REG - Atalaya MiningCopper - Q2 and H1 2025 Financial Results
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RNS Number : 8692U Atalaya Mining Copper, S.A. 12 August 2025
12 August 2025
Atalaya Mining Copper, S.A.
("Atalaya" or the "Company")
Q2 and H1 2025 Financial Results
Record quarterly EBITDA, strong free cash flow and positive guidance revisions
Atalaya Mining (LSE: ATYM) is pleased to announce its unaudited second quarter
and first half financial results for the period ended 30 June 2025 ("Q2 2025"
and "H1 2025" respectively) together with its interim financial statements.
Highlights
· Copper production of 13.2 kt in Q2 2025 and 27.5 kt in H1 2025, due
to improved grades and good plant performance
· AISC of US$2.81/lb in Q2 2025 and US$2.78/lb in H1 2025, thanks to
higher production and lower offsite costs
· EBITDA of €55.1 million in Q2 2025 and €107.6 million in H1
2025, which are new quarterly and half year records for Atalaya
· Balance sheet further strengthened with a net cash position of
€70.1 million, which will support Atalaya's ongoing investments in its
growth projects in Spain
· 2025 interim dividend of €0.044 per share declared
· Strong performance in H1 2025 supports Atalaya's full-year outlook,
where positive revisions have been made to production and cost guidance
Q2 and H1 2025 Financial Results Summary
Period ended 30 June Unit Q2 2025 Q2 2024 H1 2025 H1 2024
Revenues from operations €k 124,082 92,208 254,750 162,146
Operating costs €k (69,004) (65,781) (147,158) (125,468)
EBITDA €k 55,078 26,427 107,592 36,678
Profit for the period €k 29,597 14,520 60,064 16,147
Basic earnings per share € cents/share 21.1 10.8 42.7 12.2
Interim dividend declared per share ((1)) €/share n/a n/a 0.0440 0.0362
Cash flows from operating activities €k 52,238 30,126 78,277 28,389
Cash flows used in investing activities €k (19,374) (17,054) (41,773) (34,931)
Cash flows from financing activities €k 1,294 (18,862) 14,889 (35,671)
Net cash position ((2)) €k 70,078 53,361 70,078 53,361
Working capital surplus €k 92,246 63,408 92,246 63,408
Average realised copper price US$/lb 4.27 4.54 4.27 4.26
(excluding QPs)
Copper concentrate produced tonnes 77,088 60,623 157,258 113,308
Copper production tonnes 13,175 11,583 27,466 22,249
Cash Costs US$/lb payable 2.21 2.88 2.23 2.93
All-In Sustaining Costs ("AISC") US$/lb payable 2.81 3.20 2.78 3.19
(1) Interim dividends declared in relation to the H1 2025 and H1 2024
periods.
(2) Includes restricted cash and bank borrowings at 30 June 2025 and
30 June 2024.
Alberto Lavandeira, CEO, commented:
"We are pleased with our performance during the first half of 2025. Good
production and cost control have resulted in quarterly and half year records
for EBITDA, and our net cash position has further improved thanks to strong
free cash flow generation. As a result, our board has declared an interim
dividend of €0.044 per share.
Given the performance in 2025 so far, we are also pleased to announce positive
revisions to our production and unit cost guidance.
Activity is increasing at our various copper growth projects. At San Dionisio,
mining is accelerating following the environmental authorisation in May 2025.
At Masa Valverde, we recently announced notable drilling results for the
high-grade copper zones, which are expected to be the focus for initial
development. At Touro, we have received many positive reports from the
different administrative bodies related to the environmental impact review,
and we remain confident of a positive outcome in the coming months.
In summary, H1 2025 was a good start to the year and we look forward to
delivering further consistent performance and advancing our exciting growth
pipeline."
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 BST.
To access the SparkLive webcast, please visit:
Atalaya Mining Q2 and H1 2025 Results | SparkLive | LSEG
(https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.sparklive.lseg.com%2FAtalayaMining%2Fevents%2F30af9080-6bca-448f-b3c0-4185ab68eff2&data=05%7C02%7Cmichael.rechsteiner%40atalayamining.com%7C9b8fa997a76f4a339a0808ddc8567af6%7Cc8a387f772f64a3880d3a42d91fe8257%7C0%7C0%7C638886995986118230%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=4AmwKn1k%2B5hLpbd67MT4PPl1ypB3V3gCSFqoLnWPV0E%3D&reserved=0)
Investor Meet Company Presentation
In addition, the Company will provide a live presentation via the Investor
Meet Company platform today at 10:00 BST.
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.
Q2 and H1 2025 Operating Results Summary
Unit Q2 2025 Q2 2024 H1 2025 H1 2024
Ore mined tonnes 3,512,257 3,797,923 7,223,300 7,499,752
Waste mined ((1)) tonnes 12,648,006 7,507,378 23,959,290 13,047,055
Ore processed tonnes 3,996,573 4,086,408 8,218,464 7,826,501
Copper grade % 0.43 0.33 0.42 0.33
Copper concentrate grade % 17.09 19.11 17.47 19.64
Copper recovery % 76.75 85.81 78.90 85.30
Copper concentrate produced tonnes 77,088 60,623 157,258 113,308
Copper production tonnes 13,175 11,583 27,466 22,249
Payable copper production tonnes 12,404 10,976 25,894 21,116
Cash Costs US$/lb payable 2.21 2.88 2.23 2.93
All-in Sustaining Costs US$/lb payable 2.81 3.20 2.78 3.19
(1) Represents the Cerro Colorado pit only.
Mining
Ore mined was 3.5 million tonnes in Q2 2025 (Q2 2024: 3.8 million tonnes) and
7.2 million tonnes in H1 2025 (H1 2024: 7.5 million tonnes).
Waste mined was 12.6 million tonnes in Q2 2025 (Q2 2024: 7.5 million tonnes)
and 24.0 million tonnes in H1 2025 (H1 2024: 13.0 million tonnes). In
addition, waste stripping activities continued at the San Dionisio area.
Processing
The plant processed ore of 4.0 million tonnes in Q2 2025 (Q2 2024: 4.1 million
tonnes) and 8.2 million tonnes in H1 2025 (H1 2024: 7.8 million tonnes). The
next SAG mill liner change will be completed in Q3 2025.
Copper grade was 0.43% in Q2 2025 (Q2 2024: 0.33%) and 0.42% in H1 2025 (H1
2024: 0.33%).
Copper recovery was 76.75% in Q2 2025 (Q2 2024: 85.81%) and 78.90% in H1 2025
(H1 2024: 85.30%). Recoveries in H1 2025 were impacted by the characteristics
of certain ores, however, this material contributed much higher grades than
the average plant feed during the period.
Production
Copper production was 13,175 tonnes in Q2 2025 (Q2 2024: 11,583 tonnes) and
27,466 tonnes in H1 2025 (H1 2024: 22,249 tonnes), mainly as a result of
higher copper grades but partly offset by lower recoveries.
On-site copper concentrate inventories were 9,820 tonnes at 30 June 2025 (31
March 2025: 19,031 tonnes).
Copper contained in concentrates sold was 14,024 tonnes in Q2 2025 (Q2 2024:
11,397 tonnes) and 28,711 tonnes in H1 2025 (H1 2024: 21,683 tonnes).
Cash Cost and AISC Breakdown
US$/lb Cu payable Q2 2025 Q2 2024 H1 2025 H1 2024
Mining 0.88 1.04 0.86 1.01
Processing 0.77 0.83 0.79 0.87
Other site operating costs 0.69 0.63 0.59 0.65
Total site operating costs 2.33 2.50 2.24 2.53
By-product credits (0.40) (0.23) (0.32) (0.19)
Freight, treatment charges and other offsite costs 0.29 0.61 0.31 0.58
Total offsite costs (0.12) 0.38 (0.01) 0.40
Cash Costs 2.21 2.88 2.23 2.93
Cash Cost 2.21 2.88 2.23 2.93
Corporate costs 0.06 0.12 0.09 0.11
Sustaining capital (excluding tailings expansion) 0.02 0.05 0.04 0.03
Capitalised stripping costs ((1)) 0.41 0.06 0.33 0.03
Other costs 0.10 0.09 0.09 0.08
AISC 2.81 3.20 2.78 3.19
(1) Represents the Cerro Colorado pit only.
Note: Some figures may not add up due to rounding.
Cash Costs were US$2.21/lb payable copper in Q2 2025 (Q2 2024: US$2.88/lb) and
US$2.23/lb payable copper in H1 2025 (H1 2024: US$2.93/lb), with the 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$2.81/lb payable copper in Q2 2025 (Q2 2024: US$3.20/lb) and
US$2.78/lb payable copper in H1 2025 (H1 2024: US$3.19/lb), with the decrease
in costs due to the same factors that impacted Cash Costs but partly offset by
higher capitalised stripping. AISC excludes investments in the tailings dam
(consistent with prior reporting) and waste stripping at the San Dionisio
area.
Q2 and H1 2025 Financial Results Highlights
Income Statement
Revenues were €124.1 million in Q2 2025 (Q2 2024: €92.2 million) and
€254.8 million in H1 2025 (H1 2024: €162.1 million), as a result of higher
copper concentrate sales and lower offsite costs.
Operating costs were €69.0 million in Q2 2025 (Q2 2024: €65.8 million) and
€147.2 million in H1 2025 (H1 2024: €125.5 million), as a result of higher
mining and processing rates.
EBITDA was €55.1 million in Q2 2025 (Q2 2024: €26.4 million) and €107.6
million in H1 2025 (H1 2024: €36.7 million), which represent new quarterly
and half year records for Atalaya.
Profit after tax was €29.6 million in Q2 2025 (Q2 2024: €14.5 million) or
21.1 cents basic earnings per share (Q2 2024: 10.8 cents) and €60.1 million
in H1 2025 (H1 2024: €16.1 million) or 42.7 cents basic earnings per share
(H1 2024: 12.2 cents).
Cash Flow Statement
Cash flows from operating activities before changes in working capital were
€55.3 million in Q2 2025 (Q2 2024: €26.8 million) and €52.2 million
after working capital changes (Q2 2024: €30.1 million). For H1 2025, cash
flows from operating activities before changes in working capital were
€108.1 million (H1 2024: €38.3 million) and €78.3 million after working
capital changes (H1 2024: €28.4 million).
Cash flows used in investing activities were €19.4 million in Q2 2025 (Q2
2024: €17.1 million) and €41.8 million in H1 2025 (H1 2024: €34.9
million). Key investments in Q2 2025 included €0.5 million in sustaining
capex, €9.9 million in capitalised stripping at Cerro Colorado, €2.2
million related to the San Dionisio area, €4.0 million to expand the
tailings dam and €0.2 million for the solar plant. In addition, €0.4
million was invested in the E-LIX Phase I Plant.
Cash flows from financing activities were positive €1.3 million in Q2 2025
(Q2 2024: negative €18.9 million) and positive €14.9 million in H1 2025
(H1 2024: negative €35.7 million), as a result of temporary credit facility
drawdowns to finance the settlement of an intercompany loan.
Balance Sheet
The Company's balance sheet remains strong with consolidated cash and cash
equivalents of €103.0 million as of 30 June 2025 (31 December
2024: €52.9 million).
Current and non-current borrowings were €32.9 million, resulting in a net
cash position of €70.1 million as of 30 June 2025 (31 December
2024: €35.1 million).
Inventories of concentrate valued at cost were €10.2 million at 30 June 2025
(31 December 2024: €19.7 million). The total working capital surplus was
€92.2 million at 30 June 2025 (31 December 2024: €44.7 million).
Outlook for 2025
Production
Updated copper production guidance for FY2025 is 49,000 - 52,000 tonnes, up
from 48,000 - 52,000 tonnes, as a result of the strong performance in H1 2025.
Full year production is still expected to be weighted slightly towards H1 2025
as a result of pit sequencing.
Operating Costs
Updated guidance for FY2025 Cash Costs and AISC are as follows:
· Cash Costs range of US$2.60 - 2.80/lb copper payable, down from
US$2.70 - 2.90/lb
· AISC range of US$3.10 - 3.30/lb copper payable, down from US$3.20 -
3.40/lb
Euro-denominated costs were well-controlled in H1 2025, however, the stronger
EUR/USD exchange rate is expected to be a headwind for USD-denominated metrics
in H2 2025.
Expected costs associated with waste stripping at the San Dionisio area in H2
2025 are now included in the guidance for Cash Costs and AISC, having been
reallocated from the non-sustaining capital investment guidance shown below.
AISC guidance continues to exclude investments in the tailings dam, consistent
with prior reporting.
Non-Sustaining Capital Investments
Updated guidance for FY2025 non-sustaining capital investments is €29 - 37
million, down from €58 - 82 million.
Key changes include the reallocation of expected San Dionisio H2 2025 waste
stripping costs to Cash Costs and AISC, and the expected deferral into 2026 of
certain expenditures related to the road relocation and the Proyecto Masa
Valverde access ramp.
Exploration Expenditures
Updated guidance for FY2025 exploration expenditures is €8 - 12 million, up
from €6 - 8 million. The main expenditures are associated with Proyecto Masa
Valverde, the San Antonio deposit and the earn-in commitments with MPS in
Sweden.
2025 Interim Dividend
Atalaya has a dividend policy that seeks to provide capital returns to its
shareholders and allows for continued investments in the Company's portfolio
of growth projects. Dividends are payable in two half-yearly instalments.
In relation to H1 2025, the Company's Board of Directors has elected to
declare an interim dividend of €0.044 per ordinary share ("2025 Interim
Dividend"), which is equivalent to approximately US$0.051 or £0.038 per
share. This compares to the 2024 interim dividend of €0.0362 (or US$0.040
and £0.0306) per share.
2025 Interim Dividend Timetable
Event Date
Ex-dividend date 11 September 2025
Record date 12 September 2025
Estimated payment date 10 October 2025
Corporate Activities Update
Indexation
Effective from 7 May 2025, Atalaya's shares were added to the FTSE 250
Index. This milestone is expected to enhance the Company's visibility to
institutional investors.
2025 Annual General Meeting ("AGM")
All resolutions put to the Company's 2025 AGM were passed by the requisite
majorities, including the approval of the 2024 Final Dividend
of US$0.03 (€0.0275) per share, which was paid to holders of CREST
Depository Interests on 23 July 2025.
Board of Directors
Following the conclusion of the Company's 2025 AGM, Hussein Barma stepped
down as an independent non-executive director and Hennie Faul was appointed
as an independent non-executive director of the Company. As a result, several
changes were made in relation to the composition of the Board's various
committees.
Senior Management Changes
In July 2025, Fernando Araúz de Robles Villalón was appointed General
Manager of Proyecto Riotinto, succeeding Enrique Delgado. Fernando Araúz is a
mining engineer (Polytechnic University of Madrid) with over 20 years of
experience with leading multinational companies, and participated in the
re-start of Proyecto Riotinto.
Enrique Delgado, who served as General Manager of Proyecto Riotinto since May
2019, will continue as an advisor to Atalaya and vice president of the Atalaya
Riotinto Foundation. The Company would like to thank Enrique for his many
years of dedicated service.
Asset Portfolio Update
Proyecto Riotinto
On 15 May 2025, San Dionisio was granted the Unified Environmental
Authorisation (or in Spanish, Autorización Ambiental Unificada ("AAU")) by
the Junta de Andalucía ("JdA"), which allows for the expansion of mining
activities. During Q2 2025, waste stripping activities continued at San
Dionisio with total material mined of 1.0 million tonnes, and in H2 2025,
mining activities are expected to accelerate. 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.
