Atalaya Mining Plc

Good morning and welcome to the Atalaya Mining PLC Annual Results Investor Presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and they 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 received during the meeting itself. However, the company can 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 hand you over to CEO Alberto Lavandera. Good morning to you.

Alberto Lavandera Many thanks. Hello, everybody. Good morning, everybody. Thanks for being with us. Again, I have with me the CFO, Cesar Sánchez, and Mike Restainer, head of corporate development And if needed, they will also be available to help respond some questions. I'm going to go through the presentation of our results, which will include the main results of the last quarter of 2023 and the first quarter of the full year. And I will also give a bit of highlight of how things are going. and the forecast for 2024. 2023 was an excellent year, I would say. It was a positive year with, let's say, recovering back to more or less normal conditions from the operating cost point of view. We produced 99% of what we produced the previous year, and we did so even with slightly lower grades than we had in the last quarter, which are already were planned to be there according to the mine plan before we start getting the recoveries of this grades up but we processed 15.8 million tons with good recoveries 56.6 so we achieved a cash cost of slightly less than 280 and only cost of 309. this is consistent with the guidance and i would have to say that this is these are quite remarkable good costs when you consider the type of grades we were able to maintain to maintain the cost unit costs per ton well under control this is basically due to the lower electricity prices and of course we had other this this lower electricity prices have an effect in other things like balls and the price of lime and price of rain so the whole thing flows down. In the other hand, we had some higher costs in the mining, not because our unit costs were higher, simply we had to move a little bit more tons, more tons that later we will not have to move, simply because we needed to move tons from the federal existing, federal Colorado pit, so that we could move our key equipment, the contractor could move the equipment into the stripping of San Dionisio, which has already started. San Dionisio, just to remind you, is an area with a much higher rate. Well, with all these operating parameters that went reasonably well, we had an EBITDA of 73 million euros, which is higher, almost 20 million higher than the previous year, mainly due to lower operating costs. Cash flows were also higher. And we invested this extra cash flows produced from operating activities in a prudent way so that we could maintain our net cash position under control. And we invested that in building the helix and also building the solar plant. which were 18 million euros in one and 12 million 30 million euros in all so basically around 30 million euros so with all this uh considering that we are things are going as expected and that the operating costs are under control the board decided and we had a good financial position the board decided to to give a final dividend of 0.04 which uh basically uh tops a little bit what we had already so it's it's slightly it's around 20 higher than previous year but that was not only not not only that i mean we had lots of other things going on uh we we continue with our plans to move away from aim into the main market and this is all the papers are going we had slight delay due to the our last attempt but pretty close to christmas and your end but finally this thing seems it's going to be happening in the first weeks of april so only one month from now we also proposed the domiciliation from Cyprus to Spain, which basically will allow us to be included in the indexes. And since we didn't have any liquidity in Toronto, we decided to cut costs there and to remove the listing in Toronto. So right now we basically will be listed in the main market starting in April. The board, we continue to reinforce the board. Neil Gregson was appointed the lead director. But we also continue to reinforce the board basically to fulfill the conditions set by the new main market listing. And we will be strengthening the board in the next months with new independent directors. Although our board right now is basically formed by independent professionals. From the assets point of view, we saw the first copper cathodes coming out from Helix, although these were only a small amount during the startup of the commissioning of this plant. And the plant continues to be under construction. Right now they're leaching with zinc. We also started moving the waste in Sandinicio in order to get to the ore as soon as possible. and also mining equipment has been ordered and is about to arrive to be able to get this additional waste movement. And from the permitting point of view, we continue advancing in total. We got a permit to extend the mine life of Rio Tinto, including a huge tailings expansion, which will give us space for the extra tonnage mine at San Dinizio. And we also got the mining permit for Massa Valverde, which means we will likely start at the end of the year a ramp to access the higher grade that's closer to surface. From the sustainability side, we continue to set strong targets. We advanced the construction of our solar plant, which there is some delays there, but it's going to be to be up and running in the second quarter of this year. And of course, we continue with the water treatment plants in total, which are key to get the permits. And of course, we