Atalaya Mining Plc

Good afternoon and welcome to the Atalaya Mining PLC 2022 Annual Results Investor Presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I would like to submit the following poll. I would now like to hand you over to CEO Alberto Lavandera. Good afternoon, sir.

Good afternoon. Thanks, everybody, for taking the time to be with us. I'm going to go through the presentation, just reviewing the results of last year, especially the last quarter. It's been a quite challenging year, but we look forward to have a much better year this year. With me, while you read this forward-looking statements, I have Tessa Sanchez that can probably answer some questions if they come in relation to numbers that are not shown in the presentation. And I'll go directly to the presentation itself, trying to follow what we have been doing. and if possible i will and we have time i will i will reply to as usual to any and all of the questions to summarize and i don't want to to be reading the whole thing but and you have it you have probably seen the presentation but we produce around 52 000 tons of copper with cash costs all in 337. remember that we we always post We always post all-in costs to give a realistic view of the reality of the company. These costs were higher due to high inflation, as you all know, lower production during Q1, and higher electricity prices. Q4 was much better. Production itself was quite good all over the year, quite normal, except this small hiccup in the third quarter, in the first quarter, which was due to a strike in the Spanish transport system. Company, despite the challenges generated and a bid of 55 million euros, this is substantially lower than previous year. and a big amount of that was due to to 64 million extra costs of the electricity and of course lower copper prices in relation to in relation to the previous year we did invest in elix we started investing in elix we started investing in a solar plant using loans from local banks But we ended up having a quite neat balance sheet with a net cash position of 53 million for our second consecutive year. And we were ready to pay, we paid a small dividend even difficulties in September, and we plan to pay a small dividend also that has been decided by the board. Well, it needs to be approved by the shareholders later this year. Liquidity has improved. The company is in a much better position. We've completed the ASTOR litigation and we streamlined the shareholder register with additional shareholders, having only one large shareholder right now in our year register. So it has been quite a good year overall. Besides that, we have been continuing to work with our expansion projects, our growth projects, both in Rio Tinto and our satellites. Actually, we announced the results of the PA, and I will speak about that later last month, in the satellites around Rio Tinto. And of course, we changed a little bit our board, which is now composed by only one shareholder representing a large shareholder one board member i mean and the rest including me are independent board members of course i'm part of the management but other than that it's i would say it's one of the most independent board that you can find in industry Looking at what we did the last quarter. Last quarter finally was a good quarter, non-event. Production-wise, the plant treated the tons as per design, which meant that we treated around 4 million tons during the quarter, which is equivalent to around 16 million tons per year, which is higher than the the design rate of 15 million tons per year with good recoveries, 86.2, which is slightly lower than our previous year, but very well within the last few quarters. And the only small weak point was, as I said, the first quarter where we didn't produce as much as we wanted due to a strike in the Spanish system. Looking at the financials, sales were back to normal with more production and slightly better corporate rates. And since the electricity prices went lower, were better, not as bad as the previous three quarters. We generated a positive EBITDA back from a negative EBITDA position in the third quarter. And our net cash position remained strong besides the fact that we were investing in lots of initiatives as the Helix and the solar plant and few other things at Rio Tinto. um the balance sheet as i said remained uh strong and uh i think the the key point here to highlight is at the end of the year we had a working capital of 84 million euros slightly lower than previous year but still very strong very strong in spite of the high energy prices higher cost in general higher inflation and the investments that we've been doing, which are counted to around 53 million during the year. Inflation was the key point. I've spoke about this several times. Inflation was the key point. And you can see that the key components of our operating costs are explosives, diesel tires, electricity, steel bolts, and lime. And compared to what we had in 2020 and 2021, which is referenced with 100, you will see that explosives basically doubled, diesel more than doubled, tires 50% higher, steel balls 50% higher, lime almost doubled, but electricity in the first part of the year was multiplied basically by four and by five. Anyway, the good news here is the future. The future is that electricity, we have seen electricity going down, as it's shown in the bottom part of the