Atalaya Mining Plc

Good morning and welcome to the Atalaya Mining PLC 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, and I would now like to have with the CEO, Alberto Lavandera. Good morning to you.

Good morning. Thank you. Thank you very much. Thank you for everybody for being here. And first, let me apologize for not having my camera on. It looks like we have some... I'm here. We have a Speed for some reason so in order to preserve the quality Of the presentation we have taken it off with me. I also have a Cesar Sanchez the CFO of the company So the idea here would be to kind of review As soon as would be a short presentation the results of the first quarter and And especially, as usual, try to answer as many or possible all of the questions that we have received. So if I may advance through the presentation. As I say, I have Cesar Sánchez also with us. I think the first quarter has been a quite good quarter, a positive start. I mean, it's not probably not the best. It looks like we have started in a slow mode from the production point of view, since we only produced 12,000, 140,000 tons of copper, but this was due to the advancing of maintenance plan that we had for April. And I can report here, I think I have said it in public already, that in April we more than recovered the lost production in March and so far May is going very well. And as a result of that, we have kept our outlook and we believe we are going to be as expected. Cash costs and all in sustaining costs have improved versus previous year, and especially when you compare them to the equivalent quarter of 2022. If you remember well, the electricity prices then were very high. As a result of those improvements, and although even that we didn't have a good cover price as we had the first quarter of last year, we generated a positive EBIT of 24.4 million euros, around 25, a bit more, 26 million dollars. and we kept a very good balance sheet we know that even after continuing to invest in the solar plant and helix and repaying some of our our medium term boring one of the things somebody has asked and we will respond is that we decided to go away from the Toronto Stock Exchange. And I may advance now that simply the reason for this has been cost savings because we didn't have any significant volume and the big shareholders that we have in Canada, in any case, they didn't mind staying only with AIM. So this is simply a cost-cutting exercise, no other reading from that you may have. From the assets point of view, we have announced the results of the PEA at Ritinto. I will try to elaborate a little bit on this because I think that supports the growth of this company in the next few years. And we continue with the construction of ELEX plant and the 50 megawatts solar plant. We also received the authorization and approval of the AU of Mesa Valverde. And we also announced, but without a big announcement because it was post-quarter, the receiving of an AU to expand the Rio Tinto mine. From other points of view, ESG point of view, safety, health and safety, our metrics have been continuing very good. We had a couple of months without any lost time accident. We have been working with initiatives of restoration, the water streams are total, which are essential to get the permits there. And after the closing of quarter we also announced the filing of an ESG report that is in our web page so going directly into this details in the graph that we like to show you can see how the throughput in the right side columns throughput of the mill has been more or less constant one week stopped since we said before which compares similar to first quarter of 2022, one week stop due to maintenance, recovery as usual and copper production consistent with this stop. And as I said, this copper recovery in April has more than compensated what we had in the first quarter. Besides that, grades and throughput, recoveries and so on have been quite consistent with the results. Revenues slightly lower than than previous quarters due to the lower production but similar and a bit they're going up again versus the the third quarter and As I said net cash position, this is the important thing has remained healthy the working capital surplus is 85 million better than similar what we had in last last year and and with a cash position at that time, 120 as we speak right now is higher than that. So we are in a much better position than we used to be in the past. I should probably remind those that do not know so much the company, how this last two years have been quite a big change since we finalized the expansion of the plant. And you can see that in the bottom graph in in the slide eight where immediately after the expansion was was finalized the cash flow generation was very good which allowed us to pay a dividend in the last year about sorry previous year and also to pay a remaining debt to astor or we close that file once and forever so we have started to give some um additional details in our cash costs so that people can follow up the evolution of our company how things are going and i think the only thing to highlight here