Annual Report
FOR THE YEAR ENDED 31 DECEMBER 2023
Management and strategic Report
Company Overview
Our Purpose
Performance Highlights
Atalaya at a Glance
Letter from the Chair
Directors’ and Officers’ Statement
Basis of Reporting
Our Business Model: Strategic Focus for Growth
Market Overview
Strategic Framework
Managing Our Risks and Uncertainties
Operating Review
Financial Review
Other Matters
Sustainability Approach
Our Commitment to Sustainability
Corporate Governance for a Sustainable Future
Professional and Personal Development
Safe Operations
Environment and Climate Change
Driving Local Development
Innovation and Technology
Non-Financial Information Statement
Corporate Governance
Board Leadership and Company Purpose
Letter from the Chair of the Nomination and Governance Committee
Atalaya’s approach to Governance
About the Board of Directors and Committees
Division of Responsibilities
Executive Committees
Audit Committee Report
Nomination and Governance Committee Report
Physical Risks Committee Report
Sustainability Committee Report
Remuneration Committee Report
Annual Report on Remuneration
Statement of Directors’ Responsibilities
Financial Statements
Independent Auditor’s Report
Consolidated and Company Financial Statements
1 | Atalaya Mining plc 2023 Annual Report
Contents
3
3
6
7
8
11
13
14
16
18
21
24
42
47
55
60
60
62
65
67
70
72
75
77
80
80
80
82
83
94
96
97
101
104
106
107
114
117
118
118
123
Notes to the Consolidated and Company Financial Statements
Additional Information
Glossary of Terms
Shareholder Enquiries
Contents
129
192
192
196
2 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Company Overview
Atalaya Mining
Ore mined
Ore processed
Copper contained in concentrate
Cash cost
AISC
Realised copper price (excl. QPs)
t
t
t
$/lb
$/lb
$/lb
2018
2019
2020
2021
2022
2023
10,753,598
10,366,903
13,604,801
13,535,470
14,884,361
14,944,638
9,819,839
10,453,116
14,833,916
15,822,610
15,410,459
15,790,098
42,114
44,950
55,890
56,097
52,269
51,667
1.94
2.26
2.89
1.80
2.14
2.73
1.95
2.21
2.78
2.18
2.48
4.22
3.16
3.37
3.96
2.79
3.09
3.80
EBITDA
€`000
53,542
61,333
67,444
199,114
55,314
73,100
Working Capital surplus / (deficit)
€`000
8,435
3,598
(17,904)
102,430
84,047
68,618
Net cash position
€`000
33,070
8,077
(15,233)
60,073
53,085
54,320
Cash at bank
€`000
33,070
8,077
37,767
107,517
126,448
121,007
Key Company Events
2014: The Company appointed a new management team, including Alberto Lavandeira, its current
chief executive officer (“CEO”).
2015: The Company changed its name to Atalaya Mining plc and obtained the Mining Permit and
Restoration Plan approval for Proyecto Riotinto. The Company also completed a £64.9 million capital
raise in 2015 to fund the re-development of Proyecto Riotinto.
2016: Commercial production at Proyecto Riotinto was declared and Atalaya reached a processing
capacity of 9.5 Mtpa towards the end of the year.
2017: Atalaya exercised an option to acquire 10% of the share capital of Cobre San Rafael S.L. (“Cobre
San Rafael”), the owner of Proyecto Touro. The Company also approved an expansion project to
increase processing capacity at Proyecto Riotinto from 9.5 Mtpa to 15.0 Mtpa and completed a £31
million placing to fund development. Expansion capacity was achieved in January 2020.
2018: Atalaya completed a positive pre-feasibility study for Proyecto Touro. The Company also agreed
the buy out of the royalty agreement with Rumbo 5. Cero, S.L. ("Rumbo").
2019: Atalaya reaches full mechanical completion of 15Mtpa expansion project.
2020: The Company received a negative Environmental Impact Statement (Declaración de Impacto
Ambiental) from the Xunta de Galicia in respect of Proyecto Touro. The Company also acquired
Proyecto Masa Valverde, a polymetallic project located in Huelva, Spain.
2021: Atalaya approved its inaugural dividend of $0.395 per ordinary share (approximately €47.3
million) and, effective for FY2022, the Company adopted a dividend policy to make an annual payout
of between 30% and 50% of free cash flow payable in two half-yearly instalments. In December 2021,
Atalaya announced the acquisition of a 51% interest in Rio Narcea Nickel, S.L., and in Q3 2022, Atalaya
increased its ownership interest in POM to 99.9%.
3 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
2022: The Company approved the construction of the first phase of an industrial-scale plant that
utilises the E-LIX System to produce high value copper and zinc metals from the complex sulphide
concentrates sourced from Proyecto Riotinto.
Atalaya announced the conclusion of Astor Management AG ("Astor") litigation.
2023: Atalaya was granted in April the Unified Environmental Authorisation (Autorización Ambiental
Unificada) in respect of Proyecto Masa Valverde and for Proyecto Riotinto a substantial modification
to the existing Unified Environmental Authorisation for which allows for the expansion of tailings
capacity and is expected to facilitate the potential development of regional deposits such as San
Dionisio and San Antonio. In November, the Company announced its intention to move to the Main
Market of the London Stock Exchange and its intention to re-domicile the Company by transferring
its registered office from the Republic of Cyprus to the Kingdom of Spain, subject to receipt of
shareholder approval and regulatory consents. On December 2023 shareholder approved the Re-
domiciliation.
Proyecto Riotinto
Main assets
Proyecto Riotinto is a mining and processing complex that produces copper concentrates. It is
located between the municipalities of Minas de Riotinto, Nerva and El Campillo in the province of
Huelva (Andalucía, Spain), approximately 65 km northwest of Seville and 70 km northeast of the port
of Huelva. Atalaya owns and operates Proyecto Riotinto through its wholly owned subsidiary, Atalaya
Riotinto Minera, S.L.U.
Proyecto Riotinto consists of an operating open pit mine (Cerro Colorado), the 15 Mtpa Riotinto
Processing Plant and supporting infrastructure. In addition, the development stage San Dionisio and
San Antonio deposits are located adjacent to the Cerro Colorado pit.
E-LIX Phase I Plant
The E-LIX Phase I Plant is an industrial-scale processing plant that utilises the E-LIX System and is
located at Proyecto Riotinto.
The E-LIX System is a newly developed and innovative electrochemical extraction process that utilises
singular catalysts and physicochemical conditions to dissolve the valuable metals contained within
sulphide concentrates in order to produce high-value copper and zinc metals from complex sulphide
concentrates.
The E-LIX System was developed by Lain Technologies Ltd (“Lain Tech”) with the financial support of
Atalaya. Over a period of six years, Atalaya and Lain Tech conducted continuous evaluation, de-risking
and testing of the process, including through the development of a semi-industrial pilot plant in 2019
to demonstrate the feasibility of the system. In 2020, Atalaya reached agreement with Lain Tech to
use Lain Tech patents on an exclusive basis within the Iberian Pyrite Belt in Spain and Portugal.
Riotinto District- Proyecto Masa Valverde ("PMV")
Proyecto Masa Valverde is a development stage volcanogenic massive sulphide (“VMS”) type project
located in the province of Huelva (Andalucía, Spain), approximately 80 km west-northwest of Sevilla
and 32 km north northeast of the port of Huelva. Atalaya has owned PMV since October 2020 through
its wholly owned subsidiary Atalaya Masa Valverde, S.L.U.
Development of PMV contemplates underground mining of the Masa Valverde and Majadales
deposits, which would be accessed by constructing a ramp. Mined material would then be
transported by public road to the Riotinto Processing Plant for processing. This development
scenario is consistent with Atalaya’s strategy of developing the Riotinto Processing Plant into a
central processing hub for Atalaya’s assets in the Riotinto District.
Proyecto Touro
Proyecto Touro is a brownfield copper project located in the Galicia region of northwest Spain that is
currently in the permitting process. Proyecto Touro is accessible via a network of existing bitumen
sealed roads. Proyecto Touro is located in the “San Rafael” concession, which is an exploitation permit
held by Cobre San Rafael. Atalaya exercised an option to acquire a 10% interest in Cobre San Rafael in
February 2017 as part of an earn-in agreement that enables Atalaya to acquire up to an 80%
ownership interest as certain development milestones are met.
4 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Proyecto Ossa Morena
Proyecto Ossa Morena consists of a package of investigation permits that are strategically distributed
along prospective zones of the Ossa Morena Metallogenic Belt in southwest Spain.
In December 2021, Atalaya announced the acquisition of a 51% interest in Atalaya Ossa Morena, S.L.
(formerly, Rio Narcea Nickel, S.L.), which owned 17 investigation permits. The acquisition also provided
a 100% interest in three investigation permits that are located along the Ossa Morena Metallogenic
Belt. In 2022, Atalaya increased its ownership interest in Proyecto Ossa Morena to 99.9%, following
completion of a capital increase of Atalaya Ossa Morena, S.L. for the purposes of funding exploration
activities.
Proyecto Riotinto East
In December 2020, Atalaya entered into a Memorandum of Understanding with Geotrex, S.L. to
acquire a 100% beneficial interest in three investigation permits, which covered approximately 12,368
hectares, located immediately east of Proyecto Riotinto (Peñas Blancas and Cerro Negro) and further
to the southeast, near Sevilla (Los Herreros). After a short drilling campaign, the Los Herreros
investigation permit was rejected in June 2022. Proyecto Riotinto East consists of the remaining two
investigation permits, Peñas Blancas and Cerro Negro, totalling 10,016 hectares.
5 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Our Purpose
Our Strategy
Operational Expertise that Delivers
Atalaya Mining continues to build on its success at Proyecto Riotinto, increasing production and
capacity, with a view to becoming a multi-asset producer. It maintains a focus on the development
of sustainable, scalable and low-risk assets in mining-favourable jurisdictions.
Our Mission
Responsibly Increasing Long Term Value for All Stakeholders
Atalaya Mining implements its strategic objectives to ensure the ongoing stable growth of the
Company. Protecting and enhancing the value for all stakeholders is of paramount importance, and
the Company continuously looks at opportunities to achieve this.
The Company seeks to provide society with the essential raw materials required for economic growth
and the energy transition.
Atalaya Mining is focused on conducting responsible mining that positively impacts local
communities, the environment and all our stakeholders.
Our Values
A Committed Duty to a Safe and Ethical Working Environment
Atalaya Mining is committed to responsible mining and upholds its core principles of honesty and
accountability. The Company works with all stakeholders to ensure that its values are completely
aligned with the local community and environment.
6 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Performance Highlights
Operational Highlights
Copper concentrate
Copper contained in concentrate
Payable copper contained in
concentrate
Key messages
Unit
t
t
t
2024
Guidance
-
51,000-53,000
-
2023
Actual
249,321
51,667
49,174
2022
Actual
249,543
52,269
49,773
Stable copper producer of >50 ktpa from Cerro Colorado pit alone.
15.8 Mt of ore processed in 2023, matching the previous record achieved in 2021.
Financial Highlights
Revenues
EBITDA
Dividend per share (1)
Realised copper price (excluding QPs)
Cash cost
All-in sustaining cost (AISC)
Net cash position
Cash at bank
Unit
€k
€k
$/share
$/lb
$/lb payable
$/lb payable
€k
€k
2023
340,346
73,100
0.0900
3.80
2.79
3.09
54,320
121,007
2022
361,846
55,314
0.0745
3.96
3.16
3.37
53,085
126,448
(1) Represents the total dividend for each fiscal year, consisting of an Interim Dividend (paid) and a
proposed Final Dividend (subject to shareholder approval at next AGM
Key Messages
Higher EBITDA in 2023 despite lower realised copper prices.
Cash costs of US$2.79/lb and AISC of US$3.09/lb, which are competitive with Atalaya’s
intermediate copper producer peers.
Healthy liquidity position with €121.0 million cash at bank at 31 December 2023.
7 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Atalaya at a Glance
Atalaya is an AIM-listed mining and development group that produces copper concentrates
including silver by-product at its wholly owned Proyecto Riotinto site in southwest Spain.
Key qualities of the Company include:
Assets located in established and stable mining jurisdiction
Pipeline of low risk growth projects with competitive capital intensities
Proven management team of explorers, developers and operators
Strong focus on ESG
Robust balance sheet
The Company owns and operates through a wholly owned subsidiary, “Proyecto Riotinto”, an open-
pit copper mine located in the Iberian Pyrite Belt, in the Andalusia region of Spain, approximately 65
km northwest of Seville. A brownfield expansion was completed in 2019.
Atalaya also owns 10% of Proyecto Touro, a brownfield copper project in northwest Spain and 100% of
Proyecto Masa Valverde, a polymetallic project located in Huelva (Spain) and 28 km southwest of
Proyecto Riotinto.
The Company’s objective is to explore, develop and operate mining assets located in several
jurisdictions throughout the well-known belts of base and precious metal mineralisation in Spain,
Europe and Latin America.
For further details on the principal activities of the Group and the Company, please refer to
www.atalayamining.com.
Cerro Colorado (Proyecto Riotinto)
Ownership
Mine
Commodity
Location
Ore
Resources
2023
Activity
Reserve*
actual Cu
production
100%
Open pit
Cu, Ag
Huelva,
185 Mt at
200.7 Mt
51,667
mining in
operation
Spain
0.38% Cu
at
0.37%
tonnes
(P&P)
Cu (M&I)
* NI 43-101 compliant Reserves and Resources as at December 2020
8 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
San Dionisio / San Antonio (Proyecto Riotinto)
Ownership
Mine
Commodity
Location
Ore
Resources*
Growth
Activity
Reserve
100%
Potential for
Cu, Zn, Pb,
Huelva,
-
San Dionisio open
Potential
open pit and
Ag
Spain
pit:
to increase
underground
mining
56.1 Mt at 0.91% Cu
production
and 1.14% Zn (M&I)
by
San
Dionisio
increasing
underground:
head
12.4 Mt at 1.01% Cu
grade
and
2.54%
Zn
(Inferred)
San
Antonio
underground:
11.8 Mt at 1.32% Cu
and
1.79%
Zn
(Inferred)
* NI 43-101 compliant Resources as at December 2020
Proyecto Riotinto is operated through Atalaya Riotinto Minera, S.L.U. a fully owned entity established
under the laws of Spain.
Proyecto Masa Valverde (Riotinto District)
Ownership
Mine
Commodity
Location
Resources*
Growth
Activity
100%
Potential for
Cu, Zn, Pb,
Huelva,
Masa Valverde:
Strong
exploration
underground
Ag and Au
Spain
16.9 Mt at 0.66% Cu,
upside potential
in
mining. AAU
and
exploitation
permit have
been
granted.
