REG - Atalaya MiningCopper - 2025 Annual Results
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RNS Number : 2194X Atalaya Mining Copper, S.A. 19 March 2026
19 March 2026
Atalaya Mining Copper, S.A.
("Atalaya" or the "Company")
2025 Annual Results
Strong financial results and robust balance sheet to support growth pipeline
Atalaya Mining (LSE: ATYM) is pleased to announce its audited consolidated
financial results for the year ended 31 December 2025 ("FY2025" or the
"Period").
Highlights
· Copper production of 11.6 kt in Q4 2025 and 51.1 kt in FY2025,
which achieved the higher end of the FY2025 guidance range
· Cash Costs of US$2.62/lb in Q4 2025 and US$2.40/lb in FY2025,
with reductions due to higher production, higher silver credits and lower
offsite costs
· AISC of US$3.07/lb in Q4 2025 and US$2.90/lb in FY2025
· EBITDA of €41.4 million in Q4 2025 and €179.8 million in
FY2025, resulting in strong free cash flow generation of €107.4 million in
FY2025
· Final dividend of €0.065/sh proposed, for a full year total of
€0.109/sh
· Robust net cash position to support the development of Atalaya's
copper growth projects in Spain
Q4 and FY2025 Financial Results Summary
Period ended 31 December Unit Q4 2025 Q4 2024 FY2025 FY2024
Revenues from operations €k 121,412 77,852 482,915 326,797
Operating costs €k (79,965) (65,172) (303,159) (260,441)
EBITDA €k 41,447 12,680 179,756 66,356
Profit for the period ((1)) €k 14,451 14,922 85,363 32,560
Basic earnings per share ((1)) € cents/share 10.3 8.7 60.8 22.6
Dividend declared per share ((2)) €/share n/a n/a 0.109 0.0637
Cash flows from operating activities €k 72,477 11,101 192,483 53,403
Cash flows used in investing activities €k (25,305) (16,578) (85,070) (66,073)
Cash flows from financing activities €k 11,418 (19,168) 13,444 (57,261)
Net cash position ((3)) €k 121,960 35,091 121,960 35,091
Working capital surplus €k 93,822 44,728 93,822 44,728
Average realised copper price US$/lb 5.10 4.10 4.49 4.19
(excluding QPs)
Copper concentrate produced tonnes 66,402 69,550 298,108 252,165
Copper production tonnes 11,550 12,078 51,139 46,227
Cash Costs US$/lb payable 2.62 2.79 2.40 2.92
All-In Sustaining Costs ("AISC") US$/lb payable 3.07 3.28 2.90 3.26
(1) Includes impact of Q4 2025 impairment related to the E-LIX project of
€24.1 million.
(2) Consists of 2025 Interim Dividend (paid 10 October 2025) and proposed
2025 Final Dividend, which is subject to approval by shareholders at the
Company's 2026 Annual General Meeting.
(3) Includes restricted cash and bank borrowings at 31 December 2025 and
31 December 2024.
Alberto Lavandeira, CEO, commented:
"2025 was a year of strong operational and financial delivery for Atalaya. We
achieved copper production at the upper end of our guidance range, generated
robust free cash flow and further strengthened our balance sheet. The Board
has again proposed a final dividend. These results reflect disciplined cost
control, improved operating performance at Riotinto and continued focus on
efficiency across the business.
We continued to invest in the long‑term development of our assets, with
sustained investment at Riotinto, further progress at Masa Valverde and
Proyecto Touro, and encouraging exploration results, reinforcing the growth
potential and optionality across our asset portfolio. At the same time, we
maintained our commitment to sustainability, including targeted actions to
address safety performance and a focus on continuous improvement in relation
to energy and water efficiency.
The equity fundraise completed in January 2026 has further strengthened
Atalaya's financial position and provides significant flexibility to advance
our copper growth projects in Spain. Looking ahead, while the start of 2026
has been affected by challenging weather conditions at Riotinto, we remain
confident in our production guidance for the year and in the medium‑term
growth potential of our portfolio. With a strong balance sheet, high‑quality
assets and favourable long‑term copper fundamentals, Atalaya is well
positioned to deliver on our 2026 goals."
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 2025 Annual Results | SparkLive | LSEG
(https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fsparklive.lseg.com%2FAtalayaMining%2Fevents%2F378f0850-924d-4c5f-aab0-23aa18ab2397%2Fatalaya-mining-2025-annual-results&data=05%7C02%7Cmichael.rechsteiner%40atalayamining.com%7Cfc7d3f44b42d4acfd03608de6595a113%7Cc8a387f772f64a3880d3a42d91fe8257%7C0%7C0%7C639059890496717524%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=vi3%2F7zQ1lnhN0%2BSUBSZ1%2FTdHD%2F%2BPG7p3%2FXmHGO9ulws%3D&reserved=0)
Investor Meet Company Presentation
In addition, the Company will provide 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/atalaya-mining-copper-sa/register-investor
(https://www.investormeetcompany.com/atalaya-mining-copper-sa/register-investor)
Management will also answer questions that have been submitted via the
Investor Meet Company dashboard.
Note to Readers
The financial information for the years ended 31 December 2025 and 2024
contained in this document does not constitute statutory accounts. The
financial information for the years ended 31 December 2025 and 2024 has been
extracted from the consolidated financial statements of Atalaya Mining
Copper, S.A. for the year ended 31 December 2025 which have been approved by
the directors on 18 March 2026. The auditor's report on those financial
statements was unqualified.
FY2025 Select Sustainability Highlights
Unit FY2025 FY2024
Work-related injuries (Riotinto employees & contractors) LTIFR 4.80 3.33
Operational water used m(3)/t processed 2.00 1.95
Electricity intensity kWh/t processed 22.60 22.66
Investment in local communities €m 0.8 1.0
Procurement from Spanish suppliers % 89 93
Atalaya is committed to maintaining high standards of sustainability across
its various operating activities and focuses on making continuous
improvements. While no life-threatening incidents occurred in FY2025,
management implemented several targeted safety improvement initiatives in
response to the increase in LTIFR.
For further information, please refer to Atalaya's 2025 Sustainability Report,
which will be published in due course.
Q4 and FY2025 Operating Results Summary
Unit Q4 2025 Q4 2024 FY2025 FY2024
Ore mined tonnes 3,870,606 3,507,203 14,820,168 15,176,009
Waste mined ((1)) tonnes 9,237,191 10,200,079 43,000,248 32,824,156
Ore processed tonnes 4,140,621 3,757,040 16,630,699 15,913,064
Copper grade % 0.33 0.41 0.39 0.35
Copper concentrate grade % 17.39 17.37 17.15 18.33
Copper recovery % 83.87 78.15 78.84 83.06
Copper concentrate produced tonnes 66,402 69,550 298,108 252,165
Copper production tonnes 11,550 12,078 51,139 46,227
Payable copper production tonnes 10,886 11,382 48,158 43,706
Cash Costs $/lb payable 2.62 2.79 2.40 2.92
All-in Sustaining Costs $/lb payable 3.07 3.28 2.90 3.26
(1) Represents the Cerro Colorado pit only.
Mining
Ore mined was 3.9 million tonnes in Q4 2025 (Q4 2024: 3.5 million tonnes) and
14.8 million tonnes in FY2025 (FY2024: 15.2 million tonnes).
Waste mined was 9.2 million tonnes in Q4 2025 (Q4 2024: 10.2 million tonnes)
and 43.0 million tonnes in FY2025 (FY2024: 32.8 million tonnes). In addition,
waste stripping activities continued at the San Dionisio area.
Processing
The plant processed ore of 4.1 million tonnes in Q4 2025 (Q4 2024: 3.8 million
tonnes) and 16.6 million tonnes in FY2025 (FY2024: 15.9 million tonnes), which
represents a new annual throughput record.
Copper grade was 0.33% in Q4 2025 (Q4 2024: 0.41%) and 0.39% in FY2025
(FY2024: 0.35%).
Copper recovery was 83.87% in Q4 2025 (Q4 2024: 78.15%) and 78.84% in FY2025
(FY2024: 83.06%).
Production
Copper production was 11,550 tonnes in Q4 2025 (Q4 2024: 12,078 tonnes) and
51,139 tonnes in FY2025 (FY2024: 46,227 tonnes), which achieved the higher end
of the Company's FY2025 guidance range of 49,000 to 52,000 tonnes. In
addition, silver contained in copper concentrate was 1.2 million ounces in
FY2025 (FY2024: 1.1 million ounces).
On-site copper concentrate inventories were 4,050 tonnes at 31 December
2025 (30 September 2025: 8,092 tonnes).
Copper contained in concentrates sold was 11,823 tonnes in Q4 2025 (Q4 2024:
10,271 tonnes) and 53,487 tonnes in FY2025 (FY2024: 43,609 tonnes). Copper
sales exceeded production during FY2025 due to the drawdown of on-site
concentrate inventories.
Cash Costs and AISC Breakdown
US$/lb Cu payable Q4 2025 Q4 2024 FY2025 FY2024
Mining 1.31 1.05 1.01 1.07
Processing 0.90 0.88 0.85 0.90
Other site operating costs 0.80 0.66 0.67 0.64
Total site operating costs 3.01 2.58 2.53 2.61
By-product credits (0.49) (0.34) (0.38) (0.27)
Freight, treatment charges and other offsite costs 0.10 0.55 0.25 0.58
Net offsite costs (0.39) 0.21 (0.14) 0.30
Cash Costs 2.62 2.79 2.40 2.92
Cash Costs 2.62 2.79 2.40 2.92
Corporate costs 0.20 0.11 0.12 0.10
Sustaining capital (excluding tailings expansion) 0.07 0.03 0.04 0.05
Capitalised stripping costs ((1)) 0.05 0.27 0.23 0.11
Other costs 0.13 0.09 0.11 0.09
AISC 3.07 3.28 2.90 3.26
(1) Represents the Cerro Colorado pit only.
Note: Some figures may not add up due to rounding.
Cash Costs were US$2.62/lb payable copper in Q4 2025 (Q4 2024: US$2.79/lb) and
US$2.40/lb payable copper in FY2025 (FY2024: US$2.92/lb), with the annual
decrease due to higher copper production, higher silver credits and lower
treatment charges, partly offset by a stronger EUR/USD exchange rate which is
a headwind for USD-denominated metrics.
AISC were US$3.07/lb payable copper in Q4 2025 (Q4 2024: US$3.28/lb) and
US$2.90/lb payable copper in FY2025 (FY2024: US$3.26/lb), with the annual
decrease due to the same factors that impacted Cash Costs, but partly offset
by higher capitalised stripping at Cerro Colorado. AISC excludes investments
in the tailings dam (consistent with prior reporting) and waste stripping at
the San Dionisio area.
Q4 and FY2025 Financial Results Highlights
Income Statement
Revenues were €121.4 million in Q4 2025 (Q4 2024: €77.9 million) and
€482.9 million in FY2025 (FY2024: €326.8 million), as a result of higher
concentrate sales, higher realised copper prices and lower offsite costs.
Operating costs were €80.0 million in Q4 2025 (Q4 2024: €65.2 million) and
€303.2 million in FY2025 (FY2024: €260.4 million), mainly due to higher
mining and processing rates.
EBITDA was €41.4 million in Q4 2025 (Q4 2024: €12.7 million) and €179.8
million in FY2025 (FY2024: €66.4 million).
Profit after tax was €14.5 million in Q4 2025 (Q4 2024: €14.9 million) or
10.3 cents basic earnings per share (Q4 2024: 8.7 cents) and €85.4 million
in FY2025 (FY2024: €32.6 million) or 60.8 cents basic earnings per share
(FY2024: 22.6 cents). Profits were impacted by an impairment recognised in
relation to the E-LIX project of €24.1 million in FY2025.
Cash Flow Statement
Cash flows from operating activities before changes in working capital were
€43.3 million in Q4 2025 (Q4 2024: €11.7 million) and €72.5 million
after working capital changes (Q4 2024: €11.1 million). For FY2025, cash
flows from operating activities before changes in working capital were
€188.0 million (FY2024: €66.4 million) and €192.5 million after working
capital changes (FY2024: €53.4 million).
Cash flows used in investing activities were €25.3 million in Q4 2025 (Q4
2024: €16.6 million) and €85.1 million in FY2025 (FY2024: €66.1
million). Key investments in Q4 2025 included €1.8 million in sustaining
capex, €1.1 million in capitalised stripping at Cerro Colorado, €12.2
million related to the San Dionisio area, €4.3 million to expand the
tailings dam and €1.9 million for the solar plant.
Cash flows from financing activities were positive €11.4 million in Q4 2025
(Q4 2024: negative €19.2 million) and positive €13.4 million in FY2025
(FY2024: negative €57.3 million), as a result of temporary movements in the
Company's working capital facilities.
Balance Sheet
The Company's balance sheet remains strong with consolidated cash and cash
equivalents of €166.3 million as of 31 December 2025 (31 December
2024: €52.9 million).
Current and non-current borrowings were €44.3 million, resulting in a net
cash position of €122.0 million as of 31 December 2025 (31 December
2024: €35.1 million).
Inventories of concentrate valued at cost were €3.8 million at 31 December
2025 (31 December 2024: €19.7 million). The total working capital surplus
was €93.8 million at 31 December 2025 (31 December 2024: €44.7 million).
Subsequent to the end of the Period, the Company completed an equity offering
that further strengthened its net cash position to approximately €264
million, as described below.
2025 Final Dividend
Atalaya has a dividend policy that seeks to provide capital returns to its
shareholders while maintaining balance sheet strength and the ability to make
investments in the Company's growth projects and potential external
opportunities. Dividends are payable in two half-yearly instalments.
The Board of Directors has proposed a final dividend for FY2025 of
€0.065 per ordinary share ("2025 Final Dividend"), which is equivalent to
approximately US$0.075 or £0.056 per share. Payment of the 2025 Final
Dividend is subject to shareholder approval at the Company's 2026 Annual
General Meeting ("AGM"). Should it be approved, the 2025 Final Dividend,
together with the 2025 Interim Dividend paid in October 2025, would result in
a FY2025 Dividend of €0.109 per ordinary share, which compares to the
FY2024 Dividend of €0.0637 (or US$0.07 or £0.0538). Further details on the
timing of the potential payment of the 2025 Final Dividend will be provided
ahead of the AGM.
Outlook for 2026
Production
In late January and early February 2026, rainfall at Riotinto was unusually
high and resulted in difficult mining conditions as well as reduced access to
certain areas in the Cerro Colorado pit. As a result, the copper grade
processed in Q1 2026 to date has been below planned levels.
Copper production guidance for FY2026 continues to be 50,000 to 54,000 tonnes,
with H2 2026 production to be approximately 10% higher than H1 2026
production. In addition, silver contained in copper concentrate is expected to
be 0.9 to 1.1 million ounces in FY2026.
Operating Costs
During FY2025, the prices of key consumables and other costs were stable.
However, ongoing conflicts including the recent events in Iran could disrupt
supply chains and increase energy prices, which in turn can impact the costs
of certain consumables. With respect to electricity prices, Spain benefits
from a diversified energy mix including significant contributions from solar,
wind, hydro and nuclear, while Atalaya's long-term PPA and solar plant are
expected to reduce the impact of price volatility.
Cash Costs and AISC guidance for FY2026 are as follows:
· Cash Costs range of US$2.60 - 2.90/lb copper payable
· AISC range of US$3.10 - 3.40/lb copper payable
‒ Includes capitalised stripping costs of ~US$0.20/lb 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 is focused on advancing its copper growth projects in Spain in order
to capitalise on strong copper market fundamentals. Development of Atalaya's
project pipeline offers the potential to increase production, diversify the
Company's sources of mined material, extend mine life and reduce unit costs.
The Company plans to make the following non-sustaining capital investments in
FY2026:
Item € million
San Dionisio waste stripping and road relocation €50 - 60
Proyecto Masa Valverde access ramp ((1)) €10 - 18
Expansion of existing Riotinto tailings facility €10 - 14
Other investments €5 - 10
Total non-sustaining capital investments €75 - 102
(1) Remains subject to final Board approval
Additional investments, including related to Proyecto Touro and the Riotinto
polymetallic circuit, could be approved once key permitting steps and
engineering works are completed, as described below.
Exploration and Other Project Expenses
Atalaya continues to invest in exploration across its key projects and land
packages in Spain, and through its earn-in agreements in Sweden.
In FY2026, exploration and other project expenses is expected to be €5 - 7
million. The primary focus will be to upgrade and expand resources at San
Antonio, Proyecto Masa Valverde and Proyecto Touro, and test targets at
Proyecto Ossa Morena, Proyecto Riotinto East and in Sweden.
Corporate Activities Update
Board of Directors
On 30 December 2025, the Company announced the appointment of Dr. Mike
Armitage as an independent non-executive director with effect from 19
January 2026, replacing Steve Scott who stepped down from the Board on 31
December 2025. Several changes were subsequently made in relation to the
composition of the Board's various committees.
Fundraise (Subsequent Event)
In January 2026, the Company completed an equity offering that raised gross
proceeds of £130 million (or approximately €150 million) from new
institutional investors, existing shareholders and eligible retail investors.
The fundraise was significantly oversubscribed.
Proceeds from the fundraise will allow Atalaya to accelerate the development
of its copper growth projects in Spain in order to capitalise on strong copper
market fundamentals. Net proceeds from the fundraise, combined with the
Company's net cash position at 31 December 2025, would result in a pro-forma
net cash position of approximately €264 million.
Asset Portfolio Update
Proyecto Riotinto
Waste stripping activities at San Dionisio accelerated in the latter half of
2025, with total material mined of 5.8 million tonnes in Q4 2025 and 12.4
million tonnes in FY2025. In FY2026, 19 to 23 million tonnes of waste
stripping is expected. San Dionisio represents a key component of Atalaya's
strategy to increase copper production by sourcing higher-grade material from
deposits throughout the Riotinto District to be blended with ore from Cerro
Colorado.
At San Antonio, the polymetallic deposit located immediately east of the
Cerro Colorado pit, the infill and step-out drilling programme made further
progress in 2025 and will continue in 2026.
Atalaya continues to advance engineering works associated with processing
plant modifications that would allow for the simultaneous treatment of
polymetallic and copper ores at Riotinto, including optimising the layout of
the new circuits within the existing plant footprint in order to minimise
capital and operating costs.
E-LIX Phase I Plant
In Q4 2025, the E-LIX Phase I plant operated intermittently and produced zinc
precipitates from copper-zinc concentrates, although at a variable and reduced
capacity. All zinc precipitates that were produced were sold.
As E-LIX has demonstrated technological viability, Atalaya believes E-LIX has
the potential to unlock value from complex material in the Iberian Pyrite Belt
and beyond, provided it can demonstrate consistent operational and financial
performance at scale.
However, the operation of the plant at reduced capacity had a negative impact
on profitability, which affected Lain Technologies' financial position.
Consequently, Atalaya has recognised an impairment of €24.1 million in
FY2025 in relation to the E-LIX project, resulting in a remaining carrying
value of €31.8 million, comprising tangible assets and the convertible loan
with Lain Technologies.
Riotinto District - Proyecto Masa Valverde ("PMV")
In 2025, infill and extensional drilling at the Masa Valverde deposit
continued and further infill drilling is planned for 2026. Focus will remain
on the stockwork-style mineralisation, which is expected to be amenable for
processing at the existing Riotinto facilities, and support Atalaya's initial
focus on the Masa Valverde copper zones. Development of the access ramp is
subject to final Board approval.
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.
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. As a result, Cobre San Rafael has applied to the second call for
strategic projects launched by the European Commission, where the main
objective is to ensure a secure and sustainable supply of critical raw
materials for European industry.
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 has
addressed the feedback from the public information period, and most sectoral
reports from the Xunta de Galicia have been finalised, with only two reports
still pending. The Company has also responded to requests for additional
information and is awaiting a small number of corresponding replies.
The Company continues to engage with the many stakeholders in the region and
is restoring the water quality of the rivers around Touro by operating its
water treatment plant. Recruitment initiatives in relation to its potential
future workforce are ongoing.
Engineering, procurement and cost estimation works continue to be a major
focus. In addition, infill and step-out drilling programmes will continue in
2026.
Proyecto Ossa Morena
Drilling is expected to begin at the Guijarro-Chaparral gold-copper project in
the coming weeks.
Proyecto Riotinto East
Drilling will begin at the Cerro Negro and Peñas Blancas permits in the
coming weeks.
Skellefte Belt and Rockliden (Sweden)
In 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.
Following the successful autumn drilling campaign, operations at both projects
resumed in early January with three rigs on-site. Work will continue while
ground conditions remain favourable. To date in 2026, over 5,000 metres of
drilling have been completed, primarily focused on the Skellefte Belt Project.
Ground-based FLEM geophysical surveys targeting promising VTEM anomalies are
progressing well and are proving highly effective at defining drill targets.
Several of these new targets are currently being tested at the Kedträsk nr 1
licence.
With respect to the Skellefte Belt earn-in agreement, Atalaya has confirmed
its election to proceed to Stage 1 Exploration Operations, following the
fulfilment of its Minimum Expenditure commitments.
The person responsible for arranging release of this announcement on behalf of
the Company is César Sánchez (CFO).
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 Clotilde Gros / George Esmond / 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" and Atalaya is a FTSE 250
Index constituent.
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 2025
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 2024 and 31 December 2025 and results
of operations for the three and twelve months ended 31 December 2025 and 2024.
This report has been prepared as of 18 March 2026. 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 2025, which will be released together with the
Company's 2025 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 2025, 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.
The Group also has earn-in agreements related two exploration projects in
Sweden, the Skellefte Belt Project and the Rockliden Project, pursuant to
agreements entered into in 2024 with Mineral Prospektering i Sverige AB.
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 2025 and
2024.
Units expressed in accordance with the international system of units (SI) Unit Q4 2025 Q4 2024 FY2025 FY2024
Ore mined tonnes 3,870,606 3,507,203 14,820,168 15,176,009
Waste mined ((1)) tonnes 9,237,191 10,200,079 43,000,248 32,824,156
Ore processed tonnes 4,140,621 3,757,040 16,630,699 15,913,064
Copper grade % 0.33 0.41 0.39 0.35
Copper concentrate grade % 17.39 17.37 17.15 18.33
Copper recovery % 83.87 78.15 78.84 83.06
Copper concentrate produced tonnes 66,402 69,550 298,108 252,165
Copper production tonnes 11,550 12,078 51,139 46,227
Payable copper production tonnes 10,886 11,382 48,158 43,706
Cash Costs $/lb payable 2.62 2.79 2.40 2.92
All-in Sustaining Cost $/lb payable 3.07 3.28 2.90 3.26
(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 2025 Q4 2024 FY2025 FY2024
Mining 1.31 1.05 1.01 1.07
Processing 0.90 0.88 0.85 0.90
Other site operating costs 0.80 0.66 0.67 0.64
Total site operating costs 3.01 2.58 2.53 2.61
By-product credits (0.49) (0.34) (0.38) (0.27)
Freight, treatment charges and other offsite costs 0.10 0.55 0.25 0.58
Net offsite costs (0.39) 0.21 (0.14) 0.30
Cash Costs 2.62 2.79 2.40 2.92
Cash Costs 2.62 2.79 2.40 2.92
Corporate costs 0.20 0.11 0.12 0.10
Sustaining capital (excluding tailings expansion) 0.07 0.03 0.04 0.05
Capitalised stripping costs ((1)) 0.05 0.27 0.23 0.11
Other costs 0.13 0.09 0.11 0.09
AISC 3.07 3.28 2.90 3.26
(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 3.9 million tonnes in Q4 2025 (Q4 2024: 3.5 million tonnes) and
14.8 million tonnes in FY2025 (FY2024: 15.2 million tonnes).
Waste mined was 9.2 million tonnes in Q4 2025 (Q4 2024: 10.2 million tonnes)
and 43.0 million tonnes in FY2025 (FY2024: 32.8 million tonnes). In addition,
waste stripping activities continued at the San Dionisio area.
Processing
The plant processed ore of 4.1 million tonnes in Q4 2025 (Q4 2024: 3.8 million
tonnes) and 16.6 million tonnes in FY2025 (FY2024: 15.9 million tonnes), which
represents a new annual throughput record.
Copper grade was 0.33% in Q4 2025 (Q4 2024: 0.41%) and 0.39% in FY2025
(FY2024: 0.35%).
Copper recovery was 83.87% in Q4 2025 (Q4 2024: 78.15%) and 78.84% in FY2025
(FY2024: 83.06%).
Production
Copper production was 11,550 tonnes in Q4 2025 (Q4 2024: 12,078 tonnes) and
51,139 tonnes in FY2025 (FY2024: 46,227 tonnes), which achieved the higher end
of the Company's FY2025 guidance range of 49,000 to 52,000 tonnes. In
addition, silver contained in copper concentrate was 1.2 million ounces in
FY2025 (FY2024: 1.1 million ounces).
On-site copper concentrate inventories were 4,050 tonnes at 31 December 2025
(30 September 2025: 8,092 tonnes).
Copper contained in concentrates sold was 11,823 tonnes in Q4 2025 (Q4 2024:
10,271 tonnes) and 53,487 tonnes in FY2025 (FY2024: 43,609 tonnes). Copper
sales exceeded production during FY2025 primarily due to the drawdown of
on-site concentrate inventories during the year.
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 as no longer achievable, the Company
will provide a further update.
Proyecto Riotinto operational guidance for 2026 is as follows:
Unit Guidance 2026
Ore mined million tonnes 15.5 - 16.0
Waste mined ((1)) million tonnes 38 - 44
Ore processed million tonnes 15.5 - 16.0
Copper grade % 0.38 - 0.41
Copper recovery % 79 - 83
Copper production tonnes 50,000 - 54,000
Cash Costs $/lb payable $2.60 - 2.90
All-in Sustaining Cost $/lb payable $3.10 - 3.40
(2) Represents the Cerro Colorado pit only. Waste guidance is 57 - 67
million tonnes when including the San Dionisio pit.
