tax is also not recognised if it arises from
initial recognition of an asset or liability in a transaction other than a
business combination that at the time of the transaction affects neither
accounting nor taxable profit or loss. Income tax is determined using tax
rates (and laws) that have been enacted or substantively enacted by the end of
the reporting period date and are expected to apply when the related deferred
tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised only to the extent that it is probable that
future taxable profit will be available against which the temporary
differences can be utilised.
Deferred income tax is provided on temporary differences arising on
investments in subsidiaries and associates, except for deferred income tax
liabilities where the timing of the reversal of the temporary difference is
controlled by the Group and it is probable that the temporary difference will
not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to offset current tax assets against current tax liabilities
and when the deferred income tax assets and liabilities relate to income taxes
levied by the same taxation authority on either the same taxable entity or
different taxable entities where there is an intention to settle the balances
on a net basis.
In assessing the recoverability of deferred tax assets, the Group relies on
the same forecast assumptions used elsewhere in the financial statements and
in other management reports, which, among other things, reflect the potential
impact of climate-related development on the business, such as increased cost
of production as a result of measures to reduce carbon emission.
2.19 Share-based payments
The Group operates a share-based compensation plan, under which the entity
receives services from employees as consideration for equity instruments
(options) of the Group. The fair value of the employee services received in
exchange for the grant of the options is recognised as an expense. The fair
value is measured using the Black Scholes pricing model. The inputs used in
the model are based on management's best estimates for the effects of
non-transferability, exercise restrictions and behavioural considerations.
Non-market performance and service conditions are included in assumptions
about the number of options that are expected to vest.
Vesting conditions are: (i) the personnel should be an employee that provides
services to the Group; and (ii) should be in continuous employment for the
whole vesting period of 3 years. Specific arrangements may exist with senior
managers and board members, whereby their options stay in use until the end.
The total expense is recognised over the vesting period, which is the period
over which all of the specified vesting conditions are to be satisfied (Note
24).
2.20 Rehabilitation provisions
The Group records the present value of estimated costs of legal and
constructive obligations required to restore operating locations in the period
in which the obligation is incurred. The nature of these restoration
activities includes dismantling and removing structures, rehabilitating mines
and tailings dams, dismantling operating facilities, closure of plant and
waste sites and restoration, reclamation and re-vegetation of affected areas.
The obligation generally arises when the asset is installed, or the
ground/environment is disturbed at the production location. When the liability
is initially recognised, the present value of the estimated cost is
capitalised by increasing the carrying amount of the related mining assets to
the extent that it was incurred prior to the production of related ore. Over
time, the discounted liability is increased for the change in present value
based on the discount rates that reflect current market assessments and the
risks specific to the liability. The periodic unwinding of the discount is
recognised in the consolidated income statement as a finance cost. Additional
disturbances or changes in rehabilitation costs will be recognised as
additions or charges to the corresponding assets and rehabilitation liability
when they occur. For closed sites, changes to estimated costs are recognised
immediately in the consolidated income statement.
The Group assesses its mine rehabilitation provision annually. Material
estimates and assumptions are made in determining the provision for mine
rehabilitation as there are numerous factors that will affect the ultimate
liability payable. These factors include estimates of the extent and costs of
rehabilitation activities, technological changes, regulatory changes and
changes in discount rates. Those uncertainties may result in future actual
expenditure differing from the amounts currently provided. The provision at
the consolidated statement of financial position date represents management's
best estimate of the present value of the future rehabilitation costs
required.
The impact of climate-related matters, such as changes in environmental
regulations and other relevant legislation, is considered by the Group in
estimating the rehabilitation provision on the manufacturing facility. Changes
in the estimated future costs, or in the discount rate applied, are added to
or deducted from the cost of the asset.
2.21 Leases
The determination of whether an arrangement is, or contains a lease is based
on the substance of the arrangement at inception date including whether the
fulfilment of the arrangement is dependent on the use of a specific asset or
assets or the arrangement conveys a right to use the asset.
The Group assesses at contract inception whether a contract is, or contains, a
lease. That is, if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration.
The Group applies a single recognition and measurement approach for all
leases, except for short-term leases and leases of low-value assets. The Group
recognises lease liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets.
A reassessment is made after inception of the lease only if one of the
following applies:
a) There is a change in contractual terms, other than a renewal or extension
of the arrangement;
b) A renewal option is exercised, or extension granted, unless the term of the
renewal or extension was initially included in the lease term;
c) There is a change in the determination of whether fulfilment is dependent
on a specified asset; or
d) There is a substantial change to the asset.
Group as a lessee
The Group has lease contracts for various items of laboratory equipment, motor
vehicle, lands and buildings used in its operations. Leases of laboratory
equipment and motor vehicles generally have lease terms for four years, while
lands and buildings generally have lease terms for the life of mine, currently
after 13 years of operation. The Group's obligations under its leases are
secured by the lessor's title to the leased assets. Generally, the Group is
restricted from assigning and subleasing the leased assets.
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease
(i.e., the date the underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated depreciation and impairment
losses, and adjusted for any remeasurement of lease liabilities.
The cost of right-of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease payments made at or
before the commencement date less any lease incentives received. Unless the
Group is reasonably certain to obtain ownership of the leased asset at the end
of the lease term, the recognised right-of-use assets are depreciated on a
straight-line basis over the shorter of its estimated useful life and the
lease term. Right-of-use assets are subject to impairment.
After initial measurement, the right-of-use assets are depreciated from the
commencement date using the straight-line method over the shorter of the
estimated useful lives of the right-of-use assets or the end of lease term.
These are as follows:
Right-of-use asset Depreciation terms in years
Lands and buildings Based on Units of Production (UOP)
Motor vehicles Based on straight line depreciation
Laboratory equipment Based on straight line depreciation
After the commencement date, the right-of-use assets are measured at cost less
any accumulated depreciation and any accumulated impairment losses and
adjusted for any remeasurement of the lease liability.
Lease liabilities
The lease liability is initially measured at the present value of the lease
payments that are not paid at the commencement date, discounted using the
interest rate implicit in the lease or, if that rate cannot be readily
determined, the Group's incremental borrowing rate. Generally, the Group uses
its incremental borrowing rate as the discount rate. Lease payments included
in the measurement of the lease liability include the following:
· Fixed payments, less any lease incentives receivable
· Variable lease payments that depend on an index or rate,
initially measured using the index or rate as at the commencement date
· Amounts expected to be payable by the lessee under residual value
guarantees
· The exercise price of a purchase option if the lessee is
reasonably certain to exercise that option
· Lease payments in an optional renewal period if the Group is
reasonably certain to exercise an extension option
· Payments of penalties for early terminating the lease, unless the
Group is reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest
rate method. After the commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and reduced for the lease
payments made. In addition, the carrying amount of lease liabilities is
re-measured if there is a modification, a change in the lease term, a change
in the in-substance fixed lease payments or a change in the assessment to
purchase the underlying asset. The result of this re-measurement is disclosed
in a line of the right-of-use assets note as modifications.
When the lease liability is remeasured, a corresponding adjustment is made to
the carrying amount of the right-of-use asset or is recorded as profit or loss
if the carrying amount of the right-of-use asset has been reduced to zero.
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term
leases of machinery and equipment (i.e., those leases that have a lease term
of 12 months or less from the commencement date and do not contain a purchase
option). It also applies the lease of low-value assets recognition exemption
to leases of office equipment that are considered of low value (i.e., below
€5,000). Lease payments on short-term leases and leases of low-value assets
are recognised as expense on a straight-line basis over the lease term.
2.22 Revenue recognition
(a) Revenue from contracts with customers
Atalaya is principally engaged in the business of producing copper concentrate
and in some instances, provides freight/shipping services. Revenue from
contracts with customers is recognised when control of the goods or services
is transferred to the customer at an amount that reflects the consideration to
which Atalaya expects to be entitled in exchange for those goods or
services. Atalaya has concluded that it is the principal in its revenue
contracts because it controls the goods or services before transferring them
to the customer.
(b) Copper in concentrate (metal in concentrate) sales
For most copper in concentrate (metal in concentrate) sales, the enforceable
contract is each purchase order, which is an individual, short-term
contract. For the Group's metal in concentrate sales not sold under CIF
Incoterms, the performance obligations are the delivery of the concentrate. A
proportion of the Group's metal in concentrate sales are sold under CIF
Incoterms, whereby the Group is also responsible for providing freight
services. In these situations, the freight services also represent separate
performance obligation (see paragraph (c) below).
The majority of the Group's sales of metal in concentrate allow for price
adjustments based on the market price at the end of the relevant QP stipulated
in the contract. These are referred to as provisional pricing arrangements and
are such that the selling price for metal in concentrate is based on
prevailing spot prices on a specified future date after shipment to the
customer. Adjustments to the sales price occur based on movements in quoted
market prices up to the end of the QP. The period between provisional
invoicing and the end of the QP can be between one and three months.
Revenue is recognised when control passes to the customer, which occurs at a
point in time when the metal in concentrate is physically transferred onto a
vessel, train, conveyor or other delivery mechanism. The revenue is measured
at the amount to which the Group expects to be entitled, being the estimate of
the price expected to be received at the end of the QP, i.e., the forward
price, and a corresponding trade receivable is recognised. For those
arrangements subject to CIF shipping terms, a portion of the transaction price
is allocated to the separate freight services provided (See paragraph (c)
below).
For these provisional pricing arrangements, any future changes that occur over
the QP are included within the provisionally priced trade receivables and are,
therefore, within the scope of IFRS 9 and not within the scope of IFRS 15.
Given the exposure to the commodity price, these provisionally priced trade
receivables will fail the cash flow characteristics test within IFRS 9 and
will be required to be measured at fair value through profit or loss up from
initial recognition and until the date of settlement. These subsequent changes
in fair value are recognised as part of revenue in the statement of profit or
loss and other comprehensive income each period and disclosed separately from
revenue from contracts with customers as part of 'Fair value gains/losses on
provisionally priced trade receivables. Changes in fair value over, and until
the end of, the QP, are estimated by reference to updated forward market
prices for copper as well as taking other relevant fair value considerations
as set out in IFRS 13, into account, including interest rate and credit risk
adjustments.
Final settlement is based on quantities adjusted as required following the
inspection of the product by the customer as well as applicable commodity
prices. IFRS 15 requires that variable consideration should only be recognised
to the extent that it is highly probable that a significant reversal in the
amount of cumulative revenue recognized will not occur. As the adjustments
relating to the final assay results for the quantity and quality of
concentrate sold are not significant, they do not constrain the recognition of
revenue.
(c) Freight services
As noted above, a proportion of the Group's metal in concentrate sales are
sold under CIF Incoterms, whereby the Group is responsible for providing
freight services (as principal) after the date that the Group transfers
control of the metal in concentrate to its customers. The Group, therefore,
has separate performance obligation for freight services which are provided
solely to facilitate sale of the commodities it produces.
The revenue from freight services is a separate performance obligation under
IFRS 15 and therefore is recognised as the service is provided, hence at year
end a portion of revenue must be deferred as well as the insurance costs
associated.
Other Incoterms commonly used by the Group are FOB, where the Group has no
responsibility for freight or insurance once control of the products has
passed at the loading port, Ex works where control of the goods passes when
the product is picked up at seller´s promises, and CIP where control of the
goods passes when the product is delivered to the agreed destination. For
arrangements which have these Incoterms, the only performance obligations are
the provision of the product at the point where control passes.
(d) Sales of services
The Group sells services in relation to maintenance of accounting records,
management, technical, administrative support and other services to other
companies. Revenue is recognised in the accounting period in which the
services are rendered.
Contract assets
A contract asset is the right to consideration in exchange for goods or
services transferred to the customer. If the Group performs by transferring
goods or services to a customer before the customer pays consideration or
before payment is due, a contract asset is recognised for the earned
consideration that is conditional. The Group does not have any contract assets
as performance and a right to consideration occurs within a short period of
time and all rights to consideration are unconditional.
Contract liabilities
A contract liability is the obligation to transfer goods or services to a
customer for which the Group has received consideration (or an amount of
consideration is due) from the customer. If a customer pays consideration
before the Group transfers goods or services to the customer, a contract
liability is recognised when the payment is made or the payment is due
(whichever is earlier). Contract liabilities are recognised as revenue when
the Group performs under the contract.
From time to time, the Group recognises contract liabilities in relation to
some metal in concentrate sales which are sold under CIF Incoterms, whereby a
portion of the cash may be received from the customer before the freight
services are provided.
2.23 Interest income
Interest income is recognised using the effective interest method. When a loan
and receivable is impaired, the Group and the Company reduce the carrying
amount to its recoverable amount, the estimated future cash flow is discounted
at the original effective interest rate of the instrument and the discount
continues unwinding as interest income. Interest income on impaired loan and
receivables is recognised using the original effective interest rate.
2.24 Dividend income
Dividend income is recognised when the right to receive payment is
established.
2.25 Dividend distribution
Dividend distributions to the Company's shareholders are recognised as a
liability in the Group's financial statements in the period in which the
dividends are approved by the Company's shareholders.
2.26 Earnings per share
The Group presents basic and diluted earnings per share data for its ordinary
shares. Basic earnings per share is calculated by dividing the profit or loss
attributable to ordinary shareholders of the Company by the weighted average
number of ordinary shares outstanding during the period. Diluted earnings per
share is determined by adjusting the profit or loss attributable to ordinary
shareholders and the weighted average number of ordinary shares outstanding
for the effects of all dilutive potential ordinary shares, which comprise
instruments convertible into ordinary shares and share options granted to
employees.
2.27 Comparatives
Where necessary, comparative figures have been adjusted to conform to changes
in presentation in the current year.
2.28 Amendment of financial statements after issue
The Board of Directors and shareholders has no right to amend the Financial
Statements after they are authorised.
2.29 Fair value estimation
The fair values of the Group's financial assets and liabilities approximate
their carrying amounts at the reporting date.
The fair value of financial instruments traded in active markets, such as
publicly traded and fair value through profit and loss assets is based on
quoted market prices at the reporting date. The quoted market price used for
financial assets held by the Group is the current bid price. The appropriate
quoted market price for financial liabilities is the current ask price.
The fair value of financial instruments that are not traded in an active
market is determined by using valuation techniques. The Group uses a variety
of methods, such as estimated discounted cash flows, and makes assumptions
that are based on market conditions existing at the reporting date.
