Q1 2024 Financial Results
21 May 2024
Atalaya Mining Plc.
("Atalaya" and/or the "Company")
Q1 2024 Financial Results
Good cost control expected to support performance as copper market strengthens
Atalaya Mining Plc (LSE: ATYM) is pleased to announce its unaudited first quarter financial results for the period ended 31 March 2024 ("Q1 2024" or "the Period") together with its unaudited condensed consolidated financial statements.
Highlights
· Copper production of 10.7 kt Cu at cash costs of $2.99/lb and AISC of $3.17/lb
‒ Good cost control despite lower production in Q1 2024
· EBITDA of €10.3 million at a realised copper price of $3.89/lb
‒ Lower operating costs partly offset lower copper revenues
· Made further investments in key projects including waste stripping at San Dionisio
· Strong balance sheet maintained with €36.1 million in net cash
‒ Negative working capital movements impacted operating cash flows
· Completed move to Main Market of the London Stock Exchange on 29 April 2024
‒ Re-domiciliation work continues post implementation of new Cyprus law
Q1 2024 Financial Results Summary
|
Period ended 31 March |
Unit |
Q1 2024 |
Q1 2023 |
|
Revenues from operations |
€k |
69,938 |
91,171 |
|
Operating costs |
€k |
(59,687) |
(66,766) |
|
EBITDA |
€k |
10,251 |
24,405 |
|
Profit for the period |
€k |
1,627 |
11,104 |
|
Basic earnings per share |
€ cents/share |
1.5 |
8.1 |
|
Cash flows from operating activities |
€k |
(1,737) |
12,362 |
|
Cash flows used in investing activities |
€k |
(17,877) |
(8,811) |
|
Cash flows from financing activities |
€k |
(16,809) |
(9,431) |
|
Net Cash position(1) |
€k |
36,067 |
55,263 |
|
Working capital surplus |
€k |
59,608 |
85,336 |
|
Average realised copper price (excluding QPs closed in the Period) |
US$/lb |
3.89 |
4.00 |
|
Cu concentrate produced |
tonnes |
52,684 |
57,670 |
|
Cu production |
tonnes |
10,666 |
12,139 |
|
Cash costs |
US$/lb payable |
2.99 |
2.88 |
|
All-In Sustaining Cost ("AISC") |
US$/lb payable |
3.17 |
3.12 |
(1) Includes restricted cash and bank borrowings at 31 March 2024 and 31 March 2023.
Alberto Lavandeira, CEO, commented:
"Naturally, our revenues reflected our copper production for the quarter and while lower than recent periods, we expect copper grades to improve in the coming quarters. Positively, our cost control was good and helped to support EBITDA in Q1 2024, and our net cash position remains strong. Waste stripping activities are also advancing at San Dionisio, which is expected to provide Riotinto with higher grade material in the coming years.
The positive developments in the copper price have been pleasing to observe in recent weeks. Global demand remains supported by solid economic activity and strong investment in renewables, new technologies and domestic supply chains. On the supply side, challenges remain in the largest copper producing regions.
Few new large sources of supply are expected in the coming years as a result of permitting and execution challenges, discipline by key producers and a preference for buying production capacity rather than building it, as highlighted by recent corporate activity.
Atalaya is well-positioned thanks to its pipeline of growth projects that are located in regions with high quality infrastructure and long mining histories. Our key projects including Touro and those around Riotinto are expected to have low capital intensities and could come onstream much quicker than the mega projects being pursued by peers."
Investor Presentation Reminder
Alberto Lavandeira (CEO) and César Sánchez (CFO) will be holding a live presentation relating to the Q1 2024 Financial Results via the Investor Meet Company platform at 11:00am BST today.
To register, please visit the following link and click "Add to Meet" Atalaya via:
https://www.investormeetcompany.com/atalaya-mining-plc/register-investor
Management will also answer questions that have been submitted via the Investor Meet Company dashboard.
Q1 2024 Operating Results Summary
|
Units expressed in accordance with the international system of units (SI) |
Unit |
Q1 2024 |
Q1 2023 |
|
Ore mined |
t |
3,701,828 |
3,421,556 |
|
Waste mined |
t |
5,539,677 |
6,516,903 |
|
Ore processed |
t |
3,740,093 |
3,723,853 |
|
Copper ore grade |
% |
0.34 |
0.38 |
|
Copper concentrate grade |
% |
20.25 |
21.05 |
|
Copper recovery rate |
% |
84.74 |
86.88 |
|
Copper concentrate |
t |
52,684 |
57,670 |
|
Copper contained in concentrate |
t |
10,666 |
12,139 |
|
Payable copper contained in concentrate |
t |
10,139 |
11,563 |
|
Cash cost |
US$/lb payable |
2.99 |
2.88 |
|
All-in sustaining cost |
US$/lb payable |
3.17 |
3.12 |
Mining
Ore mined was 3.7 million tonnes in Q1 2024 (Q1 2023: 3.4 million tonnes).
Waste mined was 5.5 million tonnes in Q1 2024 (Q1 2023: 6.5 million tonnes). Separately, waste stripping activities advanced at the San Dionisio area.
Processing
The plant processed ore of 3.7 million tonnes during Q1 2024 (Q1 2023: 3.7 million tonnes). Throughput in Q1 2024 included the scheduling of two plant shutdowns, one for maintenance and the other for connecting the 50 MW solar plant to the substation.
Copper grade was 0.34% in Q1 2024 (Q1 2023: 0.38%). The lower copper grade in Q1 2024 was mainly the result of pit sequencing and also due to rainfall which prevented access to higher grade areas of the Cerro Colorado pit.
Copper recovery was 84.74% in Q1 2024 (Q1 2023: 86.88%) due to lower grades being processed.
Production
Copper production was 10,666 tonnes in Q1 2024 (Q1 2023: 12,139 tonnes). Lower production in Q1 2024 was mainly the result of lower grades and recoveries.
On-site copper concentrate inventories at the end of Q1 2024 were approximately 8,283 tonnes.
Copper contained in concentrates sold was 10,286 tonnes in Q1 2024 (Q1 2023: 12,501 tonnes).
Cash Costs and AISC Breakdown
|
$/lb Cu payable |
Q1 2024 |
Q1 2023 |
|
Mining |
0.99 |
0.83 |
|
Processing |
0.91 |
0.97 |
|
Other site operating costs |
0.67 |
0.52 |
|
Total site operating costs |
2.57 |
2.32 |
|
By-product credits |
(0.14) |
(0.09) |
|
Freight, treatment charges and other offsite costs |
0.56 |
0.65 |
|
Total offsite costs |
0.42 |
0.56 |
|
Cash costs |
2.99 |
2.88 |
|
|
|
|
|
Cash costs |
2.99 |
2.88 |
|
Corporate costs |
0.09 |
0.07 |
|
Sustaining capital (excluding one-off tailings expansion) |
0.02 |
0.01 |
|
Capitalised stripping costs |
- |
0.08 |
|
Other costs |
0.07 |
0.08 |
|
AISC |
3.17 |
3.12 |
Note: Some figures may not add up due to rounding.
Cash costs were $2.99/lb payable copper in Q1 2024 (Q1 2023: $2.88/lb), with the increase mainly due to lower copper production, partly offset by lower offsite costs.
AISC were $3.17/lb payable copper in Q1 2024 (Q1 2023: $3.12/lb). Lower capitalised stripping costs at Cerro Colorado helped to offset higher cash costs and corporate costs. AISC excludes one-off investments in the tailings dam (consistent with prior reporting) and waste stripping at the San Dionisio area.
Q1 2024 Financial Results Highlights
Income Statement
Revenues were €69.9 million in Q1 2024 (Q1 2023: €91.2 million). Lower revenues were the result of lower copper concentrate sales and lower realised copper prices.
Operating costs were €59.7 million in Q1 2024 (Q1 2023: €66.8 million). Lower operating costs were mainly the result of lower sales volume and lower electricity prices.
EBITDA was €10.3 million in Q1 2024 (Q1 2023: €24.4 million). Lower EBITDA resulted from lower revenues, partly offset by lower operating costs.
Profit after tax was €1.6 million in Q1 2024 (Q1 2023: €11.1 million) or 1.5 cents basic earnings per share (Q1 2023: 8.1 cents). Lower profits were impacted by the same factors as EBITDA and higher depreciation, partly offset by a foreign exchange gain and lower taxes.
Cash Flow Statement
Cash flows from operating activities before changes in working capital were positive €11.4 million in Q1 2024 (Q1 2023: positive €24.1 million) and net cash from operating activities was negative €1.7 million (Q1 2023: positive €12.4 million).
Cash flows used in investing activities were €17.9 million in Q1 2024 (Q1 2023: €8.8 million). Key investments in Q1 2024 included €0.4 million in sustaining capex (Q1 2023: €0.3 million), nil in capitalised stripping at Cerro Colorado (Q1 2023: €1.9 million), €8.2 million related to the San Dionisio area (Q1 2023: nil), €2.3 million to extend the tailings dam (Q1 2023: €2.3 million), €0.7 million for the 50 MW solar plant (Q1 2023: €1.6 million) and €6.3 million for the E-LIX Phase I Plant (Q1 2023: €3.3 million) including ramp-up costs.
Cash flows from financing activities were negative €16.8 million in Q1 2024 (Q1 2023: negative €9.4 million) due to repayments made under the Company's credit facilities.
Balance Sheet
The Company's balance sheet remains strong with consolidated cash and cash equivalents of €86.2 million as at 31 March 2024. Net of current and non-current borrowings of €50.1 million, net cash was €36.1 million as at 31 March 2024, compared with €54.3 million as at 31 December 2023 with the decrease in cash being the result of lower copper sales and higher investment in the Company's capital projects.
Inventories of concentrate valued at cost were €8.8 million at 31 March 2024 (31 December 2023: €8.4 million). The total working capital surplus was €59.6 million at 31 March 2024 (31 December 2023: €68.6 million).
Outlook for 2024
Copper production in Q1 2024 was impacted by lower copper grades and recoveries. Guidance for FY2024 of 51,000 - 53,000 tonnes is unchanged due to the expectation of higher copper grades in the coming quarters and will be reviewed on an ongoing basis.