graph, steadily. And the first January has been almost as normal as previous years. And we have also seen, not really reflected yet, a decrease in steel balls and lime in diesel and in explosives. And it looks like this decrease is going to continue because the prices of explosives and lime are linked with the price of gas. And the price of gas, I'm going to speak about it a little bit later. is has been going down substantially one of the things we have started to do this this quarter and we will continue doing so is start to break down a little bit our operating cost of to give more clarity to the market you will see that we divide our operating costs in site operating costs and in off-site operating costs site operating costs are normally linked to the cost per ton i mean the amount of material that you treat regardless of the grade while off-site cost is basically what you have produced, the concentrates, what you have to send outside. Those are the prices there, the costs there are related to the prices of treatment charges, transport charges, freight. And what you can observe from the graph that's shown is that the, actually the inflation was not that high in mining in spite of the doubling of the explosives and uh and 50 higher in diesel but where most of the increase came from basically doubling our costs came from from processing This is due to the high price of lime and especially the price of electricity. Other than that, other things like health, safety, insurance, manpower, et cetera, et cetera. You can see that really the changes from, from, 21 to 22 are nil. And actually only in the last part of the year of 22 was slightly higher. But basically the cost of 0.54 dollars per pound payable have remained the same. The same thing I would say in general with the oil in sustaining cost when you start considering capitalized stripping, which has been quite constant, and sustaining capital, which has been quite constant in the year. Normally it relates to, of course, ongoing capex that we require at the plant, but also basically the maintenance of the tailing facilities. As I said before, the key component of the cost here has been electricity, and it's important that we explain how it was, how it has been historically, and how it looks like it's going to be. In the upper part of the slide that you have on the screen, you will see some green columns which show what was the electricity market in Spain in the last few years. You will see in the left part, it has been stable around 50, 70 euros per megawatt hour, which is 5.7 cents per kilowatt hour. In 21, we had a crisis, started with the city crisis, but we had a fixed price coming from 20, so we didn't have any issue. But in 22, we were exposed to the market and that shows that we went from an electrical price of around 6 cents per pound, which is 60 euros, to very high numbers. Very high numbers that are shown in the lower part of the graphs, where you will see that our electricity prices have been all around 250 to 300 euros per megawatt hour. That means five times higher than it used to be. Okay, that's thanks to, thanks God, situation in Q4 was a little bit better, as you can see in the lower graph. And in January and February, and so far in March, slightly better even than in Q4. Still not high, not as low as it used to be, but I would say much better due to the high intensity of the wind, solar, and in some cases, hydraulic. But the most important thing here is that, as some of you know, we signed a long term agreement for 10 years that kicked off in 2023 in January at a long term price of around 54 euros per megawatt hour flat for around one third of our consumption. So this has an incredible effect of lowering our future electrical costs. And together with a solar plant that will kick in next year, basically we'll have covered about half of our electricity costs. What about the other half? Well, the other half is related to the price of gas. Spain has a distribution of electricity with a mix of nuclear, hydraulic, water, But the marginal cost producer is the gas system, the combined cycles. And the price of electricity is normally like two times multiplied by the price of gas plus some CO2 adjustment. And one of the things you can see in this graph shown in the screen right now is that the price of gas that we are enjoying now around a little bit less than 50 euros per hour is roughly the same price that we had in summer last year. Sorry, in summer 21, which is almost six times less than what we had in the peak of August 2020. August 22. If you remember what happened in August is that there was the war of Ukraine, the blowing of the pipes coming from Russia and the Baltic, plus the extraordinary heat wave all over Europe and specifically in Spain that pushed the prices of gas quite a lot. Two things are different this year. First is that we have this power purchase agreements and some fixed rates. So we will not be so much affected to the changes. Second is that Europe is prepared with LNG. Spain consumes LNG. And it looks like this year, those big sparks are not going to happen this year so far. Going to what happened last year and why it's not going to be repeated, you can see in the upper part of the graph that the increase in prices of electricity created a huge increase of almost 250% on the cost of electricity. So it went from having less than 0.2% dollars per pound cost of