publish a new sustainability report and the next one is going to be coming out soon. We've already seen some drafts and it really looks very professional and very nice so going to the details of those i mean most of it has been already explained but i think the graph explains very well what happens i mean you see you see in the graphs in the right side you will see that we pass more tons almost a record remember this plant was supposed to be treating 15 million tons and we have been able to treat 16 million tons equivalent so the plant is running well uh recoveries in the last quarter was slightly lower due to the lower grade and production was similar to previous quarters but since we had some good production in the second quarter uh the overall for the year has been quite constant and you see that the revenues are similar to to the previous year so basically although the copper price was slightly lower sorry production was slightly lower the revenues were basically the same a bit that was slightly lower in the last quarter but overall in the year you will see later that it has been better than the previous year and the net cash position stayed very similar to our previous levels even having invested around 15 million in this quarter and our profits as I said before were similar to previous year even with this low quarter Coming back to the whole year, revenues were slightly lower due to lower cover prices and slightly lower production. But since we had much lower operating costs, we had better EBITDA and better profits and much better cash flow and it allowed us to continue investing in the operations in the future. And we still kept a very good cash position at the end of the year with around 120 million euros and a net cash position without any net debt of 54. Working capital has gone down a little bit, but that's simply due to our short-term debt. It's a mixture of short-term and medium-term debt. Medium-term meaning three years and depending on the maturity of that debt, which normally we can't. we can roll because they are, yes, revolving facilities. It doesn't mean too much. But it shows that our financial position in the last three years, in spite of this high cost structure, have been maintained quite well while we continue to invest. And this is fully disclosed in slide 10, where we show the costs in a quarter and the cost for the full year second column from the right you will see the year 23 what we are discussing compared to 22. the main difference as you can see is is much lower cost from processing that's mainly due to electricity but also due to lower line costs lower steel balls lower things other things like mining slightly higher due to the as i said before more material in order to get to the better grades of San Dinizio and overall lower site costs. The rest of the things like freight and off-site are quite similar to previous years, slightly lower, but we expect to see much better costs in this next year. We will go later with the guidance and there are reasons for that. The treatment charges are falling down, freight is flat or going down and we also expect to see lower inflation in other parts. Corporate costs and the rest of things are very similar. The main question here is much higher in capitalized stripping and this is due to the start of the activities in San Dionisio. This is as expected. As you remember, there was a plan to mine San Dionisio and Cerro Corral simultaneously and the first movement of material was going to happen in In 24, we accelerated that a little bit because we wanted to see if we can compensate the slightly lower rates that were predicted in this year as soon as possible with the higher rates that are going to be found at the Saint-Denis Pit. Overall, there's an important reduction in all-in sustaining costs. I should probably remind here that that within our capitalized stripping and within our mining costs, we have the cost of the contractor includes the purchasing of equipment, the replacement of the mining fleet. And this is very relevant since, for example, just to get to the Sandanisi area, The contractor is buying, has already ordered and they are arriving five new trucks with much larger size, a 50% larger capacity and excavator that's double the size simply to expand. And this is totally out of our cost. So within the cost of excavation, those costs are included and you don't have to account in addition to that for the purchase of a new mining fleet. Most of these good results, as I said before, are due to the lower cost of energy. You can see that 2023 has been much lower than the horrible year of 22. But I think the important point here is also to show that 24 has already started in a very good mode. We have had around two months where the prices have been around 50. So well within the prices in the long term. And remember, as a reminder, that we have hedge, we have covered around 30% of our production for the future at those prices around the 50s. Plus the solar plant will provide price at much lower. So our future cost will be similar to what we had in the days 2021 or even 19. So that's a big part of the equation that gave rise to much higher costs during during 22 are I believe we are gone just to compare with with peers into the industry and we always do that not to show ourselves versus others simply to show that due to the way of reporting that some people do not include in the c1 costs the the the mining cost the capital the capital required to replace the fleet in the mining costs our c1 costs are normally higher than average but later the the difference between c1 and all in costs are much lower which means you