Fair value measurements recognised in the consolidated and company statement
of financial position
The following table provides an analysis of financial instruments that are
measured subsequent to initial recognition at fair value, Grouped into Levels
1 to 3 based on the degree to which the fair value is observable.
· Level 1 fair value measurements are those derived from quoted
prices (unadjusted) in active markets for identical assets or liabilities.
· Level 2 fair value measurements are those derived from inputs
other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly (i.e. as prices) or indirectly (i.e.
derived from prices).
· Level 3 fair value measurements are those derived from valuation
techniques that include inputs for the asset or liability that are not based
on observable market data (unobservable inputs).
(Euro 000's) Level 1 Level 2 Level 3 Total
31 Dec 2024
Other current financial assets
Financial assets at FV through OCI 23 - 1,101 1,124
Trade and other receivables
Receivables (subject to provisional pricing) - 10,769 - 10,769
Total 23 10,769 1,101 11,893
31 Dec 2023
Other current financial assets
Financial assets at FV through OCI 30 - 1,101 1,131
Receivables (subject to provisional pricing) - 15,164 - 15,164
Total 30 15,164 1,101 16,295
2.30 Climate-related matters
The Group considers climate-related matters in estimates and assumptions,
where appropriate. This assessment includes a wide range of possible impacts
on the group due to both physical and transition risks. Even though the Group
believes its business model and products will still be viable after the
transition to a low-carbon economy, climate-related matters increase the
uncertainty in estimates and assumptions underpinning several items in the
financial statements. Even though climate-related risks might not currently
have a significant impact on measurement, the Group is closely monitoring
relevant changes and developments, such as new climate-related legislation.
The items and considerations that are most directly impacted by
climate-related matters are:
- Useful life of property, plant and equipment. When reviewing the
residual values and expected useful lives of assets, the Group considers
climate-related matters, such as climate-related legislation and regulations
that may restrict the use of assets or require significant capital
expenditures, based on the assessment on climate-related matters, there was no
impact.
- Impairment of non-financial assets. The value-in-use may be
impacted in several different ways by transition risk in particular, such as
climate-related legislation and regulations and changes in demand for the
Group products, based on the assessment on climate-related matters, there was
no impact.
- In determining fair value measurement, the impact of potential
climate-related matters, including legislation, which may affect the fair
value measurement of assets and liabilities in the financial statements has
been considered and based on the assessment on climate-related matters, there
was no impact.
- Rehabilitation provision. The impact of climate-related
legislation and regulations is considered in estimating the timing and future
costs of rehabilitation of the Group facilities, based on the assessment on
climate-related matters, there was no impact.
`
2.31 Contingent liabilities in assets acquisitions
The Group has adopted the approach set out in IFRIC 1 (International Financial
Reporting Interpretations Committee) for contingent payments related to asset
acquisitions. When acquiring intangible assets with contingent payments that
depend on future events, such as the Touro, Masa Valverde, and Ossa Morena
projects (see Note 1), the Group assesses whether these payments are directly
attributable to the cost of the acquired asset. If the analysis concludes that
the payment is linked to the acquisition cost, the Group recognises an
intangible asset reflecting the fair value of the acquired rights and a
corresponding liability based on the best estimate of the expected future
payment, including anticipated undetermined costs.
If the contingent payment is not directly related to the acquisition cost of
the asset, it is recognised as an expense in the period it is incurred.
Subsequent changes in the estimated liability due to revisions in assumptions,
project feasibility, or economic factors are recognised against the carrying
amount of the intangible asset. If at a later stage there is uncertainty
regarding the continuation of the project, leading to a reassessment of the
probability of making the contingent payment, the Group adjusts the liability
accordingly and recognises the change against the asset's carrying amount.
For intangible assets where non-controlling interests exist, the Group assigns
the corresponding portion of the asset to non-controlling interest holders,
ensuring that any valuation adjustments to contingent liabilities are
reflected appropriately. This policy is applied consistently across all
projects to ensure compliance with IFRS and alignment with industry practices.
3. Financial Risk Management and Critical accounting estimates and judgements
3.1 Financial risk factors
The Group manages its exposure to key financial risks in accordance with its
financial risk management policy. The objective of the policy is to support
the delivery of the Group's financial targets while protecting future
financial security. The main risks that could adversely affect the Group's
financial assets, liabilities or future cash flows are market risks
comprising: commodity price risk, interest rate risk and foreign currency
risk; liquidity risk and credit risk; operational risk, compliance risk and
litigation risk. Management reviews and agrees policies for managing each of
these risks that are summarised below.
The Group's senior management oversees the management of financial risks. The
Group's senior management is supported by the AC that advises on financial
risks and the appropriate financial risk governance framework for the Group.
The AC provides assurance to the Group's senior management that the Group's
financial risk-taking activities are governed by appropriate policies and
procedures and that financial risks are identified, measured and managed in
accordance with the Group's policies and risk objectives. Currently, the Group
does not apply any form of hedge accounting.
(a) Liquidity risk
Liquidity risk is the risk that arises when the maturity of assets and
liabilities does not match. An unmatched position potentially enhances
profitability but can also increase the risk of losses. The Group has
procedures with the object of minimising such losses such as maintaining
sufficient cash to meet liabilities when due. Cash flow forecasting is
performed in the operating entities of the Group and aggregated by Group
finance. Group finance monitors rolling forecasts of the Group's liquidity
requirements to ensure it has sufficient cash to meet operational needs.
The following tables detail the Group's remaining contractual maturity for its
financial liabilities. The tables have been drawn up based on the undiscounted
cash flows of financial liabilities based on the earliest date on which the
Group can be required to pay. The table includes principal cash flows
associated with both principal and interests.
(Euro 000's) Carrying amounts Contractual cash flows Less than 3 months Between 3 - 12 months Between 1 - 2 years Between 2 - 5 years Over 5 years
31 Dec 2024
Lease liability 3,801 4,323 - 519 519 1,556 1,729
Other financial liabilities 17,787 18,983 1,519 6,015 5,670 5,779 -
Non-current payables 12,492 13,750 - - 750 11,000 2,000
Trade and other payables 90,090 90,255 52,929 37,266 60 - -
124,170 127,311 54,448 43,800 6,999 18,335 3,729
31 Dec 2023
Lease liability 4,378 4,841 - 519 1,037 1,556 1,729
Other financial liabilities 66,687 67,896 1,749 51,171 9,912 5,064 -
Non-current payables 2,003 2,750 - - 750 - 2,000
Trade and other payables 75,922 75,922 36,964 38,882 76 - -
148,990 151,409 38,713 90,572 11,775 6,620 3,729
For better understanding and comparability, the 2023 figures have been broken
down in line with the 2024 presentation
(b) Currency risk
Currency risk is the risk that the value of financial instruments will
fluctuate due to changes in foreign exchange rates.
Currency risk arises when future commercial transactions and recognised assets
and liabilities are denominated in a currency that is not the Group's
measurement currency. The Group is exposed to foreign exchange risk arising
from various currency exposures primarily with respect to the US Dollar and
the British Pound. The Group's management monitors the exchange rate
fluctuations on a continuous basis and acts accordingly.
The table below presents the Group's balances denominated in foreign
currencies as at 31 December 2024 and 31 December 2023, categorised by
currency and nature of balance:
(Euro 000's) 2024 2023
USD
Cash and cash equivalents 15,513 70,496
Trade and other receivables 10,769 31,580
26,282 102,075
GBP
Cash and cash equivalents 70 41
Foreign currency sensitivity
The following table demonstrates the sensitivity to a reasonably possible
change in the foreign exchange rate, with all other variables held constant,
of the Group's profit before tax due to changes in the carrying value of
monetary assets and liabilities at reporting date:
(Euro 000's) Effect on profit before tax for the year ended 31 Dec 2024 increase/(decrease) Effect on profit before tax for the year ended 31 Dec 2023 increase/(decrease) Effect on equity for the year ended 31 Dec 2024 increase/(decrease) Effect on equity for the year ended 31 Dec 2023 increase/(decrease)
(+5%) 20,364 17,454 16,698 14,312
(-5%) (20,364) (17,454) (16,698) (14,312)
Commodity price risk
Commodity price is the risk that the Group's future earnings will be adversely
impacted by changes in the market prices of commodities, primarily copper.
Management is aware of this impact on its primary revenue stream but knows
that there is little it can do to influence the price earned apart from a
hedging scheme.
Commodity price hedging is governed by the Group´s policy which allows to
limit the exposure to prices. The Group may decide to hedge part of its
production during the year.
Commodity price sensitivity
The table below summarises the impact on profit before tax for changes in
commodity prices on the fair value of derivative financial instruments and
trade receivables that are subject to provisional pricing. The impact on
equity is the same as the impact on profit before income tax, as these
derivative financial instruments have not been designated as hedges under IFRS
9. Instead, they are classified as held-for-trading and are therefore fair
valued through profit or loss.
The derivative financial instruments referenced in this sensitivity analysis
are economic derivatives rather than hedge derivatives. These instruments
arise from the Group's provisional pricing arrangements, whereby copper
concentrate sales are initially recorded at provisional prices and are
subsequently adjusted based on market prices at the end of the quotational
period (QP), as per the terms of offtake agreements. As a result, the fair
value of trade receivables fluctuates with commodity price movements, creating
an embedded derivative that is accounted for separately.
This derivative is not designated as a hedge and is classified as
held-for-trading, meaning its fair value fluctuations are recognised in profit
or loss. Since this pricing adjustment is directly linked to revenue, the
impact on profit before tax (PBT) and equity is the same.
The analysis is based on the assumption that copper prices move by $0.05/lb,
with all other variables held constant. Reasonably possible movements in
commodity prices were determined based on a review of the last two years'
historical prices.
(Euro 000's) Effect on profit before tax for the year ended 31 Dec 2024 increase/(decrease) Effect on profit before tax for the year ended 31 Dec 2023 increase/(decrease) Effect on equity for the year ended 31 Dec 2024 increase/(decrease) Effect on equity for the year ended 31 Dec 2023 increase/(decrease)
Increase/(decrease) in copper prices
Increase $0.05/lb (2023: $0.05) 5,012 5,138 4,110 4,213
Decrease $0.05/lb (2023: $0.05) (5,012) (5,138) (4,110) (4,213)
A $0.05/lb movement in copper prices was determined as a reasonably possible
change based on historical volatility over the past two years.
(c) Credit risk
Credit risk arises when a failure by counterparties to discharge their
obligations could reduce the amount of future cash inflows from financial
assets on hand at the reporting date. The Group has no significant
concentration of credit risk. The Group has policies in place to ensure that
sales of products and services are made to customers with an appropriate
credit history and monitors on a continuous basis the ageing profile of its
receivables. The Group has policies to limit the amount of credit exposure to
any financial institution.
Except as detailed in the following table, the carrying amount of financial
assets recorded in the financial statements, which is net of impairment
losses, represents the maximum credit exposure without taking account of the
value of any collateral obtained:
(Euro 000's) 31 Dec 2024 31 Dec 2023
Unrestricted cash and cash equivalents at Group level 43,184 94,868
Unrestricted cash and cash equivalents at Operation level 9,694 26,139
Consolidated cash and cash equivalents 52,878 121,007
Net cash position ((1)) 35,091 54,320
Working capital surplus 44,728 68,618
There are no collaterals held in respect of these financial instruments and
there are no financial assets that are past due or impaired as at 31 December
2024 and 2023.
The table below presents the Group's financial assets exposed to credit risk
as at 31 December 2024 and 31 December 2023, classified by type of asset.
(Euro 000's) 2024 2023
Non-current financial assets
Non-current loans 2,768 233
Non-current deposits 611 307
3,379 540
Current financial assets
Current loans 5,352 -
Current receivables 11,458 16,039
16,810 16,039
Total 20,189 16,579
(d) Interest rate risk
Interest rate risk is the risk that the value of financial instruments will
fluctuate due to changes in market interest rates. Borrowings issued at
variable rates expose the Group to cash flow interest rate risk. Borrowings
issued at fixed rates expose the Group to fair value interest rate risk. The
Group's management monitors the interest rate fluctuations on a continuous
basis and acts accordingly.
At the reporting date the interest rate profile of interest‑bearing
financial instruments was:
(Euro 000's) 2024 2023
Variable rate instruments
Financial assets 52,878 121,007
An increase of 100 basis points in interest rates at 31 December 2024 would
have increased / (decreased) equity and profit or loss by the amounts shown
below. This analysis assumes that all other variables, in particular foreign
currency rates, remain constant. For a decrease of 100 basis points there
would be an equal and opposite impact on the profit and other equity.
Equity Profit or loss
(Euro 000's) 2024 2023 2024 2023
Variable rate instruments 529 1,210 529 1,210
(e) Operational risk
Operational risk is the risk that derives from the deficiencies relating to
the Group's information technology and control systems as well as the risk of
human error and natural disasters. The Group's systems are evaluated,
maintained and upgraded continuously.
(f) Compliance risk
Compliance risk is the risk of financial loss, including fines and other
penalties, which arises from non‑compliance with laws and regulations. The
Group has systems in place to mitigate this risk, including seeking advice
from external legal and regulatory advisors in each jurisdiction.
(g) Litigation risk
Litigation risk is the risk of financial loss, interruption of the Group's
operations or any other undesirable situation that arises from the possibility
of non‑execution or violation of legal contracts and consequentially of
lawsuits. The risk is restricted through the contracts used by the Group to
execute its operations.
3.2 Capital risk management
The Group considers its capital structure to consist of share capital, share
premium and share options reserve. The Group's objectives when managing
capital are to safeguard the Group's ability to continue as a going concern in
order to provide returns for shareholders and benefits for other stakeholders
and to maintain an optimal capital structure to reduce the cost of capital.
The Group is not subject to any externally imposed capital requirements.
In order to maintain or adjust the capital structure, the Group issues new
shares. The Group manages its capital to ensure that it will be able to
continue as a going concern while maximising the return to shareholders
through the optimisation of the debt and equity balance. The AC reviews the
capital structure on a continuing basis.