With respect to the planned relocation of the A-461 road that currently runs
between Cerro Colorado and San Dionisio, the project is progressing well and
major works are expected during H2 2025.
At San Antonio, the polymetallic deposit located immediately east of the
Cerro Colorado pit, an infill and step-out drilling programme began in June.
E-LIX Phase I Plant
Ramp-up activities continued at the E-LIX Phase I plant. During Q2 2025,
further progress was made in relation to optimising and debottlenecking the
circuits to increase capacity, with the novel leaching section continuing to
perform well. Focus remains on leaching the zinc contained within Atalaya's
copper concentrates due to the low copper treatment charge environment,
thereby producing upgraded copper concentrates and zinc precipitates.
Once fully operational, the E-LIX plant is expected to produce high-purity
copper or zinc metals and intermediate products (such as metal precipitates)
on site, allowing the Company to potentially achieve higher metal recoveries
from complex polymetallic ores, lower transportation charges and a reduced
carbon footprint.
Riotinto District - Proyecto Masa Valverde ("PMV")
On 10 July 2025, the Company announced results from its ongoing drilling
programme at PMV, where two rigs are active and are focused on infill and
extensional drilling at the Masa Valverde deposit.
Notable high-grade copper zone drilling results included 25 metres at 2.93% Cu
(MJ65), 46 metres at 2.11% Cu (MJ76) and 26 metres at 2.78% Cu (MJ79),
including 10 metres at 4.39% Cu. The results are primarily associated with
stockwork-style mineralisation, which is expected to be amenable for
processing at the existing Riotinto facilities. Recent drilling supports
Atalaya's initial focus on the Masa Valverde copper zones, which are expected
to be mined via the planned access ramp. Development of the access ramp is
expected to begin following the resolution of certain surface rights matters,
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. 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 has
addressed the feedback from the public information period, and most sectoral
reports from the Xunta de Galicia have been finalised, with only three reports
still pending. The company has also responded to requests for additional
information and is awaiting the corresponding replies. Progress on the
planned power transmission line continues, with agreements already secured
with a significant number of landowners.
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. The Company has also intensified its recruitment
initiatives in relation to its potential future workforce.
Plant engineering is progressing, focused on cost optimisation. Additionally,
the search for contractors has started. Finally, infill and step-out drilling
programmes continue, with the objective of determining the limits of mineral
orebodies both at depth and laterally.
Proyecto Ossa Morena
A step-out drilling programme is underway at the flagship Alconchel-Pallares
copper-gold project.
Proyecto Riotinto East
Gravimetric ground surveys have been completed in order to better define
future drill targets on the East Belt extension, and soil geochemistry works
are nearing completion at two targets.
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 winter drilling programmes, complete assays are still pending.
At Bjurtraskgruvan, encouraging results from step-out drilling have been
received, including:
· 25SBJK015:
‒ From 299.50m, 8.65m at 0.42% Cu, 1.49% Zn, 4.94g/t Ag, 0.12g/t Au
(including 2.45m at 0.25% Cu, 4.78% Zn, 5.99g/t Ag, 0.19g/t Au)
· 25SBJK016:
‒ From 263.35m, 4.25m at 0.16% Cu, 7.93% Zn, 4.80g/t Ag, 0.23g/t Au
(including 1.70m at 0.06% Cu, 18.51% Zn, 5.24g/t Ag, 0.38g/t Au)
‒ From 275.65m, 8.65m at 0.61% Cu, 2.66% Zn, 12.21g/t Ag, 0.47g/t Au
(including 3.85 m at 0.67% Cu, 4.25% Zn, 14.65g/t Ag, 0.82 g/t Au)
· 25SBJK017:
‒ From 98.20m, 4.50m at 1.84% Cu, 0.12% Zn, 14.36g/t Ag, 0.14g/t Au
(including 1.20m at 5.14% Cu, 0.30% Zn, 39.6g/t Ag, 0.40g/t Au)
‒ From 163.75m, 10.65m at 2.21% Cu, 0.29% Zn, 10.89g/t Ag, 0.18g/t
Au (including 2.95m at 6.35% Cu, 0.70% Zn, 31.79g/t Ag, 0.39g/t Au)
Additionally, results from a geophysical Borehole TEM (BHEM) survey in the new
Bjurtraskgruvan drill holes indicate that the "plates" are more extensive than
originally thought, potentially increasing the size of the deposit. Further
testing will be completed in the winter 2025-2026 drilling season.
An airborne electromagnetic survey (VTEM) has been completed in order to
provide detailed coverage of the Mid-Skellefte Belt, with results and
preliminary interpretation expected in late 2025.
Technical Information
The technical information in this announcement that relates to Proyecto Masa
Valverde and the Skellefte Belt Project has been compiled by Juan Manuel
Pons Pérez, senior geologist and employee of the Company. Juan Manuel Pons
Pérez has over 35 years' experience, is a member of good standing with
the College of Geologists of Andalucía and has sufficient experience that
is relevant to the style of mineralisation and type of deposit under
consideration and to the activity being undertaken to qualify as a Competent
Person. Juan Manuel Pons Pérez consents to the inclusion in this release of
the matters based on his information in the form and context in which it
appears.
This announcement contains information which, prior to its publication
constituted inside information for the purposes of Article 7 of Regulation
(EU) No 596/2014.
Contacts:
SEC Newgate UK Elisabeth Cowell / Tom Carnegie / Gwen Samuel +44 20 3757 6882
Atalaya Mining Michael Rechsteiner +34 959 59 28 50
About Atalaya Mining Copper, S.A.
Atalaya is a European copper producer that owns and operates the Proyecto
Riotinto complex in southwest Spain. Atalaya's shares trade on the London
Stock Exchange's Main Market under the symbol "ATYM" 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
(https://atalayamining.com/)
ATALAYA MINING COPPER, S.A.
MANAGEMENT'S REVIEW AND
UNAUDITED CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
30 June 2025
Management review report
Notice to Reader
The accompanying Unaudited Condensed Consolidated Interim Financial Statements
of Atalaya Mining Copper, S.A. have been prepared by and are the
responsibility of its 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", the
"Company" and/or "Group"), to enable the reader to assess material changes in
the financial position between 31 December 2024 and 30 June 2025 and results
of operations for the three and six months ended 30 June 2025 and 2024.
This report has been prepared as of 11 August 2025. The analysis hereby
included is intended to supplement and complement the Unaudited Condensed
Consolidated Interim Financial Statements and notes thereto ("Financial
Statements") as at and for the period ended 30 June 2025. The reader should
review the Financial Statements in conjunction with the review of this report
and with the audited, consolidated financial statements for the year ended 31
December 2024, and the Unaudited Condensed Consolidated Interim Financial
Statements for the period ended 30 June 2024. These documents can be found on
Atalaya's website at www.atalayamining.com (http://www.atalayamining.com)
Atalaya prepares its Annual Financial Statements in accordance with
International Financial Reporting Standards as adopted by the European Union
(IFRS-EU) and the interpretations of the IFRS Interpretations Committee (IFRS
IC) approved by Regulations of the European Commission, and its Unaudited
Condensed Consolidated Interim Financial Statements in accordance with
International Accounting Standard 34: Interim Financial Reporting. The
currency referred to in this document is the Euro, unless otherwise specified.
Forward-looking statements
This report may include certain "forward-looking statements" and
"forward-looking information" under applicable securities laws. Except for
statements of historical fact, certain information contained herein constitute
forward-looking statements. Forward-looking statements are frequently
characterised by words such as "plan", "expect", "project", "intend",
"believe", "anticipate", "estimate", and other similar words, or statements
that certain events or conditions "may" or "will" occur. Forward-looking
statements are based on the opinions and estimates of management at the date
the statements are made, and are based on a number of assumptions and subject
to a variety of risks and uncertainties and other factors that could cause
actual events or results to differ materially from those projected in the
forward-looking statements. Assumptions upon which such forward-looking
statements are based include that all required third party regulatory and
governmental approvals will be obtained. Many of these assumptions are based
on factors and events that are not within the control of Atalaya and there is
no assurance they will prove to be correct. Factors that could cause actual
results to vary materially from results anticipated by such forward-looking
statements include changes in market conditions and other risk factors
discussed or referred to in this report and other documents filed with the
applicable securities regulatory authorities. Although Atalaya has attempted
to identify important factors that could cause actual actions, events or
results to differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events or results
not to be anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
statements. Atalaya undertakes no obligation to update forward-looking
statements if circumstances or management's estimates or opinions should
change except as required by applicable securities laws. The reader is
cautioned not to place undue reliance on forward-looking statements.
1. Incorporation and description of the Business
Atalaya Mining Copper, S.A. 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 after the cross-border conversion finished on 10 January
2025 is Paseo de las Delicias, 1, 3, 41001, Sevilla, Spain.
The Company was first listed on the Alternative Investment Market (AIM) of the
London Stock Exchange in May 2005, trading under the symbol ATYM. On 29 April
2024, the Company was admitted to the premium listing segment of the Official
List maintained by the FCA and to trading on the main market of the London
Stock Exchange. After completion of the cross-border conversion, the Company's
shares commenced trading under "Atalaya Mining Copper, S.A." on 10 January
2025 and the nominal value of the Company's shares were also adjusted from
7.5p to €0.09 per share.
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 two investigation permits at Proyecto
Riotinto East.
In November 2024, Atalaya entered into earn-in agreements on two exploration
projects in Sweden (the Skellefte Belt and Rockliden) located in prospective
volcanogenic massive sulphide ("VMS") districts.
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
As described in the Annual Report 2024, the Group initially acquired a 10%
stake in Cobre San Rafael, S.L. ("CSR"), the owner of Proyecto Touro, under an
earn-in agreement that allows the Group to acquire up to 80% of the copper
project. Proyecto Touro, located in Galicia (north-west Spain), is currently
the permitting process.
In July 2017, the Group announced that it had executed the option to acquire
10% of CSR, a wholly owned subsidiary of Explotaciones Gallegas S.L. The
earn-in agreement was structured in four phases, enabling the Group to
gradually increase its stake in CSR up to 80%:
- Phase 1 - The Group paid €0.5 million to secure and exclusive right
to fund 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 consideration for a
0.75% Net Smelter Return royalty, with a buyback option.
The agreement was structured to ensure that payments would be made
progressively as the project is de-risked, permitted, and becomes operational.
On 24 June 2024, Atalaya announced that Proyecto Touro, through CSR, had been
declared a Strategic Industrial Project ("Proyecto Industrial Estratégico" or
"PIE") by the Council of the Xunta de Galicia ("XdG"). Under Galician
legislation, PIE status sought to simplify administrative procedures and aimed
to shorten permitting timelines.
This declaration highlighted the XdG's commitment to promoting new investment
in the region and aligned with the objectives of the European Union. As copper
was considered a strategic raw material by the EU, the project was recognised
for its potential to become a sustainable European source of copper
production.
The XdG continued its review under the simplified procedures applicable to PIE
projects. The public information period, which informed nearby communities and
organisations about the proposed project, concluded on 31 January 2025. At
that time, CSR was focused on analysing and responding to feedback from the
public and assessing sectoral reports issued by various departments of the
XdG.
As a result of developments during 2024, the Group concluded that it was
likely that phases 2, 3 and 4 of the Touro project would be completed.
Accordingly, in line with the Group's accounting policy on contingent
payments, it recognised an intangible asset of €16.5 million as of year-end,
together with the related contingent liabilities.
In accordance with the Group's policy on non-controlling interests, 20% of the
newly recognised intangible asset was allocated to non-controlling interests,
amounting to €3.3 million.
As also disclosed in the Annual Report 2024 and reflecting the Group's updated
expectations regarding the completion of future phases, the Group reversed a
previously recorded impairment from 2019 of €6.9 million, which related to
capitalised expenses associated with Proyecto Touro.
In parallel, the Company continued to engage with local stakeholders through
recruitment initiatives and maintained its water treatment operations to
improve water quality in rivers around Touro.
Furthermore, the Company carried out infill and step-out drilling programmes,
focused on areas within the initial mine plan where mineralisation remained
open.
Proyecto Masa Valverde
On 21 October 2020, the Company announced that it had 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 approximately equal instalments.
The first payment is to be executed once the project is permitted and the
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.
Proyecto Ossa Morena ("POM")
In December 2021, Atalaya announced the acquisition of a 51% interest in Rio
Narcea Nickel, S.L., which owned 9 investigation permits. The acquisition also
provided a 100% interest in three investigation permits that are also located
along the Ossa-Morena Metallogenic Belt. In Q3 2022, Atalaya increased its
ownership interest in POM to 99.9%, up from 51%, following completion of a
capital increase that will fund exploration activities. During 2022 Atalaya
rejected 8 investigation permits.
Atalaya will pay a total of €2.5 million in cash in three instalments and
grant a 1% net smelter return ("NSR") royalty over all acquired permits. The
first payment of €0.5 million was made following execution of the purchase
agreement. The second and third instalments of €1 million each will be made
once the environmental impact statement ("EIS") and the final mining permits
for any project within any of the investigation permits acquired under the
agreement are secured. In accordance with the agreement, these outstanding
instalments are disclosed as a non-current payable to the sellers.
Proyecto Riotinto East
In December 2020, Atalaya entered into a Memorandum of Understanding with a
local private Spanish company to acquire a 100% beneficial interest in three
investigation permits (known as Peñas Blancas, Cerro Negro and Herreros
investigation permits), which cover approximately 12,368 hectares and are
located immediately east of Proyecto Riotinto. After a short drilling
campaign, the Los Herreros investigation permit was rejected in June 2022.
Proyecto Riotinto East consists of the remaining two investigation permits,
Peñas Blancas and Cerro Negro, totalling 10,016 hectares.
Skellefte Belt Project and Rockliden Project
During 2024, the Group entered into earn-in agreements with Mineral
Prospektering i Sverige AB ("MPS") 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.
2. Overview of Operational Results
Proyecto Riotinto
The following table presents a summarised statement of operations of Proyecto
Riotinto for the three and six months ended 30 June 2025 and 2024,
respectively.
Unit Q2 2025 Q2 2024 H1 2025 H1 2024
Ore mined tonnes 3,512,257 3,797,923 7,223,300 7,499,752
Waste mined ((1)) tonnes 12,648,006 7,507,378 23,959,290 13,047,055
Ore processed tonnes 3,996,573 4,086,408 8,218,464 7,826,501
Copper grade % 0.43 0.33 0.42 0.33
Copper concentrate grade % 17.09 19.11 17.47 19.64
Copper recovery rate % 76.75 85.81 78.90 85.30
Copper concentrate produced tonnes 77,088 60,623 157,258 113,308
Copper production tonnes 13,175 11,583 27,466 22,249
Payable copper production tonnes 12,404 10,976 25,894 21,116
Cash Costs * US$/lb payable 2.21 2.88 2.23 2.93
All-in Sustaining Cost ("AISC")* US$/lb payable 2.81 3.20 2.78 3.19
(1) Represents the Cerro Colorado pit only.
(*) Refer Section 5 of this Management Review.