can see there that in spite that the big increase in the left side of the columns the big increase in cost that we we saw in 20 due to the electricity prices. Since then, we have been able to control the costs and to keep them well within the industry average, which I think is relevant. Because at the end, what matters is not the C1, it's the all-in cost. You always need to replace fleet and you always need to do ongoing work in your mines. So with that, how is 24 looking? Well, we expect to produce more or less the same price. or we expect to process around, same thing, 15 and a half to 15, maybe a little bit higher, million tons through the plant. copper grade it's going to be slightly lower in the first part of the year but higher in the second part when we access the higher rates of some initial and recovery rate we also expect it to be around 85 with all these parameters we usually expect a transitional year a year that will have around also around 52 000 tons of copper similar to the previous year with cash cost i would say very very similar to to what we had this year With that, of course, depends on the copper price, which so far seems to have started in a good way. Our EBITDA should be equal or higher than previous years. And the extra cash flow, where we will use it? Well, we'll use it to finalize the solar plant and helix. not because there are new investments simply their investment coming from previous year that are rolled to this year but the main thing is to move the the road and and relocate the electric line and so on uh at san denisio uh which is takes most of the investment uh part of this can could probably be going into 25 but most of it is going to be done in 24 because we need to get to get to the better grades sooner rather than later to benefit from the higher grades and to be able to get lower costs. So in addition to that, within our normal investments, we continue spending around 5 to 7 million into exploration, probably a bit higher this year. And of course, this can change if we have a discovery. So, for those of you that are not familiar why we are pushing so hard in St. Ignatius, because the resource rate is basically doubled than what we have. In the picture that you have in the center, you will see the pit of Cerro Colorado, which is the one we are mining right now. There you see two things. You see in the far right, you see we are advancing with a pushback. You see that there's a new area there that needs to be taken down in order to access areas of the north and the south. Sorry, in the east and the south. But at the same time, you will see in the first part of the picture that the machines have already started pushing in Saint-Denis. And this picture actually is slightly old because it's already advancing very well uh things that you can see in the in the picture in the picture that i'm showing now in slide 16 is several things in the far end you see a whole gray area that's the solar plant that you can see is basically covered already with panels and in the bottom left corner you see the edX plant In blue is the thickener of the tailings. Elixir is important because normal differential flotation applied to polymetallic sulfides in the parrot belt will give you recoveries of 60-70% of copper, 70-75% of zinc. This is basically based on historic reporting and also in our own test work. By applying Elix, the combination of flotation and Elix itself goes up to 85% in copper sink. This is a huge difference, and we are seeing that's why we are so keen in getting this up and running and to prove the concept in order to apply it in the longer term. it's going well we started the year the plant as you can see in the right side it's not a small plant it's a complex plant with lots of pipes lots of tanks and electrolytic cells and leaching system it's a quite novel system which i cannot give too much details and in January 24 when they were leaching some copper concentrates they got very clean solution enough to produce very clean copper cathodes, totally commercial, grade A, 99.995 copper content without the use of Essex, which is absolutely incredible and intriguing. right now they're working with other with conditions to remove sync and i can report verbally that the results are coming very well but of course this any startup and especially when it's a startup of something that's totally new needs time and they they still need some time to finalize this and i don't expect this to start running smoothly until mid-year because it's logical they need it works when it works but then suddenly a ball breaks or where a pipe is leaking and they have to repair it and things go smoothly. In addition to that, they started with a small team, but right now they are engaging people and they are training people locally, normally, and they will be continuing to recruit people during this next few months. The solar plant had some delays and this picture is in February. Now it's much more advanced than a few days ago. You can see some small holes in the middle. There were some delays when including the supports because of rejects in the polling tests. But the plant is very advanced and the main connection to the to the electric line to the high voltage line has already been completed we had to stop during a few days in this quarter and the service station is in the far end so we will not need to to stop to make the connection to the to the electric to the solar plant a little bit of delay in this plant which is disappointing but in the other hand as i said before we had very low electricity prices during the first quarter and is going to be also low in the second quarter. So