Production
In late January and early February 2026, rainfall at Riotinto was unusually
high and resulted in difficult mining conditions as well as reduced access to
certain areas in the Cerro Colorado pit. As a result, the copper grade
processed in Q1 2026 to date has been below planned levels.
Copper production guidance for FY2026 continues to be 50,000 to 54,000 tonnes,
with H2 2026 production to be approximately 10% higher than H1 2026
production. In addition, silver contained in copper concentrate is expected to
be 0.9 to 1.1 million ounces in FY2026.
Operating Costs
During FY2025, the prices of key consumables and other costs were stable.
However, ongoing conflicts including the recent events in Iran could disrupt
supply chains and increase energy prices, which in turn can impact the costs
of certain consumables. With respect to electricity prices, Spain benefits
from a diversified energy mix including significant contributions from solar,
wind, hydro and nuclear, while Atalaya's long-term PPA and solar plant are
expected to reduce the impact of price volatility.
Cash Costs and AISC guidance for FY2026 are as follows:
· Cash Costs range of $2.60 - 2.90/lb copper payable
· AISC range of $3.10 - 3.40/lb copper payable
o Includes capitalised stripping costs of ~$0.20/lb 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 is focused on advancing its copper growth projects in Spain in order
to capitalise on strong copper market fundamentals. Development of Atalaya's
project pipeline offers the potential to increase production, diversify the
Company's sources of mined material, extend mine life and reduce unit costs.
The Company plans to make the following non-sustaining capital investments in
FY2026:
Item € million
San Dionisio waste stripping and road relocation €50 - 60
Proyecto Masa Valverde access ramp ((1)) €10 - 18
Expansion of existing Riotinto tailings facility €10 - 14
Other investments €5 - 10
Total non-sustaining capital investments €75 - 102
(1) Remains subject to final Board approval
Additional investments, including related to Proyecto Touro and the Riotinto
polymetallic circuit, could be approved once key permitting steps and
engineering works are completed, as described below.
Exploration and Other Project Expenses
Atalaya continues to invest in exploration across its key projects and land
packages in Spain, as well as its earn-in agreements in Sweden.
In FY2026, exploration and other project expenses is expected to be €5 - 7
million. The primary focus will be to upgrade and expand resources at San
Antonio, Proyecto Masa Valverde and Proyecto Touro, and test targets at
Proyecto Ossa Morena, Proyecto Riotinto East and in Sweden.
4. Financial Review
Income Statement
The following table presents a summarised consolidated income statement for
the three and twelve month periods ended 31 December 2025 and 31 December
2024.
(Euro 000's) Three month ended 31 Dec 2025 Three month ended 31 Dec 2024 Twelve month ended 31 Dec 2025 Twelve month ended 31 Dec 2024
Revenues from operations 121,412 77,852 482,915 326,797
Cost of sales (72,524) (59,598) (287,998) (242,163)
Corporate expenses (3,778) (1,833) (10,472) (7,927)
Exploration expenses (3,454) (4,637) (8,426) (7,950)
Care and maintenance expenditure (245) 1,269 (291) (2,784)
Other income 3,036 (373) 4,028 383
EBITDA 41,447 12,680 179,756 66,356
Depreciation/amortisation (7,740) (10,625) (47,520) (43,565)
Net (Impairment)/reversal on Assets ((1)) (21,418) 5,744 (21,418) 5,744
Net foreign exchange gain/(loss) (384) 2,532 (6,263) 3,090
Net finance income/(cost) 669 553 (2,292) (102)
Tax 1,877 4,038 (16,900) 1,037
Profit for the year 14,451 14,922 85,363 32,560
(1) Includes impairment recognised in 2025 relating to the E-LIX project and
the reversal of a prior impairment in 2024 relating to Proyecto Touro. Refer
to Notes 13 and 14, respectively
Three months financial review
Revenues for Q4 2025 amounted to €121.4 million, up from €77.9 million in
Q4 2024. The increase was primarily due to higher concentrate sales volumes,
higher realised copper price and lower TC/RC prices. Realised copper prices,
excluding QPs, were US$5.10/lb in Q4 2025, compared with US$4.10/lb in Q4
2024. Including QPs, the realised price was approximately US$4.85/lb.
Copper contained in concentrates sold was 11,823 tonnes in Q4 2025 and 10,271
tonnes in Q4 2024.
Cost of sales for Q4 2025 totalled €72.5 million, compared to €59.6
million in Q4 2024. The increase was mainly due to a lower volume of
concentrate stock at the end of the period and utilities costs. Cash costs
stood at US$2.62/lb payable copper, down from US$2.79/lb in the prior-year
quarter, benefiting from silver credits and lower offsite costs despite lower
copper payable. All-in Sustaining Costs (AISC) for Q4 2025, excluding
investments in the tailings dam, were US$3.07/lb payable copper, compared with
US$3.28/lb in Q4 2024. The decrease was mainly due to lower capitalised
stripping costs.
Sustaining capex for Q4 2025 amounted to €1.8 million, compared with €0.4
million in Q4 2024, primarily related to plant processing system improvements.
Investment in the tailings dam project during Q4 2025 was €4.3 million
(€4.0 million in Q4 2024). Investments in the San Dionisio area was €12.2
million. Capitalised stripping costs for Cerro Colorado for Q4 2025 were
€1.1 million, lower than previous year (€6.2 million). The 50 MW solar
plant construction capex totalled €1.9 million in Q4 2025.
Corporate expenses for Q4 2025 totalled €3.8 million, compared with €1.8
million in Q4 2024. 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 2025 were €3.4 million, compared to €4.6 million
in Q4 2024.
EBITDA for Q4 2025 amounted to €41.4 million, up from €12.7 million in Q4
2024. Depreciation and amortisation is below €2.9 million from €7.7
million due to the increase in Ore Reserves that were incorporated during the
period. Net foreign exchange loss in Q4 2025 were €0.4 million, compared
with a gain of €2.5 million in Q4 2024. Net financing income in Q4 2025 were
a positive €0.7 million, compared with a positive of €0.6 million in the
prior-year quarter.
Twelve months financial review
Revenues for FY 2025 totalled €482.9 million, compared with €326.8 million
in FY 2024. The increase was mainly due to higher concentrate sales volumes
with higher realised price, partially offset by lower concentrate grades.
Copper concentrate production for FY 2025 was 298,108 tonnes, up from 252,165
tonnes in FY 2024, while sales totalled 316,282 tonnes, up from 237,072 tonnes
in the previous year. Inventories of concentrates at year-end stood at 4,050
tonnes, compared with 21,815 tonnes at 31 December 2024. Copper contained in
concentrates sold was 53,487 tonnes in FY 2025 and 43,609 tonnes in FY2024.
Realised copper prices, excluding QPs, averaged US$4.49/lb in FY 2025,
compared with US$4.19/lb in FY 2024. The Company did not enter into any
hedging agreements during 2025.
Cost of sales for FY 2025 amounted to €288.0 million, up from €242.2
million in 2024. The increase in costs was mainly due to a negative impact
from a lower year-end copper concentrate inventories and higher electricity
costs. Cash costs for FY 2025 were US$2.40/lb payable copper, down from
US$2.92/lb in 2024, mainly due to higher copper production, higher silver
by-product credits and a reduction in offsite costs levels. AISC, excluding
investment in the tailings dam, stood at US$2.90/lb payable copper in FY 2025,
compared to US$3.26/lb in FY 2024, with the decrease driven by lower on cash
costs and partially offset with higher stripping costs capitalised.
Sustaining capex for the twelve-month period ended 31 December 2025 totalled
€4.1 million, compared with €4.0 million in FY 2024, mainly for plant
processing system upgrades. Investment in the tailings dam expansion was
€15.8 million, compared with €14.8 million in 2024. The 50 MW solar plant
construction capex amounted to €2.6 million in FY 2025, San Dionisio area
was €25.3 million, capitalised stripping costs for Cerro Colorado was
€22.1 million, while investments in the E-LIX Phase I plant totalled €0.2
million (€2.1 million in 2024).
Corporate expenses for FY 2025 amounted to €10.5 million, up from €7.9
million in FY 2024 as the last year was reflecting lower overhead costs.
Exploration expenses for the year totalled €8.4 million, compared with
€7.9 million in 2024, main exploration work carried out at Sweden Projects
and Proyecto Masa Valverde and Riotinto.
EBITDA for FY 2025 was €179.8 million, up from €66.4 million in FY 2024.
Depreciation and amortisation for the year amounted to €47.5 million,
compared with €43.6 million in 2024. Net impairment on assets for FY 2025
amounted to €21.4 million, compared with a net impairment reversal of €5.7
million in FY 2024 related to Proyecto Touro. The net foreign exchange loss
for FY 2025 was €6.3 million, compared with a gain of €3.1 million in FY
2024.
Net finance costs for FY 2025 amounted to negative €2.3 million, compared
with €0.1 million in FY 2024.
Net impairment on assets for FY 2025 amounted to €21.4 million, compared
with a net impairment reversal of €5.7 million in FY 2024 related to
Proyecto Touro. The 2025 impairment primarily relates to the E-LIX project. In
addition, finance costs for the year include an impairment loss of €2.7
million recognised on loans granted in connection with the E-LIX project,
reflecting management's reassessment of the recoverability of these balances.
Profit after tax for FY 2025 was €85.4 million, up from €32.6 million in
FY 2024. Tax expenses amounted to €16.9 million, compared to €1.0 million
in 2024. Earnings per share for FY 2025 was 60.8 cents, compared with 22.6
cents in FY 2024. Diluted EPS was 58.3 cents, up from 21.8 cents in the prior
year.
Realised Copper Prices
The average prices of copper for 2025 and 2024 were:
$/lb Q4 2025 Q4 2024 FY2025 FY2024
Realised copper price (excluding QPs) $/lb 5.10 4.10 4.49 4.19
Market copper price per lb (period average) $/lb 5.03 4.16 4.51 4.15
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 2025, including quotation period adjustments, was approximately
$4.45/lb.
Foreign Exchange
In FY2025, Atalaya recognised a foreign exchange loss of €6.3 million
(FY2024 gain: €3.1 million). The foreign exchange loss 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:
Three months ended Three months ended Twelve months ended Twelve months ended
31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024
Average rates for the periods
GBP - EUR 0.8753 0.8324 0.8568 0.8587
USD - EUR 1.1634 1.0681 1.130 1.091
Spot rates as at
GBP - EUR 0.8726 0.8292 0.8726 0.8292
USD - EUR 1.175 1.039 1.175 1.039
During 2025 and 2024, Atalaya did not have any currency hedging agreements.
Financial Position
(Euro 000's) 31 Dec 2025 31 Dec 2024
ASSETS
Non-current assets 550,436 531,306
Other current assets 72,066 91,400
Tax refundable 2,834 266
Cash and cash equivalents 166,306 52,878
Total Assets 791,642 675,850
Shareholders' Equity 591,810 518,537
LIABILITIES
Non-current liabilities 52,448 57,497
Current liabilities 147,384 99,816
Total Liabilities 199,832 157,313
Total Equity and Liabilities 791,642 675,850
Assets
As of 31 December 2025, total assets amounted to €791.6 million, up from
€675.9 million on 31 December 2024, representing an increase of €115.8
million. This increase is mainly driven by the growth in property, plant, and
equipment, intangible assets, and cash and cash equivalents, partially offset
by the reduction in inventories and trade receivables. The increase in cash
and cash equivalents is primarily due to an increase of concentrate sold and
higher copper price.
Non-current assets as of 31 December 2025 amounted to €550.4 million
compared to €531.3 million in 2024. This includes property, plant, and
equipment of €447.7 million in 2025, increasing from €409.0 million in
2024, intangible assets of €74.9 million in 2025 compared to €70.2 million
in 2024, non-current trade and other receivables amounting to €1.1 million
in 2025, down from €33.3 million in 2024, non-current financial assets
remaining stable at €1.1 million, and deferred tax assets of €15.8
million, increasing from €15.1 million in 2024.
Current assets as of 31 December 2025 amounted to €241.2 million, increasing
from €144.5 million in 2024. Within this category, inventories decreased
significantly to €30.9 million from €49.2 million in 2024, while trade and
other receivables increased to €41.1 million compared to €36.9 million in
2024. Tax refundable increased to €2.9 million from €0.3 million in 2024.
Cash and cash equivalents significantly increased to €166.3 million, up from
€52.9 million in 2024, mainly due to higher production and concentrate sold.
The most notable change in current assets was the substantial increase in cash
and cash equivalents, offset partially by the decrease in inventories,
reflecting a lower level of concentrates in stockpile.
Liabilities
Non-current liabilities amounted to €52.4 million, decreasing from €57.5
million in 2024. The most significant component of non-current liabilities are
provisions, which stood at €28.8 million in 2025, down from €29.3 million
in 2024. In addition to the provision, non-current liabilities included
borrowings of €5.7 million, a decrease from €10.9 million in 2024, lease
liabilities of €3.8 million, up from €3.3 million in 2024, and trade and
other payables remaining stable at €14.1 million, from €14.0 million in
2024.
Current liabilities as of 31 December 2025 stood at €147.3 million, compared
to €99.8 million in 2024. This includes borrowings of €38.6 million, a
significant increase from €6.9 million in 2024, trade and other payables of
€106.1 million, up from €90.1 million in 2024, current tax liabilities of
€0.1 million, decreasing from €1.4 million in 2024, current provisions of
€1.8 million, down from €0.9 million in 2024, and lease liabilities of
€0.6 million, which remained stable from €0.5 million in 2024.
Total liabilities increased to €199.8 million from €157.3 million in 2024,
mainly due to the increase in short term borrowings.
Total equity as of 31 December 2025 amounted to €591.8 million, up from
€518.5 million in 2024, reflecting an increase of €73.2 million. Share
capital and share premium stood unchanged from 2024 at €12.7 million and
€321.9 million. Accumulated profit stood at €166.1 million, up from
€93.1 million in 2024. Non-controlling interests amounted to €1.9 million,
compared to €2.2 million in 2024.
Overall, total equity and liabilities as of 31 December 2025 stood at €791.6
million, marking an increase from €675.9 million in the previous year.
Results
The Group's and Company's consolidated results are set out on the Consolidated
Statements of Comprehensive Income.
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 2025
and 2024, and cash flows for the twelve months ended 31 December 2025 and
2024.
Liquidity Information
(Euro 000's) 31 Dec 2025 31 Dec 2024
Unrestricted cash and cash equivalents at Group level 146,505 43,184
Unrestricted cash and cash equivalents at Operation level 19,801 9,694
Consolidated cash and cash equivalents 166,306 52,878
Net cash position 121,960 35,091
Working capital surplus 93,822 44,728
Unrestricted cash and cash equivalents as at 31 December 2025 increased to
€166.3 million from €52.9 million at 31 December 2024. The increase in
cash balances is primarily due to cash inflows during 2025, mainly related to
higher sales with higher realised price. Cash balances are unrestricted and
include balances at both the operational and corporate levels. The net
increase in cash and cash equivalents for the year was €113.4 million,
compared to a decrease of €68.1 million in 2024. This increase was driven by
higher concentrate sold with better realised copper price and the use of
credit facilities short term.
As of 31 December 2025, Atalaya reported a working capital surplus of €93.8
million, compared with a working capital surplus of €44.7 million at 31
December 2024. The increase in working capital surplus in 2025 was mainly
driven by changes in current liabilities and cash balances. Cash increased
significantly compared to the previous year, reflecting higher production and
lower inventories in spite of higher investments in property, plant, and
equipment, intangible assets as well as the repayment of borrowings and
payment of dividends. At 31 December 2025, trade and other payables increased
to €106.1 million, up from €90.1 million in 2024, while inventories also
reduced to €30.9 million from €49.2 million in the prior year. Trade and
other receivables increased to €41.1 million in 2025, compared to €36.9
million in 2024.
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) Three month ended 31 Dec 2025 Three month ended 31 Dec 2024 Twelve month ended 31 Dec 2025 Twelve month ended 31 Dec 2024
Cash flows from operating activities 72,477 11,101 192,483 53,403
Cash flows used in investing activities (25,305) (16,578) (85,070) (66,073)
Cash flows from financing activities 11,418 (19,168) 13,444 (57,261)
Net (decreased)/increase in cash and cash equivalents 58,590 (24,645) 120,857 (69,931)
Net foreign exchange differences (6,094) 1,244 (7,429) 1,802
Total net cash flow for the period 52,496 (23,401) 113,428 (68,129)
In the twelve-month period ending 31 December 2025, cash and cash equivalents
experienced a increase of €113.4 million. This increase resulted from cash
generated by operating activities amounting to €192.5 million, offset by
cash used in investing activities totalling €85.1 million and financing
inflows amounting to €13.4 million, partially mitigated by a €7.4 million
net negative foreign exchange impact.
Cash generated from operating activities before changes in working capital
reached €188.0 million, compared with an EBITDA of €179.8 million. Atalaya
increased its inventories by €17.3 million, while trade and other
receivables decreased by €1.5 million, and trade and other payables
increased by €11.9 million. The company incurred corporate tax payments
totalling €21.0 million during this period.
Investing activities for the year 2025 amounted to €85.1 million, primarily
directed towards capital expenditures related to ongoing projects, including
plant improvements and infrastructure developments.
Financing activities in 2025 totalled positive €13.4 million, mainly driven
by the repayment of borrowings amounting to €11.4 million, dividend payments
of €10.1 million, share options expense of €2.5million and lease payments
of €0.6 million, partially offset by proceeds from the issuance of share
capital totalling €nil million and new borrowings of €37.9 million.
5. Alternative Performance Measures
Atalaya has included certain non-IFRS measures including "EBITDA", "Cash Costs
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 Costs 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 Costs per pound of
payable copper is consistent with the widely accepted industry standard
established by Wood Mackenzie and is also known as the cash costs.
AISC per pound of payable copper includes the Cash Costs 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. 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 2025.
7. Critical accounting policies, estimates, judgements, assumptions and accounting changes
The preparation of Atalaya's Financial Statements in accordance with IFRS
requires management to made estimates and assumptions that affected amounts
reported in the Financial Statements and accompanying notes. There is a full
discussion and description of Atalaya's critical accounting estimates and
judgements in the audited financial statements for the year ended 31 December
2025.
8. 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 2025
(Euro 000's) Note 2025 2024
Revenue 5 482,915 326,797
Operating costs and mine site administrative expenses (280,989) (240,784)
Mine site depreciation, amortisation and impairment 13,14 (47,520) (36,617)
Gross profit 154,406 49,396
Administration and other expenses (10,472) (7,927)
Share based benefits 23 (7,009) (1,379)
Impairment loss on financial and contract assets 13,20 (21,418) (1,204)
Exploration expenses (8,426) (7,950)
Care and maintenance expenditure (291) (2,784)
Other income 4,028 383
Operating profit 6 110,818 28,535
Net foreign exchange gain/(loss) 4 (6,263) 3,090
Interest income from financial assets at fair value through profit and loss 8 - -
Interest income from financial assets at amortised cost 8 1,834 1,887
Finance costs 9 (4,126) (1,989)
Profit before tax 102,263 31,523
Tax 10 (16,900) 1,037
Profit for the year 85,363 32,560
Profit for the year attributable to:
- Owners of the parent 25 85,577 31,738
- Non-controlling interests 25 (214) 822
85,363 32,560
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 60.8 22.6
Diluted earnings per share (EUR cents per share) 11 58.3 21.8
Profit for the year 85,363 32,560
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 39 (7)
'OCI'
Total comprehensive income for the year 85,402 32,553
Total comprehensive income for the year attributable to:
- Owners of the parent 25 85,616 31,731
- Non-controlling interests 25 (214) 822
The notes on subsequent pages are an integral part of these consolidated
financial statements.
Consolidated Statement of Financial Position
As at 31 December 2025
31 Dec 2025 31 Dec 2024
(Euro 000's) Note
Assets
Non-current assets
Property, plant and equipment 13 447,729 409,032
Intangible assets 14 74,919 70,209
Loans 19 9,725 2,627
Trade and other receivables 20 1,122 33,252
Non-current financial asset 21 1,101 1,101
Deferred tax asset 17 15,840 15,085
550,436 531,306
Current assets
Inventories 18 30,871 49,162
Loans 19 20 5,352
Trade and other receivables 20 41,113 36,863
Tax refundable 2,834 266
Other financial assets 21 62 23
Cash and cash equivalents 22 166,306 52,878
241,206 144,544
Total assets 791,642 675,850
Equity and liabilities
Equity attributable to owners of the parent
Share capital 23 12,668 12,668
Share premium 23 321,856 321,856
Other reserves 24 89,255 88,774
Accumulated profit 166,091 93,085
589,870 516,383
Non-controlling interests 25 1,940 2,154
Total equity 591,810 518,537
Liabilities
Non-current liabilities
Trade and other payables 26 14,142 13,983
Provisions 27 28,764 29,328
Lease liability 28 3,834 3,320
Borrowings 29 5,708 10,866
52,448 57,497
Current liabilities
Trade and other payables 26 106,117 90,090
Lease liability 28 639 481
Current tax liabilities 136 1,408
Dividend payable 9
Provisions 27 1,845 916
Borrowings 29 38,638 6,921
147,384 99,816
Total liabilities 199,832 157,313
Total equity and liabilities 791,642 675,850
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 18 March 2026 and were signed on its behalf.
Consolidated Statement of Changes in Equity
for the year ended 31 December 2025
(Euro 000's) Note Share capital Share premium Other reserves ((1)) Accum. Profits Total NCI Total equity
1 Jan 2025 12,668 321,856 88,774 93,085 516,383 2,154 518,537
Profit for the period - - - 85,577 85,577 (214) 85,363
Change in fair value of financial assets through other comprehensive income 21 - - 39 - 39 - 39
'OCI'
Total comprehensive (loss)/income - - 39 85,577 85,616 (214) 85,402
Issuance of share capital 23 - - - - - - -
Recognition of depletion factor 24 - - - - - - -
Recognition of share-based payments 24 - - 428 (2,588) (2,160) - (2.160)
Recognition of non-distributable reserve 24 - - 1 - 1 - 1
Recognition of distributable reserve 24 - - 13 - 13 - 13
Other changes in equity - - - 81 81 - 81
Transactions with external shareholders - - - - - - -
Dividends paid 12 - - - (10,064) (10,064) - (10,064)
31 Dec 2025 12,668 321,856 89,255 166,091 589,870 1,940 591,810
(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
( )
((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 2025
(Euro 000's) Note 2025 2024
Cash flows from operating activities
Profit before tax 102,263 31,523
Adjustments for:
Depreciation of property, plant and equipment 13 42,718 39,658
Amortisation of intangible assets 14 4,802 3,907
Recognition of share‑based payments 24 7,009 1,379
Interest income 8 (1,834) (1,887)
Interest expense 9 604 1,161
Unwinding of discounting 9 796 828
Legal provisions 27 - (1,255)
Loss on disposal of PP&E 39
Impairment loss on financial and contract assets 6 2,726 1,205
Impairment loss on non-financial assets 21,418 -
Reversal of Intangible Asset Impairment 14 - (6,948)
Other tax provision 27 1,197 -
Net foreign exchange differences 6,263 (3,090)
Unrealised foreign exchange (loss)/gain on financing activities - (85)
Cash inflows from operating activities before working capital changes 188,001 66,396
Changes in working capital:
Inventories 18 17,342 (14,958)
Trade and other receivables 20 (1,500) (1,247)
Trade and other payables 26 11,904 5,595
Provisions 27 (969) (434)
Cash flows from operations 214,778 55,352
Interest expense on lease liabilities 28 (21) (30)
Interest paid 9 (1,238) (1,131)
Net tax (paid)/refund (21,036) (788)
Net cash from operating activities 192,483 53,403
Cash flows from investing activities
Purchases of property, plant and equipment 13 (72,165) (60,212)
Purchases of intangible assets 14 (9,483) (1,198)
Payments for investments 19 (4,057) (5,305)
Interest received 8 634 642
Net cash used in investing activities (85,071) (66,073)
Cash flows from financing activities
Lease payment 28 (565) (577)
Proceeds from borrowings 29(a) 37,916 3,000
Repayment of borrowings 29(a) (11,357) (51,900)
Proceeds from issue of share capital - 2,522
Share option expense (2,494) -
Dividends paid 12 (10,055) (10,306)
Net cash (used in)/from financing activities 13,445 (57,261)
Net increase in cash and cash equivalents 120,857 (69,931)
Net foreign exchange difference (7,429) 1,802
Cash and cash equivalents:
At beginning of the year 22 52,878 121,007
At end of the year 22 166,306 52,878
The notes on subsequent pages are an integral part of these consolidated
financial statements.
Notes to the 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.
The Group also has earn-in agreements related two exploration projects in
Sweden, the Skellefte Belt Project and the Rockliden Project, pursuant to
agreements entered into in 2024 with Mineral Prospektering i Sverige AB.
Additional information about the Company is available at
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.
Following the declaration of Proyecto Touro as a strategic industrial project
in June 2024 and subsequent progress in the permitting process, the Group
reassessed the probability of completion of phases 2, 3 and 4 under the
earn-in agreement. As a result of that reassessment, an intangible asset of
€16.5 million was recognised in 2024 in accordance with the Group's policy
on contingent payments (Note 2.31), together with the corresponding contingent
liabilities (Note 26).
In accordance with the Group's policy on non-controlling interests (Note 2.3),
20% of this intangible asset was attributed to non-controlling interests.
During 2024, the Group also reversed an impairment previously recognised in
2019 in respect of Proyecto Touro (Note 14).
As at 31 December 2025, the permitting process continues under the simplified
administrative framework granted by the strategic industrial project status.
The Company has submitted the required sectoral reports and is awaiting the
remaining responses from the relevant authorities. The Company continues to
engage constructively with the Xunta de Galicia in relation to the expected
timeline for completion of the administrative procedures.
In parallel, engineering and preparatory activities have progressed during the
year, supporting the potential future development of the project. Drilling
programmes have continued as planned, and the Company remains engaged with
local stakeholders and continues to operate its water treatment plant in the
area.