Guidance for FY2024 cash costs and AISC are $2.80 - 3.00/lb and $3.00 - 3.20/lb copper payable, respectively. AISC excludes one-off investments in the tailings dam and ongoing waste stripping at the San Dionisio area.
Corporate Activities Update
Move to the Main Market
On 29 April 2024, the Company announced the admission of its ordinary shares to the premium listing segment of the Official List maintained by the FCA and to trading on London Stock Exchange's main market for listed securities, along with the cancellation of trading on AIM.
The move up marks a significant corporate milestone for Atalaya and reflects the Company's desire to expand its investor base and continue its growth trajectory.
Photo 1: London Stock Exchange Market Open Ceremony
Re-domiciliation
On 12 December 2023, the Company held an Extraordinary General Meeting in relation to its intention to re-domicile the Company by transferring its registered office from the Republic of Cyprus to the Kingdom of Spain. All resolutions were approved by the Company's shareholders.
On 15 March 2024, a new law related to cross-border reorganisations entered into force in Cyprus, thereby amending the Cyprus Companies Law by setting out new procedural requirements in connection with cross-border conversions of Cypriot companies into another EU jurisdiction. The Company has concluded that it will need to follow the new procedures in order to complete the re-domiciliation.
As part of the new law, the Company is required to publish a report that analyses the implications of the cross-border conversion for its shareholders and employees ("Cross-Border Conversion Report"). The Cross-Border Conversion Report is now available on the Company's website at www.atalayamining.com/investors/other-documents/.
The Company will seek the shareholder approvals required to implement the new procedures at its 2024 Annual General Meeting on 27 June 2024. Assuming all necessary approvals are obtained, the Company expects that it could complete the re-domiciliation procedures in Q4 2024. Further updates on the process will be provided by the Company in due course.
Asset Portfolio Update
Proyecto Riotinto
In 2023, the Company was granted a substantial modification to the existing Unified Environmental Authorisation (or in Spanish, Autorización Ambiental Unificada ("AAU")) for Proyecto Riotinto by the Junta de Andalucía. The AAU allows for the expansion of tailings capacity and the mine footprint at Riotinto and represents an important step towards developing regional deposits such as San Dionisio and San Antonio.
The Company is advancing the permitting process associated with the San Dionisio final pit, which represents a key component of the integrated mine plan outlined in the 2023 Riotinto PEA. Waste stripping is underway in order to prepare the area for future mining phases, with 4.6 million tonnes of waste mined in Q1 2024. Additional mining equipment is expected to arrive on site in Q2 2024.
At San Antonio, preparations are underway to begin an infill and step-out drilling programme.
E-LIX Phase I Plant
Final construction activities are underway at the E-LIX Phase I plant. Following the production of initial copper cathodes and zinc precipitate, commissioning and ramp-up is expected to continue throughout Q2 2024.
Once fully operational, the E-LIX plant is expected to produce high-purity copper or zinc metals on site, allowing the Company to potentially achieve higher metal recoveries from complex polymetallic ores, lower transportation and concentrate treatment charges and a reduced carbon footprint.
50 MW Solar Plant
Construction activities are advancing at the 50 MW solar plant at Riotinto, however, the Company's contractor has given notice of further delays and now expects completion in late 2024.
The Company is evaluating further measures that could mitigate the financial impact of a future increase in market electricity prices until the 50 MW solar plant is fully completed. So far in 2024, market electricity prices have been below long term averages in Spain, therefore the construction delay has not had a material impact on the Company's operating costs.
Once fully operational, the 50 MW solar plant is expected to provide approximately 22% of Riotinto's current electricity needs. Together, the 50 MW solar plant and 10-year PPA will provide over 50% of the Company's current electricity requirements at a rate well below historical prices in Spain.
Riotinto District - Proyecto Masa Valverde ("PMV")
In 2023, the Company was granted the AAU and exploitation permit for PMV. As a result, various workstreams continue including geotechnical and sterilisation drilling to support design work associated with a future ramp and ventilation shaft. At this stage, the Company expects to start construction of the access ramp by the end of 2024.
Two core rigs are active and focused on step-out drilling at the Mojarra Trend and the Masa Valverde deposit.
Proyecto Touro
Atalaya remains fully committed to the development of the Touro copper project, which has the potential to provide substantial benefits to Galicia and also support the European Union's critical raw materials mandate.
Touro has the potential to become a new source of copper production for Europe. As such, the project could also be granted "Strategic Project" status by the EU, which can be awarded to projects "based on their contribution to the security of supply of strategic raw materials, their technical feasibility, sustainability and social standards", as part of the Critical Raw Materials Act. Copper was added to the list of "Strategic Raw Materials" owing to its importance for strategic sectors and technologies and due to the supply-demand imbalance that is expected in the near future.
Running parallel with the ongoing Touro permitting process, the Company continues to focus on numerous initiatives related to the social licence, including engaging with the many stakeholders in the region to provide detailed information on the new and improved project design. Positive and favourable feedback from numerous meetings with municipalities, farmers and fishermen associations and other industries indicate meaningful support towards the development of a new and modern mining project.
The Company continues to successfully restore the water quality of the rivers around Touro and is operating its water treatment plant, which is addressing the legacy issues associated with acid water runoff from the historical mine, which closed in 1987. The field-work carried out by Atalaya has resulted in an immediate and visible improvement of the water systems surrounding the project, with the progress being recognised by local stakeholders and the media.
Atalaya continues to be confident that its approach to Touro, which includes fully plastic lined thickened tailings with zero discharge, is consistent with international best practice and will satisfy the most stringent environmental conditions that may be imposed by the authorities prior to the development of the project.
Proyecto Ossa Morena
Drilling continued to progress with one rig at the Guijarro-Chaparral gold-copper project and the La Hinchona copper-gold project, both in the central part of the district. Drilling is expected to resume at the flagship Alconchel-Pallares copper-gold project during Q2 2024.
Proyecto Riotinto East
In Q2 2024, drill testing will begin at priority anomalies identified via SkyTEM and AGG surveys.
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 / Matthew Elliott |
+44 20 3757 6882 |
|
Atalaya Mining |
Michael Rechsteiner |
+34 959 59 28 50 |
|
Canaccord Genuity (Joint Broker) |
James Asensio / George Grainger |
+44 20 7523 8000 |
|
BMO Capital Markets (Joint Broker) |
Tom Rider / Andrew Cameron |
+44 20 7236 1010 |
|
Peel Hunt LLP (Joint Broker) |
Ross Allister / David McKeown |
+44 20 7418 8900 |
About Atalaya Mining Plc
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 (Premium Segment) under the symbol "ATYM".
Atalaya's operations include the Cerro Colorado open pit mine and a modern 15 Mtpa processing plant, which has the potential to become a central processing hub for ore sourced from its wholly owned regional projects around Riotinto, such as Proyecto Masa Valverde and Proyecto Riotinto East. In addition, Atalaya has a phased earn-in agreement for up to 80% ownership of Proyecto Touro, a brownfield copper project in the northwest of Spain, as well as a 99.9% interest in Proyecto Ossa Morena. For further information, please visit www.atalayamining.com
ATALAYA MINING PLC
MANAGEMENT'S REVIEW AND
UNAUDITED INTERIM CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
31 March 2024
Notice to Reader
The accompanying unaudited interim condensed consolidated financial statements of Atalaya Mining Plc have been prepared by and are the responsibility of Atalaya Mining Plc's management.
Introduction
This report provides an overview and analysis of the financial results of operations of Atalaya Mining Plc and its subsidiaries ("Atalaya" and/or "Group"), to enable the reader to assess material changes in the financial position between 31 December 2023 and 31 March 2024 and results of operations for the three months ended 31 March 2024 and 2023.
This report has been prepared as of 20 May 2024. 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 2024. 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 2023. These documents can be found on Atalaya's website at www.atalayamining.com.
Atalaya prepares its Annual Financial Statements in accordance with International Financial Reporting Standards ("IFRS") as adopted by EU and its Unaudited Interim Condensed Consolidated Financial Statements in accordance with International Accounting Standards 34: Interim Financial Reporting. The currency referred to in this document is the Euro, unless otherwise specified.
Forward-looking statements
This report may include certain "forward-looking statements" and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitute forward-looking statements. Forward-looking statements are frequently characterised by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Assumptions upon which such forward-looking statements are based include that all required third party regulatory and governmental approvals will be obtained. Many of these assumptions are based on factors and events that are not within the control of Atalaya and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions and other risk factors discussed or referred to in this report and other documents filed with the applicable securities regulatory authorities. Although Atalaya has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Atalaya undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
1. Incorporation and description of the Business
Atalaya Mining Plc (the "Company") was incorporated in Cyprus on 17 September 2004 as a private company with limited liability under the Companies Law, Cap. 113 and was converted to a public limited liability company on 26 January 2005. Its registered office is at 1 Lampousa Street, Nicosia, Cyprus.
The Company was 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.
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 executed the option to acquire 12.5% of Explotaciones Gallegas del Cobre, S.L. the exploration property around Touro, with known additional reserves, which will provide high potential to the Proyecto Touro.
Proyecto Masa Valverde
On 21 October 2020, the Company announced that it entered into a definitive purchase agreement to acquire 100% of the shares of Cambridge Mineria España, S.L. (since renamed Atalaya Masa Valverde, S.L.U.), a Spanish company which fully owns the Masa Valverde polymetallic project located in Huelva (Spain). Under the terms of the agreement Atalaya will make an aggregate €1.4 million cash payment in two instalments of approximately the same amount. The first payment is to be executed once the project is permitted and second and final payment when first production is achieved from the concession.
In November 2023, the exploitation permit for the Masa Valverde and Majadales deposits was officially granted.
Proyecto Ossa Morena
In December 2021, Atalaya announced the acquisition of a 51% interest in Rio Narcea Nickel, S.L., which owns 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 will be 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.
Proyecto Riotinto East
In December 2020, Atalaya entered into a Memorandum of Understanding with a local private Spanish company to acquire a 100% beneficial interest in two investigation permits (known as Peñas Blancas and Cerro Negro investigation permits), which are located immediately to the east of Proyecto Riotinto.