we took advantage of these good prices and have locked in prices for basically most of the second quarter. So any delay on the start of this plan will not affect our costs. To the contrary, it will be very similar or lower than previous years. But we will hope to get this thing going during the second quarter. And total is not much to say. It's not much to say, but there is important thing to say is that we had elections. There were elections in in February in the regional elections and we don't mention too much obviously in the press release because this is something that in theory does not affect us but what I mean in theory the reality is that obviously there was a certain uncertainty of the results of the elections which were won by the conservative party with full majority not because any specific party has more or less support simply because obviously this continuity is is very good to to be able to to process our papers we have applied to we have applied uh for our project to be included in the strategic project strategic interest project of strategic interest which is a new law that came into into stream in in first of january and we believe this is going to be included and approved and as soon as the new government is in place, which is expected to happen sometime late March or early April, we believe that our requests will be accepted. This means that the permitting lines are speed, are shorted and there's a much higher confidence that this thing will be we'll see the light sometime later this year an important point is as i said before is that we will be starting to to be trading in the main market sometime in april and later we'll also be we're trying to get into the into the uh indexes a little bit later So overall, I can cite in 24 where we have lots of targets. ELEX to confirm that the solar plant will reduce our costs and initially we'll as soon as we try to get to the higher rates as soon as possible. The permitting process, hopefully we get this as a strategic nomination, which means it will be a further improvement. Right now, the situation with the stakeholders is excellent, with very good relations with everybody. And we will continue exploring and, of course, passing to the main market, as I said before. So our future is very clear. We have said we don't want to be a single asset. So we want to have the total as soon as possible. We continue to look at all the things. And I think that in less than three years, I see our company getting to the 120,000 tons of copper equivalent level, which means copper in the sink coming from the other areas of polymetallic. which is basically doubling our copper production, the same thing that we did, that we doubled it in the first years of this company. So I can cite in future, and since we are one of the few pure copper players in the copper market, I think there will be a strong interest in these years that we are seeing an important change in the... in the upper market perception. As you probably all know, we have been going back to the $4 per pound levels with the difficulties in production for mines, with the waking up after the lunar period, the new year period in China. The supply side is a little bit stressed, let's say, with Codelgo facing problems, with the Panama shutdown, with Anglo-American and Quebrada Blanca delays. So I think the time from the supply side is bright. From the demand, we continue to see the steady demand, especially from renewals and new energy transition is going all over the world, in India especially. is picking up so there's lots of good news expecting to come from from the copper price we expect and i would say that this is uh this concludes my my my presentation probably longer than expected but fine

Perfect. Alberto, thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q&A tab situated on the 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 your invested dashboard. Alberto, Cesar, as you can see, we have received a number of questions throughout today's presentation. And, Alberto, if I may just hand back to you and kindly ask you to read out the questions, give responses where appropriate to do so, and I'll pick up from you at the end.

Okay, thank you very much. I'm going to be reading the... There's lots of presentation questions here. I know that 23PA are retained to include mining ore from Saint-Denisio in 24. where are you currently where you are currently wasted stripping so does the current 24 guidance 5153 include all process from some initial and if so how much in other words is final permit of some initial with its high rate of risk of potential upside for 2000 guidance thanks well there is a mostly most of the excavation is going to be waste but yes we will be mining through some areas of of better grades which will be processed so there is a small amount not much I would say roughly, I don't have the numbers in my head, I would say that from the 15 million tons process, I would say around 10% will be coming from San Dinisio at higher rate. And the permit, in theory, should not affect us because we have a permit to make this first interim pushback. I mean, only if the final permit of the full perimeter of the San Dinisio was delayed beyond, I would say, first, second quarter of next year will probably start impacting the access to this grade. Doesn't mean it will impact the production because we will be mining from federal Colorado, but obviously the delay, it would mean a delay of better grades and improvement in copper production. Could you provide an update on commissioning the ramp up the helix? We just do this half. In terms of economics from what you are currently