US$/lb Cu payable Q2 2025 Q2 2024 H1 2025 H1 2024
Mining 0.88 1.04 0.86 1.01
Processing 0.77 0.83 0.79 0.87
Other site operating costs 0.69 0.63 0.59 0.65
Total site operating costs 2.33 2.50 2.24 2.53
By-product credits (0.40) (0.23) (0.32) (0.19)
Freight, treatment charges and other offsite costs 0.29 0.61 0.31 0.58
Total offsite costs (0.12) 0.38 (0.01) 0.40
Cash Costs 2.21 2.88 2.23 2.93
Cash Costs 2.21 2.88 2.23 2.93
Corporate costs 0.06 0.12 0.09 0.11
Sustaining capital (excluding tailings expansion) 0.02 0.05 0.04 0.03
Capitalised stripping costs ((1)) 0.41 0.06 0.33 0.03
Other costs 0.10 0.09 0.09 0.08
AISC 2.81 3.20 2.78 3.19
(1) Represents the Cerro Colorado pit only.
Note: Some figures may not add up due to rounding.
Three months operational review
Mining
Ore mined was 3.5 million tonnes in Q2 2025 (Q2 2024: 3.8 million tonnes),
compared with 3.7 million tonnes in Q1 2025.
Waste mined was 12.6 million tonnes in Q2 2025 (Q2 2024: 7.5 million tonnes),
compared with 11.3 million tonnes in Q1 2025. In addition, waste stripping
activities advanced at the San Dionisio area, supporting future access to
higher-grade material following the granting of the environmental permit (AAU)
in May 2025.
Processing
The plant processed 4.0 million tonnes of ore in Q2 2025 (Q2 2024: 4.1 million
tonnes), compared with 4.2 million tonnes in Q1 2025. This reflects ongoing
strong plant performance, above the 15 million tonne per annum nameplate
capacity. The next SAG mill liner change is scheduled for Q3 2025.
Copper grade in Q2 2025 was 0.43% (Q2 2024: 0.33%), compared with 0.42% in Q1
2025.
Copper recovery was 76.75% in Q2 2025 (Q2 2024: 85.81%), compared with 80.98%
in Q1 2025. The decrease was due to mineralogical variability of certain ores
processed during the quarter. Nevertheless, these materials contributed higher
grades than the average, enhancing overall feed quality.
Production
Copper production was 13,175 tonnes in Q2 2025 (Q2 2024: 11,583 tonnes),
compared with 14,291 tonnes in Q1 2025. The quarterly decrease was the result
of lower recoveries and lower throughput, partly offset by higher grades.
On-site copper concentrate inventories stood at 9,820 tonnes at 30 June 2025,
compared with 19,031 tonnes at 31 March 2025, reflecting increased concentrate
sales. Copper contained in concentrates sold was 14,024 tonnes in Q2 2025 (Q2
2024: 11,397 tonnes), compared with 14,687 tonnes in Q1 2025.
Six months operational review
Copper production during H1 2025 was 27,466 tonnes, compared with 22,249
tonnes in the same period of 2024. Higher production was primarily the result
of increased ore throughput and higher copper grades, which more than offset
the impact of lower recoveries.
Payable copper in concentrates was 25,894 tonnes, compared with 21,116 tonnes
of payable copper in H1 2024.
Ore mined in H1 2025 was 7.2 million tonnes, compared with 7.5 million tonnes
during H1 2024. Ore processed was 8.2 million tonnes, versus 7.8 million
tonnes in H1 2024, although a portion of lower-grade stockpiles was processed
during H1 2025.
Ore grade during H1 2025 was 0.42% Cu, compared with 0.33% Cu in H1 2024.
Copper recovery was 78.90%, compared to 85.30% in the same period of the
previous year. Concentrate production amounted to 157,258 tonnes, above the H1
2024 production of 113,308 tonnes.
3. Outlook
The forward-looking information contained in this section is subject to the
risk factors and assumptions contained in the cautionary statement on
forward-looking statements included in the Basis of Reporting. Should the
Company consider the current guidance no longer achievable, then the Company
will provide a further update.
Operational guidance
Proyecto Riotinto operational guidance for 2025 is as follows:
Unit Guidance 2025
Ore mined million tonnes 15 - 16
Waste mined ((1)) million tonnes 47 - 50 ((2))
Ore processed million tonnes 15.8 - 16.0 ((2))
Copper grade % 0.39 - 0.41 ((2))
Copper recovery % 78 - 80 ((2))
Copper production tonnes 49,000 - 52,000 ((2))
Cash Costs US$/lb payable US$2.60 - 2.80 ((2))
All-in sustaining cost US$/lb payable US$3.10 - 3.30 ((2))
(1) Represents the Cerro Colorado and San Dionisio pits; prior
guidance included Cerro Colorado only.
(2) Represents updated guidance.
Production
Updated copper production guidance for FY2025 is 49,000 - 52,000 tonnes, up
from 48,000 - 52,000 tonnes, as a result of the performance in H1 2025. Full
year production is still expected to be weighted slightly towards H1 2025 as a
result of pit sequencing.
Operating Costs
Updated guidance for FY2025 Cash Costs and AISC are as follows:
· Cash Costs range of US$2.60 - 2.80/lb copper payable, down from
US$2.70 - 2.90/lb
· AISC range of US$3.10 - 3.30/lb copper payable, down from US$3.20 -
3.40/lb
Euro-denominated costs were well-controlled in H1 2025, however, the stronger
EUR/USD exchange rate is expected to be a headwind for USD-denominated metrics
in H2 2025.
Expected costs associated with waste stripping at the San Dionisio area in H2
2025 are now included in the guidance for Cash Costs and AISC, having been
reallocated from the non-sustaining capital investment guidance shown below.
AISC guidance continues to exclude investments in the tailings dam, consistent
with prior reporting.
Non-Sustaining Capital Investments
Updated guidance for FY2025 non-sustaining capital investments is €29 - 37
million, down from €58 - 82 million.
Key changes include the reallocation of expected San Dionisio H2 2025 waste
stripping costs to Cash Costs and AISC, and the expected deferral into 2026 of
certain expenditures related to the road relocation and the Proyecto Masa
Valverde access ramp.
Exploration Expenditures
Updated guidance for FY2025 exploration expenditures is €8 - 12 million, up
from €6 - 8 million. The main expenditures are associated with Proyecto Masa
Valverde, the San Antonio deposit and the earn-in commitments with MPS in
Sweden.
4. Overview of the Financial Results
The following table presents summarised consolidated income statements for the
three and six months ended 30 June 2025, with comparatives for the three and
six months ended 30 June 2024, respectively.
(Euro 000's) Three month period ended 30 Jun 2025 Three month period ended 30 June 2024 Six month period ended 30 Jun 2025 Six month period ended 30 Jun 2024
Revenues 124,082 92,208 254,750 162,146
Costs of sales (67,889) (60,207) (140,232) (116,964)
Corporate expenses (1,461) (3,076) (4,055) (5,003)
Exploration expenses (95) (1,091) (3,430) (1,946)
Care and maintenance expenditures 2 (1,609) (7) (2,041)
Other income 439 202 566 486
EBITDA 55,078 26,427 107,592 36,678
Depreciation/amortisation (12,901) (10,984) (25,795) (20,590)
Net foreign exchange (loss)/gain (3,875) 672 (5,956) 2,243
Net finance (cost)/income - (1) (81) (91)
Tax (8,705) (1,594) (15,696) (2,093)
Profit for the period 29,597 14,520 60,064 16,147
Three months financial review
Revenues for the three-month period ended 30 June 2025 amounted to €124.1
million (Q2 2024: €92.2 million). The increase in revenues was mainly driven
by significantly higher copper concentrate volumes sold including inventories
at the end of Q1 2025 and lower offsite costs, despite lower realised copper
prices and a stronger Euro relative to the US Dollar.
Realised prices excluding quotation periods ("QPs") were US$4.27/lb copper
during Q2 2025 compared with US$4.54/lb in Q2 2024. The realised price
including QPs was approximately US$4.23lb during Q2 2025 (Q2 2024:
US$4.13/lb).
Cost of sales for the three-month period ended 30 June 2025 amounted to
€67.9 million, compared with €60.2 million in Q2 2024. Higher costs were
primarily attributable to lower inventories from the previous quarter and
partially offset with lower costs of electricity and consumables.
Cash costs were US$2.21/lb payable copper during Q2 2025 compared with
US$2.88/lb in the same period last year. The reduction in unit cash costs was
mainly due to higher copper production despite stronger Euro/US Dollar
exchange rate compared to Q2 2024. AISC for Q2 2025, excluding one-off
investments in the tailings dam and San Dionisio stripping, was US$2.81/lb
payable copper compared with US$3.20/lb in Q2 2024. The decrease was primarily
due to lower cash costs despite an increase in capitalised stripping.
Sustaining capex for Q2 2025 amounted to €0.5 million (Q2 2024: €1.1
million), mainly related to the new crusher and enhancements in the processing
systems. In addition, the Company continues to invest in the tailings dam
project to increase storage capacity, having invested €4.0 million in Q2
2025 (Q2 2024: €4.4 million). Stripping costs capitalised for Cerro Colorado
during Q2 2025 amounted to €9.9 million (Q2 2024: €1.3 million).
Capex associated with the construction of the solar plant amounted to €0.2
million in Q2 2025 (Q2 2024: €1.9 million), while investments in the E-LIX
Phase I plant totalled €0.4 million (Q2 2024: €0.2 million). Additionally,
capex of €2.2 million was related to the San Dionisio area during the
quarter.
Corporate expenses amounted to €1.5 million (Q2 2024: €3.1 million) and
include non-operating costs of the Cyprus office, corporate legal and
consultancy fees, listing costs, officers and directors' emoluments, corporate
office salaries and administrative expenses.
Exploration costs on Atalaya's project portfolio for Q2 2025 were €0.1
million, compared to €1.1 million in Q2 2024, with the reduction mainly due
to a pause in drilling activities in Sweden during the summer months. As of 30
June 2025, the Company has recognised a prepayment of €0.8 million in
relation to exploration activities not yet executed, although the funds have
already been provided under agreements for the Skellefte Belt and Rockliden
Projects.
Care and maintenance costs were €2k for the three-month period ended 30 June
2025 (Q2 2024: €1.6 million). The significant reduction compared with the
prior year reflects the fact that, following the designation of Proyecto Touro
as a Strategic Industrial Project by the Council of the Xunta de Galicia at
the end of H1 2024, all direct costs associated with the mining development
were capitalised in accordance with applicable IFRS criteria. The remaining
costs, which were mainly administrative in nature and incurred through the
local subsidiary Cobre San Rafael S.L., were no longer presented under care
and maintenance, thus, in 2025, these costs were reclassified under
administration and corporate expenses, and amounted to €0.4 million in H1
2025.
EBITDA for Q2 2025 amounted to €55.1 million, up from €26.4 million in Q2
2024, primarily driven by higher sales and lower unit costs.
Depreciation and amortisation for the quarter totalled €12.9 million (Q2
2024: €11.0 million).
Net foreign exchange losses for Q2 2025 of €3.9 million resulted from the
appreciation of the Euro against the US Dollar.
Net finance costs for Q2 2025 were nil, consistent with the same period in
2024.
Six months financial review
Revenues for the six-month period ended 30 June 2025 amounted to €254.8
million (H1 2024: €162.1 million). The increase in revenues was mainly due
to significantly higher concentrate volumes sold with slightly higher realised
copper prices.
Copper concentrate production during the six-month period was 157,258 tonnes
(H1 2024: 113,308 tonnes), with 169,253 tonnes of copper concentrate sold (H1
2024: 111,281 tonnes). Inventories of concentrates at the reporting date were
9,820 tonnes (21,815 tonnes as at 31 December 2024).
Copper contained in concentrates sold was 28,711 tonnes in H1 2025 (H1 2024:
21,683 tonnes).
Realised copper prices excluding QPs for H1 2025 were US$4.27/lb, compared
with US$4.26/lb in H1 2024. The realised price remained close to the market
average, which was US$4.28/lb in H1 2025 versus US$4.13/lb in H1 2024. No
hedging agreements were entered into during the period.
Cost of sales amounted to €140.2 million in H1 2025 (H1 2024: €117.0
million). The cost increase was related to higher volumes, the increase in
waste mined and lower inventories at the end of the period with a lower unit
cost.
Cash costs were US$2.23/lb payable copper, compared with US$2.93/lb in H1
2024. The reduction in cash costs was mainly due to higher copper production
and lower offsite cost. AISC, excluding investment in tailings dam and San
Dionisio stripping, was US$2.78/lb payable copper (H1 2024: US$3.19/lb) with a
higher stripping cost capitalised.
Sustaining capex for H1 2025 totalled €2.0 million compared with €1.6
million in H1 2024, mainly related to the new crusher and enhancements in the
plant's processing systems. Additional investment in tailings dam €8.0
million compared with €7.5 million invested in H1 2024. Stripping costs
capitalised for Cerro Colorado during H1 2025 amounted to €17.2 million (H1
2024: €1.3 million).
Capex for the solar plant was €0.5 million in H1 2025 (H1 2024: €2.6
million) while investments in the E-LIX Phase I plant, commissioning and
ramp-up totalled €0.9 million and €4.0 million related to the convertible
loan. Additionally, a capex of €5.2 million is related to the San Dionisio
area.
Corporate costs for H1 2025 were €4.1 million (H1 2024: €5.2 million),
mainly comprising the Company's overhead expenses.
Exploration costs totalled €3.4 million (H1 2024: €1.9 million), mainly
due to activities in the Skellefte Belt and Rockliden Projects in Sweden and
Proyecto Masa Valverde.
EBITDA for the six months ended 30 June 2025 amounted to €107.6 million (H1
2024: €36.7 million).
Depreciation and amortisation for H1 2025 totalled €25.8 million (H1 2024:
€20.6 million).
Net foreign exchange loss was €6.0 million (H1 2024: €2.2 million).
Net finance cost for H1 2025 amounted to €0.1 million, compared with a cost
of €0.1 million in H1 2024.
Copper prices
The average realised copper price (excluding QPs) decreased by 6.1% to
US$4.27/lb in Q2 2025, from US$4.54/lb in Q2 2024.
The average prices of copper for the three and six month period ended 30 June
2025 and 2024 are summarised below:
US$/lb Three month period ended 30 Jun 2025 Three month period ended 30 June 2024 Six month period ended 30 Jun 2025 Six month period ended 30 Jun 2024
Realised copper price (excluding QPs) 4.27 4.54 4.27 4.26
Market copper price per lb (period average) 4.32 4.42 4.28 4.13
Realised copper prices for the reporting period noted above have been
calculated using payable copper and excluding both provisional invoices and
final settlements of QPs together. The realised price during Q2 2025,
including the QP, was approximately US$4.23/lb.
5. Non-GAAP Measures
Atalaya has included certain non-IFRS measures including "EBITDA", "Cash Costs
per pound of payable copper", "All-In Sustaining Costs" ("AISC") "realised
prices" and "Net Cash/Debt" in this report. Non-IFRS measures do not have any
standardised meaning prescribed under IFRS, and therefore they may not be
comparable to similar measures presented by other companies. These measures
are intended to provide additional information and should not be considered in
isolation or as a substitute for indicators prepared in accordance with IFRS.
EBITDA includes gross sales net of penalties and discounts and all operating
costs, excluding finance, tax, impairment, depreciation and amortisation
expenses. Cash Costs per pound of payable copper includes cash operating
costs, including treatment and refining charges ("TC/RC"), freight and
distribution costs net of by-product credits. Cash Costs per pound of payable
copper is consistent with the widely accepted industry standard established by
Wood Mackenzie and is also known as the C1 Cash Costs.
