REG - Atalaya MiningCopper - Q1 2025 Financial Results
29/05/2025 07:00
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RNS Number : 5063K Atalaya Mining Copper, S.A. 29 May 2025
29 May 2025
Atalaya Mining Copper, S.A.
("Atalaya" or the "Company")
Q1 2025 Financial Results
Strong results including the highest quarterly EBITDA in Atalaya history
Atalaya Mining (LSE: ATYM) is pleased to announce its unaudited first quarter
financial results for the period ended 31 March 2025 ("Q1 2025" or "the
Period") together with its unaudited condensed consolidated financial
statements.
Highlights
· Copper production of 14.3 kt, the best quarter since Q2 2021
· Cash Cost of $2.25/lb and AISC of $2.74/lb, well below FY2025
guidance
· EBITDA of €52.5 million, the highest quarterly figure in
Atalaya history
· Strong balance sheet, with net cash position of €38.1 million
and working capital surplus of €68.5 million
· Proyecto Touro permitting process continues to advance under
Galicia's strategic industrial project legislation
· Atalaya's shares were added to the FTSE UK Index Series following
the re-domiciliation to Spain, including the FTSE 250 Index from 7 May 2025
· San Dionisio was granted the environmental authorisation ("AAU"),
which allows for the expansion of mining activities, as announced on 15 May
2025
Q1 2025 Financial Results Summary
Period ended 31 March Unit Q1 2025 Q1 2024
Revenues from operations €k 130,668 69,938
Operating costs €k (78,154) (59,687)
EBITDA €k 52,514 10,251
Profit for the period €k 30,467 1,627
Basic earnings per share € cents/share 21.6 1.5
Cash flows from operating activities €k 26,039 (1,737)
Cash flows used in investing activities €k (22,399) (17,877)
Cash flows from financing activities €k 13,595 (16,809)
Net cash position ((1)) €k 38,147 36,067
Working capital surplus €k 68,535 59,608
Average realised copper price US$/lb 4.26 3.89
(excluding QPs)
Copper concentrate produced tonnes 80,170 52,684
Copper production tonnes 14,291 10,666
Cash Cost US$/lb payable 2.25 2.99
All-In Sustaining Cost ("AISC") US$/lb payable 2.74 3.17
(1) Includes restricted cash and bank borrowings at 31 March 2025
and 31 March 2024.
Alberto Lavandeira, CEO, commented:
"We are pleased to have delivered a strong quarter to begin 2025. Good grades
and plant throughput resulted in our best quarter of production in several
years. Cash Costs and AISC were well below our full-year guidance, thanks to
higher grades and stable site costs. Combined, these helped to deliver the
highest quarterly EBITDA in Atalaya's history.
This year is expected to be rich with catalysts, both at the corporate and
asset level. We completed our re-domiciliation and now benefit from inclusion
in the FTSE 250. At Riotinto, the San Dionisio deposit was granted the
environmental approval as expected, which will allow for an expansion of
mining activities. At Touro, the permitting process continues.
We remain very optimistic about the year ahead. We expect to make further
progress across our copper growth projects in Spain, at a time when the copper
market remains very tight despite global political developments and ongoing
sector M&A is reducing options for investors that seek exposure to copper
growth stories."
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 Q1 2025 Results | SparkLive | LSEG
(https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fsparklive.lseg.com%2FAtalayaMining%2Fevents%2Fd6d62af1-9284-4bd1-bfa2-80ab1331bcb6%2Fatalaya-mining-q1-2025-results&data=05%7C02%7Cmichael.rechsteiner%40atalayamining.com%7C8f8ab238448b4e1f37ba08dd96dc4718%7Cc8a387f772f64a3880d3a42d91fe8257%7C0%7C0%7C638832595010073854%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=8n6hO%2Fl%2FIkjO3YwjqQeouKbYX%2FYRMNZ3NMQzodmDT%2FU%3D&reserved=0)
Investor Meet Company Presentation
In addition, the Company will be holding a live presentation via the Investor
Meet Company platform today at 11:00 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.
Q1 2025 Operating Results Summary
Unit Q1 2025 Q1 2024
Ore mined tonnes 3,711,043 3,701,828
Waste mined ((1)) tonnes 11,311,284 5,539,677
Ore processed tonnes 4,221,891 3,740,093
Copper grade % 0.42 0.34
Copper concentrate grade % 17.83 20.25
Copper recovery % 80.98 84.74
Copper concentrate produced tonnes 80,170 52,684
Copper production tonnes 14,291 10,666
Payable copper production tonnes 13,490 10,139
Cash Cost US$/lb payable 2.25 2.99
All-in Sustaining Cost US$/lb payable 2.74 3.17
(1) Represents the Cerro Colorado pit only.
Mining
Ore mined was 3.7 million tonnes in Q1 2025 (Q1 2024: 3.7 million tonnes).
Waste mined at Cerro Colorado was 11.3 million tonnes in Q1 2025 (Q1 2024: 5.5
million tonnes). In addition, waste stripping activities continued at the San
Dionisio area.
Processing
Ore processed was 4.2 million tonnes in Q1 2025 (Q1 2024: 3.7 million tonnes),
which represents strong performance due to minimal downtime. The Company now
expects to complete its next SAG mill liner change in Q3 2025.
Copper grade was 0.42% in Q1 2025 (Q1 2024: 0.34%), as a result of pit
sequencing.
Copper recovery was 80.98% in Q1 2025 (Q1 2024: 84.74%), as a result of the
characteristics of certain ores.
Production
Copper production was 14,291 tonnes in Q1 2025 (Q1 2024: 10,666 tonnes), as a
result of strong throughput and higher copper grade.
On-site copper concentrate inventories were 19,031 tonnes at 31 March 2025 (31
December 2024: 21,815 tonnes). Nearly all of the concentrate inventories as at
31 December 2024 were sold during Q1 2025 and the Company expects to reduce
the current concentrate inventory balance to normalised levels during Q2 2025.
Copper contained in concentrates sold was 14,687 tonnes in Q1 2025 (Q1 2024:
10,286 tonnes).
Cash Cost and AISC Breakdown
$/lb Cu payable Q1 2025 Q1 2024
Mining 0.85 0.99
Processing 0.80 0.91
Other site operating costs 0.51 0.67
Total site operating costs 2.16 2.57
By-product credits (0.25) (0.14)
Freight, treatment charges and other offsite costs 0.34 0.56
Total offsite costs 0.09 0.42
Cash Cost 2.25 2.99
Cash Cost 2.25 2.99
Corporate costs 0.11 0.09
Sustaining capital (excluding tailings expansion) 0.06 0.02
Capitalised stripping costs ((1)) 0.26 -
Other costs 0.06 0.07
AISC 2.74 3.17
(1) Represents the Cerro Colorado pit only.
Note: Some figures may not add up due to rounding.
Cash costs were $2.25/lb payable copper in Q1 2025 (Q1 2024: $2.99/lb), with
the decrease due to higher copper production, higher silver credits and lower
treatment charges.
AISC were $2.74/lb payable copper in Q1 2025 (Q1 2024: $3.17/lb), with the
decrease in costs due to the same factors that impacted cash costs, partly
offset by higher capitalised stripping, sustaining capital and corporate
costs. AISC excludes investments in the tailings dam (consistent with prior
reporting) and waste stripping at the San Dionisio area.
Q1 2025 Financial Results Highlights
Income Statement
Revenues were €130.7 million in Q1 2025 (Q1 2024: €69.9 million), as a
result of higher copper concentrate sales, higher copper prices and lower
offsite costs.
Operating costs were €78.2 million in Q1 2025 (Q1 2024: €59.7 million), as
a result of higher mining and processing rates.
EBITDA was €52.5 million in Q1 2025 (Q1 2024: €10.3 million), which
represents the highest quarterly figure in Atalaya's history.
Profit after tax was €30.5 million in Q1 2025 (Q1 2024: €1.6 million) or
21.6 cents basic earnings per share (Q1 2024: 1.5 cents).
Cash Flow Statement
Cash flows from operating activities before changes in working capital were
€52.8 million in Q1 2025 (Q1 2024: €11.4 million) and €26.0 million
after working capital changes (Q1 2024: negative €1.7 million). Working
capital changes were impacted by higher trade receivables at Period end, a
significant portion of which was settled on 4 April 2025.
Cash flows used in investing activities were €22.4 million in Q1 2025 (Q1
2024: €17.9 million). Key investments in Q1 2025 included €1.6 million in
sustaining capex, €7.2 million in capitalised stripping at Cerro Colorado,
€3.0 million related to the San Dionisio area, €4.0 million to expand the
tailings dam and €0.3 million for the solar plant. In addition, €4.5
million was invested in the E-LIX Phase I Plant, of which €4.0 million was
recorded as a loan to Lain Technologies.
Cash flows from financing activities were positive €13.6 million in Q1 2025
(Q1 2024: negative €16.8 million), as a result of credit facility drawdowns.
Balance Sheet
The Company's balance sheet remains strong with consolidated cash and cash
equivalents of €69.7 million as at 31 March 2025 (31 December
2024: €52.9 million).