electricity to going to almost $1 per pound. What's the future? That's past. The future is that in the lower graph, you will see that in orange, orange will be the average price that we will be getting with our PPA and our solar compared to the price of electricity in the market. What does it mean? That if we didn't have this agreement, we would be having at let's say 150 euros per megawatt hour, we would be having 0.5 dollars per pound copper. The reality is we'll have a little bit, about half of that. So in summary, I think we are quite well prepared for this year, and especially for future years. What are we looking for in 2023? Well, we hope to have a year of production similar to previous years. We thought this is total we had in March. Cash costs and all-in costs, we have guided between 3 and 320, which is slightly lower than previous year, but higher than the other years. And the only reason here is that don't know what's the electricity price going to be so we have assumed i would say higher prices but lower than previous years so we will be spending around 10 million euros in inspiration if needed this is com this is something that we can always reduce if needed and we will be treating around 15.5 million tons of ore through the plant with a recovery we expect in range of 84, 86. Basically we expect it to be a non-event year. Several important initiatives that we have to do this year is finally construct this 50 megawatt solar plant. which will start seeing activities in the ground in April and should be ready by the end of the year. We have had some delays with symbols, with supply of materials, but finally things are moving. And we're also moving, as you can see in the slides, in the screen now with the construction of the ELEX installation, which is progressing well, and we believe that we will be able to start commissioning at least partially by mid-year. Also, again, this installation has suffered some setbacks, some delays due to the supply chain and due to being something that's quite new, and engineering in these things is never something off the shelf. We will continue exploring in Massa Valverde, in Osa Morena, which is just north of Rio Tinto and Rio Tinto East. We have a budget of 10 million, which is a significant budget for a company of our size. And right now, as we speak, we have three rigs going on in the area around Massa Valverde, one rig in the area of Osa Morena, and we are waiting to start drilling there. just after Easter in Rio Tinto East with a new rig, just testing some anomalies. So it's going to be quite a busy year. I would say that the most important development this quarter has been the growth plan of this company. This company is not only Rio Tinto. We have been working now for eight years at Rio Tinto, but we have a huge exploration ground just around Rio Tinto and also in the north called Osa Morena and in Tauro in Galicia in the north, all copper. So looking at Rio Tinto, we believe we have quite a different advantage, I would say, compared to others, other new projects. You all know that the new copper is needed, new copper is needed in the world. And one of the things that we have versus other projects is that we have this huge infrastructure advantage. Most of these projects that are going to be needed the decarbonization of the world will require labor camps, fly-in fly-out, desalination, water pipelines, smelters. Well, we have our own smelter, we have ports, we have transmission lines, we don't need camps because we have villages around our installations. This is an incredibly huge advantage. What we plan to do with this installation? We were doing the same business model that MATSA is doing, and it's quite common in other places, in other districts, where you have a centralized installation, where we have our plant, and where we track the ore from the existing deposits to the single plant. This is what MATSA is doing with three deposits on the ground feeding a single plant. In yellow, you will see the volcanic rocks that form bms systems at the pirate belt further to the west you have the nevis corvo and almina mine and then in the page we have we have other mines like las cruces darcy's all these dots are known sulfide deposits so very prolific area but Looking at what we have specifically, you will see in the background of the picture a big pit. That pit, shown in white and black, is the existing current pit. With that one, we would have a life of around 10 years. So we said, well, we have all the resources drilled. It's called San Antonio Underground, higher grade, yes, continuing in the far end of the picture, which is east. And in the front part of the picture, which is west, we have the San Dionisio, which is the remnant of an old deposit that was mined in the past by Rio Tinto, where mining started over 150 years ago. And at the left, we have the plant. with a huge capacity. So we thought to, we decided to put a plan together. We had announced already these resources with the 43-101, but we decided to put a plan together where we could mine three of these deposits simultaneously and see how we can benefit from this. So we asked our company, Tetra Tech, to put picture together, which if you look at the slide is shown in light green is basically the current pit and shown in dark colors and in gray would be the additional other deposits. So as you can see in the bottom part of the