seeing, does production of zinc make sense at current spot prices or you would prefer to look at producing copper? It's a very good question, actually, this last part, because we could produce copper and we could produce zinc. But right now, our plans, and very likely this is the way we will start, is we will be taking away the zinc from the copper concentrates, but removing the zinc, but keeping the copper. So we will stay producing copper normally, but we will remove the zinc as contained in these copper concentrates. We have some areas that are available to be mined almost immediately that have higher zinc, which are not in our reserves, but also contain higher copper within the Theracorado pit. And that's where we will start. In the term of economics, it will not make a huge difference because this year is a year of ramp up. And we are only looking at the plant capacity of 10,000 to 15,000 tons of zinc. And this is starting in June, ramping up slowly. So I don't think economic will make sense. I think it will make a huge difference. I think the upside will come from the application in other parts of the belt and application of specific in the lower parts of Saint-Denisio. How is it going to start? Well, right now, as I said before, they are already contracting some people. They already have one full shift working, not three shifts working from Monday to Friday, but they stop during the weekend. The idea is to train all these people until during the next couple of months. This is not a new technology, absolutely new. And of course I expect things to happen, some issues to happen, The idea is to start ramping up until the second quarter and then start slowly going up, bringing more capacity. More capacity will come from better availability and stopping the small hiccups that they had with filters and pipes, things that are not related to the leaching itself. The next question is share by back. Are we any closer to this being started? uh no we have not decided to do anything with this i mean there are some question marks about if we will reduce the liquidity i think we'll wait and see what happens with the liquidity once we get into the index uh once we get into the index and once we get into the main listing i think this will probably change the liquidity and then maybe it would be this would be possible Atalaya does not seem to be included in any ESG rankings for the mining sector. What is being done to improve this visibility? Well, we are providing now with all the data to send it to the providers of these rankings. So hopefully this will come into place this year. Also, we are publishing the 23 report and I think we will be ranking very well because actually we are doing

things i would say much higher level than others the other day if i may ask uh but just to be more specific so we we have engaged with the major sustainability rating companies such as system analytics msci and and ISS and we have done a lot of initiatives and they are all aware about the initiatives that we take in which is you know very broad you know things that we have done things you know going through the implementation of CBDs reporting or reporting the climate change getting to some target in the midterms. And all this is being considered. So I'm expecting that these sustainability rating agencies to start considering this very soon.

Thank you, Professor. Another question in this line is what other green measures, not including energy generation, is Atalaya implemented or has implemented? For example, electric furnaces, biodiesel, hydrogen. Well, look, so far, hydrogen is not yet economic or even feasible for trucks. Biodiesel could be used, but there's no availability in the area where we are. Electric furnaces, they are not applicable. But there are several things that we are doing. One is a much reduced level of water, which are not specifically energy, but they also count for ADSE. We are recycling... 85% of the water. We only get water from new areas, from dams, specifically to avoid what we lose from evaporation. We use absolutely all the water of the rains on top of the pit after cleaning it. But the main big change will come with the success in the application of Elix. Elix is a leaching system that basically treats the copper concentrates with electricity. And electricity that can be solar, can be wind. Spain has a huge generation of wind and solar. And this will avoid, first of all, the transport of concentrates. And second, use cathodes directly instead of burning them in furnaces. So this is a huge change. I think we can probably change the way things are done in some areas. We'll never compete with Smelter because Smelter, besides being ESG friendly or not, they're very, very efficient because they sell the sulfuric acid, which is needed, by the way, for agriculture, for fertilizers. So they sell the slag. They're very efficient. But I think Elix is one of the big contributions as well as water control. Can the dividend just indicated be paid as an interim dividend before the AGM and rid them of the situation to avoid withholding issues? Cesar, can you respond to the, there are some issues with this?

Yes, I think it might be a little bit difficult as the year is now completed and behind us. I mean, the board of directors proposed to pay a final dividend for the year and there might be some legal issues around pay on a year that is completed. I think the process continues to be that the final dividend must be approved by the shareholders. And we're expecting that will happen once the company is already paying. So I'm happy to have a look at this, but I think we will have limited options here.