Current and non-current borrowings were €31.5 million, resulting in a net
cash position of €38.1 million as at 31 March 2025 (31 December
2024: €35.1 million).
Inventories of concentrate valued at cost were €16.4 million at 31 March
2025 (31 December 2024: €19.7 million). The total working capital surplus
was €68.5 million at 31 March 2025 (31 December 2024: €44.7 million).
Outlook for 2025
Full year 2025 guidance is unchanged from the outlook announced as part of the
Company's 2024 Annual Results. This includes copper production of 48,000 -
52,000 tonnes (weighted slightly towards H1 2025) and Cash Cost and AISC of
$2.70 - 2.90/lb and $3.20 - 3.40/lb copper payable, respectively. Guidance for
non-sustaining capital investments and exploration expenditures are also
unchanged.
Corporate Activities Update
Re-domiciliation
On 10 January 2025, the Company announced the completion of its
re-domiciliation to the Kingdom of Spain and trading under the new registered
name of Atalaya Mining Copper, S.A.
Indexation
Following the completion of the re-domiciliation, Atalaya's shares were added
to the FTSE UK Index Series effective 24 March 2025, including the FTSE
All-Share Index.
Subsequently, Atalaya's shares were added to the FTSE 250 Index effective from
7 May 2025. This milestone is expected to enhance the Company's visibility to
institutional investors.
Copper Concentrate Offtake
As a result of the favourable market conditions for producers of copper
concentrate, the Company is exploring options to unlock value from its
uncommitted future production, including allocations that were subject to
legacy offtake agreements which are expiring in the near term.
Asset Portfolio Update
Proyecto Riotinto
Waste stripping activities continued at San Dionisio in order to prepare the
area for future mining phases, with total material mined of 1.4 million tonnes
in Q1 2025.
Development progress continued in relation to the planned relocation of the
A-461 road that currently runs between Cerro Colorado and San Dionisio.
At San Antonio, the polymetallic deposit located immediately east of the
Cerro Colorado pit, an infill and step-out drilling programme is expected to
begin shortly.
On 15 May 2025, Atalaya announced that the Junta de Andalucía ("JdA") granted
the Unified Environmental Authorisation (or in Spanish, Autorización
Ambiental Unificada ("AAU")) to the San Dionisio deposit at Proyecto Riotinto,
which allows for the expansion of mining activities. 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.
E-LIX Phase I Plant
Commissioning and ramp-up activities continued at the E-LIX Phase I plant.
During Q1 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.
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")
At present, four rigs are infill drilling the veining stockwork and massive
sulphide type mineralisation at the Masa Valverde deposit.
The Company expects to start preparatory works related to the access ramp in
the coming months once it has completed the purchase of certain surface
rights.
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
responded to the feedback submitted during the public information period and
the vast majority of sectoral reports issued by the various departments of the
XdG have been finalised. In relation to the planned power transmission line,
good progress has been made, with agreements reached with the majority 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 ongoing including the definition of final flowsheets and
detailed process layout, in order to shorten the timeline to construction
start once permits are obtained. Finally, infill and step-out drilling
programmes are nearing completion, having focused on areas captured in the
initial mine plan and where mineralisation remains open.
Proyecto Ossa Morena
Drilling is expected to start at the Alconchel-Pallares copper-gold project in
June. At the Guijarro-Chaparral gold-copper project, drilling is expected to
begin in the coming months.
Proyecto Riotinto East
Gravimetric ground surveys and soil geochemistry are being carried out over
selected areas to better define future drill targets on the East belt
extension. Drilling in expected to begin in the coming months.
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.
The winter drilling programmes at both projects completed in March 2025, with
final assays pending. In the coming months, focus will be on the geological
interpretation and modelling of the data, as well as completing geophysical
surveys over certain areas in order to define the next drill targets.
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
(http://www.atalayamining.com)
ATALAYA MINING COPPER, S.A.
MANAGEMENT'S REVIEW AND
UNAUDITED INTERIM CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
31 March 2025
Notice to Reader
The accompanying unaudited interim condensed consolidated financial statements
of Atalaya Mining Copper, S.A. have been prepared by and are the
responsibility of Atalaya Mining's management.
Introduction
This report provides an overview and analysis of the financial results of
operations of Atalaya Mining Copper, S.A. and its subsidiaries ("Atalaya"
and/or "Group"), to enable the reader to assess material changes in the
financial position between 31 December 2024 and 31 March 2025 and results of
operations for the three months ended 31 March 2025 and 2024.
This report has been prepared as of 28 May 2025. The analysis, hereby
included, is intended to supplement and complement the unaudited interim
condensed consolidated financial statements and notes thereto ("Financial
Statements") as at and for the period ended 31 March 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. 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
Interim Condensed Consolidated Financial Statements in accordance with
International Accounting Standard 34: Interim Financial Reporting. The
currency referred to in this document is the Euro, unless otherwise specified.
Forward-looking statements
This report may include certain "forward-looking statements" and
"forward-looking information" under applicable securities laws. Except for
statements of historical fact, certain information contained herein constitute
forward-looking statements. Forward-looking statements are frequently
characterised by words such as "plan", "expect", "project", "intend",
"believe", "anticipate", "estimate", and other similar words, or statements
that certain events or conditions "may" or "will" occur. Forward-looking
statements are based on the opinions and estimates of management at the date
the statements are made, and are based on a number of assumptions and subject
to a variety of risks and uncertainties and other factors that could cause
actual events or results to differ materially from those projected in the
forward-looking statements. Assumptions upon which such forward-looking
statements are based include that all required third party regulatory and
governmental approvals will be obtained. Many of these assumptions are based
on factors and events that are not within the control of Atalaya and there is
no assurance they will prove to be correct. Factors that could cause actual
results to vary materially from results anticipated by such forward-looking
statements include changes in market conditions and other risk factors
discussed or referred to in this report and other documents filed with the
applicable securities regulatory authorities. Although Atalaya has attempted
to identify important factors that could cause actual actions, events or
results to differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events or results
not to be anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
statements. Atalaya undertakes no obligation to update forward-looking
statements if circumstances or management's estimates or opinions should
change except as required by applicable securities laws. The reader is
cautioned not to place undue reliance on forward-looking statements.
1. Incorporation and description of the Business
Atalaya Mining Copper S.A. (the "Company") was incorporated in Cyprus on 17
September 2004 as a private company with limited liability under the Companies
Law, Cap. 113 and was converted to a public limited liability company on 26
January 2005. Its registered office 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 allowed the Group to acquire up to 80% of the copper
project. Proyecto Touro, located in Galicia (north-west Spain), is currently
the permitting process at the time.
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 become 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 the year, 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 months ended 31 March 2025 and 2024, respectively.
Units expressed in accordance with the international system of units (SI) Unit Three month period ended 31 Mar 2025 Three month period ended 31 Mar 2024
Ore mined t 3,711,043 3,701,828
Waste mined t 11,311,284 5,539,677
Ore processed t 4,221,891 3,740,093
Copper ore grade % 0.42 0.34
Copper concentrate grade % 17.83 20.25
Copper recovery rate % 80.98 84.74
Copper concentrate t 80,170 52,684
Copper contained in concentrate t 14,291 10,666
Payable copper contained in concentrate t 13,490 10,139
Cash Cost* US$/lb payable 2.25 2.99
All-in Sustaining Cost* US$/lb payable 2.74 3.17
(*) Refer Section 5 of this Management Review.
$/lb Cu payable Q1 2025 Q1 2024
Mining 0.85 0.99
Processing 0.80 0.91
Other site operating costs 0.51 0.67
Total site operating costs 2.16 2.57
By-product credits (0.25) (0.14)
Freight, treatment charges and other offsite costs 0.34 0.56
Total offsite costs 0.09 0.42
Cash Cost 2.25 2.99
Cash Cost 2.25 2.99
Corporate costs 0.11 0.09
Sustaining capital (excluding one-off tailings expansion) 0.06 0.02
Capitalised stripping costs ((1)) 0.26 -
Other costs 0.06 0.07
AISC 2.74 3.17
(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 3.7 million tonnes in Q1 2025 (Q1 2024: 3.7 million tonnes),
compared with 3.5 million tonnes in Q4 2024.
Waste mined was 11.3 million tonnes in Q1 2025 (Q1 2024: 5.5 million tonnes),
compared with 10.2 million tonnes in Q4 2024. Separately, waste stripping
activities advanced at the San Dionisio area.
Processing
The plant processed 4.2 million tonnes of ore in Q1 2025 (Q1 2024: 3.7 million
tonnes) compared to 3.8 million tonnes in Q4 2024 which represents plant
performance above its 15 million tonne per annum nameplate capacity.
Copper grade in Q1 2025 was 0.42% (Q1 2024: 0.34%) compared to 0.41% in Q4
2024.
Copper recovery was 80.98% in Q1 2025 (Q1 2024: 84.74%), compared with 78.15%
in Q4 2024, the decrease regarding the previous year mainly due to restricted
access to ore zones caused by heavy rainfall during the quarter as well as
increased mineralogical complexity.
Production
Copper production was 14,291 tonnes in Q1 2025 (Q1 2024: 10,666 tonnes),
compared with 12,078 tonnes in Q4 2024. Higher production in Q1 2025 was
mainly the result of higher grades and ore processed despite of lower
recoveries.