1.55% Zn and 0.65% Pb
the
immediate
(Indicated)
surroundings.
73.4 Mt at 0.61% Cu,
1.24% Zn and 0.61% Pb
(Inferred)
Majadales:
3.1 Mt at 0.94% Cu,
3.08% Zn and 1.43% Pb
(Inferred)
* NI 43-101 compliant Resource estimate as at March 2022
In 2020, Atalaya entered into a definitive purchase agreement to acquire the Masa Valverde
polymetallic project in Huelva. The mining rights are owned by Atalaya Masa Valverde, S.L.U. a fully
owned subsidiary of Atalaya.
In 2023, AMV was granted with the Unified Environmental Authorisation (or in Spanish, Autorización
Ambiental Unificada ("AAU")) by the Junta de Andalucía ("JdA").
Proyecto Touro
Ownership
Mine
Commodity
Location
Ore
Resources*
Growth
Activity
Reserve*
10% with an
Open
earn-in
mining
pit
in
agreement
permitting
up to 80%
stage
Cu, Ag
A
90.9 Mt at
129.9 Mt at
Option
to
Coruña,
0.43%
Cu
0.39%
Cu
acquire 100%
Spain
(P&P)
(M&I) and 46.5
of
the
Mt at 0.37%
adjacent
Cu (Inferred)
exploration
concessions
* NI 43-101 compliant Reserves and Resources as at September 2017
9 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
In 2017, Atalaya signed a phased, earn-in agreement for up to 80% ownership of Proyecto Touro, a
brownfield copper project in northwest Spain. The mining rights are owned by Cobre San Rafael, S.L.
Proyecto Ossa Morena
Ownership
99.9%
Mine Activity
Exploration stage,
multiple
with
areas
being
drilled at present.
Commodity
Cu, Au and
Fe
Location
Huelva,
Spain
Growth
Strong exploration
potential
upside
the
throughout
overall
land
package.
Resources*
Alconchel:
7.8 Mt at
0.66%
Cu
and 0.17 g/t
Au
(M&I)
and 15.0 Mt
at 0.47% Cu
and 0.14 g/t
Au
(Inferred)
* Historical data
In 2021, Atalaya announced the acquisition of a 51% interest in Rio Narcea Nickel, S.L., which owned a
package of investigation permits in the Ossa- Morena Metallogenic Belt, as well as several 100%
owned investigation permits. In 2022, Atalaya increased its ownership in Rio Narcea Nickel, S.L. to
99.9% following the completion of a capital increase to fund exploration activities.
10 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Letter from the Chair
Dear Shareholder
Despite the effects of the continuing external geopolitical tensions, the Atalaya executive team have,
once more, delivered consistent operational performance, in a safe and environmentally responsible
manner, at Proyecto Riotinto. At the same time, work has continued on the asset portfolio for
operational sustainability and the continued growth potential for the company.
At Riotinto, mining and processing continued its excellent track record, with throughput again
exceeding plant nameplate capacity, processing 15.8 million tonnes of ore at an average process plant
feed grade of 0.38% copper that was consistent with reserve estimates and slightly below budgeted
figures.
Contained Copper production, at 51,667 tonnes was slightly below guidance as a result of lower
grades but this was partly offset by high plant availability and ore throughput plus an improved
recovery rate of approximately 87%.
Cash Costs and All-in Sustaining Costs for 2023 of $2.79/lb and $3.09/lb respectively were lower than
the $3.16/lb and $3.37/lb in 2022 mainly due to the continuing normalisation of the electricity price
and other external cost pressures.
Revenue for 2023 was €340.3 million, compared to €361.8 million in 2022, with the reduction
essentially due to the lower production volumes. EBITDA for 2023 was €73.1 million, compared to
€55.3 million in 2022 with the increase mainly due to the reduction in costs, spearheaded by a
decrease in the electricity prices.
In keeping with our dividend policy, a final dividend of US$0.04 per share has been proposed for
approval by shareholders at the Annual General Meeting. This would give a total dividend in respect
of 2023 of US$0.09 per share, whilst maintaining a strong Balance Sheet for continued investment in
sustainable production through reserve replacement as well as our longer-term growth projects.
Progress continues at the E-LIX processing plant. The first copper cathodes were produced in
December 2023, resulting from the early partial commissioning of sections of the plant. Full
commissioning and ramp-up of the facility is expected during the year with the aim of producing
high-purity copper and zinc metals on site, higher metal recoveries from complex polymetallic ores,
a reduced carbon footprint, and lower transportation and concentrate treatment charges.
In the north of Spain, the Company remains fully committed to the development of the Touro copper
project that has the potential to become a new significant source of copper production for Atalaya
and, indeed, for Europe. In this respect, the company continues to focus on numerous initiatives
related to the social licence and water treatment in the zone in parallel with the permitting process.
As part of the Company’s ongoing efforts to reduce costs and carbon footprint, construction is nearing
completion at the 50 MW solar plant at Riotinto. The first section was commissioned early in the year,
with the ramp-up of the remaining areas expected in the following months. When fully operational,
the solar plant is expected to provide approximately 22% of the Riotinto project’s current electricity
needs. The solar plant combined with the long-term Power Purchase Agreement (PPA), announced
last year, will provide over 50% of the current electricity requirements at a rate well below historical
prices in Spain. The Company continues wind-speed testing and evaluation for the potential
installation of wind turbines at Riotinto, which could supply additional low cost and carbon-free
electricity.
In April 2023 Proyecto Riotinto was granted a substantial modification to the existing Unified
Environmental Authorisation (AAU)) by the Junta de Andalucía that allows for the expansion of the
mine footprint and the tailings capacity, an important step towards developing the previously
reported contiguous deposits such as San Dionisio and San Antonio. Work continues on the
preparatory work and necessary permitting applications associated with the first target, the on-strike
San Dionisio deposit, which forms a key component of the integrated mine plan, as outlined in the
2023 Riotinto PEA, to provide an early increase in the blended plant feed grade.
In other areas of potential growth, the exploitation permits for the Masa Valverde and Majadales
deposits were officially granted In November 2023, following the granting of the AAU in March 2023.
Various optimisation workstreams are ongoing.
11 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Following the Extraordinary General Meeting held in December 2023, the Company commenced a
re-domiciliation process, transferring its registered office from the Republic of Cyprus to the
Kingdom of Spain.
At the date of this reporting, the Company is also progressing its application to the Financial Conduct
Authority (“FCA”) to admit its ordinary shares to the premium listing segment of the Official List and
to trading on the London Stock Exchange main market for listed securities. Admission remains
subject to a number of conditions including the approval by the FCA of a prospectus which will be
completed after the release of the Company’s 2023 Annual Results.
I would like to take this opportunity to express my appreciation for the continued dedication and
commitment of the management and staff. At the same time, I would like to thank all board
members for their support, guidance, and continued engagement with all aspects of the Company’s
activities, and also our valued shareholders for their continued and appreciated support.
Roger Davey
Chair of Atalaya Mining Plc
18 March 2024
12 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Directors’ and Officers’ Statement
Statement by the members of the Board of Directors and the Company officers responsible for the
drafting of the consolidated and Company financial statements in accordance with the provisions of
the Cyprus Law 190(I)/2007 on transparency requirements.
We, the Members of the Board of Directors and the Company officers responsible for the drafting of
the consolidated and Company financial statements of Atalaya Mining plc for the year ended 31
December 2023, confirm that, to the best of our knowledge:
1)
The consolidated financial statements and the Company financial statements on pages 123
to 191:
a. have been prepared
in accordance with International Financial Reporting
Standards (“IFRS”) as adopted by the European Union and the requirements of the
Cyprus Companies Law, Cap.113. For the year ending 31 December 2023, the
standards applicable for IFRS’s as adopted by the EU are aligned with the IFRS’s as
issued by the IASB, and,
b. give a true and fair view of the assets, liabilities, financial position and profit or loss
of Atalaya Mining Plc and the undertakings included in the consolidated and
Company financial statement taken as a whole; and
2)
3)
The Management Report includes a fair review of the development and performance of the
cash business and the position of Atalaya Mining Plc and the undertakings included in the
consolidated and Company financial statements as a whole, together with a description of
the principal risks and uncertainties that they face, and
The adoption of a going concern basis for the preparation of the consolidated and Company
financial statements continues to be appropriately based on the foregoing and having
reviewed the forecast financial position of the Group and Company.
The Officers and the Directors of the Company as at the dated of this statement are as set out below:
Alberto Lavandeira
Chief Executive Officer
Cesar Sanchez
Chief Financial Officer
By Order of the Board of Directors,
Roger Davey
Chair
Nicosia, 18 March 2024
13 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Basis of Reporting
The Board of Directors of Atalaya Mining Plc (the “Company” or “Atalaya”) presents its Group’s and
Company’s Management Report together with the audited consolidated financial statements
(hereinafter “financial statements”) of the Company and its subsidiaries (the “Group”) and the
separate financial statements of the Company for the year ended 31 December 2023. These
documents can be found on the Atalaya website at www.atalayamining.com.
The Company is a Cypriot incorporated public company with a primary listing on AIM of the London
Stock Exchange. The Group’s and Company’s financial statements have been prepared in accordance
with International Financial Reporting Standards (“IFRS”) as adopted by the European Union and the
requirements of the Cyprus Companies Law, Cap.113. For the year ending 31 December 2023, the
standards applicable for IFRS’s as adopted by the EU are aligned with the IFRS’s as issued by the IASB.
The currency referred to in this document is the Euro (“EUR”), unless otherwise specified.
Introduction
This report provides an overview and analysis of the financial results of operations of the Group, to
enable the reader to assess material changes in the financial position between 31 December 2022
and 31 December 2023 and the results of operations for the twelve month periods ended 31
December 2022 and 31 December 2023.
Forward Looking Statements
This report may include certain “forward-looking statements” and “forward-looking information”
applicable under securities laws. Except for statements of historical fact, certain information
contained herein constitutes forward-looking statements.
Forward-looking statements are
frequently characterised by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”,
“estimate”, and other similar words, or statements that certain events or conditions “may” or “will”
occur. Forward-looking statements are based on the opinions and estimates of management at the
date the statements are made and are based on a number of assumptions and subject to a variety
of risks and uncertainties and other factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements. Assumptions upon which such
forward-looking statements are based include all required third party regulatory and governmental
approvals that will be obtained. Many of these assumptions are based on factors and events that are
not within the control of Atalaya and there is no assurance they will be correct. Factors that cause
actual results to vary materially from results anticipated by such forward-looking statements include
changes in market conditions and other risk factors discussed or referred to in this report and other
documents filed with the applicable securities regulatory authorities. Although Atalaya has
attempted to identify important factors that could cause actual actions, events or results to differ
materially from those described in forward-looking statements, there may be other factors that cause
actions, events or results not to be anticipated, estimated or intended. There can be no assurance
that forward-looking statements will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. Atalaya undertakes no obligation to
update forward-looking statements if circumstances or management’s estimates or opinions should
change except as required by applicable securities laws. The reader is cautioned not to place undue
reliance on forward-looking statements.
Alternative Performance Measures
Atalaya has included certain non-IFRS measures including “EBITDA”, “Cash Cost per pound of
payable copper” “All In Sustaining Costs” (“AISC”) and “realised prices” in this report. Non-IFRS
measures do not have any standardised meaning prescribed under IFRS, and therefore they may not
be comparable to similar measures presented by other companies. These measures are intended to
provide additional information and should not be considered in isolation or as a substitute for
indicators prepared in accordance with IFRS.
EBITDA includes gross sales net of penalties and discounts and all operating costs, excluding finance,
tax, impairment, depreciation and amortisation expenses.
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Cash Cost per pound of payable copper includes on-site cash operating costs, and off-site costs
including treatment and refining charges (“TC/RC”), freight and distribution costs net of by-product
credits. Cash Cost per pound of payable copper is consistent with the widely accepted industry
standard established by Wood Mackenzie and is also known as the cash cost.
AISC per pound of payable copper includes the Cash Costs plus royalties and agency fees,
expenditure on rehabilitations, stripping costs, exploration and geology costs, corporate costs, and
sustaining capital expenditures.
Realised prices per pound of payable copper is the value of the copper payable included in the
concentrate produced including the discounts and other features governed by the offtake
agreements of the Group and all discounts or premiums provided in commodity hedge agreements
with financial institutions, expressed in USD per pound of payable copper. Realised price is consistent
with the widely accepted industry standard definition.
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OUR BUSINESS MODEL: STRATEGIC FOCUS FOR GROWTH
Atalaya is a group of companies with a presence in 3 countries (hereinafter “ATYM”, “Company”,
“ATYM Group” or “Group”) that, with a vision of becoming a multi-asset, mid-tier base metals
producer, performs activities in the mining sector throughout its entire value chain (exploration,
development and production of copper concentrate, transportation and sale). The Group comprises
14 companies, subsidiaries, joint arrangements and associates incorporated in 3 countries (mainly in
Spain, Cypus and United Kingdom). The Group's main companies and the summarized corporate
organization chart are presented in note 2.3 of the 2023 consolidated Financial Statements..
Organic Growth
Atalaya considers its exploration and R&D business to be strategic. In the context of dynamic
permanent management of the business portfolio various opportunities were analysed, in the last
years resulting in these announcements:
In January 2022, Atalaya announced the construction of the first phase of the industrial-scale
plant ("Phase I") that utilises the E-LIX System ("E-LIX"). This plant produces high value
copper and zinc metals from the complex sulphide concentrates sourced from Proyecto
Riotinto.
Highlights:
-
Unlock significant value from Atalaya's portfolio of polymetallic resources in the Riotinto
District by materially increasing the recoveries of copper, zinc, lead and precious metals
from complex sulphide ores.
Producing high-purity metals on-site reducing transportation costs, treatment charges
and penalties associated with producing and delivering conventional concentrates.
Reduce Atalaya's carbon footprint through a reduction in land and sea freight and by
utilising power from Proyecto Riotinto's solar plant.
-
-
Proyecto Touro.
The Group has an initial 10% stake in Cobre San Rafael, S.L., the owner of Proyecto Touro, as
part of an earn-in agreement which will enable the Group to acquire up to 80% of the copper
project. Proyecto Touro is located in Galicia, north-west Spain. Proyecto Touro is currently in
the permitting process.
In November 2019, Atalaya executed the option to acquire 12.5% of Explotaciones Gallegas
del Cobre, S.L. the exploration property around Touro, with known additional reserves, which
will provide high potential to the Proyecto Touro.