Proyecto Masa Valverde
On 21 October 2020, the Company announced that it entered into a definitive
purchase agreement to acquire 100% of the shares of Cambridge Mineria España,
S.L. (since renamed Atalaya Masa Valverde, S.L.U.), a Spanish company which
fully owns the Masa Valverde polymetallic project located in Huelva (Spain).
Under the terms of the agreement Atalaya will make an aggregate €1.4 million
cash payment in two instalments of approximately the same amount. The first
payment is to be executed once the project is permitted and second and final
payment when first production is achieved from the concession.
In November 2023, the exploitation permit for the Masa Valverde and Majadales
deposits was officially granted. 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.
During 2025, infill and extensional drilling continued at the Masa Valverde
deposit, with two rigs active during the year and additional geotechnical
drilling completed. Drilling has primarily focused on stockwork-style
mineralisation, which is expected to be amenable for processing at the
existing Riotinto facilities and supports the Company's initial focus on the
Masa Valverde copper zones. Further infill drilling is planned for 2026.
Masa Valverde has been granted the two key permits required for development,
the AAU and the exploitation permit. Development of the access ramp is subject
to final Board approval.
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.
Under the terms of the agreement, 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 become payable upon receipt of the
environmental impact statement ("EIS") and the final mining permits for any
project within the acquired investigation permits. These outstanding
instalments are disclosed as a non-current payable to the sellers (Note 26).
During 2025, exploration activities continued at the Alconchel-Pallares
copper-gold project. A step-out drilling programme was underway during the
year, and three drill holes were completed in the third quarter of 2025.
Drilling is expected to commence at the Guijarro-Chaparral gold-copper project
in the coming weeks.
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.
During 2025, exploration activities progressed across the East Belt extension.
Gravimetric ground surveys were completed to better define future drill
targets, and soil geochemistry works were finalised at selected areas. As a
result of these programmes, several coincident gravity and geochemical targets
were outlined at Cerro Negro and Peñas Blancas. Drilling is expected to
commence at the Cerro Negro and Peñas Blancas permits in the coming weeks.
Skellefte Belt Project and Rockliden Project
In November 2024, 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 2025, a total of
€4.3 million (2024: €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). As these
projects remain in the early exploration stage and are still far from
obtaining operating mining permits, these impacts have been recorded directly
in the comprehensive income statement for the financial year.
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 36,432 2,101 8,685 474,522* 450 522,190
Non-mining assets - - - 458 - 458
36,432 2,101 8,685 474,980 450 522,648
* €22.1m related to E-LIX Project, see note 13.
Composition of the Group
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
2025 and 31 December 2024 remained unchanged.
((3) ) Recursos Cuenca Minera is a joint venture with ARM, see note
16.
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. (the
"Parent Company") and its subsidiaries (collectively, the "Group") have been
formulated in accordance with the International Financial Reporting Standards
adopted by the European Union ("EU-IFRS") and other applicable provisions of
the financial reporting regulatory framework, in particular the Commercial
Code and the Capital Companies Act, in order to show a true and fair view of
the Group's consolidated equity and consolidated financial position as of
December 31, 2025 and of the consolidated financial performance, its
consolidated cash flows and changes in consolidated equity for the year ended
on that date.
EU-IFRS comprises the standards issued by the International Accounting
Standards Board ("IASB") approved by the EU for application by listed
companies.
The definition of a Public-Interest Entity ("PIE") is set out in Article 2.13
of Directive 2006/43/EC, as amended by Article 1 of Directive 2014/56/EU,
which states that the following are considered to be EIPs: (a) entities
governed by the law of a Member State whose transferable securities are
admitted to trading on a regulated market in 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 Parent Company does not fall into any of the
above categories, it is not considered a PIE.
The Directors of the Parent Company estimate that the consolidated annual
accounts for the financial year 2025, which have been prepared on 18 of March
2026, will be approved by the General Meeting of Shareholders without any
modification.
The consolidated financial statements are presented in euros (€), rounding
all amounts to the nearest thousand (€'000), unless otherwise indicated.
The preparation of the consolidated financial statements in accordance with
EU-IFRS requires the application of relevant accounting estimates and the
making of judgments, estimates and assumptions in the process of applying the
Group's accounting policies. The aspects that have involved a greater degree
of judgment, complexity or in which the assumptions and estimates are
significant for the preparation of the consolidated financial statements are
disclosed in Note 3.3.
Likewise, although the estimates made by the Directors of the Parent Company
have been calculated based on the best information available as of December
31, 2025, it is possible that events that may take place in the future may
require their modification in the coming years. The effect on the consolidated
financial statements of the modifications that, if any, arise from the
adjustments to be made during the coming years would be recognized
prospectively.
(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 EU-IFRSs which are relevant to
its operations and are effective for accounting periods commencing on or after
1 January 2025.
IAS 21 (Modification) - Absence of interchangeability
The IASB has amended IAS 21 to introduce guidance for determining whether a
currency is exchangeable into another currency and, where it is not, how to
determine the appropriate spot exchange rate to apply. The amendments require
an entity to assess exchangeability at the measurement date and, if a currency
is deemed not to be exchangeable, to estimate a spot exchange rate that
reflects the rate at which an orderly exchange transaction would take place
between market participants under prevailing economic conditions.
The adoption of these amendments has not had a material impact on the Group's
financial statements or accounting policies, as the Group operates in
jurisdictions where currencies are freely exchangeable and observable market
exchange rates are available.
Standards issued but not yet in force and not yet implemented by the Group
The Group will apply the following amendments adopted by the European Union
from 1 January 2026.
IFRS 9 (Amendment) and IFRS 7 (Amendment) - Classification and Measurement of
Financial Instruments
The main modifications include:
- Clarification of the date of recognition and derecognition of
specific financial assets and liabilities, with a new exception for certain
liabilities settled through electronic cash transfer systems.
- Additional guidance on how to assess whether a financial asset
meets the criterion of only principal and interest payments on the outstanding
principal amount (UPPI).
- New disaggregation requirements for financial instruments with
contractual terms that may alter cash flows, including ESG-linked financial
instruments.
- Update of the reporting requirements for equity instruments
measured at fair value through other comprehensive income (FVOCI).
While the amendments relating to the SPPI criterion are primarily relevant to
financial institutions, the changes concerning recognition, ESG-linked
financial instruments and enhanced disclosure requirements are applicable to
all entities.
These amendments will enter into force from 1 January 2026 and will be allowed
to be adopted early. The amendments may introduce additional disclosure
requirements but are not expected to have a significant impact on the Group's
recognition and valuation of financial instruments.
IFRS 9 (Amendment) and IFRS 7 (Amendment) - Contracts relating to
nature-dependent electricity
These amendments address the accounting for electricity supply contracts that
depend on natural conditions (for example, wind or solar energy), enabling
entities to reflect such contracts more accurately in their financial
statements. The key changes include:
- Clarification of the "own use" exemption for electricity contracts.
- The ability to apply hedge accounting to certain contracts when
they are designated as hedging instruments.
- New disaggregation requirements to improve transparency regarding
the financial impact of such contracts.
These amendments will apply from 1 January 2026. They may require additional
disclosures, particularly if the Group enters into renewable energy supply
contracts but are not expected to have a material impact on the Group's
recognition or measurement principles.
IFRS Annual Improvements - Volume 11
The IASB's Annual Improvements process addresses minor amendments to IFRS
Standards in order to eliminate inconsistencies and improve clarity. Volume 11
includes amendments to the following standards:
IFRS 1 - First-time Adoption of IFRS: improved references and drafting.
IFRS 7 - Financial Instruments: Disclosures: simplification of cash flow
disclosure requirements.
IFRS 9 - Financial Instruments: elimination of an inconsistency between IFRS 9
and IFRS 15 relating to the initial measurement of trade receivables, and
clarification of how a lessee accounts for the derecognition of a lease
liability in accordance with paragraph 23 of IFRS 9.
IFRS 10 - Consolidated Financial Statements: improvements to structure and
wording.
IAS 7 - Statement of Cash Flows: clarification that, under the indirect
method, the starting point should be profit from operating activities rather
than profit or loss for the year.
These amendments will become effective on 1 January 2026. Their impact is
expected to be limited, as they primarily clarify existing guidance rather
than introduce significant changes.
Standards, Interpretations, and Amendments to Existing Standards Not Yet
Endorsed by the European Union or Not Available for Early Adoption
As at 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 have not yet been adopted by
the European Union and therefore cannot yet be applied by the Group. The Group
has, however, assessed their potential impact on its consolidated financial
statements once they become applicable.
IFRS 18 - Presentation and Disclosure in Financial Statements
IFRS 18 is a recently issued standard that replaces IAS 1 (Presentation of
Financial Statements), while retaining many of its underlying principles.
However, it introduces significant 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 management-defined performance measures
presented in the financial statements.
- Enhanced aggregation and disaggregation principles applicable to
both the primary financial statements and the notes.
Although IFRS 18 does not affect recognition or measurement principles, it may
change the presentation of operating results.
This standard will become effective from 1 January 2027, subject to adoption
by the European Union, and will apply to interim financial statements.
Retrospective application is required and early adoption is permitted.
Management's preliminary assessment indicates that IFRS 18 will affect the
presentation and disclosures in the Group's consolidated financial statements
but will not impact the recognition or measurement principles applied by the
Group.
IFRS 19 - Non-Publicly Accountable Subsidiaries: Disclosures
IFRS 19 is a new standard designed for subsidiaries without public
accountability whose parent prepares consolidated financial statements in
accordance with IFRS. It reduces disclosure requirements for such subsidiaries
while maintaining IFRS recognition and measurement principles.
This voluntary standard applies to subsidiaries preparing consolidated or
individual annual financial statements, provided that local regulations permit
its use.
In the case of Spanish groups, its application primarily relates to foreign
subsidiaries that apply IFRS in their individual financial statements.
Subsidiaries that currently apply IFRS for SMEs or local GAAP in their
statutory financial statements would not need to prepare a separate set of
accounts for group reporting purposes if they adopt IFRS 19.
IFRS 19 will become effective from 1 January 2027. Early adoption is
permitted, subject to approval by the European Union.
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 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 of sales and contributions
of assets between an investor and its associate or joint venture, depending on
whether the transferred non-cash assets constitute a "business" under IFRS 3.
Where the assets qualify as a business, the investor recognises the full gain
or loss on the transaction. Otherwise, only the portion of the gain or loss
attributable to other investors is recognised.
These amendments were originally intended to apply prospectively from 1
January 2016. However, at the end of 2015, the IASB deferred their effective
date indefinitely, pending a broader review of the accounting for associates
and joint ventures. As the amendments remain deferred indefinitely and have
not been adopted by the European Union, the Group has adopted the following
accounting policy in accordance with IAS 8: the sale or contribution of assets
to an associate or joint venture is accounted for by recognising only the
portion of the gain or loss attributable to other investors.
2.3 Subsidiaries
Subsidiaries, including structured entities, are those entities over which the
Parent Company, directly or indirectly through its subsidiaries, exercises
control. The Parent Company controls a subsidiary when, through its
involvement with the entity, it is exposed, or has rights, to variable returns
and has the ability to affect those returns through the power it exercises
over the entity. The Parent Company has power when it holds substantive rights
that are currently exercisable and provide the ability to direct the relevant
activities. The Parent Company is exposed, or has rights, to variable returns
from its involvement with a subsidiary when the returns it obtains may vary as
a result of the economic performance of the entity.
A structured entity is an entity designed in such a way that voting rights or
similar rights are not the dominant factor in determining who controls the
entity, for example where potential voting rights relate solely to
administrative activities and those activities are governed by contractual
arrangements.
Control is typically achieved through ownership of more than 50% of the voting
rights, whether directly or indirectly. However, control may also be exercised
over another entity even when holding less than half of the voting rights, as
is the case of Cobre San Rafael, S.L., as explained in Note 3.3.
The Group reassesses whether it continues to control its subsidiaries whenever
facts and circumstances indicate that one or more of the elements of control
may have changed.
The income, expenses and cash flows of subsidiaries are included in the
consolidated financial statements from the date of acquisition, being the date
on which the Group effectively obtains control. Subsidiaries are excluded from
consolidation from the date on which control is lost.
Transactions and balances between Group companies, together with any
unrealised gains or losses, are eliminated in the consolidation process.
However, unrealised losses are considered as an indicator of impairment of the
assets transferred.
The accounting policies of subsidiaries have been aligned with those of the
Group for transactions and other events of a similar nature occurring in
similar circumstances.
The annual accounts or financial statements of subsidiaries used in the
consolidation process are prepared as at the same reporting date and for the
same reporting period as those of the Parent Company.
Where a reduction in the Group's interest in a subsidiary results in a loss of
control, the Group recognises a gain or loss for the difference between the
consideration received, plus the fair value of any retained investment in the
entity, plus the carrying amount of non-controlling interests, and the
carrying amount of the consolidated net assets. The cumulative amount
recognised in other comprehensive income relating to the subsidiary is
reclassified in full to profit or loss or to reserves, depending on its
nature. The consolidated net assets include goodwill, to the extent that the
entity disposed of constitutes a business. If the entity disposed of
constitutes a business that formed part of a cash-generating unit or a group
of cash-generating units to which goodwill had been allocated, such goodwill
is allocated between the portion disposed of and the portion retained on the
basis of their relative fair values and recoverable amounts, respectively.
Where the Group's ownership interest in a subsidiary changes but control is
retained, the transaction is accounted for as an equity transaction.
Accordingly, no new acquisition cost arises on increases in ownership and no
gain or loss is recognised on reductions. Instead, the difference between the
consideration paid or received and the carrying amount of non-controlling
interests is recognised directly in reserves attributable to the shareholders
of the Parent Company, without prejudice to the reclassification of
consolidation reserves and the reallocation of other comprehensive income
between the Group and non-controlling interests. Upon a reduction in the
Group's interest in a subsidiary, non-controlling interests are recognised at
their proportionate share of the consolidated net assets, including goodwill.
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.
(b) 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.
(c) 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.
(d) 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.
(e) 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.
(f) 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 Business combinations
The Group applies the acquisition method to account for business combinations.
The acquisition date is the date on which the Group obtains control of the
acquired business.
The consideration transferred in a business combination is determined at the
acquisition date as the aggregate of the fair values of the assets
transferred, the liabilities incurred or assumed, the equity instruments
issued and any contingent consideration dependent on future events or the
fulfilment of certain conditions in exchange for control of the acquired
business.
The consideration transferred excludes any payment that does not form part of
the exchange for the acquired business. Acquisition related costs are
recognised as an expense as incurred.
At the acquisition date, the Group recognises the assets acquired and
liabilities assumed at their fair value. The non controlling interest in the
acquired business is recognised at the amount corresponding to its
proportionate share of the fair value of the net assets acquired. This
criterion is only applicable to non controlling interests that provide a
present ownership interest entitling their holders to a proportionate share of
the entity's net assets in the event of liquidation. Otherwise, non
controlling interests are measured at fair value or at the value based on
market conditions. The liabilities assumed include contingent liabilities to
the extent that they represent present obligations arising from past events
and their fair value can be measured reliably. In addition, the Group
recognises indemnification assets granted by the seller at the same time and
using the same measurement criteria as the indemnified item of the acquired
business, taking into account, where applicable, the risk of insolvency and
any contractual limitations on the indemnified amount.
This criterion does not apply to non current assets or disposal groups
classified as held for sale, defined benefit long term employee benefit
liabilities, share based payment transactions, deferred tax assets and
liabilities, and intangible assets arising from the reacquisition of
previously granted rights.
The assets and liabilities assumed are classified and designated for
subsequent measurement on the basis of the contractual arrangements, economic
conditions, accounting policies and operating policies and other conditions
existing at the acquisition date, except for lease contracts in which the
acquired business is the lessor and insurance contracts.
Any excess of the consideration transferred, plus the amount recognised for
non controlling interests, over the net amount of the assets acquired and
liabilities assumed is recognised as goodwill. Where applicable, any
shortfall, after reassessing the amount of the consideration transferred, the
amount recognised for non controlling interests and the identification and
measurement of the net assets acquired, is recognised in a separate line item
in the consolidated income statement.
Contingent consideration is classified in accordance with the underlying
contractual terms as a financial asset or liability, an equity instrument or a
provision. To the extent that subsequent changes in the fair value of a
financial asset or liability do not correspond to a measurement period
adjustment, they are recognised in profit or loss. Contingent consideration
classified as equity is not subsequently remeasured, and its settlement is
recognised in equity. Contingent consideration classified as a provision is
subsequently recognised at fair value with changes recognised in profit or
loss.
2.5 Non-controlling interests
Non controlling interests in subsidiaries are recognised at the acquisition
date at their proportionate share of the fair value of the identifiable net
assets.
Non controlling interests are presented in consolidated equity separately from
the equity attributable to the shareholders of the Parent. Non controlling
interests in the consolidated results for the year are likewise presented
separately in the consolidated income statement.
The Group's interest and the non controlling interests in the consolidated
results for the year and in the changes in equity of subsidiaries, after
taking into account consolidation adjustments and eliminations, are determined
on the basis of ownership interests at the reporting date, without considering
the possible exercise or conversion of potential voting rights and after
deducting the effect of dividends, whether agreed or not, on cumulative
preference shares classified in equity. However, the Group's interest and the
non controlling interests are determined taking into account the possible
exercise of potential voting rights and other derivative financial instruments
that, in substance, currently provide access to the returns associated with
ownership interests in subsidiaries.
Profit or loss and each component of other comprehensive income are attributed
to the equity attributable to the shareholders of the Parent and to non
controlling interests in proportion to their ownership interests, even if this
results in a deficit balance in non controlling interests. Agreements entered
into between the Group and non controlling interests are recognised as a
separate transaction.
The Group recognises put options over interests in subsidiaries granted to non
controlling interests at the acquisition date of a business combination as an
anticipated acquisition of those interests, recognising a financial liability
at the present value of the best estimate of the amount payable, which forms
part of the consideration transferred. Put options over interests in
subsidiaries granted to non controlling interests subsequent to the business
combination are recognised as a financial liability at the present value of
the best estimate of the amount payable, with a corresponding entry in
reserves.
In subsequent periods, changes in the financial liability are recognised as a
finance expense or finance income in profit or loss. Any discretionary
dividends paid to non controlling interests up to the exercise date of the
options are recognised as a distribution of profits. If the options are
ultimately not exercised, the transaction is recognised as a sale of interests
to non controlling shareholders.
2.6 Associates and joint ventures
An associate is an entity over which the Parent, directly or indirectly
through subsidiaries, exercises significant influence. Significant influence
is the power to participate in the financial and operating policy decisions of
the investee (generally accompanied by an ownership interest of between 20%
and 50% of the voting rights), without constituting control or joint control.
In assessing whether significant influence exists, potential voting rights
that are exercisable or convertible at the reporting date of each year are
considered, including potential voting rights held by the Group or by another
entity.
Joint arrangements are those in which there is a contractual agreement to
share control over an economic activity, such that decisions about the
relevant activities require the unanimous consent of the Group and the other
parties or operators. A joint venture is a joint arrangement whereby the
parties that have joint control of the arrangement have rights to the net
assets of the arrangement.
Investments in associates and joint ventures are accounted for using the
equity method from the date on which significant influence or joint control is
obtained, respectively, until the date on which the Parent can no longer
justify their existence.
Investments in associates and joint ventures are initially recognised at cost,
including any directly attributable acquisition costs and any contingent
consideration asset or liability dependent on future events or the fulfilment
of certain conditions.
Any excess of the cost of the investment over the Group's share of the fair
values of the identifiable net assets is recognised as goodwill, which is
included in the carrying amount of the investment. Any shortfall, after
reassessing the cost of the investment and the identification and measurement
of the net assets of the associate or joint venture, is recognised as income
in determining the investor's share of the profit or loss of the associate or
joint venture in the year of acquisition.
The accounting policies of associates and joint ventures have been aligned in
terms of reporting date and measurement on the same basis as that applied to
subsidiaries.
The Group's share of the profits or losses of associates and joint ventures
arising from the acquisition date is recognised as an increase or decrease in
the carrying amount of the investments, with a corresponding entry in the line
item Share of profit or loss of associates accounted for using the equity
method in the consolidated income statement. Similarly, the Group's share of
other comprehensive income of associates and joint ventures arising from the
acquisition date is recognised as an increase or decrease in the carrying
amount of the investments, with the corresponding entry recognised by nature
in other comprehensive income. Dividend distributions are recognised as a
reduction in the carrying amount of the investments. In determining the
Group's share of profits or losses, including impairment losses recognised by
associates or joint ventures, income and expenses arising from the acquisition
method are taken into account.
The Group's share of the profits or losses of associates and joint ventures
and of changes in equity is determined on the basis of ownership interests at
the reporting date, without considering the possible exercise or conversion of
potential voting rights. However, the Group's share is determined taking into
account the possible exercise of potential voting rights and other derivative
financial instruments that, in substance, currently provide access to the
returns associated with ownership interests in associates or joint ventures.
Losses of associates and joint ventures attributable to the Group are limited
to the amount of the net investment, except where the Group has incurred legal
or constructive obligations or has made payments on behalf of the associates
or joint ventures. For the purposes of recognising impairment losses in
associates and joint ventures, the net investment is determined as the
carrying amount resulting from the application of the equity method together
with any other item that, in substance, forms part of the investment in the
associates or joint ventures. Any excess of losses over the investment in
equity instruments is allocated to the remaining components in reverse order
of their priority in liquidation. Profits subsequently generated by those
associates or joint ventures for which recognition of losses had been limited
to the amount of the investment are recognised to the extent that they exceed
previously unrecognised losses. The Group applies the measurement criteria for
financial instruments to the other components that form part of the net
investment and to which the equity method is not applied, prior to recognising
the losses referred to above. In applying those criteria, the Group does not
take into account the recognition of losses arising from the equity method in
the carrying amount of those items. As a result, the measurement of those
items at fair value and, where applicable, impairment, affects the recognition
of losses arising from the equity method in prior periods and in the current
year.
Unrealised gains and losses arising from transactions between the Group and
associates or joint ventures are recognised only to the extent of the
interests of other unrelated investors. This criterion does not apply to the
recognition of unrealised losses that provide evidence of impairment of the
asset transferred. However, gains and losses arising from transactions between
the Group and associates or joint ventures involving net assets that
constitute a business are recognised in full.
Unrealised gains and losses on non monetary contributions of assets that do
not constitute a business by the Group to associates or joint ventures are
recognised in accordance with the substance of the transaction. In this
respect, where the assets transferred are retained in the associate or joint
venture and the transaction has commercial substance, only the proportionate
share of gains or losses attributable to the other parties is recognised.
Otherwise, no gain or loss is recognised on the transaction. Deferred gains or
losses are recognised against the carrying amount of the investment.
Unrealised losses are not eliminated to the extent that they provide evidence
of impairment of the asset transferred. Where, in addition to the interest
received, the Group receives monetary or non monetary assets, the result of
the transaction relating to the latter is recognised.
In non monetary contributions of businesses by the Group to associates, gains
and losses are recognised in full.
On the reduction of an interest in an associate or joint venture resulting in
the loss of significant influence or joint control, respectively, the Group
recognises a gain or loss equal to the difference between the consideration
received, plus the fair value of any retained investment, and the carrying
amount of the interest. The other comprehensive income relating to the
associate or joint venture is reclassified in full to profit or loss or
reserves as if the associate or joint venture had directly disposed of the
related assets or liabilities.
On the reduction of an interest in an associate that does not result in the
loss of significant influence, or where the Group loses joint control of a
joint venture but retains significant influence, the Group recognises a gain
or loss equal to the difference between the consideration received and the
proportionate share of the carrying amount of the interest disposed of. The
other comprehensive income relating to the proportionate share of the
associate disposed of is reclassified to profit or loss or reserves as if the
associate had directly disposed of the related assets or liabilities. If the
transaction results in a loss, the Group assesses the retained investment for
impairment.
On the additional acquisition of interests in an associate, including
obtaining joint control, the Group applies the criteria established for the
initial acquisition of investments in associates at the date significant
influence is obtained, to the proportionate share of the investment acquired.
After application of the equity method, the Group assesses whether there is
objective evidence of impairment of the net investment in the associate or
joint venture.
Impairment is determined by comparing the carrying amount of the net
investment in the associate or joint venture with its recoverable amount,
being the higher of value in use and fair value less costs of disposal. In
this regard, value in use is determined by reference to the Group's share of
the present value of the estimated cash flows from ordinary activities and the
amounts that may arise from the ultimate disposal of the associate or joint
venture.
The recoverable amount of the investment in an associate or joint venture is
assessed for each associate or joint venture individually, unless it does not
constitute a cash generating unit.
Impairment losses are not allocated to goodwill or to other assets implicit in
the investment in associates or joint ventures arising from the application of
the acquisition method. In subsequent periods, reversals of impairment of
investments are recognised in profit or loss to the extent that there is an
increase in the recoverable amount. Impairment losses are presented separately
from the Group's share of the results of associates and joint ventures.
2.7 Joint ventures
A joint operation is a joint arrangement whereby the parties that have joint
control of the arrangement have rights to the assets and obligations for the
liabilities relating to the arrangement.
In joint operations, the Group recognises in the consolidated financial
statements its assets, including its share of jointly controlled assets; its
liabilities, including its share of liabilities incurred jointly with the
other operators; the revenue from the sale of its share of the output arising
from the joint operation; its share of the revenue from the sale of the output
arising from the joint operation; and its expenses, including its share of any
jointly incurred expenses.
The acquisition by the Group of an initial and subsequent interest in a joint
operation that constitutes a business is recognised by applying the criteria
developed for business combinations to the extent of the percentage interest
held in the individual assets and liabilities. However, on the subsequent
acquisition of an additional interest in a joint operation, the previously
held interest in the individual assets and liabilities is not remeasured,
provided that the Group retains joint control.
