Atalaya Mining Plc

Good morning, ladies and gentlemen, and welcome to the Atalaya Mining PLC Q3 Results Investor Presentation. Throughout this presentation, investors will be in listen-only mode. Questions are encouraged and can be submitted at any time via the Q&A tab situated in the right-hand corner of your screen. Simply click Q&A, scroll to the bottom, type your question, and press send. The company may not be in a position to answer every question received during the meeting itself. However, we'll review all questions submitted today and publish responses where it's appropriate to do so. These will be available via your investment company dashboard and you'll be notified once they're ready for your review. I'd also like to remind you that this presentation is being recorded. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to Cesar Sanchez, CFO and Alberto Lavandera, CEO of Atelier Mining PLC. Good morning.

Hi, good morning. Thank you very much. Ladies and gentlemen, thank you for being here and taking your time. We'll be running through the results that we had in the third quarter, which have been very good. I have with me the CFO of the company, and we will be following the presentation that we found in our webpage. Going directly into the subject of the meeting, in general, I would be kind of running through the presentation and through the past results. but at the same time trying to give a little bit of background where it's needed because we assume that there may be some investors that are right now, potential investors that right now are not shareholders. So please, those of you that know the company very well and have followed us for a long time, excuse me if we kind of repeat some of the things that are obvious. If I started with page five of our presentation where we reviewed what was the Q3, Look, in two words, and everybody can read it, but it went very well. The mill continued to, the mill expansion continued to work at full capacity, more than the nameplate. We are going to be in the range of the 54,000, 56,000 tons of copper a year, which is higher than the guidance and very likely in the high end. uh due to the good productivity the rolling costs are going to be low and of course due to the good cover prices and and good operational performance not only we are doing well but we are going to be doing well we believe enough and of course the balance sheet is improving significantly you will see that right now at the end of the quarter we had 90 million euros we are now in mid-november you can imagine that the situation has continued to improve so At the end is delivery. We said in the last presentation that there was no intention to sit in the cash. And we have delivered again and again. We have approved, the company has approved a 30% to 50% free cash flow starting in 2022. But actually, we had already a good year. And we started with our first maiden dividend of almost $0.30 per year. per pound share, which I think is a fantastic yield of over 7% and still the cash flow building up. In addition to that, we said, look, this is not a dividend company. This is a growth company. And we are starting to announce results of the drilling at Massaval Verde. It's a satellite deposit around 25 kilometers from Rio Tinto and at Majadales, which is one of our discoveries. We'll continue to do that. Well, as a result of all this good news, people are starting to know us. Liquidity has been improving quite a lot. So I think we have been trading average of half a million shares in the last few months, which is an excellent outcome if you remember when we only had less than 20% float. We have lots of institutions in our shareholders All this is important, but for us, health and safety for our employees and NSG initiatives are essential, like it should be. We continue to work well with the COVID situation. In Spain, as you know, things are well. In our company, it has not really affected us. And we continue to, we work in a mine that's sitting besides populated areas. So for us, dust control, water, It's essential, no absolutely zero discharge to the environment in water, trying to reduce the historic footprint and historic problems here. And now, finally, starting to build a solar plant at Rio Tinto to utilize our land and the fantastic sunshine that we enjoy here. What's the future? The future is we continue to prepare the 43-101 reports in our satellite deposits of Cerro Corrales and Nisio, San Antonio, also Maza Valverde, satellites I mentioned before. And those are complex copper and zinc. And one of the ways we believe we can get a better outcome of those red deposits is to produce metal directly. This is our helix system. For those of you that don't know it, it's something totally new in the world, which will produce metal directly. But most important, it gets a very high recovery of these complex ores. We do have another project in Galicia. It's called Touro. We continue with the permitting process. We are very careful. We are doing things the right way with lots of communication and stating the facts. We know that the people, I don't think they're against us. I think people are not well informed. but we simply deliver deliver show what we are doing right and what we can do and we will talk a little bit about that also if i go if i go to to page six and going directly to the results i mean strong copper production you will see in the in the in the graph how copper production has been going up steadily in the last years recovery recovery picking up from the small downs that we had when we connected the two expansions. For those of you that do not know the company, this project has been built in a very short period of time with half of the capex that was expected and has been delivering since 2015 after being over almost 17 years stopped. It has been built in three phases. and right now we have already been operating during the last three quarters with expanded well over the name plate capacity and of course these results in a steady copper production in the range of 50 to 55 000 tons on a live basis in a moment where the copper prices we are enjoying very good copper prices as a result of all that you will see in slide seven that of course our revenues have gone up to basically almost 100 million euros per quarter. So we are talking about analyzed 400 million euros per quarter, which is a good sales. Importantly is EBITDA. Now you can see our efforts of building this expansion that are becoming evident and we have generated significant EBITDA in this last three quarters. which basically take us to an analyzed number of around 200 million EBITDA, which is a fantastic result. But the most important thing and most spectacular is the cash flow generation. I mean, I know people were questioning in the past about if this company was going to generate cash. Well, it's becoming evident now. Then since in the lower part of that graph, if you see what was our negative working capital position when we basically built the plant and built the installations with using our own working capital and minimal dilution from the shareholders. Remember that back in 2019, we only raised less than half of the shares that we needed. Since then, we have been delivering, we constructed the installation and since then, even with lower cover prices, producing nice excess cash flows. As we sit right now, we sit in a fantastic cash position, which can be seen in the next slide eight. So right now, our cash at the end of this quarter was almost 145 million euros. Since we have some debt of 52, which was used to pay the historic liability of Aster, which we also got rid of. We are sitting in almost 90 million euros. We were sitting in 90 million euros in the last quarter, one month and a half ago. But as you can see, the working capital surplus that was 17 last year and now 126 means that we have improved the balance sheet in the last nine months by 100 million euros, which is a very significant outcome. And that's including the fact that we use a contractor. So the contractor has always the higher costs of capital due to them replacing the equipment, but also the fact that we continue doing some investments in tailings thickening, as you can see in the lower part of the picture, in some optimizations of the plant that has given us better recoveries, in expanded tailings facility for the future, and so on so even so we have been able to generate this this excess cash well and this has resulted in the in uh announcing the dividend in the 27th of october most of you that are shareholders will have seen the results and and it's a first dividend so it has had some hiccups and some issues of of the distribution list and so on but we are overcoming all that uh the time of payment is arriving and this is uh and his team is doing a fantastic job to get all this thing done. And hopefully in less than 15 days, you will be receiving those of you who are shareholders, the money in the bank. Somebody asked me, will this be the last one? Well, we don't know. We have said that we will issue between 30 and 50% of the free cash flow generated. to our shareholders, leaving some room for expansion, for future, for growth. Well, things are going well. If the prices of copper continue to be good, maybe the board can decide to top up a little bit. But as I say, we always deliver in our promises. So certainly we are not going to... We have been very disciplined with the capex in the past with the cash. thing is not going to change so the cash is not going to be sitting or balancing forever so yes we are a dividend player now uh for a surprise of many but this is not about dividends this is about growth we have a mission the first get into production routine to then expand routine to then what's beyond that well we have a very good land position which is shown in colors in the screen. It's a quite significant land package where we have a centralized mill and we are doing some exploration in the east. It's shown in green and in orange. And southwest, we have another area called Valverde, 29 kilometers joined by a public road where we are doing significant exploration. In blue, You will see the land holdings of Matza, recently acquired by Sunfire. And I may compare with what are the resources based on public information of what they have and what we have. So we can start, people can start seeing that actually the copper resources that we have in federal Colorado, our current mine, the one that's producing cashflow, are only the tip of the iceberg and we are going to be growing. So if I may expand a little bit, what we have, for those of you that do not know the company, it's an open pit. It's shown in red. Between around 2.4 kilometers long. And east and west, which is right and left in the picture, we have two deposits which are historic, are well-known. One of them is called San Antonio. It's underground. Good grades, good combined grades with lots of lead sink also. And at the left side on the Onisio, which where we have envisioned several scenarios of open pit on the ground, it's a combination. There is already an open pit. We're thinking in expanding that and mine the remnant on the ground. It will all depends on the economics. Also contains copper, copper and zinc. So those will be treated in the same plant that we have. Here's a picture where you can see the location of our