The Group's objectives when managing capital are to safeguard the Group's
ability to continue as a going concern and to maintain an optimal capital
structure so as to maximise shareholder value. In order to maintain or achieve
an optimal capital structure, the Group may adjust the amount of dividend
payment, return capital to shareholders, issue new shares, buy back issued
shares, obtain new borrowings or sell assets to reduce borrowings.
The Group monitors capital on the basis of the gearing ratio. The gearing
ratio is calculated as net debt divided by total capital. Net debt is
calculated as provisions plus deferred consideration plus trade and other
payables less cash and cash equivalents.
(Euro 000's) 31 Dec 2024 31 Dec 2023
Total liabilities less cash 104,433 57,170
Total equity (excluding NCI) 516,384 501,496
Total capital 620,187 558,666
Gearing ratio 16.82% 10.23%
3.3 Critical accounting judgements and Key sources of estimation uncertainty
The preparation of the Group's financial statements requires management to
apply judgements, estimates, and assumptions that affect the recognition and
measurement of assets, liabilities, revenues, and expenses. These judgements
and estimates are based on management's experience, industry knowledge, and
expectations of future events that are considered reasonable under the
circumstances.
Under IAS 1 - Presentation of Financial Statements, the Group distinguishes
between critical accounting judgements and key sources of estimation
uncertainty, as they have different disclosure requirements:
- Critical accounting judgements involve decisions made by
management in applying accounting policies that have the most significant
impact on the financial statements (IAS 1, paragraph 122). These judgements do
not involve estimation uncertainty but require management to make subjective
assessments in applying IFRS.
- Key sources of estimation uncertainty involve assumptions about
the future that create a significant risk of material adjustment to the
carrying amounts of assets and liabilities within the next financial year (IAS
1, paragraph 125). These estimates are subject to inherent uncertainty, and
actual results may differ from those originally assumed.
Management continuously evaluates these judgements and estimates to ensure
they remain appropriate and reflect the latest available information.
Significant accounting judgements and critical estimates identified by the
Group are outlined below, along with their potential financial impact.
Critical accounting judgments
(a) Consolidation of Cobre San Rafael
Cobre San Rafael, S.L. is the entity that holds the mining rights for Proyecto
Touro. Although the Group initially owned only a 10% equity interest,
management has exercised judgement under IFRS 10 - Consolidated Financial
Statements and determined that Atalaya controls Cobre San Rafael, S.L. and
should consolidate up to 80% of its interest in the Group's financial
statements.
This judgement is based on the following key factors:
Power Over Relevant Activities
- Atalaya has substantive rights that enable it to direct key
operational and financial decisions.
- The Group has the ability to appoint key personnel, including
senior management and operational leadership.
- One of the two Directors of Cobre San Rafael, S.L. is appointed
by Atalaya, allowing it to influence strategic decisions.
Exposure to Variable Returns
- Atalaya bears financial risks through contractual obligations
that require it to absorb Cobre San Rafael, S.L.'s losses, exceeding its
initial ownership percentage.
- The Group provides funding and financial support to maintain the
subsidiary's operations, reinforcing its economic exposure.
Control and Increased Consolidation Up to 80%
- Under IFRS 10, control is determined by power over the entity,
exposure to variable returns, and the ability to affect those returns.
- Due to Atalaya's contractual rights, financial obligations, and
decision-making authority, management has determined that the Group exercises
control over Cobre San Rafael, S.L.
- As a result, the Group has elected to consolidate up to 80% of
its interest, in line with its milestone-based acquisition framework, which
allows for an increase in ownership over time.
This assessment represents a significant judgement, as control is not based
solely on the percentage of ownership but rather on the ability to direct
relevant activities and bear associated financial risks. Management continues
to monitor changes in contractual arrangements, funding obligations, and
decision-making rights to assess whether control remains appropriate under
IFRS 10.
Management has exercised judgement in determining that Atalaya controls Cobre
San Rafael, S.L., despite holding only a 10% equity interest. Under IFRS 10 -
Consolidated Financial Statements, control exists when an entity has power
over relevant activities, exposure to variable returns, and the ability to
affect those returns.
Atalaya has the ability to appoint key personnel and influence strategic
decisions through board representation. Additionally, it bears the financial
risks of the subsidiary due to contractual obligations requiring it to absorb
its losses. Based on these factors, Atalaya consolidates up to 80% of its
interest in the Group's financial statements.
Contingent Liabilities Related to Cobre San Rafael
In addition to the consolidation judgement, the Group evaluated whether any
contingent liabilities exist in relation to Cobre San Rafael or other
entities. Under IAS 37 - Provisions, Contingent Liabilities and Contingent
Assets, a contingent liability arises when a past event creates a possible
obligation, but its settlement depends on uncertain future events outside the
Group's control.
As of 31 December 2024, the Group does not have any significant contingent
liabilities other than those related to Cobre San Rafael. The main risks
associated with CSR include potential legal and environmental obligations
related to Proyecto Touro's permitting process, which remain subject to
ongoing regulatory developments.
Management continues to assess whether any additional provisions or contingent
liabilities should be recognised, considering legal, regulatory, and
operational risks affecting the Group's interests.
(b) Capitalisation of exploration and evaluation costs
Under the Group's accounting policy, exploration and evaluation expenditure is
not capitalised until the point is reached at which there is a high degree of
confidence in the project's viability, and it is considered probable that
future economic benefits will flow to the Group. Subsequent recovery of the
resulting carrying value depends on successful development or sale of the
undeveloped project. If a project proves to be unviable, all irrecoverable
costs associated with the project net of any related impairment provisions are
written off.
Judgement is required to determine when exploration and evaluation costs
should be capitalised. The Group only capitalises expenditure once there is a
high degree of confidence in a project's viability, and future economic
benefits are considered probable. Until this point, costs are expensed.
(c) Classification of financial instruments
Financial assets are classified, at initial recognition, and subsequently
measured at amortised cost, fair value through OCI, or fair value through
profit or loss.
The Group and Company exercises judgement upon determining the classification
of its financial assets upon considering whether contractual features
including interest rate could significantly affect future cash flows.
Furthermore, judgment is required when assessing whether compensation paid or
received on early termination of lending arrangements results in cash flows
that are not 'solely payments of principal and interest (SPPI).
The classification of financial instruments requires judgement in assessing
whether contractual terms meet the Solely Payments of Principal and Interest
(SPPI) test under IFRS 9 - Financial Instruments. Certain financial assets
contain features such as early termination options or linked interest rates,
which require management to assess their classification as amortised cost,
fair value through OCI, or fair value through profit or loss.
(d) Stripping costs
The Group incurs waste removal costs (stripping costs) during the development
and production phases of its surface mining operations. Furthermore, during
the production phase, stripping costs are incurred in the production of
inventory as well as in the creation of future benefits by improving access
and mining flexibility in respect of the orebodies to be mined, the latter
being referred to as a stripping activity asset. Judgement is required to
distinguish between the development and production activities at surface
mining operations.
The Group is required to identify the separately identifiable components or
phases of the orebodies for each of its surface mining operations. Judgement
is required to identify and define these components, and also to determine the
expected volumes (tonnes) of waste to be stripped and ore to be mined in each
of these components. These assessments may vary between mines because the
assessments are undertaken for each individual mine and are based on a
combination of information available in the mine plans, specific
characteristics of the orebody, the milestones relating to major capital
investment decisions and the type and grade of minerals being mined.
Judgement is also required to identify a suitable production measure that can
be applied in the calculation and allocation of production stripping costs
between inventory and the stripping activity asset. The Group considers the
ratio of expected volume of waste to be stripped for an expected volume of ore
to be mined for a specific component of the orebody, compared to the current
period ratio of actual volume of waste to the volume of ore to be the most
suitable measure of production.
These judgements and estimates are used to calculate and allocate the
production stripping costs to inventory and/or the stripping activity
asset(s). Furthermore, judgements and estimates are also used to apply the
units of production method in determining the depreciable lives of the
stripping activity asset(s).
(e) Contingent liabilities
A contingent liability arises where a past event has taken place for which the
outcome will be confirmed only by the occurrence or non-occurrence of one or
more uncertain events outside of the control of the Group, or a present
obligation exists but is not recognised because it is not probable that an
outflow of resources will be required to settle the obligation.
A provision is made when a loss to the Group is likely to crystallise. The
assessment of the existence of a contingency and its likely outcome,
particularly if it is considered that a provision might be necessary, involves
significant judgment taking all relevant factors into account.
(f) Impairment of assets
Events or changes in circumstances can give rise to significant impairment
charges or impairment reversals in a particular year. The Group assesses each
Cash Generating Unit ("CGU") annually to determine whether any indications of
impairment exist. If it was necessary management could contract independent
expert to value the assets. Where an indicator of impairment exists, a formal
estimate of the recoverable amount is made, which is considered the higher of
the fair value less cost to sell and value-in-use. An impairment loss is
recognised immediately in net earnings. The Group has determined that each
mine location is a CGU.
These assessments require the use of estimates and assumptions such as
commodity prices, discount rates, future capital requirements, exploration
potential and operating performance. Fair value is determined as the price
that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. Fair
value for mineral assets is generally determined as the present value of
estimated future cash flows arising from the continued use of the asset, which
includes estimates such as the cost of future expansion plans and eventual
disposal, using assumptions that an independent market participant may take
into account. Cash flows are discounted at an appropriate discount rate to
determine the net present value. For the purpose of calculating the impairment
of any asset, management regards an individual mine or works site as a CGU.
Although management has made its best estimate of these factors, it is
possible that changes could occur in the near term that could adversely affect
management's estimate of the net cash flow to be generated from its projects.
The assessment of impairment indicators and the recoverable amount of assets
requires management to estimate future cash flows, discount rates, and market
conditions. After performing sensitivity calculations, a 10% decrease in
copper prices would not result in an impairment charge.
Key sources of estimation uncertainty
(g) Ore reserve and mineral resource estimates
The estimation of ore reserves and mineral resources impacts various
accounting estimates in the Group's financial statements that requires
critical accounting judgement. . While ore reserve estimates are based on
geological, technical, and economic assessments performed by qualified
persons, they are not standalone accounting estimates under IFRS. Instead,
they act as key assumptions that influence multiple financial statement areas,
including:
- Depreciation and amortisation, particularly for assets
depreciated using the unit-of-production (UOP) method.
- Impairment assessments, as future expected cash flows depend on
estimated recoverable reserves.
- Capitalisation of stripping costs, which determines whether
waste removal costs should be recognised as an asset or expensed.
- Rehabilitation and decommissioning provisions, as reserve
estimates affect the timing and expected costs of site restoration.
The Group estimates its ore reserves and mineral resources based on geological
and technical data relating to the size, depth, shape, and grade of the ore
body, along with suitable production techniques and recovery rates. These
assessments require complex geological judgements, including:
- Long-term copper price assumptions.
- Foreign exchange rate forecasts affecting project viability.
- Production costs, capital expenditure requirements, and expected
recovery rates.
- Mining recovery and dilution factors.
- Environmental and regulatory considerations.
The Group uses qualified persons (as defined by the Canadian Securities
Administrators' National Instrument 43-101) to compile this data. Changes in
the judgments surrounding proven and probable reserves may impact as follows:
· The carrying value of exploration and evaluation assets, mine
properties, property, plant and equipment, and goodwill may be affected due to
changes in estimated future cash flows;
· Depreciation and amortisation charges in the consolidated and
company statements of comprehensive income may change where such charges are
determined using the UOP method, or where the useful life of the related
assets change;
· Capitalised stripping costs recognised in the statement of
financial position as either part of mine properties or inventory or charged
to profit or loss may change due to changes in stripping ratios;
· Provisions for rehabilitation and environmental provisions may
change where reserve estimate changes affect expectations about when such
activities will occur and the associated cost of these activities;
· The recognition and carrying value of deferred income tax assets
may change due to changes in the judgements regarding the existence of such
assets and in estimates of the likely recovery of such assets.
Update in Ore Reserves and Its Financial Impact
In May 2024, Atalaya incorporated an update of its ore reserves based on an
independent expert analysis in accordance with the Canadian Institute of
Mining, Metallurgy and Petroleum ("CIM") Definition Standards on Mineral
Resources and Mineral Reserves adopted by the CIM Council (the "CIM
Standards"). This update has some impact on our financial statements and
accounting estimates and reflects a revised understanding of the economic
potential and operational requirements of our mining assets.
Judgements and Assumptions:
The update in ore reserves requires significant judgments and assumptions,
particularly in estimating the quantity and quality of the ore, the economic
viability of extraction, and the life of the mine. These estimates impact
various accounting measures, including depreciation schedules, cost
allocations, and capitalisation policies. Our management has applied
considerable expertise and relied on independent expert opinions to ensure
these estimates are robust and reflect the best available information.
Impact on Profit and Loss Statement:
The update of ore reserves has resulted in some changes to our accounting
practices in relation to depreciation, stripping costs and capitalisation.
Specifically, these changes result in a total decrease in net profit of €1.5
million, comprising €0.7 million from increased depreciation, €0.1 million
from increased depreciation of stripping costs and €0.7 million from reduced
capitalisation of stripping costs. These changes help to maintain the accuracy
of our financial statements and ensure that they give a fair view of the
financial position and performance of our business.
Accumulated Depreciation of Mining Assets:
The revised ore reserve estimates have led to an increase in the accumulated
depreciation of our mining assets by €0.7 million during the year. This
change is due to the adjustment in the useful life and depletion rate of these
assets, which are now expected to be utilised over a shorter timeframe than
previously estimated. The new ore reserve data has provided a more accurate
basis for calculating depreciation, ensuring our financial records accurately
reflect the wear and tear on these assets over their updated useful lives.
Stripping Costs: depreciation
The reserves update also resulted in an increase in depreciation of €0.1
million during the period. Depreciation, which covers the allocation of the
cost of assets over their useful lives, has been adjusted to reflect the new
ore reserve estimates. The reassessment of reserves has impacted the level and
timing of depreciation, reflecting the updated operational requirements to
access the newly defined ore bodies.
Capitalisation of Stripping Costs:
In conjunction with the increase in stripping costs, there is a reduction in
the capitalisation of stripping costs amounting to €0.7 million. This
adjustment arises from the revised criteria for capitalising stripping costs
under the updated ore reserve estimates. With a clearer understanding of the
ore body and its economic feasibility, certain costs previously capitalised
are now expensed, aligning our financial practices with the current and more
accurate projections of our mining operations.
