Atalaya Mining Plc

Good afternoon and welcome to the Atalaya Mining PLC Q2 and H1 2023 Financial Results Investor Presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and can be submitted at any time by the Q&A tab situated at the right corner of your screen. Just simply type in your questions and press send. The company may not be in a position to answer every question it receives in the meeting itself. However, the company will review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. And I'd now like to hand you over to Alberto Labandiera. Good afternoon, sir.

Going to go through the present. You have seen the results in the press release. At the end, to summarize, we had a good quarter. I would say a quarter with 14.2 thousand tons of copper. Basically, it's setting us in the right target to get to the our plans for around 53 to 55,000 tons of copper at the end of the year. All-in costs, all-in sustaining costs have been good, have been much lower than we have had in the first quarter and much lower, of course, in the equivalent quarter last year. And so far, it looks like we are fully on track to get to this production of around 54,000 tons of copper with only insisting cost between 3 and 320, likely in the low end of this cost if things continue like they were. A bid that this quarter has been around 16 million euros with a little bit lower than the first quarter. with better cash costs, and there were some known cash adjustments due to the quotational periods of previous quarters that have impacted the EBITDA. Even so, the EBITDA, the half of the year, around 40 million euros is quite a healthy one. One of the reasons of this is that the electricity prices are substantially lower than previous year. around 60% lower and they continue to trend lower. Right now in August, though, it's still slightly higher than the previous months due to the holiday season in Spain and the lack of wind, but still much lower, substantially lower than they were in the previous year. We continue to do some investments in the two main projects, which are the solar plant in our operation and the construction of the phase one of the helix. And even so, after, These investments and paying back debt of around 30 million euros, we continue to have a strong net cash position of close to 70 million euros. And this was one of the reasons why after debating at the board, the board decided to declare an interim dividend. for the first part of 23, consistent with our policy between 30 and 50% of the free cash flow. And we decided to give another 5 cents per share. And I will go over the details of payment a bit later. Another important thing of this quarter was we finally delisted from Toronto. It was an unnecessary expense cost that we decided to remove because really it was not giving us any liquidity. From the assets point of view, from the construction point of view, we continue to construct, as I said before, ELEX and the solar plant. And we have been given some announcements which were first interesting. The first ones where we announced the results of the PEA of Retinto, but we also got some authorizations of projects, of Masa Valverde project, environmental authorization, and also the environmental authorization to continue expansions of Retinto, including Taming's Pond. The work in Tauro is slow, but it's continuing, permanently wise. And related to Tauro, We continue working with the water treatment at Tauro and the rivers are clean. And the news coming from that side, from that project, from the society and our stakeholders are always all very, very positive. So going a little bit into the details of this to the quarter, the plant behave normally at a rate of close to 15 and a half million tons per year. uh good recoveries of 87 which were higher in previous quarters and and getting back to our levels of 87 88 and recover production as i said before with decent concentrated grades were were around 14,000 tons, even if we had a slightly grade, which was 0.4, which is probably slightly lower than we had expected, but this was compensated by the high recovery. As a result of that, slightly lower sales, obviously due to the lower copper prices a bid that I mentioned before, slightly lower due to this non-cash adjustments, but with good operating cash flow for around 20 million euros and left us with a net cash position, which was better than the previous quarter. And, of course, this results in a good cash position and good balance sheet, which you will see in slide 9. We had a cash position of around 113 million euros and a net cash of around 70 with a nice working capital surplus of 81, even after these investments that we have been doing in ELEX, in Solar, plus exploration and plus the permit in October. So overall, I would say that we had a very good performance and we continue to deliver in our plans. Part of this improvement came as a result of the decrease of the electricity prices. You will note in slide 10, the decrease of the equivalent quarter of around 300 euros per megawatt hour back in 2022 in the third quarter. And we are now a little bit less than 100 euros per megawatt hour. So it's a huge decrease. And this is one of the reasons why the results are better. The operating results are better. The financial results are better. Of course, the gas prices also have a reflection in other things like lime production and even explosive prices, where explosive prices have been decreasing from around 150 to around 1 euro per kilo. This is reflected in the detailed breakdown of cash costs that we see in slide 11. We have been starting to give the breakdown of these costs during the last few quarters. And you can see comparing with previous quarter and comparing with the full year, how the mining has been reduced significantly, almost 10 cents per pound from equivalent quarter of last year. And that was due to the high diesel price, high explosives price. and in in the processing that's planned treatment is really where you can see the big difference uh the cost of 0.82 it's significantly lower than what we had at 131 in in the last year and even lower than what we had in the first quarter this is mainly due to the reduction in prices slight reduction in prices in line but mainly the reduction in the reduction in the electricity price. The rest being other sites, which is health and safety, administration, purchases, all these things, laboratory, the auxiliary services, water, are more or less constant. Same, slightly lower than they used to be in the last year. But other than that, we can see that overall we have a reduction in site operating costs of almost 50 cents per pound compared to previous year. Just to give you an idea, if we are producing more or less 120 million pounds per year, this is equivalent to around 60 million dollars, just this reduction in operating costs. Freight has also reduced a little bit due to the reduction in freight charges, 5 cents. So overall, all cash costs are 260, which are in the lower end of our guidance. And I would remind those listening that this cash costs, specifically mining, include the capital cost of replacement of the mining fleet, which is taken care by the mining contractor. uh this is something that not very often and that mining companies have their own normally mining companies have their own mining fleet and they have to replace the feet once in a while we don't have that case uh and that normally that's included in all