AISC per pound of payable copper includes C1 Cash Costs plus royalties and
agency fees, expenditures on rehabilitation, capitalised stripping costs,
exploration and geology costs, corporate costs and recurring sustaining
capital expenditures but excludes one-off sustaining capital projects, such as
the tailings dam project.
Realised price per pound of payable copper is the value of the copper payable
included in the concentrate produced including the discounts and other
features governed by the offtake agreements of the Group and all discounts or
premiums provided in commodity hedge agreements with financial institutions if
any, expressed in USD per pound of payable copper. Realised prices do not
include period end mark to market adjustments in respect of provisional
pricing. Realised price is consistent with the widely accepted industry
standard definition.
6. Liquidity and Capital Resources
Atalaya monitors factors that could impact its liquidity as part of Atalaya's
overall capital management strategy. Factors that are monitored include, but
are not limited to, the market price of copper, foreign currency rates,
production levels, operating costs, capital and administrative costs.
The following is a summary of Atalaya's cash position and cash flows as at 30
June 2025 and 31 December 2024.
Liquidity information
(Euro 000's) 30 Jun 2025 31 Dec 2024
Unrestricted cash and cash equivalents at Group level 83,747 43,184
Unrestricted cash and cash equivalents at Operation level 19,266 9,694
Consolidated cash and cash equivalents 103,013 52,878
Net cash position ((1)) 70,078 35,091
Working capital surplus 92,246 44,728
((1)) Includes borrowings
Unrestricted cash and cash equivalents, which include balances held at both
Group and Operation levels, increased to €103.0 million as at 30 June 2025,
compared with €52.9 million at 31 December 2024. This significant increase
was primarily driven by strong cash inflows from operating activities,
partially offset by investment outflows and moderate financing movements. At
the Group level, cash rose from €43.2 million to €83.7 million, while
Operation-level cash increased from €9.7 million to €19.3 million.
The Group generated €78.3 million in net cash from operating activities
during the first six months of 2025, supported by solid EBITDA and limited tax
payments, despite a working capital outflow mainly attributable to a €38.0
million increase in trade and other receivables. Cash outflows from investing
activities totalled €41.8 million, reflecting continued capital expenditure
in strategic areas such as San Dionisio and processing plant upgrades. Net
financing cash flows were positive at €14.9 million, with new borrowings of
€19.7 million drawn temporarily in order to settle an intercompany loan,
exceeding repayments of €4.6 million.
As of 30 June 2025, the Group reported a working capital surplus of €92.2
million, compared with €44.7 million at year-end 2024. The improvement is
largely explained by the stronger cash position and an increase in short-term
receivables, which offset modest changes in inventories and trade payables.
The Group's net cash position also doubled during the period, reaching €70.1
million, up from €35.1 million at 31 December 2024. All cash balances remain
unrestricted and available for general use at both the operational and
corporate levels, reinforcing Atalaya's robust liquidity and financial
flexibility.
Overview of the Group's cash flows
(Euro 000's) Three month period ended 30 Jun 2025 Three month period ended 30 June 2024 Six month period ended 30 Jun 2025 Six month period ended 30 Jun 2024
Cash flows from operating activities 52,238 30,126 78,277 28,389
Cash flows used in investing activities (19,374) (17,054) (41,773) (34,931)
Cash flows from/(used in) financing activities 1,294 (18,862) 14,889 (35,671)
Net increase/(decrease) in cash and cash equivalents 34,158 (5,790) 51,393 (42,213)
Net foreign exchange differences (806) 672 (1,258) 2,243
Total net cash flow for the period 33,352 (5,118) 50,135 (39,970)
Three months cash flows review
Total net cash inflow for the three months ended 30 June 2025 was €34.2
million, primarily driven by strong cash generation from operating activities.
Cash from operating activities amounted to €52.2 million, while investing
activities consumed €19.4 million, and financing activities contributed a
net inflow of €1.3 million.
Cash generated from operations before changes in working capital was €55.3
million. During the quarter, inventories decreased by €6.6 million, trade
and other receivables increased by €0.1 million, and trade and other
payables decreased by €2.5 million, resulting in a modest net working
capital inflow.
Investing activities consumed €19.4 million, mainly related to ongoing
development works at the tailings dams, the San Dionisio deposit, and
continued upgrades to processing infrastructure.
Financing activities generated a net inflow of €1.3 million, primarily from
new borrowings of €3.1 million, partially offset by repayments of €1.7
million and lease payments of €0.1 million.
Six months cash flow review
For the six months ended 30 June 2025, the Group reported a net cash inflow of
€51.4 million. This included net cash from operating activities of €78.3
million, investing outflows of €41.8 million, net financing inflows of
€14.9 million, and negative foreign exchange differences of €1.3 million.
Cash generated from operations before working capital movements was €108.1
million. However, working capital movements during the period had a net
outflow effect, driven by a €29.3 million increase in trade and other
receivables, an €11.8 million decrease in inventories, and a €3.1 million
decrease in trade and other payables.
Cash outflows from investing activities of €41.8 million mainly reflect
capital expenditure related to the San Dionisio area, tailings storage
facilities, and processing plant upgrades.
Financing activities resulted in a net inflow of €14.9 million, reflecting
€19.7 million of new borrowings drawn temporarily in order to settle an
intercompany loan, offset by €4.6 million of repayments and €0.3 million
of lease and interest payments.
Foreign exchange
Foreign exchange rate movements can have a significant effect on Atalaya's
operations, financial position and results. Atalaya's sales are denominated in
U.S. dollars ("USD"), while Atalaya's operating expenses, income taxes and
other expenses are mainly denominated in Euros ("EUR") which is the functional
currency of the Group, and to a much lesser extent in British Pounds ("GBP").
Accordingly, fluctuations in the exchange rates can potentially impact the
results of operations and carrying value of assets and liabilities on the
balance sheet.
During the three and six months ended 30 June 2025, Atalaya recognised a
foreign exchange loss of €3.9 million and €6.0 million, respectively. The
foreign exchange loss mainly related to the appreciation of the Euro against
the US Dollar, as a significant portion of sales proceeds are held in USD.
The following table summarises the movement in key currencies versus the EUR:
(Euro 000's) Three month period ended 30 Jun 2025 Three month period ended 30 Jun 2024 Six month period ended 30 Jun 2025 Six month period ended 30 Jun 2024
Average rates for the periods
GBP - EUR 0.8490 0.8563 0.8423 0.8707
USD - EUR 1.1338 1.0858 1.0927 1.0833
Spot rates as at
GBP - EUR 0.8555 0.8551 0.8555 0.8551
USD - EUR 1.1720 1.0811 1.1720 1.0811
7. Sustainability
Corporate Social Responsibility
During the second quarter of 2025, Fundación Atalaya continued to strengthen
its role as a catalyst for sustainable development in the Cuenca Minera, with
a focus on education, cultural promotion, and support for local communities.
The fifth edition of the Mining Operations Training Course concluded its
theoretical component during the quarter. Participants have now entered the
internship phase, gaining hands-on experience working with local
mining-related companies during the summer. This initiative continues to
enhance employability and sector-specific skills among residents of the
region.
The Riotinto Experience project, which offers guided tours of the operational
mine, continued to attract growing interest. It is steadily positioning
Riotinto as a national benchmark in industrial tourism and contemporary mining
education.
Fundación Atalaya also supported a diverse range of cultural and social
initiatives. Key activities during the quarter included sponsorship of SEPER
Adela Frigolet's XXI Cultural Week, poetry and music competitions (Rosario
Santana and CEM Manuel Rojas), and local heritage events such as the San
Antonio and San Juan Alto de la Mesa gatherings. Ongoing collaboration with
community associations, including Asociación Nayeros, also continued. In the
area of infrastructure and heritage, Fundación Atalaya contributed to the
interior restoration of the parish church in El Campillo and supported a
commercial revitalisation campaign led by APYME El Campillo.
Furthermore, a cultural preservation agreement was signed with the
Ayuntamiento de Nerva to restore and catalogue the historical archive of the
Casa del Maestro Rojas, contributing to the safeguarding and dissemination of
the region's collective memory.
Health and Safety
In the second quarter of 2025, compared to the same period of the previous
year, there was a slight uptick in incident rates due to a higher number of
accidents involving contractor personnel. This increase is reflected in the
frequency rate (FR) and severity rate (SR), which closed the half-year at 5.66
and 0.18, respectively. There was one lost-time accident involving Atalaya
personnel and six involving contractors, all of which were of a minor nature.
Regarding accident reduction targets, the severity rate (SR) target was met,
while the frequency rate (FR) target was not achieved, as the actual figure
exceeded the established threshold for 2025.
In terms of Occupational Hygiene, nearly all of the planned measurements for
the quarter were carried out, including: respirable crystalline silica and
dust, organic vapours, asbestos fibres, and respirator fit testing for 55% of
Atalaya Riotinto Minera, S.L.U.'s workforce, along with legionella prevention
monitoring.
With regards to the First Response Brigade, specific training activities
scheduled in the annual plan were delivered, such as casualty extrication,
fire protection, and self-contained breathing apparatus (SCBA) use. SCBA
rescue drills were conducted with the participation of the mine rescue chief
from Sandfire-Matsa, fostering synergies with other mining operations and
strengthening readiness for emergency response.
In this regard, in June, three members of the on-site brigade responded to a
fire incident in an isolated area of the plant, successfully extinguishing and
containing the fire until the public fire brigade arrived. The intervention
prevented the fire from spreading to other parts of the facility and was
managed quickly and effectively.
Also in June, an emergency drill was conducted in the General Warehouse area,
with support from a specialist consultancy firm.
The second annual meeting of the Health and Safety Committee also took place
during the quarter, a joint consultation and participation meeting with
workers' representatives.
Psychoactive substance controls continue to be carried out at access points
and in the medical unit. The improvement implemented last year, involving
randomised controls using AI to select individuals or vehicles for substance
(alcohol or drugs) testing, remains in effect.
The second phase of the "Zero Harm Challenge" project is ongoing, with working
groups developing the 10 most prevalent and high-engagement proposals
identified during phase one. The project has seen high participation and
commitment levels, and its progress was presented in May to general management
and ARM department heads.
Finally, the Field Leadership activities have been officially recognised as
Best Occupational Health and Safety Practices by the Andalusian Institute for
Occupational Risk Prevention (Junta de Andalucía).
Environment
During the second quarter of 2025, the Environmental Department maintained its
focus on advancing environmental monitoring and natural resource management
across the Riotinto operations. A total of three environmental incidents were
reported during the period. The first involved a hydrocarbon spill on natural
soil within the mining area during tanker refuelling activities, affecting an
estimated surface area of 6 m². The second related to the outdoor
accumulation of hazardous waste, specifically, empty oil GRGs, on natural soil
within the mining area, although no soil contamination was identified. The
third incident occurred in the milling area, where an oil spill took place
during lubrication tasks. While no soil was affected, the area was promptly
cleaned and restored, and the resulting waste was properly managed.
Rainfall levels during Q2 2025 were significantly higher than in the same
period of the previous year, reaching 143.4 l/m², a 271% increase
year-on-year. Cumulative rainfall for the current hydrological year (October
2024 to June 2025) totalled 1,074.2 l/m², representing a 30% increase over
the same period in the prior year.
On 14 May 2025, the Company received official approval of a substantial
modification to its environmental permit, enabling the expansion of mining
operations into the San Dionisio deposit. In addition, three requests for
non-substantial modifications to the permit were submitted during the quarter:
(i) on 28 April, relating to diesel availability optimisation in the mining
area; (ii) on 9 June, for the enhancement of mining road connectivity in San
Dionisio; and (iii) on 20 June, concerning improvements to the retention pond
at the North Waste Dump.
The department also submitted the required annual environmental documentation
to the competent authorities, including the Annual Water Balance and the
results of receiving river monitoring associated with authorised discharges.
Measures established under the Dust Action Plan continued to be implemented,
including intensified watering schedules, enhanced coordination, and
systematic monitoring of dust emissions generated by operational activities.
Progress continued on the Restoration Plan, which covers both operational and
legacy areas. In parallel, scheduled forest maintenance works were carried out
in compliance with the approved Wildfire Prevention Plan. Annual external
emissions control testing was completed in May without incident, while all
routine internal monitoring of non-ducted atmospheric emissions also confirmed
compliance with regulatory thresholds. All other mandatory periodic
environmental controls were conducted on schedule and without issues. Several
environmental reports were submitted to the relevant administrative
authorities during the quarter.
Daily environmental inspections remained a key aspect of the department's
operations, with a focus on chemical storage and handling, site cleanliness,
waste management, prevention of uncontrolled releases, and the reinforcement
of responsible environmental behaviour among both Atalaya personnel and
contractors. Specific inspections also targeted dust suppression systems and
drainage infrastructure. In total, 85 inspections were conducted across the
plant, mining area, and contractor camps throughout the quarter.
8. Risk Factors
Due to the nature of Atalaya's business in the mining industry, the Group is
subject to various risks that could materially impact the future operating
results and could cause actual events to differ materially from those
described in forward-looking statements relating to Atalaya. Readers are
encouraged to read and consider the risk factors detailed in Atalaya's
audited, consolidated financial statements for the year ended 31 December
2024.
The Company continues to monitor the principal risks and uncertainties that
could materially impact the Company's results and operations, including the
areas of increasing uncertainty such as the impact of macro-economic
uncertainty on the business and geopolitical developments or the risks
inherent in the development of new technologies.
In particular, Atalaya is closely monitoring the risks associated with the
investments made in the E-LIX technology together with Lain Technologies Ltd
(hereinafter "Lain"). While the leaching process E-LIX has continued to
deliver results in line with technical expectations, progress towards
achieving sustainable, economically viable throughput levels has been more
challenging and materially slower than anticipated (Note 8).
9. Critical accounting policies, estimates, judgements, assumptions and
accounting changes
The preparation of Atalaya's Financial Statements in accordance with IFRS
requires management to make estimates, judgements and assumptions that affect
amounts reported in the Financial Statements and accompanying notes. There is
a full discussion and description of Atalaya's critical accounting policies in
the audited consolidated financial statements for the year ended 31 December
2024.
As at 30 June 2025, whilst there are no significant changes in critical
accounting policies or estimates to those applied in 2024. We highlight the
assumptions made in relation to Lain Technologies and the progress on the
Industrial Plant in Note 8.
10. Other Information
Additional information about Atalaya Mining Copper, S.A. is available at
www.atalayamining.com (http://www.atalayamining.com)
Unaudited condensed consolidated interim financial statements on subsequent
pages.