Proyecto Masa Valverde
On 21 October 2020, the Company announced that it entered into a definitive purchase
agreement to acquire 100% of the shares of Cambridge Mineria España, S.L. (since renamed
Atalaya Masa Valverde, S.L.U.), a Spanish company which fully owns the Masa Valverde
polymetallic project located in Huelva (Spain). Under the terms of the agreement Atalaya will
make an aggregate of €1.4 million cash payment. The first payment of €0.7m was executed
on 10 of January 2024 once the exploitation permits and restoration plan were granted and
the second and final payment will be paid when first production is achieved from the
concession.
Proyecto Masa Valverde is currently in the permitting process for the remaining permits.
Proyecto Ossa Morena
In December 2021, Atalaya announced the acquisition of a 51% interest in Rio Narcea Nickel,
S.L., which owns 9 investigation permits. The acquisition also provided a 100% interest in
three investigation permits that are also located along the Ossa- Morena Metallogenic Belt.
In Q3 2022, Atalaya increased its ownership interest in POM to 99.9%, up from 51%, following
completion of a capital increase that will fund exploration activities. During 2022 Atalaya
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rejected 8 investigation permits.
Atalaya will pay a total of €2.5 million in cash in three instalments and grant a 1% net smelter
return (“NSR”) royalty over all acquired permits. The first payment of €0.5 million was made
following execution of the purchase agreement. The second and third instalments of €1
million each will be made once the environmental impact statement (“EIS”) and the final
mining permits for any project within any of the investigation permits acquired under the
Transaction are secured.
The Ossa-Morena Metallogenic Belt has strong exploration potential for a range of base and
precious metals and is north of the Iberian Pyrite Belt where Atalaya operates its flagship
Proyecto Riotinto mine.
Riotinto District – Proyecto Riotinto East
In December 2020, Atalaya entered into a Memorandum of Understanding with a local
private Spanish company to acquire a 100% beneficial interest in three investigation permits
(known as Peñas Blancas, Cerro Negro and Herreros investigation permits), which cover
approximately 12,368 hectares and are located immediately east of Proyecto Riotinto. The
Cerro Negro and Herreros permits were denied following the completion of exploration
activities.
Cost reduction / ESG initiatives
Atalaya continuously evaluates its cost structure in order to improve its margins and resilience. For
example, the installation of a tailings thickener helps to reduce water and lime consumption, thereby
reducing input costs. In 2022, Atalaya was the first company in the Spanish mining sector to
announce the construction of a solar plant for its own consumption. This solar plant will reduce
Riotinto’s operating costs and carbon emissions.
Advance Atalaya’s existing higher grade brownfield orebodies, including San Dionisio and San
Antonio into production
Potential increase in copper production.
Potential decrease in cash costs and AISC.
Increases optionality and mine life.
External Growth
Continue to evaluate external opportunities that leverage core capabilities
New prospects in the Iberian Pyrite Belt or other safe mining jurisdictions.
Targeting prospects of material scale, good geology & upside potential via rigorous technical
due diligence.
Focus on copper and other base metals.
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Market Overview
The landscape of the global copper market in 2023 revealed a scenario marked by moderate growth
amidst persistent challenges, as outlined in the Global Copper Market Overview 2023. This
comprehensive breakdown encapsulates key facets of the market dynamics, amalgamating insights
from various sources, particularly the provided review.
Supply Dynamics:
The global copper production witnessed a modest increase in 2023. Noteworthy contributions to this
growth came from leading copper-producing nations such as the Democratic Republic of the Congo
(DRC), Peru, and Chile.
Despite this overall positive trend, Chile faced challenges in the first half of the year due to adverse
weather conditions impacting production. However, indications suggest a resilient recovery in the
latter half of 2023, underscoring the potential resilience of the global supply chain.
Long-term concerns persist, primarily related to mine disruptions and delays in new project
development. These issues raise legitimate worries about meeting future demand, especially in the
context of the escalating importance of copper in the ongoing global energy transition.
Demand Landscape:
The demand for refined copper closely mirrored the growth in supply, with an approximate increase
of 1.0% in 2023 compared to the previous year, reaching approximately 25.23 million tonnes (Mt),
according to the International Wrought Copper Council (IWCC). The surge in demand was primarily
propelled by sectors such as construction and infrastructure, particularly in emerging economies.
Additionally, the relentless focus on renewable energy and electric vehicles continued to contribute
to the demand for copper, given its pivotal role in these technologies.
Looking ahead, the IWCC forecasts a further increase in refined copper demand of 2.6% in 2024,
underlining the sustained importance of copper in the global economy.
Market Size and Trends:
The global copper market experienced substantial growth in 2023, reaching an estimated
consumption of 25.3 Mt. This upswing was fuelled by increased demand, notably driven by
accelerated Chinese economic activity and a 2% year-on-year rise in global demand. Projections for
2024 indicate a potential expansion, with demand expected to reach 26 Mt, signifying a 3% increase.
Contributing to this growth, global copper mine production in 2023 is estimated at 22.3 Mt, with
notable contributions from regions like South America and the Democratic Republic of Congo.
Furthermore, smelting and refining capacity expansions in China boosted the world's refined copper
supply, expected to surpass 26 Mt by 2024.
Asia-Pacific remained the fastest-growing region for copper consumption, propelled by robust
growth in the electrical and electronics industries of India and ASEAN countries. North America's
electronics sector also played a significant role, while South America, Europe, and the Middle East
and Africa continued to be essential contributors to the global market.
Macroeconomic Trends and Challenges:
In 2023, the pace of economic recovery slowed down, with global GDP growth estimated to be
around 3%, down from 3.5% in 2022. This deceleration highlights the exhaustion of the post-pandemic
recovery phase and its impact on market dynamics.
Supply Risks: While copper production expanded to meet immediate needs, concerns persist
regarding potential supply disruptions, particularly in South America. Addressing these concerns is
crucial for ensuring long-term market stability.
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Price Outlook:
Copper prices rebounded from pandemic lows in 2023, showcasing signs of recovery.
The year was marked by significant price fluctuations, with a volatile trajectory. Starting with relatively
high prices, October witnessed a drop, reaching a low of $3.54/lb per tonne. Subsequently, an upward
trend towards the end of the year was observed, likely influenced by supply disruptions such as the
suspension of operations at Cobre Panama, according to insights from Wood Mackenzie.
Market dynamics, including supply disruptions, geopolitical tensions, and fluctuations in global
economic activity, played pivotal roles in influencing these price fluctuations.
The global copper market in 2023 showcased resilience amid challenges, primarily driven by demand
from sectors critical to the global energy transition. However, underlying concerns about potential
supply disruptions, geopolitical tensions, and slower economic growth necessitate continuous
monitoring and proactive measures to ensure a sustainable and stable copper supply chain in the
future.
Realised Copper Prices
The average prices of copper for 2023 and 2022 were:
$/lb
Realised copper price (excluding QPs)
Market copper price per lb (period average)
$/lb
$/lb
2023
3.80
3.85
2022
3.96
4.00
Realised copper prices for the reporting period noted above have been calculated using payable
copper and excluding both provisional invoices and final settlements of quotation periods (“QPs”)
together. The realised price during the year, including the QP, was approximately $3.82/lb.
Despite initial optimism, 2023 proved to be a year of volatility in the copper market. Prices started
high but faced downward pressures due to global economic concerns and increased supply. While
there was a slight recovery in the latter half, the year ended with a cautious outlook, leaving the future
trajectory of copper prices in 2024 uncertain.
Spot Vs Realised Copper price
5.00
4.50
4.00
b
l
/
$
3.50
3.00
2.50
2.00
Spot copper price
Realised price (excl. QP)
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Atalaya’s Response
The Group had no hedges on commodities prices during 2023. At the date of this report, the Group
is fully exposed to copper prices with no commodities hedging agreements in place.
*February, April and October there weren’t excluding QPs invoices.
Foreign Exchange
While in 2022 the Group had a positive impact with a favourable rate against USD, the year 2023 saw
significant volatility in the EUR/USD exchange rate, with a wider-than-average range compared to
recent years. Here's a breakdown of the key trends and driving factors for this year:
The year began with the EUR/USD hovering around 1.10, reflecting some cautious optimism about
European economic prospects. However, the strengthening US dollar due to hawkish Federal
Reserve monetary policy and geopolitical tensions, particularly the Russia-Ukraine war, began to
exert downward pressure on the Euro.
By July, the EUR/USD reached its yearly high of 1.1255, but this proved temporary as economic
concerns in the Eurozone, including rising inflation and slower growth, weighed on the currency.
The second half of the year witnessed a sustained decline in the Euro, with the EUR/USD dipping
below parity (1.00) for the first time since 2002 in September.
This historic drop reflected a divergence in monetary policies between the US and the Eurozone. The
Fed continued its aggressive tightening to combat inflation, while the European Central Bank (ECB)
remained more dovish, concerned about the potential negative impact of higher rates on the fragile
Eurozone economy.
The year ended with the EUR/USD hovering around 1.08, reflecting a weakened Euro and a stronger
US dollar due to the aforementioned factors.
Looking Ahead:
The prospects for the EUR/USD pair in 2024 remain uncertain. The relative path of monetary policy
in the US and the Eurozone will be a key determinant. Additionally, geopolitical developments and
their impact on global risk appetite will also play a crucial role.
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Strategic Framework
The business model of Atalaya is founded upon creating value for its stakeholders through
operational and developmental excellence. Experience and an unceasing search for
improvement are the pillars of its success.
People
We are committed to embarking on a transformative journey by investing in talent, fostering
innovation, and creating a workplace culture that inspires resilience and adaptability.
Investing in Human Capital:
Our commitment to people extends beyond conventional employment paradigms. We aim to build
a resilient workforce capable of navigating today's challenges and those on the horizon. By fostering
a culture of innovation, we empower our people to tackle complex problems with new management
approaches, ensuring adaptability in an ever-evolving landscape.
Driving Cultural Transformation:
Our cultural transformation initiative seeks to establish our organization as a secure and supportive
space. We actively listen, empathize, and build strong relationships, promoting a workplace where
every voice matters. Our flat management structure ensures accessibility, emphasizing that our
people are at the core of our success.
Understanding Individual Values:
To inspire and engage our workforce, we are dedicated to understanding the unique values of each
individual. We treat our people fairly, recognizing and leveraging their personal motivations and
distinctive qualities. This transformative approach challenges the conventional employment
relationship, fostering a deeper commitment to our collective success.
High-Performance Culture:
Atalaya is focused on creating a high-performance culture where our people are considered our most
valuable asset. This involves continuous communication across all levels, from the operating
workforce to the Board of Directors. Our experienced mining team ensures the implementation of
safety, health, and security policies.
Proactive Engagement and Relationships:
We actively engage with regulatory bodies, shareholders, local governments, and communities. Our
efforts to maintain direct contact with people, rather than relying on media presence, exemplify our
commitment to authentic and meaningful connections. Social responsibility through Fundación
Atalaya Riotinto underscores our dedication to the communities where we operate.
2023 Achievements and 2024 Priorities:
The company achieved significant milestones in 2023, marking a year of progress and innovation.
First and foremost, the company successfully completed a comprehensive job evaluation in line with
the collective agreement, ensuring fair and equitable compensation for all employees. In addition,
the implementation of flexible remuneration initiatives provided employees with greater flexibility
and choice, fostering a dynamic and supportive working environment. The development of an
'Employee Portal' further enhanced communication and engagement within the organisation,
promoting transparency and collaboration. In particular, the adoption of an Equality Plan
underscored the company's commitment to fostering a diverse and inclusive workplace. Looking
ahead to 2024, the company is poised for continued growth and improvement. Goals include training
internal auditors to improve internal processes and compliance. The implementation of the Equality
Plan will be a focus as the company strives to create an environment where every individual feels
valued and respected. Specific talent development training programmes will be introduced,
investing in the skills and capabilities of the workforce. In addition, the company aims to introduce
technological innovations in HR to streamline processes and increase efficiency. As the company
embarks on these ambitious goals, it remains committed to upholding its core values and driving
sustainable success for the company and its stakeholders.
Supporting local communities
Atalaya Mining is committed to responsible mining practices and values honesty and accountability.
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Our engagement with local communities goes beyond extraction and focuses on building
sustainable relationships that contribute positively to the social fabric. In 2023, our initiative,
Fundación Atalaya, spearheaded 52 action programs and invested €0.7 million in the communities
surrounding Proyecto Riotinto. This significant investment demonstrates our commitment to the
well-being of these areas. Our global tax contributions of €5.9 million further confirm our role as
responsible corporate citizens, contributing to the economic development of the regions in which
we operate. Our active participation in local community events at both Proyecto Riotinto and
Proyecto Touro highlights our dedication to fostering a sense of community and shared prosperity.
Looking ahead to 2024, our strategic priorities involve a stronger commitment to local community
projects in Proyecto Riotinto and Touro. This reflects our dedication to making a meaningful and
lasting impact. Additionally, our focus on increasing community engagement in Touro demonstrates
our commitment to understanding and addressing the unique needs of each community. As Atalaya
Mining grows, we acknowledge the interdependence between our success and the prosperity of the
communities we operate in. Our commitment to supporting local communities is not only a
corporate responsibility but also a crucial aspect of our vision for responsible and sustainable mining
practices. We aim to ensure that our presence contributes positively to the overall development of
the regions we call home.
In 2023, 68% of Atalaya Riotinto's workforce came from neighbouring villages, maintaining the same
percentage as in 2022. This consistency highlights our commitment to nurturing local employment
opportunities. We have also established strategic agreements with municipalities to ensure that our
vision for promoting local employment extends to other contractors engaged in our projects.
PORTFOLIO
We have a portfolio of growth projects that allows us to remain competitive by developing
sustainable operations over the long term. Furthermore, Atalaya continues refining and upgrading
the quality of their asset portfolio to ensure that our capital is deployed effectively to generate
enhanced and sustainable returns for the shareholders.
Importance of cost management
Atalaya is a world-class processing plant in Europe. Management actively manages our asset portfolio
to improve its overall competitive position, providing metals for the energy transition, a more
sustainable world and.
Establishing high performance
Consolidation our internal growth with production levels of 15 Mtpa with a contained All-in sustaining
cost.
Creating opportunities for growth
Exploration activities is consolidated and centrally co-ordinated, covering near-asset and greenfield
discovery activities, projects and operations. The
integrated team represents a strategic
differentiator, enabling the detailed understanding of our world class assets to inform our pursuit of
discoveries.