installations in our plant, which is a 15 million tons per year name plate. but the reality is 16 million tons. At the left lower part is the Corta Atalaya pit, which we plan to expand. And in the bottom right is our existing pit, where we have a mine life of over 10 years. But this is a very prolific belt. In slide 14, you will see our mineral rights. with the existing mines. You will see that there are several existing mines already. Las Cruces of First Quantum, the three mines of Matza, Sunfire now, and further to the west, we'll have two other mines, Almina and Neves Corvo in Portugal. It's a very prolific belt. Because it's a very prolific belt, the first thing we did is we got two years ago in Massa Valverde, and where it was drilled, we had an option where Typically of us, we just work and we didn't announce anything until we got it. But we did discover a deposit called Majadales, which is shown in the right side of the picture. There we have put a few holes. And the last one we have announced has significant copper values with zinc and lead and silver. About one and a half kilometers to the west is the main Maza Valverde deposit, where we have two rigs right now. because the distance between those holes is very wide. So it's quite open and it's a significant deposit. We are preparing the 43-101, but at the same time, we're starting to release the fantastic outcomes of this deposit. It contains some sink areas, but it also contains some copper-only areas. The copper-only areas could be sent by road directly through a ramp to our installations at Rio Tinto. So we wouldn't need any specific plant there. And that's exactly what Matza does, trucking ore from the Sotiel mine, which is just five kilometers north of this one, trucks it to the mine north at Aguas Teridas, at Matza. If you look in a flat view, this is a kind of... Imagine this is a kind of... long deposit of one kilometer long, very thick, about 200 meters. It can be seen that it sits between 400 meters to 600 meters to 700 meters of depth. It's open in all those directions that are shown in arrows. It's a significant size deposit, and it shows that the area has a lot of potential. In pink or kind of purple, the sink areas, in copper, the copper areas. You can see that there are some copper-only areas that are not polymetallic. We are very excited about that. And what can be the effect of this? Well, somebody asked us, what would the effect be if you could bring a little bit of this copper into your installation? Can you produce more from Rio Tinto? Well, yes, we can. Of course, it depends on what you bring in. You can bring some areas from, let's say, 0.7% San Dionisio which if you only added, let's say, 1 million tons, you would add 3,000 tons more of copper to our current production. If you added 4 million tons, you would add 11,000 tons of copper. Of course, you can also bring some underground, like at a 2% from Massaval Verde, and if you added, let's say, 1 million tons, which is a very small amount, that will bring 14,000 tons of copper additional. So, we do have a good potential of growth just in our satellites without making any significant amount of expansions at our site. That with Tauro on a 100% basis will get us basically close to 100,000 tons of copper produced in a stable country like Spain. So that's more or less our growth. And people ask us, I mean, oh, We didn't know there was copper in Spain. Well, there is lots of copper in Spain. It used to be storage. That's where Rio Tinto mining started. And Mazza, the deal of Mazza that has been bought by Sunfire for 1.9 billion, I think has helped to put the pirate belt in context in the map. Mazza has, you will see that table in slide 18, a plant of 4.7 million tons per year, fantastic plant. And we have 15 million tons, basically 16 million. they have an enterprise value of 1.8 million based on the purchase price. And we have a 650 million. But when you start looking at production and figures and copper reserves and resources, and all this is based on the public disclosure of the transaction by Sunfire, you realize that actually we have probably higher resource life. We have higher reserves and we have higher copper equivalent resources. So it doesn't mean they are wrong. What it means is probably we are wrong, which is really low. In addition to that, of course, we are trading at less than three times enterprise value EBITDA versus a transaction of MATSA for almost five times. And also the much lower enterprise value per ton of reserves and resources. That means basically how do you value your company compared to the metal that you have in your inventory. So we are probably trading between 160% to 250% less than what they had. Of course, the Mazza deal is a fantastic deal, good grades, but also shows you that the potential of growth of our company is totally not known in the market and it's not well understood. So I want to emphasize that, that basically we are a growth company, not only a dividend. Let me talk a little bit about ESG. I mean, for us, this is essential. It's all about people. We have a fantastic team that has been able to do all this in this last few years. For us, governance is important. We have a board that is independent. We only have two persons representing the shareholders, but we have independent board members, charters, and so on. We are a company that is not shown there, but certified ISO 9000 in quality, 14,000 in safety, sorry, in environmental, 18,000 in environmental safety. We have also signed the protocol of the United Nations. We're one of the few companies of the mining world that has signed that. And that means adhering and really being consistent and transparent with all of our our initiatives. All these initiatives are going to be recorded in an ESG report that's been prepared and will be published soon, certainly before the end of the year. And of course, since then, we are going to continue every year. For us, the pillars are environmental and climate change and try to reduce our carbon footprint. Essential on that is the ELEC system. Essential on that is the recycling of water, tailings thickening, zero discharge, and so on. Keeping society, we have to be good neighbor. The place where we're operating is Rio Tinto. We are surrounded by seven communities, some of them villages only sitting a few hundred meters from the pit. And although we are probably not very well known in the total project by some, let's say, communities, the reality is that we are very welcome and good neighbors at Atalaya, at Rio Tinto. We have most of the suppliers are local. All of our employees are local with jobs long-term with training of local people, the local workforce. We are a company that's 100% Spanish operators and employees. A few from outside of which are historic and Spanish residents for some time. But something that we believe that we have to be good neighbors for the long-term. In addition to that, we believe in the research and development. We believe in the future. And that's why we have been working with this LX system, which is sponsoring some people, some person that has discovered something that can change the world to produce directly metal. And we have been working with this already for five years. And we believe this is going to be something announced very soon. Besides that, it's incredible the amount of technology one mine has. If you're not familiar with mines, it's not really a quarry by itself. It's just an excavation. It's controlling where each truck goes, where each machine goes. There's over 800 motors working at any time with 1,500 control points and around 20,000 signals at every given moment all controlled from control rooms almost and more actually that you would find in a passenger plane that's the type of complexity that's where sometimes we feel a little bit how can I say that we are not transmitting that because when people doubt that we are going to be doing things right for example in a total project not being able to control tailings or control control our discharge the river well if we are doing it right now if we are using satellite controls to control any movement including day and night i mean being in the in the first class why wouldn't we do it in these new projects so eventually it's a problem of of transmission it's a problem of education we will we'll get there So those are the pillars that we have in ESG. So in conclusion, I used to say that we don't want to give surprises. I mean, I'm very proud of the team that they tell us the wrong things soon so we can correct them. We have always been guiding what we are going to be doing. First, a few years ago was to reduce the capital costs. increase the production expand and always always we have been delivering against the odds of lots of people and and so the targets that we had in 21 like reducing increasing the production in safety growth options some sustainability disclosure and so on both have everything has been done or is in track so The last one was giving back dividends. Near term, we will continue with growth projects, basically concentrating on our land. But we don't care to look at the future in other places. We continue to work with the increased liquidity of the shares. And I think that's improving a lot. And you have probably seen that six institutions, six brokers are now covering our company. That's a signal. of the interests of this company, all of them with very good, nice targets. And I think people are starting to realize that we are a serious company. One of the things we are doing, we said, is how can we re-domicile our parent company to the UK? And there are a few questions that we will answer about this. We are working on that. Long term, what are we going to be doing? Well, have a little bit, not have all the eggs in the same basket, become a multi-asset producer. Obviously, TOTO is our first goal, but if that one gets delayed, well, we will continue, insist and be patient, but we have other growth options in the south part of Spain, and even we are going to be looking at other parts of Spain and the rest of the world. We probably will be exposing ourselves to other commodities if it's an opportunity. And one important thing strategic is to move to the main market. I mean, I know we inherited the situation with AIM. Okay, we have gone, made a lot of changes, but the end game will be to move the main market, which provides more liquidity, more visibility. And we are working on that. i we say the right time but you all know that when we say the right time it's it's not going to be it's not going to take long so look um in the presentation besides uh besides what i just mentioned you will see uh the register summary of the registers and the recommendations of of shareholders uh how are we compared with peers i mean compared in with in production ratios and so on how How are we in costs, in all in sustaining costs? You would see that in page 29. And you also see a summary of the reserves and you will also see a little bit of total and ELIX. But that's for any of you that want more details. In any case, I think the best thing is to get into the answering the questions that have been submitted. We have had lots of questions and they have been kindly summarized into groups so that we try not to leave any question unanswered. So with that, I will open it back to the moderator.