On-site copper concentrate inventories at the end of Q1 2025 were
approximately 19,031 tonnes.
Copper contained in concentrates sold was 14,687 tonnes in Q1 2025 (Q1 2024:
10,286 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
Guidance for Proyecto Riotinto is unchanged from the previously announced
outlook.
Unit Guidance 2025
Ore mined million tonnes 15 - 16
Waste mined((1)) million tonnes 37 - 43
Ore processed million tonnes 15.5 - 15.8
Copper grade % 0.38 - 0.42
Copper recovery % 78 - 82
Copper production tonnes 48,000 - 52,000
Cash Cost $/lb payable $2.70 - 2.90
All-in Sustaining Cost $/lb payable $3.20 - 3.40
(1) Represents the Cerro Colorado pit only.
Production
Copper production guidance for FY2025 remains at 48,000 - 52,000 tonnes.
Production in FY2025 is expected to be weighted slightly towards H1 2025 as a
result of pit sequencing.
Operating Costs
Cash Cost and AISC guidance for FY2025 is unchanged:
· Cash Cost range of $2.70 - 2.90/lb copper payable
· AISC range of $3.20 - 3.40/lb copper payable
AISC guidance excludes investments in the tailings dam and ongoing waste
stripping at the San Dionisio area, which are included in the non-sustaining
capital investment guidance below.
Non-Sustaining Capital Investments
Guidance for FY2025 non-sustaining capital investments is unchanged at €58 -
82 million.
Exploration Expenditures
In FY2025, the Company's exploration expenditure budget remains at €6 - 8
million.
4. Overview of Financial Results
The following table presents summarised consolidated income statements for the
three months ended 31 March 2025, with comparatives for the three months ended
31 March 2024.
(Euro 000's) Three-month period ended 31 Mar 2025 Three-month period ended 31 Mar 2024
Revenues 130,668 69,938
Costs of sales (72,343) (56,757)
Corporate expenses (2,594) (1,927)
Exploration expenses (3,335) (855)
Care and maintenance expenditure (9) (432)
Other income 127 284
EBITDA 52,514 10,251
Depreciation/amortisation (12,894) (9,606)
Net foreign exchange (loss) (2,081) (1,571)
Net finance cost (81) (90)
Tax (6,991) (499)
Profit for the period 30,467 1,627
Three months financial review
Revenues for the three-month period ended 31 March 2025 amounted to €130.7
million (Q1 2024: €69.9 million). The increase in revenues was mainly due to
higher copper concentrate volumes sold with higher realised copper prices and
lower offsite costs.
The realised prices excluding QPs was US$4.26/lb copper during Q1 2025
compared with $3.89/lb copper in Q1 2024. The realised price, including QPs
was approximately $4.20/lb during the quarter ($3.79/lb in Q1 2024).
Cost of sales for the three-month period ended 31 March 2025 amounted to
€72.3 million, compared with €56.8 million in Q1 2024. Higher costs were
primarily attributable to higher sales volumes related to higher ore processed
and the increase in waste mined in the period.
Cash costs of $2.25/lb payable copper during Q1 2025 compared with $2.99lb
payable copper in the same period last year. The reduction in cash costs was
mainly due to higher copper production in the quarter, combined with a
stronger US Dollar/Euro exchange rate compared to Q1 2024. AISC for Q1 2025
excluding investment in the tailings dam expansion and San Dionisio stripping
were $2.74/lb payable copper compared to $3.17/lb payable copper in Q1 2024.
The decrease was primarily due to lower cash costs despite an increase in
capitalised stripping costs at Cerro Colorado.
Sustaining capex for Q1 2025 amounted to €1.6 million compared with €0.4
million in Q1 2024. Sustaining capex was mainly related to the new crusher and
continuous enhancements in the processing systems of the plant. In addition,
the Company invested €4.0 million during Q1 2025 to increase tailings dam
capacity. Stripping costs capitalised for Cerro Colorado during Q1 2025
amounted to €7.2 million (Q1 2024: €nil million).
Capex associated with the construction of the solar plant amounted to €0.3
million in Q1 2025, while investments in the E-LIX Phase I plant,
commissioning and ramp-up totalled €0.5 million and €4.0 million related
to the convertible loan. Additionally, a capex of €3.0 million is related to
the San Dionisio area.
Corporate expenses amounted to €2.6 million (Q1 2024: €1.9 million) and
include non-operating costs of the Cyprus office, corporate legal and
consultancy costs, ongoing listing costs, officers' and directors' emoluments,
and salaries and related costs of the corporate office.
Exploration costs for the three-month period ended 31 March 2025 amounted to
€3.3 million, higher than in Q1 2024 (€0.9 million), mainly due to the
Skellefte Belt Project and Rockliden Project in Sweden, which together
accounted for €2.4 million during the period.
EBITDA for the three months ended 31 March 2025 amounted to €52.5 million
compared with Q1 2024 of €10.3 million. The higher EBITDA was due to higher
sales as explained above and lower offsite costs.
The main item below the EBITDA line is depreciation and amortisation of
€12.9 million (Q1 2024: €9.6 million).
Net foreign exchange losses of €2.1 million were the result of the
depreciation of the Euro against the US Dollar over the quarter.
Net financing costs for Q1 2025 amounted to €0.1 million compared with
€0.1 million in Q1 2024.
Copper prices
The average realised copper price (excluding QPs) increased 9.5% from US$3.89
per pound in Q1 2024 to US$4.26 per pound in Q1 2025.
The average price of copper for the three months ended 31 March 2025 and 2024
respectively are summarised below:
$/lb Three-month period ended 31 Mar 2025 Three-month period ended 31 Mar 2024
Realised copper price excluding QPs closed 4.26 3.89
Market copper price per lb (period average) 4.24 3.94
Realised copper prices for the reporting period noted above have been
calculated using payable copper and exclude both provisional invoices and
final settlements of quotation periods (together "QPs"). The realised price
during the year, including the QP, was approximately $4.20/lb.
5. Non-GAAP Measures
Atalaya has included certain non-IFRS measures including "EBITDA", "Cash Cost
per pound of payable copper", "All-In Sustaining Costs" ("AISC") "realised
prices" and "Net Cash/Debt" in this report. Non-IFRS measures do not have any
standardised meaning prescribed under IFRS, and therefore they may not be
comparable to similar measures presented by other companies. These measures
are intended to provide additional information and should not be considered in
isolation or as a substitute for indicators prepared in accordance with IFRS.
EBITDA includes gross sales net of penalties and discounts and all operating
costs, excluding finance, tax, impairment, depreciation and amortisation
expenses.
Cash Cost per pound of payable copper includes cash operating costs, including
treatment and refining charges ("TC/RC"), freight and distribution costs net
of by-product credits. Cash Cost per pound of payable copper is consistent
with the widely accepted industry standard established by Wood Mackenzie and
is also known as the C1 cash cost.
AISC per pound of payable copper includes C1 Cash Costs plus royalties and
agency fees, expenditures on rehabilitation, capitalised stripping costs,
exploration and geology costs, corporate costs and recurring sustaining
capital expenditures but excludes one-off sustaining capital projects, such as
the tailings dam project.
Realised price per pound of payable copper is the value of the copper payable
included in the concentrate produced including the discounts and other
features governed by the offtake agreements of the Group and all discounts or
premiums provided in commodity hedge agreements with financial institutions if
any, expressed in USD per pound of payable copper. Realised prices do not
include period end mark to market adjustments in respect of provisional
pricing Realised price is consistent with the widely accepted industry
standard definition.
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 as at 31 March 2025 and
31 December 2024 and cash flows for Q1 2025 and 2024.
Liquidity information
(Euro 000's) 31 Mar 2025 31 Dec 2024
Unrestricted cash and cash equivalents at Group level 44,020 43,184
Unrestricted cash and cash equivalents at Operation level 25,641 9,694
Consolidated cash and cash equivalents 69,661 52,878
Net cash position ((1)) 38,147 35,091
Working capital surplus 68,535 44,728
((1) ) Includes borrowings
Unrestricted cash and cash equivalents, which include balances at both Group
and Operation levels, increased to €69.7 million as at 31 March 2025, up
from €52.9 million at 31 December 2024. This increase was primarily driven
by cash inflows from operating activities, partially offset by continued
investments and debt repayments. The increase in consolidated cash was
particularly notable at the operational level, where balances rose to €25.6
million from €9.7 million, while Group-level cash remained broadly stable at
around €44.0 million.
Despite positive operating cash flows, negative working capital movements,
mainly due to increases in trade receivables and inventories, acted to reduce
liquidity. Investment outflows also increased, reflecting ongoing capital
expenditure in areas such as San Dionisio, the E-LIX project, and enhancements
to processing systems. Financing activities contributed positively to the cash
position during the period, driven by new borrowings exceeding repayments. All
cash balances remain unrestricted and are available for general use at both
operational and corporate levels.