slide, the first four years, we only mine copper only. Very simple. And it started in 27, so it's the fifth column in the lower part of the graph. We start adding sync also, which means that we'll have to, by that time in 26, we'll have to have a sync circuit or something to treat that sync, which is higher rate. Well, with that plan, our equivalent production profile will be around the 55,000 to 60,000 tons of copper in the next four years. And this is an external plan. Of course, we will try to put this normalized so that in 2024, you don't see a slight reduction, so have it pretty normal. And in 2027, as soon as we start getting on the sink, we start seeing higher production profiles, which takes us well over 100,000 tons of copper equivalents. These numbers give exceptional high returns. And the simple reason of this is that we have a plant already, and so our investments are minimal. If we use the current copper price, which is around $4 per pound, the cash flows undiscounted after tax would be around $3 billion. Remember, our market cap right now is around not even $600 million. discounted at 8%, which is a kind of a standard, we will get a net present value discounted 1.5 billion. Again, about three times our current market cap. And I would like to highlight that this does not include any addition of the satellites of Valverde or Rio Tinto East or Tauro. It means, assuming that we didn't find any single tone in the whole next 15 years, this would be a model of our production profile and cash flow generation after tax. Very significant and comparable with this large portfolio deposits around the world. This comes with some capex, which we highlight in lots of detail, which is really back-ended. And most of this capex comes from the development of the underground deposits and also from adding a plant expansion or sink line in three years time. Other than that is basically more space for tailings, which is something that we'll do anyway. Of course, these numbers of capex are included in the, they will be financed from the cash flow and they are included in the numbers I just mentioned before. So this will also come with two consequences of reduction of costs. Since you start putting in higher grade costs, higher grade material, their costs are reduced. So the cash costs will go down substantially around 80 cents once we get into this polymetallic area, which means two things. One is higher, production and lower operating costs, which means higher cash flow. So a very promising PA, which even at $3.50 per pound copper seen in the screen, it still has a net present value of 1.3 billion discounted, 8% after tax, without discounting over $2 billion uh two billion cash flows of course using that four dollars per pound this these numbers increase as the to the prices to the to the to the numbers i gave before we have to say that of course we believe in the next 15 years we will have years where we will see much higher copper prices on four dollars because the industry and the whole demand of copper requires this is higher it's higher metal prices so very encouraging A total not much to say that we continue to permit and to progress the permitting of this installation. For those of you who are new, this is a brownfield project that has a current quarry on site where we had already a negative environment impact declaration. But this negative environmental impact permit three years ago was not due to any environmental grounds that the project has. It was due to the former legacy water issues of the project. This project had a stop in 87, back in 87, 88. So one of the things we agreed with the and the government of Galicia was to install a water treatment plant that you can see in the pictures where water comes in brown with some acid formation with iron and comes out clean in the bottom part. As a result of that, now the rivers are clean and so nobody can accuse us that not being able to fix the installation, to fix this current situation. We have had lots of visitors and people demonstrating the one to mine training courses for operators being publicized in newspapers. So we believe we are in the right track and permitting takes time, but we believe it's right now is the moment. With all this, where do we see Atalaya? If we were to stay as we are, we will be in the range of 55,000 tons of copper, which is, by the way, it's four times more than we had, three times more than we had when we started. We will be adding over to 90,000 tons of copper with the, and that's only copper, with the PA numbers that we just mentioned before, that's without zinc. And when we add total, we will be well over 120,000 tons of copper, which is a very significant growth for a company power size. And this can happen in as soon as three years from now, if we get the permits of total this year. So in summary, lots of things going on, very busy as usual, solar plant going on, ELEX going on, San Dionisio, we'll be doing lots of work after the pa total we continue permitting massive albert is still early days exploration but we continue with the permitting and we believe we are going to get be getting the permits to mind very soon also wearing us a whole new ground where we will be every inspiration at this stage although we already have some resources So I think that's a summary. And I would like to leave about half an hour for questions. And we have lots of questions.