interesting costs which also were substantially lower again around 58 cents per pound than previous year Again, how does this compare with others? Well, normally we have this slide in the back end of the presentation. In this slide, we put all the sustained costs of peers, companies, based on public information, all of it. And in the left side of each of the columns is the quarter by quarter. So basically it's more recent quarters on the left side of each of the piles. One of the things you will notice is in the last six quarters, our all-in costs have been going down constantly. Unlike lots of other peers where you can see that the costs have been continuing to go higher for whatever it is, for whatever reasons. But this is something that we like to make some emphasis because often Atalaya is considered a high cost producer. And we don't think, we think we are not a low cost producer, obviously, but we do wonderful things with what we have. So this is a good comparison to see what you have in the market. So, How does it look this year? Well, it looks normal. I would say, I won't say boring normal, but I would say normal. Copper grade, we are right now in the low end of our guidance, but anyway, we are in the high end of the copper recovery. So at the end, these things are compensating one each other. We believe we are in the low end of cash costs. So cash costs will be closer to 260 and an all-in cost $3 or under. per pound. So, in theory, consistently under our guidance and the guidance of production would be around 54,000 tons of copper. Obviously, this is assuming that the electricity prices continue as they are. looks like the tendency is going down once the summer is out and except the recent days where where the gas prices in europe have jumped a little bit due due to some uncertainty of of supplies the reality is that it looks like europe and specifically spain is it's already uh uh not reliant at all in the gas prices coming from Russia. And the stores are over 80% well before they were supposed to be before the winter. So it looks like we're in a good position. We will continue to to invest in helix and in exploration and in solar and it looks like the capital costs of helix is going higher due to several reasons but mainly being a new technology and being done in a very i would say in a way that's not fast track due to the technology being applied for the first time. So we have a slight delay, which obviously means that we have a slightly higher capital costs. Besides all this, as I said, the behavior of the company has been going quite well. So the board decided to give a dividend of five cents per share. around four pennies per share. The record date will be 25th of August, so a couple of weeks, and the payment will be more or less at the end of September. We realize that we have just paid the last part of the the dividend of last year uh just just days ago weeks ago but we wanted to be consistent with what we did last year so um the reason of this is that by cyprus law the dividend the final dividend has to be approved by by the agm which sets the date of this this final payment uh at the a June approval, so by the time you pay, you end up paying in August. And we decided to declare interim dividend each six months, and then have the final dividend once we know the final results of 23. So we continue with our policy, as we stated, of paying 30 to 50% of the cash flow generated during the year. And unless there's investment needed at certain time and short notice, we will continue with this policy, of course. For 23, I think for 23, we have two things that we have to finish. First, finish with ELEX. It's advancing all the equipment on site. They are assembling pipes, cables, lots of activity in the ground. And our target is to have some feed of concentrate before the end of the year. So likely to be in the fourth quarter. And we are pushing and trying to help Laín Technologies as much as we can. In the case of the solar plant, we also had some delays with the final license of Ryutinto Village. Right now, there's lots of work going on on the ground by installing the supports, cables. We have all the equipment, all the transformer on site. So again, this solar plant is divided in two areas, the one in the north and one in the south. The one in the north is smaller, close to the plant. and we are targeting to start the collection of that at the end of the year, maybe worse, the first month of 24. So a small delay, but still advancing very well. Besides that, we continue to do all the studies and all the work, detailed work, detailed permitting to get San Dionisio into production as soon as possible. San Dionisio, as you may recall, is basically the pushback of this pit that you've seen in picture 17 in the left corner. In the bottom corner is just one drill rig which we continue with drilling with three rigs in Basaval Verde, two rigs in Oso Morena, and one rig in Rio Tinto East. And we will continue with this small slowdown in summer, but we will continue doing this due to the effect, the restrictions of forest fires. You cannot do lots of things during this extreme heat wave that we have right now in Spain. But besides that, we will continue drilling normally in this separation sites. The right side is some expressions of total. In total, the activities there are all related to engaging with the authorities, they're helping them looking through the papers, all the papers have been presented, and we are waiting to see some decision after the summer period. In summer, everything goes to sleep, at least in the administration. But so far, the reception of the project and the local support has been excellent, including some public support by authorities and by associations recently in the newspapers. In summary, I've just gone through all these things. In summary, we still have a very busy year. And our goal is to get our company on track to get to over 100,000 tons of copper produced, first with the addition of production from San Dionisio area, from Rio Tinto, and second with the addition of total that can get us over 120,000 tons. We believe in a copper market, we believe that The market will change. We know there's a slowdown in the consumption in China from internal consumption, although the energy transition is requiring more and more copper. The stocks are low. We see what's happening with big companies like Codelco going down. So we don't know when, but for sure it will happen that there is a certain time where copper will have to go up and significant copper prices have to up significantly to incentivize new projects, either brownfield or greenfield. We are, as part of that, we are one of the few copper producers in London. And we continue with our goal to be listed in the main market as soon as possible. We are doing all the work. And I believe there's a question about that, a question and answer, and we'll give you how that is progressing. So for those of you that do not know much about us, we are in Europe, stable, consistent. best practices. We have a growth pipeline, very clear. We have demonstrated that in the past years, we never stopped. We have an excellent team that continue to deliver, continue to do always improvements in operation, in new installations, reducing of costs, exploring. And really it is a low cost proposition and a low risk proposition on COP. And with that, I would say that the best thing is to go to the question and answer.