is that there's a significant decrease as you can see in process costs process cost includes electricity electricity was the reason for the main reason of the higher cost last year And this seems to be getting to an end. And finally, we are back again to kind of normal costs. We still have some resilient, higher operating costs in things like lime, explosives, diesel, also going down, but they were still there in 2023, the first quarter. We will see improvements in this costs during the second quarter. Explosive seems to be going down in correlation to the gas prices, the international gas prices, to remind you, reached levels of 300 euros per megawatt hour in August last year. And recently, the European gas prices have been in the range of 32. So it's like 10 times lower than that. And the Spanish prices have been around 25, so even lower than that. those gas prices have immediately immediate influence in the electricity prices so as a result of that our oil and sustaining costs are substantially lower than the equivalent quarter last year and it should be much better in the next in the next quarter which i expect it to be much better due to higher production, which means divided by your fixed cost by a larger units of copper, but also due to the reduction of the main components of consumables that I mentioned before, explosives, diesel, steel, lime, and mainly electricity. Electricity is shown in slide 10. We have continued to show this several times and you can see the evolution in the upper part of the graph of the electricity prices in the years before 2022. In 21, we were covered because we had a one year and a half contract. 22, we're exposed. And how is 23 going? Well, we started obviously with a much lower price than 22, but We also started with a PPA that we had signed in the early part of 2022. So one third of our costs have been covered around 54, which is that line that you see there, dark line. And in the lower part of the slide, you will see a green line, which is the evolution of the spot prices. As we speak today, this week, the prices in Spain have been around 54, 55, 50, in that range. Due to the high influence of the wind, which has been very high in the last couple of weeks, and also due to the solar influence, which is the higher now in this close to summer. Tomorrow we are going to be in the range of 60. As you can see, these sort of numbers are basically the normal numbers that we had prior to 2022. So we expect an even higher decline of the cost of energy and as a result, the cost per pound in the second quarter of this year. And I also expect this to continue during the rest of the year due to the huge construction activities of solar and wind in Spain. Actually, this last week, we had one day where all of the production in Spain was produced with a non-CO2 origin, 20% nuclear, and the rest coming from wind and solar. So this is the tendency in the future in Spain, and I think it's good news for the company. So result of all this, our guidance, we're still maintaining our guidance of costs of around 3 to 320 for a year. but it looked like this is probably high end because we had assumed market prices of 100 to 150 to be conservative but during during the first quarter we had a close 200 but in the second quarter so far we are quite below 100 so probably in the 70 level 80 level so we expect to see a lower influencing our costs. From the production point of view, we continue to point to the mid-range of 54,000. That's what our projections are showing now. So if things go correctly in this half of the remaining of the second quarter, we'll be more or less in the 54,000 tons of copper produced. Let me speak a little bit about the PA and where are we going. Several things from the reduction of costs are initiatives that we are doing, as I spoke before, the solar plant, construction of the ELEX plant, which is the first kind of commission, industrial plant of leaching technology to to produce metal directly and the most important thing has been the the release of the results of of the pa on san antonio san denisio and the continued permitting stages of total besides that we have other projects called valverde and osama which are in rio tinto east where we continue to drill and we have four rigs working there The most important thing is really the, let me, before I go to the PA, let me finish with the 50 megawatts solar plant. Sibyls are ready. They're working in the service station right now. In the bottom corner of the picture, you see all the panels that are there. And hopefully, next time we meet, we will be showing all these panels on top of the surface. The startup data has been given by the construction companies the last quarter of this year, with a little bit delayed from before, basically because they had too much work. That's, to be honest, the reality. ELEX is almost the same thing. This picture's probably a bit old, but the construction is advancing and all of the equipment is there. We had 30 persons visiting, investors visiting the site last week. They could see the amount of equipment that was there. Still, the activity is not at