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 2024 and 2023, respectively.
|
Units expressed in accordance with the international system of units (SI) |
Unit |
Three month period ended 31 Mar 2024 |
Three month period ended 31 Mar 2023 |
|
Ore mined |
t |
3,701,828 |
3,421,556 |
|
Waste mined |
t |
5,539,677 |
6,516,903 |
|
Ore processed |
t |
3,740,093 |
3,723,853 |
|
Copper ore grade |
% |
0.34 |
0.38 |
|
Copper concentrate grade |
% |
20.25 |
21.05 |
|
Copper recovery rate |
% |
84.74 |
86.88 |
|
Copper concentrate |
t |
52,684 |
57,670 |
|
Copper contained in concentrate |
t |
10,666 |
12,139 |
|
Payable copper contained in concentrate |
t |
10,139 |
11,563 |
|
Cash cost* |
US$/lb payable |
2.99 |
2.88 |
|
All-in sustaining cost* |
US$/lb payable |
3.17 |
3.12 |
|
|
|
|
|
(*) Refer Section 5 of this Management Review.
There may be slight differences between the numbers in the above table and the figures announced in the quarterly operations updates that are available on Atalaya's website at www.atalayamining.com
|
$/lb Cu payable |
Q1 2024 |
Q1 2023 |
|
Mining |
0.99 |
0.83 |
|
Processing |
0.91 |
0.97 |
|
Other site operating costs |
0.67 |
0.52 |
|
Total site operating costs |
2.57 |
2.32 |
|
By-product credits |
(0.14) |
(0.09) |
|
Freight, treatment charges and other offsite costs |
0.56 |
0.65 |
|
Total offsite costs |
0.42 |
0.56 |
|
Cash costs |
2.99 |
2.88 |
|
|
|
|
|
Cash costs |
2.99 |
2.88 |
|
Corporate costs |
0.09 |
0.07 |
|
Sustaining capital (excluding one-off tailings expansion) |
0.02 |
0.01 |
|
Capitalised stripping costs |
- |
0.08 |
|
Other costs |
0.07 |
0.08 |
|
AISC |
3.17 |
3.12 |
Note: Some figures may not add up due to rounding.
Three months operational review
Mining
Ore mined was 3.7 million tonnes in Q1 2024 (Q1 2023: 3.4 million tonnes), compared with 3.7 million tonnes in Q4 2023.
Waste mined was 5.5 million tonnes in Q1 2024 (Q1 2023: 6.5 million tonnes), compared with 7.4 million tonnes in Q4 2023. Separately, waste stripping activities advanced at the San Dionisio area.
Processing
The plant processed 3.7 million tonnes of ore in Q1 2024 (Q1 2023: 3.7 million tonnes) compared to 4.1 million tonnes in Q4 2023. Throughput was impacted by the scheduling of two plant shutdowns, one for maintenance and the other for the connection of the 50 MW solar plant to the substation.
Copper grade in Q1 2024 was 0.34% (Q1 2023: 0.38%) compared to 0.36% in Q4 2023. The lower copper grade in Q1 2024 was mainly due to pit sequencing and also rainfall which prevented access to higher grade areas of the Cerro Colorado pit.
Copper recovery was 84.74% in Q1 2024 (Q1 2023: 86.88%), compared with 85.47% in Q4 2023, due to lower grades being processed.
Production
Copper production was 10,666 tonnes in Q1 2024 (Q1 2023: 12,139 tonnes), compared with 12,775 tonnes in Q4 2023. Lower production in Q1 2024 was mainly the result of lower grades and recoveries.
On-site copper concentrate inventories at the end of Q1 2024 were approximately 8,283 tonnes.
Copper contained in concentrates sold was 10,286 tonnes in Q1 2024 (Q1 2023: 12,501 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 2024 |
|
Ore mined |
million tonnes |
~19 |
|
Waste mined |
million tonnes |
~25 |
|
Ore processed |
million tonnes |
15.3 - 15.8 |
|
Copper ore grade |
% |
0.39 - 0.41 |
|
Copper recovery rate |
% |
84 - 86 |
|
Contained copper |
tonnes |
51,000 - 53,000 |
|
Cash costs |
$/lb payable |
2.80 - 3.00 |
|
All-in sustaining cost |
$/lb payable |
3.00 - 3.20 |
Production
Copper production in Q1 2024 was impacted by lower copper grades and recoveries. Guidance for FY2024 of 51,000 - 53,000 tonnes is unchanged due to the expectation of higher copper grades in the coming quarters and will be reviewed on an ongoing basis.
Operating Costs
Operating cost guidance for FY2024 are a cash cost range of $2.80 - 3.00/lb copper payable and an AISC range of $3.00 - 3.20/lb copper payable. AISC excludes one-off investments in the tailings dam (consistent with prior reporting) and waste stripping at the San Dionisio area, which are included in capital expenditure guidance below.
Capital Expenditures
Non-sustaining capital expenditure guidance for FY2024 is €64 - 73 million. This includes €4 - 5 million for completion of the 50 MW solar plant, €5 - 7 million for completion and ramp-up of the E-LIX Phase I Plant, €42 - 46 million for San Dionisio waste stripping, dewatering and road relocation and €13 - 15 million for expansion of the existing Riotinto tailings facility.
Exploration
Atalaya's exploration guidance for FY2024 is €5 - 7 million.
4. Overview of the Financial Results
The following table presents summarised consolidated income statements for the three months ended 31 March 2024, with comparatives for the three months ended 31 March 2023.
|
(Euro 000's) |
Three month period ended 31 Mar 2024 |
Three month period ended 31 Mar 2023 |
|
|
|
|
|
Revenues |
69,938 |
91,171 |
|
Costs of sales |
(56,757) |
(63,003) |
|
Administrative and other expenses |
(1,927) |
(2,033) |
|
Exploration expenses |
(855) |
(1,533) |
|
Care and maintenance expenditure |
(432) |
(295) |
|
Other income |
284 |
98 |
|
EBITDA |
10,251 |
24,405 |
|
Depreciation/amortisation |
(9,606) |
(8,762) |
|
Net foreign exchange gain/(loss) |
1,571 |
(1,222) |
|
Net finance cost |
(90) |
(844) |
|
Tax |
(499) |
(2,473) |
|
Profit for the period |
1,627 |
11,104 |
Three months financial review
Revenues for the three-month period ended 31 March 2024 amounted to €69.9 million (Q1 2023: €91.2 million). Lower revenues are mainly due to a lower in copper concentrate volume sold and lower realised copper prices.
Realised prices excluding QPs were US$3.89/lb copper during Q1 2024 compared with $4.00/lb copper in Q1 2023. The realised price, including QPs were approximately $3.79/lb during the quarter ($3.94/lb in Q1 2023).
Cost of sales for the three-month period ended 31 March 2024 amounted to €56.8 million, compared with €63.0 million in Q1 2023. Lower costs primarily attributable to lower sales volume and reduced electricity prices.
Cash costs of $2.99/lb payable copper during Q1 2024 compared with $2.88lb payable copper in the same period last year. Higher cash costs mainly due to lower copper production in the quarter, combined with a weaker USD Dollar/Euro exchange rate compared to Q1 2023. AISC excluding investment in tailings dam expansion and San Dionisio stripping for Q1 2024 were $3.17/lb payable copper compared to $3.12/lb payable copper in Q1 2023. The increase was primarily due to higher cash costs.
Sustaining capex for Q1 2024 amounted to €0.4 million compared with €0.3 million in Q1 2023. Sustaining capex was mainly related to continuous enhancements in the processing systems of the plant. In addition, the Company invested €2.3 million in the project to increase the tailings dam during Q1 2024.
Capex associated with the construction of the 50 MW solar plant amounted to €0.7 million in Q1 2024, while investments in the E-LIX Phase I plant, commissioning and ramp-up totalled €6.3 million. Additionally, a capex of €8.2 million is related to the San Dionisio area.
Administrative and other expenses amounted to €1.9 million (Q1 2023: €2.0 million) and include non-operating costs of the Cyprus office, corporate legal and consultancy costs, on-going listing costs, officers and directors' emoluments, and salaries and related costs of the corporate office.
Exploration costs for the three-month period ended 31 March 2024 amounted to €0.9 million, lower than Q1 2023 (€1.5 million).
EBITDA for the three months ended 31 March 2024 amounted to €10.3 million compared with Q1 2023 of €24.5 million. The lower EBITDA was due to the decline in sales as explained above, partially offset by a reduction in cost of sales.
The main item below the EBITDA line is depreciation and amortisation of €9.6 million (Q1 2023: €8.8 million).
Net foreign exchange differences have a positive impact due to the weaker US Dollar/Euro rate at the end of Q1 2024 compared with the beginning of the quarter.
Net financing costs for Q1 2024 amounted to €0.1 million compared with €0.8 million in Q1 2023.
Copper prices
The average realised copper price (excluding QPs) decreased 3% from US$4.00 per pound in Q1 2023 to US$3.89 per pound in Q1 2024.
The average prices of copper for the three months ended 31 March 2024 and 2023 are summarised below:
|
$/lb |
Three month period ended 31 Mar 2024 |
Three month period ended 31 Mar 2023 |
|
Realised copper price excluding QPs closed |
3.89 |
4.00 |
|
Market copper price per lb (period average) |
3.94 |
4.05 |
Realised copper prices for the reporting period noted above have been calculated using payable copper and excluding both provisional invoices and final settlements of quotation periods ("QPs") together. The realised price during the year, including the QP, was approximately $3.79/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 2024 and 31 December 2023 and cash flows for Q1 2024 and 2023.
Liquidity information
|
(Euro 000's) |
31 Mar 2024 |
31 Dec 2023 |
|
Unrestricted cash and cash equivalents at Group level |
58,895 |
94,868 |
|
Unrestricted cash and cash equivalents at Operation level |
27,260 |
26,139 |
|
Consolidated cash and cash equivalents |
86,155 |
121,007 |
|
Net cash position (1) |
36,067 |
54,320 |
|
Working capital surplus |
59,608 |
68,618 |
|
|
|
|
(1) Includes borrowings
Unrestricted cash and cash equivalents (which include cash at both Group level and Operation level) as at 31 March 2024 decreased to €86.2 million from €121.0 million at 31 December 2023. The decrease in cash was mainly due to higher cash outflows from operations, investments and repayment of financing. Specifically, negative working capital movements offset cash flows from operations, investments increased due to the capital expenditure in the San Dionisio area and financing saw higher outflows due to the repayment of operating facilities. Cash balances are unrestricted and include balances at operational and corporate level.