Compliance with Reporting Standards:
The Group reports its Mineral Resources and Mineral Reserves in accordance
with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM")
Definition Standards on Mineral Resources and Mineral Reserves adopted by the
CIM Council (the "CIM Standards"). This ensures that our reporting is
consistent with internationally recognised guidelines, providing transparency
and comparability for our stakeholders.
(h) Provisions for decommissioning and site restoration costs
Accounting for restoration provisions requires management to make estimates of
the future costs the Group will incur to complete the restoration and
remediation work required to comply with existing laws, regulations and
agreements in place at each mining operation and any environmental and social
principles the Group is in compliance with. The calculation of the present
value of these costs also includes assumptions regarding the timing of
restoration and remediation work, applicable risk-free interest rate for
discounting those future cash outflows, inflation and foreign exchange rates
and assumptions relating to probabilities of alternative estimates of future
cash outflows.
The discount rate used in the calculation of the net present value of the
liability as at 31 December 2024 was 3.23% (2023: 3.62%), which corresponds to
the 15-year Spain Government Bond rate for 2024. An inflation rate of 2%-2.80%
(2023: 1%-3.10%) was applied on an annual basis.
Management uses its judgement and experience to provide for and (in the case
of capitalised decommissioning costs) amortise these estimated costs over the
life of the mine. The ultimate cost of decommissioning and timing is uncertain
and cost estimates can vary in response to many factors including changes to
relevant environmental laws and regulations requirements, the emergence of new
restoration techniques or experience at other mine sites. As a result, there
could be significant adjustments to the provisions established which would
affect future financial results. Refer to Note 27 for further details.
Provisions are based on estimates of future costs, inflation rates, discount
rates, and the timing of restoration activities. Changes in environmental laws
or unexpected site conditions could significantly affect these estimates. A 1%
increase in the discount rate would reduce the provision by €2.1 million,
while a 1% decrease would increase the provision by €2.1 million.
(i) Inventory
Net realisable value tests are performed at each reporting date and represent
the estimated future sales price of the product the entity expects to realise
when the product is processed and sold, less estimated costs to complete
production and bring the product to sale. Where the time value of money is
material, these future prices and costs to complete are discounted.
Copper concentrate inventories are valued at the lower of cost or NRV. This
estimate is based on forecasted commodity prices and production costs. A 10%
decrease in copper prices would not result in any impairment, as inventory
values would still exceed cost.
(j) Recoverability of Assets Related to the E-LIX Project
The new E-LIX technology represents a source of estimation uncertainty due to
the significant assumptions involved in assessing the recoverability of
Atalaya's investment in the project. The Group has invested and funded Lain
various phases of development, including the construction of a pilot plant,
feasibility studies testing, and the development of an industrial-scale plant
to apply the E-LIX electrochemical extraction technology to complex sulphide
ores.
The recoverability of these investments depends on several factors, including:
· Successful commercialisation of the E-LIX Technology - The
technology must demonstrate continued operational effectiveness and economic
scalability in full-scale production.
· Market conditions for copper and zinc - Long-term price trends
impact the financial viability of the project.
· Production efficiency and cost assumptions - The plant's ability
to achieve projected recovery rates and cost efficiencies is critical.
· Exclusivity agreements - The Group holds limited exclusive rights
to the E-LIX technology within the Iberian Pyrite Belt, supporting long-term
value generation.
Given these factors, management assesses the recoverability of the investment
based on projected future cash flows from the plant's operations. The key
estimation uncertainties relate to:
· The finalisation of the ramp-up and expected operational
efficiency running the Industrial Plant at continuously production pace - Any
delays or underperformance could impact future cash flow generation.
· Commodity price fluctuations - Variations in copper and zinc
prices could significantly influence revenue projections.
· Regulatory and operational risks - The project requires ongoing
compliance with environmental and industrial regulations.
Sensitivity Analysis:
A reasonable range of changes in these key assumptions could result in a
material impact on the estimated recoverability of the investment. After
performing sensitivity calculations, a 10% decrease in zinc prices has
resulted in a 3.21% reduction in the IRR of the project. Or delays in the
ramp-up with an increase in €10 million cost, has resulted in a 3.4%
reduction in the IRR. Management monitors these factors closely and assesses
whether impairment indicators exist at each reporting date.
At 31 December 2024, no impairment indicators have been identified. However,
due to the inherent estimation uncertainty, the Group will continue to monitor
operational performance and market conditions, reassessing the valuation of
the investment as necessary.
4. Segments
Segments
The Group has only one distinct business segment, that being mining
operations, which include mineral exploration and development.
Copper concentrates produced by the Group are sold to three offtakers as per
the relevant offtake agreement (Note 31.3).
Geographical areas of operations
The Group has only one distinct business segment, which is mining operations,
including mineral exploration and development.
The Group's copper concentrate production takes place in Spain, while its
commercialisation is carried out through Cyprus via its subsidiary, EMED
Marketing Limited. The production of copper concentrate is undertaken by
Atalaya Riotinto Minera, S.L.U. in Spain. Once produced, the copper
concentrate is sold to international clients under the Group's offtake
agreements, which are managed by EMED Marketing Limited, a subsidiary based in
Cyprus.
EMED Marketing Limited holds the offtake agreements with customers and is
responsible for the promotion and sale of the copper concentrate. Under these
agreements, it provides marketing services, including coordinating and
managing the ordering and delivery of the copper concentrate. However, EMED
Marketing Limited does not control the concentrate before it is transferred to
customers, as the production and provision of the product are undertaken by
Atalaya Riotinto Minera, S.L.U. Since it does not have the ability to direct
the use of the concentrate or obtain benefits from it before the transfer to
customers, EMED Marketing Limited acts as an agent in these transactions.
The transfer of control over the marketing services provided by EMED Marketing
Limited occurs at the moment the customer receives the copper concentrate.
This is the point in time when the customer benefits from EMED Marketing
Limited's role in arranging for the provision of the concentrate.
Consequently, revenue from these sales is recognised at that point.
Sales transactions between Group companies are conducted at arm's length, in
accordance with transfer pricing regulations, ensuring comparability with
third-party transactions. The accounting policies applied by the Group in
Spain and Cyprus are consistent with those outlined in Note 2.
The table below presents an analysis of revenue from external customers based
on their geographical location, determined by the country of establishment of
each customer.
Revenue - from external customers 2024 2023
€'000 €'000
Switzerland 256,243 260,284
Singapore 69,676 80,031
Spain 878 31
326,797 340,346
The table below presents revenues from external customers attributed to the
country of domicile of the Company.
Revenue - from external customers 2024 2023
€'000 €'000
Cyprus 25,404 25,712
Spain 301,393 314,634
326,797 340,346
The geographical location of the specified non-current assets is based on the
physical location of the asset in the case of property, plant and equipment as
well as intellectual property.
Non-current assets 2024 2023
€'000 €'000
Spain 479,241 434,136
479,241 434,136
Revenue represents the sales value of goods supplied to customers; net of
value added tax. The following table summarises sales to customers with whom
transactions have individually exceeded 10.0% of the Group's revenues.
(Euro 000's) 2024 2023
Segment €'000 Segment €'000
Offtaker 1 Copper 69,676 Copper 80,031
Offtaker 2 Copper 91,849 Copper 76,688
Offtaker 3 Copper 164,394 Copper 183,596
5. Revenue
(Euro 000's) 2024 2023
Revenue from contracts with customers ((1)) 341,787 344,940
Fair value gain/(loss) relating to provisional pricing within sales ((2)) (15,868) (4,594)
Other income ((3)) 878 -
Total revenue 326,797 340,346
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.
The decrease in revenues was mainly due to lower concentrate sales volumes and
concentrate grades, partially offset by higher realised prices. Inventories of
concentrates at year-end was 21,815 tonnes, compared with 6,722 tonnes in
2023.
((1) ) Included within 2024 revenue there is a transaction price of
€11,709 thousand (€9,783 thousand in 2023) related to the freight services
provided by the Group to the customers arising from the sales of copper
concentrate under CIF incoterm.
((2) ) Provisional pricing impact represented the change in fair
value of the embedded derivative arising on sales of concentrate.
((3) ) Other income mainly represents scraps.
6. Expenses by nature
(Euro 000's) 2024 2023
Operating costs* 197,793 208,416
Care and maintenance expenditure 16,723 11,511
Exploration expenses 4,975 5,103
Employee benefit expense (Note 7) 27,868 25,756
Compensation of directors and key management personnel 2,397 2,230
Auditors' remuneration - audit (Note 32) 401 452
Other accountants' remuneration 1,291 385
Consultants' remuneration 1,775 4,977
Depreciation of property, plant and equipment (Note 13) 39,658 33,307
Amortisation of intangible assets (Note 14) 3,907 4,493
Share option-based employee benefits (Note 24) 1,379 660
Shareholders' communication expense 125 232
On-going listing costs 1,114 521
Legal costs 368 1,779
Public relations and communication development 963 711
Rents (Note 28) 5,492 5,682
Other expenses and provisions (1,841) 467
Reversal of impairment losses (*) (Note 14) (6,948) -
Impairment loss on trade receivables and contract assets 1,205 -
Total 298,645 306,682
(*) An impairment charge for the same amount was recorded in the same caption:
mine site depreciation, amortisation and impairment, in the consolidated
statement of comprehensive income of 2019.
The reduction in costs was mainly due to lower input costs and an increase in
copper concentrate stock at the end of the period. The increase in
amortisation mainly due to the change of stripping ratio from 1.84 to 2.10.
(*) Operating costs primarily include mining and processing costs related to
the Proyecto Riotinto operation. These comprise costs for raw materials
(€56.2m), utilities (€31.4m), professional and contract services
(€92.9m), maintenance (€13.3m) and other direct production expenses
incurred in the extraction and processing of copper concentrate.
7. Employee benefit expense
(Euro 000's) 2024 2023
Wages and salaries 20,430 18,836
Social security and social contributions 6,613 6,246
Employees' other allowances 24 18
Bonus to employees 801 656
Total 27,868 25,756
The average number of employees and the number of employees at year end by
office are:
Average At year end
Number of employees 2024 2023 2024 2023
Spain - Full time 492 479 490 476
Spain - Part time 3 6 3 6
Cyprus - Full time 1 1 1 1
Cyprus - Part time 2 2 2 2
United Kingdom - Full time - - 1 -
Total 498 488 497 485
8. Finance income
(Euro 000's) 2024 2023
Financial interest 1,887 1,501
Other received interest - 3,892
1,887 5,393
Financial interests include interest received on bank balances of €0.6
million (2023: €0.5 million) and €1.3 million related to E-LIX project
funding (Note 13)
Other received interests, in 2023, mainly comprise the €3.5 million interest
received as a result of the agreement reached with Astor in May 2023.
9. Finance costs
(Euro 000's) 2024 2023
Interest expense:
Interest payable for borrowings 1,131 2,607
Interest expense on lease liabilities 30 25
Unwinding of discount on mine rehabilitation provision (Note 27) 828 690
1,989 3,322
Interest payable for borrowings include the financing costs related to Solar
plant, other long-term debt and other operating facilities.
10. Tax
(Euro 000's) 2024 2023
Current income tax charge 2,732 3,419
Deferred tax income relating to the origination of temporary differences (Note (6,297) (6,852)
17)
Deferred tax expense relating to reversal of temporary differences (Note 17) 2,528 2,863
(1,037) (570)
The tax on the Group's results before tax differs from the theoretical amount
that would arise using the applicable tax rates as follows:
(Euro 000's) 2024 2023
Accounting profit before tax 31,523 36,093
Tax calculated at the applicable tax rates of the Company -25% Spain (2023:
12.5% Cyprus)
7,881 4,512
Tax effect of expenses not deductible for tax purposes - 3,290
Tax effect of tax loss for the year 4,018 (1,271)
Tax effect of allowances and income not subject to tax (5,769) (4,381)
Effect of lower tax rates in other jurisdictions of the group (2,921) 993
Tax effect of tax losses brought forward - 276
Deferred tax (Note 17) (4,246) (3,989)
Tax (credit)/ charge (1,037) (570)
Tax losses carried forward
As at 31 December 2024, the Group had tax losses carried forward amounting to
€9.7 million from the Spanish subsidiaries.
Applicable tax
With regard to taxation and, in particular, income tax, the Group is subject
to the regulations of several tax jurisdictions due to the broad geographical
activities carried out by the companies comprising the Group. For this reason,
the Group effective tax rate is shaped by the breakdown of earnings obtained
in each of the countries where it operates and, occasionally, by the taxation
of these earnings in more than one country (double taxation).
Cyprus
The corporation tax rate is 12.5%. Under certain conditions interest income
may be subject to defence contribution at the rate of 30%. In such cases this
interest will be exempt from corporation tax. In certain cases, dividends
received from abroad may be subject to defence contribution at the rate of 17%
for 2014 and thereafter. Under current legislation, tax losses may be carried
forward and be set off against taxable income of the five succeeding years.
Spain
Most of the entities resident in Spain for tax purposes are subject to
taxation for corporate income tax under Spain's consolidated tax regime. Under
this regime, the companies comprising the tax group jointly determine the
Group's taxable profit and tax liability.
Atalaya Mining Copper, S.A. is the parent of Consolidated Tax Group, which
comprises all of the companies resident in Spain that are at least 75%-owned,
directly or indirectly, by the parent and that meet certain prerequisites.
This Consolidated Tax Group was composed of 7 companies in 2024, the most
significant of which are: Atalaya Mining Copper, S.A., Atalaya Riotinto
Minera, S.L.U. and Atalaya Masa Valverde S.L.U.
The rest of the companies resident in Spain for tax purposes that are not
included in the above tax group determine their income tax individually.
Spanish companies, whether taxed individually or on a consolidated basis, were
subject to a general tax rate of 25% in 2024.
The corporate income tax rate in Spain for 2024 is 25% (25% in 2023), in
accordance with the Spanish General Tax Law.
Government and legal proceedings with tax implications
The years for which the Group companies have their tax returns open for audit
with regard to income tax and the main applicable taxes are as follows:
Country Years
Spain 2020-2024
Cyprus 2019-2024
United Kingdom 2019-2024
The Group hasn't recognized tax provisions related to Administrative and
judicial proceedings with tax implications in 2024 (2023: €nil).