By Order of the Board of Directors,
Neil Gregson
Chair
Sevilla, 11 August 2025
Condensed Consolidated Interim Statement of Comprehensive Income
(All amounts in Euro thousands unless otherwise stated)
For the period ended 30 June 2025 and 2024
(Euro 000's) Note Three month period ended 30 Jun 2025 Three month period ended 30 Jun 2024 Six month period ended 30 Jun 2025 Six month period ended 30 Jun 2024
(Unaudited and unreviewed) (Unaudited and unreviewed) (Unaudited) (Unaudited)
Revenue 4 124,082 92,208 254,750 162,146
Operating costs and mine site administrative expenses (67,598) (60,056) (139,695) (116,662)
Mine site depreciation and amortisation (12,901) (10,984) (25,795) (20,590)
Gross profit 43,583 21,168 89,260 24,894
Administration and other expenses (1,461) (3,076) (4,055) (5,003)
Share-based benefits 16 (291) (151) (537) (302)
Exploration expenses (95) (1,091) (3,430) (1,946)
Care and maintenance expenditure 2 (1,609) (7) (2,041)
Other income 439 202 566 486
Operating profit 42,177 15,443 81,797 16,088
Net foreign exchange (loss)/gain (3,875) 672 (5,956) 2,243
Net finance income/(costs) 5 - (1) (81) (91)
Profit before tax 38,302 16,114 75,760 18,240
Tax 6 (8,705) (1,594) (15,696) (2,093)
Profit for the period 29,597 14,520 60,064 16,147
Profit for the period attributable to:
- Owners of the parent 7 29,681 15,104 60,148 17,130
- Non-controlling interests (84) (584) (84) (983)
29,597 14,520 60,064 16,147
Earnings per share from operations attributable to equity holders of the
parent during the period:
Basic earnings per share (EUR cents per share) 7 21.1 10.8 42.7 12.2
Fully diluted earnings per share (EUR cents per share) 7 20.3 10.4 41.1 11.8
Profit for the period 29,597 14,520 60,064 16,147
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 (1) 4 - -
'OCI'
Total comprehensive income for the period 29,596 14,524 60,064 16,147
Total comprehensive income for the period attributable to:
- Owners of the parent 7 29,680 15,108 60,148 17,130
- Non-controlling interests (84) (584) (84) (983)
29,596 14,524 60,064 16,147
The notes on the subsequent pages are an integral part of these Unaudited
Condensed Consolidated Interim Financial Statements.
Condensed Consolidated Interim Statement of Financial Position
(All amounts in Euro thousands unless otherwise stated)
As at 30 June 2025 and 2024
(Euro 000's) Note 30 Jun 2025 31 Dec 2024
Assets Unaudited Audited
Non-current assets
Property, plant and equipment 8 420,830 409,032
Intangible assets 9 72,286 70,209
Loans 13 2,679 2,627
Trade and other receivables 12 31,284 33,252
Non-current financial assets 2.3 1,101 1,101
Deferred tax asset 10,245 15,085
538,425 531,306
Current assets
Inventories 10 36,717 49,162
Loans 13 9,535 5,352
Trade and other receivables 12 60,505 36,863
Tax refundable 266 266
Other financial assets 2.3 23 23
Cash and cash equivalents 14 103,013 52,878
210,059 144,544
Total assets 748,484 675,850
Equity and liabilities
Equity attributable to owners of the parent
Share capital 15 12,668 12,668
Share premium 15 321,856 321,856
Other reserves 16 89,325 88,774
Accumulated profit 149,348 93,085
573,197 516,383
Non-controlling interests 2,070 2,154
Total equity 575,267 518,537
Liabilities
Non-current liabilities
Trade and other payables 17 14,104 13,983
Provisions 18 29,912 29,328
Lease liabilities 20 3,083 3,320
Borrowings 19 8,305 10,866
55,404 57,497
Current liabilities
Trade and other payables 17 84,094 90,090
Lease liabilities 20 478 481
Borrowings 19 24,630 6,921
Dividend payable 11 3,871 -
Current provisions 18 403 916
Current tax liabilities 4,337 1,408
117,813 99,816
Total liabilities 173,217 157,313
Total equity and liabilities 748,484 675,850
The notes on the subsequent pages are an integral part of these Unaudited
Condensed Consolidated Interim Financial Statements.
Neil Gregson (Chair) Alberto Lavandeira (CEO)
Condensed Consolidated Interim Statement of Changes in Equity
(All amounts in Euro thousands unless otherwise stated)
For the period ended 30 June 2025 and 2024
(Euro 000's) Note Share capital Share premium ((1)) Other reserves Accum. Profits Total NCI Total equity
(Unaudited)
At 1 January 2025 12,668 321,856 88,774 93,085 516,383 2,154 518,537
Profit for the period - - - 60,148 60,148 (84) 60,064
Total comprehensive income - - - 60,148 60,148 (84) 60,064
Recognition of share-based payments 16 - - 537 - 537 - 537
Recognition of non-distributable reserve 16 - - 1 (1) - - -
Recognition of distributable reserve 16 - - 13 (13) - - -
Dividends 11 - - - (3,871) (3,871) - (3,871)
At 30 June 2025 12,668 321,856 89,325 149,348 573,197 2,070 575,267
(Euro 000's) Note Share capital Share premium ((1)) Other reserves Accum. Profits Total NCI Total equity
(Audited)
At 1 January 2024 13,596 319,411 70,463 98,026 501,496 (9,104) 492,392
Profit for the period - - - 17,130 17,130 (983) 16,147
Total comprehensive income - - - 17,130 17,130 (983) 16,147
Issuance of share capital 15 74 2,448 - - 2,522 - 2,522
Recognition of depletion factor 16 - - 7,500 (7,500) - - -
Recognition of share-based payments 16 - - 302 - 302 - 302
Recognition of non-distributable reserve 16 - - 142 (142) - - -
Recognition of distributable reserve 16 - - 9,297 (9,297) - - -
Dividends 11 - - - (5,244) (5,244) - (5,244)
At 30 June 2024 13,670 321,859 87,704 92,973 516,206 (10,087) 506,119
((1)) The share premium reserve is not available for distribution
The notes on subsequent pages are an integral part of these Unaudited
Condensed Consolidated Interim Financial Statements.
Condensed Consolidated Interim Cash Flow Statement
(All amounts in Euro thousands unless otherwise stated)
For to the period ended 30 June 2025 and 2024
(Euro 000's) Note Three month period ended 30 Jun 2025 Three month period ended 30 Jun 2024 Six month period ended 30 Jun 2025 Six month period ended 30 Jun 2024
(Unaudited and unreviewed) (Unaudited and unreviewed) (Unaudited) (Unaudited)
Cash flows from operating activities
Profit before tax 38,302 16,114 75,760 18,240
Adjustments for:
Depreciation of property, plant and equipment 8 11,585 10,300 23,092 19,326
Amortisation of intangibles 9 1,316 685 2,703 1,264
Recognition of share-based payments 16 291 151 537 302
Interest income 5 (743) (452) (1,354) (987)
Interest expense 5 505 445 960 956
Unwinding of discounting on mine rehabilitation provision 18 238 - 475 107
Net foreign exchange differences 3,875 (672) 5,956 (2,243)
Unrealised foreign exchange loss on financing activities (30) 250 14 1,285
Cash inflows from operating activities before working capital changes 55,339 26,821 108,143 38,250
Changes in working capital:
Inventories 10 6,578 (2,560) 11,769 (4,804)
Trade and other receivables 12 66 2,684 (29,258) 5
Trade and other payables 17 (2,521) 3,695 (3,149) (2,518)
Provisions 18 (283) (60) (520) (331)
Cash flows from operations 59,179 30,580 86,985 30,602
Tax paid (6,705) - (7,970) (1,242)
Interest on leases liabilities 5 9 (8) - (15)
Interest paid 5 (245) (446) (738) (956)
Net cash from operating activities 52,238 30,126 78,277 28,389
Cash flows from investing activities
Purchase of property, plant and equipment 8 (17,244) (16,552) (33,816) (34,405)
Purchase of intangible assets 9 (2,423) (622) (4,752) (894)
Payments for investments 563 - (3,546) -
Interest received 5 (270) 120 341 368
Net cash used in investing activities (19,374) (17,054) (41,773) (34,931)
Cash flows from financing activities
Lease payments 19 (131) (123) (259) (333)
Proceeds from borrowings 18 3,129 - 19,733 -
Repayment of borrowings 18 (1,704) (21,261) (4,585) (37,860)
Proceeds from issuance of shares 14 - 2,522 - 2,522
Net cash from/(used in) financing activities 1,294 (18,862) 14,889 (35,671)
Net increase/(decrease) in cash and cash equivalents 34,158 (5,790) 51,393 (42,213)
Net foreign exchange difference (806) 672 (1,258) 2,243
Cash and cash equivalents: - -
At beginning of the period 69,661 86,155 52,878 121,007
At end of the period 103,013 81,037 103,013 81,037
The notes on the subsequent pages are an integral part of these Unaudited
Condensed Consolidated Interim Financial Statements.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(All amounts in Euro thousands unless otherwise stated)
For the period ended 30 June 2025 and 2024
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 two investigation permits at Proyecto
Riotinto East.
Proyecto Riotinto
The Company owns and operates through a wholly owned subsidiary, "Proyecto
Riotinto", an open-pit copper mine located in the Iberian Pyrite Belt, in the
Andalusia region of Spain, approximately 65 km northwest of Seville. A
brownfield expansion of this mine was completed in 2019 and successfully
commissioned by Q1 2020.
In May 2025, the Junta de Andalucía granted the Unified Environmental
Authorisation (AAU) for the San Dionisio deposit, located within the Riotinto
District. This authorisation enables the Company to expand its mining
activities and supports its strategy to increase copper production by sourcing
higher-grade material for processing at the Riotinto plant.
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 will
purchase an additional 10% interest (cumulative 80%) in exchange for a 0.75%
Net Smelter Return royalty, with a buyback option.
The Agreement was structured to ensure that each phase and corresponding
payment would only occur once the project was de-risked, permitted, and
operational.
On 24 June 2024, Atalaya announced that Proyecto Touro, via its local entity
Cobre San Rafael, was declared a strategic industrial project by the Council
of the Xunta de Galicia ("XdG"). Under legislation of the Autonomous Community
of Galicia, the status of strategic industrial project (or in Spanish,
Proyecto Industrial Estratégico ("PIE")) acts to simplify the administrative
procedures associated with the development of industrial projects and intends
to substantially reduce permitting timelines.
This declaration highlights the XdG's commitment to promoting new investment
that will benefit the region and also support the objectives of the European
Union. Copper is considered a strategic raw material by the EU and this
project has the potential to become a new source of sustainable European
copper production.
The XdG is continuing its review according to the simplified procedures
afforded to projects with PIE status. The public information period, which
serves to inform the surrounding communities and organisations about the
proposed project, concluded on 31 January 2025. Cobre San Rafael is currently
focused on analysing and responding to the feedback submitted during the
public information period and assessing the sectoral reports issued by the
various departments of the XdG.
As a result of the regulatory developments that occurred during 2024, the
Group now considers it likely that phases 2, 3 and 4 of the Touro project will
be completed. In accordance with the Group's accounting policy on contingent
payments, in 2024 the Group recognised an intangible asset amounting to
€16.5 million in 2024 (Note 9), as well as the corresponding contingent
liabilities (note 17).
In line with the its policy on non-controlling interests, the Group allocated
20% of this intangible asset to non-controlling interests, amounting to €3.3
million.
Additionally, as described in note 9, the Group reversed an impairment
previously recorded in 2019 on intangible fixed assets amounting to €6.9
million, related to capitalised expenses associated with Proyecto Touro.
The Group continues to engage with stakeholders in the region including
through various recruitment initiatives, and operates a water treatment plant
to restore the water quality of the rivers around Touro.
The Group's exploration activities are ongoing, including infill and step-out
drilling programmes focused on areas within the initial mine plan where
mineralisation remains open.
Proyecto Masa Valverde
On 21 October 2020, the Company announced that it entered into a definitive
purchase agreement to acquire 100% of the shares of Cambridge Mineria España,
S.L. (since renamed Atalaya Masa Valverde, S.L.U.), a Spanish company which
fully owns the Masa Valverde polymetallic project located in Huelva (Spain).
Under the terms of the agreement Atalaya would make an aggregate €1.4
million cash payment in two instalments of approximately the same amount:
the first upon permitting of the project and the second upon achieving first
production 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 the first payment of €0.7 million associated with the
granted permits.
Proyecto Ossa Morena
In December 2021, Atalaya announced the acquisition of a 51% interest in Rio
Narcea Nickel, S.L., which owned 9 investigation permits. The acquisition also
provided a 100% interest in three investigation permits that are also located
along the Ossa- Morena Metallogenic Belt. In Q3 2022, Atalaya increased its
ownership interest in POM to 99.9%, up from 51%, following completion of a
capital increase that will fund exploration activities. During 2022 Atalaya
rejected 8 investigation permits.
Atalaya will pay a total of €2.5 million in cash in three instalments and
grant a 1% net smelter return ("NSR") royalty over all acquired permits. The
first payment of €0.5 million was made following execution of the purchase
agreement. The second and third instalments of €1 million each will be made
once the environmental impact statement ("EIS") and the final mining permits
for any project within any of the investigation permits acquired under the
Transaction are secured. In accordance with the agreement, these outstanding
instalments are disclosed as a non-current payable to the sellers.
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 two
investigation permits (known as Peñas Blancas and Cerro Negro investigation
permits), which cover approximately 12,368 hectares and are located
immediately east of Proyecto Riotinto. After a short drilling campaign, the
Los Herreros investigation permit was rejected in June 2022. Proyecto Riotinto
East consists of the remaining two investigation permits, Peñas Blancas and
Cerro Negro, totalling 10,016 hectares.
Skellefte Belt Project and Rockliden Project
During 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 situated in well-established volcanogenic massive sulphide
districts recognised for their mineral resource potential. In 2024, the Group
provided funding of €1.2 million to MPS to support the preparatory work for
the planned winter drilling campaigns and to compensate MPS for certain past
expenditures. During H1 2025, Atalaya contributed an additional €1.8 million
to fund exploration activities as part of its ongoing earn-in commitments. In
accordance with IFRS6, all amounts provided to MPS to date have been
recognised as exploration expenses.
2. Basis of preparation and accounting policies
2.1 Basis of preparation
(a) Overview
These condensed interim financial statements are unaudited.
The unaudited Condensed Consolidated Interim Financial Statements for the
period ended 30 June 2025 have been prepared in accordance with International
Accounting Standard 34: Interim Financial Reporting. IFRS comprise the
standard issued by the International Accounting Standard Board ("IASB"), and
IFRS Interpretations Committee ("IFRICs") as issued by the IASB. Additionally,
the unaudited Condensed Consolidated Interim Financial Statements have also
been prepared in accordance with the IFRS as adopted by the European Union
(EU), using the historical cost convention and have been prepared on a
historical cost basis except for the revaluation of certain financial
instruments that are measured at fair value at the end of each reporting
period, as explained below.
These unaudited Condensed Consolidated Interim Financial Statements include
the financial statements of the Company and its subsidiary undertakings. They
have been prepared using accounting bases and policies consistent with those
used in the preparation of the consolidated financial statements of the
Company and the Group for the year ended 31 December 2024. These unaudited
Condensed Consolidated Interim Financial Statements do not include all the
disclosures required for annual financial statements, and accordingly, should
be read in conjunction with the consolidated financial statements and other
information set out in the Group's annual report for the year ended 31
December 2024.
As a Spanish company operating under EU regulations, the Group also complies
with the requirements of Spanish corporate law, including the Commercial Code
(Código de Comercio) and the Spanish Capital Companies Act (Ley de Sociedades
de Capital), where applicable. These regulations govern the preparation and
disclosure of consolidated financial statements.
The definition of Public Interest Entity is set out in Article 2.13 of
Directive 2006/43/EC, amended by Article 1 of Directive 2014/56/EU, that
states that it is considered to be Public Interest Entities : (a) entities
governed by the law of a Member State whose transferable securities are
admitted to trading on a regulated market of any Member State; (b) credit
institutions as defined in point 1 of Article 3(1) of Directive 2013/36/EU;
(c) insurance undertakings within the meaning of Article 2(1) of Directive
91/674/EEC; and (d) entities designated by Member States as public-interest
entities. As the company is not included in any of the categories above, it is
not considered to be a Public Interest Entity.