Perfect. Alberto, thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab, which is situated on the top right hand corner of your screen. But just while the company take a few minutes to review those questions submitted today, I'd like to remind you that recording of this presentation along with the copy of the slides and the published Q&A can be accessed via your investor dashboard. As you can see, we've received questions throughout today's presentation. And if I could just ask you to read out those questions and give responses where it's appropriate to do so, I'll pick up from you at the end.

So if I may start reading some of the presentation we have received. what is the lane that transferred to the main food she's changed i think i will pass this to cesar which is handling the contacts with lawyers in the sponsor bank etc and he can give you all the details

Thank you Alberto and hello everyone. We have no delays on the process. I think it's been very clear from the company to say that being listed in the main market, it's been a strategic objective for the company, a good goal to achieve. We had over the last year, we had some issues by migrating the company to the UK and that's, you know, for some tax reason. And that's why we call off that process. But we continue with the process and to be listed in the main market. And the people need to understand that there are some complexities on the different work streams that we need to work on. But as Alberto mentioned, we are uh working on it uh we we continue uh working very hard to get it done as soon as possible and and there is some complexity that we need to overcome but uh but but i wouldn't expect any any delay things are progressing quite well and and hopefully we can give you a little bit more information detailed information once we you know continue our discussion with them uh with the regulator and with the different worker stream that we have