In transactions involving the sale or contribution of assets by the Group to
joint operations, gains or losses are recognised only to the extent of the
interests of the other operators, unless the losses provide evidence of a loss
or impairment of the assets transferred, in which case they are recognised in
full.
In transactions involving purchases by the Group from joint operations, gains
or losses are recognised only when the acquired assets are sold to third
parties, unless the losses provide evidence of a loss or impairment of the
assets acquired, in which case the Group recognises in full its proportionate
share of the losses.
2.8 Foreign currency transactions and balances
The consolidated financial statements are presented in thousands of euros,
rounded to the nearest thousand, which is the functional and presentation
currency of the Parent.
Foreign currency transactions are translated into the functional currency
using the spot exchange rates between the functional currency and the foreign
currency at the dates of the transactions. The spot exchange rate is the rate
used in transactions with immediate delivery.
Monetary assets and liabilities denominated in foreign currency are translated
into euros at the closing rate at the reporting date, whereas non monetary
items measured at historical cost are translated using the exchange rates at
the date of the transaction. For these purposes, advances to suppliers and
from customers are treated as non monetary items and are therefore translated
at the exchange rate prevailing on the date of payment or receipt. The
subsequent recognition of inventories received or revenue from sales, in
respect of the advance, is measured at the original exchange rate and not at
the rate prevailing at the transaction date. Finally, non monetary assets
measured at fair value are translated into euros using the exchange rate at
the date on which the fair value was determined.
In presenting the consolidated statement of cash flows, cash flows arising
from foreign currency transactions are translated into euros using the
exchange rates at the dates on which the cash flows occurred. The effect of
exchange rate changes on cash and cash equivalents denominated in foreign
currency is presented separately in the statement of cash flows as "Effect of
exchange rate differences on cash".
Exchange differences arising on the settlement of foreign currency
transactions and on the translation into euros of monetary assets and
liabilities denominated in foreign currency are recognised in profit or loss.
However, exchange differences arising on monetary items that form part of the
net investment in foreign operations are recognised as translation differences
in other comprehensive income.
Exchange gains or losses relating to monetary financial assets or liabilities
denominated in foreign currency are also recognised in profit or loss.
Monetary financial assets denominated in foreign currency classified at fair
value through other comprehensive income are considered to be measured at
amortised cost in the foreign currency and, accordingly, exchange differences
arising from changes in amortised cost are recognised in profit or loss, with
the remaining change in fair value recognised in accordance with section 2.13
(financial instruments).
The Group presents the effect of translating deferred tax assets and
liabilities denominated in foreign currency together with deferred income tax
in profit or loss.
Exchange gains or losses on non monetary financial assets and liabilities and
on monetary financial assets and liabilities measured at fair value through
profit or loss are recognised together with the change in fair value in other
comprehensive income or in profit or loss. The remaining change in fair value
is recognised in accordance with section 2.13 (financial instruments).
However, the exchange component of equity instruments denominated in foreign
currency and measured at fair value through other comprehensive income that
are designated as hedged items in fair value hedges of that component is
recognised in other comprehensive income.
The translation into euros of foreign operations whose functional currency is
not that of a hyperinflationary economy is performed using the following
criteria:
- Assets and liabilities, including goodwill and adjustments to net
assets arising on acquisition of the operations, including comparative
balances, are translated at the closing rate at the date of each balance
sheet.
- Income and expenses, including comparative balances, are translated
at the exchange rates prevailing on the date of each transaction.
- The resulting exchange differences arising from the application of
the above criteria are recognised as translation differences in other
comprehensive income.
The same criteria apply to the translation of the financial statements of
entities accounted for using the equity method, with the translation
differences corresponding to the Group's interest recognised in other
comprehensive income.
In presenting the consolidated statement of cash flows, the cash flows,
including comparative balances, of foreign subsidiaries and joint ventures are
translated into euros using the exchange rates prevailing at the dates on
which the cash flows occurred.
Translation differences recognised in other comprehensive income are
reclassified to profit or loss, as an adjustment to the gain or loss on
disposal, in accordance with the criteria set out in the sections on
subsidiaries and associates.
2.9 Property, plant and equipment
Property, plant and equipment is recognised at historical cost less
accumulated depreciation and, where applicable, accumulated impairment losses.
When property, plant and equipment is acquired through a non-monetary
exchange, the asset is measured at fair value unless the exchange transaction
lacks commercial substance or the fair value of neither the asset received nor
the asset given up can be measured reliably.
An exchange transaction is considered to have commercial substance when the
configuration of the cash flows of the asset received differs from that of the
asset transferred, or when the entity-specific value of the portion of the
Group's operations affected by the transaction changes as a result of the
exchange, and such difference is significant relative to the fair value of the
assets exchanged.
If the exchange lacks commercial substance or fair value cannot be measured
reliably, the asset received is measured at the carrying amount of the asset
given up, adjusted for any monetary consideration transferred, and subject to
a ceiling equal to the fair value of the asset received, where available.
The cost of property, plant and equipment constructed by the Group is
determined using the same principles as for acquired assets, and additionally
incorporates the criteria applied in determining the cost of inventories.
Revenue from the sale of items produced during the commissioning period of
property, plant and equipment and the related costs are recognised in the
consolidated income statement.
The cost of property, plant and equipment includes an estimate of dismantling
and removal costs and site restoration costs, where these constitute
obligations incurred as a consequence of their use and for purposes other than
the production of inventories.
Spare parts intended to be installed in facilities, equipment and machinery as
replacements for similar items are measured in accordance with the principles
described above. Spare parts with a storage cycle of less than one year are
recorded as inventories. Spare parts with a storage cycle exceeding one year
and which relate exclusively to specific assets are recognised and depreciated
together with those assets. In other cases, they are recognised as "Other
property, plant and equipment" and depreciated, where identifiable, in line
with the depreciation pattern of the asset being replaced. In general, such
spare parts are depreciated from the date they are incorporated into the
asset, taking into account the weighted technological or economic useful life
of the assets to which they may be attached and their own technical
obsolescence.
Subsequent costs are included in the carrying amount of the asset 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 replaced
components is derecognised. Where the cost of replaced elements has not been
depreciated separately and it is impracticable to determine their carrying
amount, the replacement cost is used as an indication of the cost of those
elements at the time of acquisition or construction. All other repairs and
maintenance are charged to the consolidated income statement in the period in
which they are incurred.
Depreciation of property, plant and equipment is calculated by allocating the
depreciable amount of the asset systematically over its estimated useful life
or the remaining life of mine ("LOM"), field or lease. The depreciable amount
represents the acquisition cost less residual value. The Group determines
depreciation expense separately for each component, whether physical or
non-physical, including costs related to major overhauls of property, plant
and equipment that are significant in relation to the total cost of the asset
and have a useful life different from the remainder of the asset. Depreciation
commences when the asset is available for use.
The principal categories of property, plant and equipment are depreciated
either on a units of production ("UOP") basis or on a straight-line basis over
their useful lives 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 residual value, useful life and depreciation method of
property, plant and equipment at each reporting date. Changes to the
originally established criteria are recognised as changes in accounting
estimates.
In particular, the Group considers the impact of health, safety and
environmental legislation in assessing expected useful lives and estimated
residual values. The Group also considers climate-related matters, including
physical and transition risks. Specifically, the Group assesses whether
climate-related legislation and regulation could affect useful lives or
residual values, for example by prohibiting or restricting the use of fossil
fuel-powered machinery or imposing additional energy efficiency requirements
on buildings and offices.
The Group assesses impairment losses and reversals of impairment losses of
property, plant and equipment in accordance with the criteria set out in Note
2.12 Impairment of non-financial assets.
Property, plant and equipment is derecognised upon disposal or when no future
economic benefits are expected from its use or disposal. The disposal date is
the date on which the buyer obtains control of the asset in accordance with
the accounting policy for Revenue from contracts with customers. The
consideration received and any subsequent changes thereto are determined in
accordance with that revenue policy. Gains and losses on disposal are
recognised within "Other income" in the consolidated income statement.
a) Mining rights
Ore Reserves and Mineral Resources that can be reliably measured are
recognised at fair value at the acquisition date of the business in accordance
with Note 2.4 Business combinations. Mining rights whose fair value cannot be
measured reliably are not recognised.
Exploitable mining rights are depreciated using the UOP method over
commercially recoverable Ore Reserves and, in certain circumstances, over
additional Mineral Resources. Mineral Resources are included in depreciation
calculations when there is a high degree of confidence that they will be
economically extracted.
b) Deferred mining costs: stripping costs
These primarily comprise certain capitalised costs relating to stripping
activities in both the pre-production and production phases, as described
below.
Stripping costs incurred during the development phase of a mine (or pit) prior
to the commencement of production are capitalised as part of the cost of
constructing the mine (or pit) and subsequently depreciated over the life of
mine on a UOP basis.
Production stripping costs that relate to improving access to an identifiable
component of the ore body, and that provide future economic benefits through
improved access to ore to be mined in future periods (stripping activity
asset), are capitalised within deferred mining costs provided that all of 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 improved
access can be measured reliably.
If all criteria are not met, production stripping costs are expensed as
incurred.
The stripping activity asset is initially measured at cost, being the
accumulation of costs directly incurred to perform the stripping activity that
improves access to the identified ore component, together with an allocation
of directly attributable overheads in accordance with the principles used to
determine the cost of inventories.
c) Exploration expenditure
In accordance with the Group's accounting policy, exploration expenditure is
not capitalised until management determines that the project has entered the
development phase and that construction of the related mining or
infrastructure asset will commence. This does not refer to real estate
property, but to the development of a mining asset or associated
infrastructure in accordance with IAS 16 and IFRS 6. Capitalisation only
occurs once a high degree of confidence exists in the technical and economic
viability of the project and it is considered probable that future economic
benefits will flow to the Group.
The development decision is taken based on the economic prospects of the
project, including future metal prices, Ore Reserves and Mineral Resources,
and estimated operating and capital costs.
Subsequent recovery of the resulting carrying amount depends on the successful
development or sale of the undeveloped project. If a project is determined to
be non-viable, all irrecoverable costs associated with the project, net of any
related impairment provisions, are recognised in the consolidated income
statement.
d) Assets under construction
All subsequent expenditure incurred in the construction, installation or
completion of infrastructure facilities, including processing plants and other
works necessary for mining operations, is capitalised under "Assets under
construction". Costs incurred in testing assets to determine whether they are
functioning as intended are capitalised.
In accordance with IAS 16, revenue from the sale of any products produced
during the testing phase is recognised as revenue in the consolidated income
statement, and the related production costs are recognised in accordance with
IAS 2 Inventories. Such revenue is not offset against the cost of assets under
construction.
Development expenditure, including investment in intangible assets, is
capitalised when the following criteria are met:
The costs are directly attributable to the preparation of the asset; and
The technical and commercial feasibility of the project has been demonstrated,
and it is probable that the expenditure will generate future economic
benefits, based on an economic evaluation of the project that considers market
conditions, resource estimates, expected operating and capital costs and
management's strategic intent.
Costs incurred before technical and commercial feasibility has been
demonstrated, or those relating to general research activities, are expensed
as incurred.
Assets under construction are transferred to the appropriate asset categories
when they are substantially completed and ready for their intended productive
use. Depreciation commences at that date.
e) Borrowing costs
The Group capitalises borrowing costs that are directly attributable to the
acquisition, construction or production of qualifying assets as part of the
cost of those assets. Qualifying assets are those that necessarily take a
substantial period of time to get ready for their intended use or sale.
To the extent that funds are borrowed specifically for the purpose of
obtaining a qualifying asset, the amount of borrowing costs eligible for
capitalisation is determined based on the actual borrowing costs incurred
during the period, less any investment income earned on the temporary
investment of those funds. Borrowings obtained specifically for a qualifying
asset are treated as general borrowings once substantially all the activities
necessary to prepare the asset for its intended use or sale have been
completed.
The amount of borrowing costs capitalised in respect of general borrowings is
determined by applying a weighted average capitalisation rate to the
expenditure on qualifying assets, without exceeding the total borrowing costs
incurred during the period.
Capitalisation of borrowing costs commences when expenditure for the asset is
incurred, borrowing costs are incurred and activities necessary to prepare the
asset (or part thereof) for its intended use or sale are in progress.
Capitalisation ceases when substantially all the activities necessary to
prepare the asset (or part thereof) for its intended use or sale have been
completed.
Capitalisation of borrowing costs is suspended during extended periods in
which development activities are interrupted, unless such temporary delay is
necessary to bring the asset into a condition suitable for its intended use or
sale.
2.10 Leases
The Group has lease contracts for various items of laboratory equipment, motor
vehicles, land and buildings used in its operations. Leases of laboratory
equipment and motor vehicles generally have lease terms of four years, while
land and buildings generally have lease terms over the life of the mine. The
Group's obligations under its lease contracts are secured by the lessor's
title to the leased assets. In general, the Group is restricted from assigning
and subleasing the leased assets.
At inception of a contract, the Group assesses whether a contract is, or
contains, a lease. That is, whether 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.
At the commencement date, the Group recognises a right of use asset and a
lease liability. The right of use asset comprises the amount of the lease
liability, any lease payments made at or before the commencement date less any
lease incentives received, any initial direct costs incurred and an estimate
of dismantling or restoration costs to be incurred, as set out in the
accounting policy on provisions.
The Group measures the lease liability at the present value of the lease
payments that are unpaid at the commencement date. The lease payments are
discounted using the appropriate incremental borrowing rate, unless the
interest rate implicit in the lease can be reliably determined.
Outstanding lease payments comprise fixed payments, less any incentives
receivable, variable payments that depend on an index or rate, initially
measured using the index or rate at the commencement date, amounts expected to
be payable under residual value guarantees, the exercise price of a purchase
option if exercise is reasonably certain and payments of penalties for
terminating the lease, if the lease term reflects the exercise of the
termination option.
The Group measures right of use assets at cost, less accumulated depreciation
and accumulated impairment losses, adjusted for any remeasurement of the lease
liability.
- If the contract transfers ownership of the asset to the Group at the
end of the lease term or the right of use asset includes the exercise price of
a purchase option, depreciation is charged in accordance with the criteria set
out for property, plant and equipment from the commencement date to the end of
the useful life of the asset. Otherwise, the Group depreciates the right of
use asset from the commencement date to the earlier of the end of the useful
life of the right of use asset or the end of the lease term.
- The Group applies the impairment criteria for non current assets set
out in section 2.12 to right of use assets.
- The lease liability is increased by the finance cost accrued, reduced
by lease payments made and remeasured to reflect any lease modifications or
revisions to in substance fixed payments.
- Variable lease payments not included in the initial measurement of the
lease liability are recognised in profit or loss in the period in which the
events or conditions that trigger those payments occur.
- Remeasurements of the lease liability are recognised as an adjustment
to the right of use asset, until it is reduced to zero and thereafter in
profit or loss.
- The Group remeasures the lease liability by discounting the revised
lease payments using a revised discount rate if there is a change in the lease
term or a change in the assessment of whether a purchase option will be
exercised.
- The Group remeasures the lease liability if there is a change in the
amounts expected to be payable under a residual value guarantee or a change in
the index or rate used to determine lease payments, including a change to
reflect revisions to market rents once such revisions take effect.
The Group accounts for the full or partial derecognition of a lease liability
in accordance with the criteria applicable to the derecognition of financial
liabilities.
A reassessment after the commencement date is made only if one of the
following conditions applies:
a) There is a change in the contractual terms, other than a renewal or
extension of the agreement.
b) A renewal option is exercised, or an extension is granted, unless the term
of the renewal or extension was initially included in the lease term.
c) There is a change in the assessment of whether fulfilment depends on a
specified asset.
d) There is a substantial change in the asset.
The Group accounts for a lease modification as a separate lease if the scope
of the lease increases by adding one or more rights of use and the
consideration for the lease increases by an amount commensurate with the stand
alone price for the increase in scope and any appropriate adjustments to that
stand alone price to reflect the particular circumstances of the contract.
If the modification does not result in a separate lease, at the effective date
of the modification the Group allocates the consideration to the modified
contract as described above, redetermines the lease term and remeasures the
lease liability by discounting the revised lease payments using a revised
discount rate. The Group decreases the carrying amount of the right of use
asset to reflect the partial or full termination of the lease in modifications
that decrease the scope of the lease and recognises any gain or loss in profit
or loss. For all other modifications, the Group makes a corresponding
adjustment to the carrying amount of the right of use asset.
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, that is, leases with a lease term of 12
months or less from the commencement date and that do not contain a purchase
option. It also applies the low value asset recognition exemption to leases of
office equipment that are considered to be of low value, that is, below
€5,000. Lease payments on short term leases and leases of low value assets
are recognised as an expense on a straight line basis over the lease term.
2.11 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 these permits are capitalised as intangible
assets, provided that they meet the recognition criteria set out in IAS 38 -
Intangible Assets. These costs generally include application fees,
environmental and engineering studies, legal fees and other necessary
expenditure incurred to obtain the permits.
No amortisation is recognised in respect of these intangible assets until the
associated project enters the commercial production phase. Once the required
permits have been obtained and production commences, the capitalised permit
costs are amortised using the units of production ("UOP") method, based on the
commercially recoverable Ore Reserves of the related mining project.
If at any time it is determined that a permit will not be utilised due to
project suspension or regulatory changes, the capitalised costs are
immediately impaired and recognised as an expense in the consolidated income
statement. The Group periodically assesses the status of each project. If a
subsequent evaluation determines that the circumstances that gave rise to the
impairment have ceased to exist or have been reasonably mitigated, the Group
reverses the previously recognised impairment loss.
b) Other intangible assets, including computer software
Intangible assets are presented in the consolidated statement of financial
position at cost less accumulated amortisation and accumulated impairment
losses. The cost of intangible assets acquired in a business combination is
their fair value at the acquisition date, provided that they meet the
recognition criteria set out in IFRS 3.
The Group assesses, for each acquired intangible asset, whether its useful
life is finite or indefinite. An intangible asset is considered to have an
indefinite useful life when there is no foreseeable limit to the period over
which it is expected to generate net cash inflows.
Amortisation of intangible assets with finite useful lives is calculated by
allocating the depreciable amount systematically over their estimated useful
lives as follows:
Administrative concessions UOP
Mining rights UOP
Development costs Straight-line, over the estimated useful life of the project, not exceeding 5
years
Licences and trademarks Straight-line, 2 to 10 years
Computer software Straight-line at an annual rate of 15%
Other intangible assets Straight-line, 3 to 10 years
For this purpose, the depreciable amount represents the acquisition cost or
deemed cost less residual value.
Intangible assets with indefinite useful lives are not amortised but are
tested annually for impairment, or more frequently if indicators of impairment
exist.
The Group reviews the residual value, useful life and amortisation method of
intangible assets at each reporting date. Changes to the originally
established estimates are accounted for as changes in accounting estimates.
The Group assesses and recognises impairment losses and reversals of
impairment losses on intangible assets in accordance with the criteria set out
in Note 2.12.
An intangible asset is derecognised upon disposal or when no future economic
benefits are expected from its use or disposal. The disposal date is the date
on which the buyer obtains control of the asset in accordance with the
accounting policy for Revenue from contracts with customers. The consideration
received on disposal and any subsequent adjustments thereto are determined in
accordance with that policy.
c) Contingent liabilities in the acquisition of intangible assets
The Group has adopted the approach set out in IFRIC 1 for contingent payments
related to the acquisition of assets. When acquiring intangible assets subject
to contingent payments dependent on future events, such as in the case of the
Touro, Masa Valverde and Ossa Morena projects (see Note 1), the Group assesses
whether such 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
rights acquired and a corresponding liability based on the best estimate of
the expected future payment, including any 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 in which it is
incurred.
Subsequent changes in the estimated liability resulting from revisions to
assumptions, project viability or economic factors are recognised as an
adjustment to the carrying amount of the intangible asset. If, at a later
stage, uncertainty arises regarding 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
carrying amount of the asset.
Where intangible assets include non-controlling interests, the Group allocates
the corresponding portion of the asset to non-controlling shareholders,
ensuring that valuation adjustments to contingent liabilities are
appropriately reflected. This policy is applied consistently across all
projects to ensure compliance with IFRS and alignment with industry practice.
2.12 Impairment of non financial assets
Assets that have an indefinite useful life (for example, goodwill or
intangible assets not yet available 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 in profit or loss when the carrying amount of
an asset exceeds its recoverable amount. The recoverable amount of an asset is
the higher of its fair value less costs of disposal and its value in use.
Value in use is determined based on the expected future cash flows to be
derived from the use of the asset, expectations about possible variations in
the amount or timing of those cash flows, the time value of money, the price
for bearing the uncertainty inherent in the asset and other factors that
market participants would consider in assessing the future cash flows related
to the asset. The Group assesses whether climate related risks, including
physical risks and transition risks, could have a significant impact on the
value in use of assets.
The recoverable amount is determined for an individual asset unless the asset
does not generate cash inflows that are largely independent of those from
other assets or groups of assets. In such cases, the recoverable amount is
determined for the Cash Generating Unit (CGU) to which the asset belongs.
When testing a CGU for impairment, the Group identifies the common assets
related to it. If a portion of the common assets can be allocated to the CGU
on a reasonable and consistent basis, the Group compares the carrying amount
of the CGU, including the allocated common assets, with its recoverable amount
and recognises any impairment loss at the CGU level. If the Group cannot
allocate a portion of the common assets to the CGU on a reasonable and
consistent basis, it compares the carrying amount of the CGU, excluding the
common assets, with its recoverable amount and recognises any impairment loss
at the CGU level. The Group then identifies the smallest group of CGUs to
which the carrying amount of the common assets can be allocated on a
reasonable and consistent basis and compares the carrying amount of that group
of CGUs, including the common assets, with its recoverable amount and
recognises any impairment loss at the level of that group of CGUs.
Impairment losses relating to a CGU are allocated first to reduce, where
applicable, the carrying amount of any goodwill allocated to the CGU and then
to the other assets of the CGU on a pro rata basis according to the carrying
amount of each asset, subject to the limit that the carrying amount of each
asset is not reduced below the highest of its fair value less costs of
disposal, its value in use and zero.
At each reporting date, the Group assesses whether there is any indication
that an impairment loss recognised in prior periods may no longer exist or may
have decreased. Impairment losses relating to goodwill are not reversible.
Impairment losses for other assets are reversed only if there has been a
change in the estimates used to determine the asset's recoverable amount.
A reversal of an impairment loss is recognised in profit or loss. However, the
increased carrying amount of an asset attributable to a reversal of an
impairment loss shall not exceed the carrying amount that would have been
determined, net of amortisation, had no impairment loss been recognised.
The reversal of an impairment loss for a CGU is allocated to the assets of the
CGU, except for goodwill, on a pro rata basis according to the carrying amount
of those assets, subject to the limit that the carrying amount of each asset
does not exceed the lower of its recoverable amount and the carrying amount
that would have been determined, net of amortisation, had no impairment loss
been recognised.
2.13 Financial instruments
a) Recognition and classification of financial instruments
Financial instruments are classified on initial recognition as a financial
asset, a financial liability or an equity instrument, in accordance with the
substance of the contractual arrangement and the definitions of a financial
asset, financial liability or equity instrument set out in IAS 32 Financial
Instruments: Presentation.
Financial instruments are recognised when the Group becomes a party to the
contractual provisions of the instrument.
For measurement purposes, the Group classifies financial instruments into the
following categories:
- financial assets and liabilities at fair value through profit or loss,
distinguishing those designated on initial recognition from those held for
trading or mandatorily measured at fair value through profit or loss;
- financial assets and liabilities measured at amortised cost; and
- financial assets measured at fair value through other comprehensive
income, distinguishing equity instruments designated as such from other
financial assets.
The Group classifies financial assets, other than those designated at fair
value through profit or loss and equity instruments designated at fair value
through other comprehensive income, based on the business model and the
characteristics of the contractual cash flows. Financial liabilities are
classified as measured at amortised cost, except for those designated at fair
value through profit or loss and those held for trading.
A financial asset or liability is classified as held for trading if:
• it is acquired or incurred principally for the purpose of selling or
repurchasing it in the near term;
• on initial recognition it is part of a portfolio of identified financial
instruments that are managed together and for which there is evidence of a
recent actual pattern of short term profit taking;
• it is a derivative, except for a derivative designated as a hedging
instrument that meets the conditions for hedge effectiveness and a derivative
that is a financial guarantee contract; or
• it is an obligation to deliver financial assets borrowed that are not
owned.
A financial asset is classified at amortised cost if it is held within a
business model whose objective is to hold financial assets in order to collect
contractual cash flows and the contractual terms of the financial asset give
rise, on specified dates, to cash flows that are solely payments of principal
and interest on the principal amount outstanding (SPPI).
Contractual cash flows that are SPPI are consistent with a basic lending
arrangement. In a basic lending arrangement, interest typically consists of
consideration for the time value of money and credit risk. However, in such an
arrangement, interest may also include consideration for other risks, such as
liquidity risk, and costs, such as administrative costs associated with
holding the financial asset for a particular period. In addition, interest may
include a profit margin consistent with a basic lending arrangement.
A financial asset is classified at fair value through other comprehensive
income if it is held within a business model whose objective is achieved both
by collecting contractual cash flows and by selling financial assets and the
contractual terms of the financial asset give rise, on specified dates, to
cash flows that are SPPI.
The Group has designated its investments in listed equity instruments as
financial assets measured at fair value through other comprehensive income.
All other financial assets are classified at fair value through profit or
loss.
Financial assets and liabilities arising from contingent consideration in a
business combination are classified as financial assets and liabilities at
fair value through profit or loss.
Other financial liabilities, except for financial guarantee contracts, loan
commitments at below market interest rates and financial liabilities arising
from a transfer of financial assets that does not qualify for derecognition or
that is accounted for using the continuing involvement approach, are
classified as financial liabilities at amortised cost.