11. Earnings per share
The calculation of the basic and diluted earnings per share attributable to
the ordinary equity holders of the Company is based on the following data:
(Euro 000's) 2024 2023
Parent company (2,468) (6,255)
Subsidiaries 34,206 45,024
Profit attributable to equity holders of the parent 31,738 38,769
Weighted number of ordinary shares for the purposes of basic earnings per 140,404 139,880
share ('000)
Basic earnings per share (EUR cents/share) 22.6 27.7
Weighted number of ordinary shares for the purposes of diluted earnings per 145,457 144,224
share ('000)
Diluted earnings per share (EUR cents/share) 21.8 26.9
At 31 December 2024 there are nil warrants and 5,423,666 options (Note 23) (31
December 2023: nil warrants and 4,848,500 options) which have been included
when calculating the weighted average number of shares for FY2024.
12. Dividends
Cash dividends declared and paid during the year:
(Euro 000's) 2024 2023
Final dividends declared and paid 5,243 4,956
Interim dividends declared and paid 5,063 6,522
10,306 11,478
Fully paid ordinary shares carry one vote per share and carry the right to
dividends.
FY 2023
A final dividend of US$0.04 per ordinary share, which is equivalent to
approximately £0.031 per share, was proposed on 18 March 2024 for approval by
shareholders at the 2024 AGM, which gave a total dividend for 2023 of US$0.09
per share. Following the approval of Resolution 11 by the Company's
shareholders at the 2024 AGM, which took place on 27 June 2024, the final
dividend which (based on as exchange rates used for conversion after the
record date) amounted to €5.2 million was approved and the dividend was paid
on 9 August 2024.
FY 2024
On 13 August 2024, the Company's Board of Directors elected to declare an
interim dividend of US$0.04 per share, which was equivalent to approximately
3.1 pence per share. The interim dividend was paid on 19 September 2024.
A final dividend of US$0.03 per share has been proposed for approval by
shareholders at the 2025 Annual General Meeting. This would give a total
dividend for 2024 of US$0.07 per share.
13. Property, plant and equipment
(Euro 000's) Land and buildings Right of use assets ((5)) Plant and equipment Assets under construction ((3)) Deferred mining costs ((2)) Other assets ((1)) Total
2024
Cost
At 1 January 2024 83,517 7,076 319,129 70,601 64,072 951 545,346
Adjustments - - 5 - - - 5
Opening adjusted 83,517 7,076 319,134 70,601 64,072 951 545,351
Additions ((8)) 233 - 332 52,801 9,902 - 63,268
Increase in rehab. Provision (Note 27) 3,274 - - - - - 3,274
Reclassifications ((4)) - - 21,050 (21,969) - 29 (890)
Other transfer (572) - - (2,586) ((8)) - - (3,158)
Write-off - (148) - - - - (148)
Advances - - - 1,601((7)) - - 1,601
31 Dec 2024 86,452 6,928 340,516 100,448 73,974 980 609,298
Depreciation
At 1 January 2024 24,702 2,531 113,547 - 19,063 764 160,607
Adjustments - - 1 - - - 1
Opening adjusted 24,702 2,531 113,548 - 19,063 764 160,608
Charge for the year((6)) 6,192 497 27,328 - 5,655 43 39,715
Write-off - (57) - - - - (57)
31 Dec 2024 30,894 2,971 140,876 - 24,718 807 200,266
Net book value at 31 December 2024 55,558 3,957 199,640 100,448 49,256 173 409,032
2023
Cost
1 Jan 2023 80,326 7,076 291,335 50,235 52,358 872 482,202
Additions 36 - 6,011 42,149 11,714 79 59,782
Increase in rehab. provision 3,145 - - - - - 3,145
Reclassifications - - 21,783 (21,783) - - -
Advances 10 - - - - - 10
31 Dec 2023 83,517 7,076 319,129 70,601 64,072 951 545,346
Depreciation
At 1 January 2023 20,454 1,998 89,182 - 14,921 739 127,294
Adjustments - - 6 - - - 6
Opening adjusted 20,454 1,998 89,188 - 14,921 739 127,300
Charge for the year 4,248 533 24,359 - 4,142 25 33,307
31 Dec 2023 24,702 2,531 113,547 - 19,063 764 160,607
Net book value at 31 December 2023 58,815 4,545 205,582 70,601 45,009 187 384,739
((1)) Includes motor vehicles, furniture, fixtures and office equipment which
are depreciated over 5-10 years.
((2)) Stripping costs related to Cerro Colorado (note 2.9 (b))
((3)) Assets under construction at 31 December 2024 amounted to €100.4
million (2023: €70.6 million), this balance include €30.6 million related
to San Dionisio where €4.7 million are road deviation, €41.0 million Solar
plant, €7.0 million sustaining capital, €13.0 million E-LIX plant and
€28.2 million tailing dams capital expenditure. Additions include sustaining
capital expenditures with an investment of €4.0 million (2023: €3.4
million), tailings dams project €14.8 million (2023: €13.7 million), E-LIX
plant amounted to €2.1 million (€8.9 million in 2023) San Dionisio area
spending €25.7 million (2023, €4.8 million) and solar plant €8.4 million
(2023, €12.9 million).
((4)) Reclassifications of €21.1 million to plant and equipment are
associated with sustaining capex. Additionally, €0.9 million related to
low-rotation stock were reclassified to inventories (material supplies).
((5)) See leases in Note 28.
((6)) Increase of depreciation due to the update of its ore reserves in May
2024 in the subsidiary ARM.
((7)) Advances related to E-LIX plant.
((8)) During the year ended 31 December 2024, the Group capitalised €1.0
million of borrowing costs related to the construction of the solar plant in
accordance with IAS 23. The average effective interest rate applied was 1.5%.
The tax deductibility of these capitalised borrowing costs will be realised
over the asset's useful life through depreciation deductions, rather than as
an immediate tax relief.
The above fixed assets are mainly located in Spain.
E-LIX Project
In May 2019, after approx.. 4 years of laboratory work, Atalaya initiated a
partnership with Lain Technologies Ltd. (hereinafter "Lain") for the
development of technology known as E-LIX. The E-LIX Technology is a
new-developed technology invented and owned by Lain which is protected by
industrial secret. Atalaya's rights on the E-LIX technology is limited to its
use on favourable terms and other benefits but excluding the ownership.
E-LIX is an innovative electrochemical extraction process developed by Lain to
assess the production of zinc and copper cathodes, as well as other
derivatives of these metals, from complex sulphide ores.
Lain and Atalaya have worked on a partnership to develop the E-LIX technology
from 2019 to date. During these years, the collaboration has progressed
through different phases, summarised as follows:
· Phase 0: Preliminary work and research.
· Phase 1: Construction and commissioning of the Pilot Plant.
· Phase 2: Operation of the Pilot Plant and feasibility studies of
the project.
· Phase 3: Construction and commissioning of an Industrial Plant.
As a result of the successful laboratory tests carried out by Atalaya on the
E-LIX technology during Phase 0, in July 2020, Atalaya and Lain executed a
memorandum of understanding ("MOU"), with the first step being the
construction of a pilot plant (the "Pilot Plant") fully funded by Atalaya via
loans.
The Pilot Plant was built during 2021 and confirmed the feasibility of E-LIX,
proving the capacity of leaching selective metals from concentrates and
achieving high recovery rates for copper and zinc through a more efficient and
sustainable process compared to traditional methods.
In December 2021, the Company's Board of Directors approved the construction
and financing of a Phase 1 of a larger-scale plant with a significantly
greater processing capacity than the Pilot Plant (the "Industrial Plant").
As of 31 December 2024, the construction of the Industrial Plant was close to
be completed and Lain was in the process of bringing the Industrial Plant into
operation at a commercial production rate. Once the plant is fully ramped up
it is intended that the plant will operate at normal commercial levels..
Throughout the partnership from 2019 and aligned with the MOU signed between
Atalaya and Lain, several agreements have been signed, including:
· Construction of the fixed assets required for the use of the
E-LIX technology;
· Exclusivity agreements
· Funding agreements for the construction and the commissioning of
the Pilot Plant
· Funding agreements for the construction and commissioning of the
Industrial Plant; and
· Operational agreements for the construction of the Industrial
Plant.
As of 31 December 2024, Atalaya has the following balances relating to the
pilot plant and the industrial plant arising from the agreements with Lain:
Description Caption Note Amount (€k)
Pilot plant Non-current loan 19 2,627
Industrial Plant Non-current Receivables (prepayment) 20 29,662
Industrial Plant PPE 13 12,978
Convertible Loan Current loan 19 5,352
50,619
Recoverability of Assets
The E-LIX technology has demonstrated positive results in the recovery of pure
zinc and copper, as well as their derivatives, in a technologically efficient
manner. The E-LIX technology has the potential to unlock the production of
metals from complex ore in a financially and sustainable viable manner and its
use at an industrial scale could potentially increase significantly the life
of the mine at Proyecto Riotinto.
As of the reporting date, Atalaya has a reasonable expectation that the E-LIX
technology can operate a commercial scale. During 2024, the construction of
the Industrial Plant and the ramp up experienced certain delays but unrelated
to the E-LIX technology.
Atalaya has considered both external and internal factors that support the
strength of the project and has assessed the recoverability of the assets
associated with E-LIX technology based on a financial model that demonstrates
its long-term sustainability.
The main production assumptions used in the base case financial model zinc
model are as follows for the balances relating to the pilot and industrial
plant:
Main assumptions for the E-LIX model
Total investment (*) €million 45
Processing capacity Tpa cons 74,500
Zinc metal produced tpa Zn 6,700
Zinc recovery rate % 90
Zinc grade in concentrate % 10
(*) excluding convertible loan which is guaranteed with equity of Lain.
The assessment carried out by the Company on the zinc base case financial
model results on an after-tax NPV (8%) of €18.8 million a 14% IRR and a
payback period of 7 years estimated using long-term prices of 3,000 US$/tonne.
Whilst the ramp-up of the Industrial Plant is not completed and the production
assumptions are yet to be proven, the Company has enough information to
consider the above production assumptions as reasonable. In addition, various
adverse scenarios were tested to determine whether, as at 31 December 2024,
the asset related to the E-LIX technology should be impaired, including lower
recovery rates, higher sustaining capex and sensitivity on zinc prices ranging
+/- 15% of the base case price and additional delays of the ramp-up with a
€10 million extra investment.
Based on the base case financial model analysis, and while acknowledging that
unforeseen delays in the ramp up or unfavourable market conditions could
influence this outlook, the Board has a reasonable expectation that Atalaya
will be able to recover the balances relating to Lain and therefore, no
impairment indicators have been identified.
14. Intangible assets
(Euro 000's) Permits ((1)) Licences, R&D and Software Other intangible assets Total
2024
Cost
At 1 January 2024 81,199 8,758 - 89,957
Additions - - 17,771((2)) 17,771
Reclassification (3,128) (6,948) 10,076 -
31 Dec 2024 78,071 1,810 27,847 107,728
Amortisation
At 1 January 2024 32,080 8,480 - 40,560
Charge for the year 3,878 29 - 3,907
Reversal of impairment losses - (6,948) - (6,948)
31 Dec 2024 35,958 1,561 - 37,519
Net book value at 31 December 2024 42,113 249 27,847 70,209
-
2023
Cost
1 Jan 2023 81,255 8,642 - 89,897
Additions 144 116 - 260
Disposals (200) - - (200)
31 Dec 2023 81,199 8,758 - 89,957
Amortisation
1 Jan 2023 27,627 8,440 - 36,067
Charge for the year 4,453 40 - 4,493
31 Dec 2023 32,080 8,480 - 40,560
Net book value at 31 December 2023 49,119 278 - 49,397
((1) ) Permits include the mining rights of Proyecto Riotinto,
Proyecto Touro, Masa Valverde and Ossa Morena
((2) ) Additions include €16.7 million at fair value related to
the interest to acquire the 80% of the shares of Cobre San Rafael, SL, as per
the Shareholders' Agreement, including €16.5 million (note 26) and €0.2
million related to capitalisation expenses according with the policy of the
Group once the Touro Project was granted as Strategic Industrial Project
(PIE).
The ultimate recovery of balances carried forward in relation to areas of
interest or all such assets including intangibles is dependent on successful
development, and commercial exploitation, or alternatively the sale of the
respective areas.
The Group conducts impairment testing in case there is an indicator of
impairment. Atalaya assessed its assets concluding that there are no
indicators of impairment for either Proyecto Riotinto or any other as of 31
December 2024 and 2023.
((4)) Reversal of Impairment on Intangible Assets
On 29 January 2020, the Company released an update on Proyecto Touro. The
Company announced a recent press released by the regional government of
Galicia ("Xunta de Galicia") in relation to the permitting process, where the
General Directorate to the Mines, Energy and Industry Department announced a
negative Environmental Impact Statement for Proyecto Touro.
As a result of the announcement made by the Xunta de Galicia, the Company
re-assessed the uncertainty about the feasibility of obtaining the necessary
permits for Touro, impacting the project's development prospects.
As at result of the re-assessment, the Company booked as at 31 December 2019
an impairment of €6.9 million related to the capitalised cost incurred by
the Company to the date according to its accounting policy. However, the
Company retained the value of the mining rights at €5.0 million, as these
rights remained in force.
Since 2019, the Company had actively worked with stakeholders to advance the
permitting process and improve the regulatory framework for Proyecto Touro. In
2024, the permitting and operational environment for the project had improved
significantly, leading to a reassessment of its technical and financial
feasibility.
A key development had been the designation of Proyecto Touro as a Strategic
Industrial Project ("PIE") by the Xunta de Galicia. This designation had
granted priority status, accelerated administrative procedures, and reduced
regulatory uncertainties, removing the primary risk factor that had led to the
initial impairment.
In compliance with IAS 36 - Impairment of Assets, the Company had conducted an
impairment test as at 31 December 2024, concluding that the conditions that
had led to the impairment in 2019 no longer existed. The impairment test had
been carried out by evaluating both technical and financial feasibility,
confirming that the project was in a position to generate economic benefits in
line with initial expectations.
The impairment assessment had considered:
- Technical viability, based on updated resource and reserve
estimates, engineering reports, and environmental compliance advancements.
- Financial feasibility, including updated cash flow projections,
capital expenditure forecasts, and a revised financing strategy that had
demonstrated the project's ability to meet investment requirements.