Fantastic. That's wonderful, Alberto. Thank you so much. Thank you, César, as well for the presentation. Ladies and gentlemen, as Alberto said, we have had a number of questions, so please do continue to submit them just by clicking on the Q&A tab situated in the top right-hand corner of the screen. Just while the team take a few moments to review those investor questions submitted already, I'd like to remind you that recording of the presentation along with a copy of the slides and the published Q&A can be accessed via your investor dashboard on the InvestorMeet company platform. I'd also like to remind you that your feedback is important to the company. immediately after the presentation has ended you'll be redirected for the opportunity to provide your feedback in order that the company can better understand your views and expectations says alberto as you as you uh did state we've had a number of questions both pre-submitted and during today's live event and perhaps if i could start the q a session off of the first question which relates to elix and it comes in four parts um which i'll read out all four and if you want to repeat them as you go and do let me know it reads as follows how much will it cost to build a full-scale plant How long do you expect it will take to build the full-scale plant? And have you applied for any EU environmental initiative grants to support the cost of building the plant? If so, could that reduce the cost? How much could that reduce the cost by? And when we'll hear if that application is successful. And the final part, does ELIX technology help to increase Atalaya's reserve and resources? If so, can you quantify that for us? I appreciate four parts of that. And if you want me to repeat any, just please say.