Atalaya has investigation permits surround Riotinto to ensure and increase their reserves and
resources.
Creation value for shareholders
We continue to refine and upgrade the quality of our asset portfolio to ensure that our capital is
deployed effectively to generate enhanced and sustainable returns for our shareholders.
INNOVATION
Across every aspect of our business, we are thinking innovatively to ensure the safety of our people,
to enhance the sustainability of our business, and to deliver enduring value in its many forms for all
our stakeholders.
Key actions undertaken by the Company in 2023 included the process of making business
management more efficient and agile to be able to adapt to market conditions, as well as the
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incorporation of new technologies and the digitalization of operations, on the path to achieving the
decarbonization and energy transition targets.
Technology and digitalisation
Innovation is a key area of our strategy, focused on safety, sustainability and operating performance.
Atalaya is continuing enhancements their activities to treat lower ore grades, increase the recoveries,
reduce the water consumption, and finalising the installation of a 50 MW solar plant. We are exploring
the integration of windmills to increase the proportion of electricity consumption from renewable
sources. Our overall goal is not only to reduce capital intensity and operating costs, but also to
improve operational efficiency, ensuring a sustainable and technologically advanced future for our
operations.
Reduce consumption of water
Water stewardship is an integral part of our business. Riotinto is water stressed and water scarce area,
factors that are becoming more acute due to climate change. Atalaya has a sustainable strategy to
reduce the freshwater withdrawals.
Over the years, Proyecto Riotinto has implemented enhancements in the infrastructure responsible
for generating water, such as ponds, pumping systems, and bottom drains.
In Touro Project, the construction of a new water treatment plant (WTP) and, since its
commissioning, 1.6 million cubic meters (Mm3) of acidic water has already been treated, preventing
its direct discharge into the natural watercourses of the region (i.e. Portapego, Felisa and Barral-
Angumil streams).
E-LIX System
During the last years Atalaya has provided funding to Lain Tech to develop the E-LIX System and has
an agreement with Lain Tech to use its patents.
The E-LIX System was patented in 2014 by Lain Tech and was developed in collaboration with Atalaya
from an initial concept in the laboratory to a fully operational pilot plant located at Proyecto Riotinto
(the "Pilot Plant").
The E-LIX System is a newly developed electrochemical extraction process developed and owned by
Lain Technologies Ltd ("Lain Tech") which is led by Dr. Eva Lain, who holds a PhD in Electrochemistry
research from the University of Cambridge.
Through the application of singular catalysts and physicochemical conditions, E-LIX System is able
to achieve high metal recoveries under low residence times, by accomplishing rapid reaction rates
while overcoming classic surface passivation issues that have typically impaired metal recovery from
complex sulphide ores. E-LIX System is considered to be a more environmentally friendly process
than existing technologies; it is a zero emissions process that does not consume water nor acid and
runs under mild operating conditions (atmospheric pressure and room temperature). Hence, the
process is additionally characterised by ease and safety of operation.
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Managing Our Risks and Uncertainties
Due to the nature of Atalaya’s business in the mining industry, the Group is subject to various risks
that could materially impact its future operating results and could cause actual events to differ
materially from those described in forward-looking statements relating to Atalaya.
Single Asset Concentration
Description:
Atalaya Mining operates under a distinctive model, emphasizing a singular asset—Proyecto Riotinto.
This exclusive focus centres on copper concentrate production, with a concurrent silver by-product.
A meticulous financial examination is crucial to comprehending associated risks and the strategic
approaches employed by the company.
Nature of the Risk:
The risk is inherent in Atalaya's concentrated operational structure, primarily hinging on Proyecto
Riotinto. The company's heavy reliance on this single producing asset renders it financially sensitive.
Any disruption or adverse event affecting Proyecto Riotinto directly influences the overall financial
performance of the entire Group, creating vulnerability associated with dependence on a solitary
revenue stream.
Mitigation:
Atalaya has proactively implemented strategic measures to mitigate this inherent risk. Proyecto
Riotinto has demonstrated operational resilience since its restart in 2016, consistently maintaining
cash costs below the market price for copper, even during cyclical lows. Additionally, the company
actively pursues acquisitions in the mining sector to diversify its operational portfolio, thereby
reducing reliance on a single asset. The Business Development Department diligently evaluates
growth opportunities and transactions, ensuring a structured decision-making process within
established authority levels set by the Board. These measures collectively aim to enhance resilience
and mitigate the impact of potential disruptions to the single producing asset.
Risk Probability: Low
The probability of this risk materializing is considered low. While Proyecto Riotinto has displayed
operational resilience, external factors beyond the company's control could
its
performance.
influence
Risk Level: High
The risk level is categorized as high due to Atalaya's financial sensitivity to Proyecto Riotinto’s
performance directly impacting the Group’s overall financial health. Any disruption or adverse event
could significantly jeopardize the company’s financial stability. Continued vigilance and proactive
strategies are imperative to manage and reduce this high-level risk.
Lack of replacement of reserves:
Description:
This risk revolves around the challenge of continually replacing and expanding Atalaya's mineral
resources. The company faces the prospect that the depletion of its mineral reserves may not be
adequately offset by future discoveries or acquisitions, posing a potential threat to its long-term
operational sustainability.
Nature of the Risk:
The nature of this risk is rooted in the dependency on consistent discoveries or acquisitions to replace
depleting mineral reserves. Inadequate replacement measures could lead to a decline in the
availability of resources critical for sustained mining operations.
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Mitigation:
To mitigate this risk, Atalaya has undertaken ongoing exploration campaigns, particularly in areas
close to Proyecto Riotinto, Masa Valverde, and Riotinto East. The company incurred €6.5 million in
exploration activities in 2023 and has allocated a budget of €8.0 million for exploration in 2024. This
budget encompasses exploration efforts for Proyecto Riotinto, Proyecto Riotinto East, Ossa Morena
Proyecto Touro, and Masa Valverde.
Probability: Low
The probability of facing challenges in replacing reserves is assessed as low. While Atalaya is actively
engaged in exploration activities and has allocated a substantial budget, the inherent uncertainties
associated with the success of exploration campaigns contribute to a moderate likelihood of
encountering difficulties in replacing reserves.
Weight: Medium
The weight of this risk is considered medium due to its potential impact on the continuity of mining
operations. While the company is actively addressing this risk through exploration campaigns and
budget allocations, the uncertainty in the success of future discoveries or acquisitions contributes to
a moderate level of importance assigned to this risk. Atalaya's proactive measures, however, position
it well to manage and navigate potential challenges effectively.
Difficulty obtaining additional financing if existing capex project are over budget
Description of the Risk:
Atalaya faces the risk of encountering difficulty in securing additional financing in the event that
existing Capex projects surpass their allocated budgets. This risk is influenced by various external
factors, including heightened interest rates, recent global financial market volatility, geopolitical
tensions, and inflationary pressures.
Nature of the Risk:
The nature of this risk lies in the potential inability of Atalaya to access the necessary funds required
to complete planned development projects. Unforeseen circumstances such as increased interest
rates or global financial instability could impede the company's ability to secure additional financing,
affecting the successful execution of capital projects.
Mitigation:
Atalaya employs a proactive approach to mitigate this risk. The company has a permanent contact
with counterparties and potential counterparties to ensure the capacity of funding projects and
continuously monitors the financial market conditions, including fluctuations in bank interest rates.
This diligent monitoring allows Atalaya to stay informed about potential changes in the financial
landscape and make timely, informed decisions to secure financing under favourable terms.
Probability: Medium
The probability of facing difficulty in obtaining additional financing is assessed as medium. While
certain factors like geopolitical tensions and market volatility are unpredictable, continuous
monitoring allows the company to navigate potential challenges effectively.
Weight: Medium
The weight of this risk is considered medium. While there is a moderate probability of encountering
challenges in securing additional financing, Atalaya's active monitoring and strategic approach
contribute to effective risk management, preventing it from being classified as high risk.
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Underestimation of Capital Expenditure, Finance, and Licence to Operate
Description:
The identified risk revolves around the potential underestimation of Capex for future projects,
coupled with challenges in obtaining necessary permitting and financing. Atalaya may face
situations where the required capital surpasses initial estimates, leading to financial strain.
Additionally, difficulties in securing permits and financing could potentially result in delays in project
development.
Nature of the Risk:
The nature of this risk lies in the uncertainty surrounding the accurate estimation of capital
requirements and the potential hurdles
financing.
Underestimating capex can strain financial resources, while delays in obtaining permits and
financing may hinder the timely execution of planned projects.
in obtaining essential permits and
Mitigation:
To address this risk, Atalaya has implemented a proactive approach. The company monitors project
controls rigorously to ensure that approved projects are delivered within the predefined parameters
of time, budget, and specified requirements. By maintaining a vigilant oversight on project controls,
Atalaya aims to mitigate the risk of exceeding anticipated capital expenditures and to streamline the
permitting and financing processes.
Probability: Low
The probability of underestimating capital expenditure, facing challenges in obtaining permits, and
experiencing financing difficulties is assessed as low. While Atalaya has implemented proactive
measures to mitigate the risk, the inherent uncertainties in future projects, regulatory landscapes,
and market conditions contribute to a low likelihood of the risk materializing.
Weight: High
The weight of this risk is deemed high due to its potential impact on project timelines, financial
health, and operational efficiency. Inaccurate capital estimations and delays in permitting or
financing can significantly affect Atalaya's overall project execution strategy and financial stability.
The company assigns a high level of importance to monitoring and mitigating this risk to safeguard
its long-term sustainability and growth objectives.
Significant Changes to Commodity Prices
Description:
This risk pertains to the susceptibility of the company´s business to significant changes in
commodity prices, specifically a decline in the price of copper and other metals in world markets.
Commodity prices, known for their volatility, may experience fluctuations that could adversely
impact Atalaya's overall business, operating results, and future prospects.
Nature of the Risk:
The nature of this risk is rooted in the external factor of global market dynamics, particularly the
potential for unpredictable and substantial fluctuations in commodity prices. A decline in copper and
other metal prices could directly affect the revenue and profitability of Atalaya's mining operations.
Mitigation:
To address this risk, Atalaya has implemented proactive measures. The mine's cash costs are
consistently maintained below the market price for copper, even during recent cyclical lows.
Additionally, the company adopts a vigilant approach by constantly monitoring commodity prices.
Atalaya revisits and refines its hedging strategies and policies to navigate and mitigate the impact of
adverse changes in commodity prices.
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Probability: Medium
The probability of significant changes to commodity prices is assessed as medium. While the
company actively monitors and manages this risk, the inherent unpredictability and volatility
associated with global commodity markets contribute to a moderate likelihood of price fluctuations
affecting Atalaya's business operations.
Weight: Medium
The weight of this risk is considered medium due to the potential impact on revenue and profitability.
While significant changes in commodity prices can pose challenges, Atalaya's proactive measures,
such as maintaining cash costs below market prices and active monitoring, contribute to a moderate
level of importance assigned to this risk. The company is equipped to navigate and manage the
potential impact effectively.
Inflation and Cost Pressure to Supply Chain
Description:
This risk pertains to the potential impact of inflation and cost pressures on the Company´s supply
chain, particularly influenced by geopolitical conflicts that have led to substantial increases in prices
for specific products, notably affecting electricity prices. The risk involves the potential escalation of
operational costs due to external factors beyond the company's control.
Nature of the Risk:
The nature of this risk is rooted in the external dynamics of geopolitical conflicts, which can trigger
inflation and elevate costs within the supply chain. The specific impact on electricity prices adds a
layer of vulnerability, potentially straining Atalaya's operational budget and financial health.
Mitigation:
To mitigate this risk, Atalaya actively monitors trends in supply prices, specifically focusing on
electricity prices affected by geopolitical conflicts. The company seeks to establish long-term
agreements wherever available to reduce exposure to volatile prices, providing a strategic buffer
against potential cost escalations.
Probability: Medium
The probability of facing inflation and cost pressures to the supply chain is assessed as medium.
While the company actively monitors and addresses this risk, the unpredictable nature of geopolitical
conflicts and their impact on inflation rates contribute to a moderate likelihood of encountering cost-
related challenges in the supply chain.
Weight: Medium
The weight of this risk is considered medium due to its potential impact on operational costs. While
Atalaya is proactively managing the risk through monitoring and long-term agreements, the external
factors contributing to inflation and cost pressures introduce a moderate level of importance. The
company's mitigation strategies position it reasonably well to navigate and mitigate the impact of
potential cost escalations.
Limited Number of Customers
Description:
This risk relates to the concentration of sales of Atalaya's concentrate production with a limited
number of three customers. A significant portion of the Company's operations are dependent on
these customers and any adverse developments in their operations could have a material impact on
Atalaya's overall operations and financial stability.
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Nature of the Risk:
The nature of this risk lies in the potential vulnerability stemming from a concentrated customer
base. Relying on a limited number of offtakers exposes Atalaya to the business dynamics, decisions,
and potential challenges faced by these key customers, posing a direct threat to the stability of the
company's operations.
Mitigation:
To mitigate this risk, Atalaya actively engages in close and continuous communication with its
offtakers. This close contact ensures a comprehensive understanding of their business operations,
challenges, and strategies. By maintaining a proactive relationship, Atalaya aims to stay informed
and responsive to any changes or developments that may impact its offtakers and, subsequently, its
own operations. Additionally, the company signs spot sales agreements out of the annual excess of
copper production, providing a strategic measure to diversify its customer base and reduce
dependence on a limited number of offtakers.
Probability: Low
The probability of facing challenges due to a limited number of customers is assessed as low. While
Atalaya employs proactive measures through close communication with offtakers and diversification
strategies, the external factors influencing these offtakers' business dynamics introduce a low
likelihood of encountering challenges related to the concentrated customer base.
Weight: Medium
The weight of this risk is considered medium due to its potential impact on the company's operations
and financial stability. While Atalaya actively manages the risk through close communication with
offtakers and diversification efforts, the external factors influencing customer business activities
contribute to a moderate level of importance. The company's mitigation strategies position it
reasonably well to navigate and mitigate the potential impact of challenges stemming from a limited
number of customers.
Lack of Control Over Key Inputs
Description:
This risk revolves around Atalaya's potential inability to control the availability of key inputs critical to
its operations, including electricity price, fuel, explosives, reagents, and steel. These inputs are beyond
the direct influence of management, posing a threat to the company's operational stability and cost
management.
Nature of the Risk:
The nature of this risk is rooted in the external dependency on key inputs, where fluctuations or
disruptions in their availability and pricing can impact Atalaya's operational efficiency and cost
structure. This lack of control introduces a level of vulnerability to external market dynamics.