full steam, but we still have to expect this thing to start processing some concentrates in the second part of the year, although I believe it's going to be closer to the mid part of the second half, so end of summer. This is the way I see it personally. and we continue to explore, as I said before. We have four rigs right now, a fifth being added, drilling at Masa Valverde satellites, at Rio Tinto East, we have also one rig there, and at an iron IUCG, so basically copper gold project in Osa Morena, where we have another rig right now, and maybe we'll move a second one. But the important thing here is to speak a little bit about the value generation of the PA of Rio Tinto. We have a huge mill, a large mill working efficiently in the last eight years. Besides that, left and and right on the picture, which is west and east, we have San Dionisio and San Antonio, which are two satellite deposits that were known, that we have been drilling. Cerro Corral is our existing pit. Besides that, we have another satellite, Masa Valverde, around 29 kilometers south. So, obviously, we said, what can we do with this? The idea is that since at Cerro Colorado we have around 0.9 million tons of copper or copper equivalent. But when you start adding what we have in San Dionisio, Maso Valverde, San Antonio, El Conchal, Even without TOTO, we are getting close to over 4 million tons of copper, so almost four times what we have at existing reserves. And the most important thing here is what you see in the right side of the picture, where our grades are around 0.4 at the existing pit. But in the other satellite areas of San Dinisio, San Antonio, both open pit around the ground the grades are much higher and some of them contain in addition to that thing so it was an obvious choice to see how can we exploit the federal colorado but bring as soon as possible this and the inicio into into production so what's an issue and what's the the global p of an integrated plan it's basically what you see in this picture we have an existing pit which is if it was alone it would be running for around 10 years but let's say in the far east which is the far end of the pit around one kilometer away we have the san antonio deposit which has higher copper grade and sink and uh west of it is the old san antonio which is the corta talaya pit where previous owners were mining very high copper and they left in the side of the wall things with around 0.9 copper obviously this this grade is is double than what we have in the existing pit so we should obviously we should try to integrate this as soon as possible how does it look when you made a kind of vertical section when you where you when you cut this pits vertically and make a slice it looks like this so in the left side you will see the existing pit and you could see some red things which is high grade that has Red is over 1% copper that has been left in the side. That was considered low grade in the past. And basically what we are doing, it sounds logical to do a pushback. In the center is what we currently are mining, which is a several Colorado pit. And in the right side, you see a kind of semi-horizontal dip into the right, dip into the east, also with nice red colors over 1%, which is the San Antonio. Two things you can notice here. First of all, how close they are. So with only one kilometer, you can go from one pit to the next. And the other one in Sandinista itself is basically the expansion of the existing pit. So when we put all this thing together, we get a plan which is shown summarized. By the way, this PA is in our webpage. We get a plan that is shown in this slide 21. What does all these colors mean? In the lower part means basically you see green and gray. Green means copper material. Gray means copper plus zinc. And the first thing you notice is that in the next four years, including this one, we will only be processing mainly copper. But in the upper part, you see green being Cerro Colorado, our existing pit. And then in other colors, blackish and gray is the production coming from the solar satellites of San Dionisio and San Antonio. So the first thing you notice is that you already have some mining in the San Dionisio, but copper only in 24, 25, 26. This means two things. It means that we can start next year already bringing this high-grade material into the pit. And second thing, it means that we don't have to make any modification of the plant during the next four years. It also means that before the end of 26, we should have already a sink circuit installed some way to recover the sink at Terra Colorado. There has implications in the CAPEX. The CAPEX required to do this expansion of the sink circuit is back-ended towards 26. Of course, we can advance it, but also we can we have flexibility to delay it if needed because we always have the feed from the existing pit. And this is very important because it's not an underground mine where you are dependent on an exit in one single entry. This is something that gives you lots of flexibility because in an open pit, in order to produce more, you only need to put trucks and move machines from