As of 31 March 2025, Atalaya reported a working capital surplus of €68.5
million, compared with €44.7 million at 31 December 2024. The improvement in
working capital reflects a stronger cash position and an increase in
short-term receivables, offsetting a modest decrease in inventories and
relatively stable short-term payables. The Group also maintained a net cash
position of €38.1 million, up from €35.1 million at year-end 2024,
underscoring its solid liquidity profile.
Overview of the Group's cash flows
(Euro 000's) Three-month period ended 31 Mar 2025 Three-month period ended 31 Mar 2024
Cash flows from operating activities 26,039 (1,737)
Cash flows used in investing activities (22,399) (17,877)
Cash flows from financing activities 13,595 (16,809)
Net increase in cash and cash equivalents 17,235 (36,423)
Net foreign exchange differences (452) 1,571
Total net cash flow for the period 16,783 (34,852)
Three months cash flows review
Cash and cash equivalents were €69.7 million at 31 March 2025. This was due
to the net results of cash generated from operating activities amounting to
€26.0 million, the cash used in investing activities amounting to €22.4
million, the cash generated from financing activities totalling €13.6
million, and net foreign exchange differences of negative €0.5 million.
Cash generated from operating activities before working capital changes was
€52.8 million. Trade receivables in the period increased by €29.3 million,
inventory levels increased by €5.2 million and trade payables decreased by
€0.6 million.
Investing activities during the quarter consumed €22.4 million, relating
mainly to capitalised stripping at Cerro Colorado, the tailings dams project,
E-LIX, San Dionisio area and continuous enhancements in the processing systems
of the plant.
Financing activities during the quarter generated €13.6 million, driven by
proceeds from borrowings of €16.6 million, partially offset by repayments of
existing unsecured credit facilities of €2.9 million.
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 these exchange rates can potentially impact the
results of operations and carrying value of assets and liabilities on the
balance sheet.
During the three months ended 31 March 2025, Atalaya recognised a foreign
exchange loss of €2.1 million (€1.6 million foreign exchange gain in Q1
2024). Foreign exchange loss mainly related to the devaluation of the EUR
against the USD, as sales proceeds are generally held in USD.
The following table summarises the movement in key currencies versus the EUR:
(Euro 000's) Three-month period ended 31 Mar 2025 Three-month period ended 31 Mar 2024
Average rates for the periods
GBP - EUR 0.8357 0.8563
USD - EUR 1.0523 1.0858
Spot rates as at
GBP - EUR 0.8551 0.8551
USD - EUR 1.0815 1.0811
7. Sustainability
Corporate Social Responsibility
Atalaya reaffirmed its commitment to community development in the Cuenca
Minera region through Fundación Atalaya's initiatives during the first
quarter of 2025. The foundation focused on education, tourism, culture,
sports, and local services, strengthening the region's social and economic
fabric.
A highlight this quarter was the consolidation of the Riotinto Experience, in
collaboration with Fundación Río Tinto. Tourists can now visit the mining
operation through a specially equipped vehicle, gaining firsthand insight into
modern mining. The initiative has been well-received and attracted visits from
key institutional figures, including the Delegate of Mines of Huelva and the
Minister of Tourism for Andalusia.
In education and employment areas, Fundación Atalaya supported IES Cuenca
Minera with "Proyecto Slalom," promoting road safety and inclusion. The Mining
Operator Training Course completed its theoretical and technical phases, and
students have begun internships in local companies. The foundation also
partnered with ADR Cuenca Minera, providing classroom space for training and
community use. In support of local infrastructure, a renewed agreement with
the Ayuntamiento de El Campillo helped fund the purchase of a new street
sweeper, continuing efforts to improve municipal services.
Cultural activities this quarter included sponsorship of Época, to organize a
poetry gathering led by Carmelo Rufo, and continued support for Carlos Javier
Pascual's book on the Bella Vista English Club. Fundación Atalaya also backed
the El Campillo carnival through an agreement with local group Los Esponjas,
promoting community tradition. In sports and recreation, the foundation
sponsored the Mina Bike Marathon, supported by the Andalusian Cycling
Federation, and the newly merged CD Trail Runners Cuenca Minera. It also
contributed to the Hermandad Santa Cruz El Pino to support their traditional
romería, preserving local cultural heritage.
Health and Safety
In the first quarter of 2025, health and safety performance remained
consistent with the previous year's trend. However, there was a slight uptick
in absolute figures due to one additional lost-time injury recorded among
contractor companies in the quarter. This development is reflected in the key
performance indicators, with the Frequency Rate (FR) ending the quarter at
6.68 and the Severity Rate (SR) at 0.09.
In terms of accident reduction targets, the Severity Rate objective was
achieved, while the Frequency Rate exceeded the target set for 2025 and was
therefore not met.
During the quarter, the Company completed the annual reports for the technical
disciplines of occupational risk prevention, the 2025 Prevention Plan, and the
Health and Safety Document - the latter forming part of the statutory Mining
Operations Plan. Additionally, the Preventive Activity Plan for 2025 was
finalised and launched.
With regard to Industrial Hygiene, nearly all planned measurements for the
first four-month period were carried out as scheduled. Training activities for
the First Response Brigade were also delivered in accordance with the
Company's annual safety training plan.
The first annual meeting of the Joint Health and Safety Committee was held,
serving as the key consultation and participation forum with workforce
representatives.
The Company also continued to implement controls for psychoactive substances
at entry points and within the onsite medical unit. The AI-based random
testing system, introduced last year, remains in place and continues to
improve the integrity of testing by selecting individuals or vehicles for
alcohol and drug screening based on intelligent algorithms.
Finally, Phase II of the "Zero Harm Challenge" project is progressing, with
active involvement from cross-functional working groups. These teams are
developing the ten most prevalent and widely supported proposals identified
during Phase I. The initiative has achieved strong engagement and commitment
from participants and remains central to the Company's strategy to foster a
robust preventive safety culture across all operations.
Environment
During the first quarter of 2025, the Environmental Department continued to
implement its programme of environmental monitoring and natural resource
management. This period was marked by several key developments.
There were no environmental incidents reported during the quarter. Total
rainfall recorded was 582.2 litres per square metre, representing an increase
of approximately 21% compared to the same period in the previous year. For the
current hydrological year, from October 2024 to March 2025, cumulative
rainfall reached 930.8 litres per square metre, which is 18% higher than that
recorded over the same period in the prior hydrological year.
On 10 January 2025, the Company submitted an application for a non-substantial
modification of the Unified Environmental Authorisation (AAU), related to
planned improvements to dust collection in the crushing area. This
modification was approved in February.
In addition, on 13 March 2025, a response document was filed addressing
feedback to the environmental report for the substantial modification of the
environmental permit concerning the expansion of the San Dionisio deposit. The
Environmental Authorisation was granted in May.
All mandatory annual reports were submitted to the Environmental
Administration. These included the Annual Waste Reports for both hazardous and
non-hazardous waste, the E-PRTR report concerning pollutant emissions, and the
management reports for protected species such as Erica andevalensis and bats.
The measures outlined in the Dust Action Plan continued to be actively
implemented. These measures included increased frequency of watering, improved
coordination across departments, and strengthened monitoring of dust emissions
generated by operations. In parallel, the Environmental Department remained
actively involved in the Restoration Plan, covering both operational and
historical areas of activity.
All scheduled internal monitoring of non-channelled atmospheric emissions was
carried out, with results remaining within regulatory thresholds.
Additionally, all other periodic and mandatory controls were performed as
planned, without incident. Several regulatory reports were also submitted to
the relevant environmental authorities over the course of the quarter.
Daily environmental inspections were conducted with a primary focus on
chemical storage and handling, site housekeeping, waste management, prevention
of uncontrolled discharges, and encouraging environmentally responsible
behaviour among ARM personnel and contractors. These inspections also included
regular reviews of dust control systems and drainage infrastructure. A total
of 51 inspections were carried out across the plant, mining areas, and
contractor camps during the first 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 inflationary pressure on goods and
services required for the business and geopolitical developments worldwide.
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 31 March 2025, there are no significant changes in critical accounting
policies or estimates to those applied in 2024.
10. Other Information
Additional information about Atalaya Mining Copper, S.A. is available at
www.atalayamining.com (http://www.atalayamining.com)
Unaudited interim condensed consolidated financial statements on subsequent
pages.
By Order of the Board of Directors,
___________________________________
Neil Gregson
Chair, Atalaya Mining Copper, S.A.
Seville, 28 May 2025
Unaudited Interim Condensed Consolidated Income Statement
(All amounts in Euro thousands unless otherwise stated)
For the period ended 31 March 2025 and 2024
(Euro 000's) Note Three-month period ended 31 Mar 2025 Three-month period ended 31 Mar 2024
Revenue 4 130,668 69,938
Operating costs and mine site administrative expenses (72,097) (56,606)
Mine site depreciation and amortisation (12,894) (9,606)
Gross profit 45,677 3,726
Administration and other expenses (2,594) (1,927)
Share-based benefits 16 (246) (151)
Exploration expenses (3,335) (855)
Care and maintenance expenditure (9) (432)
Other income 127 284
Operating profit 39,620 645
Net foreign exchange (loss)/gain 3 (2,081) 1,571
Net finance costs 5 (81) (90)
Profit before tax 37,458 2,126
Tax 6 (6,991) (499)
Profit for the period 30,467 1,627
Profit for the period attributable to:
- Owners of the parent 7 30,467 2,026
- Non-controlling interests - (399)
30,467 1,627
Earnings per share from operations attributable to equity holders of the
parent during the period:
Basic earnings per share (EUR cents per share) 7 21.6 1.5
Fully diluted earnings per share (EUR cents per share) 7 20.8 1.4
Profit for the period 30,467 1,627
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 30,468 1,623
Total comprehensive income for the period attributable to:
- Owners of the parent 7 30,468 2,022
- Non-controlling interests - (398)
30,468 1,623
The notes on the subsequent pages are an integral part of these Unaudited
Interim Condensed Consolidated Financial Statements.