Alberto, thank you very much indeed for your presentation this afternoon. Ladies and gentlemen, please continue to submit your questions using the Q&A tab situated on the top right corner of your screen. While the company take a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via our investor dashboard. Alberto Cesar, as you can see, we have received a number of questions throughout today's presentation, and thank you to all investors for submitting their questions. Alberto, if I may hand back to you for the Q&A and ask you to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end.

Thank you. Okay, excellent. Yes, I have lots of questions that we have received sent by email or before the presentation. So let me read all of them and try to respond to all of them. Some of them are kind of repeated, but no problem. First one, in terms of total, how have your discussions with authorities progressed during 2023? I suppose it's also 2022. Further, this is still new news, but how do you think copper being declared a strategic commodity in Europe can assist, if at all, given the key impediment of the project was its own environmental grounds? Interesting couple of questions here. First of all, let me start by the end. The project never had a problem with the environment. Actually, this is a brownfield area with lots of eucalyptus where our quarry is still active and is ongoing. So there is an open pit there. And the problems to give us a negative permit three years ago was not... It was not based on a special flower, a special affection to the environment or whatever. It was due to two things. It was more political than anything. It was the noise created by anti-mining groups when the tailings of the Brubadinho dam in Brazil broke and they created a wave of... of mud flowing down and killing lots of people. And second is the fact that there were acid waters from the legacy mine. And they were saying, if this is what people did in the past, you are going to do the same, but much larger. To address both, we said two things. Okay, the thing of the past was due to they didn't use plastic lining and didn't do the right things. And we addressed those using a water treatment plant. The issue with the tailings itself, we have presented a project which is basically without any water on top of the tailings. So if there's no water, it cannot be this break. Besides the fact that the tailings itself is designed in a different way. Our discussions have been continuous with the government, the regional government and all the authorities to get the water permits, to make sure that the project we were presenting was correct. And all of this has been done in hand. Another thing they recommend us to do is to fix the social license, because due to the lies that were transmitted by the anti-mining groups, the population was believing we were going to be creating a moonless landscape and throwing everything to the river, which I don't know why we would do it. And we have done that with signing lots of agreements with stakeholders, regional stakeholders, fishermen, river, et cetera, et cetera. So all of them has been lots of work in the background. And we believe we're in the right path or so it looks like from all the feedback we are getting. Excuse me, it was a little bit long, but I think it's very important. What are the next steps now that you have completed a PA? Will you start feasibility study and any permits required? Well, lots of work ahead of the PA. The PA is basically a guideline, it's a route, but we will be doing more than a feasibility study itself, basically doing detailed engineering for the plant design. So all those numbers that were part of the PEA, have a backing that is realistic instead of a more general review. We will be doing detailed designs of the sink circuit and a few other detailed mine planning of the underground mine. The open pit is quite clear. permits we will require is additional space for tailings and disturbance of land which we believe we will get very soon because we have started with this well ahead of all this in spain once you have that and when you have certain disturbance of land and then the the changes within let's say, within the broader permit are considered non-material and are dealt with in a year-by-year basis. So the permits required to start mining in Sandinista, for example, very likely we'll get them later this year or even in the first quarter. No, later in the year. And the tailings for additional space in tailings, probably in April or very soon, very soon. The next question is, with the solar plant and potential wind turbines, would Atalaya get into the power business life of the mine? Has any more work, future planning been done on this, feasibility study planet? Well, not really in the power business. This is for self-consumption that has certain advantages. Our goal is to get to around 50% of our self-consumption, which has the advantage of not having to pay the taxes and the connection to the grid. So it's more economic than selling the electricity. Obviously, if you have a consumption like we do have. We have been doing lots of work and feasibility study of the wind is about to be completed after having six months of continuous measurements with a big tower and also 20 years of data from ground level measurements. So far, the preliminary numbers show that the four wind turbines of around around 5 megawatts each would provide us with around 15% of our needs according to the prevailing winds and the price that we can get there based on the capital costs is very competitive better than connecting with the grid even with the long term prices that are seen in Spain around 40 to 50 euros. So we would get better prices than connecting with the grid of 40 to 50 euros. Our plan is to probably get this final study to the board in the next meeting. And the next question is on the PA. The net present values look too high compared to our market value. Will values decrease once a feasibility study is finished? Well, no, that's the reality. That's the numbers. Normally, companies trade at around 0.7% of the net asset value. 0.6, we are trading, we believe we are trading at 0.3 or 0.20, which is a fact. So I think it's a matter of catching up when people start seeing that we continue to deliver like we have done in the past. The feasibility studies or the numbers will just... optimize the current plans. I hope that the studies show that it's actually better than the PA by advancing the production of higher grades and reducing the capital costs. By the way, we have not assumed the use of ELIX in this system, which could provide an additional advantage, but we have been very conservative in the PA by assuming differential flotation, which is something that we know it works. ESG, do you know where Atalaya scores relative to peers? I don't have the data here in front of me, but maybe Cesar, do you have the numbers?