Thank you, professor. There's another question saying, how much production should we spectrum Alex in 23 minimal and 24? Will it be mostly sink or some copper too? I think, to be fair, in 2023, I will be very happy if we simply start treating concentrates and get on top of my table some ingots of zinc or cathodes of copper. Initially, we will start with zinc. We will start treating, we have already identified some areas with zinc and copper, where we will be floating and producing a global concentrate. and from this global concentrate copper sink, we will leach out the sink without touching the copper or minimal touching the copper and that copper will be sold and the sink will be sold as a by-product. So in 2023, due to the delays that they have, I think minimum. In 2024, in 24, I would say that the depends on how they when they start full steam, I would say that mostly will be sink, maybe some copper, but mostly will be simply because that's where we will concentrate. And I will be happy if we get to the to the range of 70% of the say 7000 tons 8000 tons of zinc, I will be very happy with that. At the end, where the value of this plant comes from is to be able to recover zinc that otherwise is not recoverable. And when we have zinc copper, we're able to have much higher recoveries of both in places where we have very complex metallurgy. Specifically, there are some deposits in the Parrot Belt, some of them owned by us. where the grain is very fine, and when you have to grind down to 20 microns or less in order to recover copper, and sometimes even the copper, you can only get 70% or 60% of copper. Using ELEX, we have demonstrated we can do that. So this is the main goal of it. By the way, this plant that we are... we are building um it's it's it has the capacity to treat uh three thousand tons of copper and ten thousand tons of of of zinc but the realities with minimum minimum additions will be able to treat double than that so the space the building the ccms the transformers the electrolysis Everything except the tanks and filters, the plantation tanks are all over the site to almost double. So with a minimal investment, we will be able to produce more, drip more. But initially, answering the question will be mostly zinc. Copper, if we do copper, it will be only to test it and demonstrate. a lot of things what are your latest thoughts on potential for regional regional consolidation in a very empire belt well my latest thoughts my latest thoughts have always been the same um it's not latest it's really what i believe it should happen um in some way there are several projects going on in several companies going on and i think the Eventually, we will have to see what are the synergies of each part. We have a couple of companies in Portugal. We have two, three producing projects in Huelva in Spain and in Sevilla, and another two that can come. So eventually, I think we'll probably be doing something together. I think 2024 will be an interesting year, especially if we get the technology of Helix working as we expect. because certainly that will open, let's say that will open the doors of doing something together with neighbors. There's one question here that there has been some press that there can be a situation where too hot can be bad for solar and risk here for us. It is true, it is true that when it's too hot, the performance of the solar panels are slower than in clear spring days, but simply a smaller performance. For example, in Spain right now, if you look at the, anyone looks at the charts Spain will probably be producing during sunny days around 70% from solar. So there's no risk, simply the performance is lower when it's very hot. But that depends a lot on the wind and depends on the situation. But so far, Spain is producing normally quite well. What impact will weak US dollar have on the company in the future? Well, our operating costs are around 70% denominated in euros. So the exchange rate of dollars and euros has a direct influence with us. So depending on how is the exchange rate euro to dollar, a weak euro is better for us in 70 of the cases so that will whatever the iteration of the US dollar will probably mean higher operating cost for us but having said that we also have to look at what would happen with the metal prices because normally there is a correlation with that with the metal prices so normally metal prices go up when that things those things happen Another question is, our dev situation is very strong. There is a chance that some of our competitors may struggle. Any talks advancing with possible targets who may not have as a strong balance sheet? Well, we continue to look at targets in Spain, in Europe, and in other places of the world, provided it makes sense. Not only we have a strong balance sheet, but especially we have a healthy position from a debt point of view because we don't have a project debt and we don't have royalties or streams. So this, yes, it's an advantage. And when discussing with potential acquisition targets, this together with our demonstrated capability to get things done with minimum capital cost has been a plus. and we will try to continue using that for an uh to our advantage but so far we have not closed anything but we continue having talks always always with targets provided the the right the right price we we don't like to overpay Another question is, can you give us a split of CAPEX spending during the quarter on the ELEX and solar projects? Cesar, do you have the details there in front of you? I have it also, but I have to open it.

Yes, I do. So for the solar plans, we spend around $2.8 million during the quarter, and for ELEX, $2.1 million. Yeah, so these are the amounts that we spend during the quarter on solar and ELEX.