Unaudited Interim Condensed Consolidated Statement of Financial Position
(All amounts in Euro thousands unless otherwise stated)
As at 31 March 2025 and 31 December 2024
(Euro 000's) Note 31 Mar 2025 31 Dec 2024
Assets Unaudited Audited
Non-current assets
Property, plant and equipment 8 413,676 409,032
Intangible assets 9 71,151 70,209
Loans 13 2,654 2,627
Trade and other receivables 12 33,488 33,252
Non-current financial assets 2.3 1,101 1,101
Deferred tax asset 14,997 15,085
537,067 531,306
Current assets
Inventories 10 44,392 49,162
Loans 13 9,434 5,352
Trade and other receivables 12 64,528 36,863
Tax refundable 266 266
Other financial assets 2.3 26 23
Cash and cash equivalents 14 69,661 52,878
188,307 144,544
Total assets 725,374 675,850
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 89,034 88,774
Accumulated profit 123,535 93,085
547,093 516,383
Non-controlling interests 2,154 2,154
Total equity 549,247 518,537
Liabilities
Non-current liabilities
Trade and other payables 17 13,988 13,983
Provisions 18 29,564 29,328
Lease liabilities 20 3,202 3,320
Borrowings 19 9,601 10,866
56,355 57,497
Current liabilities
Trade and other payables 17 89,457 90,090
Lease liabilities 20 480 481
Borrowings 19 21,913 6,921
Current provisions 18 911 916
Current tax liabilities 7,011 1,408
119,772 99,816
Total liabilities 176,127 157,313
Total equity and liabilities 725,374 675,850
The notes on the subsequent pages are an integral part of these Unaudited
Interim Condensed Consolidated Financial Statements.
Unaudited Interim Condensed Consolidated Statements of Changes in Equity
(All amounts in Euro thousands unless otherwise stated)
For the period ended 31 March 2025 and 2024
(Euro 000's) Note Share capital Share premium ((1)) Other reserves Accum. Profits Total NCI Total equity
At 1 January 2025 12,668 321,856 88,774 93,085 516,383 2,154 518,537
Profit for the period - - - 30,467 30,467 - 30,467
Change in fair value of financial assets through OCI - - 1 - 1 - 1
Total comprehensive income - - 1 30,467 30,468 - 30,468
Recognition of share-based payments 16 - - 246 - 246 - 246
Recognition of distributable reserve 16 - - 13 (13) - - -
Other changes in equity - - - (4) (4) - (4)
At 31 March 2025 12,668 321,856 89,034 123,535 547,093 2,154 549,247
(Euro 000's) Note Share capital Share premium ((1)) Other reserves Accum. Profits Total NCI Total equity
At 1 January 2024 13,596 319,411 70,463 98,026 501,496 (9,104) 492,392
Profit for the period - - - 2,026 2,026 (399) 1,623
Change in fair value of financial assets through OCI - - (4) - (4) - (4)
Total comprehensive income - - (4) 2,026 2,022 (399) 1,623
Issuance of share capital 15 2 71 - - 73 - 73
Recognition of share-based payments 16 - - 151 - 151 - 151
Recognition of depletion factor 16 - - 7,500 (7,500) - - -
Recognition of non-distributable reserve 16 - - 142 (142) - - -
Recognition of-distributable reserve 16 - - 9,297 (9,297) - - -
Other changes in equity - - - - - - -
At 31 March 2024 13,598 319,482 87,549 83,113 503,742 (9,503) 494,239
(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 - - - 31,738 31,738 822 32,560
Change in fair value of financial assets through OCI - - (7) - (7) - (7)
Total comprehensive income - - (7) 31,738 31,731 822 32,553
Issuance of share capital 15 76 2,445 - - 2,521 - 2,521
Recognition of depletion factor 16 - - 8,949 (8,949) - - -
Recognition of non-distributable reserve 16 - - 1,843 - 1,843 - 1,843
Recognition of distributable reserve 16 - - 142 (142) - - -
Recognition of share-based payments 16 - - 7,385 (7,385) - - -
Other changes in equity (1,004) - (1) 542 (463) - (463)
Revaluation of non-controlling interest - - - (10,439) (10,439) 10,436 (3)
Dividends paid 11 - - - (10,306) (10,306) - (10,306)
At 31 December 2024 12,668 321,856 88,774 93,085 516,383 2,154 518,537
( )
((1)) The share premium reserve is not available for distribution
The notes on subsequent pages are an integral part of these Unaudited Interim
Condensed Consolidated Financial Statements.
Unaudited Interim Condensed Consolidated Statement of Cash Flows
(All amounts in Euro thousands unless otherwise stated)
For the period ended 31 March 2025 and 2024
(Euro 000's) Note Three-month period ended 31 Mar 2025 Three-month period ended 31 Mar 2024
Cash flows from operating activities
Profit before tax 37,458 2,126
Adjustments for:
Depreciation of property, plant and equipment 8 11,507 9,026
Amortisation of intangibles 9 1,387 579
Recognition of share-based payments 16 246 151
Interest income 5 (611) (535)
Interest expense 5 455 511
Unwinding of discounting on mine rehabilitation provision 18 237 107
Net foreign exchange differences 2,081 (1,571)
Unrealised foreign exchange loss on financing activities 44 1,035
Cash inflows from operating activities before working capital changes 52,804 11,429
Changes in working capital:
Inventories 10 5,191 (2,244)
Trade and other receivables 12 (29,324) (2,679)
Trade and other payables 17 (628) (6,213)
Provisions 18 (237) (271)
Cash flows from operations 27,806 22
Tax paid (1,265) (1,242)
Interest on leases liabilities 5 (9) (7)
Interest paid 5 (493) (510)
Net cash from operating activities 26,039 (1,737)
Cash flows from investing activities
Purchase of property, plant and equipment 8 (16,572) (17,853)
Purchase of intangible assets 9 (2,329) (272)
Payments for investments (4,109) -
Interest received 5 611 248
Net cash used in investing activities (22,399) (17,877)
Cash flows from financing activities
Lease payments 19 (128) (210)
Proceeds from borrowings 18 16,604 5,226
Repayment of borrowings 18 (2,881) (21,825)
Net cash from financing activities 13,595 (16,809)
Net increase/(decrease) in cash and cash equivalents 17,235 (36,423)
Net foreign exchange difference (452) 1,571
Cash and cash equivalents:
At beginning of the period 52,878 121,007
At end of the period 69,661 86,155
The notes on the subsequent pages are an integral part of these Unaudited
Interim Condensed Consolidated Financial Statements.
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
(All amounts in Euro thousands unless otherwise stated)
For the period ended 31 March 2025 and 2024
1. Incorporation and summary of business
Atalaya Mining Plc (the "Company") was incorporated in Cyprus on 17 September
2004 as a private company with limited liability under the Companies Law, Cap.
113 and was converted to a public limited liability company on 26 January
2005. Following the cross-border conversion on 10 January 2025, its registered
office is at 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 trading on the main market of the London
Stock Exchange. In May 2025, it also became a constituent of the FTSE 250
index.
Additional information about Atalaya Mining Copper, S.A. is available at
www.atalayamining.com (http://www.atalayamining.com) .
Change of name and share consolidation
Following the Company's Extraordinary General Meeting ("EGM") on 13 October
2015, the change of name from EMED Mining Public Limited to Atalaya Mining Plc
became effective on 21 October 2015. On the same day, the consolidation of
ordinary shares came into effect, whereby all shareholders received one new
ordinary share of nominal value Stg £0.075 for every 30 existing ordinary
shares of nominal value Stg £0.0025.
After 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.
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.
Proyecto Touro
The Group has an initial 10% stake in Cobre San Rafael, S.L., the owner of
Proyecto Touro, as part of an earn-in agreement which will enable the Group to
acquire up to 80% of the copper project. Proyecto Touro is located in Galicia,
north-west Spain. Proyecto Touro is currently in the permitting process.
In November 2019, Atalaya exercised its option to acquire 12.5% of
Explotaciones Gallegas del Cobre, S.L. which holds the exploration property
around Touro, with known additional reserves, which will provide high
potential to the Proyecto Touro.
Proyecto Masa Valverde
On 21 October 2020, the Company announced that it 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 agreed to 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 ("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
relinquished 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 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.
2. Basis of preparation and accounting policies
2.1 Basis of preparation
(a) Overview
These condensed interim financial statements are unaudited.