(b) Going concern
These unaudited Condensed Consolidated Interim Financial Statements have been
prepared based on accounting principles applicable to a going concern which
assumes that the Group will realise its assets and discharge its liabilities
in the normal course of business. Management has carried out an assessment of
the going concern assumption and has concluded that the Group can reasonably
be expected to generate sufficient cash and cash equivalents to continue
operating for the next twelve months.
Management continues to monitor the impact of geopolitical developments.
Currently no significant impact is expected in the operations of the Group.
2.2 New standards, interpretations and amendments adopted by the Group
The accounting policies adopted in the preparation of the Condensed
Consolidated Interim Financial Statements are consistent with those followed
in the preparation of the Group's annual consolidated financial statements for
the year ended 31 December 2024, except for the adoption of new standards
effective as of 1 January 2025. The Group has not early adopted any standard,
interpretation or amendment that has been issued but is not yet effective. One
amendment applies for the first time in 2025, but does not have an impact on
the unaudited Condensed Consolidated Interim Financial Statements of the
Group.
Lack of exchangeability - Amendments to IAS 21
The amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates
specify how an entity should assess whether a currency is exchangeable and how
it should determine a spot exchange rate when exchangeability is lacking. The
amendments also require disclosure of information that enables users of its
financial statements to understand how the currency not being exchangeable
into the other currency affects, or is expected to affect, the entity's
financial performance, financial position and cash flows. The amendments are
effective for annual reporting periods beginning on or after 1 January 2025.
When applying the amendments, an entity cannot restate comparative
information. The amendments did not have a material impact on the Group's
financial statements.
2.3 Fair value estimation
The fair values of the Group's financial assets and liabilities approximate
their carrying amounts at the reporting date.
The fair value of financial instruments traded in active markets, such as
publicly traded trading and other financial assets is based on quoted market
prices at the reporting date. The quoted market price used for financial
assets held by the Group is the current bid price. The appropriate quoted
market price for financial liabilities is the current ask price.
The fair value of financial instruments that are not traded in an active
market is determined by using valuation techniques. The Group uses a variety
of methods, such as estimated discounted cash flows, and makes assumptions
that are based on market conditions existing at the reporting date.
Fair value measurements recognised in the consolidated statement of financial
position
The following table provides an analysis of financial instruments that are
measured subsequent to initial recognition at fair value, Grouped into Levels
1 to 3 based on the degree to which the fair value is observable.
· Level 1 fair value measurements are those derived from quoted
prices (unadjusted) in active markets for identical assets or liabilities.
· Level 2 fair value measurements are those derived from inputs other
than quoted prices included within Level 1 that are observable for the asset
or liability, either directly (i.e. as prices) or indirectly (i.e. derived
from prices).
· Level 3 fair value measurements are those derived from valuation
techniques that include inputs for the asset or liability that are not based
on observable market data (unobservable inputs).
Financial assets or liabilities Level 1 Level 2 Level 3 Total
(Euro 000's)
30 Jun 2025
Other financial assets
Financial assets at FV through OCI 23 - 1,101 1,124
Trade and other receivables - - - -
Receivables (subject to provisional pricing) - 29,451 - 29,451
Total 23 29,451 1,101 30,575
31 Dec 2024
Other 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
2.4 Critical accounting estimates and judgements
The preparation of the unaudited Condensed Consolidated Interim Financial
Statements require management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities, and the accompanying disclosures, and the disclosure of
contingent liabilities at the date of the consolidated financial statements.
Estimates and assumptions are continually evaluated and are based on
management's experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances. Uncertainty
about these assumptions and estimates could result in outcomes that require a
material adjustment to the carrying amount of assets or liabilities affected
in future periods.
Provisions are recognised when the Group has a present legal or constructive
obligation as a result of past events, it is probable that an outflow of
resources will be required to settle the obligation, and a reliable estimate
of the amount can be made. If the effect of the time value of money is
material, provisions are discounted using a current pre-tax rate that
reflects, where appropriate, the risks specific to the liability. Where
discounting is used, the increase in the provision due to the passage of time
is recognised as a finance cost.
A full analysis of critical accounting estimates and judgements is set out in
Note 3.3 of the 2024 audited financial statements.
Recoverability of assets related to the E-LIX project
The E-LIX System represents a key area of estimation uncertainty due to the
early-stage nature of the project and the significant assumptions involved in
assessing the recoverability of capitalised development costs.
Historically, the Group capitalised expenditures related to the construction
of the pilot plant and supporting infrastructure, as well as costs associated
with feasibility studies and engineering design for a potential
industrial-scale application of the E-LIX electrochemical extraction process.
The recoverability of these capitalised amounts is subject to considerable
uncertainty and depends on the achievement of several future milestones,
including:
· Demonstration of commercial and technical feasibility - The pilot
plant must validate the E-LIX System's ability to operate consistently and
cost-effectively at scale.
· Market conditions for copper and zinc - Sustained favourable
pricing is critical to supporting the project's economic case.
· Operational and cost performance - The system must achieve targeted
recovery rates and cost efficiencies during pilot and potential commercial
operation.
· Strength of exclusivity arrangements - The Group retains exclusive
rights to deploy the E-LIX System within the Iberian Pyrite Belt, but the
value of these rights is contingent on successful commercialisation.
Management assesses the capitalised amounts for indicators of impairment in
accordance with IAS 36. Should there be indications of material changes in
project assumptions or external conditions, the Group will review the carrying
amount of the asset in accordance with IAS 36.
3. Business and geographical segments
Business segments
The Group has only one distinct business segment, being that of mining
operations, which include mineral exploration, development and scrap sales.
Copper concentrates produced by the Group are sold to three off-takers as per
the relevant offtake agreements. In addition, the Group has spot agreements
for the concentrates not committed to off-takers.
Geographical areas of sales
The Group's mining activities are located in Spain. The commercialisation of
the copper concentrates produced in Spain is carried out through Cyprus. Sales
transactions to related parties are on arm's length basis in a similar manner
to transaction with third parties. Accounting policies used by the Group in
different locations are the same as those contained in Note 2.
The table below presents revenues from external customers based on their
geographical location, determined by the country of establishment of each
customer.
Revenue - from external customers Three month period ended 30 Jun 2025 Three month period ended 30 June 2024 Six month period ended 30 Jun 2025 Six month period ended 30 Jun 2024
€'000 €'000 €'000 €'000
Switzerland 78,210 76,805 184,835 127,042
Singapore 45,689 15,403 69,656 35,104
Spain 183 - 259 -
124,082 92,208 254,750 162,146
Revenue from Spain is derived from the sale of scrap metal.
The table below presents revenues from external customers attributed to the
country of domicile of the Company.
Revenue - from external customers Three month period ended 30 Jun 2025 Three month period ended 30 June 2024 Six month period ended 30 Jun 2025 Six month period ended 30 Jun 2024
€'000 €'000 €'000 €'000
Cyprus 9,386 7,224 18,770 12,451
Spain 114,696 84,984 235,980 149,695
124,082 92,208 254,750 162,146
The geographical location of the specified non-current assets is based on the
physical location of the asset in the case of property, plant and equipment
and intellectual property and the location of the operation to which they are
allocated in the case of goodwill.
Non-current assets 30 Jun 2025 31 Dec 2024
€'000 €'000
Spain 493,116 479,241
493,116 479,241
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) Three month period ended 30 Jun 2025 Three month period ended 30 Jun 2024 Six month period ended 30 Jun 2025 Six month period ended 30 Jun 2024
Segment €'000 €'000 €'000 €'000
Customer 1 Copper 45,689 15,403 69,656 35,104
Customer 2 Copper 31,734 29,128 38,207 55,229
Customer 3 Copper 46,550 47,661 129,570 71,797
Customer 4 Copper (74) - 17,058 -
4. Revenue
(Euro 000's) Three month period ended 30 Jun 2025 Three month period ended 30 Jun 2024 Six month period ended 30 Jun 2025 Six month period ended 30 Jun 2024
Revenue from contracts with customers ((1)) 118,319 96,755 248,544 169,572
Price finalisation adjustments on provisionally priced sales ((2)) 3,343 (241) 2,372 660
Fair value (losses)/gains relating to provisional pricing within sales ((3)) 2,237 (4,306) 3,575 (8,086)
Other income ((4)) 183 - 259 -
Total revenue 124,082 92,208 254,750 162,146
All revenue from copper concentrate is recognised at a point in time when the
control is transferred. Revenue from freight services is recognised over time
as the services are provided.
((1) ) Included within Q2 2025 and H1 2025 is income related to the
freight services provided by the Group to its customers arising from the sales
of copper concentrate under CIF incoterm, of €2.8 million (Q2 2024: €3.2
million) and €6.0 million (H1 2024: €6.3 million), respectively.
((2) ) Represents adjustments to revenue arising from the final
settlement of sales contracts that were previously provisionally priced. These
amounts result from the reversal of provisions once the final invoice amount
has been agreed with the customer.
((3) ) Provisional pricing impact represents the change in fair
value of the embedded derivative arising on sales of concentrate.
((4) ) Other income mainly represents scraps.
5. Net Finance Income/(Costs)
(Euro 000's) Three month period ended 30 Jun 2025 Three month period ended 30 June 2024 Six month period ended 30 Jun 2025 Six month period ended 30 Jun 2024
Interest expense
Other interest ((1)) (495) (445) (941) (956)
Interest on lease liabilities (10) (8) (19) (15)
Unwinding of discount on mine rehabilitation provision (Note 18) (238) - (475) (107)
Interest income
Financial interests 743 452 1,354 987
Total - (1) (81) (91)
((1) ) Interest expense primarily relates to interest accrued on
bank payable balances and €0.2 million corresponds to the unwinding of
discount on liabilities related to the potential acquisition of the shares of
Cobre San Rafael, SL.
Financial income include interest received on bank balances of €0.3 million
(2024: €0.6 million) and €0.7 million related to E-LIX project funding
(Note 8).
6. Tax
The Group determines the income tax expense for the period based on the
application of relevant tax laws and regulations in each jurisdiction,
including current and deferred tax effect. The major components of income tax
expense in the unaudited condensed consolidated interim financial statements
of profit or loss are:
(Euro 000's) Three month period ended 30 Jun 2025 Three month period ended 30 Jun 2024 Six month period ended 30 Jun 2025 Six month period ended 30 Jun 2024
Income taxes
Current income tax expense (3,865) (1,594) (10,856) (2,093)
Deferred tax expense (4,840) - (4,840) -
Income tax expense recognised in the statement of profit and loss (8,705) (1,594) (15,696) (2,093)
7. Earnings per share
The calculation of the basic and fully diluted loss per share attributable to
the ordinary equity holders of the Company is based on the following data:
Three months ended Three months ended Six months ended Six months ended
30 Jun 2025 30 Jun 2024 30 Jun 2025 30 Jun 2024
(Euro 000's)
Profit attributable to equity holders of the parent 29,681 15,104 60,148 17,130
Weighted number of ordinary shares for the purposes of basic earnings per 140,759 140,196 140,759 140,044
share (000's)
Basic profit per share (EUR cents/share) 21.1 10.8 42.7 12.2
Weighted number of ordinary shares for the purposes of fully diluted earnings 146,430 145,000 146,306 144,821
per share (000's)
Fully diluted profit per share (EUR cents/share) 20.3 10.4 41.1 11.8
At 30 June 2025 there are nil warrants, 5,302,000 options and 443,522 share
awards (Note 15) (31 December 2024: nil warrants, 5,423,666 options and nil
share awards) which have been included when calculating the weighted average
number of shares for 2025.
8. Property, plant and equipment
(Euro 000's) Land and buildings Right-of-use assets Plant and machinery Assets under construction ((1)) Deferred mining costs ((2)) Other assets ((3)) Total
Cost
At 1 January 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 151 - 561 32,388 1,310 - 34,410
Reclassifications - - 1,958 (1,958) - - -
Increase in rehab. Provision 741 - - - - - 741
Write-off - (148) (439) - - - (587)
At 30 June 2024 84,409 6,928 321,214 101,031 65,382 951 579,915
Additions 82 - (229) 20,413 8,592 - 28,858
Increase in rehab. Provision 2,533 - - - - - 2,533
Reclassifications - - 19,092 (20,011) - 29 (890)
Other transfers (572) - - (2,586)((6)) - - (3,158)
Write-off - - 439 - - - 439
Advances - - - 1,601((4)) - - 1,601
At 31 December 2024 86,452 6,928 340,516 100,448 73,974 980 609,298
Additions ((8)) 392 - - 16,570 17,178 - 34,140
Increase in rehab. Provision 116 - - - - - 116
Reclassifications - - 2,468((7)) (1,839) - 19 648
Disposals - - - (14) - - (14)
30 Jun 2025 86,960 6,928 342,984 115,165 91,152 999 644,188
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 period((5)) 3,387 244 13,201 - 2,530 21 19,383
Write-off - (57) - - - - (57)
At 30 June 2024 28,089 2,718 126,749 - 21,593 785 179,934
Charge for the period 2,805 253 14,127 - 3,125 22 20,332
At 31 December 2024 30,894 2,971 140,876 - 24,718 807 200,266
Charge for the period 3,012 257 15,917 - 3,872 34 23,092
30 Jun 2025 33,906 3,228 156,793 - 28,590 841 223,358
Net book value
30 Jun 2025 53,054 3,700 186,191 115,165 62,562 158 420,830
At 31 December 2024 55,558 3,957 199,640 100,448 49,256 173 409,032
( )
( )
((1)) Assets under construction at 30 June 2025 were €115.2 million (31
December 2024: €100.4 million) which include sustaining capital
expenditures, tailings dams project, E-LIX plant, solar plant and the San
Dionisio area.
((2)) Stripping costs excluding San Dionisio.
((3)) Includes motor vehicles, furniture, fixtures and office equipment which
are depreciated over 5-10 years.
((4)) Advances related to E-LIX plant. The above fixed assets are mainly
located in Spain.
((5)) Increase of depreciation due to the update of its ore reserves in May
2024 in the subsidiary ARM.
((6)) Transfer to Prepayments for service contract (Note 12).
((7)) Reclassifications of €0.7 million related to low-rotation stock
reclassified from inventories (material supplies).
((8)) During H1 2025, the Group capitalised €0.3 million of borrowing costs
related to the construction of the solar plant in accordance with IAS 23. The
average effective interest rate applied was 1.4%. The tax deductibility of
these capitalised borrowing costs will be realised over the asset's useful
life through depreciation deductions, rather than as an immediate tax relief.
The above fixed assets are mainly located in Spain.
E-LIX Project
In May 2019, Atalaya initiated a partnership with Lain Technologies Ltd.
(hereinafter "Lain") for the development of technology known as E-LIX. The
E-LIX Technology is a newly-developed technology invented and owned by Lain
which is protected by trade secret rights. Atalaya's rights over the E-LIX
technology is limited to its use on favourable terms and other benefits but
excluding the ownership.
E-LIX is an innovative electrochemical extraction process developed by Lain to
assess the production of zinc and copper cathodes, as well as other
derivatives of these metals, from complex sulphide ores.
Lain and Atalaya have partnered to develop the E-LIX technology since 2019.
During these years, the collaboration has progressed through different phases,
summarised as follows:
· Phase 0: Preliminary work and research.
· Phase 1: Construction and commissioning of the Pilot Plant.