There's another interesting question. We appreciate the dividend, but with the share price so low to what you think the company is worth, do you switch to share buybacks? This is something that we have discussed at the board and it's really a good point because we can buy our shares back. uh because there is a good investment um but there was lots of discussion and we thought that one of the problems would be that we will drive the the limited liquidity there is one of the reasons why our share doesn't move is that people that hold it don't want to sell at this price so um yeah we have thought on that but so far we decided not to do it for the moment Another question, say listed in other markets, where is the thinking now? UK, Spain? Are you worried that dual listed can cause a negative effect on share price through arbitration? Dual listed shares, dual listed share class, BHP had this on a grand scale for years. That's how you want to get to, I mean, I'm thinking of UK and Spain, the advantage and disadvantage of each.

Yes, so we're looking at all the options. So as you might be aware of, we are currently a Cypriot entity. Now being listed in the main market as we are trying to pursue and being incorporated in Cyprus might have some issues to be included in the FTSE Russells index. And this is why we're looking to move the company to other locations where at least we're trying to understand what the options are. If we migrate the company to Spain, as an example, we will be able to be listed in the main market and be included in the FTSE Russell Index. But this is only if you're not listed in Spain. So if you're doing listed in Spain and in the UK and you are a Spanish incorporated entity, you might have some limitation to be included in the FTSE. At the end of the day, the goal, the main goal is to be listed in the main market to be included in the FTSE index to provide more liquidity to the shares and hopefully help the share price to go up. And this is what we look at all these options for the time being. The project, as it's currently being progressing on, is continually being listed in the main market and looking at the possibility of migrating the company to another Europe country. But yeah, that's the thinking about the dual listing. So we need to be very cautious in terms about being listed in another country if you want to be included in the FTSE, which I think it will be good for the company.

Thank you. There's another question here. Can you provide some more detail on permitting status to begin mining at some initial? How is the policy expected to back up production next year? Well, the time with permits, you never know. We have submitted the small modifications of the mining of the pit, moving of the road, which has gone through public consultation. We believe What are the things needed there? We need to move our electric line. We need to move the road. We need to get the permit to mine specifically there. We believe we could get into some mining for stripping even this year or early part of next year. How much is that going to impact the copper production next year? I really don't know. Not much being the first year. I would say not much. How do you think about the timeline for total approval? Is it the next 12 months or five years? More like the five years? No. Certainly will be less than 12 months without any question. Right now, in fact, due to some changes in the laws that have happened in theory, the mining authorities should provide an environment impact statement within the next six months of receiving the papers. So even with delays that are created by the lots of questions by anti-mining groups that try to slow down the process always. For example, last time we were almost one year in public information when it should have been only one month. But the way things are going, I think will be certainly in the next 12 months. uh what do you what will you expect the impact of something sure in 23 24 i think as i said before in 23 only moving some some waste in 24 probably something but i cannot tell you how much in production i will guess a little bit our target will be to try to get some or high grade sooner rather than later in 24 but i cannot give you the numbers right now On exploration activities, can you please give me the detail of the work you have been doing in H1 and what were the exploration programs that are going forward? Where are you seeing the most potential to add value in the business to exploration? This is an interesting question because we are not doing infield drilling at any site. So we know that we have some good grades in Masabal Verde, copper and zinc. What we are doing is checking. This will not change the needle. What we are doing is risky exploration at Masa Valverde, checking two lateral zones, two parallel zones to Masa Valverde, which are called Campanario and another one is called Mojarra. In all of them, we have cut sulfites. Some are better grades than others. And it's a matter of following this kind of mineralized levels. The good thing here is that we have proven they have proven that the geophysics system, especially fixed loop EM, ground level, works well. combined with gravity, and we are systematically testing. Sometimes we only intersect the parets. Sometimes it's all as two spots. Sometimes it's just paret in the shells, but this is the way. Potential. I think the best potential is to find another deposit like has been done in the parallel belts. I mean, there have been new discoveries one place called El Vida, another one called Magdalena, which is a major world-class deposit, which was only a few kilometers away from existing known deposits. So that's a matter of, I would say, a little bit of persistence and luck. We have 10 million euros in exploration budget. We recently hired a former exploration manager that was responsible of several discoveries in the Parrot Belt. And we will continue that way. Once we get the permits of TOTO, we also intend to start a big exploration program there because the mineralization remains open in basically all the directions. Does Atalaya have any assets outside of Spain left over the IMED days? Nothing left. We still have some shares of Kefi Mining that the previous management of IMED decided to invest, self-invest. And basically the value is asymptotically towards zero. So it's going bad. Besides that, we don't have anything. Could Cesar give some little more color on the tax issues with moving to the main market in a firmer timeline? Cesar, I think you have the response.