As of 31 March 2024, Atalaya reported a working capital surplus of €59.6 million, compared with a working capital surplus of €68.6 million at 31 December 2023. The decrease in working capital mainly resulted from the repayment of current payables.
Overview of the Group's cash flows
|
(Euro 000's) |
Three month period ended 31 Mar 2024 |
Three month period ended 31 Mar 2023 |
|
Cash flows (used in)/from operating activities |
(1,737) |
12,362 |
|
Cash flows used in investing activities |
(17,877) |
(8,811) |
|
Cash flows used in financing activities |
(16,809) |
(9,431) |
|
Net (decrease) in cash and cash equivalents |
(36,423) |
(5,880) |
|
Net foreign exchange differences |
1,571 |
(1,222) |
|
Total net cash flow for the period |
(34,852) |
(7,102) |
Three months cash flows review
Cash and cash equivalents were €86.2 million at 31 March 2024. This was due to the net results of cash used in operating activities amounting to €1.7 million, the cash used in investing activities amounting to €17.9 million, the cash used from financing activities totaling €16.8 million and net foreign exchange differences of positive €1.6 million.
Cash generated from operating activities before working capital changes was €11.4 million. Trade receivables in the period increased by €2.7 million, inventory levels increased by €2.2 million and trade payables decreased by €6.2 million.
Investing activities during the quarter consumed €17.9 million, relating mainly to the tailings dams project, E-LIX, San Dionisio area and continuous enhancements in the processing systems of the plant.
Financing activities during the quarter used €16.8 million driven by repayments of existing unsecured credit facilities.
Foreign exchange
Foreign exchange rate movements can have a significant effect on Atalaya's operations, financial position and results. Atalaya's sales are denominated in U.S. dollars ("USD"), while Atalaya's operating expenses, income taxes and other expenses are mainly denominated in Euros ("EUR") which is the functional currency of the Group, and to a much lesser extent in British Pounds ("GBP").
Accordingly, fluctuations in the exchange rates can potentially impact the results of operations and carrying value of assets and liabilities on the balance sheet.
During the three months ended 31 March 2024, Atalaya recognised a foreign exchange gain of €1.6 million (€1.2 million foreign exchange loss in Q1 2023). Foreign exchange gain mainly related to change in the period end EUR and USD conversion rates, as all sales are cashed and 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 2024 |
Three month period ended 31 Mar 2023 |
|
Average rates for the periods |
|
|
|
GBP - EUR |
0.8563 |
0.8831 |
|
USD - EUR |
1.0858 |
1.0730 |
|
Spot rates as at |
|
|
|
GBP - EUR |
0.8551 |
0.8792 |
|
USD - EUR |
1.0811 |
1.0875 |
7. Sustainability
Corporate Social Responsibility
The first quarter of the year brings further developments from Atalaya and its wholly owned Fundación Atalaya Riotinto that continue to work on several actions to undertake its social responsibilities.
In this regard, the agreements with near-by municipalities to establish collaboration have been renewed and will be operative until mid 2027. With such instrument in place, there are already some agreed initiatives to improve certain aspects of the towns, with projects that will be funded by our Foundation Atalaya aiming at activities that will positively impact social, environmental, and infrastructure issues.
For example, during the quarter, Atalaya has agreed to fund the construction of a playground in Nerva, not only aimed at children but also comprising cardio exercising equipment for adults. Also in Nerva, Atalaya has agreed to fund the replacement of halogen bulbs for LED in multiple streets in Nerva town, which will improve the public lighting and contribute to reduce the carbon footprint of the town. In parallel, Atalaya keeps developing its own projects, including the Fourth Atalaya Mining Operators Course for unemployed locals. This program has entered now its final stage, with students already on board with the different companies to complete their 200 hrs hands-on training.
The Foundation is also working in the development of Riotinto Experience program, which is an established site tour open to the public that will represent a new product to attract visitors to the area contributing to diversification as well as a very effective channel to communicate the positive impact of modern mining. During the period, Fundación Atalaya has also agreed to support various initiatives in the near-by towns, including sporting activities, such as a bicycle championship that brought more than 400 participants (La Mina Bike Maraton), and contributions to local sports teams like CD Trail El Campillo, Campofrío FC, Riotinto Balompié, and Corta Atalaya Golf Club. It also contributed to cultural initiatives like the Music School "Julia Hierro" Contest, the Jornadas Micológicas with Agaricus association and the national Poetry Contest in Riotinto "Huellas de Cobre". On the social side, Atalaya has contributed to the activities of Unidos por el Alto association, which works with disadvantaged local youth.
Health and Safety
The positive trend of 2023 has continued during the first quarter of 2024. There were 3 accidents with lost time with a 5.08 for the Frequency Index and 0.07 for the Severity Index.
Annual reports of technical specialties in occupational risk prevention, the prevention plan, and the safety and health document accompanying the Work Plan were prepared, as well as the planning of preventive activity for the year 2024.
Regarding Industrial Hygiene measurements, almost all of those planned for the first quarter were carried out. As for the first intervention brigade, training for the volunteers of the Brigade in the handling of the basic life support and a inspection session of the mining facility.
In addition, Atalaya has reviewed the risks assessment of all jobs in terms of manual handling of loads, forced postures and repetitive movements to re-evaluate the ergonomics parameters.
Furthermore, during the quarter the first meeting of the health and safety committee with the worker representatives took place and Atalaya updated its internal procedure for controlling drugs and preventing work under the influence of psychoactive substances using AI.
Environment
During the first quarter of 2024, the environmental department has continued executing the actions of environmental monitoring of the activity and management of the natural environment. Key points of the quarter:
· During the first quarter of the year, three environmental incidents were registered. All of them related to spills over unpaved area. The areas were cleaned, and the waste were handled properly.
· A total rainfall of 481.3 l/m2 was recorded in Q1 2024, which was around 568% more than in the same period of previous year. The total rain collected for the hydrological year (October 2023 to September 2024) is 787.2 l/m2, which is 131% more than the rainfall recorded in the previous hydrological year (same period).
· Upon expiration of the existing permit, in January 2024, Atalaya was granted a new temporary permit valid until January 2026 for an additional 4.1 hm3 per year of fresh water supply for a total of 6.6 hm3 per year.
· The additional measures contemplated in the action plan against dust continued to be implemented, intensifying periodic irrigation, implementing new coordination measures, and carrying out exhaustive monitoring of the emissions generated in the operation.
· All the regular internal controls of diffuse emissions into the atmosphere have been carried out, and the results of the controls are within the limit values. However, in January, PST limit was exceeded at sampling point number 1, and in March, PSD limit was exceeded in five control points (dust intrusion). In the rest, PSD and PST limits were met. The remaining periodic and mandatory controls have been carried out without incidents. In addition, during the quarter, several reports were handed to the Administration bodies.
· Environmental inspections were performed daily, mainly focused on chemical storage and handling, housekeeping, waste management, uncontrolled releases and environmentally friendly practices carried out in the project by ARM's and contractors' personnel. Additionally, dust control and drainage system inspections were performed regularly. 84 inspections in total were carried out during the first quarter, including, plant, mine area and the contractors' camps.
· Environmental inspections were performed daily, mainly focused on chemical storage and handling, housekeeping, waste management, uncontrolled releases and environmentally friendly practices carried out in the project by ARM's and contractors' personnel. Additionally, dust control and drainage system inspections were performed regularly. 82 inspections in total were carried out during the third quarter, including, plant, mine area and the contractors' camps.
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 2023.
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 2023.
As at 31 March 2024, there are no significant changes in critical accounting policies or estimates to those applied in 2023.
10. Other Information
Additional information about Atalaya Mining Plc. is available at www.atalayamining.com
Unaudited interim condensed consolidated financial statements on subsequent pages.