one place to another. Flexibility of an open pit is very important. As a result of that, you get the production profile that you see in this slide. You will notice that the production is going towards over 60,000 tons of copper in the next four years, and then beyond that, it's even higher when you add the zinc circuit. Some people have highlighted and noticed that in 2024, it looks like our production is low. But also, please note that this was based on the study done by Tetratech, And they were also showing much higher production in 2023, close to 60,000 tons. The reality is that it will be much more smooth. It will be like we are pointing our guidance around 54,000 tons, 55,000 tons for both years. So what we've shown here in this graph in 2023, it's shown higher and in 2023, 24 lower, actually will be similar. If possible, we will try to bring higher rates from 25, 26, from this high rate that I mentioned in the previous report, forward. Anyway, being what it is, non-optimized, the result of this, different cover prices are shown in the lower slide. They are shown with after-tax net present value, which means cash flows. and it's important to note that even at a 350 copper price flat which is even lower than what we have for 15 years by the way it's a price that i don't see it achievable impossible to happen it's not in the world uh the discounted cash flow at eight percent would be over one billion which is doubled our market cap and and then discounted which is really what counts to to give out dividends is over 2.1 billion so which is four times less than our market cap at a normalized price that we believe is more close to the consensus actually the consensus of most analysts is now getting long term in the 420 425 couple price these figures go up to 1.5 billion discounted at 8%, which is three times our market cap, and 3 billion undiscounted, which is six times. Remember, this does not include any additional ton from our satellite deposits of Maso Valverde, any new discovery, or any addition of total. So I think it's a very positive outcome, especially when you compare with other projects that are being built or launched elsewhere, where the net present value that's shown sometimes of 1.5 billion to billion often comes with a capex of also 1 billion to billion. And these net present values are shown from the day of the start, which in our case is in mid and in their case is probably five, six years away. Another focus of potential is total. It's always delayed. Things are progressing, although very slowly from our point of view. It's an old system where the quarry is working. And things that have been moving in this last year is the water treatment plant, which is up and running. The rivers are now clean. And the administration is totally positive with us right now. A big change, which is really what I wanted to highlight in this presentation is this, is in late March, we had a gathering with over 3,000 people saying yes to the mine from all the villages, having a kind of party in a peaceful demonstration of support. This is a very unique, of course, this was followed by the local TVs and local newspapers, and there was a real... showed to the politicians that there was full support in the area. And the noisy people against the mine were basically eight persons making a lot of noise. We believe this is the case in the area. We respect all the views of the people that do not want any mining. That's fine. But we have been slowly showing the benefits of the project, cleaning the rivers to make sure nobody can point to us. And this we have done before the permits, which is a kind of unprecedented, I would say. The normal case would be that as part of your construction, you will be cleaning the rivers as part of the taking over the past liabilities that's existing on site. And since there was a lack of credibility of those opposing the project saying yes, but they will never do it, we decided to do it ahead of the project at our own cost and own risk. So I believe that this has been preceded by the administration and things are going in the right direction. Permitting takes time, but eventually we would succeed. With all those things, Our production profile will be looking how shown in slide 26. From the current level of around 55,000 tons of copper, we will be close to the 60,000 tons just from Rio Tinto, and then going over 90,000 tons of copper So that's where we get into the new areas of San Dionisio. And with total carbon stream, which hopefully can be in the next two years, we can get over 30,000 tons, additional tons of copper. our company in around 120,000 tons of copper, which is substantially higher than the 20,000 that we started just seven, eight years ago. So the growth profile is very high. I have other slides that are there as a backup in the presentation, but I don't want to make this too long. I believe that the best thing is to go to the question and answer session.

Alberto, thank you very much indeed for your presentation. 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 and kindly 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.