- Projected long-term copper prices, in line with industry
benchmarks and independent market forecasts.
- Capital and operating cost projections, supported by recent
feasibility studies
To further validate the assessment, an independent third-party valuation of
the mining assets had been conducted. The valuation had confirmed that the
estimated fair value of the project was higher than the total carrying amount
of the intangible assets associated with Proyecto Touro, reinforcing the
recoverability of the asset.
As a result, the impairment loss of €6.9 million had been fully reversed as
at 31 December 2024, reflecting the improved expectations for the project and
supporting the recoverability of the asset in accordance with IAS 36 -
Impairment of Assets.
This assessment had demonstrated that there had been no doubts regarding the
technical and financial viability of Proyecto Touro as at the reporting date,
further supporting the impairment reversal.
15. Non-current assets
During the year, the Group entered into agreements with Mineral Prospektering
i Sverige AB ("MPS") in relation to the Skellefte Belt Project and the
Rockliden Project, both located in established volcanogenic massive sulphide
("VMS") districts known for their potential mineral resources.
The Group entered into earn-in agreements with MPS to acquire an initial 75%
interest in these projects, structured as follows:
- An initial funding commitment of US$3 million per project, to be
invested over a 24-month period.
- Stage 1 option to provide additional funding of US$3 million per
project to secure a 51% ownership interest.
- Stage 2 option to provide additional funding of US$6 million per
project, and complete scoping studies, to secure a 75% ownership interest.
During 2024, a total of €1.2 million in funding was provided to MPS in
relation to preparatory work for the planned winter drilling campaigns and to
compensate for certain past expenditures incurred by MPS.
The following table summarises the movement in exploration and evaluation
assets during the year:
(Euro 000's) 2024 2023
Opening balance as of 1 January - -
Additions during the year 1,205 -
Impairment losses (1,205) -
Closing balance as of 31 December - -
As of 31 December 2024, the carrying amount of exploration and evaluation
assets was reviewed for impairment. Following management's assessment, the
Company recognised a full impairment of €1.2 million, as these projects
remain in the early exploration stage and are still far from obtaining
operating mining permits.
16. Investment in joint venture
Country of incorporation Effective proportion of shares
Company name Principal activities held at 31 December 2015
Recursos Cuenca Minera S.L. Exploitation of tailing dams and waste areas resources Spain 50%
In 2012, ARM initiated a 50/50 joint venture with Rumbo to assess and leverage
the potential of class B resources within the tailings dam and waste areas at
Proyecto Riotinto. Pursuant to the joint venture agreement, ARM served as the
operator and reimbursed Rumbo for the expenses linked to the classification
application for the Class B resources. ARM covered the initial expenses for a
feasibility study, with a maximum funding limit of €2.0 million. Subsequent
costs were shared by the joint venture partners in accordance with their
respective ownership interests.
The Group's significant aggregate amounts in respect of the joint venture are
as follows:
(Euro 000's) 31 Dec 2024 31 Dec 2023
Intangible assets 94 94
Trade and other receivables 4 3
Cash and cash equivalents 15 19
Trade and other payables (115) (115)
Net assets 2 1
Revenue - -
Expenses - -
Net profit/(loss) after tax - -
17. Deferred tax
Consolidated statement of financial position Consolidated income statement
(Euro 000's) 2024 2023 2024 2023
Deferred tax asset
At 1 January 11,282 7,293 - -
Deferred tax income relating to the origination of temporary differences (Note
10)
6,297 6,852 (6,297) (6,852)
Deferred tax asset due to losses available against future taxable income
overprovision previous years
34 - - -
Deferred tax expense relating to reversal of temporary differences (Note 10)
(2,528) (2,863) 2,528 2,863
At 31 December 15,085 11,282
Deferred tax income/(expense) (Note 10) (3,769) (3,989)
18. Inventories
Deferred tax assets are recognised for the carry-forward of unused tax losses
and unused tax credits to the extent that it is probable that taxable profits
will be available in the future against which the unused tax losses/credits
can be utilised. The Group held tax losses amounted to €9.7 million in Spain
(2023: €6.0 million).
(Euro 000's) 31 Dec 2024 31 Dec 2023
Finished products 19,732 8,416
Materials and supplies 25,540 21,852
Work in progress 3,890 3,046
49,162 33,314
As at 31 December 2024, copper concentrate produced and not sold amounted to
21,815 tonnes (FY2023: 6,722 tonnes), due to timing on shipments. Accordingly,
the inventory for copper concentrate was €19.7 million (FY2023: €8.4
million). During the year 2024 the Group recorded cost of sales amounting to
€242.2 million (FY2023: €247.3 million).
Materials and supplies relate mainly to machinery spare parts. Work in
progress represents ore stockpiles, which is ore that has been extracted and
is available for further processing.
19. Loans
(Euro 000's) 2024 2023
Non-current loans
Loans 2,627 -
2,627 -
Current loans
Loans 5,352 -
5,352 -
During 2024, the Company reassessed the classification of a loan related to
the funding of the E-LIX pilot plant. This loan, originally classified as
prepayments for service contract under trade receivables, has been
reclassified as a non-current loan, as it is now considered more probable that
the recoverability will be in cash rather than through the use of the E-LIX
technology.
The original agreement with Lain Technologies Ltd. contemplated both
possibilities-repayment in cash or recovery through the use of the E-LIX
technology. Initially, the Company expected to recover the amount through the
use of the technology; however, following a reassessment, it has now been
concluded that repayment in cash is the more probable outcome.
This change in classification is a reclassification and not a correction of an
error, as the previous classification was based on the Company's best estimate
at the time. Given the updated assessment of the expected recovery method, the
loan has been presented accordingly in 2024.
Non-current loans are referred to the loan with Lain Technologies regarding
the Pilot Plant. Includes principal for €2.3 million plus €0.3 million of
interest accumulated (see note 13). This balance bears interest of EURIBOR 12M
+ 2%. This amount has been reclassified from prepayments regarding the
previous year.
On 30 September 2024 the Company signed a convertible loan, granting a credit
facility of up to a maximum amount of €10 million. This facility was granted
for a fixed term up to 31 December 2025. This balance bears interest of
EURIBOR 3M + 2%. This balance includes €5.3 million referred to the
convertible loan with Lain Technologies Ltd plus €0.1. of interest
accumulated (see note 13).
20. Trade and other receivables
(Euro 000's) 2024 2023
Non-current trade and other receivables
Deposits 611 307
Loans 141 233
Prepayments for service contract ((1)) 29,662 23,476
Other non-current receivables 2,838 2,686
33,252 26,702
Current trade and other receivables
Trade receivables at fair value - subject to provisional pricing 9,727 10,110
Trade receivables from shareholders at fair value - subject to provisional 1,042 5,054
pricing (Note 31.5)
Other receivables from related parties at amortised cost (Note 31.4) - 56
Deposits 35 37
VAT receivable 20,898 21,003
Prepayments 4,507 5,855
Other current assets 654 782
36,863 42,897
Allowance for expected credit losses - -
Total trade and other receivables 70,115 69,599
((1)) On 28 January 2022 the Company signed a loan for €15 million and on 8
May 2023 an amendment up to €20 million to the construction of the first
phase of the industrial-scale plant ("Phase I") that utilises the E-LIX
System. This loan was granted for a fixed term of 10 years since the start of
commercial production. This balance includes capitalised interest, and
repayment will be made through the use of the E-LIX technology.
((1)) This balance also includes €7.6 million refer additional costs
classified as prepayments related to Industrial Plant of Proyecto E-LIX (see
note 13).
Trade receivables are shown net of any interest applied to prepayments.
Payment terms are aligned with offtake agreements and market standards and
generally are 7 days on 90% of the invoice and the remaining 10% at the
settlement date which can vary between 1 to 5 months. The fair value of trade
and other receivables approximate their book values.
Non-current deposits included €250k (€250k at 31 December 2023) as a
collateral for bank guarantees, which was recorded as restricted cash (or
deposit) in Proyecto Riotinto and €334k related to Proyecto Masa Valverde.
21. Other Financial assets
(Euro 000's) 31 Dec 2024 31 Dec 2023
Financial asset at fair value through OCI (see (a) below) 1,124 1,131
Total current 23 30
Total non-current 1,101 1,101
a) Financial assets at fair value through OCI
(Euro 000's) 31 Dec 2024 31 Dec 2023
At 1 January 1,131 1,134
Fair value change recorded in equity (Note 24) (7) (3)
At 31 December 1,124 1,131
Country of incorporation Effective proportion of shares
Company name Principal activities held at 31 December 2024
Explotaciones Gallegas del Cobre SL Exploration company Spain 12.5%
KEFI Minerals Plc Exploration and development mining company listed on AIM UK 0.19%
Prospech Limited Exploration company Australia 0.53%
The Group decided to recognise changes in the fair value through Other
Comprehensive Income ('OCI'), as explained in Note 2.12.
As per Note 2.29, the Group's investment in Explotaciones Gallegas del Cobre
S.L., amounting to €1,101k, is classified as a Level 3 financial instrument,
as its fair value is based on unobservable inputs.
The fair value is determined using valuation techniques that reflect the
asset's nature and the absence of an active market. The primary methodology
applied is a market-based approach, considering comparable transactions within
the mining exploration sector. Where such data is unavailable, management
applies an adjusted cost approach, incorporating estimates of resource
potential and exploration progress.
The valuation is reviewed periodically, considering changes in market
conditions, commodity prices, and exploration results.
22. Cash and cash equivalents
(Euro 000's) 31 Dec 2024 31 Dec 2023
Unrestricted cash and cash equivalents at Group level 43,184 94,868
Unrestricted cash and cash equivalents at Operation level 9,694 26,139
Consolidated cash and cash equivalents 52,878 121,007
Cash and cash equivalents denominated in the following currencies:
(Euro 000's) 31 Dec 2024 31 Dec 2023
Euro - functional and presentation currency 37,299 50,470
Great Britain Pound 70 52
United States Dollar 15,509 70,485
52,878 121,007
23. Share capital
Shares Share Capital Share premium Total
000's €'000 €'000 €'000
Authorised
Ordinary shares of €0.09 each* 200,000 18,000 - 18,000
Issued and fully paid Shares Share Capital Share premium Total
Issue Date Price (£) Details 000's €'000 €'000 €'000
31 December 2022/1 January 2023 139,880 13,596 319,411 333,007
31-Dec-23 139,880 13,596 319,411 333,007
9-Feb-24 3.090 Exercised share options ((a)) 20 3 71 74
7-May-24 2.015 Exercised share options ((b)) 67 6 151 157
22-May-24 2.015 Exercised share options ((c)) 600 53 1,368 1,421
27-Jun-24 4.160 Exercised share options ((d)) 120 11 570 581
27-Jun-24 3.575 Exercised share options ((d)) 36 3 149 152
27-Jun-24 3.270 Exercised share options ((d)) 36 3 136 139
26- Dec 24 Capital increase** 272 272
26- Dec 24 Capital decrease** - (1,279) - (1,279)
31-Dec-2024 140,759 12,668 321,856 334,524
*The Company´s share capital at 31 December 2024 is 140,759,043 ordinary
shares (139,879,209 in 2023) of €0.09 each.
** Decrease of capital from 7.5p to €0.09 per share
Authorised capital
The Company's authorised share capital is 200,000,000 ordinary shares After
the re-domiciliation of Atalaya to Spain, in order to comply with Spanish law,
redenominate it to euros, thereby increasing the share capital (represented by
140,759,043 ordinary shares) to 12,395,853.02 euros, instead of 10,556,928.2
GBP, and the nominal value per ordinary share to 0.088065 EUR instead of 0.075
GBP (all applying the exchange rate of 0.85165 EUR/GBP. In order to round the
nominal value of the shares following the Cross-Border Transformation, the
shareholders have agreed to increase the Company's share capital, currently
amounting to €12,395,853.02, by €272,460.85. This has resulted in an
increase of €0.001935 in the nominal value of each share, thereby setting
the nominal value per share at €0.09. The share capital increase has been
carried out using distributable reserves.
Issued capital
(a) On 9 February 2024, the Company announced that it has issued 20,000
ordinary shares of 7.5p in the Company ("Option Shares") pursuant to an
exercise of share options by an employee.
(b) On 7 May 2024, Atalaya announced that it has issued 66,500 ordinary
shares of 7.5p in the Company ("Option Shares") pursuant to an exercise of
share options by an employee.
(c) On 22 May 2024, the Company announced that it has issued 600,000
ordinary shares of 7.5p in the Company ("Option Shares") pursuant to an
exercise of share options by a person discharging managerial responsibilities
("PDMR").
(d) On 27 June 2024, Atalaya announced that it has issued 193,334 ordinary
shares of 7.5p in the Company ("Option Shares") pursuant to the exercise of
share options by an employee. These options were issued as part of the
Company's long term incentive plan.
No shares were issued in FY2023.
24. Other reserves
(Euro 000's) FV reserve of financial assets at FVOCI ((2)) Non-distributable reserve ((3)) Total
Distributable reserve((4))
Share option Bonus share Depletion factor ((1))
1 Jan 2023 10,365 208 37,778 (1,153) 8,316 14,291 69,805
Recognition of share based payments 661 - - - - - 661
Change in fair value of financial assets at fair value through OCI (Note 21) - - - (3) - - (3)
31 Dec 2023/1 Jan 2024 11,026 208 37,778 (1,156) 8,316 14,291 70,463
Recognition of depletion factor - - 8,949 - - - 8,949
Recognition of non-distributable reserve - - - - 142 - 142
Recognition of distributable reserve - - - - - 7,848 7,848
Recognition of share based payments 1,379 - - - - - 1,379
Change in fair value of financial assets at fair value through OCI (Note 21) - - - (7) - - (7)
Other changes in reserves 464 - - - - (464) -
31 Dec 2024 12,869 208 46,727 (1,163) 8,458 21,675 88,774
((1) ) Depletion factor reserve
During the twelve month period ended 31 December 2024, the Group has
recognised €8.9 million (FY2023: addition of €nil) as a depletion factor
reserve as per the Spanish Corporate Tax Act.