No, I have them printed. Thank you very much. It's a complex question and some of the numbers are difficult to respond, but in general, yes. Look, the cost of building depends a lot on what is the final end product. Do you want cathodes of copper that are LME or do you want cathodes of copper that are not LME but you will get paid 100% but not with a premium? Do you want pure cathodes of zinc or do you want, yes, zinc 99.9%? The difference between the capes of one or the other is does it contain or not the SX section, the solvent extraction section. The LX system is an electrochemical system where it dissolves the sulfites in such a way that reduces the dissolution of some things that are not needed, like iron, for example. And once you have that dissolved, you have several ways. We used to have a saying, expression in Spain that problem dissolved, problem solved, which means that basically once you put the sulfides into solution, you can recover the metals that are there. You can recover the metals in two ways, by precipitation or that can be followed by electrolytical metal disposal or directly with electrolytical. Depends on that, we will have the cost of capes will be higher. The capex has been calculated around between $5,000 and $6,000 per ton of copper produced in general. I mean, it depends on the quality. It could go up to $7,000. It depends on the place. That's if it's built here in Rio Tinto, where we have a big infrastructure. If it was in some other place, it would be higher or lower. It depends on the electrical situation, the land, and so on. How long does it take? It will take the first plant. We are probably going to be going through one line. It will take us around one year, not much more. The main question here are the electrolytic parts, which have some delivery times. The rest is the tanks and so on. Tanks, pipes and siebel are not that complex. Of course, there's lots of pipes and controls. So basically in one year from now, before the end of the next year, we will be having something very likely in operation that will show us how it works. Have you applied for any EU environmental incentives? Well, not specifically ourselves, but we have been put within a group of initiative that has been leadered by Atlantic Copper, which is a smelter owned by Freeport, where they put almost, I would say, almost a couple of billion, I think it was, of initiatives that have to be initiatives that are multi-regional, multi-companies. So we were part of that. They were put in a refinery to recover scrap. We were put in part of the LX and we were put in other initiatives. So we have put a lump sum there for this, but not formally applied for nothing. This is basically to make sure that there is some money allocated when the European Union spreads this once this is in operation and we will it's important to say that we are going to be doing something with alex regardless that helps we have been investing a significant amount of money in the last six years we have done this with our cash flow without any help at all and normally without the minimum public release within in secret because this is so important So we will do it regardless the grants. If the grants are there, fantastic. How much it will reduce the cost? Well, we don't know. If we get the grants, that would be fantastic. Does this technology help to increase the reserves and resources? Well, look, what this technology does is because it's leaching, you don't need to separate the particles in pieces. Imagine a particle that has two millimeters, is two millimeters, and half of it is a zinc metal, the other half, is iron, the other half is copper. Well, you don't need to grind that and separate each of the small particles to be able to float them, which is the conventional route. You can break them in such a way that you can dissolve them. This means that you get better recovery in what you have. I mean, it means that things that were probably before were not economic may become economic. So I think that's the way it will happen. For example, A good example will be the Maza Valverde-Majadales deposit or the San Antonio deposit. All of these have copper-lead sink. If we went through the conventional route, which is the one, for example, applied by Matza, you use flotation and you may have a recovery, let's say, of around 75% of copper, around 75% of sink. if you use the leaching system what you do is you have a global recovery of 90 to produce a bulk concentrate so a global concentrate a dirty concentrate and once you have that you leach it you leach it you dissolve it and basically this is able to dissolve 95 of that dissolution what does it mean that where you get the added value is getting higher recovery of a single ton that contains x metals This is important because then what matters is that you have to extract the ton from the ground. You have to grind it anyway. You have to extract it anyway. So the more you get, it makes it more economic. And of course, it increases the reserves by being able to treat tons that otherwise will be marginal unless the metals were higher. I hope this is understood, but it's a fantastic opportunity for us, we believe.