A startup of solar, next question, a startup of a solar plant is late if you do. As it's near term, can you be more precise, please? I think May May is when we expect to have the connection of the grid of most of the plant, which is a good timing also for solar plant. I mean, that's the last estimate. So the delays were coming from some supply issues, delays with the provider of some materials for the service station of Endesa, of the main company, not ours. And also, as I said before, with the supports of the panels that in some places they did not pass the quality test of what they call the pull test. Basically, it's a way to check that the panels are not going to be flying out if there's a huge wind coming. And this means that you have to reinforce them by putting some cement and so on. So this took time, but it's already finished. So our latest estimate is made and should be up and running. Another one is, is Atalaya a member of the International Copper Association? No, we are not. They produce a comprehensive report in 2023 called the Pathway to Need Zero. There seems to be no mention at Alaya in this report. Don't you think ESG profile would be higher considering what we have implemented so far? The first question, yeah, we will see how we can become a member. Really, we have not thought on that. And the second thing, I think the profile is going to be increased. As Tashar said, when they receive it, we have already been engaging with these rating agencies. because the way we are doing things, I think it should be much higher. Next question is, will you provide color on the project's capex? There are still no details on the sustaining capex. Will you provide more detail on the sustaining capex for 2024? How much stripping in Atalaya planning to capitalize in 2024 for San Domingo and Terra Colorado? Well, I think, yes, I think we have provided the guidance. I think the typical way of how to capitalize is basically the excess of stripping that you do in a year over and on top of what's the average of the reserves is what you capitalize simply for accounting rules. It does not affect the overall all in sustaining costs that we always report. During 2024, as I said before, most of the work in Sandinissio is capitalized, I would say all, because basically it's removing, stripping, access, moving the road, moving the electric lines. And in strategic projects, we have just said what we have. It's basically Sandinissio preparation and finalize what has been going during this year.

Alberto, if I be a little bit more specific on the sustaining capex for 2024, so we historically we've been spending around 8 million, 6 to 8 million, closer to 8 million. This year, as we're investing on the pre-stripping of San Dionisio, the plan is to spend around 6 million on sustaining capex.

The next question is, thanks, Professor. It seems that ELEKS is showing promising results. When does Atalaya expect to provide more details about ELEKS' performance forecast? I would say as soon as we have them, mid-year. I think we will probably announce the production of zinc material as soon as they start commissioning. I would say mid-year. When we see that things can go more or less steady, I think we will give some guidance of what But so far, the results from the recovery point of view, which is difficult, partial difficult, are okay. What shows some... Looking to show some hiccups is in basically typical things of commissioning, like water valves, filters, clogging, until they fine-tune. It's quite normal with commissioning of plants. The next question is, At all this energy generation, can you give more details of any plans, if any, to expand this energy production? Well, we had a study and we had a measuring tower to produce wind, 18 megawatts, but we received the results and it was barely economic for self-generation. So when you see that there's a huge wind generation happening in Spain and solar, with the future prices being around 40 euros per megawatt hour, it's very difficult to be competing with this. Although the energy generation will not be ours, but it will be generated by wind and solar because Spain is growing big time. And the next question actually mixed with this is going forward, what will be the big with wind and solar in five, 10 years? Look, besides the 22% we will get from our solar, that's ours, the rest of, let's say, 80% to simplify, the rest will come from the grid. The Spanish grid, normally, it's around 80 to 85% is non-related to CO2. Around 20% is nuclear, and the rest is hydraulic, wind, and solar. with the wind growing big time and solar also. But solar, as you know, is intermittent. So I think that will be the profile in the future. It will be probably growing to 90% in general. That will be wind and solar and hydraulic. And that's 90% of the 80% that we don't consume. So I would say probably our copper and our production will be one of them. better from this CO2 point of view, because it will be basically 90% of the 80 plus over 95% or 92% related to wind, solar and hydro. Continue with energy generation. Will these assets be incorporated into separate company owned by Atalaya? Advantage is of raising debt from the separate unit. If it reaches a critical size, could it be IPO-ed? Could it be considered? I think our size is very small, and I don't think that would be a good thing. We may think in disposing of our solar plant into an electric company to strengthen the balance sheet and take it away. It's something that we can do, sign a long-term PPA with the supplier and something we will investigate. But IPO is a very small amount. It's not worth that. Another question is, how are the evolving rates in Cerro Colorado and reason to worry? When you should expect to reach 60,000 tons thanks to Sandinicio? I think starting with the last one, 60,000 tons, we'll see them in 25. And reason to worry, well, we have had a couple of quarters with lowish grades, lower than normal, similar to the mine grades. But if you look at the PA that was prepared in 21, those numbers of lower