((2) ) Fair value reserve of financial assets at FVOCI
The Group decided to recognise changes in the fair value of certain
investments in equity securities in OCI. These changes are accumulated within
the FVOCI reserve under equity. The Group transfers amounts from this reserve
to retained earnings when the relevant equity securities are derecognised.
((3) ) Non-distributable reserve
As required by the Spanish Corporate Tax Act, the Group classified a
non-distributable reserve of 10% of the profits generated by the Spanish
subsidiaries until the reserve is 20% of share capital of the subsidiary for
an amount of €8.0m.
((4) ) Distributable reserve
This heading includes the transfer from income for the year attributable to
the parent for 2024.
((5) ) Share options
Details of share options outstanding as at 31 December 2024:
Grant date Expiry date Exercise price £ Share options
30 Jun 2020 30 Jun 2030 1.475 516,000
24 Jun 2021 23 Jun 2031 3.090 996,000
22 Jun 2022 30 Jun 2027 3.575 1,188,333
22 May 2023 21 May 2028 3.270 1,268,333
11 June 2024 10 Jun 2029 4.135 1,305,000
22 Dec 2024 21 Dec 2029 3.335 150,000
Total 5,423,666
Weighted average Share options
exercise price £
At 1 January 2024 2.968 4,848,500
Granted options during the year 4.053 1,455,000
Options executed during the year 2.449 (879,834)
31 December 2024 3.343 5,423,666
On 12 June 2024, the Company announced that in accordance with the Company's
Long Term Incentive Plan 2020, it granted 1,305,000 share options to Persons
Discharging Managerial Responsibilities ("PDMRs") and other employees and, on
22 December was granted 150,000 share options (the "Options") to an employee.
On 9 February 2024, the Company announced that it has issued 20,000 ordinary
shares of 7.5p in the Company ("Option Shares") pursuant to an exercise of
share options by a former employee.
On 7 May 2024, the Company announced that it has issued 66,500 ordinary shares
of 7.5p in the Company ("Option Shares") pursuant to an exercise of share
options by non-PDMR employees and on 22 May announced that 600,000 ordinary
On 23 May 2023, the Company announced that in accordance with the Company's
Long Term Incentive Plan 2020, it granted 1,305,000 share options to Persons
Discharging Managerial Responsibilities ("PDMRs") and other employees.
In general, option agreements contain provisions adjusting the exercise price
in certain circumstances including the allotment of fully paid ordinary shares
by way of a capitalisation of the Company's reserves, a subdivision or
consolidation of the ordinary shares, a reduction of share capital and offers
or invitations (whether by way of rights issue or otherwise) to the holders of
ordinary shares.
The estimated fair values of the options were calculated using the Black
Scholes option pricing model. The inputs into the model and the results are as
follows:
Grant Weighted average share price £ Weighted average exercise price £ Expected volatility Expected life Risk Expected dividend yield Estimated Fair Value £
Date (years) Free
rate
23 Feb 2017 1.440 1.440 51.8% 5 0.6% Nil 0.666
29 May 2019 2.015 2.015 46.9% 5 0.8% Nil 0.66
8 July 2019 2.045 2.045 46.9% 5 0.8% Nil 0.66
30 June 2020 1.475 1.475 50.32% 10 0.3% Nil 0.60
23 June 2021 3.090 3.090 50.91% 10 0.7% Nil 0.81
26 Jan 2022 4.160 4.160 49.18% 10 1.149% Nil 1.12
22 June 2022 3.575 3.575 34.12% 5 2.748% Nil 0.71
22 May 2023 3.270 3.270 38.15% 5 4.219% Nil 0.88
11 June 2024 4.135 4.135 39.28% 5 4.149% 2.13% 0.93
22 Dec 2024 3.335 3.335 39.28% 5 4.322% 2.13% 0.79
The volatility has been estimated based on the underlying volatility of the
price of the Company's shares in the preceding twelve months.
25. Non-controlling interest
(Euro 000's) 2024 2023
Opening balance (9,104) (6,998)
Share of total comprehensive income for the year 822 (2,106)
Revaluation of NCI 10,436 -
Closing balance 2,154 (9,104)
The non-controlling interest corresponds to the partner involved in Sociedad
Cobre San Rafael, the owner of the Touro project.
Change of controlling interest
Atalaya held an initial 10% stake in Cobre San Rafael S.L., which, under
normal circumstances, would classify it as a non-controlling investment with
limited influence over the company's operations. However, to determine of the
effective control of the company it has been considered the substantive
contractual arrangements between Atalaya and the other shareholders according
to note 2.3.
As a result of the changes in project Touro that have occurred during the
current year (note 1) , Group considers it likely that phases 2, 3 and 4 of
the Touro project will be completed, and therefore, it has been recorded the
associated impact in Non-controlling interest, according with the shareholders
agreement, due to the impact that the project's phase change has on the
responsibilities agreed between the parties as outlined in notes 1, as
well as the allocation of the intangible asset that also emerged during the
2024 fiscal year.
The significant financial information with respect to the subsidiary before
intercompany eliminations as at and for the twelve-month period ended 31
December 2024 and 2023 is as follows:
(Euro 000's) 2024 2023
Non-current assets 15,322 7,273
Current assets 1,636 601
Non-current liabilities (21,624) (17,096)
Grants (177) -
Current liabilities (960) (697)
Equity 9,915 7,578
(Profit)/loss for the year and total comprehensive income (4,112) 2,341
Allocation of consolidated intangible assets 3,315 -
26. Trade and other payables
(Euro 000's) 31 Dec 2024 31 Dec 2023
Non-current trade and other payables
Other non-current payables 12,492 2,003
Government grant 1,491 202
13,983 2,205
Current trade and other payables
Trade payables 78,965 70,303
Trade payables to shareholders (Note 31.5) 109 179
Accruals 2,505 3,395
VAT payable - 391
Other 8,511 1,654
90,090 75,922
As of 31 December 2024, other non-current payables include €9.7 million
reflecting the liabilities related to the potential acquisition of 80% of the
shares of Cobre San Rafael, SL, as per the Shareholders' Agreement (note 14).
In addition, there are €2.8 million related with the acquisition of Atalaya
Masa Valverde SL formerly Cambridge Minería España, SL and Atalaya Ossa
Morena SLU formerly Rio Narcea Nickel, SL (note 1).
Other current payables include €6.8 million also related to the potential
increase in the stake of Cobre San Rafael, S.L., under the Shareholders'
Agreement (note 14). This amount has been classified as current, as the
likelihood of reaching the associated milestone is high, making settlement
probable within 2025.
Trade payables are mainly for the acquisition of materials, supplies and other
services. These payables do not accrue interest and no guarantees have been
granted. The fair value of trade and other payables approximate their book
values.
The Group's exposure to currency and liquidity risk related to liabilities is
disclosed in Note 3.
Trade payables are non-interest-bearing and are normally settled on 60-day
terms.
Information on the average period of payment to suppliers in Spain
The disclosures made in relation to the average period of payment for trade
payables in Spain are presented below in accordance with that established in
applicable law.
Average payment days to suppliers
Days 2024 2023
Average payment days for payment to suppliers 28 27
Ratio of transactions paid 31 29
Ratio of transactions outstanding for payment 15 25
(€m) 2024 2023
Total payments made 187.8 363.2
Total payments made within the legal term 115.3 339.7
Percentage over total payments 80% 94%
Total payments outstanding 50.8 36.3
Number of invoices 2024 2023
Number of invoices within the legal term ((1)) 7,013 11,524
Percentage over total invoices 85% 88%
27. Provisions
(Euro 000's) Other provisions Legal costs Rehabilitation costs Total
31 Dec 2022/1 Jan 2023 1,435 226 23,374 25,035
Additions - 1 - 1
Used of provision (685) - (518) (1,203)
Increase of provision - - 3,145 3,145
Finance cost (Note 9) - - 690 690
31 Dec 2023/1 Jan 2024 750 227 26,691 27,668
Additions - 230 - 230
Used of provision - (62) (944) (1,006)
Transfer to other non-current Payables
(750) - - (750)
Increase of provision - - 3,274 3,274
Finance cost (Note 9) - - 828 828
31 Dec 2024 - 395 29,849 30,244
(Euro 000's) 2024 2023
Non-Current 29,328 27,234
Current 916 434
Total 30,244 27,668
Rehabilitation provision
Rehabilitation provision represents the estimated cost required for adequate
restoration and rehabilitation upon the completion of production activities.
These amounts will be settled when rehabilitation is undertaken, generally
over the project's life.
During 2020, Management engaged an independent consultant to review and update
the rehabilitation liability. The updated estimation includes the expanded
capacity of the plant and its impact on the mining project.
The discount rate used in the calculation of the net present value of the
liability as at 31 December 2024 was 3.23% (2023: 3.62%), which is the 15-year
Spain Government Bond rate for 2024. An inflation rate of 2%-2.80% (2023:
1%-3.10%) is applied on annual basis
In May 2024, Atalaya incorporated an update of its ore reserves based on an
independent expert analysis in accordance with the Canadian Institute of
Mining, Metallurgy and Petroleum ("CIM") Definition Standards on Mineral
Resources and Mineral Reserves adopted by the CIM Council (the "CIM
Standards"). This update has some impact on our financial statements and
accounting estimates and reflects a revised understanding of the economic
potential and operational requirements of our mining assets.
The expected payments for the rehabilitation work are as follows:
(Euro 000 's) Between Between More than 10 years
1 - 5 Years 6 - 10 Years
Expected payments for rehabilitation of the mining site, discounted 5,167 19,612 5,070
Legal provision
The Group has been named as defendant in several legal actions in Spain, the
outcome of which is not determinable as at 31 December 2024. Management has
reviewed individually each case and made a provision of €395k (€227k in
2023) for these claims, which has been reflected in these consolidated
financial statements.
28. Leases
(Euro 000's) 31 Dec 2024 31 Dec 2023
Non-current
Leases 3,320 3,877
3,320 3,877
Current
Leases 481 501
481 501
The Group entered into lease arrangements for the renting of land and a
warehouse which are subject to the adoption of all requirements of IFRS 16
Leases (Note 2.2). The Group has elected not to recognise right-of-use assets
and lease liabilities for short-term leases that have a lease term of 12
months or less and leases of low-value assets.
Amounts recognised in the statement of financial position and profit or loss
Set out below are the carrying amounts of the Group's right-of-use assets and
lease liabilities and the movements during the period:
Right - of-use assets
Laboratory equipment Lease liabilities
(Euro 000's) Lands and buildings Vehicles Total
As at 1 January 2024 4,545 - - 4,545 4,378
Additions - - - - -
Depreciation expense (440) - - (440) -
Interest expense - - - - 30
Payments - - - - (519)
Write-off (148) (148) (88)
As at 31 December 2024 3,957 - - 3,957 3,801
The amounts recognised in profit or loss, are set out below:
Twelve Twelve month ended
month ended 31 Dec
31 Dec 2023
(Euro 000's) 2024
As at 31 December
Depreciation expense of right-of-use assets (440) (533)
Interest expense on lease liabilities (30) (25)
Total amounts recognised in profit or loss (470) (558)
The Group recognised rent expense from short-term leases (Note 6).
The duration of the land and building lease is for a period of twelve years.
Payments are due at the beginning of the month escalating annually on average
by 1.5%. At 31 December 2024, the remaining term of this lease is six years.
(Note 2).
Present value of minimum lease payments due 31 Dec 2024 31 Dec 2023
€'000 €'000
Within one year 481 501
2 to 5 years 1,856 1,928
Over 5 years 1,464 1,949
3,801 4,378
Minimum lease payments due 31 Dec 2024 31 Dec 2023
€'000 €'000
Within one year 518 531
2 to 5 years 2,075 2,125
Over 5 years 1,729 2,285
4,322 4,941
(Euro 000's) Lease liability
Balance 1 January 2024 4,378
Additions -
Interest expense 30
Lease payments (519)
Write-off (88)
Balance at 31 Dec 2024 3,801
Balance at 31 Dec 2024
- Non-current liabilities 3,320
- Current liabilities 481
3,801
29. Borrowings
(Euro 000's) 2024 2023
Non-current borrowings
Credit facilities - fix interest - -
Credit facilities - variable interest 10,866 16,131
10,866 16,131
Current borrowings
Credit facilities - fix interest - 5,626
Credit facilities - variable interest 6,921 44,930
6,921 50,556
The Group had credit approval for unsecured facilities totalling €97.4
million (€103.8 million at 31 December 2023). During 2024, Atalaya drew down
some of its existing credit facilities to finance the solar plant, payable
amount of €13.9 million at 31 December 2024 (2023: €20.0m) and for the
construction of a new part of the processing plant payable amount of €2.8
million at 31 December 2024 (2023: €nil).
Borrowing with fixed interest rates in 2023 was between a range of 2.00% and
2.45%. Margins on borrowings with variable interest rates, usually 3 months
EURIBOR and 12 months EURIBOR, range from 0.75% to 2.25% with an average
margin of 1.25%.
At 31 December 2024, the Group had used €17.8 million of its facilities and
had undrawn facilities of €79.5 million.
29(a) Net debt reconciliation
Reconciliation of Liabilities Arising from Financing Activities
In accordance with IAS 7 paragraph 44D, the reconciliation below provides
information on changes in liabilities arising from financing activities,
including both cash and non-cash changes.
€'000 2024 2023
Cash and cash equivalents 52,878 121,007
Borrowings - repayable within one year (6,921) (50,556)
Borrowings - repayable after one year (10,866) (16,131)
Lease (3,801) (4,378)
Net debt 31,290 49,942
€'000 Cash Borrowings Lease Total
Net debt as at 1 January 2023 126,448 (73,363) (4,914) 48,171
Financing cash flows (4,504) - - (4,504)
Proceeds from borrowings - (36,730) - (36,730)
Repayment of borrowings - 43,216 536 43,752
Foreign exchanges adjustments (937) - - (937)
Other changes
Interest paid - 2,607 25 2,632
Interest expense - (2,417) (25) (2,442)
Net debt as at 31 December 2023 121,007 (66,687) (4,378) 49,942
Financing cash flows (69,931) - - (69,931)
Proceeds from borrowings - (3,000) - (3,000)
Repayment of borrowings - 51,900 519 52,419
Foreign exchanges adjustments 1,802 - - 1,802
Other changes
Interest paid - 1,131 30 1,161
Interest expense - (1,131) (30) (1,161)
Other changes - 58 58
Net debt as at 31 December 2024 52,878 (17,787) (3,801) 31,290
(*) The comparative figures of the cash flow statement includes further
breakdown in respect comparative figures, breaking down loan proceeds and
repayments for a better understanding of the movement.