Yes, yes, we do know how are we going according to Copier. So according to Sustainalytics, which basically issue very close to Camel and better than companies like GeoBoys Global or Saltcoint. But I think the important here is not where we are now, so where we get into, I think there is a significant improvement. So taking again, just analytics, previous report that they rated us at 58.8 and we are now in the range of 39.2, which is a significant improvement. from the previous report. And I think that we recently approved the sustainability report for 2022, which means a significant improvement on the quality and the disclosure that we do on all ESG matters. And I think that will give a significant improvement to our rating. So we continue having these discussions with the two major rating and I think that will get to a better rating, which will again compare to better companies that are doing better disclosure on sustainability.

The next question is also related to ESG and maybe you can also answer, Cesar, I'm going to read it. Carbon footprint, carbon credits. With solar coming online, Would this generate carbon credits, potential source revenue?

Yeah, well, we, so as a company, we don't have many carbon emissions to the and the vehicles that operate in our mind. With that in mind, we are not really into the credit or market at this time. I mean, we will look at any other revenue alternatives, but I can say that, as Alberto mentions, one, we have the solar plant, which is significantly big, but we will be using the full capacity of the plant to be we would look at it. We haven't looked at it so far, but I'm not expecting a significant amount of revenue there, if it's something.

Thank you, Professor. The next question is regarding acquisitions. Last time you mentioned prices. You mentioned prices were too expensive and it made no sense. Anything changed? Well, we continue to look at things and it's too early to say. We We continue to look at several opportunities, but not much to comment here. If we do anything, it would be that it makes sense and that can create value, because we have enough in our plate to grow without needing to acquire. But of course, we are quite opportunistic in this sense. Next question is, are you still planning to move to London to the main market? Yes, although we have come with some difficulties due to Brexit, which maybe, Tessa, if you want, you can give some small summary. But I mean, yeah, we continue to look to find ways to get to the main market.

Indeed. So the goal, the main goal for Talaglia is being listed in the premium market of the London Stock Exchange. And we're getting ready to get there. We plan to do two different steps. So step one would be to move the company from Cyprus to the UK. And then step two, once we are in the UK, going to the premium listed, which But we found in this first step, moving from Cyprus to the UK, some tax issues, mainly driven as a result of the UK not being in the European Union anymore. And this is something that is slightly changing the plan, but the plans in order to get to the same goal, which is going to the premium listed. So some of the work or many of the work that we've been doing for the last year or year and a half will continue to be in order to get to the main and the UK take on the code and also looking, keeping an eye on the UK corporate governance code just to ensure that we'll fulfill all the requirements to go to the main market. This is something that is in general planned and we'll get there. We just need to slightly change the plan as a result that we're not moving to the UK. Yeah, but still as a main goal of the company.