· Phase 2: Operation of the Pilot Plant and feasibility studies of
the project.
· Phase 3: Construction and commissioning of an Industrial Plant.
As a result of the successful laboratory tests carried out by Atalaya on the
E-LIX technology during Phase 0, in July 2020, Atalaya and Lain reached a
global agreement and executed a memorandum of understanding ("MOU"), with the
first step being the construction of a pilot plant (the "Pilot Plant") fully
funded by Atalaya via loans.
The Pilot Plant was built during 2021 and confirmed the technical feasibility
of E-LIX, proving the capacity of leaching selective metals from concentrates
and achieving high recovery rates for copper and zinc through a more efficient
and sustainable process compared to traditional methods.
In December 2021, the Company's Board of Directors approved the construction
and financing of a larger-scale plant with a significantly higher processing
capacity than the Pilot Plant (the "Industrial Plant").
Throughout the partnership from 2019 and aligned with the MOU signed between
Atalaya and Lain, several agreements have been signed, including:
· Construction of the fixed assets required for the use of the E-LIX
technology;
· Exclusivity agreements
· Funding agreements for the construction and the commissioning of
the Pilot Plant
· Funding agreements for the construction and commissioning of the
Industrial Plant; and
· Operational agreements for the construction of the Industrial
Plant.
As of 30 June 2025, Atalaya has balances related to Lain and its E-LIX
technology amounting to €55.4 million, as detailed below:
Description Caption Note Amount (€k)
Pilot plant Non-current receivables 13 2,976
Industrial Plant Non-current Receivables (prepayments) 12 30,117
Industrial Plant PPE 8 13,025
Convertible Loan Current receivables 13 9,535
55,356
Commissioning and Ramp-up progress on the Industrial Plant
Commissioning and ramp-up activities at the E-LIX Phase I plant continued
during 2025. While the leaching process has continued to deliver results in
line with technical expectations, progress towards achieving sustainable,
economically viable throughput levels has been more challenging and materially
slower than anticipated.
The process developer and operator, Lain, has advised that further
improvements are expected in the third quarter 2025 to achieve the expected
nameplate capacity of the Industrial Plant.
The reduced throughput rate at present increases the risk that Lain may
experience challenges with liquidity and meeting ongoing working capital
requirements, although Atalaya or its management does not have direct insight
into Lain's financial position. The ability to achieve and maintain optimal
throughput will depend on a number of factors, including the availability of
suitable feed material and the successful implementation of plant
modifications and refinements.
To support this effort and decrease the risk, Atalaya will initiate an
independent third-party review to assess actual and potential plant
performance, confirm achievable throughput capacity, and identify further
optimisation opportunities.
While Atalaya remains confident in the underlying potential of the E-LIX
technology, particularly in improving metal recoveries from complex
polymetallic ores which could support the conversion of resources into
reserves, the long-term economic viability of the technology and the
associated investment in the Industrial Plant, will ultimately depend on
Lain's ability to achieve and sustain profitable throughput levels in the
short to medium term or in its ability to find a financial partner, that may
or may not be Atalaya, to provide the necessary financial support until Lain
achieves profitable production levels.
Recoverability of Assets
As at 30 June 2025, the commissioning and ramp-up activities at the Industrial
Plant, which is based on a novel hydrometallurgical process, continued. The
E-LIX technology has demonstrated positive results in the recovery of pure
zinc and copper, as well as their derivatives, in a technologically efficient
manner. The E-LIX technology unlocks the production of metals from complex
ores in a consistently and financially viable manner and its use at an
industrial scale could potentially increase significantly the life of the mine
at Proyecto Riotinto.
As of the reporting date, Atalaya has not found any significant issue in the
use or application of the E-LIX technology and therefore, Atalaya continues to
believe the E-LIX technology will bring significant value to its operations as
the leaching process has delivered results in line with technical expectations
but ramp-up to profitable throughput levels has been slower than anticipated.
Management is actively working with Lain to address operational challenges and
expects further progress in the second half of the year.
As at 30 June 2025, the Group has assessed whether there are any significant
changes to the E-LIX technology's business model and/or to the indicators of
impairment under IAS 36 Impairment of Assets performed as at 31 December 2024.
As at the reporting date, no impairment has been recognised as Atalaya
estimates on the financial model for the use of the technology remains valid
until the independent third-party review is concluded.
However, management notes that continued delays in achieving design throughput
capacity may have a potential impact on processing costs and the operator's
liquidity position. In the event that the independent third-party review shows
that design throughput capacity cannot be reached, there may be a resulting
adverse impact on unit processing costs and therefore, in the ability of
Atalaya to recover its investment in Lain and its E-LIX Technology since 2019.
Refer to Note 13 of Atalaya's financial statements as at 31 December 2024 for
further information on the impairment analysis carried out.
9. Intangible assets
(Euro 000's) Permits ((1)) Licences, R&D and software Other intangible assets Total
Cost
At 1 January 2024 81,199 8,758 - 89,957
Additions 894 - - 894
At 30 June 2024 82,093 8,758 - 90,851
Additions (894) - 17,771 ((2)) 16,877
Reclassifications (3,128) (6,948) 10,076 -
At 31 December 2024 78,071 1,810 27,847 107,728
Additions - - 4,752 4,752
Reclassification - 28 - 28
30 Jun 2025 78,071 1,838 32,599 112,508
Amortisation
At 1 January 2024 32,080 8,480 - 40,560
Charge for the period 1,249 15 - 1,264
At 30 June 2024 33,329 8,495 - 41,824
Charge for the period 2,629 14 - 2,643
Reversal of impairment losses - (6,948)((3)) - (6,948)
At 31 December 2024 35,958 1,561 - 37,519
Charge for the period 2,687 16 - 2,703
At 30 June 2025 38,645 1,577 - 40,222
Net book value
At 30 June 2025 39,426 261 32,599 72,286
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
((2)) Additions in 2024 include €16.7 million at fair value related to the
interest to acquire the 80% of the shares of Cobre San Rafael, SL, as per the
Shareholders' Agreement, including €16.5 million (note 26) and €0.2
million related to capitalisation expenses in accordance with the policy of
the Group once the Touro Project was granted as Strategic Industrial Project
(PIE).
((3)) Reversal of Impairment on Intangible Assets
Additions during H1 2025 relate to the capitalisation of exploration and
evaluation costs in connection with Proyecto Masa Valverde (€2.4 million)
and Proyecto Touro (€2.4 million).
The ultimate recovery of balances carried forward in relation to areas of
interest or all such assets including intangibles is dependent on successful
development, and commercial exploitation, or alternatively the sale of the
respective areas.
The Group conducts impairment testing on an annual basis unless indicators of
impairment are not present at the reporting date.
On 29 January 2020, the Company released an update on Proyecto Touro. The
Company referenced news from 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 had actively worked with stakeholders to advance the
permitting process and improve the regulatory framework for Proyecto Touro. In
2024, the permitting and operational environment for the project had improved
significantly, leading to a reassessment of its technical and financial
feasibility.
A key development had been the designation of Proyecto Touro as a Strategic
Industrial Project ("PIE") by the Xunta de Galicia. This designation had
granted priority status, accelerated administrative procedures, and reduced
regulatory uncertainties, removing the primary risk factor that had led to the
initial impairment.
In compliance with IAS 36 - Impairment of Assets, the Company 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 able to generate economic benefits in line with initial
expectations.
As a result, the impairment loss of €6.9 million was fully reversed as at 31
December 2024.
10. Inventories
(Euro 000's) 30 Jun 2025 31 Dec 2024
Finished products 10,205 19,732
Materials and supplies 24,492 25,540
Work in progress 2,020 3,890
Total inventories 36,717 49,162
As of 30 June 2025, copper concentrate produced and not sold amounted to 9,820
tonnes (31 Dec 2024:21,815 tonnes). Accordingly, the inventory for copper
concentrate was €10.2 million (31 Dec 2024: €19.7 million).
Materials and supplies relate mainly to machinery spare parts. Work in
progress represents ore stockpiles, which is ore that has been extracted and
is available for further processing.
11. Dividends
Cash dividends declared and paid during the period:
(Euro 000's) Three month period ended 30 Jun 2025 Three month period ended 30 June 2024 Six month period ended 30 Jun 2025 Six month period ended 30 Jun 2024
Dividends declared and paid - - - -
Cash dividends declared but not paid during the period:
(Euro 000's) Three month period ended 30 Jun 2025 Three month period ended 30 June 2024 Six month period ended 30 Jun 2025 Six month period ended 30 Jun 2024
Dividends declared but not paid 3,871 5,244 3,871 5,244
Cash dividends paid after the period:
(Euro 000's) 30 Jun 2025 30 Jun 2024 31 Dec 2024
Dividend payable 3,871 5,244 -
A final dividend of US$0.03 in respect of 2024 was proposed on 17 March 2025
for approval by shareholders at the 2025 Annual General Meeting ("AGM"). This
equated to €0.0275 per share at the exchange rate published by the European
Central Bank on 17 March 2025. The dividend resulted in a total dividend for
2024 of US$0.07 per share. The final dividend for 2024 was approved by
shareholders at the AGM held on 24 June 2025 and was paid to holders of CREST
Depository Interests on 23 July 2025.
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.
12. Trade and other receivables
(Euro 000's) 30 Jun 2025 31 Dec 2024
Non-current
Deposits 922 611
Loans 134 141
Prepayments for service contract ((1)) 30,117 29,662
Other non-current receivables 111 2,838
31,284 33,252
Current
Trade receivables at fair value - subject to provisional pricing 21,677 9,727
Trade receivables from shareholders at fair value - subject to provisional 7,774 1,042
pricing (Note 22.3)
Deposits 35 35
VAT receivables 25,493 20,898
Tax advances 135 -
Prepayments 4,347 4,507
Other current assets 1,044 654
60,505 36,863
Allowance for expected credit losses - -
Total trade and other receivables 91,789 70,115
((1)) On 28 January 2022 the Company signed a loan for €15 million and on 8
May 2023 an amendment increasing this amount to up to €20 million for the
construction of the first phase of the industrial-scale E-LIX plant ("Phase
I"). This loan was granted for a fixed term of 10 years from the start of
commercial production. This balance includes capitalised interest, and
repayment will be made through the use of the E-LIX technology. This balance
also includes €7.6 million referred to additional costs classified as
prepayments related to running costs of the Industrial Plant of Proyecto E-LIX
(see note 8).
Trade receivables are shown net of any interest applied to prepayments.
Payment terms are aligned with offtake agreements and market standards and
generally are 7 days on 90% of the invoice and the remaining 10% at the
settlement date which can vary between 1 to 5 months. The fair values of trade
and other receivables approximate to their book values.
Non-current deposits included €250k (€250k at 31 December 2024) as a
collateral for bank guarantees, which was recorded as restricted cash (or
deposit).
13. Loans
(Euro 000's) 30 Jun 2025 31 Dec 2024
Non-current loans
Loans 2,679 2,627
2,679 2,627
Current loans
Loans 9,535 5,352
9,535 5,352
Non-current loans relate to the loan agreement with Lain Technologies for the
Pilot Plant, comprising €2.3 million in principal plus €0.4 million in
accrued interest. The loan bears interest at EURIBOR 12M + 2%.
On 30 September 2024 the Company entered into a convertible loan agreement,
providing a credit facility of up to €10 million, maturing on 31 December
2025. This facility bears interest at EURIBOR 3M + 2%. As at the reporting
date, the balance includes €9.4 million principal drawn under the facility
and €0.1 in accrued interest (refer to note 8).
14. Cash and cash equivalents
(Euro 000's) 30 Jun 2025 31 Mar 2025 31 Dec 2024 30 Jun 2024 31 Mar 2024
Unrestricted cash and cash equivalents at Group level 83,747 44,020 43,184 76,253 58,895
Unrestricted cash and cash equivalents at Operation level 19,266 25,641 9,694 4,784 27,260
Consolidated cash and cash equivalents 103,013 69,661 52,878 81,037 86,155
The table above provides a comprehensive overview of the cash and cash
equivalents held by Atalaya as of 30 June 2025.
Cash and cash equivalents denominated in the following currencies:
(Euro 000's) 30 Jun 2025 31 Mar 2025 31 Dec 2024 30 Jun 2024 31 Mar 2024
Euro - functional and presentation currency 55,821 39,813 37,299 57,782 43,374
Great Britain Pound 60 307 70 139 126
United States Dollar 47,132 29,541 15,509 23,116 42,655
Consolidated cash and cash equivalents 103,013 69,661 52,878 81,037 86,155
15. Share capital and share premium
Issued and fully paid Shares Share Capital Share premium Total
Issue Date Price (£) Details 000's €'000 €'000 €'000
31 December 2023/1 January 2024 139,880 13,596 319,411 333,007
9-Feb-24 3.090 Exercised share options ((a)) 20 3 71 74
7-May-24 2.015 Exercised share options ((b)) 67 6 151 157
22-May-24 2.015 Exercised share options ((c)) 600 53 1,368 1,421
27-Jun-24 4.160 Exercised share options ((d)) 120 11 570 581
27-Jun-24 3.575 Exercised share options ((d)) 36 3 149 152
27-Jun-24 3.270 Exercised share options ((d)) 36 3 136 139
26-Dec-24 Capital increase** - 272 - 272
26-Dec-24 Capital decrease** - (1,279) - (1,279)
31-Dec-24 140,759 12,668 321,856 334,524
At 30-Jun-25 140,759 12,668 321,856 334,524
*The Company's share capital at 30 June 2025 is 140,759,043 ordinary shares
(140,759,043 at 31 December 2024) of €0.09 each.
** Nominal value converted from 7.5p to €0.09 per share
In 2024, following the re-domiciliation of Atalaya to Spain, and in accordance
with Spanish corporate law, the Company redenominated its share capital to
euros. As part of this process, the share capital, represented by 140,759,043
ordinary shares, was converted from GBP 10,556,928.22 to EUR 12,395,853.02,
with the nominal value per share adjusted from GBP 0.075 to EUR 0.088065
(applying the exchange rate of 0.85165 EUR/GBP).
Subsequently, in order to round the nominal value of each share to EUR 0.09
following the Cross-Border Transformation, shareholders approved a capital
increase of EUR 272,460.85, using distributable reserves. This adjustment
raised the nominal value of each share by EUR 0.001935, resulting in a total
share capital of EUR 12,668,313.87.
Issued capital
There has been no issuance of share capital during H1 2025.
(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.
The Company's share capital at 30 June 2025 is 140,759,043 ordinary shares of
€0.09 each.
In general, option agreements contain provisions adjusting the exercise price
in certain circumstances including the allotment of fully paid ordinary shares
by way of a capitalisation of the Company's reserves, a subdivision or
consolidation of the ordinary shares, a reduction of share capital and offers
or invitations (whether by way of rights issue or otherwise) to the holders of
ordinary shares.
Share Options
Details of share options outstanding as at 30 June 2025:
Grant date Expiry date Exercise price £ Share options
30 June 2020 29 June 2030 1.475 516,000
24 June 2021 23 June 2031 3.090 996,000
22 June 2022 30 June 2027 3.575 1,150,000
22 May 2023 21 May 2028 3.270 1,230,000
11 June 2024 10 June 2029 4.135 1,260,000
22 Dec 2024 21 Dec 2029 3.335 150,000
Total 5,302,000
Weighted average Share options
exercise price £
At 1 January 2025 3.343 5,423,666
Options exercised during the year 3.423 (40,000)
Expired during the year - (81,666)
Granted during the year - -
30 June 2025 3.343 5,302,000
By agreement with the respective employees, the 40,000 options exercised
during H1 2025 were settled in cash, and no share capital was issued in
respect of these awards.