By Order of the Board of Directors,
___________________________________
Roger Davey
Chairman
Nicosia, 20 May 2024
Unaudited Interim Condensed Consolidated Income Statements
(All amounts in Euro thousands unless otherwise stated)
For the period ended 31 March 2024 and 2023
|
(Euro 000's) |
Note |
Three month period ended 31 Mar 2024 |
Three month period ended 31 Mar 2023 |
|
|
|
|
|
|
Revenue |
4 |
69,938 |
91,171 |
|
Operating costs and mine site administrative expenses |
(56,606) |
(62,927) |
|
|
Mine site depreciation and amortisation |
|
(9,606) |
(8,762) |
|
Gross profit |
|
3,726 |
19,482 |
|
Administration and other expenses |
|
(1,927) |
(2,033) |
|
Share-based benefits |
15 |
(151) |
(76) |
|
Exploration expenses |
|
(855) |
(1,533) |
|
Care and maintenance expenditure |
|
(432) |
(295) |
|
Operating profit |
|
361 |
15,545 |
|
Other income |
|
284 |
98 |
|
Net foreign exchange gain/(loss) |
3 |
1,571 |
(1,222) |
|
Net finance costs |
5 |
(90) |
(844) |
|
Profit before tax |
|
2,126 |
13,577 |
|
Tax |
6 |
(499) |
(2,473) |
|
Profit for the period |
|
1,627 |
11,104 |
|
|
|
|
|
|
Profit for the period attributable to: |
|
|
|
|
- Owners of the parent |
7 |
2,026 |
11,369 |
|
- Non-controlling interests |
|
(399) |
(265) |
|
|
|
1,627 |
11,104 |
|
|
|
|
|
|
Earnings per share from operations attributable to equity holders of the parent during the period: |
|||
|
Basic earnings per share (EUR cents per share) |
7 |
1.5 |
8.1 |
|
Fully diluted earnings per share (EUR cents per share) |
7 |
1.4 |
7.9 |
|
|
|
|
|
|
Profit for the period |
|
1,627 |
11,104 |
|
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 'OCI' |
(4) |
6 |
|
|
Total comprehensive income for the period |
1,623 |
11,110 |
|
|
|
|
|
|
|
Total comprehensive income for the period attributable to: |
|
||
|
- Owners of the parent |
7 |
2,022 |
11,375 |
|
- Non-controlling interests |
|
(398) |
(265) |
|
|
|
1,623 |
11,110 |
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 2024 and 2023
|
(Euro 000's) |
Note |
31 Mar 2023 |
31 Dec 2023 |
|
Assets |
|
Unaudited |
Audited |
|
Non-current assets |
|
|
|
|
Property, plant and equipment |
9 |
393,463 |
384,739 |
|
Intangible assets |
10 |
49,090 |
49,397 |
|
Trade and other receivables |
12 |
26,989 |
26,702 |
|
Non-current financial assets |
2.3 |
1,101 |
1,101 |
|
Deferred tax asset |
|
11,246 |
11,282 |
|
|
|
481,889 |
473,221 |
|
Current assets |
|
|
|
|
Inventories |
11 |
35,558 |
33,314 |
|
Trade and other receivables |
12 |
43,487 |
42,897 |
|
Tax refundable |
|
1,902 |
100 |
|
Other financial assets |
2.3 |
27 |
30 |
|
Cash and cash equivalents |
13 |
86,155 |
121,007 |
|
|
|
167,129 |
197,348 |
|
Total assets |
|
649,018 |
670,569 |
|
|
|
|
|
|
Equity and liabilities |
|
|
|
|
Equity attributable to owners of the parent |
|
|
|
|
Share capital |
14 |
13,598 |
13,596 |
|
Share premium |
14 |
319,482 |
319,411 |
|
Other reserves |
15 |
87,549 |
70,463 |
|
Accumulated profit |
|
83,113 |
98,026 |
|
|
|
503,742 |
501,496 |
|
Non-controlling interests |
|
(9,503) |
(9,104) |
|
Total equity |
|
494,239 |
492,392 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Non-current liabilities |
|
|
|
|
Trade and other payables |
16 |
2,205 |
2,205 |
|
Provisions |
17 |
27,816 |
27,234 |
|
Lease liabilities |
19 |
3,681 |
3,877 |
|
Borrowings |
18 |
13,556 |
16,131 |
|
|
|
47,258 |
49,447 |
|
Current liabilities |
|
|
|
|
Trade and other payables |
16 |
69,705 |
75,922 |
|
Lease liabilities |
19 |
487 |
501 |
|
Borrowings |
18 |
36,532 |
50,556 |
|
Current provisions |
17 |
163 |
434 |
|
Current tax liabilities |
|
634 |
1,317 |
|
|
|
107,521 |
128,730 |
|
Total liabilities |
|
154,779 |
178,177 |
|
Total equity and liabilities |
|
649,018 |
670,569 |
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 2024 and 2023
|
(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) |
1,627 |
|
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 |
|
2 |
71 |
- |
- |
73 |
- |
73 |
|
Recognition of depletion factor |
14 |
- |
- |
7,500 |
(7,500) |
- |
- |
- |
|
Recognition of share-based payments |
15 |
- |
- |
151 |
- |
151 |
- |
151 |
|
Recognition of non-distributable reserve |
15 |
- |
- |
142 |
(142) |
- |
- |
- |
|
Recognition of distributable reserve |
15 |
- |
- |
9,297 |
(9,297) |
- |
- |
- |
|
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 |
|
At 1 January 2023 |
|
13,596 |
319,411 |
69,805 |
70,483 |
473,295 |
(6,998) |
466,297 |
|
Profit for the period |
|
- |
- |
- |
11,369 |
11,369 |
(265) |
11,104 |
|
Change in fair value of financial assets through OCI |
|
- |
- |
6 |
- |
6 |
- |
6 |
|
Total comprehensive income |
|
- |
- |
6 |
11,369 |
11,375 |
(265) |
11,110 |
|
Issuance of share capital |
14 |
- |
- |
- |
- |
- |
- |
- |
|
Recognition of share-based payments |
15 |
- |
- |
- |
- |
- |
- |
- |
|
Recognition of depletion factor |
15 |
- |
- |
- |
- |
- |
- |
- |
|
Recognition of non-distributable reserve |
15 |
- |
- |
- |
- |
- |
- |
- |
|
Recognition of-distributable reserve |
15 |
- |
- |
- |
- |
- |
- |
- |
|
Other changes in equity |
|
- |
- |
- |
- |
- |
- |
- |
|
At 31 March 2023 |
|
13,596 |
319,411 |
69,811 |
81,852 |
484,670 |
(7,263) |
477,407 |
|
|
|
|
|
|
|
|
|
|
|
(Euro 000's) |
Note |
Share capital |
Share premium (1) |
Other reserves |
Accum. Profits |
Total |
NCI |
Total equity |
|
Audited |
||||||||
|
At 1 January 2023 |
|
13,596 |
319,411 |
69,805 |
70,483 |
473,295 |
(6,998) |
466,297 |
|
Profit for the period |
|
- |
- |
- |
38,769 |
38,769 |
(2,106) |
36,663 |
|
Change in fair value of financial assets through OCI |
|
- |
- |
(3) |
- |
(3) |
- |
(3) |
|
Total comprehensive income |
|
- |
- |
(3) |
38,769 |
38,766 |
(2,106) |
36,660 |
|
Recognition of share-based payments |
15 |
- |
- |
661 |
- |
661 |
- |
661 |
|
Other changes in equity |
|
- |
- |
- |
252 |
252 |
- |
252 |
|
Dividends paid |
11 |
- |
- |
- |
(11,478) |
(11,478) |
- |
(11,478) |
|
At 31 December 2023 |
|
13,596 |
319,411 |
70,463 |
98,026 |
501,496 |
(9,104) |
492,392 |
(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 2024 and 2023
|
(Euro 000's) |
Note |
Three month period ended 31 Mar 2024 |
Three month period ended 31 Mar 2023 |
|||
|
Cash flows from operating activities |
|
|
|
|||
|
Profit before tax |
|
2,126 |
13,577 |
|||
|
Adjustments for: |
|
|
|
|||
|
Depreciation of property, plant and equipment |
8 |
9,026 |
7,678 |
|||
|
Amortisation of intangibles |
9 |
579 |
1,084 |
|||
|
Recognition of share-based payments |
15 |
151 |
76 |
|||
|
Interest income |
5 |
(535) |
(226) |
|||
|
Interest expense |
5 |
511 |
510 |
|||
|
Unwinding of discounting on mine rehabilitation provision |
17 |
107 |
553 |
|||
|
Other provisions |
17 |
- |
53 |
|||
|
Net foreign exchange differences |
3 |
(1,571) |
1,222 |
|||
|
Unrealised foreign exchange gain/(loss) on financing activities |
|
1,035 |
(404) |
|||
|
Cash inflows from operating activities before working capital changes |
11,429 |
24,123 |
||||
|
Changes in working capital: |
|
|
|
|||
|
Inventories |
10 |
(2,244) |
3,930 |
|||
|
Trade and other receivables |
12 |
(2,679) |
7,435 |
|||
|
Trade and other payables |
16 |
(6,213) |
(20,994) |
|||
|
Provisions |
17 |
(271) |
(148) |
|||
|
Cash flows from operations |
|
22 |
14,346 |
|||
|
Tax paid |
|
(1,242) |
(1,467) |
|||
|
Interest on leases liabilities |
5 |
(7) |
(7) |
|||
|
Interest paid |
5 |
(510) |
(510) |
|||
|
Net cash from operating activities |
|
(1,737) |
12,362 |
|||
|
|
|
|
|
|||
|
Cash flows from investing activities |
|
|
|
|||
|
Purchase of property, plant and equipment |
8 |
(17,853) |
(8,845) |
|||
|
Purchase of intangible assets |
9 |
(272) |
(31) |
|||
|
Interest received |
5 |
248 |
65 |
|||
|
Net cash used in investing activities |
|
(17,877) |
(8,811) |
|||
|
|
|
|
|
|||
|
Cash flows from financing activities |
|
|
|
|||
|
Lease payments |
19 |
(210) |
(151) |
|||
|
Net (Repayments) from borrowings |
18 |
(16,599) |
(9,280) |
|||
|
Net cash from financing activities |
|
(16,809) |
(9,431) |
|||
|
|
|
|
|
|||
|
Net decrease in cash and cash equivalents |
(36,423) |
(5,880) |
|
|||
|
Net foreign exchange difference |
3 |
1,571 |
(1,222) |
|||
|
Cash and cash equivalents: |
|
|
|
|||
|
At beginning of the period |
|
121,007 |
126,448 |
|||
|
At end of the period |
|
86,155 |
119,346 |
|||
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 2024 and 2023
1. Incorporation and summary of business
Atalaya Mining Plc (the "Company") was incorporated in Cyprus on 17 September 2004 as a private company with limited liability under the Companies Law, Cap. 113 and was converted to a public limited liability company on 26 January 2005. Its registered office is at 1 Lampousa Street, Nicosia, Cyprus.
The Company was 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.
Additional information about Atalaya Mining Plc is available at 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.
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 executed the option to acquire 12.5% of Explotaciones Gallegas del Cobre, S.L. the exploration property around Touro, with known additional reserves, which will provide high potential to the Proyecto Touro.
Proyecto Masa Valverde
On 21 October 2020, the Company announced that it entered into a definitive purchase agreement to acquire 100% of the shares of Cambridge Mineria España, S.L. (since renamed Atalaya Masa Valverde, S.L.U.), a Spanish company which fully owns the Masa Valverde polymetallic project located in Huelva (Spain). Under the terms of the agreement Atalaya will make an aggregate €1.4 million cash payment in two instalments of approximately the same amount. The first payment is to be executed once the project is permitted and second and final payment when first production is achieved from the concession.
In November 2023, the exploitation permits for the Masa Valverde and Majadales deposits was officially granted.
Proyecto Ossa Morena
In December 2021, Atalaya announced the acquisition of a 51% interest in Rio Narcea Nickel, S.L., which owns 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 will be 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.
Proyecto Riotinto East
In December 2020, Atalaya entered into a Memorandum of Understanding with a local private Spanish company to acquire a 100% beneficial interest in two investigation permits (known as Peñas Blancas and Cerro Negro investigation permits), which are located immediately to the east of Proyecto Riotinto.
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 2024 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 2023. 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 2023.
(b) Going concern
These unaudited condensed interim consolidated financial statements have been prepared based on accounting principles applicable to a going concern which assumes that the Group will realise its assets and discharge its liabilities in the normal course of business. Management has carried out an assessment of the going concern assumption and has concluded that the Group will generate sufficient cash and cash equivalents to continue operating for the next twelve months.