Fantastic. Thank you, Alberto. The second question, the theme around here is the solar plant. A couple of questions around it, really. How much will it cost you to build? What is the latest approximation of when the solar plant will be operational? Are there any grants to support this green initiative? And how does a 30% electricity cost reduction impact overall costs?

The plan, we are basically almost about to receive the final permit, which is in our ground, our land. It will cost between 25 and 28 million euros. Those are the offers that we have right now. We will be building this, we're already doing some civil work. It will be, as soon as we award it, it will be less than one year, normally around 10 months. to connect it. We have not requested for any grants because the grants are excluded from certain sizes. At least in Spain, you only get grants for up to X amount of kilowatts and we are over that. So I am not aware of any grants where we can apply this, but we will do it regardless because it's responsible and because it's also a good thing for us. The cost reduction of 30% comes basically as a matter of reducing the cost during the daytime. In our case right now, for you to make the numbers, obviously the reduction depends on the price of electricity. The current price of electricity up to December is around 6 cents per kilowatt hour. But you all know that in Europe and in Spain specifically, the prices of power are getting crazy due to the high prices of gas and lots of other reasons. So we expect next year the cost will be higher. So the savings will be higher. Right now, in our cost structure, around 15% of the costs are power. So if we can save a big amount of that, that's the amount we can reduce it. So it won't be a huge thing. It will not be a deal breaker, but certainly will help to mitigate one of our higher cost initiatives.

Fantastic. Thank you, Alberto. Next question we've got around dividend. Thank you very much for the dividend. Very pleased. This question may have been asked, but going forward, can we look to simplify dividend payment in consideration of superior tax rules?

Maybe the person that has suffered this pain

For the inaugural dividend we requested a tax form to be completed by all shareholders to avoid any withholding on the Cypriot tax. I mean, unfortunately, that was the instruction that we have been given by the tax office in Cyprus. We're still in discussions with the tax office to ensure we don't have to withhold the dividend in the next payment that we're going to be doing on the 1st of March. So that's the situation now. We're currently having that sort of discussion with the tax office. So for 2022, so for next year, we have looked at all the precedents in the country to ensure that we simplify the process as much as we can. And we also provide the documentation in advance to the tax office to ensure that they understand that we don't have any tax residents in our register and we hopefully can get some exemptions. So that's the idea. So we still need to, but that is interesting, need to be agreed. And that's something that we're going to be starting to work on early next year. Just taking advantage that we're speaking about dividend, I can also see that If we have been, we will be paying a dividend for Q4 2021, so there is no plan to do it now, so for now, but obviously it will depend on the cash generation of the company during the last quarter, which is actually quite good, as I have to mention, it's continued building up. But this is also that we also need to look at the cash requirement that we will have for the growth project. that we have in the pipeline. So that's the current situation now for the tax and for the dividend in Q4 2021. That's wonderful.