Mitigation:
Atalaya has implemented strategic measures to mitigate this risk. The procurement department is
actively expanding its network influence to improve the security of the supply chain for key inputs.
In addition, the company has taken proactive steps to manage electricity price volatility by signing a
long-term PPA and is in the process of finalising the installation of a 50 MW solar plant, which
together are expected to cover more than 50% of the company's current electricity needs at a rate
significantly lower than historical prices in Spain. The ongoing evaluation of wind turbines at Riotinto
is another initiative that offers the potential for additional low-cost and carbon-free electricity, with
final evaluations expected in 2024.
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Probability: Medium
The probability of facing challenges due to a lack of control over key inputs is assessed as medium.
While Atalaya actively implements mitigation strategies, the external factors influencing the
availability and pricing of key inputs introduce a moderate likelihood of encountering operational
and cost-related challenges.
Weight: Medium
The weight of this risk is considered medium due to its potential impact on operational efficiency
and cost management. While Atalaya actively manages the risk through network expansion, long-
term agreements, and sustainable energy initiatives, the external dependency on key inputs
contributes to a moderate level of importance. The company's proactive measures position it
reasonably well to navigate and mitigate the potential impact of challenges stemming from a lack
of control over certain key inputs.
Foreign Exchange Volatility
Description:
This risk is associated with the impact of volatility in the EUR:USD exchange rate on the profitability
of the Atalaya Group. Fluctuations in this exchange rate can introduce uncertainties and potential
financial challenges to the company's overall financial performance. An additional layer of complexity
was introduced in 2023 as the USD gradually lost ground against the EUR, declining approx. by 3.5%
throughout the year. Geopolitical tensions, economic shifts, and market sentiments all played their
part in shaping this dynamic landscape.
Nature of the Risk:
The nature of this risk stems from the external influence of currency exchange rate fluctuations. The
EUR:USD volatility, coupled with the gradual depreciation of the USD, directly affects the financial
outcomes of Atalaya, impacting revenue, costs, and overall profitability.
Mitigation:
To mitigate this risk, Atalaya adopts a proactive approach. The company continually monitors the
EUR:USD exchange rate, staying vigilant to changes. Additionally, Atalaya regularly revisits and
refines its hedging strategies and policies. This strategic risk management measure aims to minimize
the impact of currency exchange rate fluctuations on the Group's profitability, especially considering
the evolving geopolitical tensions, economic shifts, and market sentiments.
Probability: Medium
The probability of facing challenges due to foreign exchange volatility is assessed as medium. While
Atalaya actively monitors and manages this risk, the inherent unpredictability associated with
currency exchange rates, compounded by geopolitical and economic factors, introduces a moderate
likelihood of encountering financial challenges.
Weight: Medium
The weight of this risk is considered medium due to its potential impact on the overall profitability of
the Atalaya Group, particularly with the added layer of the USD depreciation. While the company
employs proactive measures through constant monitoring and strategic hedging, the external
influence of foreign exchange volatility, coupled with broader geopolitical and economic dynamics,
contributes to a moderate level of importance. Atalaya's mitigation strategies position it reasonably
well to navigate and mitigate the potential impact of challenges stemming from EUR:USD exchange
rate fluctuations in a dynamic global environment.
Liquidity Risk
Description:
This risk pertains to the exposure of Atalaya's operations and business model to various financial risks
associated with third-party entities. The potential challenges in liquidity management and financial
dependencies on external parties could impact the company's operational and financial stability.
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Nature of the Risk:
The nature of this risk arises from the inherent financial uncertainties tied to third-party entities.
Atalaya's operations are susceptible to liquidity challenges and financial risks originating from
external factors, influencing the company's ability to meet its financial obligations.
Mitigation:
To mitigate this risk, Atalaya employs strategic measures. The company actively manages its liquidity
and financing structure in alignment with its business model, ensuring a balance that supports
operational needs. Additionally, Atalaya maintains a diverse portfolio of banks and funds, spreading
its financial dependencies to reduce reliance on any single entity. This risk management approach
aims to enhance financial resilience and flexibility.
Probability: Medium
The probability of facing liquidity challenges and financial risks from third-party entities is assessed
as medium. While Atalaya actively manages its liquidity and maintains a diverse financial portfolio,
the external factors associated with financial dependencies introduce a moderate likelihood of
encountering liquidity-related challenges.
Weight: Medium
The weight of this risk is considered medium due to its potential impact on operational and financial
stability. While Atalaya's risk mitigation strategies position it reasonably well to navigate liquidity
challenges, the external influence of financial risks from third-party entities contributes to a
moderate level of importance. The company's proactive measures provide a balanced approach to
addressing potential risks associated with liquidity.
Political, Legal, and Regulatory Developments
Description:
This risk focuses on the potential impact of political, legal and regulatory developments on Atalaya.
The Company is subject to extensive regulations, concessions, authorisations, licences and permits,
all of which are subject to expiration, renewal restrictions and various uncertainties. Tax, customs and
royalty laws and regulations also have a potential adverse effect on Atalaya's business, financial
condition and results of operations.
Nature of the Risk:
The nature of this risk arises from the dynamic and evolving landscape of political, legal, and
regulatory environments. Atalaya's operations are exposed to the uncertainties associated with the
expiration and renewal of permits, as well as the potential adverse effects of changing tax, customs,
and royalty regulations.
Mitigation:
To mitigate this risk, Atalaya employs a multifaceted approach. The company actively monitors and
stays informed about legal and political decisions impacting the mining sector by participating in
professional agencies and meetings with peer miners in the area. Atalaya strategically partners with
government and local municipalities to foster positive relationships and navigate regulatory
landscapes effectively. Specific projects, such as the Environmental Declaration (AAU) and mining
permits, undergo meticulous monitoring to achieve successful outcomes. The environmental permit
situation at Proyecto Touro is continually assessed. Moreover, Atalaya, with no material exposure in
the UK, successfully navigated the Brexit transition period without appreciable impact. Recurrent
meetings and analyses conducted by local advisors ensure proactive monitoring and anticipation of
taxation implications for significant business decisions.
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Probability: Low
The probability of facing challenges due to political, legal, and regulatory developments is assessed
as low. While Atalaya actively monitors and strategically engages with stakeholders, the inherent
uncertainties associated with evolving regulations introduce a low likelihood of encountering
operational and financial challenges.
Weight: Medium
The weight of this risk is considered medium due to its potential impact on the regulatory and
operational aspects of Atalaya. The company's proactive and multifaceted mitigation strategies
position it reasonably well to navigate and mitigate the potential impact of challenges stemming
from political, legal, and regulatory developments. The external influence of changing regulations
contributes to a moderate level of importance, warranting continuous vigilance and strategic
engagement.
Rising extraction cost over time as reserves deplete
Description of the Risk:
The risk involves a potential escalation in extraction costs over time at Cerro Colorado mine as high-
grade reserves deplete. The maturity of the mine and the historical exploitation of low-grade minerals
contribute to this risk, resulting in increased unit extraction costs due to longer hauling distances
and the need to extract lower copper concentration minerals.
Nature of the Risk:
The nature of this risk is rooted in the challenges posed by the depletion of high-grade reserves at
the mature Cerro Colorado mine. As the mine transitions to lower-grade minerals, the unit extraction
costs are expected to rise, impacting the economic viability of continued mining operations.
Mitigation:
To mitigate this risk, Atalaya employs a multi-faceted strategy. Regular monitoring of copper prices
and mineral reserve estimates allows the company to assess the economic feasibility of ongoing
mining activities. Additionally, efforts are underway to seek administrative permits for accessing the
mineral mass of the San Dionisio project, which holds high-grade ore. This strategic move aims to
counterbalance the depletion of high-grade reserves at Cerro Colorado.
Probability: Medium
The probability of extraction costs rising over time as reserves deplete is assessed as medium. The
risk is inherent to the mature nature of the Cerro Colorado mine, and while actively managed, the
depletion of high-grade reserves introduces a degree of uncertainty.
Weight: Medium
The weight of this risk is considered medium. While there is a moderate probability of extraction costs
increasing, Atalaya's proactive monitoring and strategic initiatives, such as seeking permits for high-
grade ore in the San Dionisio project, contribute to effective risk management, preventing it from
being classified as high risk.
Unforeseen cost in the final restoration plan
Description of the Risk:
The risk involves the potential for unforeseen costs arising in the final restoration plan undertaken by
Atalaya. Compliance with land reclamation requirements is crucial to mitigate long-term land
disturbance effects resulting from the company's operations, and this may require significant
financial resources.
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Nature of the Risk:
The nature of this risk is linked to the uncertainties surrounding the final restoration plan and the
financial
land reclamation requirements. Unforeseen
challenges or additional costs may emerge during the execution of the restoration plan.
implications associated with fulfilling
Mitigation:
To mitigate this risk, Atalaya has established a systematic approach. A rehabilitation provision is
recorded in connection with the Work Plan, providing a financial buffer for land reclamation. The site
manager plays a key role in monitoring and reviewing the progress of production, enabling the
forecasting of future costs and ensuring that the restoration plan remains within financial
parameters.
Probability: Low
The probability of unforeseen costs in the final restoration plan is assessed as low. Atalaya's proactive
approach, including the recording of a rehabilitation provision and vigilant site management,
contributes to effective risk mitigation and minimizes the likelihood of unexpected financial burdens.
Weight: Low
The weight of this risk is considered low. While the financial implications of land reclamation are
significant, Atalaya's established provisions and the diligent oversight by the site manager contribute
to effective risk management, preventing it from being classified as medium or high risk.
Geopolitical Conflicts
Description:
This risk relates to the impact of recent interstate conflicts on the global economic environment, with
possible effects on migration flows, volatility in regulated markets and inflationary pressures. Atalaya,
which operates in a global context, is susceptible to the far-reaching consequences of geopolitical
conflicts.
Nature of the Risk:
The nature of this risk stems from the external influence of geopolitical conflicts, which can disrupt
global economic conditions, introduce migration challenges, induce market volatility, and exert
inflationary pressure. Atalaya's operations are exposed to the broad-ranging implications of these
conflicts.
Mitigation:
To mitigate this risk, Atalaya adopts a proactive stance. The company closely monitors commodities
prices, supplies prices, and international economic variations, aligning its strategies with the dynamic
geopolitical landscape. By staying informed and responsive to market trends influenced by
geopolitical conflicts, Atalaya aims to navigate potential challenges effectively.
Probability: Medium
The probability of facing challenges due to geopolitical conflicts is assessed as medium, considering
the current global geopolitical landscape. While Atalaya actively monitors and adapts to global
economic fluctuations, the unpredictable nature of geopolitical conflicts leads to a moderate
likelihood of operational and financial challenges.
Weight: Medium
The weight of this risk is considered medium due to its potential impact on the broader economic
conditions and markets where Atalaya operates. The company's proactive monitoring and adaptive
strategies position it reasonably well to navigate and mitigate the potential impact of challenges
stemming from geopolitical conflicts. The external influence of these conflicts contributes to a
moderate level of importance, warranting continuous vigilance and strategic adaptation in response
to evolving global conditions.
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Economic Conditions
Description
This risk involves the potential negative impact on Atalaya's growth and profitability resulting from
changes in general economic conditions or changes in consumption patterns. In particular, the
Chinese market has a significant impact on global copper demand.
Recent economic indicators suggest that global markets are stabilising. However, despite this
positive trend, the risk of economic fluctuations remains. It is therefore essential for Atalaya to remain
vigilant in managing this risk.
Nature of the Risk:
The risk is rooted in the dynamic nature of general economic conditions and consumer behaviour.
Atalaya's growth and profitability are susceptible to fluctuations influenced by broader economic
trends, with a specific focus on the Chinese market, a key player in shaping global copper demand.
Mitigation:
To mitigate this risk, Atalaya employs a vigilant approach. The company actively monitors
commodities prices, supplies prices, and international economic variations. By staying informed
about market trends and economic shifts, Atalaya aligns its strategies with the evolving landscape to
adapt to potential challenges effectively.
Probability: Medium
The probability of facing challenges due to economic conditions is assessed as medium. While
Atalaya actively monitors and adapts to global economic variations, the inherent unpredictability of
economic conditions introduces a moderate likelihood of encountering operational and financial
challenges.
Weight: Medium
The weight of this risk is considered medium due to its potential impact on Atalaya's growth and
profitability. The company's proactive monitoring and adaptive strategies position it reasonably well
to navigate and mitigate the potential impact of challenges stemming from economic conditions.
The external influence of global economic shifts, especially in the Chinese market, contributes to a
moderate level of importance, warranting continuous vigilance and strategic adaptation in response
to evolving economic conditions. Atalaya remains attuned to emerging trends, ensuring its strategies
align with the ever-evolving economic landscape.
Public Health Threats
Description:
This risk entails the potential repercussions on the operations of the Group, as well as its customers
and suppliers, stemming from public health threats, notably the ongoing COVID-19 pandemic. The
company remains actively engaged in global efforts to address the challenges posed by the
pandemic, emphasizing a proactive approach to ensure the resilience and continuity of its operations
in the face of evolving public health situations.
Nature of the Risk:
The risk stems from the unpredictable nature of public health threats that can significantly disrupt
the normal functioning of the Group, its customers, and suppliers. Events like pandemics pose
challenges to health, safety, and operational continuity.
Mitigation:
Atalaya adopts a comprehensive approach to mitigate this risk. The Group continuously monitors
public health threats and implements necessary measures to protect the health and safety of its staff.
Simultaneously, strategic steps are taken to minimize any disruption to operations, ensuring
resilience in the face of health-related challenges.
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Probability: Low
The probability of facing challenges due to public health threats is assessed as low. While Atalaya
actively monitors and responds to health situations, the unpredictable nature of epidemics and
pandemics introduces a low likelihood of encountering operational disruptions.
Weight: Medium
interactions, and supplier
The weight of this risk is considered medium due to its potential impact on the Group's operations,
customer
relationships. Atalaya's proactive monitoring and
implementation of health and safety measures position it reasonably well to navigate and mitigate
the potential impact of public health threats. The external influence of global health situations
contributes to a moderate level of importance, warranting continuous vigilance and strategic
adaptation in response to evolving health conditions.
Operational Risks and Hazards
Description:
This risk encompasses a spectrum of operational challenges and hazards that could have adverse
effects on Atalaya's business, financial condition, and operational results. These include but are not
limited to floods, natural disasters, industrial accidents, labour disputes, structural collapses,
transportation delays, and earthquakes.