Management continues to monitor the impact of geopolitical developments. Currently no significant impact is expected in the operations of the Group.
2.2 New standards, interpretations and amendments adopted by the Group
The accounting policies adopted in the preparation of the unaudited condensed interim consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2023, except for the adoption of new standards effective as of 1 January 2024. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.
Several amendments and interpretations apply for the first time in 2024, but do not have a material impact on the unaudited condensed interim consolidated financial statements of the Group.
IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current (Amendments)
The amendments are effective for annual reporting periods beginning on or after January 1, 2024, with earlier application permitted, and will need to be applied retrospectively in accordance with IAS 8. The objective of the amendments is to clarify the principles in IAS 1 for the classification of liabilities as either current or non-current. The amendments clarify the meaning of a right to defer settlement, the requirement for this right to exist at the end of the reporting period, that management intent does not affect current or non-current classification, that options by the counterparty that could result in settlement by the transfer of the entity's own equity instruments do not affect current or non-current classification. Also, the amendments specify that only covenants with which an entity must comply on or before the reporting date will affect a liability's classification. Additional disclosures are also required for non-current liabilities arising from loan arrangements that are subject to covenants to be complied with within twelve months after the reporting period. The amendments had no material impact on the Group's unaudited condensed interim consolidated financial statements.
IFRS 16 Leases: Lease Liability in a Sale and Leaseback (amendments)
The amendments are effective for annual reporting periods beginning on or after January 1, 2024, with earlier application permitted. The amendments are intended to improve the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction in IFRS 16, while it does not change the accounting for leases unrelated to sale and leaseback transactions. In particular, the seller-lessee determines 'lease payments' or 'revised lease payments' in such a way that the seller-lessee would not recognise any amount of the gain or loss that relates to the right of use it retains. Applying these requirements does not prevent the seller-lessee from recognising, in profit or loss, any gain or loss relating to the partial or full termination of a lease. A seller-lessee applies the amendment retrospectively in accordance with IAS 8 to sale and leaseback transactions entered into after the date of initial application, being the beginning of the annual reporting period in which an entity first applied IFRS 16. The amendments had no material impact on the Group's unaudited condensed interim consolidated financial statements.
IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments Disclosure - Supplier Finance Arrangements (Amendments)
The amendments are effective for annual reporting periods beginning on or after January 1, 2024, with earlier application permitted. The amendments supplement requirements already in IFRS and require an entity to disclose the terms and conditions of supplier finance arrangements. Additionally, entities are required to disclose at the beginning and end of reporting period the carrying amounts of supplier finance arrangement financial liabilities and the line items in which those liabilities are presented as well as the carrying amounts of financial liabilities and line items, for which the finance providers have already settled the corresponding trade payables. Entities should also disclose the type and effect of non-cash changes in the carrying amounts of supplier finance arrangement financial liabilities, which prevent the carrying amounts of the financial liabilities from being comparable. Furthermore, the amendments require an entity to disclose at the beginning and end of the reporting period the range of payment due dates for financial liabilities owed to the finance providers and for comparable trade payables that are not part of those arrangements. The amendments have not yet been endorsed by the EU. The amendments had no material impact on the Group's unaudited condensed interim consolidated financial statements.
IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (Amendments)
The amendments are effective for annual reporting periods beginning on or after January 1, 2025, with earlier application permitted. The amendments specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. A currency is considered to be exchangeable into another currency when an entity is able to obtain the other currency within a time frame that allows for a normal administrative delay and through a market or exchange mechanism in which an exchange transaction would create enforceable rights and obligations. If a currency is not exchangeable into another currency, an entity is required to estimate the spot exchange rate at the measurement date. An entity's objective in estimating the spot exchange rate is to reflect the rate at which an orderly exchange transaction would take place at the measurement date between market participants under prevailing economic conditions. The amendments note that an entity can use an observable exchange rate without adjustment or another estimation technique. The amendments had no material impact on the Group's unaudited condensed interim consolidated financial statements.
2.3 Fair value estimation
The fair values of the Group's financial assets and liabilities approximate their carrying amounts at the reporting date.
The fair value of financial instruments traded in active markets, such as publicly traded trading and other financial assets is based on quoted market prices at the reporting date. The quoted market price used for financial assets held by the Group is the current bid price. The appropriate quoted market price for financial liabilities is the current ask price.
The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Group uses a variety of methods, such as estimated discounted cash flows, and makes assumptions that are based on market conditions existing at the reporting date.
Fair value measurements recognised in the consolidated statement of financial position
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, Grouped into Levels 1 to 3 based on the degree to which the fair value is observable.
· Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.
· Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
· Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).
2.3 Fair value estimation
|
Financial assets or liabilities |
Level 1 |
Level 2 |
Level 3 |
Total |
|
(Euro 000's) |
|
|
|
|
|
31 Mar 2024 |
|
|
|
|
|
Other financial assets |
|
|
|
|
|
Financial assets at FV through OCI |
27 |
- |
1,101 |
1,128 |
|
Trade and other receivables |
- |
- |
- |
- |
|
Receivables (subject to provisional pricing) |
- |
14,158 |
- |
14,158 |
|
Total |
27 |
14,158 |
1,101 |
15,286 |
|
|
|
|
|
|
|
31 Dec 2023 |
|
|
|
|
|
Other financial assets |
|
|
|
|
|
Financial assets at FV through OCI |
33 |
- |
1,101 |
1,134 |
|
Trade and other receivables |
|
|
|
- |
|
Receivables (subject to provisional pricing) |
- |
15,164 |
- |
15,164 |
|
Total |
30 |
15,164 |
1,101 |
16,295 |
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 2023 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 2024 |
Three month period ended 31 Mar 2023 |
|
|
€'000 |
€'000 |
|
Switzerland |
69,938 |
91,171 |
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 2024 |
Three month period ended 31 Mar 2023 |
|
|
€'000 |
€'000 |
|
Cyprus |
5,227 |
6,589 |
|
Spain |
64,711 |
84,582 |
|
|
69,938 |
91,171 |
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 2024 |
31 Dec 2023 |
|
|
€'000 |
€'000 |
|
Spain |
442,554 |
434,136 |
|
|
442,554 |
434,136 |
Revenue represents the sales value of goods supplied to customers; net of value added tax. The following table summarises sales to customers with whom transactions have individually exceeded 10.0% of the Group's revenues.
|
(Euro 000's) |
|
Three month period ended 31 Mar 2024 |
|
Three month period ended 31 Mar 2023 |
|
|
Segment |
€'000 |
Segment |
€'000 |
|
Offtaker 1 |
Copper |
19,701 |
Copper |
14,396 |
|
Offtaker 2 |
Copper |
26,101 |
Copper |
27,892 |
|
Offtaker 3 |
Copper |
24,136 |
Copper |
48,866 |
4. Revenue
|
(Euro 000's) |
Three month period ended 31 Mar 2024 |
Three month period ended 31 Mar 2023 |
|
Revenue from contracts with customers (1) |
73,718 |
88,313 |
|
Fair value (losses)/gains relating to provisional pricing within sales (2) |
(3,780) |
2,858 |
|
Total revenue |
69,938 |
91,171 |
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 2024 revenue there is a transaction price of €3.1 million (€2.4 million in Q1 2023) related to the freight services provided by the Group to the customers arising from the sales of copper concentrate under CIF incoterm.
(2) Provisional pricing impact 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 2024 |
Three month period ended 31 Mar 2023 |
|
Interest expense |
|
|
|
Other interest |
(511) |
(510) |
|
Interest on lease liabilities |
(7) |
(7) |
|
Unwinding of discount on mine rehabilitation provision (Note 17) |
(107) |
(553) |
|
Interest income |
|
|
|
Financial interest (1) |
535 |
226 |
|
|
(90) |
(844) |
(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 2024 |
Three month period ended 31 Mar 2023 |
|
Income taxes |
|
|
|
Current (income) tax/expense |
(499) |
2,473 |
|
(Income) tax/expense recognised in statement of profit and loss |
(499) |
2,473 |
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 2024 |
Three month period ended 31 Mar 2023 |
|
Profit attributable to equity holders of the parent |
2,026 |
11,369 |
|
|
|
|
|
Weighted number of ordinary shares for the purposes of basic earnings per share (000's) |
139,889 |
139,880 |
|
Basic earnings per share (EUR cents/share) |
1.5 |
8.1 |
|
|
|
|
|
Weighted number of ordinary shares for the purposes of fully diluted earnings per share (000's) |
144,728 |
143,423 |
|
Fully diluted earnings per share (EUR cents/share) |
1.4 |
7.9 |
At 31 March 2024 there are nil warrants (Note 14) and 4,828,500 options (Note 14) (31 March 2023: nil warrants and 3,543,500 options) which have been included when calculating the weighted average number of shares for 2024.
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 2023 |
80,326 |
7,076 |
291,335 |
50,235 |
52,358 |
872 |
482,202 |
|
Additions |
- |
- |
1,409 |
6,977 |
1,868 |
- |
10,254 |
|
Reclassifications |
- |
- |
1,543 |
(1,543) |
- |
- |
- |
|
Increase in rehab. Provision |
120 |
- |
- |
- |
- |
- |
120 |
|
At 31 March 2023 |
80,446 |
7,076 |
294,287 |
55,669 |
54,226 |
872 |
492,576 |
|
Additions |
36 |
- |
4,602 |
35,172 |
9,846 |
79 |
49,735 |
|
Increase in rehab. Provision |
3,025 |
- |
- |
- |
- |
- |
3,025 |
|
Reclassifications |
- |
- |
20,240 |
(20,240) |
- |
- |
- |
|
Advances |
10 |
- |
- |
- |
- |
- |
10 |
|
Write-off |
|
|
|
|
|
|
- |
|
At 31 December 2023 |
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 |
|
Increase in rehab. Provision |
475 |
- |
- |
- |
- |
- |
475 |
|
Reclassifications |
- |
- |
242 |
(242) |
- |
- |
- |
|
Write-off |
- |
(148) |
(439) |
- |
- |
- |
(587) |
|
At 31 March 2024 |
83,992 |
6,928 |
320,607 |
86,547 |
64,072 |
951 |
563,097 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
|
|
|
|
At 1 January 2023 |
20,454 |
1,998 |
89,182 |
- |
14,921 |
739 |
127,294 |
|
Adjustments |
- |
- |
6 |
- |
- |
- |
6 |
|
Opening adjusted |
20,454 |
1,998 |
89,188 |
- |
14,921 |
739 |
127,300 |
|
Charge for the period |
984 |
603 |
5,277 |
- |
816 |
(2) |
7,678 |
|
At 31 March 2023 |
21,438 |
2,601 |
94,465 |
- |
15,737 |
737 |
134,978 |
|
Charge for the period |
3,264 |
(70) |
19,082 |
- |
3,326 |
27 |
25,629 |
|
At 31 December 2023 |
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 |
|
|
|
|
|
|
|
|
|
|
Net book value |
|
|
|
|
|
|
|
|
At 31 March 2024 |
57,303 |
4,337 |
201,261 |
86,547 |
43,839 |
176 |
393,463 |
|
At 31 December 2023 |
58,815 |
4,545 |
205,582 |
70,601 |
45,009 |
187 |
384,739 |
(1) Assets under construction at 31 March 2024 were €86.5 million (31 Dec 2023: €70.6 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.