Warrants
As at 30 June 2025 and 2024 there were no warrants.
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, 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 (note 23.2).
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 GM Riotinto (PDMR) 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 2024 Annual Report (page 96). The awards are subject to malus and clawback
provisions (note 23.2).
16. Other reserves
(Euro 000's) FV reserve of financial assets at FVOCI ((2)) Non-Distributable reserve ((3)) Total
Share option Bonus share Depletion factor ((1)) Distributable
reserve ((4))
At 1 January 2024 11,026 208 37,778 (1,156) 8,316 14,291 70,463
Recognition of share- based payments 302 - - - - - 302
Recognition of non-distributable reserve - - - - 142 - 142
Recognition of distributable reserve - - - - - 9,297 9,297
Recognition of depletion factor - - 7,500 - - - 7,500
At 30 June 2024 11,328 208 45,278 (1,156) 8,458 23,588 87,704
Recognition of depletion factor - - 1,449 - - - 1,449
Recognition of distributable reserve - - - - - (1,449) (1,449)
1,077 - - - - - 1,077
Recognition of share-based payments
Change in fair value of financial assets at fair value through OCI - - - (7) - - (7)
Other changes in reserves 464 - - - - (464) -
At 31 December 2024 12,869 208 46,727 (1,163) 8,458 21,675 88,774
Recognition of share-based payments 537 - - - - - 537
Recognition of non-distributable reserve - - - - 1 - 1
Recognition of distributable reserve - - - - - 13 13
At 30 June 2025 13,406 208 46,727 (1,163) 8,459 21,688 89,325
((1) ) Depletion factor reserve
At 30 June 2025, the Group has recognised €nil (30 June 2024: €7.5million)
as a depletion factor reserve as per the Spanish Corporate Tax Act.
((2) ) Fair value reserve of financial assets at FVOCI
The Group has elected to recognise changes in the fair value of certain
investments in equity securities in OCI, as explained in (1) above. These
changes are accumulated within the FVOCI reserve within equity. The Group
transfers amounts from this reserve to retained earnings when the relevant
equity securities are derecognised.
((3) ) Non-distributable reserve
To comply with Spanish Law, the Group needed to record a reserve of profits
generated equal to a 10% of profit/(loss) for the year until 20% of share
capital is reached.
((4) ) Distributable reserve
Distributable reserves include the transfer from income for the year
attributable to the parent for 2024.
17. Trade and other payables
(Euro 000's) 30 Jun 2025 31 Dec 2024
Non-current
Other non-current payables 12,610 12,492
Government grant 1,494 1,491
14,104 13,983
Current
Trade payables 73,743 78,965
Trade payables to shareholders (Note 23.3) 161 109
Accruals 1,761 2,505
Other 8,429 8,511
84,094 90,090
As of 30 June 2025, other non-current payables include €9.7 million related
to liabilities arising from the potential acquisition of 80% of the shares of
Cobre San Rafael, SL, in accordance with the Shareholders' Agreement (note 9).
An additional €2.8 million relates 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 associated with the
potential increase in the stake of Cobre San Rafael, S.L., under the
Shareholders' Agreement (note 9). This amount is classified as current, as the
likelihood of reaching the associated milestone is considered high, making
settlement probable within the current year.
Trade payables primarily relate to the acquisition of materials, supplies and
other services. These payables are non-interest bearing and are not secured by
any guarantees. The fair value of trade and other payables approximates their
carrying values.
Trade payables are non-interest-bearing and are normally settled on 60-day
terms.
18. Provisions
(Euro 000's) Other provisions Legal costs Rehabilitation costs Total costs
At 1 January 2024 750 227 26,691 27,668
Used of provision - (34) (297) (331)
Increase in provision - - 740 740
Finance cost - - 107 107
Transfer to other non-current payables (750) - - (750)
At 30 June 2024 - 193 27,241 27,434
Additions - 230 - 230
Increase in provision - - 2,534 2,534
Use of provision - (28) (647) (675)
Finance cost - - 721 721
At 31 December 2024 - 395 29,849 30,244
Use of provision - (100) (420) (520)
Increase in provision - - 116 116
Finance cost - - 475 475
At 30 June 2025 - 295 30,020 30,315
(Euro 000's) 30 Jun 2025 31 Dec 2024
Non-current 29,912 29,328
Current 403 916
Total 30,315 30,244
Rehabilitation provision
Rehabilitation provision represents the accrued cost required to provide
adequate restoration and rehabilitation upon the completion of production
activities. These amounts will be settled when rehabilitation is undertaken,
generally over the project's life.
The discount rate used in the calculation of the net present value of the
liability as at 30 June 2025 was 3.23% (31 December 2024: 3.23%), which is the
15-year Spanish Government Bond rate for 2025. An inflation rate of 2%-2.80%
(31 December 2024: 2%-2.80%) is applied on annual basis.
In May 2024, Atalaya incorporated an update of its ore reserves based on an
independent expert analysis in accordance with the Canadian Institute of
Mining, Metallurgy and Petroleum ("CIM") Definition Standards on Mineral
Resources and Mineral Reserves adopted by the CIM Council (the "CIM
Standards"). This update had some impact on the Group's financial statements
and accounting estimates and reflects a revised understanding of the economic
potential and operational requirements of our mining assets.
Legal provision
As at 30 June 2025, the Group has been named as a defendant in several legal
proceedings in Spain, the outcomes of which remain uncertain. Following a
case-by-case assessment, management has determined a provision of €0.3
million, compared to €0.4 million recognised as at 31 December 2024. This
has been reflected in these unaudited Condensed Consolidated Interim Financial
Statements.
Other provisions
Other provisions were related with the called-up equity holdings of Atalaya
Masa Valverde S.L.
19. Borrowings
(Euro 000's) 30 Jun 2025 31 Dec 2024
Non-current borrowings
Credit facilities 8,305 10,866
8,305 10,866
Current borrowings
Credit facilities 24,630 6,921
24,630 6,921
The Group had credit approval for unsecured facilities totalling €85.6
million (€97.4 million at 31 December 2024). Atalaya drew down some of its
existing credit facilities to finance the solar plant, payable amount of
€11.0 million at 30 June 2025 (€13.9 million at 31 December 2024) and for
the construction of a new part of the processing plant payable amount of
€2.4 million at 30 June 2025 (€2.8 million at 31 December 2024).
Margins on borrowing with variable interest rates, usually 12 months EURIBOR,
range from 0.90% to 2.25% with an average margin of 1.33%.
At 30 June 2025, the Group had used €32.9 million of its facilities and had
undrawn facilities of €52.7 million.
Net cash reconciliation
Reconciliation of Liabilities Arising from Financing Activities
The reconciliation below provides information on changes in liabilities
arising from financing activities, including both cash and non-cash changes.
Net cash (€'000) 30 Jun 2025 31 Dec 2024
Cash and cash equivalents 103,013 52,878
Borrowings - repayable within one year (24,630) (6,921)
Borrowings - repayable after one year (8,305) (10,866)
Lease - as per IAS 7 (3,561) (3,801)
Net cash 66,517 31,290
€'000 Cash Borrowings Lease Total
Net cash as at 1 Jan 2024 121,007 (66,687) (4,378) 49,942
Financing cash flows (38,937) - - (38,937)
Proceeds from borrowings - (3,012) - (3,012)
Repayment of borrowings - 42,027 210 42,237
Foreign exchanges adjustments (1,033) - - (1,033)
Other changes
Interest paid - 956 - 956
Interest expense - (956) (15) (971)
Net cash as at 30 June 2024 81,037 (27,672) (4,183) 49,182
Financing cash flows (30,994) - - (30,994)
Proceeds from borrowings - 12 - 12
Repayment of borrowings - 9,873 309 10,182
Foreign exchanges adjustments 2,835 - - 2,835
Other changes
Interest paid - 175 30 205
Interest expense - (175) (15) (190)
Other changes - - 58 58
Net cash as at 31 December 2024 52,878 (17,787) (3,801) 31,290
Financing cash flows 51,393 - - 51,393
Proceeds from borrowings - (19,733) - (19,733)
Repayment of borrowings - 4,585 259 4,844
Foreign exchanges adjustments (1,258) - - (1,258)
Other changes
Interest paid - 738 - 738
Interest expense - (738) (19) (757)
Net cash as at 30 June 2025 103,013 (32,935) (3,561) 66,517
(*) The comparative figures of the cash flow statement include further
breakdown in respect comparative figures, breaking down loan proceeds and
repayments for a better understanding of the movement.
20. Lease liabilities
(Euro 000's) 30 Jun 2025 31 Dec 2024
Non-current
Lease liabilities 3,083 3,320
3,083 3,320
Current
Lease liabilities 478 481
478 481
Lease liabilities
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.
(Euro 000's) 30 Jun 2025 31 Dec 2024
Present value of minimum lease payments due
- Within one year 478 481
- Two to five years 1,842 1,856
- Over five years 1,241 1,464
3,561 3,801
(Euro 000's) 30 Jun 2025 30 Jun 2024
Lease liabilities
At 1 January 3,801 4,377
Interest expense 19 15
Lease payments (259) (259)
Write-off - (88)
At 30 Jun 3,561 4,045
At 30 Jun
Non-current liabilities 3,083 3,560
Current liabilities 478 485
3,561 4,045
21. Acquisition, incorporation and disposal of subsidiaries
There were no acquisitions or incorporation of subsidiaries during the
six-month period ended 30 June 2025 and 2024.
22. Winding-up of subsidiaries
There were no operations wound up during the six-month period ended 30 June
2025 and 2024.
23. Related party transactions
The following transactions were carried out with related parties:
23.1 Compensation of key management personnel
The total remuneration and fees of Directors (including Executive Directors)
and other key management personnel was as follows:
(Euro 000's) Three month period ended 30 Jun 2025 Three month period ended 30 June 2024 Six month period ended 30 Jun 2025 Six month period ended 30 Jun 2024
Directors' remuneration and fees 358 293 629 590
Directors' bonus ((1)) 294 327 294 327
Share -based benefits and other benefits to directors 129 47 170 95
Key management personnel fees 278 158 441 307
Key management bonus ((1)) 325 247 325 247
Share-based and other benefits to key management personnel 144 47 185 95
1,528 1,119 2,044 1,661
((1) ) These amounts related to the performance bonus for 2024 approved
by the Board of Directors of the Company during H1 2025. Director's bonus
relates to the amount approved for the CEO as an executive director and key
management bonus relates to the amount approved for other key management
personnel which are not directors of Atalaya Mining Copper, S.A.
Effective 1 January 2025, the Group included the COO 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.
23.2 Share-based benefits
During the period, the Company granted new conditional share awards under the
Atalaya Mining Long-Term Incentive Plan 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 unaudited interim consolidated income
statement for the six months ended 30 June 2025 in respect of these awards
amounted to €0.1 million.
Further information on the LTIP performance conditions and terms is set out in
the Directors' Remuneration Report of the 2024 Annual Report.
23.3 Transactions with related parties/shareholders
i) Transaction with shareholders
(Euro 000's) Three month period ended 30 Jun 2025 Three month period ended 30 June 2024
Six month period ended 30 Jun 2025 Six month period ended 30 Jun 2024
Trafigura Pte Ltd- Revenue from contracts ((a)) 43,648 17,702 66,910 37,648
Gain / (losses) relating provisional pricing within sales 2,041 (2,299) 2,746 (2,544)
45,689 15,403 69,656 35,104
Impala Terminals Huelva S.L.U. - Port Handling and Warehousing services ((b)) (247) (796) (1,376) (1,212)
Trafigura - Total revenue from contracts 45,442 14,607 68,280 33,892
(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 Q2 2025, the Company completed 5 sales transactions under the terms of
the 2015 Offtake Agreements valued at €16.7 million (Q2 2024: 3 sales valued
at €97.1 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 2015 Offtake Agreements.
In Q2 2025, the Company completed 2 spot sales (Q2 2024: nil spot sales valued
at €nil) valued at €28.1 million. No pricing adjustments were recorded in
Q2 2025. In comparison, Q2 2024 included a negative adjustment of €0.2
million, reflecting QP (quotational period) adjustments related to spot sales
made in the previous 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
In September 2015, Atalaya entered into a services agreement with Impala
Terminals Huelva S.L.U. ("Impala Terminals") for the handling, storage and
shipping of copper concentrates produced from Proyecto Riotinto. The agreement
covered total export concentrate volumes produced from Proyecto Riotinto for
three years for volumes not committed to Trafigura under its 2015 Offtake
Agreement and for the life of mine for the volumes committed to Trafigura
under its 2015 Offtake Agreement.
In September 2018, the Company entered into an amendment to the 2015 Port
Handling Agreement, which included improved financial terms and a five-year
extension.
During 2023, management carried out a reassessment of its relationship with
Impala Terminals in accordance with IAS 24 requirements and concluded that
Impala Terminals is a related party of the Group. These transactions with
related parties are at arm's length basis in a similar manner to transactions
with third parties.
In December 2023, the Company entered into an extension of the service
agreement with Impala Terminals for the handling, storage and shipping of
copper concentrates produced from Proyecto Riotinto on similar terms to the
2015 agreement and the extension in 2018. This 2023 extension has a term of
approximately five years and covers the concentrate volumes produced for
export from Proyecto Riotinto that are not already committed to the Trafigura
Group under its 2015 Offtake Agreement.
As at 30 June 2025, Impala Terminals was part of the Trafigura Group.
ii) Period-end balances with related parties
(Euro 000's) 30 Jun 2025 31 Dec 2024
Receivables from related parties:
Recursos Cuenca Minera S.L. 56 56
Total (Note 12) 56 56
The above balances bear no interest and are repayable on demand.
iii) Period-end balances with shareholders
(Euro 000's) 30 Jun 2025 31 Dec 2024
Receivable from shareholder (Note 12)
Trafigura - Debtor balance- subject to provisional pricing 7,774 1,042
Trafigura - Debtor balance- at amortised cost - -
7,774 1,042
Payable to joint venture of shareholder (Note 17)
Impala Terminals Huelva S.L.U. - Payable balance (161) (109)
(161) (109)
The above debtor balance arising from sales of goods and other balances bear
no interest and is repayable on demand.
24. 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.
25. 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, Atalaya Riotinto Minera, S.L.U. entered into a 50/50 joint venture
with Rumbo 5.Cero, S.L. ("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.
26. Significant events
The global macroeconomic environment remained affected by heightened
geopolitical tensions and economic policy uncertainty. Ongoing conflicts in
Eastern Europe and the Middle East, combined with renewed protectionist
measures such as the reintroduction of tariffs by major economies, have
contributed to increased volatility across commodity markets and international
trade routes.
These conditions have led to elevated and more volatile input costs,
disruptions to freight and logistics networks, and continued pressure on
energy prices. All of which are particularly relevant to the mining industry.
While Atalaya has not experienced any material operational disruption to date,
the broader financial implications of these external developments cannot be
estimated with any reasonable degree of certainty at this stage.
· On 10 January 2025, Atalaya Mining Copper, S.A. (formerly Atalaya
Mining Copper, S.A.) 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 Unified Environmental
Authorisation (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.
27. Events after the Reporting Period
· 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, who will
continue as an advisor to Atalaya and vice president of the Atalaya Riotinto
Foundation.
· 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.
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