Yeah, just to be clear, there are no tax issues to move to the main market. So the tax issues arrived when we tried to migrate the company from Cyprus to the UK. that was basically as a result that the uk law uh doesn't admit to our determination process and therefore we need to incorporate a uk entity and that uk entity would make an offer to buy all the shares of the cpu identity and that offer will trigger some taxes in Spain to all the shareholders of Atalema and PLC. But again, this is the reason why we call off the process of migrating the company from Cyprus to the UK. And there is no question on that. But migrating the company from Cyprus to Spain has no tax issue. And listing the move up from AIM to the main market has no tax issue. There's no trust for the company. So we don't have any tax issue for the current project. And all the taxes were related to the UK immigration, which is now abandoned.

Okay. What's the relation with a lawyer, a co-lawyer that came to AGM once in London? We invited her to see the dams and is she now a partner rather than a foe? Well, I think they have kind of forgotten us. They have given up. So far, we have been... They always complain, even they complain when we are looking for the permits of ELEX, but they always try to complain through the administrative process, not anymore through any environmental reason because really there is no reasons. So I think they kind of... We are not the target anymore. What is the current status regarding total project? What are the upcoming milestones and any change in view on the probability of receiving the permits in the project? Look, I've been told personally that we will get the permits. So for me, it's a matter of when, not when. Unfortunately, the timing with politicians and civil servants is very slow. We have had elections in Spain twice, municipal and national, which created a kind of uncertainty. The municipal elections made some changes in the high level at the Junta de Galicia, the regional government, because the former the former equivalent to the Minister of Industry, who was a candidate for one province and had to leave, and he was substituted by a young lady. This lady, I mean, we have had contacts with her, and she seems to be quite supportive, simply asked us a little bit of time to get through the file, but told us that everything we had heard was very positive. Milestones. We expect to receive some news in September to see if our project is accepted as a project of strategic interest. If this is the case, the timelines for permitting and lots of other things are reduced. If that's not accepted, it doesn't mean anything. It simply means that it goes to the normal route. And what's the next milestone is starting to public information of the project. In theory should be quite straightforward because in the last time we presented the papers, we had 15 reports received from the administration, 13 were positive and two were questionable. And based on these two, we receive a negative environment by declaration. these two departments now are totally positive and they have been explained the changes and they are keen to give a a positive report so i don't see any reason why would we know at all and so i think the possibilities are extremely high the timing is is the difficult part because the anti-mining groups anti-mining or anti-development or anti-everything. They're also opposing, for example, windmills, even although wind is considered a very environmental friendly generation. They're opposing using the legal, the small corners of the law, trying to delay the installation of parks. They are simply people that are trying to slow things And this is something that's worrying them, the local administration, because it's just collapsing the administration, the civil servants. So it's something we have to live with. And in the administration, they're putting in place new laws to streamline permitting and hope that they give some push to all this permitting, not only to us, to all the rest of activities. I like this one. Your current target to be 1 billion pounds market cap? Of course, I maintain it. That's the minimum. I don't know why we're not much more. There's another question saying, anything management can do to increase liquidity? Trafficking the Chinese are supportive shareholders, but lack of liquidity keeps shares undervalued. As you know, the Chinese shareholder has disappeared now, and that has been placed into institutions. So now we only have Trafigura, which is 22%, and it's very passive. And the rest are institutions, but nobody wants to sell. I think the liquidity is all coming from private hands, and once in a while, some higher volumes when some institution wants to buy. Well, we are doing things. We are starting to see investors, family offices in the UK, in Europe, in Switzerland starting in September because I think the moment we create more buyers that are able to see the value, the shares will move. ELEX, obviously, we are very excited with this. Are there any process that we can consider investing in? Well, not that I am aware. This thing of ELEX is kind of unique and especially unique for our purposes and for our deposit. Is the tailings facility expansion at Rio Tinto progressing as expected and on budget? And