The above fixed assets are mainly located in Spain.
9. Intangible assets
|
(Euro 000's) |
Permits |
Licences, R&D and software |
Total |
|
Cost |
|
|
|
|
At 1 January 2023 |
81,255 |
8,642 |
89,897 |
|
Additions |
31 |
- |
31 |
|
At 31 March 2023 |
81,286 |
8,642 |
89,928 |
|
Additions |
113 |
116 |
229 |
|
Disposals |
(200) |
- |
(200) |
|
At 31 December 2023 |
81,199 |
8,758 |
89,957 |
|
Additions |
272 |
- |
272 |
|
At 31 March 2024 |
81,471 |
8,758 |
90,229 |
|
Amortisation |
|
|
|
|
At 1 January 2023 |
27,627 |
8,440 |
36,067 |
|
Charge for the period |
1,066 |
18 |
1,084 |
|
At 31 March 2023 |
28,693 |
8,458 |
37,151 |
|
Charge for the period |
3,387 |
22 |
3,409 |
|
At 31 December 2023 |
32,080 |
8,480 |
40,560 |
|
Charge for the period |
572 |
7 |
579 |
|
At 31 March 2024 |
32,652 |
8,487 |
41,139 |
|
Net book value |
|
|
|
|
At 31 March 2024 |
48,819 |
271 |
49,090 |
|
At 31 December 2023 |
49,119 |
278 |
49,397 |
Increase of permits related to the capitalisation of Proyecto Masa Valverde.
The ultimate recovery of balances carried forward in relation to areas of interest or all such assets including intangibles is dependent on successful development, and commercial exploitation, or alternatively the sale of the respective areas.
The Group conducts impairment testing on an annual basis unless indicators of impairment are not present at the reporting date.
10. Inventories
|
(Euro 000's) |
31 Mar 2024 |
31 Dec 2023 |
|
Finished products |
8,782 |
8,416 |
|
Materials and supplies |
23,255 |
21,852 |
|
Work in progress |
3,521 |
3,046 |
|
Total inventories |
35,558 |
33,314 |
As of 31 March 2024, copper concentrate produced and not sold amounted to 8,283 tonnes (31 Dec 2023: 6,722 tonnes). Accordingly, the inventory for copper concentrate was €8.8 million (31 Dec 2023: €8.4 million).
During Q1 2024 the Group recorded cost of sales amounting to €56.8 million (Q1 2023: €63.0 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 paid
Cash dividends declared and paid during the period:
|
(Euro 000's) |
Three month period ended 31 Mar 2024 |
Three month period ended 31 Mar 2023 |
|
Dividends declared and paid |
- |
- |
|
Interim dividend declared and paid |
- |
- |
A final dividend of US$0.04 in respect of 2023 was proposed on 18 March 2024 for approval by shareholders at the 2024 AGM. This will result in a total dividend for 2023 of US$0.09 per share.
12. Trade and other receivables
|
(Euro 000's) |
31 Mar 2024 |
31 Dec 2023 |
|
Non-current |
|
|
|
Deposits |
306 |
307 |
|
Loans |
234 |
233 |
|
Prepayments for service contract |
23,763 |
23,476 |
|
Other non-current receivables |
2,686 |
2,686 |
|
|
26,989 |
26,702 |
|
Current |
|
|
|
Trade receivables at fair value - subject to provisional pricing |
11,076 |
10,110 |
|
Trade receivables from shareholders at fair value - subject to provisional pricing (Note 22.3) |
3,082 |
5,054 |
|
Trade receivables from shareholders at amortised cost (Note 21.3) |
21 |
- |
|
Other receivables from related parties at amortised cost (Note 21.3) |
56 |
56 |
|
Deposits |
37 |
37 |
|
VAT receivables |
23,690 |
21,003 |
|
Tax advances |
22 |
- |
|
Prepayments |
5,010 |
5,855 |
|
Other current assets |
495 |
782 |
|
|
43,487 |
42,897 |
|
Allowance for expected credit losses |
- |
- |
|
Total trade and other receivables |
70,476 |
69,599 |
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 2023) 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 access to (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. Cash and cash equivalents
|
(Euro 000's) |
31 Mar 2024 |
31 Dec 2023 |
|
Unrestricted cash and cash equivalents at Group level |
58,895 |
94,868 |
|
Unrestricted cash and cash equivalents at Operation level |
27,260 |
26,139 |
|
Consolidated cash and cash equivalents |
86,155 |
121,007 |
The table above provides a comprehensive overview of the cash and cash equivalents held by Atalaya as of 31 March 2024.
Cash and cash equivalents denominated in the following currencies:
|
(Euro 000's) |
31 Mar 2024 |
31 Dec 2023 |
|
Euro - functional and presentation currency |
43,374 |
50,470 |
|
Great Britain Pound |
126 |
52 |
|
United States Dollar |
42,655 |
70,485 |
|
Consolidated cash and cash equivalents |
86,155 |
121,007 |
14. Share capital and share premium
|
|
|
Shares 000's |
Share Capital Stg£'000 |
Share premium Stg£'000 |
Total Stg£'000 |
||
|
Authorised |
|
|
|
|
|
||
|
Ordinary shares of Stg £0.075 each* |
|
200,000 |
15,000 |
- |
15,000 |
||
|
|
|
|
|
|
|
||
|
Issued and fully paid |
|
|
Shares |
Share Capital |
Share premium |
Total |
|
Issue Date |
Price (£) |
Details |
000's |
€'000 |
€'000 |
€'000 |
|
31 December 2022/1 January 2023 |
|
139,880 |
13,596 |
319,411 |
333,007 |
|
|
|
|
|
|
|
|
|
|
31-Dec-23 |
|
|
139,880 |
13,596 |
319,411 |
333,007 |
|
14-Feb-24 |
3.090 |
Exercised share options (a) |
20 |
2 |
71 |
73 |
|
31-Mar-24 |
|
|
139,899 |
13,598 |
319,482 |
333,080 |
Authorised capital
The Company's authorised share capital is 200,000,000 ordinary shares of Stg £0.075 each.
Issued capital
(a) On 9 February 2024, the Company announced that it has issued 20,000 ordinary shares of 7.5p in the Company ("Option Shares") pursuant to an exercise of share options by an employee.
No share issuance has taken place in FY2023.
The Company's share capital at 31 March 2024 is 139,899,209 ordinary shares of Stg £0.075 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 2024:
|
Grant date |
Expiry date |
Exercise price £ |
Share options |
||||
|
29 May 2019 |
28 May 2024 |
2.015 |
666,500 |
||||
|
30 June 2020 |
29 June 2030 |
1.475 |
516,000 |
||||
|
24 June 2021 |
23 June 2031 |
3.090 |
996,000 |
||||
|
26 January 2022 |
25 January 2032 |
4.160 |
120,000 |
||||
|
22 June 2022 |
30 June 2027 |
3.575 |
1,225,000 |
||||
|
22 May 2023 |
30 May 2028 |
3.270 |
1,305,000 |
||||
|
Total |
4,828,500 |
||||||
|
|
|
||||||
|
|
|
|
Weighted average exercise price £ |
Share options |
|||
|
|
At 1 January 2024 |
2.857 |
4,848,500 |
||||
|
|
Granted during the year |
- |
- |
||||
|
Options executed during the year |
3.090 |
(20,000) |
|||||
|
|
31 Mar 2024 |
2.967 |
4,828,500 |
||||
Warrants
As at 31 March 2024 and 2023 there were no warrants.
15. Other reserves
|
(Euro 000's) |
Share option |
Bonus share |
Depletion factor (1) |
FV reserve of financial assets at FVOCI (2) |
Non-Distributable reserve (3) |
Distributable reserve (4) |
Total |
|
At 1 January 2023 |
10,365 |
208 |
37,778 |
(1,153) |
8,316 |
14,291 |
69,805 |
|
Change in fair value of financial assets at fair value through OCI |
- |
- |
- |
6 |
- |
- |
6 |
|
At 31 March 2023 |
10,365 |
208 |
37,778 |
(1,147) |
8,316 |
14,291 |
69,811 |
|
Recognition of share-based payments |
661 |
- |
- |
- |
- |
- |
661 |
|
Change in fair value of financial assets at fair value through OCI |
- |
- |
- |
(9) |
- |
- |
(9) |
|
At 31 December 2023 |
11,026 |
208 |
37,778 |
(1,156) |
8,316 |
14,291 |
70,463 |
|
Recognition of share-based payments |
151 |
- |
- |
- |
- |
- |
151 |
|
Recognition of non-distributable reserve |
- |
- |
- |
- |
142 |
- |
142 |
|
Recognition of distributable reserve |
- |
- |
- |
- |
- |
9,297 |
9,297 |
|
Recognition of depletion factor |
- |
- |
7,500 |
- |
- |
- |
7,500 |
|
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 |
(1) Depletion factor reserve
At 31 March 2024, the Group has recognised €7.5 million (31 March 2023: €nil 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 2023 to distributable reserves.