Nature of the Risk:
The nature of this risk lies in the unpredictability and potential severity of various operational
challenges and hazards. Events such as floods, accidents, and labour disputes can disrupt regular
operations, impacting safety, financial stability, and overall business performance.
Mitigation:
Atalaya actively invests in health and safety measures to address operational risks and hazards.
Regular analyses are conducted to identify and implement strategies to enhance mine safety. These
proactive measures are designed to minimize the impact of potential challenges and ensure the
well-being of employees and the stability of operations.
Probability: Low
The probability of facing operational challenges and hazards is assessed as low. While Atalaya invests
in health and safety and conducts regular analyses, the unpredictable nature of events such as
natural disasters and industrial accidents introduces a low likelihood of encountering operational
disruptions.
Weight: Medium
The weight of this risk is considered medium due to its potential impact on Atalaya's business,
financial condition, and operational results. The company's commitment to health and safety
measures positions it reasonably well to mitigate the potential impact of operational challenges and
hazards. The external influence of unpredictable events contributes to a moderate level of
importance, warranting continuous vigilance and strategic adaptation to ensure operational
resilience.
Labour Disruptions
Description:
This risk relates to the potential adverse impact on Atalaya due to labour disruptions, including strikes
or other forms of industrial action, which could disrupt normal business operations.
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Nature of the Risk:
The risk is characterized by the potential for disruptions in workforce operations, which can
significantly impact production, efficiency, and overall business continuity. Labour disruptions may
arise from disagreements over labour conditions, concerns, or other disputes between Atalaya and
its workforce.
Mitigation:
Atalaya adopts proactive measures to mitigate the risk of labour disruptions. This includes engaging
in periodic meetings with trade unions to discuss and collaboratively address any changes to labour
conditions and concerns. Additionally, ongoing training programs are implemented to enhance
communication and understanding between the company and its workforce.
Probability: Low
The probability of labour disruptions is assessed as low. While Atalaya actively engages with trade
unions and conducts training programs, the inherent unpredictability of labour relations introduces
a low likelihood of encountering disruptions.
Weight: Medium
The weight of this risk is considered medium due to its potential impact on Atalaya's operational
efficiency and business continuity. The company's proactive engagement with trade unions and
investment in training programs positions it reasonably well to navigate and mitigate potential
labour disruptions. The external influence of labour relations introduces a moderate level of
importance, warranting continuous efforts to foster positive relationships and address concerns
collaboratively.
Dependency on Transportation Infrastructure for Mining Operations
Description:
Atalaya faces the risk of operational disruptions due to its reliance on transportation facilities,
infrastructure, and specific suppliers. A lack or failure of these crucial elements could have adverse
effects on the company's production and development projects.
Nature of the Risk:
The nature of this risk lies in the vulnerability of Atalaya's mining operations to external factors related
to transportation infrastructure. Any disruptions or inadequacies in the transportation network could
impede the smooth functioning of the company's mining activities.
Mitigation:
Atalaya addresses this risk by engaging highly reliable contractors and maintaining robust
contingency plans. These measures aim to ensure that operations remain unaffected even in the face
of potential transportation-related challenges.
Probability: Low
The probability of this risk is assessed as low. Atalaya's emphasis on reliable contractors and
contingency planning mitigates the likelihood of severe disruptions due to transportation issues.
Weight: Medium
The weight of this risk is medium. While the probability is low, the potential impact on production
and development projects necessitates careful consideration and mitigation efforts.
Tailings Dam Permitting
Description:
This risk is associated with the dependence of mining operations on the renewal of permits, in
particular tailings dam permits, throughout the life of mine (LOM). Recent global mining project
failures and increased regulatory requirements are potential threats to the business.
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Nature of the Risk:
The nature of this risk is grounded in the critical importance of securing and renewing permits for
mining operations, specifically those related to tailings dam management. Failures in obtaining or
renewing these permits can result in operational constraints, affecting the overall viability and
continuity of mining activities.
Mitigation:
Atalaya employs proactive measures to mitigate the risk associated with tailings dam permitting.
Continuous communication is maintained with local communities, stakeholders, and the Public
Administration. The company goes beyond legal standards, making strategic investments to
enhance the safety of operations. Notably, in April 2023, Atalaya received a substantial modification
to the AAU for Proyecto Riotinto from the Junta de Andalucía. This modification enabled the
expansion of tailings capacity and the mine footprint, a crucial step for future developments in
regional deposits.
Probability: Low
The probability of encountering challenges in tailings dam permitting is assessed as low. While
Atalaya takes proactive steps, the dynamic nature of regulatory environments and potential changes
in standards introduce a low likelihood of facing permitting hurdles.
Weight: Medium
The weight of this risk is considered medium due to its potential impact on the continuity and
development of mining operations. The company's proactive communication, safety investments,
and recent success in obtaining a significant modification to the AAU contribute to a moderate level
of importance. Continuous vigilance and engagement with regulatory bodies are essential to sustain
operational momentum and future development initiatives.
Water, Electricity and Key Supply Shortages
Description:
Atalaya's mining operations are intricately tied to the availability of essential resources such as water,
electricity, and other key inputs. Any shortage or disruption in the supply of these resources could
significantly impact the operational efficiency and sustainability of the company.
Nature of the Risk:
This risk involves the vulnerability of mining operations to shortages in critical resources. Water and
electricity, being fundamental for mining activities, are particularly crucial. As Atalaya expands, the
demand for these resources will increase, posing a challenge to ensure a continuous and reliable
supply.
Mitigation:
Atalaya adopts a proactive approach to monitor and manage the consumption of water and
electricity. Regular assessments of water levels and electricity prices are conducted. The company's
initiatives include the ongoing construction of a 50 MW solar plant at Riotinto. This solar plant,
combined with a 10-year PPA, is anticipated to provide over 50% of the company's current electricity
needs at a rate significantly lower than historical prices in Spain. Additionally, the potential
installation of wind turbines is under consideration, further diversifying the energy supply and
contributing to cost-effectiveness and environmental sustainability.
Probability: Low
The probability of facing critical shortages in water, electricity, and key inputs is assessed as low.
Atalaya's proactive measures, ongoing construction of the solar plant, and exploration of additional
renewable energy sources contribute to a robust mitigation strategy, minimizing the likelihood of
severe shortages.
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Weight: High
Despite the low probability, the weight of this risk is considered high due to the potential magnitude
of impact on mining operations. Water and electricity are indispensable for mining activities, and any
interruption could result in operational disruptions, affecting productivity and profitability. The
company's strategic initiatives to diversify and secure its energy sources contribute to the high
importance assigned to this risk. Continuous monitoring and expansion of sustainable energy
projects will be crucial in maintaining operational resilience.
Complexity of Environmental Laws
Description:
Atalaya faces the risk associated with the intricate and ever-evolving landscape of environmental
laws and regulations. The complexity of these legal frameworks poses potential challenges and may
lead to increased operational costs for the company.
Nature of the Risk:
This risk stems from the dynamic nature of environmental laws and regulations. As governing
standards change, Atalaya's operational requirements may be impacted, potentially leading to
higher compliance costs. Adhering to new or modified regulations could necessitate adjustments to
operational practices and resource allocation.
Mitigation:
To address this risk, Atalaya has established a dedicated team tasked with continuously monitoring
and reviewing environmental laws. This proactive approach allows the company to stay abreast of
any alterations in regulations promptly. Currently, Atalaya is not aware of any imminent changes;
however, the ongoing vigilance ensures a swift response to any future developments.
Probability: Low
The probability of encountering challenges due to changes in environmental laws is assessed as low.
While the dedicated monitoring team enhances the company's ability to adapt, the inherent
unpredictability of legislative changes contributes to the low probability assigned to this risk.
Weight: Medium
The weight of this risk is considered medium as it reflects the potential impact on operational costs.
While not an imminent threat, the ever-changing regulatory landscape requires a consistent
commitment to monitoring and adaptation. The mitigation efforts in place contribute to managing
the risk at a moderate level, emphasizing the importance of ongoing vigilance and adaptability.
Dependency on Key Management and Critical Skills Loss
Description:
The risk involves the likelihood of losing critical skills across various areas of Atalaya's business,
including
technology, and culture.
Additionally, there is a specific concern regarding the dependency on key management, which could
impact the overall effectiveness of the organization.
leadership/management, personnel, process/structure,
Nature of the Risk:
This risk's nature lies in the potential loss of key skills and expertise critical to the organization's
smooth functioning. It extends to the leadership, personnel, processes, technology, and overall
organizational culture.
Mitigation:
To address this risk, Atalaya has implemented a succession plan for each key position, aiming to
ensure a seamless transition in the event of skill losses. The company focuses on talent development
and retention strategies to minimize the impact of critical skill departures.
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Probability: Low
The probability of this risk is assessed as low. While succession plans are in place, the dynamic nature
of skill retention and the competitive talent landscape contribute to the moderate likelihood of skill
losses.
Weight: Medium
The weight of this risk is medium. Although there is mitigation through succession planning, the
potential impact on critical skill areas warrants ongoing attention and strategic human resource
management.
Risks from Contractors
Description:
Atalaya relies on external contractors, exposing the company to risks associated with the quality and
compliance of these contracted services. The risk encompasses concerns related to changes in
quality, compliance conditions, and overall contractor performance.
Nature of the Risk:
This risk involves potential issues arising from the reliance on external contractors, including
challenges in maintaining quality standards and ensuring compliance with specified conditions.
Poor contractor performance could impact project timelines, budget adherence, and overall
operational efficiency.
Mitigation:
To mitigate risks from contractors, Atalaya employs active monitoring through regular meetings and
communication. These interactions aim to address concerns, discuss any necessary changes to
quality or compliance conditions, and ensure ongoing alignment with project objectives.
Probability: Low
The probability of risks from contractors is assessed as low. Regular monitoring and communication
efforts contribute to mitigating the likelihood of significant issues, but the inherent variability in
contractor performance contributes to the moderate probability.
Weight: Medium
The weight of this risk is medium. While actively managed, the potential impact on project quality,
timelines, and compliance requires consistent oversight and risk mitigation efforts.
Cybersecurity Threats
Description:
Atalaya faces the risk of cybersecurity threats that could compromise its systems, databases, and
regular business activities. A cyber-attack poses a potential threat to the integrity and confidentiality
of critical information within the company.
Nature of the Risk:
The nature of this risk lies in the vulnerability of Atalaya's digital infrastructure to malicious cyber
activities. Unauthorized access, data breaches, or disruptions to regular operations could result from
targeted cyber-attacks, impacting the company's operational continuity and data security.
Mitigation:
To mitigate the cybersecurity risk, Atalaya's IT department consistently reviews internal processes.
This proactive approach aims to identify potential vulnerabilities, enhance security protocols, and
minimize the potential impact of cyber threats on the company's systems and operations.
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Probability: Low
The probability of a cybersecurity threat is assessed as low. While the company actively reviews and
reinforces its IT processes, the evolving nature of cyber threats and the sophistication of potential
attackers contribute to the low probability assigned to this risk.
Weight: Medium
The weight of this risk is considered medium due to the potential impact on information security and
operational disruptions. The ongoing efforts by the IT department contribute to managing the risk
at a moderate level, emphasizing the importance of sustained vigilance and adaptive cybersecurity
measures.
Market Volatility and Share Liquidity
Description:
The market for Atalaya's Ordinary Shares is subject to fluctuations influenced by various factors,
including market sentiment, economic conditions, copper prices, and share liquidity uncertainties.
This poses a risk of significant market volatility and liquidity challenges, potentially leading to a
decrease in share value.
Nature of the Risk:
This risk stems from the inherent volatility of Ordinary Shares, influenced by external factors beyond
the company's control. Market sentiment, economic conditions, commodity prices, and uncertain
share liquidity contribute to the unpredictable nature of share values, impacting market perception
and shareholder value.
Mitigation:
To mitigate this combined risk, Atalaya employs a comprehensive strategy. This includes proactive
communication with investors, robust risk management practices, maintaining a long-term focus,
ensuring liquidity, and complying with regulatory requirements. Active collaboration with analysts is
pursued to foster positive research and reports, influencing market activity positively.
Probability: Medium
The probability of facing market volatility and share liquidity challenges is assessed as medium. While
strategic measures are in place to manage fluctuations, external factors contribute to the moderate
likelihood of encountering these challenges.
Weight: Medium
The weight of this combined risk is medium. Despite proactive measures, the unpredictable nature
of external factors affecting share prices and liquidity necessitates ongoing attention and
adaptability to sustain a positive market perception and shareholder value.
Uncertainty in Dividend Payments
Description:
Dividend payments are uncertain, subject to various factors, including financial performance,
applicable laws, regulations, the Group's financial position, and distributable reserves.
Nature of the Risk:
The nature of this risk revolves around the uncertainty of dividend payments. Multiple factors, both
internal and external, contribute to the unpredictability of whether, when, and how much dividends
will be paid.
Mitigation:
Atalaya implements a conservative dividend policy and maintains transparent communication with
shareholders. The company aims to reduce uncertainty by strengthening confidence in its ability to
sustainably pay dividends.
39 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Probability: Low
The probability of uncertainty in dividend payments is assessed as low. While a conservative policy
and transparent communication help manage this risk, external factors may influence dividend
decisions.
Weight: Medium
The weight of this risk is medium. Ongoing efforts to communicate effectively and uphold a
conservative dividend policy are essential to manage shareholder expectations amid uncertainties.
Climate Change Risk
Description:
As a responsible mining company, Atalaya recognises the increased physical risk posed by water
scarcity and drought due to climate change effects. Our mining operations need, at times, quantities
of make up water to offset evaporative and processing losses; therefore, water stress and drought
presents a significant risk to Atalaya. The impact is far-reaching, potentially resulting in production
delays, increased operating costs and the urgent need to secure alternative water sources.
The nature of the risk:
Water stress and drought are not abstract concepts for us; they are tangible threats. These conditions
can disrupt our operations, increase costs and force us to seek unconventional water supplies. The
consequences go beyond mere inconvenience - they directly threaten our business continuity and
financial performance. As stewards of the environment, we must address these risks head on.
Mitigation:
To mitigate the high probability of risk associated with water stress and drought, Atalaya has
implemented several strategic measures:
Actions executed up to 2023:
-
-
-
Construction of a Water Treatment Plant (WTP) to treat the rainwater and runoff collected
within the mine and use it as process water.
Installation of waste thickener to recover process water. By efficiently separating solids from
water, we reduce the overall demand for fresh water.
Prioritisation of recirculation of process water to minimize external water consumption from
surface water resources. By recycling and reusing water, we reduce our dependence on
external sources.