Excellent, yes. As usual, I will try to respond to all of them if I have data. Otherwise, I can be a little bit. So the first question I see here is the dividend policy. In arriving at free cash flow for the purposes of applying it to the dividend policy, would it not be sensible to add back the effect of moments in working capital which may result and have done so in Q1 of 2023? in in a consider may result in a considerable distortion of the performance well um that's correct uh normally the movements of working capital are mainly related to timing differences so this is something that's uh that in q1 there was a lot of flow which reduced apparently the free cash flow, but this is just timing. In an annual basis, you will not see this. And dividends are normally calculated on annual free cash flow. So this short movement shouldn't be a problem. It should not be material in any way. So we don't consider the effect of what happened in Q1 as a normalized situation. The second question I see is, there is no mention of the transfer of the company to UK residency and a transfer to UK market. Can you provide an update, please? Well, absolutely, yes. The company remains fully committed to move to the main market and I have to say that we have found some difficulties. There's no specific timing yet, but our goal, internal goals and goals by the board is to have this this year in 23. We have had some delays due to the situation with Cyprus being in Europe and the Brexit. When we tried to do it how it was planned, we saw that there would be a tax, it would have some tax implication that would result in some shareholders having to pay some tax due to a potential profit without really selling shares. We are going around that and All the paperwork is being completed by doing it in some other way. Rhythm Asylum out of Cyprus, but to a new European country. But we've remained fully committed to go to the main market and we are completing all the paperwork that's needed. And we believe, we're hoping to have this before the year end. The next question is, I noted recently that the Junta Andalucía approved the Expanded Environmental Authorization. It's called the . This is very significant. This doubles the mine life and allows the expansion. It was significant enough to be an official bulletin on Andalucía, yet we have had no acknowledgments from Atalaya for an official RNS. Surely this should be broadcast as it's significant to the very future of the company and secure status and its secure status and future expansion. Also investors would definitely want to know and that includes potential new investors. Will we have an announcement? Actually, it's a very good point. It's a very good point and a fair comment. The announcement in the official Gazette is the approval of the environmental authorization, which allows all these things, such as expansion of Rio Tinto. The most important thing is it allows the use of additional tailings, which means all these Sandionicios or Basavalberde, higher, larger disturbed land, and it opens the door for future... for future development of this PA. We didn't make an official announcement as such itself because it's basically the continuation of the status quo. Maybe we should have done it. That said, it's important and we are going to be releasing when we receive the mining permit to all these things. And the reason for that is because this mining permit may include conditions or not that would be applied to the environmental authorization. Right now, the steps according to the Spanish legislation is that you get this environmental authorization. And after that, the only conditions to get the approval is to have a financial and technical capability, which are quite clear. Once we receive this final documentation from the management department, which is not announced publicly, the environmental authorizations do need to be announced publicly because they go to public consultation, then we will make the whole announcement. I should address, I should mention here, that tells you that how permits are obtained in Spain and Andalofia regularly. Actually, We obtained the EU for San Dionisio, we obtained the EU for for the expansion, which will include San Dinizio, and also obtain the one IEU for Massa Valverde. And we obtain many more that we don't even announce, like the construction of the LX plant or removal of some of the old installations, lots of things that we will be announcing permits every day we have to submit this. But the point is taken, and we will announce when we receive the whole thing. which probably will be in the next following weeks. A total, there seems to be a long-term delays. Surely the new environmental impact assessment has been completed, but not filed yet. That's over three years in the making to end this. It's going to be filed in 23. Other mining companies in Galicia have had their licenses approved since 2020. Yes, that's again also fair point. Other companies have got their permits, specifically lots of quarries and one international one would be an open pit mining in Tantalum in the southwest of Galicia. Yes, we are submitting the project in 2023 and the reason of these delays have been to make sure we got the social license, which is something not written, but factual. Because the project in the past, in 2020, was not rejected based on any technical reality. It was based on impression that things were going to be done wrong, that the water problems were not going to be fixed, that the water problem was going to be was the water problems were going to affect the the sea and it has taken a long time to explain everybody in all the counties municipalities downstream in the rivers how there was no influence and then the water treatment plan to have it up and running and to make sure that the rivers were clean to demonstrate that and now i don't think There will be any excuse or any further delays from the Junta de Galicia. So we expect to see this project, which we believe is strategic for Galicia. We believe it's of critical importance due to the size of the investment. also because the european union has included copper in the critical materials so it would be very difficult not to say no when you have a resource that you can mine and saying no to this project with me would mean that for the shunta de galicia to admit that they don't have technicians Ordering Alicia there are no technicians and good companies to operate this which we don't believe is the case because It's a country which by the way is where I am from that has excellent technical people, so I think this year will be the year and And yes things are slow unfortunately, but we are in Taking all the steps to make sure there's no more failures in this case. The next question is, I own most of my holding