16. Trade and other payables
|
(Euro 000's) |
31 Mar 2024 |
31 Dec 2023 |
|
Non-current |
|
|
|
Other non-current payables |
2,003 |
2,003 |
|
Government grant |
202 |
202 |
|
|
2,205 |
2,205 |
|
Current |
|
|
|
Trade payables |
65,399 |
70,303 |
|
Trade payables to shareholders (Note 22.3) |
- |
179 |
|
Accruals |
3,595 |
3,395 |
|
VAT payables |
355 |
391 |
|
Other |
359 |
1,654 |
|
|
69,708 |
75,922 |
Other non-current payables are related with the acquisition of Atalaya Ossa Morena SL (former Rio Narcea Nickel SL).
Trade payables are mainly for the acquisition of materials, supplies and other services. These payables do not accrue interest and no guarantees have been granted. The fair value of trade and other payables approximate their book values. Trade payables are non-interest-bearing and are normally settled on 60-day terms.
17. Provisions
|
(Euro 000's) |
Other provisions |
Legal costs |
Rehabilitation costs |
Total costs |
|
At 1 January 2023 |
1,435 |
226 |
23,374 |
25,035 |
|
Use of provision |
- |
- |
(148) |
(148) |
|
Increase in provision |
- |
- |
120 |
120 |
|
Finance cost |
- |
- |
553 |
553 |
|
At 31 March 2023 |
1,435 |
226 |
23,899 |
25,560 |
|
Additions |
- |
1 |
- |
1 |
|
Use of provision |
(685) |
- |
(370) |
(1,055) |
|
Reversal of provision |
- |
- |
3,025 |
3,025 |
|
Finance cost |
- |
- |
137 |
137 |
|
At 31 December 2023 |
750 |
227 |
26,691 |
27,668 |
|
Use of provision |
- |
- |
(271) |
(271) |
|
Increase in provision |
- |
- |
475 |
475 |
|
Finance cost |
- |
- |
107 |
107 |
|
At 31 March 2024 |
750 |
227 |
27,002 |
27,979 |
|
(Euro 000's) |
31 Mar 2024 |
31 Dec 2023 |
|
Non-current |
27,816 |
27,234 |
|
Current |
163 |
434 |
|
Total |
27,979 |
27,668 |
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 2024 was 3.62% (2023: 3.62%), which is the 15-year Spain Government Bond rate for 2023. An inflation rate of 1%-5.70% (2023: 1%-5.70%) is applied on annual basis.
Legal provision
The Group has been named a defendant in several legal actions in Spain, the outcome of which is not determinable as at 31 Martch 2024. Management has individually reviewed each case and established a provision of €0.2 million as of 31 March 2024 (€0.2 million at 31 December 2023) for these claims, which has been reflected in these unaudited condensed interim consolidated financial statements.
Other provisions
Other provisions are related with the called-up equity holdings of Atalaya Masa Valverde S.L.
18. Borrowings
|
(Euro 000's) |
31 Mar 2024 |
31 Dec 2023 |
|
Non-current borrowings |
|
|
|
Credit facilities |
13,556 |
16,131 |
|
|
13,556 |
16,131 |
|
Current borrowings |
|
|
|
Credit facilities |
36,532 |
50,556 |
|
|
36,532 |
50,556 |
The Group had credit approval for facilities totalling €125.4 million (€103.8 million at 31 December 2023). During 2023, Atalaya drew down some of its existing credit facilities to financing the construction of 50 MW solar plant (outstanding balance of €18.5 million at 31 March 2024) and in 2022 to pay the Deferred Consideration.
Borrowing with fixed interest rates range from 1.75% to 2.45% with an average fixed interest rate of 2.10%. Margins on borrowing with variable interest rates, usually 12 months EURIBOR, range from 0.95% to 2.25% with an average margin of 1.36%.
At 31 March 2024, the Group had used €50.1 million of its facilities and had undrawn facilities of €75.3 million.
19. Lease liabilities
|
(Euro 000's) |
31 Mar 2024 |
31 Dec 2023 |
|
Non-current |
|
|
|
Lease liabilities |
3,681 |
3,877 |
|
|
3,681 |
3,877 |
|
Current |
|
|
|
Lease liabilities |
487 |
501 |
|
|
487 |
501 |
Lease liabilities
The Group entered into lease arrangements for the renting of land which is subject to the adoption of all requirements of IFRS 16 Leases. The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. Depreciation expense regarding leases amounts to €0.1 million (Q1 2023: €0.6 million) for the three month period ended 31 March 2024. The land lease is set for a duration of thirteen years, with payments due at the beginning of each month, increasing annually by an average of 1.5%. As of 31 March 2024, the remaining term of this lease is nine years.
|
(Euro 000's) |
31 Mar 2024 |
31 Dec 2023 |
|
Minimum lease payments due: |
|
|
|
- Within one year |
487 |
501 |
|
- Two to five years |
1,877 |
1,928 |
|
- Over five years |
1,804 |
1,949 |
|
Present value of minimum lease payments due |
4,168 |
4,378 |
|
|
|
|
|
(Euro 000's) |
Lease liabilities |
|
|
At 1 January 2023 |
4,378 |
|
|
Interest expense |
7 |
|
|
Lease payments |
(129) |
|
|
Write-off |
(88) |
|
|
At 31 March 2024 |
4,168 |
|
|
|
|
|
|
At 31 March 2024 |
|
|
|
Non-current liabilities |
3,681 |
|
|
Current liabilities |
487 |
|
|
|
4,168 |
|
20. Acquisition, incorporation and disposal of subsidiaries
There were no acquisitions or incorporation of subsidiaries during the three month period ended 31 March 2024 and 2023.
21. Winding-up of subsidiaries
There were no operations wound up during the three month period ended 31 March 2024 and 2023.
22. Related party transactions
The following transactions were carried out with related parties:
22.1 Compensation of key management personnel
The total remuneration and fees of Directors (including Executive Directors) and other key management personnel was as follows:
|
(Euro 000's) |
Three month period ended 31 Mar 2024 |
Three month period ended 31 Mar 2023 |
|
Directors' remuneration and fees |
297 |
360 |
|
Share option-based benefits and other benefits to directors |
48 |
20 |
|
Key management personnel fees |
149 |
204 |
|
Share option-based and other benefits to key management personnel |
48 |
20 |
|
|
541 |
604 |
22.2 Share-based benefits
The directors and key management personnel have not been granted any options during the three-month period ended 31 March 2024 (Q1 2023: nil).
22.3 Transactions with related parties/shareholders
i) Transaction with shareholders
|
(Euro 000's) |
Three month period ended 31 Mar 2024 |
Three month period ended 31 Mar 2023 |
|
Trafigura Pte Ltd- Revenue from contracts (a) |
19,946 |
12,294 |
|
(Losses)/gains relating provisional pricing within sales |
(245) |
2,103 |
|
|
19,701 |
14,397 |
|
Impala Terminals Huelva S.L.U. - Port Handling and Warehousing services (b) |
(417) |
(566) |
|
Trafigura - Total revenue from contracts |
19,284 |
13,831 |
(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 2024, the Company completed 3 sales transactions under the terms of the 2015 Offtake Agreements valued at €19.7 million (Q1 2023: 5 sales valued at €14.4 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 2024, the Company completed nil spot sales (Q1 2023: nil spot sales valued at €nil) There was an adjustment of negative €1.0 million in Q1 2024 which related to QP adjustments registered in Q1 2024 relating 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.
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 2024, Impala Terminals was part of the Trafigura Group, under joint control.
ii) Period-end balances with related parties
|
(Euro 000's) |
31 Mar 2024 |
31 Dec 2023 |
|
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 2024 |
31 Dec 2023 |
|
Receivable from shareholder (Note 12) |
|
|
|
Trafigura - Debtor balance- subject to provisional pricing |
3,082 |
5,054 |
|
Trafigura - Debtor balance- at amortised cost |
21 |
- |
|
|
3,103 |
5,054 |
|
|
|
|
|
Payable from joint venture of shareholder (Note 16) |
|
|
|
Impala Terminals Huelva S.L.U. - Payable balance |
- |
(179) |
|
|
- |
(179) |
The above debtor balance arising from sales of goods and other balances bear no interest and is repayable on demand.
23. Contingent liabilities
Judicial and administrative cases
In the normal course of business, the Group may be involved in legal proceedings, claims and assessments. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Legal fees for such matters are expensed as incurred and the Group accrues for adverse outcomes as they become probable and estimable.
24. Commitments
There are no minimum exploration requirements at Proyecto Riotinto. However, the Group is obliged to pay local land taxes which currently are approximately €235,000 per year in Spain and the Group is required to maintain the Riotinto site in compliance with all applicable regulatory requirements.
In 2012, ARM entered into a 50/50 joint venture with Rumbo to evaluate and exploit the potential of the class B resources in the tailings dam and waste areas at Proyecto Riotinto (mainly residual gold and silver in the old gossan tailings). Under the joint venture agreement, ARM will be the operator of the joint venture, will reimburse Rumbo for the costs associated with the application for classification of the Class B resources and will fund the initial expenditure of a feasibility study up to a maximum of €2.0 million. Costs are then borne by the joint venture partners in accordance with their respective ownership interests.
25. Significant events
Ongoing geopolitical events are impacting the global economy, but the full implications cannot yet be predicted. Key impacts include higher and more volatile input costs and disruptions to freight and logistics. The financial consequences of these events cannot be estimated with any reasonable degree of certainty at this stage.
· On 9 February 2024, the Company issued 20,000 ordinary shares of 7.5p in the Company pursuant to an exercise of share options by a former employee.
26. Events after the Reporting Period
· Following the publication the prospectus in relation to the admission of its ordinary shares ("Ordinary Shares") to the premium listing segment of the Official List of the Financial Conduct Authority ("FCA"), which took place on 24 April 2024, Atalaya was admitted to the premium listing segment and to trading on London Stock Exchange plc's main market for listed securities (together, "Admission") on 29 April and cancelled from trading on AIM.
· On 25 April 2022, BlackRock, Inc., shareholder of the Company, decreased its voting rights from 4.07% to 4.05%, and on 26 April decreased its voting rights to 3.97%.
· On 7 May 2024, the Company issued 66,500 ordinary shares of 7.5p in the Company pursuant to an exercise of share options by non-PDMR employees.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 7 minutes ago Mortgage Advice Bureau (Holdings)
- 1 hour ago Smiths Group
- 2 hours ago Empiric Student Property
- 2 hours ago Hollywood Bowl Group
- 2 hours ago Cordel Group