Actions to be executed in 2024
We are actively exploring alternative water sources beyond traditional freshwater reservoirs.
Application for the reuse of water coming from the mining area wastewater treatment plant (WWTP)
Integration with climate change approach:
Our commitment to mitigating water stress and drought dovetails seamlessly with our broader
approach to climate change. We recognise that environmental challenges are interconnected and
that comprehensive solutions are essential. Our efforts go beyond water management to address
other climate-related risks:
1. Reducing our carbon footprint:
- We are investing in renewable energy sources to reduce our dependence on fossil fuels. The solar
power project mentioned above is an important step in this direction.
- Energy efficient practices across our operations help to reduce our carbon emissions.
40 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
2. Biodiversity conservation:
- We are actively involved in habitat restoration and conservation. Protecting local ecosystems
ensures long-term sustainability.
- We work with local communities and environmental organisations to promote biodiversity
awareness and conservation.
Probability: Medium
While we consider the likelihood of climate-related challenges to be moderate, we remain vigilant.
Changes in emissions patterns and natural variability are complex and uncertain. Our proactive
approach and detailed risk assessments provide a solid foundation, but adaptation remains critical.
Weight: High
This risk carries a high weight due to its potential impact. Significant production delays and increased
operating costs are real possibilities. Our climate-related risk assessment underlines the urgency of
addressing water stress and drought under current and projected conditions.
41 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Operating Review
Proyecto Riotinto
The following table presents a summarised statement of operations of Proyecto Riotinto for the three
and twelve month periods ended 31 December 2023 and 2022.
Units expressed in accordance with the
international system of units (SI)
Unit
Q4 2023
Q4 2022
FY2023
FY2022
Ore mined
Waste mined
Ore processed
Copper ore grade
Copper concentrate grade
Copper recovery rate
Copper concentrate
Copper contained in concentrate
Payable copper contained in
concentrate
Cash cost
All-in sustaining cost*
t
t
t
%
%
%
t
t
t
US$/lb
payable
US$/lb
payable
3,742,814
3,540,155
14,944,638
14,884,361
7,362,657
5,329,252
32,182,904
24,661,569
4,138,368
3,958,654
15,790,098
15,410,459
0.36
19.83
85.47
64,414
12,775
12,131
2.90
3.16
0.41
20.27
86.24
0.38
20.72
86.62
0.40
20.95
85.84
68,908
249,321
249,543
13,969
13,280
2.90
3.12
51,667
52,269
49,174
49,773
2.79
3.09
3.16
3.37
There may be slight differences between the numbers in the above table and the figures announced in the
quarterly operations updates that are available on Atalaya’s website at www.atalayamining.com
$/lb Cu payable
Mining
Processing
Other site operating costs
Total site operating costs
By-product credits
Freight, treatment charges and other offsite costs
Total offsite costs
Cash costs
Cash costs
Corporate costs
Sustaining capital (excluding one-off tailings expansion)
Capitalised stripping costs
Other costs
Total AISC
Note: Figures may not add up due to rounding.
Mining and Processing
Mining
Q4 2023
Q4 2022
FY2023
FY2022
0.92
0.84
0.67
2.44
(0.11)
0.57
0.47
2.90
2.90
0.09
0.02
0.08
0.06
3.16
0.70
1.11
0.59
2.40
0.86
0.89
0.56
2.30
0.79
1.31
0.54
2.65
(0.07)
(0.09)
(0.08)
0.57
0.50
2.90
2.90
0.09
0.06
-
0.08
3.12
0.58
0.49
2.79
2.79
0.08
0.03
0.12
0.07
3.09
0.60
0.52
3.16
3.16
0.08
0.06
0.01
0.06
3.37
Ore mined was 3.7 million tonnes in Q4 2023 (Q4 2022: 3.5 million tonnes and 14.9 million tonnes in
FY2023 (FY2022: 14.9 million tonnes).
Waste mined was 7.4 million tonnes in Q4 2023 (Q4 2022: 5.3 million tonnes) and 32.2 million tonnes
in FY2023 (FY2022: 24.7 million tonnes). Increased waste mining was completed at Cerro Colorado in
FY2023 to allow for the move of mining equipment to the San Dionisio area.
42 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Processing
The plant processed ore of 4.1 million tonnes during Q4 2023 (Q4 2022: 4.0 million tonnes) and 15.8
million tonnes in FY2023 (FY2022: 15.4 million tonnes), again delivering plant performance above its
15 million tonne per annum nameplate capacity.
Copper grade was 0.36% in Q4 2023 (Q4 2022: 0.41%) and 0.38% in FY2023 (FY2022: 0.40%). The copper
grade in Q4 2023 was impacted in part by intense rainfall in November which prevented access to
higher grade areas of the Cerro Colorado pit and required the use of low-grade stockpiles to
supplement plant feed.
Copper recovery was 85.47% in Q4 2023 (Q4 2022: 86.24%) and 86.62% in FY2023 (FY2022: 85.84%).
Production
Copper production was 12,775 tonnes in Q4 2023 (Q4 2022: 13,969 tonnes) and 51,667 tonnes in FY2023
(FY2022: 52,269 tonnes). Production for FY2023 was slightly below FY2022 as a result of lower grades,
partly offset by higher ore throughput and recoveries.
On-site copper concentrate inventories were approximately 6,722 tonnes at 31 December 2023 (31
December 2022: 3,529 tonnes).
Copper contained in concentrates sold was 12,928 tonnes in Q4 2023 (Q4 2022: 14,027 tonnes) and
50,808 tonnes in FY2023 (FY2022: 52,323 tonnes).
Proyecto Riotinto
In April 2023, the Company was granted a substantial modification to the existing Unified
Environmental Authorisation (or in Spanish, Autorización Ambiental Unificada ("AAU")) for Proyecto
Riotinto by the Junta de Andalucía. The AAU allows for the expansion of tailings capacity and the
mine footprint at Riotinto and represents an important step towards developing regional deposits
such as San Dionisio and San Antonio.
The Company is advancing the permitting process associated with the San Dionisio final pit, which
represents a key component of the integrated mine plan outlined in the 2023 Riotinto PEA. Waste
stripping at San Dionisio began in Q4 2023 and will continue in 2024 in order to prepare the area for
future mining phases.
E-LIX Phase I Plant
Final construction activities are in progress at the E-LIX Phase I plant. Initial copper cathodes were
produced in December 2023 during the commissioning of portions of the plant. Full commissioning
and ramp-up of the facility are expected during H1 2024.
Once fully operational, the E-LIX plant is expected to produce high-purity copper or zinc metals on
site, allowing the Company to potentially achieve higher metal recoveries from complex polymetallic
ores, lower transportation and concentrate treatment charges and a reduced carbon footprint.
Riotinto District – Proyecto Masa Valverde
In March 2023, the Company announced that PMV was granted an AAU by the Junta de Andalucía,
following an application process that was initiated by the Company in December 2021. The AAU is an
integrated process that combines the Environmental Impact Assessment and other authorisations
and specifies requirements to avoid, prevent and minimise a project's impact on the environment
and the area’s cultural heritage. In November 2023, the exploitation permit for the Masa Valverde and
Majadales deposits was officially granted.
Various evaluation and optimisation workstreams will continue in 2024. In addition, two exploration
rigs will remain active at PMV.
Proyecto Touro
Atalaya remains fully committed to the development of the Touro copper project, which has the
potential to provide substantial benefits to Galicia and also support the European Union's critical raw
materials mandate.
43 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Touro has the potential to become a new source of copper production for Europe. As such, the project
could also be granted "Strategic Project" status by the EU, which can be awarded to projects "based
on their contribution to the security of supply of strategic raw materials, their technical feasibility,
sustainability and social standards", as part of the Critical Raw Materials Act. Copper was added to
the list of "Strategic Raw Materials" owing to its importance for strategic sectors and technologies
and due to the supply-demand imbalance that is expected in the near future.
Running parallel with the ongoing Touro permitting process, the Company continues to focus on
numerous initiatives related to the social licence, including engaging with the many stakeholders in
the region to provide detailed information on the new and improved project design. Positive and
favourable feedback from numerous meetings with municipalities, farmers and fishermen
associations and other industries indicate meaningful support towards the development of a new
and modern mining project.
The Company continues to successfully restore the water quality of the rivers around Touro and is
operating its water treatment plant, which is addressing the legacy issues associated with acid water
runoff from the historical mine, which closed in 1987. The field-work carried out by Atalaya has
resulted in an immediate and visible improvement of the water systems surrounding the project,
with the progress being recognised by local stakeholders and the media.
Atalaya continues to be confident that its approach to Touro, which includes fully plastic lined
thickened tailings with zero discharge, is consistent with international best practice and will satisfy
the most stringent environmental conditions that may be imposed by the authorities prior to the
development of the project.
Proyecto Ossa Morena
In 2023, exploration drilling continued with one rig at the Guijarro-Chaparral, La Hinchona and the
Alconchel-Pallares copper-gold projects. One rig is expected to be active throughout 2024.
Riotinto District – Proyecto Riotinto East
Drill testing of selected coincident FLEM and AGG anomalies is in progress with one rig.
Electricity Market in Spain
Realised Prices
in FY2023
improved significantly from the unprecedented
Market electricity prices
levels
experienced in FY2022 following Russia’s conflict with Ukraine. Factors that contributed to the price
normalisation in FY2023 include significantly lower gas prices, strong gas inventory levels in Europe,
mild weather in much of Europe and strong contributions from renewable power generation sources
in Iberia. After including the contribution from the Company's 10-year power purchase agreement
("PPA"), realised electricity prices in FY2023 were approximately 60% lower than the Company's
average realised electricity price in FY2022.
So far in FY2024, market electricity prices have continued to trend lower, reaching levels that are
consistent with long run averages that existed in Spain until mid-2021.
50 MW Solar Plant
Construction continues to advance at the 50 MW solar plant at Riotinto. As a result of certain
procurement and installation delays, the contractor has informed the Company that initial power
generation is now expected to begin in Q2 2024.
In order to reduce exposure to the spot electricity market until the 50 MW solar plant is operating,
the Company has entered into new short term PPAs such that the majority of Riotinto’s electricity
requirements for H1 2024 are now subject to fixed prices.
Once fully operational, the 50 MW solar plant is expected to provide approximately 22% of Riotinto's
current electricity needs. Together, the 50 MW solar plant and 10-year PPA will provide over 50% of
the Company's current electricity requirements at a rate well below historical prices in Spain.
44 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Corporate Activities Update
Intention to Move to the Main Market
In November 2023, the Company announced its intention to apply for its ordinary shares to be
admitted to the premium listing segment of the Official List maintained by the Financial Conduct
Authority ("FCA") and to trading on the London Stock Exchange plc's main market for listed securities
(together, “Admission”).
On 21 December 2023, the Company announced the application process was ongoing, outlined that
Admission remained subject to a number of conditions including the approval by the FCA of a
prospectus and noted that Admission would not take place until after the announcement of the
Company’s 2023 Annual Results.
The Company continues to progress the application process and will provide further update on the
potential timing of Admission in due course.
Re-domiciliation
In November 2023, Atalaya announced its intention to re-domicile the Company by transferring its
registered office from the Republic of Cyprus to the Kingdom of Spain and convened an
Extraordinary General Meeting ("EGM") to seek approval for various related matters.
On 12 December 2023, the Company held the EGM, at which all resolutions were approved by the
Company's shareholders.
As a result, various procedural and legal steps are underway. Completion of the proposed re-
domiciliation continues to be expected before the end of May 2024.
Operational Guidance
The forward-looking information contained in this section is subject to the risk factors and
assumptions contained in the cautionary statement on forward-looking statements included in the
Basis of Reporting. The Company is aware that recent geopolitical developments and the impact on
energy prices and other supplies may still have further effects or impact how the Company can
manage it operations and is accordingly keeping its guidance under regular review. Should the
Company consider the current guidance no longer achievable, then the Company will provide a
further update.
Proyecto Riotinto operational guidance for 2024 is as follows:
Unit
Guidance 2024
Ore mined
Waste mined
Ore processed
Copper ore grade
Copper recovery rate
million tonnes
million tonnes
million tonnes
%
%
~19
~25
15.3 – 15.8
0.39 – 0.41
84 – 86
Contained copper
tonnes
51,000 – 53,000
Cash costs
All-in sustaining cost
$/lb payable
$/lb payable
2.80 – 3.00
3.00 – 3.20
Production
As announced in the Company’s Q4 2023 Operations Update, copper production guidance is 51,000
– 53,000 tonnes for FY2024, which is consistent with FY2023 production levels. As a result of the
anticipated grade profile, FY2024 production is expected to be weighted slightly towards H2 2024.
45 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Operating Costs
For the most part, the prices of key inputs stabilised in FY2023, following the significant inflationary
pressures that were experienced in FY2022. However, the unit prices of consumables such as
explosives, diesel and lime remain above 2021 levels. Positively, improving prices for spot market
electricity and gas in Spain are expected to benefit Atalaya’s cost position.
Operating cost guidance for FY2024 are a cash cost range of $2.80 – 3.00/lb copper payable and an
AISC range of $3.00 – 3.20/lb copper payable. AISC excludes one-off investments in the tailings dam
(consistent with prior reporting) and waste stripping at the San Dionisio area, which are included in
capital expenditure guidance below.
Capital Expenditures
Non-sustaining capital expenditure guidance for FY2024 is €64 – 73 million. This includes €4 – 5
million for completion of the 50 MW solar plant, €5 – 7 million for completion and ramp-up of the E-
LIX Phase I Plant (a portion of which will be accounted for as prepayments to Lain Technologies), €42
– 46 million for San Dionisio waste stripping, dewatering and road relocation and €13 – 15 million for
expansion of the existing Riotinto tailings facility.
Exploration
Atalaya’s exploration guidance for FY2024 is €5 – 7 million.
46 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Financial Review
Income Statement
The following table presents a summarised consolidated income statement for the three and twelve
month periods ended 31 December 2023 and 31 December 2022.