The unaudited interim condensed consolidated financial statements for the
period ended 31 March 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 interim condensed consolidated financial statements have also
been prepared in accordance with the IFRS as adopted by the European Union
(EU), using the historical cost convention and have been prepared on a
historical cost basis except for the revaluation of certain financial
instruments that are measured at fair value at the end of each reporting
period, as explained below.
These unaudited interim condensed consolidated financial statements include
the financial statements of the Company and its subsidiary undertakings. They
have been prepared using accounting bases and policies consistent with those
used in the preparation of the consolidated financial statements of the
Company and the Group for the year ended 31 December 2024. These unaudited
interim condensed consolidated financial statements do not include all the
disclosures required for annual financial statements, and accordingly, should
be read in conjunction with the consolidated financial statements and other
information set out in the Group's annual report for the year ended 31
December 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 ("PIE") is set out in Article 2.13 of
Directive 2006/43/EC, amended by Article 1 of Directive 2014/56/EU, that
states that it is considered to be PIEs: (a) entities governed by the law of a
Member State whose transferable securities are admitted to trading on a
regulated market of any Member State; (b) credit institutions as defined in
point 1 of Article 3(1) of Directive 2013/36/EU; (c) insurance undertakings
within the meaning of Article 2(1) of Directive 91/674/EEC; and (d) entities
designated by Member States as public-interest entities. As the company is not
included in any of the categories above, it is not considered to be a PIE.
(b) Going concern
These unaudited condensed interim consolidated financial statements have been
prepared based on accounting principles applicable to a going concern which
assumes that the Group will realise its assets and discharge its liabilities
in the normal course of business. Management has carried out an assessment of
the going concern assumption and has concluded that the Group will generate
sufficient cash and cash equivalents to continue operating for the next twelve
months.
2.2 New standards, interpretations and amendments adopted by the Group
The accounting policies adopted in the preparation of the interim condensed
consolidated financial statements are consistent with those followed in the
preparation of the Group's annual consolidated financial statements for the
year ended 31 December 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 interim condensed consolidated 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)
31 Mar 2025
Other financial assets
Financial assets at FV through OCI 26 - 1,101 1,127
Trade and other receivables - - - -
Receivables (subject to provisional pricing) - 33,418 - 33,418
Total 26 33,418 1,101 34,545
31 Dec 2024
Other current financial assets
Financial assets at FV through OCI 23 - 1,101 1,124
Trade and other receivables - - - -
Receivables (subject to provisional pricing) - 10,769 - 10,769
Total 23 10,769 1,101 11,893
2.4 Critical accounting estimates and judgements
The preparation of the unaudited interim condensed consolidated financial
statements require management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities, and the accompanying disclosures, and the disclosure of
contingent liabilities at the date of the consolidated financial statements.
Estimates and assumptions are continually evaluated and are based on
management's experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances. Uncertainty
about these assumptions and estimates could result in outcomes that require a
material adjustment to the carrying amount of assets or liabilities affected
in future periods.
Provisions are recognised when the Group has a present legal or constructive
obligation as a result of past events, it is probable that an outflow of
resources will be required to settle the obligation, and a reliable estimate
of the amount can be made. If the effect of the time value of money is
material, provisions are discounted using a current pre-tax rate that
reflects, where appropriate, the risks specific to the liability. Where
discounting is used, the increase in the provision due to the passage of time
is recognised as a finance cost.
A full analysis of critical accounting estimates and judgements is set out in
Note 3.3 of the 2024 audited financial statements.
3. Business and geographical segments
Business segments
The Group has only one distinct business segment, being that of mining
operations, which include mineral exploration and development.
Copper concentrates produced by the Group are sold to three off-takers as per
the relevant offtake agreements. In addition, the Group enters into spot
agreements for the concentrates not committed to off-takers.
Geographical segments
The Group's mining activities are located in Spain. The commercialisation of
the copper concentrates produced in Spain is carried out through Cyprus. Sales
transactions to related parties are on arm's length basis in a similar manner
to transaction with third parties. Accounting policies used by the Group in
different locations are the same as those contained in Note 2.
The table below presents an analysis of revenue from external customers based
on their geographical location, determined by the country of establishment of
each customer.
Revenue - from external customers Three-month period ended 31 Mar 2025 Three-month period ended 31 Mar 2024
€'000 €'000
Switzerland 106,625 69,938
Singapore 23,967 -
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 31 Mar 2025 Three-month period ended 31 Mar 2024
€'000 €'000
Cyprus 9,385 5,227
Spain 121,283 64,711
130,668 69,938
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 31 Mar 2025 31 Dec 2024
€'000 €'000
Spain 484,827 479,241
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 31 Mar 2025 Three-month period ended 31 Mar 2024
Segment €'000 Segment €'000
Customer 1 Copper 23,967 Copper 19,701
Customer 2 Copper 6,473 Copper 26,101
Customer 3 Copper 83,020 Copper 24,136
Customer 4 Copper 17,132 Copper -
4. Revenue
(Euro 000's) Three-month period ended 31 Mar 2025 Three-month period ended 31 Mar 2024
Revenue from contracts with customers ((1)) 129,254 73,718
Fair value gains/(losses) relating to provisional pricing within sales ((2)) 1,338 (3,780)
Other income 76 -
Total revenue 130,668 69,938
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 Q1 2025 revenue is income of €3.2 million
(€3.1 million in Q1 2024) related to the freight services provided by the
Group to its customers arising from the sales of copper concentrate under CIF
incoterm.
((2) ) Provisional pricing impact represents the change in fair value of
the embedded derivative arising on sales of concentrate.
5. Net Finance Costs
(Euro 000's) Three-month period ended 31 Mar 2025 Three-month period ended 31 Mar 2024
Interest expense
Other interest (446) (511)
Interest on lease liabilities (9) (7)
Unwinding of discount on mine rehabilitation provision (Note 18) (237) (107)
Interest income
Financial interest ((1)) 611 535
(81) (90)
((1) ) Interest income mainly related to interest received on
bank balances.
6. Tax
The Group calculates the period income tax expense using the tax rate that
would be applicable to the expected total annual earnings. The major
components of income tax expense in the unaudited interim condensed
consolidated statement of profit or loss are:
(Euro 000's) Three-month period ended 31 Mar 2025 Three-month period ended 31 Mar 2024
Income taxes
Current income tax expense (6,991) (499)
Income tax expense recognised in statement of profit and loss (6,991) (499)
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:
(Euro 000's) Three-month period ended 31 Mar 2025 Three-month period ended 31 Mar 2024
Profit attributable to equity holders of the parent 30,467 2,026
Weighted number of ordinary shares for the purposes of basic earnings per 140,759 139,889
share (000's)
Basic earnings per share (EUR cents/share) 21.6 1.5
Weighted number of ordinary shares for the purposes of fully diluted earnings 146,033 144,728
per share (000's)
Fully diluted earnings per share (EUR cents/share) 20.9 1.4
At 31 March 2025 there are nil warrants (Note 15) and 5,423,666 options (Note
15) (31 March 2024: nil warrants and 4,828,500 options) 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 - - 1,670 16,188 - - 17,858
Reclassifications - - 242 (242) - - -
Increase in rehab. Provision 475 - - - - - 475
Write-off - (148) (439) - - - (587)
At 31 March 2024 83,992 6,928 320,607 86,547 64,072 951 563,097
Additions 233 - (1,338) 36,613 9,902 - 45,410
Increase in rehab. Provision 2,799 - - - - - 2,799
Reclassifications - - 20,808 (21,727) - 29 (890)
Other transfer (572) - - (2,586) ((6)) - - (3,158)
Advances - - - 1,601((4)) - - 1,601
Write-off - - 439 - - - 439
At 31 December 2024 86,452 6,928 340,516 100,448 73,974 980 609,298
Additions 360 - - 8,993 7,247 - 16,600
Reclassifications - - 404 (853) - - (449)
At 31 March 2025 86,812 6,928 340,920 108,588 81,221 980 625,449
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 1,987 117 5,798 - 1,170 11 9,083
Write-off - (57) - - - - (57)
At 31 March 2024 26,689 2,591 119,346 - 20,233 775 169,634
Charge for the period((5)) 4,205 380 21,530 - 4,485 32 30,632
At 31 December 2024 30,894 2,971 140,876 - 24,718 807 200,266
Charge for the period 1,547 132 7,970 - 1,847 11 11,507
At 31 March 2025 32,441 3,103 148,846 - 26,565 818 211,773
Net book value
At 31 March 2025 54,371 3,825 192,074 108,588 54,656 162 413,676
At 31 December 2024 55,558 3,957 199,640 100,448 49,256 173 409,032
( )
(1) Assets under construction at 31 March 2025 were €108.6 million (31 Dec
2024: €100.4 million) which include sustaining capital expenditures,
tailings dams project, ELIX 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.
(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).
The above fixed assets are mainly located in Spain.