copper grades were predicted. So they were expected to happen. in 24. simply because we the best grades of the cerro colorado are in the east and far east and in this west basically under the road and there is slated to be production in the last five years of of the life of federal which means we are going through lower grades but this is planned i mean this is nothing that is it's in the pa that's published in our in our web page in relation somebody asks me about artificial intelligence if we have considered practical application of this new technology for atalaya not as such But we have lots of things that are doing this in a practical way, like optimizing the consumption of the meals. Small things that have been, we are in the leading part of that, but not AI itself. I think this is something that has been done for a few years already. If an acquisition is made abroad in a more geographically challenging environment, automation and running the mining website may be a strategy. Is this something that Alaya has looked into? Have you looked into truck automation, including in Spain? Yes, we have looked at truck automation. It's not so economic in Spain due to the low wages. I mean, our drivers, are probably cost around five to seven times less than in australia so the advantage of that is not that clear running from from from the distance well actually can be done because It's not a problem at all. Right now, I or anyone could look in their telephone or computer how the plant is going. We can start it. We can stop it. We can do everything. Everything is done automatically from the control room, but with access to any of the computers that are authorized. So this, of course, could be done. If you had to go in a challenging environment, the main question here is always maintenance. Maintenance and getting good people is the difficult part. Anything you can say in respect of timelines for permitting? Well, we expect to receive the approval of the project being considered strategic interest sometime in, I would say, April, maximum May. That speeds up the permitting and also almost is an endorsement of the government, of the regional government. why is that is because before declaring it strategic they have to go through a whole evaluation of of of the project from the environmental point of view economical point of view social which means it's very unlikely that the the departments of the of the government regional government that are reporting and making the reports for the president and the council saying that this is strategic will will change their their their views just two months later so I think that will be a huge endorsement and we expect to see this this change and I would say April maybe May you never know because there's no timeline but we believe it's going to be soon sooner rather than later considering that deluxe has theoretically was theoretically until it didn't build the testing was theoretical until eight year atalaya build the testing plant and then move into production how do you intend to protect your ip is there a way to build a jv company with helix to monetize the technology further Well, the IP, we have the exclusivity in the private belt and we have the rights of refusal if the technology is sold somewhere else. But the technology is not ours. We are financing Lain technology that has it as a single person company. which we are financing mostly with loans convertible into equity in this company. So we have a participation if this technology is monetized. But unfortunately, it's not ours, although we have lots of rights attached to the success of this. Since we are not longer incorporated into Cyprus and we have no takeover protection built-in articles, what is the fair takeover value? How would you hope to protect against a hostile takeover? Well, fair takeover value, it depends on what the shareholders decide or approve. I think everybody understands that we are quite far from our fair takeover value. And the best way to be protected is to have strong shareholders. and we have Trafigura, we have Cobas, we have Muza, we have some that with five calls, you will get over 50%. So it would have to be something that at least these five entities would consider it positive. So a hostile takeover will be very difficult to happen into our company. And if it happens, of course, we have a defense strategy and we have some banks already in place for a defense. What is our current relationship with Sunfire and MATSA? Is there a dialogue? Well, we have a dialogue from the technical point of view and always try to see if we can optimize things, but it's nothing else that I may think. Eventually, I think we'll have to agree in areas that are common, where we have tailings, where there are deposits that are very close to each other, where maybe we can optimize. Our debt is very low, which makes us more attractive for any potential bidder. Do you plan to address this acquisition? Well, we are looking at things as usual, but it's better to have a very low debt or very good balance sheet because it will give us more protection if there's any difficult times. Another question is, it was mentioned that TOTO permitting was progressing swiftly. What's the next key milestone for TOTO? When do you expect to have the outcome of the permitting process? Well, as I said before, the next milestone is the consideration of the project to be a strategic project. And later, the permitting will probably be the last part of the year when they have gone through all the environmental evaluations. On CAPEX, you have guided 24, but you would would possibly provide a bit more color for 25. As a reference, consensus is 135 million euros. How do you feel about this number? And will you please talk that your expectations are? I think the reason why it's 135 million is everybody's expecting total. And I think it's reasonable. I think total will be around 250 million. So it's higher than before. And I think the expectation as consensus is that we'll have about half of that cap takes to be incurred in 2025 