A financial asset and a financial liability are offset only when the Group has
a currently enforceable legal right to set off the recognised amounts and
intends either to settle on a net basis or to realise the asset and settle the
liability simultaneously. The legal right must not be contingent on a future
event and must be legally enforceable in the normal course of business, in the
event of insolvency or in the event of judicially declared liquidation and in
the event of default.
The Group reclassifies financial assets when it changes its business model for
managing those assets. Financial liabilities are not reclassified.
b) Financial assets and liabilities at amortised cost
Financial assets and liabilities at amortised cost are initially recognised at
fair value, plus or minus transaction costs incurred, and are subsequently
measured at amortised cost using the effective interest method.
c) Financial assets and liabilities at fair value through other comprehensive
income
Financial assets at fair value through other comprehensive income are
initially recognised at fair value plus directly attributable transaction
costs.
Subsequent to initial recognition, financial assets in this category are
measured at fair value, with gains or losses recognised in other comprehensive
income, except for foreign exchange gains and losses as described in section
2.8 and expected credit losses. Amounts recognised in other comprehensive
income are reclassified to profit or loss on derecognition of the financial
assets. However, interest calculated using the effective interest method is
recognised in profit or loss.
As indicated above, the Group has designated certain equity instruments as
measured at fair value through other comprehensive income. Subsequent to
initial recognition, these equity instruments are measured at fair value, with
gains or losses recognised in other comprehensive income. Amounts recognised
in other comprehensive income are not reclassified to profit or loss, although
they may be transferred to reserves on derecognition of the instruments.
Dividends are recognised as set out in section h) of this note.
d) Financial assets and liabilities at fair value through profit or loss
Financial assets and liabilities at fair value through profit or loss are
initially recognised at fair value. Directly attributable transaction costs
are recognised in profit or loss as incurred.
Subsequent to initial recognition, they are measured at fair value, with
changes recognised in profit or loss. Changes in fair value include the
interest and dividend components. Fair value is not reduced by transaction
costs that may be incurred on sale or other disposal.
However, for financial liabilities designated at fair value through profit or
loss, changes in fair value attributable to the entity's own credit risk are
recognised in other comprehensive income. Amounts recognised in other
comprehensive income are not subsequently reclassified to the consolidated
income statement.
In accordance with IFRS 9, where the Group holds a hybrid contract containing
a non-derivative host that is a financial asset within the scope of IFRS 9,
the hybrid instrument is assessed in its entirety for classification purposes.
Embedded derivatives are not separated from the host contract in such cases.
Where the contractual cash flows of the hybrid instrument do not represent
solely payments of principal and interest on the principal amount outstanding,
the instrument is classified and measured at fair value through profit or
loss.
Convertible instruments held by the Group are assessed under this framework.
Where the conversion feature results in cash flows that do not meet the solely
payments of principal and interest criterion, the instrument is measured at
fair value through profit or loss.
e) Financial assets measured at cost
Investments in equity instruments for which there is insufficient information
to measure fair value, or where there is a wide range of possible fair value
measurements, and derivatives linked to such investments that must be settled
by delivery of those investments, are measured at cost. However, if at any
time the Group is able to obtain a reliable measurement of fair value, the
asset or contract is measured at fair value, with gains or losses recognised
in profit or loss or in other comprehensive income if the instrument is
designated at fair value through other comprehensive income.
f) Derecognition and modification 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.
In transactions in which a financial asset is derecognised in its entirety,
any financial assets obtained or financial liabilities incurred, including
liabilities relating to servicing arrangements, are recognised at fair value.
Derecognition of a financial asset in its entirety results in the recognition
in profit or loss of the difference between its carrying amount and the sum of
the consideration received, net of transaction costs, including any assets
obtained or liabilities assumed and any cumulative gain or loss previously
recognised in other comprehensive income, except for equity instruments
designated at fair value through other comprehensive income.
If the Group modifies the contractual cash flows of a financial asset without
resulting in derecognition, the carrying amount is recalculated as the present
value of the modified cash flows discounted at the original effective interest
rate or the original credit adjusted effective interest rate, with any
difference recognised in profit or loss. Fees and costs charged by the Group
adjust the carrying amount of the financial asset and are amortised over the
remaining term of the modified financial asset.
g) Impairment of financial assets
The Group recognises in profit or loss a loss allowance for expected credit
losses on financial assets measured at amortised cost and at fair value
through other comprehensive income.
For financial assets measured at fair value through other comprehensive
income, the expected credit loss is recognised in other comprehensive income
and does not reduce the carrying amount of the assets.
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. Expected cash flows include cash flows from the sale
of collateral or other credit enhancements that are integral to the
contractual terms.
The Group's trade receivables mainly arise from sales of copper concentrate to
large international commodity trading companies. Based on historical
experience and the creditworthiness of counterparties, expected credit losses
are considered immaterial.
For receivables (other than trade receivables measured at fair value through
profit or loss), the Group applies the simplified approach permitted by IFRS
9, which requires lifetime expected credit losses to be recognised from
initial recognition of the receivables.
At each reporting date, the Group measures the loss allowance at an amount
equal to 12 month expected credit losses for financial assets for which credit
risk has not increased significantly since initial recognition or where the
Group determines that the credit risk of a financial asset has not increased
significantly.
The Group considers a financial asset to be 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 it is unlikely that the Group will receive the
outstanding contractual amounts in full before taking into account any credit
enhancements held.
The Group considers cash and cash equivalents to have low credit risk based on
the credit ratings of the financial institutions with which the cash or
deposits are held.
A financial asset is written off when there is no reasonable expectation of
recovering the contractual cash flows, which generally occurs when collection
is more than one year past due and there is no enforceable collateral.
h) Interest and dividends
Interest income is recognised using the effective interest method, which is
the rate that exactly discounts estimated future cash receipts through the
expected life of the financial instrument to the carrying amount of the
instrument, based on its contractual terms and without considering expected
credit losses.
Dividend income from investments in equity instruments is recognised in profit
or loss when the Group's right to receive payment is established, it is
probable that the economic benefits will flow to the Group and the amount can
be measured reliably.
Dividends on equity instruments classified at fair value through other
comprehensive income are recognised in profit or loss unless they clearly
represent a recovery of part of the cost of the investment, in which case they
are recognised in other comprehensive income.
i) Derecognition and modification of financial liabilities
The Group derecognises a financial liability, or part of it, when the
obligation specified in the liability is discharged or is legally released,
either by a judicial process or by the creditor.
An exchange of debt instruments between the Group and a counterparty, or
substantial modifications of the terms of an existing financial liability, is
accounted for as an extinguishment of the original financial liability and the
recognition of a new financial liability where the terms are substantially
different.
The Group considers the terms to be substantially different if the present
value of the cash flows under the new terms, including any fees paid net of
any fees received, discounted using the original effective interest rate,
differs by at least 10 per cent from the present value of the remaining cash
flows of the original financial liability. For this purpose, only fees paid or
received between the borrower and the lender are considered, including fees
paid or received by either party on behalf of the other.
If the exchange is accounted for as an extinguishment of the original
financial liability, any costs or fees are recognised in profit or loss as
part of the gain or loss on extinguishment. Otherwise, the modified cash flows
are discounted using the original effective interest rate, with any difference
from the previous carrying amount recognised in profit or loss. Fees and costs
adjust the carrying amount of the financial liability and are amortised using
the amortised cost method over the remaining term of the modified liability.
The Group recognises in profit or loss the difference between the carrying
amount of a financial liability, or part of it, extinguished or transferred to
a third party and the consideration paid, including any non cash assets
transferred or liabilities assumed.
2.14 Contracts for the purchase or sale of non financial assets
The Group enters into forward contracts for the purchase or sale of
inventories in accordance with its production requirements and others for
trading purposes. At inception and on an ongoing basis, the Group assesses
whether such contracts should be recognised as derivative financial
instruments. For this purpose, the Group maintains separate records of
contracts that meet the conditions not to be classified as derivative
financial instruments and those that must be considered as held for trading.
The Group treats as own use contracts those contracts for the purchase or sale
of a non financial item that were entered into and continue to be held for the
purpose of receipt or delivery in accordance with the entity's expected
purchase, sale or usage requirements.
Transaction costs relating to contracts classified as own use contracts are
recognised in accordance with the general criteria applicable to costs related
to purchase and sale transactions.
The Group enters into contracts relating to nature dependent electricity.
Contracts relating to nature dependent electricity are contracts that expose
the entity to variability in the underlying volume of electricity because the
source of its generation depends on uncontrollable natural conditions (for
example, weather conditions). Contracts relating to nature dependent
electricity include both contracts for the purchase or sale of such
electricity and financial instruments based on that electricity.
Certain contracts relating to nature dependent electricity require the Group
to purchase and take delivery of electricity as it is generated. Such
contractual features expose the Group to the risk of being required to
purchase electricity during a supply period in which it cannot use that
electricity. In practice, the Group may also be unable to avoid selling unused
electricity because the design and operation of the electricity market in
which the electricity is traded under the contract require unused electricity
to be sold within a specified period.
In applying the above requirements, such sales are not necessarily
inconsistent with holding a contract in accordance with the Group's expected
usage requirements. The Group is considered to have entered into and to hold
such a contract in accordance with its expected electricity usage requirements
if it has been, and is expected to be, a net purchaser of electricity over the
term of the contract. The Group is a net purchaser of electricity if it
purchases sufficient electricity to offset sales of unused electricity in the
same market in which those sales occur.
In determining whether it is a net purchaser of electricity, the Group
considers reasonable and supportable information that is available without
undue cost or effort regarding its past, current and expected electricity
transactions over a reasonable period. In determining what constitutes a
reasonable period, the Group considers the variability in the volume of
electricity expected to be generated due to the seasonal cycle of natural
conditions and the variability in its own electricity demand due to its
operating cycle. For the purpose of determining whether the Group has been a
net purchaser, the reasonable period does not exceed twelve months.
2.15 Inventories
The Group's inventories comprise copper concentrates, ore stockpiles and metal
in circuit, materials and supplies and spare parts. Inventory is physically
measured or estimated and is stated at the lower of cost and net realisable
value.
Cost of purchase includes the amount invoiced by the supplier after deducting
any discounts, rebates or similar items, as well as interest incorporated in
the nominal amount of payables and any additional costs incurred until the
goods are in their location for sale, other costs directly attributable to the
acquisition and non recoverable indirect taxes.
Cost of production comprises the purchase cost of raw materials and other
consumables and costs directly related to the units produced, together with a
systematic allocation of variable and fixed production overheads incurred in
the process of conversion, including depreciation. Fixed production overheads
are allocated based on normal production capacity or actual production,
whichever is higher. Identifiable conversion costs for each metal are
specifically allocated.
The cost of raw materials and other supplies and the cost of production are
assigned to the individual items of inventory using the FIFO method. The Group
uses the same cost formula for all inventories having a similar nature and use
within the Group.
The cost of inventories is written down to profit or loss where their cost
exceeds their net realisable value. For this purpose, net realisable value is
defined as follows:
• Raw materials and other supplies: replacement cost. However, no write down
is made where the finished products into which the raw materials and other
supplies will be incorporated are expected to be sold at or above their cost
of production.
• Finished goods: estimated selling price less the costs necessary to make
the sale.
• Work in progress: estimated selling price of the related finished goods
less the estimated costs to complete production and the costs necessary to
make the sale. Where the time value of money is material, these future prices
and completion costs are discounted.
A previously recognised write down is reversed through profit or loss if the
circumstances that caused the write down no longer exist or where there is
clear evidence of an increase in net realisable value as a result of a change
in economic circumstances. The reversal of a write down is limited to the
lower of the cost and the revised net realisable value of the inventories.
2.16 Cash and cash equivalents
Cash and cash equivalents include cash on hand and demand deposits with credit
institutions. This category also includes other short term highly liquid
investments that are readily convertible into known amounts of cash and are
subject to an insignificant risk of changes in value. For this purpose,
investments with maturities of less than three months from the date of
acquisition are included.
2.17 Share capital and dividend distribution
The Parent recognises share capital increases and reductions in equity when
the shares have been issued and subscribed.
Ordinary shares are classified as equity. The difference between the fair
value of the consideration received by the Parent and the nominal value of the
share capital issued is recognised in the share premium account.
Incremental costs directly attributable to the issue of new ordinary shares
are recognised in equity as a deduction, net of tax, from the proceeds in the
share premium account.
Dividends of a discretionary nature, whether paid in cash or in kind, are
recognised as a reduction in equity when they are approved by the General
Meeting of Shareholders.
2.18 Provisions
Provisions are recognised when the Group has a present obligation, whether
legal or constructive, as a result of a past event; it is probable that an
outflow of resources embodying future economic benefits will be required to
settle the obligation; and a reliable estimate can be made of the amount of
the obligation.
The amounts recognised in the consolidated statement of financial position
represent the best estimate at the reporting date of the expenditure required
to settle the present obligation, taking into account the risks and
uncertainties surrounding the provision and, where material, the financial
effect of discounting, provided that the amounts to be paid in each period can
be reliably determined. The discount rate is determined on a pre tax basis,
taking into account the time value of money and the specific risks not
reflected in the future cash flows relating to the provision at each reporting
date.
Individual obligations are measured at the most likely individual outcome.
Where the obligation involves a large population of homogeneous items, it is
measured by weighting all possible outcomes by their associated probabilities.
Where there is a continuous range of possible outcomes and each point in that
range is as likely as any other, the obligation is measured at the mid point
of the range.
The unwinding of the discount on provisions is recognised as a finance cost in
profit or loss.
Provisions do not include tax effects or expected gains from the disposal or
abandonment of assets.
Reimbursement rights receivable from third parties to settle the provision are
recognised as a separate asset when recovery is virtually certain. The related
income from reimbursement is recognised in profit or loss as a reduction of
the expense relating to the provision, limited to the amount of the provision.
Provisions are reversed through profit or loss when it is no longer probable
that an outflow of resources will be required to settle the obligation. The
reversal is recognised in the same line item in which the related expense was
originally recorded and any excess is recognised in other income.
Provision for dismantling, restoration and similar obligations
The Group recognises the present value of the estimated costs of legal or
constructive obligations to restore operating sites in the period in which the
obligation arises. These restoration activities include the dismantling and
removal of structures, rehabilitation of mines and tailings dams,
decommissioning of operating facilities, closure of plants and waste sites,
and the restoration, remediation and revegetation of affected areas.
The obligation generally arises when the asset is installed or the land or
environment at the production site is disturbed. When the provision is
initially recognised, the present value of the estimated restoration cost is
capitalised as part of the cost of the related mining assets to the extent
that the obligation has been incurred before production of the related ore
commences.
Changes in the provision arising from revisions to the estimated amount,
timing of cash flows or discount rate increase or decrease the cost of the
asset, limited to its carrying amount, with any excess recognised in profit or
loss. The Group assesses whether an increase in the carrying amount of
property, plant and equipment is an indication of impairment. For closed
sites, changes in estimated costs are recognised immediately in the
consolidated income statement. Similarly, the unwinding of the discount on the
provision is recognised as a finance cost in profit or loss.
Changes in the amount of the provision arising after the end of the useful
life of the asset are recognised in profit or loss as they occur.
The Group reviews its mine rehabilitation provision annually, which involves
the use of significant estimates, including estimates of the scope and cost of
rehabilitation activities, technological changes, regulatory changes and
changes in discount rates. The Group also considers the impact of climate
related matters, such as changes in environmental regulations and other
relevant laws, when estimating the rehabilitation provision. These factors may
result in future required outflows differing from the amounts provided. The
amounts recognised in the consolidated statement of financial position
represent the best estimate at the reporting date.
2.19 Income tax
Income tax expense or income comprises both current tax and deferred tax.
Current tax is the amount payable or recoverable in respect of the
consolidated taxable profit or loss for the year. Current income tax assets or
liabilities are measured at the amounts expected to be paid to or recovered
from the tax authorities, using tax laws and rates that have been enacted or
substantively enacted at the reporting date.
Deferred tax liabilities are the amounts of income tax payable in future
periods in respect of taxable temporary differences, while deferred tax assets
are the amounts of income tax recoverable in future periods arising from
deductible temporary differences, unused tax losses or unused tax credits. A
temporary difference is the difference between the carrying amount of an asset
or liability and its tax base.
Income tax is recognised in profit or loss unless it arises from a transaction
or economic event recognised, in the same or a different period, directly in
equity or from a business combination.
The Group recognises deferred tax liabilities in all cases except where:
- they arise from the initial recognition of goodwill or from the
initial recognition of an asset or liability in a transaction that is not a
business combination and, at the time of the transaction, affects neither
accounting profit nor taxable profit and does not give rise to equal taxable
and deductible temporary differences;
- they relate to temporary differences associated with investments in
subsidiaries, associates and joint ventures over which the Group is able to
control the timing of the reversal and it is probable that the temporary
difference will not reverse in the foreseeable future.
The Group recognises deferred tax assets provided that:
- it is probable that sufficient future taxable profits will be
available against which they can be utilised or where tax legislation provides
for the future conversion of deferred tax assets into a receivable from the
tax authorities. However, deferred tax assets arising from the initial
recognition of assets or liabilities in a transaction that is not a business
combination and, at the time of the transaction, affects neither accounting
profit nor taxable profit and does not give rise to equal taxable and
deductible temporary differences are not recognised;
- they relate to temporary differences associated with investments in
subsidiaries, associates and joint ventures, to the extent that the temporary
differences are expected to reverse in the foreseeable future and sufficient
future taxable profits are expected to be available against which the
temporary differences can be utilised.
Where, in a transaction that is not a business combination, a deferred tax
asset and a deferred tax liability of the same amount arise on initial
recognition but the deferred tax asset cannot be recognised because it is not
probable that sufficient future taxable profits will be available or different
tax rates apply, the difference is recognised in profit or loss.
The Group considers that sufficient taxable profits will be available to
recover deferred tax assets where there are sufficient taxable temporary
differences relating to the same tax authority and the same taxable entity,
the reversal of which is expected in the same tax period as the reversal of
the deductible temporary differences or in periods in which a tax loss arising
from a deductible temporary difference can be carried back or forward.
In determining future taxable profits, the Group takes into account tax
planning opportunities, provided that it intends to adopt them or it is
probable that it will adopt them.
Deferred tax assets and liabilities are measured using the tax rates expected
to apply in the periods in which the assets are realised or the liabilities
are settled, based on tax laws and rates that have been enacted or
substantively enacted, and taking into account the tax consequences that would
follow from the manner in which the Group expects to recover the assets or
settle the liabilities.
At each reporting date, the Group reviews the carrying amount of deferred tax
assets and reduces that amount to the extent that it is no longer probable
that sufficient future taxable profits will be available to allow the benefit
of all or part of those deferred tax assets to be utilised.
Deferred tax assets that do not meet the above conditions are not recognised
in the consolidated statement of financial position. At the reporting date,
the Group reassesses whether the conditions for recognising previously
unrecognised deferred tax assets are met.
Management periodically evaluates the positions taken in tax returns with
respect to situations in which applicable tax regulations are subject to
interpretation. Where it concludes that it is not probable that the tax
authority will accept an uncertain tax treatment or a group of uncertain tax
treatments, it reflects the effect of the uncertainty in determining taxable
profit or loss, tax bases, unused tax losses, unused tax credits or tax rates.
The Group measures the effect of the uncertainty in income tax using either
the expected value method, where there is a wide range of possible outcomes,
or the most likely amount method, where the outcome is binary or concentrated
on a single value. Where the tax asset or liability determined under these
criteria exceeds the amount presented in the tax returns, it is presented as
current or non current in the consolidated statement of financial position
based on the expected timing of recovery or settlement and includes, where
applicable, the corresponding late payment interest accrued in the
consolidated income statement. The Group accounts for changes in facts and
circumstances relating to tax uncertainties as changes in estimates.
The Group offsets current income tax assets and liabilities only when it has a
legally enforceable right to offset the amounts with the tax authorities and
intends either to settle on a net basis or to realise the assets and settle
the liabilities simultaneously.
The Group offsets deferred tax assets and liabilities only when it has a
legally enforceable right to offset current tax assets and liabilities with
the tax authorities and the deferred tax assets and liabilities relate to
income taxes levied by the same tax authority on the same taxable entity, or
on different taxable entities that intend either to settle current tax assets
and liabilities on a net basis or to realise the assets and settle the
liabilities simultaneously in each future period in which significant amounts
of deferred tax assets or liabilities are expected to be settled or recovered.
Deferred tax assets and liabilities are presented in the consolidated
statement of financial position as non current assets or non current
liabilities, irrespective of the expected timing of their realisation or
settlement.
2.20 Share based employee payments
The Group operates a long-term incentive plan (LTIP 2020) under which share
options have been granted to employees of the Group.
LTIP 2020 - background
Up to and including 2024, options granted under the LTIP 2020 could only be
settled through the issuance of equity instruments of the Parent Company.
Accordingly, these awards were accounted for as equity-settled share-based
payments in accordance with IFRS 2.
The Group's compensation plan establishes the following vesting conditions:
(i) the beneficiary must be an employee providing services to the Group; and
(ii) the beneficiary must remain in continuous employment for a period of
three years. Specific arrangements may exist with senior management and
members of the Board of Directors under which their options remain outstanding
for a longer period (see Note 24).
Equity instruments granted in exchange for services rendered by employees of
the Group are measured by reference to the fair value of the equity
instruments granted using the Black-Scholes valuation model.
When the awards are accounted for as equity-settled share-based payments, the
fair value is determined at the grant date and recognised over the vesting
period without subsequent remeasurement.
Market conditions and other non-vesting conditions, such as
non-transferability, exercise restrictions and expected behavioural patterns,
are considered in measuring the fair value of the instrument. Other vesting
conditions are considered by adjusting the number of equity instruments
included in the measurement of the transaction amount, so that the amount
recognised for services received is ultimately based on the number of equity
instruments that eventually vest.
Accordingly, the Group recognises the amount for services received over the
vesting period based on the best estimate of the number of instruments
expected to vest and revises that estimate to reflect the number of
instruments expected to vest.
Once the services received and the corresponding increase in equity have been
recognised, no further adjustments are made to equity after the vesting date,
without prejudice to any reclassifications within equity.
If the Group withholds equity instruments to settle the employee's income tax
liability with the tax authorities, the plan is treated in its entirety as
equity-settled, except for the portion of the instruments withheld that
exceeds the fair value of the tax obligation.
Under current Spanish tax legislation, share-based employee payments are
deductible for income tax purposes based on the intrinsic value of the share
options at the date they are exercised, giving rise to a deductible temporary
difference equal to the difference between the amount that the tax authorities
will allow as a deduction in the future and the nil carrying amount of the
share-based payments. At the reporting date, the Group estimates the future
tax deduction based on the share price at that date. The amount of the tax
deduction is recognised as current or deferred income tax in profit or loss,
with any excess recognised in equity.
Changes introduced during 2025
During 2025 several changes were introduced in the Group's share-based
compensation arrangements.
In May 2025 the Board of Directors approved an amendment to the LTIP 2020
introducing Rule 6.2.2A, which allows the Board, at its discretion, to settle
the exercise of options granted to non C-Suite employees in cash instead of
issuing equity instruments.
Following this amendment, the Board approved a number of authorisations
allowing the settlement of option exercises in cash for non C-Suite employees:
- On 23 June 2025 the Board authorised cash settlement of option
exercises up to an aggregate amount of €500,000.
- On 11 August 2025 the authorised amount was increased to €1
million.
- On 9 September 2025 the Board approved an additional €2 million,
increasing the total authorised amount for cash settlement to €3 million.
The amount of €3 million represents a maximum aggregate limit approved by
the Board and does not constitute a recurring or annual amount.
During 2025, option exercises by non C-Suite employees were settled in cash,
resulting in total payments of €2.5 million.
In addition, during 2025 the Group granted share awards to members of the
C-Suite. These awards are settled through the issuance of equity instruments
and their vesting is subject to the achievement of market and non-market
performance conditions.
Furthermore, the Group introduced a deferred cash incentive arrangement for
non C-Suite employees under which participants are granted units that are
economically linked to the Company's share price but that are settled
exclusively in cash.
Accounting treatment
Equity-settled share-based payments
Employee payments settled through the issue of equity instruments are
accounted for as follows:
- If the equity instruments granted vest immediately at the grant
date, the services received are recognised in profit or loss with a
corresponding increase in equity.
- If the equity instruments granted vest when employees complete a
specified period of service, the services received are recognised over the
vesting period with a corresponding entry in equity.
Cash-settled share-based payments
Where share-based payment arrangements are settled in cash, a liability is
recognised for the services received.
The liability is measured at fair value at each reporting date and at the date
of settlement, with changes in fair value recognised in profit or loss.
Accordingly, unlike equity-settled share-based payments, the liability
recognised for cash-settled arrangements is remeasured after the grant date
until the awards are settled.
Arrangements with discretionary cash settlement
Share-based payment transactions in which the terms of the arrangement provide
the Group with the option to settle in cash or by issuing equity instruments
are accounted for as cash-settled if the Group has incurred a liability to
settle in cash or as equity-settled if no such liability has been incurred.
Where the Group has the choice of settlement in cash or by issuing equity
instruments, it has a present obligation to settle in cash only if the choice
to settle in equity instruments lacks commercial substance or there is a past
practice or stated policy of settling in cash or the Group generally settles
in cash whenever the employee requests it.
Management assessed the pattern of settlements observed during 2025 together
with the authorisations granted by the Board in relation to cash settlements.
Based on this assessment, the Group concluded that sufficient evidence of a
past practice of cash settlement arose on 9 September 2025, when the Board
approved the increase of the authorised cash settlement limit to €3 million.
Accordingly, from that date the Group recognises a liability for share-based
payments expected to be settled in cash, as management concluded that a
present obligation to settle such awards in cash had arisen based on the
established settlement practice.
The liability is measured at fair value at each reporting date and at the date
of settlement, with changes in fair value recognised in profit or loss.
The remaining portion of the LTIP 2020 relating to members of the C-Suite
continues to be accounted for as equity-settled, as the Group retains the
practical ability to settle those awards through the issuance of equity
instruments.