Thank you, Cesar. Another question is, do you have any contingency plans if the banking crisis continues to grow? Well, first, I expected not to grow much. But second is I think the banking crisis is probably, unless it goes global, I'm not so sure if it will affect the copper demand. The copper demand now is linked to real demand from especially CO2 fights electrification globally, not only in China, but worldwide. For example, I read this morning that China had installed in China this year electrical panels, solar panels equivalent to the rest of the world. So they're still growing big time. The bank crisis of 2008, which is the one that was probably the deepest part, did also affect the copper. But if you remember, 2009 was were extreme in rebound. Actually, prices peaked in 2009 and 2010. If it happens this year, I think that will happen. It will be the same result. The demand is there, and there's no supply. So the way we prepare with this is stick with our long-term plan, be tight with our expenditures, Obviously, if there was a huge decline in cover prices, we'll probably have to slow down in contingent expenditures like exploration and maybe a few others, but not much. We're a very slim company. Another question is, can the solar plant be expanded beyond 50 megawatts? And what's the update of wind turbines? You just mentioned the update of wind turbines finalized in the final economic studies. We already have data. And the solar plant cannot be expanded beyond 50 without making lots of modifications and also because you are not allowed to sell to the grid and what we can absorb is 50 megawatts. So I think this is our limit at this stage. It doesn't mean that the long-term we cannot use our existing land to install a much larger solar plant. I mean a huge solar plant, which actually we are looking at but that's a different story. It would be for us a business itself. Next question also related to power is power prices seem to much better in Europe now. Will you consider being more power, hedging more power in another long-term contract? Yes, we would. We continue to watch the long-term prices. Right now they're around 60 euros megawatt hour. We sign for lower than that. So if we can see the opportunity, we will probably do it in a certain part of our costs because we believe that Although the long-term views of prices in Spain, everybody talks about 40s to 50s. At the end, we wouldn't care paying the high 50s if it was needed because it doesn't mean too much of a difference. But so far, the prices have not gone there yet. Another question is, which exploration project has the most potential? Osa Moreno or Masao Verde? Difficult to say. Difficult to say. Osa Morena is, I would say, more greenfield, very clean copper with gold, huge belt, but early days. So you have to be careful and slowly because it's basically... discovery mode. I think the potential is very high, but it's longer term. Massa Valverde, it's an existing deposit where we are basically highlighting the high rates of these existing deposits. And around this Massa Valverde itself, we are finding several satellites, which we are drilling. So I would say shorter term is Massa Valverde, longer term, Osa Morena. Another question is, your recent work on ESG, have you started to see any positive feedback from investor community analysts given investment community, given investment community supposedly track companies with score highly? If not, will you make sure necessarily tracking agencies are updated? Well, I think this has been explained by Faisal. Yes, we get in contact with the tracking agencies. We are doing much more than even people see. Very soon, in weeks, we will be publishing our next ESG report, which is even better than the previous one. And yes, we are receiving quite good feedback from the investor community because they see we are actually in the front of what's being done by companies and mining companies specifically. Another question is, do you have a target date to be quoted in the main market? Is the market cap large enough? Maybe, Cesar, you can speak. I mean, I'll repeat the question. Do you have a target date to be quoted in the main market? And is the market cap large enough? By the way, I can send you the email, the telephone of Cesar, and you can speak with him directly. But please, Cesar.

Yeah, so the target that we have in terms of timing was, as you might know already, was early 2023. And as a result of the issue where we found on the moving the company to the UK, it's been a little bit delayed. But we continue having the idea of making that movement in 2023. I think the discussion with the bank is we can terminate the prospectus. We're pretty much getting already before we go to do the prospectus. And the prospectus might take between three to six months. So I think this is something that is doable still in 2023. But we just need to ensure that we have the good base and the company is domiciliated in the country that we need to be in order to be in the premium listing. And then you're also asking about the market cap. I think the company... size to go to the main market premium listed, but we might not be big enough to go to one of the indexes. So we might not get to FTSE 350. For example, I think the last time I saw the cut was around £850 million. So we are in the range of 500. So we can be in the main market premium listed, but we might not be eligible to be in the FTSE in the to get to the index.

Okay, the next question is, is there any further liability to Aster? And if so, how is this case proceeding since the last update, please? No, there's no further liability with Aster. And the only thing we have done, and this we have, I don't think we have even announced it, is to have an appeal to see if we can recover the cost because we believe the The result of the last trial was not fair, and we were asked to pay interest well before they were due. So we have asked the court in an appeal to see if this cost could be reviewed, and that's it. But no liability from our side. If anything, it will only be positive. The next question is... Can I check if the solar plant is in your cost guidance for 2023? Yes, the capital cost is included. The operating costs for conservative reasons, I don't think we have put any savings in our cost guidance, because it will start in the last part of the fourth quarter. And normally, it's wintertime. So we believe it's for conservative reasons, we believe it's not going to be making any contribution this year. The next question is what percent of our copper output can helix be pilot plant treat? Well, depends on the grade that we put in. Normally we will start with zinc and copper. If we start with zinc and copper, which will be extracting the zinc and maintaining the copper in the constant rate. So this thing could treat, Only the plant that we have right now could treat easily half of our concentrates or more with the current rate that we have. The bottleneck is the amount of higher content of metal that you have. If we assume we have around 4-5% of zinc in it, we could treat about half of it. The main target for Helix is to prove in industrial base, and then we'll just repeat in lines and be able to treat complicated concentrates that have copper and zinc, which would give us around 15 to 20 points higher recovery, especially in the polymetallic materials, namely San Dionisio, San Antonio, and Massa Valverde. Let me see. Another one is, please, one on cash costs. Taking into account electricity, 100 to 150 PPA, 54 to reach C1 to 83, we will be looking at very high inflation still for the remaining costs, right? Well, I think...