in Canada and they still seem to be pricing Canadian dollars. Was the move away from the TSX apart from extremely low volume of trading to allow Atalaya to move into the LSC, London Stock Exchange fully, rather than name? And if so, when? We had been told 21 that we would move, and we are moving 23. Well, I have a partial reply to this question before. There was no specific reason to go away from LS2 to TSX to go to London. It is more in relation to saving costs, but also helps. But the company, as I said, remains fully committed to move to the main market. It has been going for some time, but as I said before, the problem has been the tax issues that have arised and we had to change totally the way we are doing it through another European location. because going to Cyprus listed wouldn't help. The next question is, the electricity price looks to be almost back to normal. Do you see a risk that prices go up again in winter? Have you considered hedging more electricity so that they won't repeat the price that we saw in 2022? Yes, we continue to monitor We continue to monitor the electricity prices. So the futures now 10 years starting next year are around 59, which is a decent price. But we believe that the long term prices in Spain are going to be in the ranges of 50. So we see a bottom like we saw last year in February. We will probably take an opportunity there. But from the way things seem to be going, the problem of gas in Europe has been sorted out. The prices of electricity are set by the marginal cost producer, which is gas. The gas prices in Spain, as I said, have gone sub 30. The price of electricity is the multiplication. It's basically double the gas price plus some CO2 rights. So in theory, the most expensive times would be in the ranges of of the 60 to 80, but during day times due to the high solar influence and due to the wind, we will see much lower prices, sometimes even zero. So it looks like we are not going to be repeating in winter for sure, but especially in the peak of summer, we are not going to be seeing the repetition of last year. But we continue, by the way, to look at other possibilities of installing additional power, like the wind. And that's something that we have not closed yet to generate our own wind energy within our property, which will help us reduce not only the carbon footprint ourselves, but also to stabilize the electricity prices. Wind turbines in our area give you an average price of around 40 to 50, depends on the deprecation period. The next question is also related to electricity. Now that the electricity is much lower, why are cash costs not falling faster? Are other costs still high? Which ones? Well, I have mentioned before that you can see in the presentation that the costs have been reduced quite a lot, like 50, 60 cents per pound, only due to electricity and other things. Other components are diesel, explosives, lime. Lime is still linked with the gas price and is going down. Explosives is also linked with gas prices. And just to give you an idea, before the crisis, we were paying a price of around 0.7 euros, around that. When the crisis hit in the peak, we were paying 140, so double. and now they are going to one so it's still 40 percent lower than the peak but it's still higher than the 0.7 the tendency should be to go back to that level but as you may understand lots of people are when they put the prices up they're very slow in putting them down in diesel prices is linked to international market the prices are going slower down but the main important one is electricity and this seems to be going in the right way all the things like steel balls we are buying them worldwide so we are getting for example from indonesia our linings of the mills and there they have cheap electricity or cheap gas or cheap heating and and we get quite normalized prices The copper price has been falling recently does this concern you at all? In the other hand the big mines like BHP sound very bullish and copper and we have seen lots of any activity Should we be optimistic or cautious at this time? Well, this is a interesting question of the future look mmm, we are optimistic Because this indication of the big companies buying other is just showing you that they have the balance sheet and but they don't have the time. They prefer to buy versus building simply because it's much faster. And that shows you the difficult condition that we are in the market. I don't know the predictions of BHP, Glencore Tech that we have seen recently. They are all showing at the end of this decade, which is only six years away, by the way. Six years is nothing. We are seeing deficits. People say six million per year, four million per year, whatever is the case. If it's five million per year, it's building five mines larger than the largest in the world. The next six years. It's simply not possible It's simply not possible. So the copper price in this five years will have to go up so much in order to remove consumption But there are some things that simply cannot be changed like Copper wiring in cars. They may reduce the amount but they will not change the use of it or the copper wiring in some motors and windmills so this move of general of the whole world into non-carbon generation is going to be pushing hard not only in china and it's something that will happen recently has been a little bit slow because of the Not so good figures of China, which is taking longer than expected, but it's already happening. And actually the stocks are extremely low. So I am very optimistic. We will not see very low copper prices in the future. Could we have an update of moving to the main board? The last update delays were blamed on Brexit, making things more complicated. However, would you please make it more of a priority, put more resources in achieving the main board listing? We do not agree that being a name is probably holding the share price. I think I have spoken about this, but it's 100% right. Some funds and institutions cannot buy a name. And we have had lots of meetings with potential investors that told us this, and we're working on this. Unfortunately, things are very slow, but as I said, this is high priority. What's holding here is the production of the competent person reports and all the documentation that's linked with this. But working fast and with several group of lawyers and advisors to have this as soon as possible. Which projects fall within the main rate into operational for tax purposes and which will be taxed separately? I think all of them will be falling within a global company in Spain, Atalaya, Rio Tinto, Minera. We have several other companies which are operational companies for exploration and so on, but everything falls into the main taxes are coming all to Atalaya, Rio Tinto.