Deferred Cash Incentive Plan
During 2025 the Group introduced a deferred cash incentive arrangement under
which participants are granted units that are referable to ordinary shares of
the Company but that are settled exclusively in cash. Each unit entitles the
participant, upon vesting and exercise, to receive a cash amount equal to the
excess of the market price of a share over a predetermined exercise price.
These awards are accounted for as cash-settled share-based payments in
accordance with IFRS 2. The liability arising from these arrangements is
measured at fair value at each reporting date, with changes in fair value
recognised in profit or loss.
2.21 Classification of assets and liabilities as current and non current
The Group presents assets and liabilities in the consolidated statement of
financial position based on a current or non current classification. For these
purposes:
(a) An asset is classified as current when:
- It is expected to be realised, or is intended to be sold or
consumed, in the Group's normal operating cycle;
- It is held primarily for trading purposes;
- It is expected to be realised within 12 months after the reporting
date; or
- It is cash or a cash equivalent, unless it cannot be exchanged or
used to settle a liability for at least twelve months after the reporting
date.
(b) A liability is classified as current when:
- It is expected to be settled in the Group's normal operating cycle;
- It is held primarily for trading purposes;
- It is due to be settled within 12 months after the reporting date;
or
- The Group does not have, at the reporting date, a right to defer
settlement of the liability for at least twelve months after the reporting
date.
All other assets and liabilities are classified as non current.
2.22 Revenue recognition from contracts with customers
a) Revenue from contracts with customers
The Group is primarily engaged in the production and sale of copper
concentrate and, in certain cases, provides loading and 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 the Group expects to be entitled in exchange for those
goods or services. The Group considers that it acts as principal in its
contracts with customers because it controls the goods or services before
transferring them to the customer.
b) Sales of copper concentrate (metal concentrate)
In most sales of copper concentrate (metal concentrate), each purchase order
constitutes a separate short term contract. In transactions not executed under
CIF Incoterms, the sole performance obligation is the delivery of the
concentrate. However, a portion of the Group's metal concentrate sales are
executed under CIF Incoterms, under which the Group is also responsible for
providing freight services. In such cases, the freight services represent a
separate performance obligation (see section (c) below).
Most of the Group's metal concentrate sales allow for price adjustments based
on the market price at the end of the relevant quotation period (QP) specified
in the contract. These are referred to as provisional pricing arrangements,
under which the sales price of the metal concentrate is based on prevailing
spot prices at a specified future date after shipment of the goods to the
customer. Adjustments to the sales price arise as a result of fluctuations in
quoted market prices until the end of the QP. The period between provisional
invoicing and the end of the QP may range from one to three months.
Revenue is recognised when control transfers to the customer, which occurs at
the point in time when the metal concentrate is physically transferred to a
vessel, train, conveyor or other delivery mechanism. Revenue is measured at
the amount the Group expects to receive, corresponding to the estimated price
at the end of the QP, that is, the forward price, and a receivable is
recognised to the extent that an unconditional right to consideration arises
at that time. For arrangements subject to CIF shipping terms, a portion of the
transaction price is allocated to the separate freight services provided (see
section (c) below).
Under provisional pricing arrangements, as the receivables are exposed to
commodity price risk, they do not meet the definition of SPPI and are
therefore measured at fair value through profit or loss from initial
recognition until settlement. Changes in fair value, estimated by reference to
quoted forward market prices for copper and taking into account adjustments
for interest rate and credit risk, are recognised in the consolidated income
statement separately from revenue from contracts with customers, within the
line item "Fair value gain/(loss) relating to provisional pricing arrangements
within sales".
Final settlement is based on quantities adjusted as necessary following
customer inspection of the product, as well as applicable commodity prices.
IFRS 15 requires variable consideration to be recognised only to the extent
that it is highly probable that a significant reversal in the amount of
cumulative revenue will not occur. As adjustments relating to final assay
results based on the quantity and quality of concentrate sold are not
significant, they do not constrain revenue recognition.
c) Freight services
As noted above, a portion of the Group's metal concentrate sales are made
under CIF Incoterms, whereby the Group is responsible for providing freight
services (as principal) after the date on which control of the metal
concentrate is transferred to the customer. The Group therefore has a separate
performance obligation for freight services, which are provided solely to
facilitate the sale of the products it produces.
Revenue from freight services is recognised over time as the service is
provided. Accordingly, at the reporting date, a portion of the revenue,
together with the associated insurance costs, is deferred.
Other Incoterms commonly used by the Group include:
- FOB, where the Group has no responsibility for freight or insurance
once the goods have passed the port of loading;
- Ex Works, where control of the goods passes to the customer when
the product is made available at the Group's premises; and
- CIP, where control of the goods passes to the customer when the
product is delivered to the agreed destination.
In arrangements under these Incoterms, the sole performance obligation is the
delivery of the product.
d) Sales of services
The Group provides accounting services, management, technical support,
administrative and other services to other companies. Revenue is recognised
over the period in which the services are rendered.
Contract assets and contract liabilities
Revenue recognised is presented as a contract asset to the extent that the
amount is not yet billable and as a receivable where there is an unconditional
right to consideration. If consideration received from the customer exceeds
the revenue recognised, a contract liability is recognised.
The Group does not have any contract assets, as all rights to consideration
are unconditional.
The Group occasionally recognises contract liabilities in relation to certain
metal concentrate sales made under CIF Incoterms, where a portion of the cash
is received from the customer before the freight services are provided.
2.23 Care and maintenance expenses
Care and maintenance expenses include costs incurred to maintain assets and
infrastructure in an appropriate operational condition during periods of
reduced or suspended activity. These costs may relate to preparatory work for
potential projects, ongoing maintenance of assets that are not currently in
active production or regulatory compliance obligations.
In accordance with IFRS as adopted by the European Union, these expenses are
presented below "Gross profit" in the consolidated income statement because
they are not directly attributable to revenue generating operations. Instead,
they represent period costs incurred while assets are not in active use and
are therefore recognised as an operating expense rather than as part of cost
of sales.
2.24 Segment reporting
An operating segment is a component of the Group that engages in business
activities from which it may earn revenues and incur expenses, whose operating
results are regularly reviewed by the Group's chief operating decision maker,
identified as the CEO, in order to allocate resources to the segment and
assess its performance and for which discrete financial information is
available.
The Group has a single business segment, being mining operations, exploration
and mineral development.
2.25 Earnings per share
The Group presents basic and diluted earnings per share data for its ordinary
shares. Basic earnings per share are calculated by dividing the profit or loss
attributable to ordinary shareholders of the Parent by the weighted average
number of ordinary shares outstanding during the year. Diluted earnings per
share are 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.
2.26 Climate related matters
The Group considers climate related matters in its estimates and assumptions,
where relevant. This assessment includes a wide range of potential impacts on
the Group arising from both physical and transition risks. Although the Group
believes that its business model and products will remain viable following the
transition to a low carbon economy, climate related matters increase the
uncertainty in the estimates and assumptions underlying several items in the
consolidated financial statements. While climate related risks may not
currently have a significant impact on measurement, the Group is closely
monitoring relevant changes and developments, such as new climate related
legislation. The areas and considerations most directly affected by climate
related matters are as follows:
- Useful life of property, plant and equipment. In reviewing residual
values and the 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 investment. Based on the
assessment performed of climate related matters, there has been no impact on
the Group.
- Impairment of non financial assets. Value in use may be affected in
various ways, particularly by transition risk, climate related legislation and
regulations and changes in demand for the Group's products. Based on the
assessment performed of climate related matters, there has been no impact on
the Group.
- In determining the fair value of assets and liabilities, the impact
of potential climate related matters, including legislation, that may affect
them has been considered. Based on the assessment performed of climate related
matters, there has been no impact on the Group.
- Restoration provision. The impact of climate related legislation
and regulations is considered when estimating the timing and future costs of
rehabilitating the Group's facilities. Based on the assessment performed of
climate related matters, there has been no impact on the Group.
2.27 Amendment of the consolidated financial statements after issue
The Board of Directors and the shareholders do not have the right to amend the
consolidated financial statements after they have been issued.
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 2025
Lease liability 4,473 4,793 - 654 - 2,615 1,524
Other financial liabilities 44,346 44,346 1,266 37,374 5,706 - -
Non-current payables 12,506 13,850 - - - 11,850 2,000
Trade and other payables 99,552 99,552 48,065 51,432 55 - -
160,877 162,541 49,331 89,460 5,761 14,465 3,524
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
Financial instruments by category
Financial assets
(Euro 000's) 2025 2024
Financial assets at amortised cost 192,178 132,096
Financial assets at FV through in OCI 62 -
Financial assets at FV through profit or loss 9,725 -
201,965 132,096
Financial liabilities
(Euro 000's) 2025 2024
Financial liabilities at amortised cost 159,004 121,665
The carrying amounts of financial assets recognised in the consolidated
statement of financial position represent the Group's maximum exposure to
credit risk at the reporting date.
(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 2025 and 31 December 2024, categorised by
currency and nature of balance:
(Euro 000's) 2025 2024
USD
Cash and cash equivalents 61,262 15,513
Trade and other receivables 21,254 10,769
82,516 26,282
GBP
Cash and cash equivalents 142 70
CHF
Trade and other receivables 161 -
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 2025 increase/(decrease) Effect on profit before tax for the year ended 31 Dec 2024 increase/(decrease) Effect on equity for the year ended 31 Dec 2025 increase/(decrease) Effect on equity for the year ended 31 Dec 2024 increase/(decrease)
(+5%) 18,890 20,364 15,490 16,698
(-5%) (18,890) (20,364) (15,490) (16,698)
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 although during 2025 Atalaya maintained full
exposure to the copper price.
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 2025 increase/(decrease) Effect on profit before tax for the year ended 31 Dec 2024 increase/(decrease) Effect on equity for the year ended 31 Dec 2025 increase/(decrease) Effect on equity for the year ended 31 Dec 2024 increase/(decrease)
Increase/(decrease) in copper prices
Increase $0.05/lb (2024: $0.05) 7,060 5,012 5,789 4,110
Decrease $0.05/lb (2024: $0.05) (7,060) (5,012) (5,789) (4,110)
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
The Group applies the expected credit loss ("ECL") model under IFRS 9 to
financial assets measured at amortised cost, including loans and trade and
other receivables. Expected credit losses are measured as the
probability-weighted present value of all cash shortfalls over the expected
life of the financial instrument. The measurement of ECL incorporates
historical loss experience, counterparty-specific factors and forward-looking
information where relevant.
For trade receivables and similar short-term receivables, the Group applies
the simplified approach permitted by IFRS 9 and recognises lifetime expected
credit losses from initial recognition.
For other financial assets measured at amortised cost, the Group assesses at
each reporting date whether credit risk has increased significantly since
initial recognition. Where credit risk has not increased significantly, a loss
allowance based on 12-month expected credit losses is recognised.
A financial asset is considered to have experienced a significant increase in
credit risk when there is a material deterioration in the creditworthiness of
the counterparty or where contractual payments are more than 30 days past due.
A financial asset is considered credit-impaired when contractual payments are
more than 90 days past due or when there is other objective evidence of
impairment.
Forward-looking information is incorporated into the determination of expected
credit losses where relevant, including consideration of macroeconomic
conditions and counterparty-specific developments.
There were no significant changes in estimation techniques or significant
assumptions applied in measuring expected credit losses during the year.
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.
Credit risk exposure by stage
(Euro 000's) Stage 1 (12-month ECL) Stage 2 (Lifetime ECL) Stage 3 (Credit)
31 December 2025
Cash and cash equivalents 166,306 - -
Loans (impaired) 20 - (2,726)
Trade and other financial receivables (impaired) 24,689 - (21,418)
Other financial assets 1,163 - -
192,178 - (24,144)
31 December 2024
Cash and cash equivalents 52,878 - -
Loans 2,627 - -
Trade and other financial receivables 70,115 - -
Other financial assets 1,124 - -
The credit risk exposure presented above includes only financial assets
measured at amortised cost that are within the scope of the expected credit
loss model under IFRS 9. The prepayment granted to Lain Technologies S.A.
which represents an advance payment for services to be received in the future,
has been considered in the credit risk analysis. As the recoverability of this
prepayment depends on the counterparty's ability to perform the contracted
services, management has included it in the assessment of credit risk in
accordance with IFRS 9.
The Group's exposure to credit risk arises primarily from cash balances held
with financial institutions and from receivables from copper concentrate
customers.
Cash balances are held with major international financial institutions with
high credit ratings. Trade receivables primarily relate to a limited number of
internationally recognised smelting and refining counterparties. Management
considers the credit risk associated with these counterparties to be low. The
Group does not hold collateral as security in respect of its financial assets.
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 2025 31 Dec 2024
Unrestricted cash and cash equivalents at Group level 146,505 43,184
Unrestricted cash and cash equivalents at Operation level 19,801 9,694
Consolidated cash and cash equivalents 166,306 52,878
Net cash position 121,960 35,091
Working capital surplus 93,822 44,728
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
2025 and 2024.
The table below presents the Group's financial assets exposed to credit risk
as at 31 December 2025 and 31 December 2024, classified by type of asset.
(Euro 000's) 2025 2024
Non-current financial assets
Non-current loans 9,834 2,768
Non-current deposits 902 611
10,736 3,379
Current financial assets
Current loans 20 5,352
Current receivables 21,668 11,458
21,688 16,810
Total 32,424 20,189
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) 2025 2024
Variable rate instruments
Financial assets 166,306 52,878
An increase of 100 basis points in interest rates at 31 December 2025 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) 2025 2024 2025 2024
Variable rate instruments 1,663 529 1,663 529
(d) 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.
(e) 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.
(f) 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 Fair value measurement
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
those listed on stock exchanges, and the fair value of assets and liabilities
measured at fair value through profit or loss are 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
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 using valuation techniques. The Group uses a variety of
methods, such as estimated discounted cash flows, and makes assumptions based
on market conditions existing at the reporting date.
Fair value measurements recognised in the consolidated statement of financial
position
The following table provides an analysis of financial instruments 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 (that is, as prices) or indirectly (that is,
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 2025
Other current financial assets
Financial assets at FV through OCI 62 - 1,101 1,163
Financial assets at FV through P&L (*) - - 9,725 9,725
Trade and other receivables
Receivables (subject to provisional pricing) - 21,254 - 21,254
Total 62 21,254 10,826 32,142
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
(*) The fair value of the convertible loan was determined using a valuation
model reflecting expected outcomes of Lain UK Ltd.
On 30 September 2024 the Company entered into a convertible loan agreement
with Lain Technologies Ltd., granting a credit facility of up to €10 million
(the "Convertible Loan"). The Convertible Loan was granted for a fixed term to
31 December 2025 and bears interest at EURIBOR 3M + 2% per annum.
As at 31 December 2025, the carrying value of the Convertible Loan amounts
€9.7 million comprising €9.3 million of principal and €0.5 million of
accrued interest.
If, at the Loan's maturity, if Lain Technologies Ltd has not repaid the
principal and accrued interest, Atalaya has the right to acquire 20% of the
shares of Lain Technologies, Ltd at zero consideration (in exchange for the
outstanding principal and interest of the Convertible Loan). Upon receipt of
such equity interest, the Convertible Loan will be cancelled.
As at the date of approval of these financial statements, Atalaya has neither
collected the outstanding amount nor exercised the conversion right.
Lain Technologies, Ltd is the owner of the E‑LIX technology, which is
safeguarded as a trade secret, and the company's value is fundamentally driven
by ownership of that technology. The functionality of the E‑LIX process has
been demonstrated, however, the only demonstration scale plant using this
technology is located at Proyecto Riotinto and is currently in ramping up and
has not yet achieved consistent commercial production levels.
Given the nature of the asset and the expectation that recovery will occur
through conversion into a 20% equity interest rather than through cash flows
of principal and interest, the instrument is measured at fair value through
profit or loss in accordance with IFRS 9.
Atalaya has relied on the work of an independent valuation expert to determine
the fair value of its 20% interest in Lain Technologies Ltd.
The fair value of the 20% interest in Lain Technologies, Ltd. has been
estimated using the Discounted Incremental Cash Flows method ("DICF"),
applying an appropriate discount rate (Weighted Average Cost of Capital,
"WACC").
The DICF methodology determines value based on the present value of
incremental cash flows expected to be generated from the application of the
E-LIX technology.
These incremental cash flows are calculated as follows:
· (Scenario 1) cash flows estimated for Proyecto Riotinto including
the application of the E-LIX technology; minus
· (Scenario 2) cash flows estimated for Proyecto Riotinto without the
application of the E-LIX technology.
Key assumptions applied in the valuation model include an 8% discount for lack
of marketability ("DLOM") and commodity price assumptions based on a
combination of forward market prices and management's long-term forecasts,
which are broadly consistent with those used in the Group's impairment testing
and internal planning processes.
The valuation has been prepared using Cerro Colorado open pit at Proyecto
Riotinto as a reference operating scenario and does not include potential
applications of the E-LIX technology to other mines, reflecting the early
stage of deployment of the technology and providing a conservative estimate of
value.
The following scenarios were considered in determining the range of reasonable
values:
· Base Case: based on planned copper extraction for the Cerro
Colorado mine and WACC of 9.3%.
· Low Range: based on planned copper extraction for the Cerro
Colorado mine and WACC of 11%.
· High Range: based on planned copper extraction for the Cerro
Colorado mine and WACC of 7%.
The incremental cash flows for each of these scenarios are as follows:
(Million of Euro) Incremental Cash Flows
Low Range 10.1
Base Case 10.9
High Range 13.4
Sensitivity analysis has also been performed, including scenarios with
increased production volumes and lower discount rates. Under an illustrative
scenario assuming an increase of up to 20% in copper payable and a minimum
WACC of 7%, the resulting valuation would amount to €16.1 million. The
valuation incorporates assumptions regarding the resolution of current
operational constraints and the achievement of improved production levels,
which are inherently uncertain and subject to execution risk.
Based on the above considerations, management has estimated the fair value at
year‑end to be €9.7 million. The maximum credit risk to which Atalaya is
exposed in relation to the Convertible Loan amounts to €9.7 million.
3.3 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 2025 31 Dec 2024
Total liabilities less cash 33,526 104,433
Total equity (excluding NCI) 589,870 516,384
Total capital 623,396 620,187
Gearing ratio 5.38% 16.82%
3.4 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 2025, 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).
Certain financial assets contain features such as early termination options,
variable or linked interest rates, or conversion options into equity
instruments. These contractual features require management to assess whether
the SPPI criterion is met and whether the instrument should be measured at
amortised cost, fair value through OCI, or fair value through profit or loss.
In particular, the existence of conversion options into shares may introduce
exposure to equity risk and therefore may preclude measurement at amortised
cost.
Significant judgement is therefore required in evaluating the economic
substance of these contractual arrangements and determining the appropriate
accounting classification under IFRS 9 and, where applicable, IAS 32.
(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 (Note 13).
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.
(g) Classification of share-based payment arrangements
The amendment to the LTIP 2020 approved by the Board of Directors in May 2025
introduced a discretionary mechanism allowing the settlement of certain option
exercises in cash instead of issuing equity instruments. This mechanism
applies exclusively to options exercised by non C-Suite employees and is
subject to a maximum aggregate cash settlement limit of €3 million approved
by the Board.
The classification of these awards requires judgement in determining whether
the Group has incurred a present obligation to settle in cash in accordance
with IFRS 2.41.
In making this assessment, management considered the following factors:
- the contractual terms of the amended LTIP 2020 plan;
- the authorisations granted by the Board of Directors and the
cumulative limits approved for cash settlement during 2025;
- the pattern of settlements observed since the introduction of the
amendment; and
- whether the Group retains a realistic alternative to settle the
awards by issuing equity instruments.
Based on this analysis, management concluded that sufficient evidence of a
past practice of cash settlement arose on 9 September 2025, when the Board
approved the increase of the authorised cash settlement limit to €3 million.
From that date, the Group considers that a constructive obligation exists to
settle certain awards in cash in accordance with IFRS 2.41. However, this
obligation is limited to the maximum aggregate amount authorised by the Board
of Directors.
For awards exceeding this limit, the Group retains the practical ability to
settle the options through the issuance of equity instruments. Accordingly, no
present obligation to settle in cash exists for the remaining options
outstanding.
The measurement of liabilities arising from cash-settled share-based payment
arrangements requires the use of market-based inputs, including the share
price at the reporting date and expected vesting conditions.
Key sources of estimation uncertainty
(h) 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 Ore Reserves.
- Capitalisation of stripping costs, which determines whether waste
removal costs should be recognised as an asset or expensed.
- Rehabilitation and decommissioning provisions, as Ore 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 independent qualified persons to compile this data in
accordance with the JORC Code. Changes in the judgments surrounding Ore
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 Ore 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 June 2025, Atalaya incorporated a further update of its Ore Reserves based
on an independent expert analysis in accordance with the JORC Code (2012).
This update reflects a revised understanding of the geological model, mine
planning parameters and economic assumptions applicable to Proyecto Riotinto.
As a result, certain accounting estimates linked to depreciation and stripping
activity have been revised accordingly.
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.
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 June 2025 Ore Reserves update resulted in a net decrease in operating
expenses recognised in profit or loss of approximately €4.7 million for the
year. This net impact reflects a decrease in depreciation of mining assets of
€5.4 million and a decrease in depreciation of slow-moving tooling and
related assets of €0.2 million. In additions, there was a decrease in the
capitalisation of stripping costs of €1.4 million and a decrease in
depreciation of previously capitalised stripping costs of €0.5 million.
Overall, the updated Ore Reserves model resulted in lower depletion and
depreciation charges and a revised allocation of production stripping costs,
reflecting the updated life-of-mine profile.
Accumulated Depreciation of Mining Assets:
The revised Ore Reserves estimates have led to a reduction in depreciation
expense for mining assets during the year, amounting to €5.4 million. This
adjustment reflects changes in the depletion profile under the units of
production method, based on the updated estimate of commercially recoverable
Ore Reserves.
The revised Ore Reserves base results in a recalibration of the remaining
depreciable amount over the updated life of mine
Capitalised Stripping Costs
As a consequence of the updated Ore Reserves model and mine plan sequencing,
both the level of capitalised stripping costs and the related amortisation
profile have been revised.
Depreciation of capitalised stripping assets decreased by €0.5 million
during the year, reflecting the updated production profile. In addition, the
capitalisation of stripping costs decreased by €1.4 million compared with
previous estimates, consistent with the revised assessment of improved access
to identifiable ore components in accordance with IFRIC 20.
Compliance with Reporting Standards:
The Group reports its Mineral Resources and Ore Reserves in accordance with
the JORC Code. 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 2025 was 3.67% (2024: 3.23%), which is the 15-year
Spain Government Bond rate for 2025. An inflation rate in the range of
2%-2.90% (2024: 2%-2.80%) is applied on 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 €2.0 million,
while a 1% decrease would increase the provision by €2.0 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
For the purposes of assessing impairment, the Group's assessed the
recoverability of the assets associated with E-LIX project by considering
their individual recoverability characteristics distinguishing between: (i)
the Convertible Loan that may be converted into 20% of the equity of Lain
Technologies Ltd., the company which owns the E-LIX technology; and (ii)
assets related directly to the Industrial Plant located at Proyecto Riotinto.
For (i) above, the Company has measured at fair value through profit or loss
in accordance with IFRS 9 (Refer to Note 3.2).
The 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 in and funded Lain through
various phases of development, including the construction of a pilot plant,
feasibility studies testing activities, and the development of an
industrial-scale plant to apply the E-LIX electrochemical extraction
technology to a variety of 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 volumes, recovery rates and cost efficiencies is critical.
· Exclusivity and operational agreements - The Group holds limited
exclusive rights to the E-LIX technology within the Iberian Pyrite Belt, which
may support potential future economic benefits.
Given these factors, management assesses both qualitative and quantitative
indicators when determining the recoverability of the investment at asset
level.
The key estimation uncertainties relate to:
· The financial capability of the owner of the E-LIX technology to
operate the Industrial Plant Financial difficulty could impact the viability
of the Industrial Plant at Riotinto.
· The finalisation of the ramp-up and the expected operational
efficiency of the Industrial Plant operating at continuous production levels.
Any delays or underperformance could impact future cash flow generation.
· Identification of appropriate feedstock. It is recognised that the
technology will not be appropriate for all types of ore/feed material and so
establishing suitable feed material will be a critical part of ongoing
testwork/financial analysis.
· 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.
At 31 December 2025, the Group recognised an impairment of €24.1 million in
relation to certain assets associated with the E-LIX project. Due to the
inherent estimation uncertainty, the Group will continue to monitor
operational performance and market conditions, and will reassess the
recoverability of the related assets when new information becomes available.
Refer to Note 13 of the Financial Statements
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 2025 2024
€'000 €'000
Switzerland 276,975 256,243
Singapore 205,422 69,676
Spain 518 878
482,915 326,797
The table below presents revenues from external customers attributed to the
country of domicile of the Company.
Revenue - from external customers 2025 2024
€'000 €'000
Cyprus 36,488 25,404
Spain 446,427 301,393
482,915 326,797
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 2025 2024
€'000 €'000
Spain 522,648 479,241
522,648 479,241
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) 2025 2024
Segment €'000 Segment €'000
Offtaker 1 Copper 205,422 Copper 69,676
Offtaker 2 Copper 91,875 Copper 91,849
Offtaker 3 Copper 131,840 Copper 164,394
5. Revenue
(Euro 000's) 2025 2024
Revenue from contracts with customers ((1)) 474,863 341,787
Price finalisation adjustments on provisionally priced sales 2,372 -
Fair value (loss)/ gain relating to provisional pricing within sales ((2)) 5,209 (15,868)
Other income((3)) 471 878
Total revenue 482,915 326,797
((1) ) Included within 2025 revenue there is a transaction price of
€12,095 thousand (€11,709 thousand in 2024) 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 contrate.
((3) ) Other income mainly represents scraps.