for how long will the TSF have capacity? Yes, this is progressing normally. It's totally on budget. We have with the current permits around 10 years of space. And having said that, we will soon start the permitting of a new tailings facility downstream of the existing one. to be able to hold more capacity and it will be installed in a valley, narrow valley, which will reduce the capex for the future. That one will not have a rush to get permitted, but certainly will mean a higher capacity for over 150 million tons. and especially at lower capital and operating costs. I have two other questions that came through mail, which normally we don't answer, but I will answer them. Toro, the commentary is the same. Just wondering what has changed in the ground in the last six months. Are we any closer to a solution? What are indicators? And well, yes, I mentioned that the main change here is the attitude of the local population. For example, just to give you an idea, the last month we have been given a kind of symbolic prize, symbolic trophy of the gold clam by the Fisherman's Association of the River Mouth of the river Ulla, which is a river that goes under Togo, receives the water of Togo, due to the efforts of cleaning the water and transparency and so on. Well, these same people were some of the people opposing in the past. So right now we are considered friends and we are doing a fantastic job of cleaning the waters of the past, and they don't see us as an enemy at all. This thing is transparent to the local, authorities. We are sponsoring the football team of Santiago and they have nice words to us and we are asked to be in this forms of green economy and copper economy with along with people with car factories which are happen to be Stellantis has a big car factory in Galicia so the fact that we are seen as a company for the future including presentations with the president of the junta and the the Consejera, the minister, I think is good. I mean, the relation is fantastic and simply, they tell us that simply they are overloaded with papers. That's the only reason of the delays, but nothing major. And the last one is, ELEX looks like it's taking longer and costing more. What does it maybe approach in 30 million? What will be a good result for the second part of the year? Well, for me, a good result would be to, as I say, to have some concentrate going through and demonstrating that it leaches well, as we have seen in the lab and in the pilot plant. having some ingots produced of high purity metals of zinc and cathodes of copper produced in my office show them tell it and and and yes it was it's going to cost for us i said between our our involvement and things that we have done and support and loans and accounting for everything probably yes approaching the 30 million um And the last question I have here, what is Atalaya ranking as a company producing in Spain? Obviously, many are not listed. So I think, well, there are not many producing companies now because there used to be one, which was Las Cruces, which is First Quantum, but they stopped the production this year. In June, I think they stopped total production. And the next phase requires a big investment, producing around 40,000 tons of copper. The biggest producer is Sunfire with Matza Complex, which produces around 40,000, 80,000 tons of copper. And then there's a small producer in the north part of Spain with around 10,000 tons of copper. And lots of other projects, but not big producers anyway. So...

in spain yes we are the second well i think i don't i don't see any more questions so i will pass it back to to you alberto cesar thank you very much that i think you've addressed all those questions from investors and of course the company will review all the questions submitted today and we'll publish those responses on the invest in me company platform but just before redirecting investors provide you their feedback which is particularly important to the company alberto could i just ask you for a few closing comments

As usual, thank you for your continued support. I like to see some names in the questions. We continue to deliver. It's hard because it's a little bit frustrating to see that the share price does not respond and the lack of liquidity. Maybe it's our fault, but I think it's eventually it will come. I think people still are thinking that the that the electricity prices are still high and we will continue to having high costs. And we just demonstrate the opposite. We will continue to perform. We will deliver on what we are doing. This year, we'll end up having this thing of ELEX, which is going to be transformational for the company. And hopefully we can also advance TOTO very close to the production. So we're in a good path, and thank you very much for your support and being there. I mean, in one side, I hate not having liquidity, but in the other side, I see, well, nobody wants to sell at this price, and so everybody must be happy. So thanks a lot to all of you.

Alberto, Cesar, thank you once again for updating investors today. Could I please ask investors not to close the session as you'll 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, but time should 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 and good afternoon to you all.