If I may ask here, the way that it works in Spain is what we call the consolidated tax regime, which basically when some of the subsidiaries meet some of the conditions, which in our case, pretty much all the subsidiaries met that condition, we have presented the tax globally for the subsidiaries in Spain. So getting to the question specifically, the company which owned the Rio Tinto project, the processing plant, also Rio Tinto East Deposit. And then we have other subsidiaries for Massa Valverde. Tax-wide, they all consolidated together, which basically have some benefit about netting off some of the profit when you have some losses on a specific entity. So it's pretty neutral. And I think the Spanish tax office work quite well.

Thank you, Cesar. The next question is, is the ASTOR file closed? Do we have an open appeal? Also, ASTOR is still collecting some premium of our output of Redinto when we remove ASTOR. And what do we date with the stop paying ASTOR? Well, the file of ASTOR is now closed. We still get what they call the marketing agreement, where they have a small fee per ton of concentrate, which is fixed now. and i believe this thing goes away in three years time more or less between two and three years depends on our production after that we'll be totally out of faster this uh marketing fees is including our operating costs when is the new solar capacity coming stream the last estimate of the construction company is the third quarter of this year to connect with the power cost of license reduction consumers would it be with the market spec updated cost guidance for this year likely yes i would say that when we announced the second quarter results in initial summer which we believe are going to be good i think we will update our operating costs which i expect them to be lower than what we have right now um That should reduce our dependence on electricity and gas prices. Have you stated how much reduction you will achieve? I suppose this refers to the solar and to the power agreement. The solar represents around 22% of our needs, which basically will come at zero cost almost. And the power purchase agreement represents around 30% of our needs, which are around 54, which means we will have around 50% of our needs kind of hedged or covered, let's say around 40. because the cost of the solar is basically the capital costs, which is already in our balance sheet. Any update on European and Spain position in strategic assets like copper? This will result in tax breaks. What benefit would you expect? What do you want and are you any loving in Europe and Spain? Yes, we are loving a lot. Moving with that, and not only us, by the Spanish Binding Association, the European Union has approved copper as part of the raw materials, which means it has what effect is that the states have to take all the steps to reduce the time required to permit and to construct things. We expect this to have an important influence, specifically in total, because it would be very hard to justify not to do what the European Union is saying. Yeah, go ahead.

Yeah, sorry. So and just to add on the tax side, so we are not aware about any tax implications of the copper being included in the strategic role material. So we cannot respond that question. But so far, we are not aware about any tax implications.