because it's when we expect to start closing TOURO. TOURO very likely, if we get the permits at the end of the year, in the last quarter, we will be constructing it in one year and three months. We have everything ready to move very fast, so most of the expenditure will happen in 2025. shareholder structure giving Trafigura an exit from Mazza. Do you have any view on their long-term position with Atalaya? Is there any dialogue with Trafigura? Well, Trafigura, we don't have any dialogue, especially. We have one person of Trafigura on the board, but we don't have anything special. We know, well, we know, no, we never know, but we suspect looking at the history, that obviously there will be an exit at a certain time to monetize their investment. They have been here already, I would say, seven years or eight years or nine years. So if you look at what happened in other cases, they have exited. But when they will do it, well, I'm sure they will do it in the time where they believe they have a good return. But we don't have any special dialogue with them about this. next question solar plan could you remind us what the difference it makes in terms of cash cost per pound look um uh it's around 22 of the electricity that will become let's call it for free it will be in our balance sheet so 22 of electricity if the if the total cost was around let's say 30 million 22 will be 6 million saving. 6 million saving is around 6, 5, 6 cents per pound. If you consider rough numbers, you divide by 100 million pounds. Alex, could you remind us the commissioning timelines? When might you consider permitting more capital to this project? Well, I have mentioned, I mean, commissioning in this next quarter and then more capital to this project probably at the end of the year or next year if we consider that it can be applied for Asalberri from other areas. We always use a contractor for mining. Why is everything outsourced? Any plan to bring it back in house? It's possible to bring it back in house, but we have made all kinds of numbers and a contractor has a very low margin and has something that we don't have, which is the access to sell the machines later at a very good price. And that's the reason why in Spain, most of it is outsourced. uh simply they are more economic than than anything else uh treatment refining charges potencies have fallen dramatically year and year are you able to quantify the tailwind the generation of talaya that we should expect in 2024 well normally we are through through benchmarks so the benchmark of this first part is already matched and it's going down of course But in the future, it can be very interesting. Normally, these ARCs, I would say, represent around 20 cents per pound, 24. So if this are less than half, you can consider it would be 10 cents per pound. if it continues to be like like that i i don't think it will continue so much uh to be honest simply because i suppose it must be some discipline and stopping some some smelters otherwise otherwise everybody will lose money because at this at this spot prices the smelter does not make any money and and they better stop Does the 25 million tons wasted sweeping guidance for 24 includes on the initial? No, that's the waste on Terra Corral, which is roughly a 2 to 1, slightly less than 2 to 1 cost per ton. How would you be thinking about margin uplift, even from 25 upwards? Very early to say. I cannot say how it's margin going to improve. i think the main key point of elix is is to use it on polymetallic which will increase recoveries and of course by increasing the recovery you lower your costs and get more tons could you could the forthcoming announcement dividend be paid before in the room isolation i think this has been answered because it's a bit complicated at the moment atlantis one horse ride is the It's a one-horse ride. Is there any possibility of expanding to another couple of countries, like Spain, for example, Congo, another country? Well, we are looking at other places, certainly not Congo. But, yes, we are looking at other things. Congo, it's seven years' experience in Congo. It's not an easy place for companies, and that's why you only see there Glencore and Chinese companies with some Indian small companies. There's a reason for that. What could be expected oil costs when the company gets to those 120,000 tons in three or four years? Closer to two and a half. And what are the key movers up and down? Well, yes, absolutely. The drivers will be around closer to two and a half. But volume wise, I mean, this is a set of different operations a group of different operations, not a single operation of 220,000. So the effect in all in cost is not that high. It's adding several companies, not a larger operating company. So the only thing that goes down is the GNAs, which are divided down. And also the fact that the costs in total are going to be lower. And the costs at Sandinista with the higher rates are going to be, if I remember well, are average around $2 per pound. So substantially lower than now. Next question is, could you consider alternative business and non-cooperative take advantage of Italian assets, land, clean energy building, warehouse and structures, 24-hour operational, both data centers? Well, not at this stage because you need people. You need experience. And I think we have enough time. enough troubles with in our hands and we have lots of projects going on that we don't even report until they are already materialized so we'll concentrate in what we know best well we have gone through one hour there's no more questions and been lots of questions and try to run as much as possible i only want to we are what out of time i want to thank you for for attending and and being so active as usual. And if you have any question, please let us know with our webpage or any of our executives. Thanks very much.

That's great, Alberto Cesar. Thank you very much indeed 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 would like to thank you for attending today's presentation and good afternoon to you all.