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 272 - - 272
At 31 March 2024 81,471 8,758 - 90,229
Additions - - 17,771 ((2)) 17,771
Disposals (272) - - (272)
Reclassification (3,128) (6,948) 10,076 -
At 31 December 2024 78,071 1,810 27,847 107,728
Additions - - 2,301((4)) 2,301
Reclassification - 28 - 28
At 31 March 2025 78,071 1,838 30,148 110,057
Amortisation
At 1 January 2024 32,080 8,480 - 40,560
Charge for the period 572 7 - 579
At 31 March 2024 32,652 8,487 - 41,139
Charge for the period 3,306 22 - 3,328
Reversal of impairment losses - (6,948)((3)) - (6,948)
At 31 December 2024 35,958 1,561 - 37,519
Charge for the period 1,380 7 - 1,387
At 31 March 2025 37,338 1,568 - 38,906
Net book value
At 31 March 2025 40,733 270 30,148 71,151
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 include €16.7 million at fair value related to the interest
to acquire the 80% of the shares of Cobre San Rafael, SL, as per the
Shareholders' Agreement, including €16.5 million (note 26) and €0.2
million related to capitalisation expenses according with the policy of the
Group once the Touro Project was granted as Strategic Industrial Project
(PIE).
((3)) Reversal of Impairment on Intangible Assets
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 announced a recent press released by the regional government of
Galicia ("Xunta de Galicia") in relation to the permitting process, where the
General Directorate to the Mines, Energy and Industry Department announced a
negative Environmental Impact Statement for Proyecto Touro.
As a result of the announcement made by the Xunta de Galicia, the Company
re-assessed the uncertainty about the feasibility of obtaining the necessary
permits for Touro, impacting the project's development prospects.
As a result of the re-assessment, the Company booked as at 31 December 2019 an
impairment of €6.9 million related to the capitalised cost incurred by the
Company to the date according to its accounting policy. However, the Company
retained the value of the mining rights at €5.0 million, as these rights
remained in force.
Since 2019, the Company 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) 31 Mar 2025 31 Dec 2024
Finished products 16,447 19,732
Materials and supplies 24,679 25,540
Work in progress 3,266 3,890
Total inventories 44,392 49,162
As of 31 March 2025, copper concentrate produced and not sold amounted to
19,031 tonnes (31 Dec 2024: 21,815 tonnes). Accordingly, the inventory for
copper concentrate was €16.5 million (31 Dec 2024: €19.7 million).
During Q1 2025 the Group recorded cost of sales amounting to €72.3 million
(Q1 2024: €56.8 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 31 Mar 2025 Three-month period ended 31 Mar 2024
Dividends declared and paid - -
Interim dividend declared and paid - -
A final dividend of US$0.03 in respect of 2024 was proposed on 17 March 2025
for approval by shareholders at the 2025 AGM. This will result in a total
dividend for 2024 of US$0.07 per share.
12. Trade and other receivables
(Euro 000's) 31 Mar 2025 31 Dec 2024
Non-current
Deposits 611 611
Loans 141 141
Prepayments for service contract((1)) 29,898 29,662
Other non-current receivables 2,838 2,838
33,488 33,252
Current
Trade receivables at fair value - subject to provisional pricing 29,077 9,727
Trade receivables from shareholders at fair value - subject to provisional 4,341 1,042
pricing (Note 22.3)
Deposits 35 35
VAT receivables 26,542 20,898
Tax advances 214 -
Prepayments 3,083 4,507
Other current assets 1,236 654
64,528 36,863
Allowance for expected credit losses - -
Total trade and other receivables 98,016 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 form the start of
commercial production. This balance includes capitalised interest, and
repayment will be made through the use of the E-LIX technology.
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).
The prepayments for the service contract relate to an agreement entered into
between the Group and Lain Technologies Ltd for the construction of an
industrial plant using the E-LIX technology, which is currently under
construction at Proyecto Riotinto. This technology system is a newly developed
electrochemical extraction process that utilises singular catalysts and
physiochemical conditions to dissolve the valuable metals contained within
sulphide concentrates. Lain Technologies Ltd. developed and fully owns the
E-LIX System. According to the agreement, once the Industrial Plant at
Proyecto Riotinto is operational, the Group will have (i) the use of E-LIX
Technology to extract cathodes and (ii) exclusivity in the use of the E-LIX
Technology on concentrates extracted from the Iberian Pyrite Belt for eight
years.
13. Loans
(Euro 000's) 31 Mar 2025 31 Dec 2024
Non-current loans
Loans 2,654 2,627
2,654 2,627
Current loans
Loans 9,434 5,352
9,434 5,352
During 2024, the Company reassessed the classification of a loan related to
the funding of the E-LIX pilot plant. This loan, originally classified as
prepayments for service contract under trade receivables was reclassified as a
non-current loan, as it is considered more probable that the recoverability
will be in cash rather than through the use of the E-LIX technology.
The original agreement with Lain Technologies Ltd. contemplated both
possibilities-repayment in cash or recovery through the use of the E-LIX
technology. Initially, the Company expected to recover the amount through the
use of the technology; however, following a reassessment, it was concluded
that repayment in cash is the more probable outcome.
Non-current loans are referred to the loan with Lain Technologies regarding
the Pilot Plant. Includes principal for €2.3 million plus €0.3 million of
interest accumulated. This balance bears interest of EURIBOR 12M + 2%. This
amount has been reclassified from prepayments regarding the previous year.
On 30 September 2024 the Company signed a convertible loan, granting a credit
facility of up to a maximum amount of €10 million. This facility was granted
for a fixed term up to 31 December 2025. This balance bears interest of
EURIBOR 3M + 2%. This balance includes €5.3 million referred to the
convertible loan with Lain Technologies Ltd plus €0.1 million of interest
accumulated.
14. Cash and cash equivalents
(Euro 000's) 31 Mar 2025 31 Dec 2024
Unrestricted cash and cash equivalents at Group level 44,020 43,184
Unrestricted cash and cash equivalents at Operation level 25,641 9,694
Consolidated cash and cash equivalents 69,661 52,878
The table above provides a comprehensive overview of the cash and cash
equivalents held by Atalaya as of 31 March 2025.
Cash and cash equivalents denominated in the following currencies:
(Euro 000's) 31 Mar 2025 31 Dec 2024
Euro - functional and presentation currency 39,813 37,299
Great Britain Pound 307 70
United States Dollar 29,541 15,509
Consolidated cash and cash equivalents 69,661 52,878
15. Share capital and share premium
Shares Share Capital Share premium Total
000's Stg£'000 Stg£'000 Stg£'000
Ordinary shares of Stg £0.075 each* 200,000 18,000 - 18,000
Issued and fully paid Shares Share Capital Share premium Total
Issue Date Price (£) Details 000's €'000 €'000 €'000
31 December 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-June-24 4.160 Exercised share options ((d)) 120 11 570 581
27-June-24 3.575 Exercised share options ((d)) 36 3 149 152
27-June-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
31-Mar-25 140,759 12,668 321,856 334,524
*The Company's share capital at 31 March 2025 is 140,759,043 ordinary shares
(140,759,043 in 2024) of €0.09 each.
** Nominal value converted from 7.5p to €0.09
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 Q1 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 31 March 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.
Details of share options outstanding as at 31 March 2025:
Grant date Expiry date Exercise price £ Share options
30 Jun 2020 29 Jun 2030 1.475 516,000
24 Jun 2021 23 Jun 2031 3.090 996,000
22 Jun 2022 30 Jun 2027 3.575 1,188,333
22 May 2023 21 May 2028 3.270 1,268,333
11 Jun 2024 10 Jun 2029 4.135 1,305,000
22 Dec 2024 21 Dec 2029 3.335 150,000
Total 5,423,666
Weighted average Share options
exercise price £
At 1 January 2025 3.343 5,423,666
Granted during the period - -
Options executed during the period - -
31 Mar 2025 3.343 5,423,666
Warrants
As at 31 March 2025 and 2024 there were no warrants.
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 70,463
14,291
Recognition of depletion factor - - 7,500 - - - 7,500
Recognition of non-distributable reserve - - - - 142 - 142
Recognition of distributable reserve - - - - - 9,297 9,297
Recognition of share-based payments 151 - - - - - 151
Change in fair value of financial assets at fair value through OCI - - - (4) - - (4)
At 31 March 2024 11,177 208 45,278 (1,160) 8,458 23,588 87,549
Recognition of depletion factor - - 1,449 - - - 1,449
Recognition of distributable reserve - - - - - (1,449) (1,449)
Recognition of share-based payments 1,228 - - - - - 1,228
Change in fair value of financial assets at fair value through OCI - - - (3) - - (3)
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 246 - - - - - 246
Recognition of distributable reserve - - - - - 13 13
Change in fair value of financial assets at fair value through OCI - - - 1 - - 1
At 31 March 2025 13,115 208 46,727 (1,162) 8,458 21,688 89,034
((1) ) Depletion factor reserve
At 31 March 2025, the Group has recognised €nil (31 March 2024: €7.5
million) as a depletion factor reserve as per the Spanish Corporate Tax Act.
((2) ) Fair value reserve of financial assets at FVOCI
The Group has elected to recognise changes in the fair value of certain
investments in equity securities in OCI, as explained in (1) above. These
changes are accumulated within the FVOCI reserve within equity. The Group
transfers amounts from this reserve to retained earnings when the relevant
equity securities are derecognised.
((3) ) Non-distributable reserve
To comply with Spanish Law, the Group needed to record a reserve of profits
generated equal to a 10% of profit/(loss) for the year until 20% of share
capital is reached.