you expand on the chart showing the mining schedule when do you expect the first or from sunday's open pit to the million 24 and how is this impacting head grades into before well as i said before in the plan originally we had in 24 some lower grade in the pit and it's and that's what's shown in the in the original graphs the reality is that we will be bringing some uh some of this high rate in 24 And the grades, I expect them to be similar to what we have right now, slightly higher. And when? I believe we will really start moving some press stripping later this year and probably move some high-weight material in the early part of 24. So let's say the first half to be a little bit conservative. Toto. There was a lot of strange objection against Atalaya IMED. Are the same people involved with Toto? Any legal activity against Toto? What action can be taken? No, actually, the position initially of IMED was totally different. I really was not aware of it. When I arrived here, we got the permits very fast. They're not the same people. There is a group of environmental group, a very well-known environmental group, which is against us, but against, in general, all mining. And they are very reactive. They are very reactive, but the numbers are very small. Illegal activity, well, I would say it's illegal, in general, to say lies. But unfortunately, we have in Spain some laws that protect the opinion and anyone can say whatever. So, for example, it would probably be a problem if I say that I'm going to kill someone or I say that somebody is robbing, but they are free to say that we are going to be polluting the river and we are going to throw away our tailings into the river, even if the project doesn't say that. What can we do? Not much from a legal action point of view because they are protected. but simply show it with facts in the past it was quite easy to to get to go to total and take pictures of the streams in a reddish color although they didn't represent any problem at all downstream because the river has trouts and and very nice fishing but it made a nice picture one of things we did is remove that picture so now the rivers are clean so and we have done it and we have done it with the permits of the administration in a kind of unique way because it's very, as I say, it's unheard of that somebody cleans something before getting the permits. So that's what we are doing. That's the actions. Basically, slowly, slowly getting the support from everybody. The question is, Sunfire purchased in 21 Matza. Copper was lower. Any read through on our evaluation? same multiples could start result on what? Look, if we apply the multiples that were paid for match our market cap will probably should be double. So we have our, the multiples are much better. So I think Sunfire was a case where they had to do something because they were finishing their operations in Australia. They were running out of production. So they had to do something and they paid a high price. we know very well the assets of MATSA because we were also bidding for those assets and our offer was substantially lower. Eventually, we have to continue with what we have. We think we have a nice future and I think it's a matter to demonstrate and show, as we did in 2021, the cash flow that can be generated and we get permits and we develop and we show total and the price will go up again. Any overseas opportunities acquisitions? Any regions in Europe? Size is important in mining. When do you personally hope to reach 1 billion valuation? Last year, I thought we were going to go there. We have been looking at overseas opportunities. in europe but especially overseas the problem with some of these are they don't make sense they don't make sense in the instance that yes you grow for the sake of growing but you're not adding value by doing a merger for example uh and buying a company which is overvalued in chile and issuing doubling the shares which is 500 either in cash or in shares then we would get to the 1 billion But it would be the same thing if I ask an existing shareholder to sell half of his shares and buy half of the shares of the other in Chile, which are overvalued. I'm sure it would not be well received. I wouldn't do it myself with my shares. So whatever we are doing, we are analyzing things and we get into process and look at things. We are doing it if it was our money. We believe we can get to the 1 billion ourselves with what we have, or with acquisition like we did with Toto, where the payments are all backdated, or like we did in Massa Valverde, or like we are doing exploration, or like we are doing with Sandinicio. But with that, it's enough to get to the billion. But if we see an opportunity, and we are looking at several, that at least has the same discount of ours. So they are not overvalued. We will consider it. And we have been considering several. So because I agree with you, size is very important. Certain funds cannot invest unless you have a certain size. Well, that was the last question. I think they were very good questions today. So thank you very much. to everybody.

Alberto, Cesar, thank you for that. And I believe you have addressed all the questions for investors today. And of course, the company will review all questions submitted today and will publish those responses on the Invest and Meet company platform. But perhaps before redirecting investors to provide you with the feedback, which I know is particularly important to the company, Alberto, could I please ask you for a few closing comments?

Well, again, I thank everybody and I've seen some familiar names in the questions, like I'm seeing the last one now. And I thank everybody for the support. I mean, I really feel well with this company, with the support we are getting. Not only our employees, but we have come a long way. Difficult situation. Share price a little bit weak due to the corporate prices slowing down. More than anything, nothing going wrong. I think people still think that the electricity prices have not changed, which is logical. I don't know the prices in Australia, so I don't know if they are high or low. So I understand perfectly this happened. So eventually we will get there. I thank very much for your support and hope we can continue to deliver with our promises. Thanks a lot then.

Thank you. Thank you, Alberto Cesar, 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 and although that the board 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'd like to thank you for attending today's presentation. That concludes today's meeting and good afternoon to you.