Thank you, Cesar. The next question we've got here relates to domiciled in Cyprus. What advantage are there of being domiciled in Cyprus? This is the legacy of our former CEO. I seem to remember it may give us some anti-takeover protection, which does have value. Is it an alternative to Cyprus and would it bring any advantage to change?

Yeah, well, certainly something that we inherited. Probably we would be establishing the company now, we would select another location to be based or holding company. But we did have, for sure, several internal discussions to evaluate if Cyprus is the right place. I mean, the country has offered many advantages to Atalaya historically. such as the anti-takeover protection that was mentioned in the question. However, we have to look at Atalaya in the current context and how are we currently working and we are currently working to migrate the holding company to the UK as we think that that's the better fit that we have for the current situation for Atalaya. So, we currently have a company listed in the UK that needs to be obviously in compliance with the regulation within the financial markets in the UK. We have an operation in Spain and we have a holding company which is based in Cyprus and needs to be in fulfilment with a company's hat in Cyprus. So that requires a bit of complexity when we have AGMs, when we have EGMs, when we have any sort of transactions. So this is why we think that moving to the UK, it will fit better the company as it is now, as we don't need the protection that we used to have when we were a smaller company, a junior company.

Just an extension of the next question being really how long is that process expected to take and what are the timescales around it, Cesar?

Yeah, well, we have started already the process that takes a little bit of time. So we have analysed what the steps that we need to take as it's not possible at the domiciliation as such. So we actually need to establish a new group in the UK and this new group will need to acquire all the shares of the sitting holding company in Cyprus. So this is something that actually means that we have to delist the company and then start the process to IPO. the new UK entity, and that will require some time, and it will also require the approval of the shareholder. I mean, being said that, in terms of timing, we have currently working on the tax, and we have completed some of the tax analysis, and that's good. We are also looking into all the legal implications of them. of the new core in the UK. And we are finalising also all the accounting and all the implications of the migration. But in terms of the timing for the process, we are working on it and I believe I'm confident that we will be completing the process in 2022. But it is a little bit of time to go through everything.

Fantastic, Cesar. Thank you so much. Next question reads as follows. What's Satellite doing to enhance trading liquidity? And I know Alberto, you did pick up on this as we went through the presentation. But if there's anything further to add, please.

Well, I think the main thing is getting on the road, doing lots of presentations and introducing as much as possible to as many shareholders as possible. Because we believe we are undervalued. but they have been shareholders that have come in earlier and they may want to take some profits out and they are more conservative or have different views in copper price or different views in the economy in the world. And that is what creates some happy sellers and some happy buyers. Right now, that's what we are doing. We have a significant float now. We have institutions except the two big shareholders that control 44.4% of the company, which I have to say that at a certain time they would also be sellers, who knows. But it's in the hands of institutions that in the right time they will be taking their profits or not and bringing in new shareholders. We're quite happy how things are going and we see volumes pick up every day. and getting hundreds of thousands of shares every day which means millions of pounds which is good for for everybody fantastic thank you alberto next question is in toro have you submitted revised environmental plan as you'd envisage by the end of q3 if revised plans have been submitted what was the agenda's initial reaction to the new plans well we we have not submitted an environmental plan and really what we will be submitting is a new project a new design which basically is almost finalized. But we want to make sure that everything is absolutely correct. It has not been submitted and it's almost ready. So there's no reaction of the Junta. But what we're doing is making sure that we tick all the boxes and has absolutely no possibility of failure from the technical environmental point of view. The initiatives that we're taking have already been flagged by us. which is first of all is increase this factor of safety of the tailings. Second is remove the water from the tailings, which means if there's no water, there's no possibility of having any catastrophic failure. Third is making sure there's no water discharge whatsoever in the rivers, in the creeks. Another one we are doing is we will take care of the past liabilities. of the legacy liabilities, which are not our problem, but we are consistent. We know that we will have to do it and make sure that we do it correctly because this is the way to have a long-term operation. And besides that, there are other initiatives of, for example, thickening the tailings, recovery of water, not taking any water from the river, just using the water from the rain, which we believe it's enough. So plastic line tailings that was already designed. So basically increase, increase safety, reduce the risk to basically zero and demonstrate that and also be transparent with our project and with all the groups, including the groups that are against it, which may be truly against the project or maybe sometimes we have to be careful if they are not political using this as a political flag but we don't want to get into politics we want to do things right because we want to be a long-term uh long-term neighbor that's going to be there for a long time so it would be stupid to do it wrong and then then have to stop because the rules in Spain uh regardless of what people may think are very strict, very strict, and we do not want to fail. And we'll do whatever is needed from the technical point of view to make sure this is done in the right way, and this is a model of quality that we can mirror ourselves. I have to say, by the way, that I am from that area. My father... mother from that area. I have uncles and cousins living in the place where I live. My sister lives there. By no means I'm going to allow any of my team to do things that are not perfect because this is a bit beyond what's an investment. So we are sure we are going to do it right. And we are trying to transmit that to the Junta.