not sure if that's the case, I mean... Yeah, so I think the issue is mainly on the FX, which have a massive impact. And just bear in mind that about 95% of our cost base is Euro-denominated, so the issue with FX when reporting cash costs is just a reporting issue. But the reality is per euro, and the FX rate that we have in 2022 was much lower than that. If you take that into consideration, you know significant gap between what we should be looking at, what we should have if you compare to the previous year. But getting to the inflation, other than electricity and DSL, which we don't know, we just made some estimations on 2023, the remaining cost of the input to the contrary, we are expecting to either stay where they are now or even reduce a bit in 2023. But we're not assuming any sort of inflation, significant inflation in any other island other than electricity and diesel.

The question is actually the same along the same lines and makes a very good point, I have to say. We achieved 270 cash costs in Q4. Can you explain the bridge to 283 in cash costs guidance in 23, also given that you should be achieving some tailwinds on your energy prices, and hence you would have perhaps expected lower cash costs for 23? I think it has been explained in the sense of the exchange rate, but it's I suppose that's the main reason. Otherwise, the point is very good.

Professor? Yeah, it's comparing 2022 with the previous year. And I think that we sort of have in 2022 some sort of inflation, where for 2023, as I say, we're not assuming any additional inflation, but we're also assuming that the inflation that we experienced in 2023, 2022 is not going to come back. So salaries increase by 5% as an average, that salary, that 5% will stay in 2023. It won't increase, but obviously you're going to come down to 5%. So, yeah, so this is mainly that the inflation that we experience in 2022 will remain in 2023, again, other than electricity and diesel.

Last question is how much of your energy requirements are now locked in a fixed price for 23 and 24 What price have you locked in? Well, we have actually locked in from 23 onwards for 10 years. So 23 to 32 and around 30% of our current needs. I think it's a fixed bottom and the price we have locked in is 54 euros megawatt hour. Of course, on top of that, you have to add some taxes and some connections to the grid and so on, but basically comparing peers with peers with the plain consumption prices. In addition to that, starting, as I said before, in 24, we will have our solar plant kicking in. And based on the number of hours that we receive in this region, this solar plant will give us around 22% of our needs starting in 24. And of course, the price that you have is basically zero, is your operating cost, because we already have in the budget in our balance sheet, the investment. If we took this solar plant and let's say sold it to an energy supplier and they charge us a price for that, we would be probably getting around 25 to 30 euros megawatt hour for this 20%. So if you made an average between the 54 and this, let's say 25, we'll be getting around 40 euros megawatt hour for forever for around 50% of our needs. And just to, to, And also, if we got the wind, it would probably be able to add another 15% of our needs based on four towers. We could probably go for more, but the study we are doing is more a kind of prudent investment and something that we can afford. Well, I think that's all. I don't think I have any more questions. We have replied to each and all of them.

Yes, that's great, Alberto Cesar. Thank you for that. And I believe you have addressed all the questions that came in from investors today. And of course, the company will review all questions submitted today and we will publish those responses on the InvestorMeet company platform. But perhaps before redirecting investors to provide you with their feedback, which I know is particularly important to you and the company, Alberto, could I please ask you for a few closing comments, please? Thank you.

No, I think, thank you very much. Thank you very much for being here. I think the future of the company is great. We have had a difficult year, but we are very well positioned for the future. And I just remind people that this company was supposed to be 12 years mining back in 2014. We have been already eight years and we see ahead of us another 15 without even considering the new projects in total in Masalverde and any other discoveries. So I could see this company well over 20 years life, which is quite a lot considering where we came from. So I think the future is great and thanks a lot for your continuous support, which always helps us to keep pushing and working hard. Thanks a lot.

Alberto, that's great, and Cesar as well. Thank you once again for updating investors today. Could I please ask investors not to close this session, as you will now be automatically redirected 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 I'm sure will be greatly valued by the company. On behalf of the management team of Atalaya Mining PLC, we would like to thank you for attending today's presentation. That concludes today's session. Good afternoon to you all.