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 increase in revenues was mainly due to higher concentrate sales volumes
and higher realised prices and lower TC/RC prices. Inventories of concentrates
at year-end was 4,050 tonnes, compared with 21,815 tonnes in 2024.
The Group applies the practical expedient in IFRS 15.121 and does not disclose
information about remaining performance obligations for contracts with an
original expected duration of one year or less. Concentrate sales and
associated freight services under CIF terms are short-term in nature.
Accordingly, at 31 December 2025, the Group did not have material remaining
performance obligations requiring disclosure.
6. Expenses by nature
(Euro 000's) 2025 2024
Operating costs** 234,707 197,793
Care and maintenance expenditure 13,008 16,723
Exploration expenses 7,621 4,975
Employee benefit expense (Note 7) 27,875 27,868
Compensation of directors and key management personnel 3,261 2,397
Auditors' remuneration - audit (Note 32) 332 401
Other accountants' remuneration 848 1,291
Consultants' remuneration 1,690 1,775
Depreciation of property, plant and equipment (Note 13) 42,718 39,658
Amortisation of intangible assets (Note 14) 4,802 3,907
Share option-based employee benefits (Note 24) 7,009 1,379
Shareholders' communication expense 113 125
On-going listing costs 357 1,114
Legal costs 769 368
Public relations and communication development 1,740 963
Rents (Note 28) 7,230 5,492
Other expenses and provisions 627 (1,841)
Reversal of impairment losses (*) (Note 14) - (6,948)
Impairment loss on trade receivables and contract assets 21,418 1,205
Total 376,125 298,645
(*) An impairment charge for the same amount was recorded in the same caption
during 2024: mine site depreciation, amortisation and impairment, in the
consolidated statement of comprehensive income of 2019.
(**) Operating costs primarily include mining and processing costs related to
the Proyecto Riotinto operation. These comprise costs for raw materials
(€53.0m), utilities (€38.5m), professional and contract services
(€91.3m), maintenance (€12.8m) and other direct production expenses
incurred in the extraction and processing of copper concentrate.
The increase in costs was mainly due to higher input costs and a reduce in
copper concentrate stock at the end of the period.
During 2025, the Group recognised personnel expenses of €7.0 million in
relation to the Share option-based employee benefits plan granted to members
of key management and other employees. The expense reflects the fair value of
the shares granted in accordance with IFRS 2.
7. Employee benefit expense
(Euro 000's) 2025 2024
Wages and salaries 20,516 20,430
Social security and social contributions 6,642 6,613
Employees' other allowances 19 24
Bonus to employees 698 801
Total 27,875 27,868
The average number of employees and the number of employees at year end by
office are:
Average At year end
Number of employees 2025 2024 2025 2024
Spain - Full time 478 492 480 490
Spain - Part time 27 3 34 3
Cyprus - Full time 1 1 1 1
Cyprus - Part time 2 2 2 2
United Kingdom - Full time 1 - 1 1
Total 509 498 518 497
8. Finance income
(Euro 000's) 2025 2024
Financial interest 1,834 1,887
Other received interest - -
1,834 1,887
Financial interests include interest received on bank balances of €0.6
million (2024: €0.6 million) and €1.2 million related to to the
contractual accrual of interest on funding provided in connection with the
E-LIX project (see Note 13). The recognition of this interest income reflects
the contractual terms of the relevant agreements and does not imply
recoverability of the underlying balances, which have been assessed for
impairment as described in Note 13.
9. Finance costs
(Euro 000's) 2025 2024
Interest expense:
Interest payable for borrowings 583 1,131
Interest expense on lease liabilities 21 30
Unwinding of discount on mine rehabilitation provision (Note 27) 796 828
Impairment and gains/(losses) on disposal of financial instruments 2,726 -
4,126 1,989
Interest payable for borrowings include the financing costs related to Solar
plant, other long-term debt and other operating facilities.
During the year ended 31 December 2025, the Group capitalised €0.7 million
(2024: €1.0 million) of borrowing costs related to the construction of the
solar plant and an area of the plant in accordance with IAS 23.
The aggregate net foreign exchange gain/losses recognised in profit or loss
were:
(Euro 000's) 2025 2024
Net foreign exchange gain/(loss) included in other gain/(losses) (6,263) 3,090
Total net foreign exchange gain/ (losses) recognised in profit before income (6,263) 3,090
tax for the period
10. Tax
(Euro 000's) 2025 2024
Current income tax charge 17,646 2,732
Deferred tax income relating to the origination of temporary differences (Note (2,725) (6,297)
17)
Deferred tax expense relating to reversal of temporary differences (Note 17) 1,979 2,528
16,900 (1,037)
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) 2025 2024
Accounting profit before tax 102,263 31,523
Tax calculated at the applicable tax rates of the Company -25% Spain (2024:
12.5% Cyprus)
25,566 7,881
Tax effect of expenses not deductible for tax purposes -
Tax effect of tax loss for the year 1,052 4,018
Tax effect of allowances and income not subject to tax (9,215) (5,769)
Effect of lower tax rates in other jurisdictions of the group 242 (2,921)
Tax effect of tax losses brought forward - -
Deferred tax (Note 17) (745) (4,246)
Tax (credit)/ charge 16,900 (1,037)
Dividends proposed by the Parent Company after the reporting date do not give
rise to income tax consequences for the Group.
The group has tax refundable as at 31 December 2025 €2.8 million (2024:
€nil).
Tax losses carried forward
As at 31 December 2025, the Group had tax losses carried forward amounting to
€7.2 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. As
of 2026 tax year, the corporate income tax (CIT) rate has increased from
12.50% to 15%.
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 2025 is 25% (25% in 2024), 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 2022-2025
Cyprus 2020-2025
United Kingdom 2020-2025
The Group hasn't recognized tax provisions related to Administrative and
judicial proceedings with tax implications in 2025 (2024: €nil).
Tax inspections
On 1 October 2025, the AEAT (Spanish Tax Authorities) notified the Company, in
its capacity as representative entity of Spanish tax group 288/18, of the
commencement of a tax inspection procedure.
The inspection has a partial scope and relates primarily to Corporate Income
Tax and Non-Resident Withholding Tax obligations for the 2024 financial year,
with review of certain aspects of prior periods within the statutory
inspection timeframe (2021 to 2024 under the tax consolidation regime).
The inspection focuses, inter alia, on the deductibility of finance expenses
arising from participative loans, the arm's length nature of interest charged
on intra-group financing arrangements and the withholding tax treatment of
dividends paid to non-resident entities.
As at the date of approval of these consolidated financial statements, the
inspection remains ongoing and no proposed assessment has been issued.
Management, supported by external tax advisers, considers that the Group has
applied the relevant tax legislation appropriately and does not expect the
outcome of the inspection to have a material adverse effect on the Group's
financial position.
Accordingly, no provision has been recognised in respect of this matter.
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) 2025 2024
Parent company (24,703) (2,468)
Subsidiaries 110,280 34,206
Profit attributable to equity holders of the parent 85,577 31,738
Weighted number of ordinary shares for the purposes of basic earnings per 140,759 140,404
share ('000)
Basic earnings per share (EUR cents/share) 60.8 22.6
Weighted number of ordinary shares for the purposes of diluted earnings per 146,884 145,457
share ('000)
Diluted earnings per share (EUR cents/share) 58.3 21.8
At 31 December 2025 there are nil warrants and 6,026,334 options (Note 23) (31
December 2024: nil warrants and 5,423,666 options) which have been included
when calculating the weighted average number of shares for FY2025.
12. Dividends
Cash dividends declared and paid during the year:
(Euro 000's) 2025 2024
Final dividends declared and paid 3,871 5,243
Interim dividends declared and paid 6,193 5,063
10,064 10,306
Fully paid ordinary shares carry one vote per share and carry the right to
dividends.
FY 2024
A final dividend of US$0.03 per ordinary share was proposed on 17 March 2025
for approval by shareholders at the 2025 AGM, which gave a total dividend for
2024 of US$0.07 per share. Following the approval of Resolution 11 by the
Company's shareholders at the 2025 AGM, which took place on 24 June 2025, 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 23 July 2025.
FY 2025
On 11 August 2025, the Company's Board of Directors elected to declare an
interim dividend of €0.044 (or US$0.0510 or £0.0380) per share. The interim
dividend was paid on 10 October 2025.
A final dividend of €0.065 per share has been proposed for approval by
shareholders at the 2026 Annual General Meeting. If approved, this would give
a total dividend for 2025 of €0.109 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
2025
Cost
At 1 January 2025 86,452 6,928 340,516 100,448 73,974 980 609,298
Additions ((7)) 459 1,237 836 47,549 22,084 - 72,165
Increase in rehab. Provision (Note 27) 116 - - - - - 116
Reclassifications ((4)) - - 2,895 - 19 (29) 7,013 - 19 9,927
Other transfer - - - - - - -
Changes in rehab. provision (775) - - - - - (775)
Disposals - - - (14) - (24) (38)
31 Dec 2025 86,252 8,165 344,247 154,996 96,058 975 690,693
Depreciation
At 1 January 2025 30,894 2,971 140,876 - 24,718 807 200,266
Charge for the year ((6)) 5,370 562 28,356 - 8,378 52 42,718
Write-off - - - - - (20) (20)
31 Dec 2025 36,264 3,533 169,232 - 33,096 839 242,964
Net book value at 31 December 2025 49,989 4,632 175,015 154,996 62,962 136 447,729
2024
Cost
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 233 - 332 52,801 9,902 - 63,268
Increase in rehab. Provision 3,274 - - - - - 3,274
(Note 27)
Reclassifications - - 21,050 (21,969) - 29 (890)
Other transfer (572) - - (2,586) - - (3,158)
Write-off - (148) - - - - (148)
Advances - - - 1,601 - - 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 6,192 497 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
7,013
-
19
9,927
Other transfer
-
-
-
-
-
-
-
Changes in rehab. provision
(775)
-
-
-
-
-
(775)
Disposals
-
-
-
(14)
-
(24)
(38)
31 Dec 2025
86,252
8,165
344,247
154,996
96,058
975
690,693
Depreciation
At 1 January 2025
30,894
2,971
140,876
-
24,718
807
200,266
Charge for the year ((6))
5,370
562
28,356
-
8,378
52
42,718
Write-off
-
-
-
-
-
(20)
(20)
31 Dec 2025
36,264
3,533
169,232
-
33,096
839
242,964
Net book value at 31 December 2025
49,989
4,632
175,015
154,996
62,962
136
447,729
2024
Cost
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
233
-
332
52,801
9,902
-
63,268
Increase in rehab. Provision
(Note 27)
3,274
-
-
-
-
-
3,274
Reclassifications
-
-
21,050
(21,969)
-
29
(890)
Other transfer
(572)
-
-
(2,586)
-
-
(3,158)
Write-off
-
(148)
-
-
-
-
(148)
Advances
-
-
-
1,601
-
-
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
6,192
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
((1)) Includes motor vehicles, furniture, fixtures and office equipment which
are depreciated over 5-10 years.
((2)) Capitalised stripping related to Cerro Colorado (note 2.9 (b))
(3)) Assets under construction at 31 December 2025 amounted to €155.0
million (2024: €100.4 million), this balance includes €49.3 million
related to Project slope stabilization of Corta Atalaya and Concordia, €6.4
million are road deviation, €43.6 million Solar plant, €14.1 million
sustaining capital, €22.1 million E-LIX plant and €15.7 million tailing
dams capital expenditure. Additions include sustaining capital expenditures
with an investment of €3.3 million (2024: €4.0 million), tailings dams
project €15.8 million (2024: €14.8 million), E-LIX plant amounted to
€0.2 million (€2.1 million in 2024), solar plant €2.6 million (2024,
€8.4 million) and Concordia project spending €25.3 million (2024, €25.7
million) of which waste stripping activities at the San Dionisio area €24.2
million and new road €1.0 million.
((4)) Reclassifications of €9.0 million related to E-LIX project (see below
Non-Monetary Exchange), €2.83 million to plant and equipment are associated
with sustaining capex and €0.9 million related to low-rotation stock were
reclassified to inventories (material supplies).
((5)) See leases in Note 28.
((6)) Depreciation has been affected due to the increase of Ore Reserves (note
2.9 (b)).
((7)) During the year ended 31 December 2025, the Group capitalised €0.7
million 2024: €1.0 million) of borrowing costs in accordance with IAS 23.
The average effective interest rate applied was 1.35%. 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 weighted average capitalisation rate applied to general borrowings during
the year was 4.15% (2024: 4.49%).
Non-Monetary Exchange During the Year
On 25 September 2025, the Group executed a Payment and Credit Compensation
Agreement with Lain to formalise the settlement and mutual compensation of
payments and credits deriving from previous arrangements. As a result of
this agreement, Lain transferred certain equipment to Atalaya in exchange for
a partial settlement of the Industrial Loan previously classified as
Prepayments (refer to Note 20). The transaction had commercial substance and
fair values as at 31 December 2025 were reliably measurable as follows:
· Fair value of prepayment given up: €9.0m
· Carrying amount of prepayment given up: €9.0m
· Fair value of equipment received: €9.0m
· Gain/(loss) recognised in profit or loss: €nil
The equipment is classified under "Assets under construction" and will be
depreciated over its estimated useful life once the Industrial Plant achieves
commercial production.
The above fixed assets are mainly located in Spain.
E-LIX Project
In May 2019, after approximately four years of laboratory work, Atalaya
initiated a partnership with Lain Technologies Ltd. for the development of a
technology known as E-LIX. The E-LIX technology is an electrochemical
extraction process developed by Lain that aims to enable the production of
zinc and copper cathodes, as well as other derivatives of these metals, from
complex sulphide ores.
In July 2020, Atalaya and Lain executed a Memorandum of Understanding ("MOU"),
and have collaborated in the development of the E-LIX technology through
several 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.
· Phase 3: Construction and commissioning of an Industrial Scale
Plant.
In accordance with the phases stated above, 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;
· Operational agreements for the construction of the Industrial
Plant; and
· Payment and Credit Compensation Agreement.
The Pilot Plant was constructed during 2021 and confirmed the technical
feasibility of E-LIX, demonstrating the ability to selectively leach metals
from concentrates and achieve high recovery rates for copper and zinc.
In December 2021, the Company's Board of Directors approved the construction
and financing of a larger-scale demonstration plant with a significantly
greater processing capacity than the Pilot Plant (the "Industrial Plant").
From the approval of the construction of the Industrial Plant in 2021, Lain
Technologies has been working on constructing and ramping-up the Industrial
Plant.
During 2025, Lain intermittently operated the Industrial Plant processing
copper concentrates produced by Atalaya and producing a saleable mixed zinc
hydroxide product.
While the Industrial Plant has demonstrated the technical functionality of the
E-LIX technology at an industrial scale, production volumes have been
significantly lower than originally designed resulting in challenging
operational and financial results.
As of 31 December 2025, the Industrial Plant has not achieved the level of
commercial production envisaged in the feasibility studies. Although the E-LIX
technology has been performing broadly in line with the design parameters,
certain operational bottlenecks have been identified that limit the plant's
ability to achieve the originally designed production levels without
additional capital investments.
As of 31 December 2025, Atalaya had the following balances relating to the
Pilot Plant and the Industrial Plant arising from the agreements with Lain:
Description Caption Note Net Asset Value (€k) 31 Dec 2025 Net Asset Value (€k)
31 Dec 2024
Pilot Plant Non-current loan 19 - 2,627
Industrial Plant Non-current receivables (prepayment) 20 - 29,662
Industrial Plant PPE 13 22,118* 12,978
Convertible Loan Non-Current loan 19 9,725 5,332
31,823 50,619
*22k corresponding to capitalised interest
Impairment of E-LIX Technology Assets
The E-LIX technology has demonstrated positive results in the recovery of zinc
and copper metal, as well as their derivatives, through the treatment of
complex sulphide ores. If the E-LIX technology is proven to be financially
viable at an industrial scale, the E-LIX technology has the potential to
unlock the production of metals from complex ore and its use at an industrial
scale could potentially significantly extend the life of mine at Proyecto
Riotinto. E-LIX technology is owned by Laint Technology Ltd.
Atalaya has reviewed both external and internal indicators of impairment in
assessing the recoverability of the assets associated with the E-LIX
technology (Note 3.4.).
Based on the information currently available, Atalaya has identified Lain's
financial situation as an impairment indicator affecting the recoverability of
certain assets, due to:
(i) the possibility that Lain's financial constraints may limit the
availability of capital investment required to address operational bottlenecks
and the ability the Industrial Plant to achieve throughput volumes sufficient
to operate in a financially viable manner; and
(ii) the risk that Lain may not be able to meet its contractual obligations
which could limit Atalaya's ability to recover outstanding balances.
Description Nature of the Asset (recoverability) Net Asset Value at 31 December 2025 (€k)
Value at 31 Dec 2025 (€k) Impairment (€k)
Pilot Plant Repayments from operational cash flow from the Industrial Plant 2,726 (2,726) -
Industrial Plant - Loan 21,418 (21,418) -
Repayments depends on the use of the technology and operation in the
Industrial Plant
Industrial Plant - PPE 22,098 - 22,098
Recoverable asset through alternative use in Atalaya's processing plant (1)
Convertible Loan 9,725 - 9,725
Recoverable by 20% of equity in the E-LIX technology
55,967 (24,144) 31,823
(1) Atalaya has carried out an analysis to identify assets that could be
used in the existing processing plant other than the E-LIX technology.
14. Intangible assets
(Euro 000's) Licences, R&D and Software
Other intangible assets
Permits ((1)) Total
2025
Cost
At 1 January 2025 78,071 1,810 27,847 107,728
Additions 400 10 9,073((2)) 9,483
Reclassification 52 28 (51) 29
31 Dec 2025 78,523 1,848 36,869 117,240
Amortisation
At 1 January 2025 35,958 1,561 - 37,519
Charge for the year 4,771 31 - 4,802
31 Dec 2025 40,729 1,592 - 42,321
Net book value at 31 December 2025 37,794 256 36,869 74,919
2024
Cost
1 Jan 2024 81,199 8,758 - 89,957
Additions - - 17,771((3)) 17,771
Reclassification (3,128) (6,948) 10,076 -
31 Dec 2024 78,071 1,810 27,847 107,728
Amortisation
1 Jan 2024 32,080 8,480 - 40,560
Charge for the year 3,878 29 - 3,907
Reversal of impairment losses((4)) - (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
((1) ) Permits include the mining rights of Proyecto Riotinto,
Proyecto Touro, Masa Valverde and Ossa Morena. Additions correspond to the
acquisition of new investigation permits.
((2) ) Additions include capitalisation costs of Masa Valverde
€4.4 million and €4.6 million of Cobre San Rafael.
((3) ) Additions during 2024 included €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 2025 and 2024.
The Group's principal amortised intangible asset relates to the mining rights
associated with Proyecto Riotinto. These rights are amortised on a
units-of-production basis over the commercially recoverable Ore Reserves of
the mine. The last Ore Reserves statement implies a mine life of approximately
nine years.
Other mining-related intangible assets, including Proyecto Touro, Proyecto
Masa Valverde and Proyecto Riotinto East, are not yet available for use and
are therefore not amortised. Amortisation will commence once commercial
production begins.
((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 a 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 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 improved
significantly, leading to a reassessment of its technical and financial
feasibility.
A key development was the designation of Proyecto Touro as a Strategic
Industrial Project ("PIE") by the Xunta de Galicia. This designation granted
priority status, accelerated administrative procedures, and reduced regulatory
uncertainties, removing the primary risk factor that led to the initial
impairment.
In compliance with IAS 36 - Impairment of Assets, the Company 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 was
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 considered:
- Technical viability, based on updated Mineral Resource and Ore
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 was conducted. The valuation 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 was 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 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 2024, 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 2025, a total of €3.8 million (2024: €1.2 million) in funding was
provided to MPS in relation to the exploration campaigns.
The following table summarises the movement in exploration and evaluation
assets during the year:
(Euro 000's) 2025 2024
Opening balance as of 1 January - -
Additions during the year - 1,205
Impairment losses - (1,205)
Closing balance as of 31 December - -
During 2025 this investment was recognised as expenses due to the early
exploration stage. 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 2025 31 Dec 2024
Intangible assets 94 94
Trade and other receivables 4 4
Cash and cash equivalents 15 15
Trade and other payables (114) (115)
Net assets (1) 2
Revenue - -
Expenses - -
Net profit/(loss) after tax - -
17. Deferred tax
Consolidated statement of financial position Consolidated income statement
(Euro 000's) 2025 2024 2025 2024
Deferred tax asset
At 1 January 15,085 11,282 - -
Deferred tax income relating to the origination of temporary differences (Note
10)
2,725 6,297 (2,725) (6,297)
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)
(1,970) (2,528) 1,970 2,528
At 31 December 15,840 15,085
Deferred tax income/(expense) (Note 10) (755) (3,769)
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 €7.2 million in Spain
(2024: €9.7 million).
18. Inventories
(Euro 000's) 31 Dec 2025 31 Dec 2024
Finished products 3,799 19,732
Materials and supplies 25,087 25,540
Work in progress 1,985 3,890
30,871 49,162
As at 31 December 2025, copper concentrate produced and not sold amounted to
4,050 tonnes (FY2024: 21,815 tonnes), due to timing on shipments. Accordingly,
the inventory for copper concentrate was €3.8 million (FY2024: €19.7
million). During the year 2025 the Group recorded cost of sales amounting to
€280.2 million (FY2024: €242.2 million).
Materials and supplies relate mainly to machinery spare parts. Work in
progress represents ore stockpiles, which is ore that has been extracted and
is available for further processing.
19. Loans
(Euro 000's) 2025 2024
Non-current loans
Loans 12,451 2,627
Impairment loss on loans (2,726) -
9,725 2,627
Current loans
Loans 20 5,352
20 5,352
Non-current loans relate to the loans with Lain Technologies regarding the
Pilot Plant and convertible loan agreement. That balance includes principal of
€2.3 million plus €0.3 million of interest accrued of Pilot Plant (Note
13) with Lain Technologies S.A. and €9.3 million relating to the Convertible
Loan with Lain Technologies Ltd plus €0.4 of interest accrued (Note 3.2. and
Note 13).
In relation to the loan agreement with Lain Technologies for the Pilot Plant,
Atalaya has recognised a full impairment of this balance, as recovery is not
expected in the short term (Note 13). This balance bears interest at EURIBOR
12M + 2% per annum.
On 30 September 2024 the Group signed a convertible loan agreement, granting a
credit facility of up €10 million with a fixed term until 31 December 2025.
As at 31 December 2025, the loan has been classified as non-current. This
balance bears interest at EURIBOR 3M + 2% per annum.
20. Trade and other receivables
(Euro 000's) 2025 2024
Non-current trade and other receivables
Deposits 902 611
Loans 109 141
Prepayments for service contract ((1)) - 29,662
Other non-current receivables 111 2,838
1,122 33,252
Current trade and other receivables
Trade receivables at fair value - subject to provisional pricing 5,484 9,727
Trade receivables from shareholders at fair value - subject to provisional 15,770 1,042
pricing (Note 31.5)
Deposits 35 35
VAT receivable 12,739 20,898
Tax advances 71 -
Prepayments 4,736 4,507
Other current assets 2,278 654
41,113 36,863
Allowance for expected credit losses - -
Total trade and other receivables 42,235 70,115
((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. On 25
September 2025, a payment and set-off agreement was executed for a total
amount of €9.0 million. The agreement was settled through the acquisition of
assets by Atalaya, resulting a non. monetary exchanges. At year-end, the Group
reassessed its investment in the E-LIX project and, as a result, recognised an
impairment of the full balance of Prepayments for service contract, amounting
of €21.4 million (Refer to 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 2024) 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 2025 31 Dec 2024
Financial asset at fair value through OCI (see (a) below) 1,162 1,124
Total current 61 23
Total non-current 1,101 1,101
a) Financial assets at fair value through OCI
(Euro 000's) 31 Dec 2025 31 Dec 2024
At 1 January 1,124 1,131
Fair value change recorded in equity (Note 24) 38 (7)
At 31 December 1,162 1,124
Country of incorporation Effective proportion of shares
Company name Principal activities held at 31 December 2025
Explotaciones Gallegas del Cobre SL Exploration company Spain 12.5%
KEFI Minerals Plc Exploration and development mining company listed on AIM UK 0.04%
Prospech Limited Exploration company Australia 0.09%
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 2025 31 Dec 2024
Unrestricted cash and cash equivalents at Group level 146,505 43,184
Unrestricted cash and cash equivalents at Operation level 19,801 9,694
Consolidated cash and cash equivalents 166,306 52,878
Cash and cash equivalents denominated in the following currencies:
(Euro 000's) 31 Dec 2025 31 Dec 2024
Euro - functional and presentation currency 104,902 37,299
Great Britain Pound 142 70
United States Dollar 61,262 15,509
166,306 52,878
23. Share capital
Shares Share Capital Share premium Total
000's €'000 €'000 €'000
Issue Date Price (£) Details 000's €'000 €'000 €'000
1 January 2024 140,759 12,668 321,856 334,524
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
At 31 December 2024 140,759 12,668 321,856 334,524
1 January 2025 140,759 12,668 321,856 334,524
At 31 December 2025 140,759 12,668 321,856 334,524
* Decrease of capital from 7.5p to €0.09 per share
Authorised capital
The Company's authorised share capital was 200,000,000 ordinary shares until
the re-domiciliation to Spain. After the re-domiciliation of Atalaya to Spain
in 2024, in order to comply with Spanish law, redenominate it to euros,
thereby increased 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 agreed
to increase the Company's share capital from €12,395,853.02, by
€272,460.85. This 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 was 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 FY2025.
The Company's share capital at 31 December 2025 is 140,759,043 ordinary shares
of €0.09 each.