Fantastic. Thank you very much indeed. The next question reads, I hear that San Rafael has asked for authorization to build two water treatment plants at a cost of 1.3 million euros. Has this been accepted by the Zunta Galacia as part of the targeted action by Atelier and partners to bring older mining activity into line with current good practices, or is it a separate non-contingent or part of the new EIA?

This is a very interesting company, which comes, obviously, for somebody that knows the place, because these names, Pucheiras and Portapego, are small creeks that run through the property. And I'm very happy to first explain what it is to the audience, to the general public, and also explain to the listeners of this, which I'm sure they come from local communities or the local authorities or whatever. First of all, there is a small problem. There is a problem, historic problem. A problem that is not part of Atalaya. Atalaya is part of San Rafael. San Rafael is the new company where we have the local partner, which is the owner of Mineral Rights and us. We are providing all the costs. We are providing all the technology and they are kind of passive shareholders. It's not even the responsibility of the old people that took that company. and took that land. We are talking about rainwater that infiltrates through the old tailings and comes out as slightly acidic, but not in a big amount. We are talking about three liters per second. Okay, this is historic and actually corresponds to the mine operators, which were closed in 1987, but it's there. this fact that does not belong to us and does not belong to to even the the existing owners of a property has been used to attack us and to say well if this is wrong uh look we we shouldn't allow the new new thing why this is not correct it's not correct because uh we're going to be using plastic lining if if the owners in 87 had used plastic lining this would not be happening This is clean water gets into contact and acidifies. Let's quantify what's going to these rivers, Pucheiras and Porto Pego. It's around three liters per second, which I don't know exactly how much is in cubic meters per year, but it's not much. It does not contain specific metals. It contains iron. But to put it in context, when we arrived in Rio Tinto, we had one pit that was flooded with 4 million cubic meters of acid water, much worse than this. We have treated 4 million cubic meters of water with its cost and used that water with absolutely zero discharge. We have done it in Rio Tinto. Why wouldn't we do it in this place? So going to the question, San Rafael, which is the local company, has asked for authorization to build water treatment plants. There's a problem there. And we said, you know what? Let's solve the problem regardless of the new project. So this problem, we want to resolve it. We as a company, as a responsible neighbor, we want to resolve it. And if it costs us this million and later we don't get the authorization of the new project, so be it. It will be irresponsible because we have shown that we can do it. We want to show that if things are done right, it can be sorted out. So it will be like somebody picking up garbage that's in the street and throwing it to the garbage can, even if they have not thrown the garbage. We are responsible neighbor and we are going to do it. Has been this accepted by the Junta? Not yet. And it's a funny situation because those that are opposing the project are also opposing us to fix that. And the reason is very simple. They want to use this as a flag because if there's a picture to be shown, there will always be something to show. If it's fixed, it won't be any problem. But we hope we can find a legal solution where basically a problem is sorted out and it can be shown for the future that the same way that cars have changed in 25 years, the same way that in the past 25 years ago, all the villages and towns were throwing their sewage into the rivers, and this is not done anymore. I think we should understand that today technology allow us to do things in the right way, not only because we want to do it, which we want, also because there's laws and laws that we are going to fulfill simply because we're responsible, simply because we are acting for our shareholders, and our shareholders are asking us to do things right. Otherwise, they wouldn't invest in this company, started by me. So I know it's a long response. I hope my message is clear. Atalaya is a serious company formed by people from the local that want to do things right and want to do things in the long term and they're not scared of spending money to do things right, like it had been done in Rio Tinto. And that's the way things are going to be done in total. I'm glad that this thing is asked to let it very clear. We want to do things right, regardless of the outcome of the EIA. With EIA for you is basically the environment impact assessment that's going to be, again, tested in the new process.

Thank you very much, Alberto. The next one reads, ESG investing. The trend is to favor those listed companies who are meeting carbon footprint targets. Given you're investing in a solar electricity farm combined with other efficiency measures will probably improve attilized carbon footprint relative to those other miners and potentially tracked investment. Will you be investigating what agencies to work with so you can join and get green credentials and communicate that to the investment community?

Yes, we're working on that already and we're first working with somebody specialized in the world to provide us with a good ESG report, transparent report for our past activities. Very much like we have done in Inspiration, we do much more things that we announce because we believe things have been done right. Not so much of saying them, but we do them right. But yes, we are working on that and we will be a foreign part as an example company of those initiatives. The solar plant, we started this already two years ago and when this ESG theme was not so popular, so much in fashion and we do that because we believe it's the right way to do it. But yes, we are working with that and we have had lots of people coming in and asking us about the way we work because they may be interested in companies that are serious and do things in the right way.