30. Acquisition, incorporation and disposals of subsidiaries
2024
Acquisition and incorporation of subsidiaries
There were no acquisition or incorporation of subsidiaries during the year.
Disposals of subsidiaries
There were no disposals of subsidiaries during the year.
Wind-up of subsidiaries
There were no disposals of subsidiaries during the year.
2023
Acquisition and incorporation of subsidiaries
There were no acquisition or incorporation of subsidiaries during the year.
Disposals of subsidiaries
There were no disposals of subsidiaries during the year.
Wind-up of subsidiaries
There were no disposals of subsidiaries during the year.
31. Group information and related party disclosures
31.1 Information about subsidiaries
These audited consolidated financial statements include:
Effective proportion of shares held
Parent Principal activity Country of incorporation
Subsidiary companies
Atalaya Touro (UK) Ltd Atalaya Mining Copper SA Holding United Kingdom 100%
Atalaya Financing Ltd Atalaya Mining Copper SA Financing Cyprus 100%
Atalaya MinasdeRiotinto Project (UK) Ltd Atalaya Mining Copper SA Holding United Kingdom 100%
EMED Marketing Ltd Atalaya Mining Copper SA Trading Cyprus 100%
Atalaya Riotinto Minera S.L.U. Atalaya MinasdeRiotinto Project (UK) Ltd Production Spain 100%
Eastern Mediterranean Exploration and Development S.L.U. Atalaya MinasdeRiotinto Project (UK) Ltd Dormant Spain 100%
Cobre San Rafael, S.L. ((1)) Atalaya Touro (UK) Ltd Exploration Spain 10%
Recursos Cuenca Minera S.L.U. Atalaya Riotinto Minera SLU Dormant Spain J-V
Fundacion Atalaya Riotinto Atalaya Riotinto Minera SLU Trust Spain 100%
Atalaya Servicios Mineros, S.L.U. Atalaya MinasdeRiotinto Project (UK) Ltd Holding Spain 100%
Atalaya Masa Valverde S.L.U. Atalaya Servicios Mineros, S.L.U. Exploration Spain 100%
Atalaya Ossa Morena S.L.U. ((3)) Atalaya Servicios Mineros, S.L.U. Exploration Spain 99.9%
Iberian Polimetal S.L.U. Atalaya Servicios Mineros, S.L.U. Dormant Spain 100%
((1)) Cobre San Rafael, S.L. is the entity which holds the mining rights of
Proyecto Touro. The Group has control in the government, key management and
other key business aspects of Cobre San Rafael, S.L., including one of the two
Directors, management of the financial books and the capacity of appointment
the key personnel (Note 2.3 (b) (1)).
Transactions between Atalaya and Cobre San Rafael are not disclosed as related
party interest as they are fully eliminated as part of the consolidation
process (Note 2.3 (b)).
((3)) Rio Narcea Nickel, S.L.U. changed its name to Atalaya Ossa Morena, S.L.U
on 31 January 2022. In July 2022, Atalaya increased its ownership interest in
Proyecto Ossa Morena to 99.9%, up from 51%, following completion of a capital
increase that will fund exploration activities.
The following transactions were carried out with related parties:
31.2 Compensation of key management personnel
The total remuneration and fees of Directors (including executive Directors)
and other key management personnel was as follows:
The Group
(Euro 000's) 2024 2023
Directors' remuneration and fees 1,275 1,092
Director's bonus ((1)) 294 322
Share option-based benefits to Directors 409 190
Key management personnel remuneration ((2)) 598 588
Key management bonus ((1)) 325 221
Share option-based and other benefits to key management personnel 409 190
3,215 2,603
((1)) These amounts related to the performance bonus for 2024 (and 2023 in
respect of the comparatives) approved by the Board of Directors following the
proposal of the Remuneration Committee.
In the 2023 financial statements, the amount disclosed related to the bonus
paid in the year in respect of the preceding year as the 2023 bonus had not
yet been decided by the Board of Directors at the time the financial
statements were approved. As the bonus for 2024 has been approved as
explained above, this amount has been disclosed for 2024. The bonus
disclosed for 2023 remains stated at the amount actually paid in that year in
respect of 2022. The bonus in respect of 2023 was €327k for the Executive
Director and €247k for other key management.
((2)) Includes wages and salaries of key management personnel of €568k
(2023: €568k) and other benefits of €30k (2023: €20k).
At 31 December 2024 amounts due to Directors, as from the Company, are €nil
(€nil at 31 December 2023) and €nil (€nil at 31 December 2023) to key
management.
Share-based benefits
In 2024, the Company granted a total of 800,000 share options to Persons
Discharging Managerial Responsibilities (PDMRs) with an exercise price of
413.5 pence per share and an expiry date of 10 June 2029 under the Long Term
Incentive Plan 2020 (LTIP20), which was approved by shareholders at the Annual
General Meeting on 25 June 2020.
In 2023, the Company granted a total of 800,000 share options to Persons
Discharging Managerial Responsibilities (PDMRs) with an exercise price of
327.0 pence per share and an expiry date of 21 May 2028 under the Long Term
Incentive Plan 2020 (LTIP20), which was approved by shareholders at the Annual
General Meeting on 25 June 2020.
Both grants vest in three equal tranches-one-third on grant, with the
remaining balance vesting equally on the first and second anniversaries of the
grant date.
During 2024 the Directors and key management personnel have not been granted
any bonus shares (2023: nil).
Conflict of interest
In order to avoid situations of conflict of interests of the parent company,
during the year Directors who have held positions as company director have
complied with the obligations provided for in article 228 of the Revised Text
of the Spanish Capital Enterprises Act. Furthermore, Directors or related to
them have abstained from incurring in the cases of conflict of interest
provided for in article 229 the Spanish Capital Enterprises Act, except in
cases where the corresponding authorization has been obtained.
31.3 Transactions with shareholders and related parties
(Euro 000's) 2024 2023
Trafigura Pte Ltd - Revenue from contracts ((a)) 73,433 78,723
Gains/(Losses) relating provisional pricing within sales (3,757) 1,308
69,676 80,031
Impala Terminals Huelva S.L.U. - Port Handling and Warehousing services ((b)) (2,201) (2,431)
Related parties - total amounts from contracts 67,475 77,600
(a) Offtake agreement and spot sales to Trafigura
Offtake agreement
In May 2015, the Company agreed terms with key stakeholders in a
capitalisation exercise to finance the re-start of Proyecto Riotinto (the
"2015 Capitalisation").
As part of the 2015 Capitalisation, the Company entered into offtake
agreements with some of its large shareholders, one of which was Trafigura Pte
Ltd ("Trafigura"), under which the total forecast concentrate production from
Proyecto Riotinto was committed ("2015 Offtake Agreements").
During 2024, the Company completed 10 sales transactions under the terms of
the Offtake Agreements valued at €71.6 million (2023: 6 sales valued at
€36.9 million).
Spot Sales Agreements
Due to various expansions implemented at Proyecto Riotinto in recent years,
volumes of concentrate have been periodically available for sale outside of
the Company's various offtake agreements.
In 2024, the Company did not complete any spot sales with Trafigura; however,
€1.0 million in sales was recognised through amendments to its existing
offtake agreement following QP closures during the year. (2023: 2 spot sales
valued at €43.1 million).
Sales transactions with related parties are at arm's length basis in a similar
manner to transactions with third parties.
(b) Port Handling and Warehousing services
In September 2015, Atalaya entered into a services agreement with Impala
Terminals Huelva S.L.U. ("Impala Terminals") for the handling, storage and
shipping of copper concentrates produced from Proyecto Riotinto. The agreement
covered total export concentrate volumes produced from Proyecto Riotinto for
three years for volumes not committed to Trafigura under its offtake agreement
and for the life of mine for the volumes committed to Trafigura under its
offtake agreement.
In September 2018, the Company entered into an amendment to the 2015 Port
Handling Agreement, which included improved financial terms and a five year
extension.
As at year end 31 December 2024 and 2023, Impala Terminals was part of the
Trafigura Group, under joint control.
During 2023, management carried out a reassessment of its relationship with
Impala Terminals in accordance with IAS 24 requirements and concluded that
Impala Terminals is a related party of the Group. These transactions with
related parties are at arm's length basis in a similar manner to transactions
with third parties.
In December 2023, the Company entered into an extension of the service
agreement with Impala Terminals for the handling, storage and shipping of
copper concentrates produced from Proyecto Riotinto on similar terms than the
2015 agreement and the extension in 2018. This extension has a term of
approximately five years and covers the concentrate volumes produced for
export from Proyecto Riotinto that are not already committed to the Trafigura
Group under its offtake agreement.
31.4 Year-end balances with shareholders and their joint ventures
(Euro 000's) 31 Dec 2024 31 Dec 2023
Receivable from shareholder (Note 20)
Trafigura Pte. Ltd 1,042 5,054
- Debtor balance- subject to provisional pricing
1,042 5,054
Payable from joint venture of shareholder (Note 26)
Impala Terminals Huelva S.L.U. - Payable balance (109) (179)
(109) (179)
The above debtor balance arising from the agreements between Trafigura and
Impala (Note 31.3), bear no interest and is repayable on demand.
32. Auditor's remuneration
The fees for the years to 31 December 2024 and 31 December 2023, for audit and
non-audit services provided by the auditor of the Group's consolidated
financial statements and of certain individual financial statements of the
consolidated companies, PricewaterhouseCoopers Auditores, S.L., and by
companies belonging to PwC's network, were as follows:
(Euro 000's) 2024 2023*
Fees payable for the audit of the Group and individual accounts 401 452
Other non-audit services** 70 -
471 452
* For the year 2023, the Group's auditor was Ernst & Young Cyprus Limited,
along with companies within the EY network.
** Included Non-Financial Information Statement and Transfer Pricing Report in
2024. These reports were contracted and performed before PwC's appointment.
For the year 2024, the audit services related to the audit of the British
subsidiaries were performed by Rayner Essex LLP, amounting to GBP 35 thousand.
33. 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.
34. 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.
35. Significant events
Ongoing geopolitical events are impacting the global economy, but the full
implications cannot yet be predicted. Key impacts include higher and more
volatile input costs and disruptions to freight and logistics. The financial
consequences of these events cannot be estimated with any reasonable degree of
certainty at this stage.
· On 9 February 2024, the Company issued 20,000 ordinary shares of
7.5p in the Company pursuant to an exercise of share options by a former
employee.
· On 25 April 2024, BlackRock, Inc., shareholder of the Company,
decreased its voting rights from 4.07% to 4.05%, and on 26 April decreased its
voting rights to 3.97%.
· Following the publication the prospectus in relation to the
admission of its ordinary shares ("Ordinary Shares") to the premium listing
segment of the Official List of the Financial Conduct Authority ("FCA"), which
took place on 24 April 2024, Atalaya was admitted to the premium listing
segment and to trading on London Stock Exchange plc's main market for listed
securities (together, "Admission") on 29 April and cancelled from trading on
AIM.
· On 7 May 2024, the Company issued 66,500 ordinary shares of 7.5p
in the Company pursuant to an exercise of share options by non-PDMR employees.
· On 22 May 2024, the Company issued 600,000 ordinary shares of
7.5p in the Company pursuant to an exercise of share options by a PDMR
employee.
· On 12 June 2024, 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 25 June 2020, it has granted 1,305,000 share
options to PDMR and other management.
· On 27 June 2024, the Company issued 193,334 ordinary shares of
7.5p in the Company pursuant to an exercise of share options by an employee.
· On 17 July 2024, Cobas Asset Management SGIIC, S.A., shareholder
of the Company, increased its voting rights from 10.04% to 15.04%.
· Following the approval of Resolution 10 by the Company's
shareholders at its 2024 Annual General Meeting, which took place on 27 June
2024, the 2023 Final Dividend of US$0.04 per ordinary share was paid on 9
August 2024.
· On 13 August 2024, the Company's Board of Directors elected to
declare a 2024 Interim Dividend of US$0.04 per ordinary share, which is
equivalent to approximately 3.1 pence per share. Dividend was paid on 19
September 2024.
· On 15 October 2024, the Company announced that Neil Gregson,
Chairman of the Company, purchased 5,000 ordinary shares in Atalaya at an
average price of 343.0 pence per share.
· On 29 October 2024, the Company announced that Carole Whittall
was succeeding Hussein Barma as Chair of the Audit Committee of its Board of
Directors with immediate effect.
· On 19 November 2024, the Company entered into two binding
agreements with Mineral Prospektering i Sverige AB ("MPS") to earn a 75%
interest in the Skellefte Belt Project and Rockliden Project in Sweden, both
located in highly prospective VMS districts. Atalaya committed US$3 million
over 24 months, with the option to invest up to a further US$9 million in each
project. Initial exploration identified key targets, with drilling planned for
the winter season.
· On 2 December 2024, Atalaya was notified that Jesús Fernández,
a PDMR, purchased 13,912 ordinary shares at an average price of 350.0 pence
per share. Following this purchase, Mr Fernández held a total of 106,412
ordinary shares, representing 0.076% of the Company's issued share capital.
· On 22 December 2024, the Company granted 150,000 share options
under its Long Term Incentive Plan 2020 (LTIP2020), approved by shareholders
on 25 June 2020.The options expire on 21 December 2029, have an exercise price
of 333.50 pence per share, and vest in three equal tranches-one-third on
grant, with the remainder vesting equally on the first and second
anniversaries of the grant date.
35. Events after the reporting period
· On 10 January 2025, Atalaya Mining Copper, S.A. (formerly Atalaya
Mining Plc) completed its re-domiciliation to Spain. Trading under the new
name became effective at 8:00 AM, and the nominal value of shares changed from
7.5p to €0.09.
· On 15 January 2025, the Board announced the appointment of María
del Coriseo ("Coriseo") González-Izquierdo Revilla as an independent
non-executive director, effective 14 January 2025.
· On 31 January 2025, Atalaya received notification that Neil
Gregson, Non-Executive Chair, purchased 2,800 ordinary shares of €0.09
nominal value at an average price of 347.28 pence per share.
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