((4) )Distributable reserve
The Group reclassified at least 10% of the profit of 2024 to distributable
reserves.
17. Trade and other payables
(Euro 000's) 31 Mar 2025 31 Dec 2024
Non-current
Other non-current payables 12,492 12,492
Government grant 1,496 1,491
13,988 13,983
Current
Trade payables 78,251 78,965
Trade payables to shareholders (Note 23.3) 393 109
Accruals 2,906 2,505
Other 7,907 8,511
89,457 90,090
As of 31 March 2025, other non-current payables include €9.7 million
reflecting the liabilities related to the potential acquisition of 80% of the
shares of Cobre San Rafael, SL, as per the Shareholders' Agreement. 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 related to the potential
increase in the stake of Cobre San Rafael, S.L., under the Shareholders'
Agreement. 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 are mainly for the acquisition of materials, supplies and other
services. These payables do not accrue interest, and no guarantees have been
granted. The fair value of trade and other payables approximate their book
values.
Trade payables are non-interest-bearing and are normally settled on 60-day
terms.
18. Provisions
(Euro 000's) Other provisions Rehabilitation costs
Legal costs Total costs
At 1 January 2024 750 227 26,691 27,668
Use of provision - - (271) (271)
Increase of provision - - 475 475
Finance cost - - 107 107
At 31 March 2024 750 227 27,002 27,979
Additions - 230 - 230
Use of provision - (62) (673) (735)
Transfer to other non-current payables (750) - - (750)
Increase of provision - - 2,799 2,799
Finance cost - - 721 721
At 31 December 2024 - 395 29,849 30,244
Use of provision - - (6) (6)
Finance cost - - 237 237
At 31 March 2025 - 395 30,080 30,475
(Euro 000's) 31 Mar 2025 31 Dec 2024
Non-current 29,564 29,328
Current 910 916
Total 30,475 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 31 March 2025 was 3.23% (2024: 3.23%), which is the 15-year
Spain Government Bond rate for 2024. An inflation rate of 2%-2.80% (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 has some impact on our financial statements and
accounting estimates and reflects a revised understanding of the economic
potential and operational requirements of our mining assets.
Legal provision
As at 31 March 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 that no provision is
required at this time (€nil million), compared to a provision of €0.4
million recognised as at 31 December 2024. This has been reflected in these
unaudited condensed interim consolidated 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) 31 Mar 2025 31 Dec 2024
Non-current borrowings
Credit facilities 9,601 10,866
9,601 10,866
Current borrowings
Credit facilities 21,913 6,921
21,913 6,921
The Group had credit approval for unsecured facilities totalling €100.9
million (€97.4 million at 31 December 2024). During 2025, Atalaya drew down
some of its existing credit facilities to finance the solar plant, payable
amount of €8.7 million at 31 March 2025 (€13.9 million at 31 December
2024) and for the construction of a new part of the processing plant payable
amount of €2.6 million at 31 March 2025 (€2.8 million at 31 December
2024).
Margins on borrowing with variable interest rates, usually 12 months EURIBOR,
range from 0.95% to 2.25% with an average margin of 1.34%.
At 31 March 2025, the Group had used €32.5 million of its facilities and had
undrawn facilities of €68.4 million.
Net cash reconciliation
Reconciliation of Liabilities Arising from Financing Activities
In accordance with IAS 7 paragraph 44D, the reconciliation below provides
information on changes in liabilities arising from financing activities,
including both cash and non-cash changes.
Net cash (€'000) 31 Mar 2025 31 Dec 2024
Cash and cash equivalents 69,661 52,878
Borrowings - repayable within one year (21,913) (6,921)
Borrowings - repayable after one year (9,601) (10,866)
Lease - as per IAS 7 (3,681) (3,801)
Net cash 34,466 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 (36,423) - - (36,423)
Proceeds from borrowings - (5,226) - (5,226)
Repayment of borrowings - 21,825 210 22,035
Foreign exchanges adjustments 1,571 - - 1,571
Other changes -
Interest paid - 511 7 518
Interest expense - (511) (7) (518)
Other changes - - -
Net cash as at 31 March 2024 86,155 (50,088) (4,168) 31,899
Financing cash flows (33,508) - - (33,508)
Proceeds from borrowings - 2,226 - 2,226
Repayment of borrowings - 30,075 309 30,384
Foreign exchanges adjustments 231 - - 231
Other changes
Interest paid - 620 23 643
Interest expense - (620) (23) (643)
Other changes - - 58 58
Net cash as at 31 December 2024 52,878 (17,787) (3,801) 31,290
Financing cash flows 17,235 (4) - 17,231
Proceeds from borrowings - (16,604) - (16,604)
Repayment of borrowings - 2,881 128 3,009
Foreign exchanges adjustments (452) - (452)
Other changes
Interest paid - 446 - 446
Interest expense - (446) (9) (455)
Net cash as at 31 Mar 2025 69,675 (4,064) (3,682) 34,465
(*) 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) 31 Mar 2025 31 Dec 2024
Non-current
Lease liabilities 3,202 3,320
3,202 3,320
Current
Lease liabilities 480 481
480 481
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) 31 Mar 2025 31 Dec 2024
Minimum lease payments due:
- Within one year 480 531
- Two to five years 1,849 2,125
- Over five years 1,353 2,285
Present value of minimum lease payments due 3,682 4,941
(Euro 000's) Lease liabilities
At 1 January 2025 3,801
Interest expense 9
Lease payments (128)
At 31 March 2025 3,682
At 31 March 2025
Non-current liabilities 3,202
Current liabilities 480
3,682
21. Acquisition, incorporation and disposal of subsidiaries
There were no acquisitions or incorporation of subsidiaries during the
three-month period ended 31 March 2025 and 2024.
22. Winding-up of subsidiaries
There were no operations wound up during the three-month period ended 31 March
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 31 Mar 2025 Three-month period ended 31 Mar 2024
Directors' remuneration and fees 271 297
Share option-based benefits and other benefits to directors 41 48
Key management personnel fees 163 149
Share option-based and other benefits to key management personnel 41 48
516 542
23.2 Share-based benefits
No share options were granted to the directors or key management personnel
during the three-month period ended 31 March 2025 (Q1 2024: nil).
23.3 Transactions with related parties/shareholders
i) Transaction with shareholders
(Euro 000's) Three-month period ended 31 Mar 2025 Three-month period ended 31 Mar 2024
Trafigura Pte Ltd- Revenue from contracts ((a)) 23,262 19,946
(Losses)/gains relating provisional pricing within sales 705 (245)
23,967 19,701
Impala Terminals Huelva S.L.U. - Port Handling and Warehousing services ((b)) (1,128) (417)
Trafigura - Total revenue from contracts 22,839 19,284
(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 Q1 2025, the Company completed 2 sales transactions under the terms of
the 2015 Offtake Agreements valued at €22.9 million (Q1 2024: 3 sales valued
at €19.7 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 Q1 2025, the Company completed nil spot sales to related parties (Q1 2024:
nil spot sales valued at €nil) There was no adjustment in Q1 2025, whereas
in Q1 2024 a negative adjustment of €1.0 million was recognised due to QP
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 than the
2015 agreement and the extension in 2018. This extension has a term of
approximately five years and covers the concentrate volumes produced for
export from Proyecto Riotinto that are not already committed to the Trafigura
Group under its 2015 Offtake Agreement.
As at 31 March 2025, Impala Terminals was part of the Trafigura Group, under
joint control.
ii) Period-end balances with related parties
(Euro 000's) 31 Mar 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) 31 Mar 2025 31 Dec 2024
Receivable from shareholder (Note 12)
Trafigura - Debtor balance- subject to provisional pricing 4,341 1,042
Trafigura - Debtor balance- at amortised cost - -
4,341 1,042
Payable from joint venture of shareholder (Note 17)
Impala Terminals Huelva S.L.U. - Payable balance (393) (109)
(393) (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
€235k per year in Spain and the Group is required to maintain the Riotinto
site in compliance with all applicable regulatory requirements.
In 2012, ARM entered into a 50/50 joint venture with Rumbo to evaluate and
exploit the potential of the class B resources in the tailings dam and waste
areas at Proyecto Riotinto (mainly residual gold and silver in the old gossan
tailings). Under the joint venture agreement, ARM will be the operator of the
joint venture, will reimburse Rumbo for the costs associated with the
application for classification of the Class B resources and will fund the
initial expenditure of a feasibility study up to a maximum of €2.0 million.
Costs are then borne by the joint venture partners in accordance with their
respective ownership interests.
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
Plc) completed its re-domiciliation to Spain. Trading under the new name
became effective at 8:00 AM, and the nominal value of shares changed from 7.5p
to €0.09.
· On 15 January 2025, the Board announced the appointment of María del
Coriseo ("Coriseo") González-Izquierdo Revilla as an independent
non-executive director, effective 14 January 2025.
· On 31 January 2025, Atalaya received notification that Neil Gregson,
Non-Executive Chair, purchased 2,800 ordinary shares of €0.09 nominal value
at an average price of 347.28 pence per share.
27. Events after the Reporting Period
· 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.
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