Fantastic. Thank you very much. I'm just conscious we are coming up to towards the hour. We have covered off a number of investors questions. If I just may ask you both just to click on that Q&A tab and just have a final scan through, just if there are any other questions you would like to respond to. If you could read them out, give your response.

I can read them. ELEX is expected to be completed, I think we mentioned, in one year from when we decide, which will be quite soon. Interesting, this one. How optimistic are you in cover price and impact on your business? we are optimistic we have been optimistic already for years and the reason is very simple uh building projects as we have seen in toro i have seen as we have seen in rio tinto is not easy and if it's not easy here imagine how easy it is to to build them in places where there's lots of deposits like in in the andes indonesia and africa so building new copper is not easy the other hand there is demand for the green wave for demand for the electrification demand for meeting our carbon targets in the worldwide so it's not only china is the whole world needing these green initiatives which means new copper so higher demand low supply we believe copper price is going to stay low higher for longer and besides small hiccups the new norm will be in the four and upwards dollars per pound. How do you expect the, do you expect the limit higher unit mining cost in Q3 to persist in Q4 and going to 2022? Unfortunately, yes. Diesel prices has an influence and diesel price is high, as you know. Until the diesel goes down, we will see it. The truth is that this is being compensated by the, by the copper price because also copper goes up. But yes, unfortunately the energy is important worldwide and we will have to bite the bullet and this is what it is. We are trying to do as much as we can by reducing the consumptions but unfortunately the world is in a difficult situation. Another interesting one is how do you see copper demand and supply balance? I spoke a little bit Peruvian and Chile political situation. What can you expect in terms of production and costs? M&A sizable opportunities in Spain and abroad? Terms of stocks change? Look, I mentioned about Peru and Chile. In general, the situation is very complicated everywhere. Peru and Chile are the first and second producers of the world. Chile alone produces more than one-fourth of the production of the world and things are not getting easy. With the cover prices high, also there will be higher demand from unions, from people, from taxes. Things are not easy. Peru will have Castillo there, which has their own, his own view. It will not make it easy also to invest in new companies. So this thing is going to hurt supply. Production into 22 and only in sustaining costs. We have flagged already What's going to happen in the last quarter? Well, we believe the 2022 will be similar in production. I think oil and sustainable costs will be higher because of the terms of inflation. I mean, diesel will be higher, price of steel will be higher, explosives very likely to be higher. So, yes, it will be higher worldwide. And whoever says the contrary is probably lying because the reality is that we are seeing inflation all over the world. M&A and opportunities in size. Well, we are very, very focused, very concentrated in Spain and Europe in sizes. We are not going to be behind the big billion that can kill our company. We'll look at things that make sense and that can create value like we have done in the past. Metals in general, copper, but we will also happy with base metals, which will be in high supply. The liquidity has increased, that's not a question, that's good. People asked us if the tax is going to be paid without a deduction. In theory, we should deduct taxes for those that are resident in Cyprus. I think none of our shareholders have been identified as Cyprus residents. I think we are working with the tax authorities of Cyprus to prove that really we don't need to do it because they are domiciled in the UK or in Spain or in Canada or wherever. So that's the way we are working. We will be the best in class if we do ELEX and solar. I think I agree 100% with this comment. When does the market agreement end with Astor? Unfortunately, it still has to go for quite a while. It's capped at, I think it's 43 million and we are very close to that. You will probably see that we are paying less. So he's a happy receiver of this money, but it has an end like everything. We just consumed one hour and three minutes.

Thank you very much. You've been fantastic, Alberto. Thank you, Cesar. Thank you so much for answering every single question that we've had come through. I'm sure it's greatly appreciated by the attendees. Alberto, just before we redirect the attendees to give you some feedback, if I could just ask you just perhaps for a few closing comments before we get you out of the way.

Well, yes. Look, I would just like, again, first of all, the existential holders to be patient. Those that have been time with us, I mean, we have delivered on our promises. We work hard. We have a very good team. Very proud of being in Atalaya. And we thank them a lot for their support. It has been hard times. For those in the future, think of this company. We are a serious company that we always, we don't over promise, we deliver. So think of it. We don't, we think we are a good company. That's all. I mean, I've said that before. Those who have jumped in the train are happy riders. And there's still some time for the train to leave. And again, thank you very much.

Fantastic. Alberto Cesar, thank you so much for updating investors today. Please ask investors not to close the session as you'll be automatically redirected for the opportunity to provide your feedback in order that the management team can better understand your views and expectations. This will only take a few moments to complete and is greatly valued by the company. On behalf of the management team of Atalaya Mining PLC, we'd like to thank you for attending today's presentation. That now concludes today's session. Thank you and good morning. Thank you very much.