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 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 2024/1 Jan 2025 12,869 208 46,727 (1,163) 8,458 21,675 88,774
Recognition of non-distributable reserve - - - - 1 - 1
Recognition of distributable reserve - - - - - 13 13
Recognition of share based payments 428 - - - - - 428
Change in fair value of financial assets at fair value through OCI (Note 21) - - - 39 - - 39
31 Dec 2025 13,297 208 46.,727 (1,124) 8,459 21,688 89,255
((1) ) Depletion factor reserve
During the twelve month period ended 31 December 2025, the Group has
recognised €nil million (FY2024: addition of €8.9 million) as a depletion
factor reserve as per the Spanish Corporate Tax Act.
((2) ) Fair value reserve of financial assets at FVOCI
The Group decided to recognise changes in the fair value of certain
investments in equity securities in OCI. These changes are accumulated within
the FVOCI reserve under equity. The Group transfers amounts from this reserve
to retained earnings when the relevant equity securities are derecognised.
((3) ) Non-distributable reserve
As required by the Spanish Corporate Tax Act, the Group classify 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, at
the end of 2025 the balance is for an amount of €8.3 million.
((4) ) Distributable reserve
This heading includes the transfer from income for the year attributable to
the parent for 2025.
Share options
Details of share options outstanding as at 31 December 2025:
Grant date Expiry date Exercise price £ Share options
30 Jun 2020 30 Jun 2030 1.475 410,000
24 Jun 2021 23 Jun 2031 3.090 838,000
23 Jun 2022 30 Jun 2027 3.575 910,000
22 May 2023 21 May 2028 3.270 1,040,000
11 June 2024 10 Jun 2029 4.135 1,078,334
20 Dec 2024 19 Dec 2029 3.335 150,000
9 Jul 2025 9 Jul 2030 4.603 1,600,000
Total 6,026,334
Weighted average Share options
exercise price £
At 1 January 2025 3.343 5,423,666
Granted options during the year 4.603 1,600,000
Options executed during the year 3.282 (907,333)
Options expired during the year 3.845 (89,999)
31 December 2025 3.676 6,026,334
Pursuant to the amendment to the LTIP 2020 approved by the Board, during 2025
the Group reassessed the settlement mechanism applicable to certain options
granted to non C-Suite employees. As a result of this reassessment, certain
options that had previously been accounted for as equity-settled share-based
payments were reclassified as cash-settled share-based payments.
In accordance with IFRS 2, at the date of modification the cumulative amount
previously recognised in equity in respect of those awards was reclassified
from the share-based payment reserve to a liability representing the
obligation to settle the awards in cash. This reclassification was recognised
directly within equity. The liability was measured at fair value at the
modification date. Any difference between the fair value of the liability and
the amount reclassified from equity was recognised in profit or loss as a
share-based payment expense.
This reassessment occurred in two stages during the year:
- On 1 January 2025, relating to the options held by certain
employees. The cumulative amount previously recognised in equity of €0.2
million was reclassified and the liability was remeasured at fair value at
that date.
- On 9 September 2025, the Group concluded that the options granted
to the remaining non C-Suite employees were expected to be settled in cash.
The cumulative amount previously recognised in share based reserve of €1.2
million was therefore reclassified to liabilities and the awards were
remeasured at fair value at that date. As a result of this remeasurement, an
additional amount of €2.1 million was recognised, which has been recorded
directly in equity.
Following these modifications, the liability relating to cash-settled
share-based payments is subsequently remeasured at fair value at each
reporting date, with changes in fair value recognised in profit or loss.
As at 31 December 2025, the Group recognised a liability for share-based
payments expected to be settled in cash of €5.2 million (see Nota 26).
During 2025, a total of 907,333 options were exercised and settled in cash,
resulting in cash payments of €2.5 million (see Nota 26). Of this amount,
€1.0 million relates to options exercised prior to the date from which
management concluded that an obligation to settle options in cash had arisen
for non C-Suite employees and was therefore recognised directly against equity
(share-based payment reserve). The remaining €1.5 million relates to awards
accounted for as cash-settled share-based payments following that assessment
The remaining portion of the LTIP 2020 relating to C-Suite participants
continues to be accounted for as equity-settled, with the corresponding
amounts recognised within the share-based payment reserve in equity.
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
9 July 2025 4.603 4.603 37.6% 5 3.96% 1.15% 1.66
The volatility has been estimated based on the underlying volatility of the
price of the Company's shares in the preceding twelve months.
Conditional share awards
As agreed on 24 April 2025, the Company granted conditional share awards under
the Atalaya LTIP 2020 to Directors and PDMRs. These awards are subject to the
achievement of performance conditions over a three-year period and their
continuing employment at that time, after which the shares are granted.
However, they remain subject to a two-year holding period, meaning the
beneficiary may not fully realise or dispose of the shares until the end of
year five.
The conditional share awards granted during the period are summarised below:
Name Role Maximum number of shares awarded Grant date Vesting schedule
Alberto Lavandeira Chief Executive Officer 218,000 23/04/2025 Vesting of 3 years, subject to performance
César Sánchez Chief Financial Officer (PDMR) 113,091 23/04/2025 Same as above
Enrique Delgado Corporate Institutional Adviser (Former GM Riotinto) 112,431 23/04/2025 Same as above
443,522
No consideration was paid for the grant of these awards. Vesting is
conditional on performance criteria and continued employment, as detailed in
the Directors' Remuneration Report section of this consolidated financial
statements. The awards are subject to malus and clawback provisions.
25. Non-controlling interest
(Euro 000's) 2025 2024
Opening balance 2,154 (9,104)
Share of total comprehensive income for the year - 822
Revaluation of NCI (214) 10,436
Closing balance 1,940 2,154
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 2025 and 2024 is as follows:
(Euro 000's) 202 5 2024
Non-current assets 20,284 15,322
Current assets 1,918 1,636
Non-current liabilities (27,148) (21,624)
Grants (167) (177)
Current liabilities (1,771) (960)
Equity 5,803 9,915
(Profit)/loss for the year and total comprehensive income 1,081 (4,112)
Allocation of consolidated intangible assets 3,315 3,315
26. Trade and other payables
(Euro 000's) 31 Dec 2025 31 Dec 2024
Non-current trade and other payables
Other non-current payables 12,506 12,492
Shared-based payment non- financial liability 225
Government grant 1,411 1,491
14,142 13,983
Current trade and other payables
Trade payables 87,938 78,965
Trade payables to shareholders (Note 31.4) 155 109
Share based payment non-financial liability 6,565 -
Accruals 1,873 2,505
VAT payable - -
Other 9,586 8,511
106,117 90,090
As of 31 December 2025, 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).
This amount represents the present value of payments expected to become
payable upon the commencement of commercial production at the project. 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 2026.
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.
Share-based payment liabilities
At 31 December 2025, the Group recognised share-based payment liabilities
totalling €6.8 million in respect of cash-settled share-based payment
arrangements.
These liabilities comprise:
- €1.6 million relating to the 2025 Deferred Cash Incentive Plan,
under which participants receive units that are economically linked to the
Company's share price and that are settled exclusively in cash; and
- €5.2 million relating to share options granted to non C-Suite
employees under the LTIP 2020 that are accounted for as cash-settled
share-based payments (833,195 options).
The liabilities represent the fair value of outstanding awards at the
reporting date and will be remeasured at each reporting date until settlement,
with changes recognised in profit or loss in accordance with IFRS 2.
2025 Deferred Cash Incentive Plan
On 9 March 2026 the Company formally approved the 2025 Deferred Cash Incentive
Plan and granted a number of market-value share-linked units to certain non
C-Suite employees. The plan has an effective date of 9 July 2025 and intent to
replace the annual share option grants historically awarded to non C-Suite
employees under the LTIP 2020 up to and including 2024.
Under the plan, participants receive units that are economically linked to the
Company's share price but are settled exclusively in cash. Each unit
represents a conditional right to receive a cash payment equal to the excess
of the market price of a share over the exercise price.
The exercise price was set at £4.6035 per share, corresponding to the average
of the mid-market closing price of the Company's shares over the five dealing
days preceding 9 July 2025.
The units vest in three tranches: one third vested on the grant date, one
third will vest on 9 July 2026 and the remaining one third will vest on 9 July
2027, subject to continued employment.
Vested units may be exercised until 9 July 2030. Upon exercise, participants
receive a cash payment determined by reference to the market price of the
Company's shares.
Cash settlement of LTIP 2020 options granted to non C-Suite employees
In May 2025, the Board approved an amendment to the LTIP 2020 introducing a
mechanism that allows the Company, at its discretion, to settle certain option
exercises in cash instead of issuing shares.
Based on the settlement practices observed during the year and the assessment
performed by management, from 9 September 2025 share options granted to non
C-Suite employees are accounted for as cash-settled share-based payments in
accordance with IFRS 2. This date reflects the point at which the Group's
settlement practice and the Board's authorisations established an obligation
to settle certain option exercises in cash.
As a result, the Group recognised a liability of €5.2 million at 31 December
2025 representing the fair value of the outstanding awards relating to these
options.
The liability is measured at fair value at each reporting date and will
continue to be remeasured until settlement, with changes recognised in profit
or loss.
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 2025 2024
Average payment days for payment to suppliers 57 28
Ratio of transactions paid 62 31
Ratio of transactions outstanding for payment 28 15
(€m) 2025 2024
Total payments made 259.2 187.8
Total payments made within the legal term 160.3 115.3
Percentage over total payments 62% 80%
Total payments outstanding 44.0 50.8
Number of invoices 2025 2024
Number of invoices within the legal term ((1)) 8,519 7,013
Percentage over total invoices 65% 85%
27. Provisions
(Euro 000's) Other provisions Legal costs Rehabilitation costs Total
31 Dec 2023/1 Jan 2024 750 227 26,691 27,668
Additions - 230 - 230
Use 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 2024/1 Jan 2025 - 395 29,849 30,244
Additions 1,197 - 116 1,313
Use of provision - (150) (819) (969)
Revision of estimates - - (775) (775)
Finance cost (Note 9) - - 796 796
31 Dec 2025 1,197 245 29,167 30,609
(Euro 000's) 2025 2024
Non-Current 28,764 29,328
Current 1,845 916
Total 30,609 30,244
Other provisions - Property tax (IBI) contingency
During 2025, the Huelva Cadastral Office notified Atalaya Riotinto Minera,
S.L.U., subsidiary of the Group, of a revision of the cadastral value of
certain properties from €5.2 million to €90.1 million, effective from 30
December 2021. The Group has challenged this revision and an
economic-administrative appeal has been filed before the Regional
Economic-Administrative Court of Andalusia, which remains pending resolution
at the date of approval of these financial statements.
Following the revision, additional property tax assessments relating to the
years 2022 to 2025 amounting to €3.4 million were issued by the Huelva
Provincial Tax Authority. These assessments were paid in January 2026 in order
to avoid late payment interest while the Group continues to challenge the
underlying cadastral valuation.
The maximum potential exposure associated with this matter is estimated at
approximately €4.4 million. Based on the assessment performed by management
and its external advisors, the Group has recognised a provision of €1.2
million, included within "Other provisions", representing management's best
estimate of the probable obligation at the reporting date. The final outcome
of this matter remains uncertain and may differ from the estimate recorded.
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 2025 was 3.67% (2024: 3.23%), which is the 15-year
Spain Government Bond rate for 2025. An inflation rate of 2%-2.90% (2024:
2%-2.80%) is applied on annual basis. *The effect of both rates included in
the revision of estimates above.
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 6,112 19,304 3,751
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 2025. Management has
reviewed individually each case and made a provision of €245k (€395k in
2024) for these claims, which has been reflected in these consolidated
financial statements.
28. Leases
(Euro 000's) 31 Dec 2025 31 Dec 2024
Non-current
Leases 3,834 3,320
3,834 3,320
Current
Leases 639 481
639 481
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 Lease liabilities
(Euro 000's) Lands and buildings
As at 1 January 2025 3,957 3,801
Additions 1,237 1,237
Depreciation expense (562) -
Interest expense - 21
Payments - (586)
As at 31 December 2025 4,632 4,473
The amounts recognised in profit or loss, are set out below:
Twelve Twelve months ended
months ended 31 Dec
31 Dec 2024
(Euro 000's) 2025
As at 31 December
Depreciation expense of right-of-use assets (562) (440)
Interest expense on lease liabilities (21) (30)
Total amounts recognised in profit or loss (583) (470)
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 2025, the remaining term of this lease is eight years.
(Note 2).
Present value of minimum lease payments due 31 Dec 2025 31 Dec 2024
€'000 €'000
Within one year 639 481
2 to 5 years 2,464 1,856
Over 5 years 1,370 1,464
4,473 3,801
Minimum lease payments due 31 Dec 2025 31 Dec 2024
€'000 €'000
Within one year 654 518
2 to 5 years 2,615 2,075
Over 5 years 1,524 1,729
4,793 4,322
(Euro 000's) Lease liability
Balance 1 January 2025 3,801
Additions 1,237
Interest expense 21
Lease payments (586)
Balance at 31 Dec 2025 4,473
Balance at 31 Dec 2025
- Non-current liabilities 3,834
- Current liabilities 639
4,473
29. Borrowings
(Euro 000's) 2025 2024
Non-current borrowings
Credit facilities - variable interest 5,708 10,866
5,708 10,866
Current borrowings
Credit facilities - variable interest 38,638 6,921
38,638 6,921
The Group had credit approval for unsecured facilities totalling €97.2
million (€97.4 million at 31 December 2024). During 2025, Atalaya drew down
some of its existing credit facilities to finance the solar plant, payable
amount of €9.0 million at 31 December 2025 (2024: €13.9 million) and for
the construction of a new part of the processing plant payable amount of
€1.9 million at 31 December 2025 (2024: €2.8 million). The increase in
short term borrowings at the end of the period is the result of temporary
credit facility drawdowns to finance the settlement of an intercompany loan.
Margins on borrowings with variable interest rates in 2025, usually 3 months
EURIBOR and 12 months EURIBOR, range from 0.90% to 1.93% with an average
margin of 1.25%.
At 31 December 2025, the Group had used €44.4 million of its facilities and
had undrawn facilities of €43.8 million.
29(a) Net cash 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 2025 2024
Cash and cash equivalents 166,306 52,878
Borrowings - repayable within one year (38,638) (6,921)
Borrowings - repayable after one year (5,708) (10,866)
Lease (4,473) (3,801)
Net cash 117,487 31,290
€'000 Cash Borrowings Lease Total
Net cash as at 1 January 2024 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 cash as at 31 December 2024 52,878 (17,787) (3,801) 31,290
Financing cash flows 120,857 - - 120,857
Proceeds from borrowings - (37,916) - (37,916)
Repayment of borrowings - 11,357 565 11,922
Foreign exchanges adjustments (7,429) - - (7,429)
Other changes
Interest paid - 1,238 21 1,259
Interest expense - (1,238) (21) 1,259
Other changes (Note 28) - - (1,237) (1,237)
Net cash as at 31 December 2025 166,306 (44,346) (4,473) 117,487
30. Acquisition, incorporation and disposals of subsidiaries
2025
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.
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.
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) 2025 2024
Directors' remuneration and fees 1,252 1,275
Director's bonus ((1)) 407 294
Share based benefits to Directors 852 409
Share award benefits to Directors 160 -
Key management personnel remuneration ((2)) 857 598
Key management bonus ((1)) 343 325
Share based and other benefits to key management personnel ((3)) 1,830 409
Share award benefits to key management 115 -
5,816 3,310
((1)) These amounts related to the performance bonus for 2025 (and 2024 in
respect of the comparatives) approved by the Board of Directors following the
proposal of the Remuneration Committee.
((2)) Includes wages and salaries of key management personnel of €1,263k
(2024: €568k) and other benefits of €30k (2024: €30k).
((3)) Includes the expense recognised in 2025 in respect of the 2025 Deferred
Cash Incentive Plan granted to certain members of key management, as well as
€0.9 million recognised from the remeasurement of share options granted to
non C-Suite employees as result of the introduction of the cash settlement
mechanism under the LTIP 2020. Further details are provided in Note 24.
At 31 December 2025 amounts due to Directors, as from the Company, are €nil
(€nil at 31 December 2024) and €nil (€nil at 31 December 2024) to key
management.
Effective 1 January 2025, the Group included the General Manager of Proyecto
Touro as a member of its key management personnel. The decision reflected the
formal creation of the role and its strategic relevance, as the position
entails direct responsibility over the planning, direction and control of all
operational and development activities at Proyecto Touro. On 24 July 2025,
Fernando Araúz de Robles Villalón was appointed General Manager of Proyecto
Riotinto, succeeding Enrique Delgado, thereby becoming a member of key
management from that date
Share-based benefits
In 2025, the Company granted new conditional share awards under the Atalaya
Mining Long-Term Incentive Plan 2020, which was approved by shareholders at
the Annual General Meeting on 25 June 2020. These awards are subject to
performance conditions measured over a three-year period and a subsequent
two-year holding period following vesting. The awards were granted on 24 April
2025 at a market price of 358.60 pence per share and were made to certain
members of senior management and PDMRs.
The maximum number of shares conditionally awarded was as follows:
Chief Executive Officer (Director): 218,000 shares
Chief Financial Officer (PDMR): 113,091 shares
General Manager Riotinto (PDMR): 112,431 shares
The awards will vest subject to the extent to which performance conditions are
satisfied and continued employment. No consideration was paid for the grant.
The total charge recognised in the period 2025 in respect of these awards
amounted to €0.3 million.
Also during the period, the Company granted a total of 1,600,000 share options
to Persons Discharging Managerial Responsibilities (PDMRs) at an exercise
price of 460.35 pence per share and an expiry date of 9 July 2030 under the
Long Term Incentive Plan 2020 (LTIP20). The options vest 1/6th on grant, 1/3rd
on the first anniversary and 50% on the second anniversary, subject to
performance conditions, and expire on 9 July 2030.
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).
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 2025 the Directors and key management personnel have not been granted
any bonus shares (2024: 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) 2025 2024
Trafigura Pte Ltd - Revenue from contracts ((a)) 202,437 73,433
Gains/(Losses) relating provisional pricing within sales 2,985 (3,757)
205,422 69,676
Impala Terminals Huelva S.L.U. - Port Handling and Warehousing services ((b)) (2,377) (2,201)
Related parties - total amounts from contracts 203,045 67,475
(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 2025, the Company completed 6 sales transactions under the terms of the
Offtake Agreements valued at €65.7 million (2024: 10 sales valued at €71.6
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 2025, the Company completed 10 spot sales with Trafigura valued at €139.7
million (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.).
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
The Group has in place a port handling, storage and shipping services
agreement with Impala Terminals Huelva S.L.U. ("Impala Terminals") in respect
of copper concentrates produced from Proyecto Riotinto.
The agreement covers export concentrate volumes that are not committed under
the Group's offtake arrangements, as well as volumes committed to the
Trafigura Group under its offtake agreement. The agreement remains in force at
31 December 2025.
Impala Terminals forms part of the Trafigura Group, which is under joint
control. As a result, Impala Terminals is considered a related party of the
Group in accordance with IAS 24 Related Party Disclosures.
The Group reassessed its relationship with Impala Terminals in prior periods
and concluded that the criteria for related party classification are met. This
assessment remains unchanged at 31 December 2025.
Transactions with Impala Terminals are conducted under normal commercial terms
and on an arm's length basis, consistent with arrangements that would be
entered into with independent third parties.
The amounts recognised during the year and outstanding balances at 31 December
2025 and 2024 are presented in Notes 31.3 and 31.4.
31.4 Year-end balances with shareholders and their joint ventures
(Euro 000's) 31 Dec 2025 31 Dec 2024
Receivable from shareholder (Note 20)
Trafigura Pte. Ltd 1,042
- Debtor balance- subject to provisional pricing 15,770
15,770 1,042
Payable from joint venture of shareholder (Note 26)
Impala Terminals Huelva S.L.U. - Payable balance (155) (109)
(155) (109)
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 2025 and 31 December 2024, 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) 2025 2024
Fees payable for the audit of the Group and individual accounts 332 401
Other non-audit services 59 70
391 471
For the year 2025, the audit services related to the audit of the British
subsidiaries were performed by Rayner Essex LLP, amounting to GBP 41 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
The global macroeconomic environment continued to be impacted by a variety of
factors, including geopolitical tensions, economic uncertainty and several
regional conflicts. Sanctions and various trade barriers, such as tariff
policies and export restrictions for critical inputs and technologies, have
the potential to disrupt supply chains and increase input costs. Uncertainties
around global economic growth and persistent inflation continue to impact
fiscal policy in major economies and result in currency fluctuations.
Combined, these macroeconomic factors are expected to lead to continued
volatility in commodity prices, impacting both Atalaya's revenues and
operating costs.
· 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.
· On 8 April 2025, Atalaya announced that it received notification
that Jesús Fernández, a PDMR, purchased 32,000 ordinary shares of €0.09
nominal value each in the Company at an average price of 307.98 pence per
share.
· On 24 April 2025, conditional share awards were granted under the
Company's Long- Term Incentive Plan to the CEO (218,000 shares), CFO (113,091
shares) and General Manager Riotinto (112,431 shares), subject to performance
conditions and vesting terms.
· On 2 May 2025, Atalaya was notified by FTSE Russell of its
inclusion in the FTSE 250 Index, effective from 7 May 2025, following the
removal of International Distribution Services.
· On 15 May 2025, Atalaya received the AAU from the Junta de
Andalucía for the San Dionisio deposit, enabling future expansion of mining
activities at Proyecto Riotinto.
· On 4 June 2025, Atalaya announced that Hussein Barma, an
independent non-executive director of the Company, was appointed as a
non-executive director of Eldorado Gold Corporation with immediate effect.
· On 24 June 2025, following the retirement of Hussein Barma and the
appointment of Hennie Faul as Director, Atalaya updated the composition of its
board committees, with Hennie now serving as a member of the Audit and
Physical Risk Committees.
· On 10 July 2025, Atalaya granted share options under its LTIP 2020
to CEO and Director Alberto Lavandeira (800,000), CFO César Sánchez
(400,000) and Riotinto General Manager Enrique Delgado (400,000), at an
exercise price of 460.35p. The options vest 1/6th on grant, 1/3rd on the first
anniversary and 50% on the second anniversary, subject to performance
conditions, and expire on 9 July 2030.
· On 23 July 2025, Atalaya paid the 2024 final dividend approved by
shareholders at the 2025 AGM.
· On 24 July 2025, Fernando Araúz de Robles Villalón was appointed
General Manager of Proyecto Riotinto, succeeding Enrique Delgado.
· On 11 August 2025, the Company's Board of Directors elected to
declare a 2025 Interim Dividend of €0.044 per ordinary share, which is
equivalent to approximately US$0.051 or £0.038 per share.
· On 1 October 2025, Ithaki Limited, shareholder of the Company,
increased its voting rights from 6.99% to 8.34%.
· On 3 October 2025, Cobas Asset Management, SGIIC, S.A., shareholder
of the Company, decreased its voting rights from 15.04% to 14.47%.
· On 10 October 2025, Atalaya paid the 2025 interim dividend approved
by the Company's Board of Directors.
· On 5 December 2025, Muza Gestión de Activos, S.G.I.I.C., S.A.,
shareholder of the Company, decreased its voting rights from 3.12% to 2.95%.
· On 19 December 2025, Atalaya provided an update on the shareholders
consultation following the outcome of the Annual General Meeting on 24 June
2025. All resolutions put to the meeting were successfully passed with the
requisite majority of votes, although four resolutions received less than 80%
shareholder support: re-election of Jesús Fernández, approval of director's
remuneration report, approval of grant of awards pursuant to the long-term
incentive plan and approval of the grant of a one-off transitional award to
the CEO.
· On 30 December 2025, Atalaya announced that its board of directors
intended to appoint Dr Michael ("Mike") Graham Armitage as an independent non
- executive director with effect from 19 January 2026. Mike will replace Steve
Scott who will be stepping down on 31 December 2025.
36. Events after the reporting period
· On 5 January 2026, Cobas Asset Management, S.G.I.I.C., S.A.,
shareholder of the Company, decreased its voting rights from 14.47% to 9.89%.
· On 27 January 2026 Atalaya announced a proposed equity offering to
raise gross proceeds of £130 million (approximately €150 million) by way of
an institutional placing and a separate retail offer. Proceeds from the
Fundraise will allow Atalaya to accelerate the development of its copper
growth projects in Spain in order to capitalise on strong copper market
fundamentals. The fundraise will also provide the Company with financial
flexibility to optimise the ultimate funding package for Proyecto Touro while
concurrently advancing its growth pipeline primarily in the Riotinto District.
· On 28 January 2026, Atalaya announced that it has successfully
placed 12,730,000 new ordinary Shares in the Company with new institutional
investors and existing shareholders at a price of £ 10.00 per Placing share
raising gross proceeds of £127.3 million. Eligible retail investors have
subscribed in the offer made by the Company via RetailBook for a total of
270,000 new Ordinary Shares at the Placing Price raising gross proceeds of
£2.7 million. Mike Amitage, a non- executive director of the Company,
subscribed for 4,000 new Ordinary Shares as part of the Retail Offer.
Following Admission, Mr Armitage will hold 4,695 Ordinary Shares. In total,
13,000,000 Offer Shares have been subscribed for at the Placing Price raising
gross proceeds of £130 million (equivalent to approximately €150 million).
The Offer Shares represent, in aggregate, approximately 9.2% of the Company's
issued Ordinary Share capital prior to the Fundraise.
· On 3 February 2026, Urion Holdings (Malta) Limited (Trafigura), a
member of the Trafigura Group, shareholder of the Company, announced its
intention to sell approximately 13 million ordinary shares with a nominal
value of €0.09 each. As of 2 February 2026, the Placing Shares represent
approximately 8.5% of the Company's issued share capital.
· On 4 February 2026, Urion Holdings (Malta) Limited (Trafigura), a
member of the Trafigura Group, shareholder of the Company, announced that
agreed to sell in aggregate 14,000,000 Placing Shares at the price of 945
pence per share, raising aggregate gross proceeds of approximately £132
million. Following settlement of the Placing, Urion Holdings (Malta) Limited
(Trafigura), shareholder of the Company, decreased its voting rights to
10.94%.
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