(Euro 000’s)
Three month
ended 31 Dec
2023
Three month
ended 31 Dec
2022
Twelve month
ended 31 Dec
2023
Twelve month
ended 31 Dec
2022
Revenues from operations
Cost of sales
Corporate expenses
Exploration expenses
Care and maintenance expenditure
Other income
EBITDA
Depreciation/amortisation
Net foreign exchange (loss)/gain
Net finance (cost)/income
Tax
Profit for the year
Three months financial review
85,591
(65,038)
(4,713)
(1,311)
(1,199)
558
13,888
(10,635)
(2,038)
(422)
4,422
5,215
99,893
(71,797)
(4,598)
(3,801)
(1,494)
(4)
18,199
(8,775)
(4,181)
1,030
1,766
8,039
340,346
361,846
(247,290)
(289,554)
(12,741)
(6,467)
(2,384)
1,636
73,100
(37,800)
(1,278)
2,071
570
36,663
(9,954)
(4,257)
(3,053)
286
55,314
(34,119)
11,546
(421)
(1,394)
30,926
Revenues for the three-month period ended 31 December 2023 amounted to €85.6 million (Q4 2022:
€99.9 million). The decrease in revenues compared to the same quarter of the previous year was
mainly driven by a decrease in concentrate sales volumes.
Realised prices excluding QPs were US$3.78/lb copper during Q4 2023 compared with US$3.70/lb
copper in Q4 2022. The realised price during the quarter, including QPs, was approximately
US$3.75/lb.
Cost of sales for the three months ended 31 December 2023 totalled €65.0 million, compared to €71.8
million in Q4 2022. The decrease in costs was mainly attributable to lower prices for electricity and
steel grinding balls.
Cash costs of US$2.90/lb payable copper during Q4 2023 compared with US$2.90/lb payable copper
in the same period last year. Cash costs remained consistent with the previous year, primarily due to
the offsetting effect of a reduction in electricity costs (a decrease of approx. €8.8 million) in 2023,
counterbalanced by an increase in earthworks waste. AISC for Q4 2023, excluding one-off
investments in the tailings dam, were US$3.16/lb payable copper compared with US$3.12/lb payable
copper in Q4 2022.
Sustaining capex for Q4 2023 amounted to €0.5 million compared with €1.6 million in Q4 2022.
Sustaining capex mainly related to continuous enhancements in the processing systems of the plant.
In addition, the Company invested €3.4 million in the project to increase the tailings dam during Q4
2023 (Q4 2022: €4.8 million). Stripping costs capitalised during Q4 2023 amounted to €2.0 million
(Q4 2022: €nil).
In Q4 2023, the Capex for constructing the 50 MW solar plant was €2.2 million. Additionally,
investments in the E-LIX Phase I plant totalled €5.2 million, of which €1.7 million was booked as
prepayments for a service contract with Lain Technologies Ltd.
Corporate expenses for Q4 2023 totalled €4.7 million (Q4 2022: €4.6 million). This includes non-
operating costs of the Cyprus office, corporate legal and consultancy costs, ongoing listing costs,
officers and directors' emoluments, and salaries and related costs of the corporate office.
Exploration costs on Atalaya's project portfolio for the three-month period ended 31 December 2023
amounted to €1.3 million compared to €3.8 million in Q4 2022.
47 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
EBITDA for the three months ended 31 December 2023 amounted to €13.9 million compared with Q4
2022 of €18.2 million.
The main item below the EBITDA line is depreciation and amortisation of €10.6 million (Q4 2022: €8.8
million). In Q4 2023, net financing costs amounted to a negative €0.4 million (compared to positive
€1.0 million in Q4 2022).
Twelve months financial review
Revenues for the twelve-month period ending 31 December 2023 totalled €340.3 million, compared
to €361.8 million in FY 2022. This decline is primarily attributed to reduced realised prices and lower
concentrates sold.
Copper concentrate production during the twelve-month period ended 31 December 2023 was
249,321 tonnes (FY 2022: 249,543 tonnes) with 246,128 tonnes of copper concentrates sold in the
period (FY 2022: 251,268 tonnes). The production levels remained similar in FY 2023. Inventories of
concentrates as at the reporting date were 6,722 tonnes (31 Dec 2022: 3,529 tonnes).
Realised copper prices, excluding QPs, for FY 2023 were US$3.80/lb copper compared with US$3.96/lb
copper in the same period of 2022. Concentrates were sold under offtake agreements for the
production not committed. The Company did not enter into any hedging agreements in 2023.
Cost of sales for the twelve-month period ended 31 December 2023 amounted to €247.3 million,
compared with €289.6 million in FY 2022. Lower operating costs in 2023 were due to a reduction in
input costs compared with the 2022 period, where the high cost of electricity, diesel and other
supplies were the result of inflation and the geopolitical situation.
Cash costs of US$2.79/lb payable copper for FY 2023 show a decrease compared to US$3.16/lb payable
copper in the corresponding period last year. This reduction in cash costs can be primarily attributed
to a significant decrease in electricity costs (approximately €52.5 million lower) and other supplies,
including freight prices. The AISC, excluding investment in the tailings dam for the twelve-month
period, stood at US$3.09/lb payable copper, a decrease from US$3.37/lb payable copper in FY 2022.
This decline is mainly a result of lower cash costs, although partly offset by higher capitalised
stripping costs.
Sustaining capex for the twelve-month period ended 31 December 2023 amounted to €3.4 million,
compared with €6.2 million in the same period the previous year. Sustaining capex related to
enhancements in plant processing systems. In addition, the Company invested €13.7 million in the
project to extend the tailings dam, compared with €14.1 million in 2022.
Capex associated with the construction of the 50 MW solar plant amounted to €12.9 million in FY
2023, while investments in the E-LIX Phase I plant totalled €18.1 million, of which €9.1 million was
booked as prepayments for service contract to Lain Technologies Ltd.
Corporate costs for the period ended December 2023 were €12.7 million, compared with €10.0 million
in FY 2022. Corporate costs mainly include the Company's overhead expenses.
Exploration costs related to Atalaya's project portfolio for the twelve months ended 31 December 2023
were €6.5 million compared to €4.3 million for the same period last year. The major exploration work
costs were incurred at Proyecto Masa Valverde and Ossa Morena.
EBITDA for the twelve months ended 31 December 2023 amounted to €73.1 million, compared with
€55.3 million in FY 2022.
Depreciation and amortisation amounted to €37.8 million for the twelve-month period ended 31
December 2023 (FY 2022: €34.1 million).
Net foreign exchange loss amounted to €1.3 million in FY 2023 (€11.5 million gain in FY 2022).
For FY 2023, net finance income amounted to positive €2.1 million, compared to net finance costs of
€0.4 million in FY 2022. This increase is driven mainly by the €3.5 million of interest received as a
result of the agreement reached with Astor on 17 May 2023.
48 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Financial Position
(Euro 000’s)
ASSETS
Non-current assets
Other current assets
Tax refundable
Cash and cash equivalents
Total Assets
Shareholders’ Equity
LIABILITIES
Non-current liabilities
Current liabilities
Total Liabilities
Total Equity and Liabilities
31 Dec 2023
31 Dec 2022
473,221
76,241
100
121,007
670,569
433,494
103,029
100
126,448
663,071
492,392
466,297
49,447
128,730
178,177
670,569
51,244
145,530
196,774
663,071
Assets
As of 31 December 2023, total assets amounted to €670.6 million, up from €663.1 million on 31
December 2022, representing an increase of €7.5 million. This growth is mainly driven the Group's
significant enhancements in the assets at Proyecto Riotinto. The decrease in cash and cash
equivalents is mainly due to increased financing activities, driven by higher dividend payments and
the repayment of loans.
Non-current assets as of 31 December 2023, amounted to €473.2 million (2022: €433.5 million). This
category includes €384.7 million in Property, Plant, and Equipment (2022: €354.9 million), €49.4
million in intangible assets (2022: €53.8 million), €26.7 million in non-current receivables (2022: €16.4
million), €1.1 million in non-current financial assets (2022: €1.1 million), and €11.3 million in deferred tax
assets (2022: €7.3 million).
Other current assets, as of 31 December 2023, amounted to €76.2 million (2022: €103.0 million). Within
this category, €42.9 million (2022: €64.2 million) pertained to trade and other receivables, and €33.3
million (2022: €38.8 million) related to spare parts and ore in stockpile classified as inventories.
Current trade and other receivables as of 31 December 2023, amounted to €42.9 million, a decrease
from €64.2 million in the previous year. This includes trade receivables at fair value (subject to
provisional pricing) of €10.1 million, trade receivables from shareholders at fair value (subject to
provisional pricing) of €5.1 million, other receivables from related parties at amortized cost of €56k,
deposits of €37k, VAT receivable of €21.0 million, prepayments totalling €5.9 million, and other
current assets of €0.8 million.
Liabilities
Non-current liabilities were €49.4 million, a decrease from €51.2 million in 2022. Current liabilities
amounted to €128.7 million, down from €145.5 million in the previous year. Consequently, Total
Liabilities decreased to €178.2 million from €196.8 million in 2022. The comprehensive view of Total
Equity and Liabilities for 2023 stood at €670.6 million, marking an increase from €663.1 million in the
previous year.
The most significant caption of non-current liabilities is the provision amounting to €27.2 million as
at 31 December 2023 (2022: €24.1 million). In addition to the provision, non-current liabilities included
the long term portion of borrowings of €16.1 million (2022: €20.8 million), the long-term portion of
leases €3.9 million (2022: €4.4 million), and trade payables of €2.2 million (2022: €2.0 million).
49 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
As of 31 December 2023, current liabilities stood at €128.7 million, compared to €145.5 million in 2022.
This balance includes borrowings related to the repayment of the Deferred Consideration to Astor
facility, Solar Plant facility, and other operating facilities, amounting to €50.6 million (2022: €52.6
million). Trade and other payables as of 31 December 2023 amounted to €75.9 million, reflecting a
decrease from €90.0 million in the previous year (2022). Trade payables include suppliers, totalling
€70.3 million, down from €85.0 million in 2022, trade payables to shareholders (Note 30.5), amounting
to €0.2 million, consistent with 2022, accruals, which increased to €3.4 million from €3.3 million, VAT
payable, which increased to €0.4 million from €0.3 million, and other payables, which increased to
€1.7 million from €1.4 million.
Results
The Group’s and Company´s consolidated results are set out on page 123.
Liquidity and Capital Resources
Atalaya monitors factors that could impact its l5iquidity as part of the Company’s overall capital
management strategy. Factors that are monitored include, but are not limited to, the market price
of copper, foreign currency rates, production levels, operating costs, capital and administrative costs.
The following is a summary of Atalaya’s cash position as at 31 December 2023 and 2022, and cash
flows for the twelve months ended 31 December 2023 and 2022.
Liquidity Information
(Euro 000’s)
Unrestricted cash and cash equivalents at Group level
Unrestricted cash and cash equivalents at Operation level
Restricted cash and cash equivalents at Operation level
Consolidated cash and cash equivalents
Net cash position
Working capital surplus
31 Dec 2023
31 Dec 2022
94,868
26,139
-
121,007
54,320
68,618
108,550
17,567
331
126,448
53,085
84,047
Unrestricted cash and cash equivalents as at 31 December 2023 decreased to €121.0 million from
€126.1 million at 31 December 2022. The increase in cash balances is due to the cash outflows
generated during 2023 mainly related to financing activities. Cash balances are unrestricted and
include balances at operational and corporate level. Restricted cash amounted at 31 December 2022
to €0.3 million was held in escrow, which represented funds utilized by the Company to cover
possible remaining costs due to Astor following litigation during 2022. However, due to the
settlement reached with Astor on 17 May 2023 whereby Astor agreed to repay €3.5 million of interest
previously paid to it to finalise the litigation, the previously restricted cash has now been released and
reversed.
As of 31 December 2023, Atalaya reported a working capital surplus of €68.6 million, compared with
a working capital surplus of €84.0 million at 31 December 2022. The decrease in working capital
surplus in 2023 related to the decrease in current liabilities. Cash decreased compared to the previous
year. At 31 December 2023, trade payables had decreased by 15.9% compared with the same period
last year, mainly attributed to the lower inflation.
The Directors consider the current net cash position as well as the existing levels of the commodity
prices and the current liquidity position to mitigate any potential financial risks linked to the liquidity
position of the Company.
50 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Overview of the Group’s Cash Flows
(Euro 000’s)
Cash flows from operating activities
Cash flows used in investing activities
Cash flows from financing activities
Net increase in cash and cash equivalents
Net foreign exchange differences
Total net cash flow for the period
Twelve month
ended 31 Dec 2023
Twelve month
ended 31 Dec 2022
64,743
(50,406)
(18,500)
(4,163)
(1,278)
(5,441)
38,503
(53,529)
22,411
7,385
11,546
18,931
In the twelve-month period ending 31 December 2023, cash and cash equivalents experienced a
decrease of €5.4 million. This reduction resulted from cash generated by operating activities
amounting to €64.7 million, offset by cash used in investing activities totalling €50.4 million and
financing activities amounting to €18.5 million, along with a net foreign exchange negative impact
of €1.3 million.
Cash generated from operating activities before changes in working capital reached €72.2 million,
aligning with an EBITDA of €73.1 million. Atalaya reduced its trade receivables by €10.9 million and
inventory levels by €5.5 million, while trade payables decreased by €14.9 million. The company
incurred corporate tax payments totalling €5.2 million during this period.
Investing activities for the year 2023 amounted to €50.4 million, primarily directed towards capital
expenditures related to the tailings dam project, the solar plant, and ongoing improvements to the
processing systems of the plant.
Financing activities in 2023 totalled €18.5 million, reflecting a decrease in financing mainly attributed
to dividends paid and the repayment of existing unsecured credit facilities.
Dividends
Consistent with its strategy to create and deliver shareholder value, the Company approved in 2021 a
Dividend Policy which make an annual payout of between 30% and 50% of free cash flow generated
during the applicable financial year ("Ordinary Dividend"). This policy took effect since the financial
year 2022.
The annual Ordinary Dividend is paid in two half-yearly instalments and announced in conjunction
with future interim and full year results which is submitted for approval by the Board of Directors.
Dividends related to fiscal year 2022
In March 2023, the Board of Directors proposed a final dividend for 2022 of US$0.0385 per ordinary
share, equivalent to approximately 3.15 pence per share. This Dividend was approved by the
Company's shareholders at its 2023 Annual General Meeting, and paid on 8 August 2023 (Note 12).
Dividends related to fiscal year 2023
On 9 August 2023, the Company’s Board of Directors declared a 2023 Interim Dividend of US$0.05
per ordinary share, equivalent to approximately 3.9 pence per share and was paid on 28 September
2023.
A final dividend of US$0.04 per share has been proposed for approval by shareholders at the 2024
Annual General Meeting. This would give a total dividend in respect of 2023 of US$0.09 per share.
51 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Our share price
During the year the Atalaya share price showed a significant recovery with respect to the levels
reported at the beginning of the year (+9.4%).
The Group’s main stock market indicators in 2023 and 2022 were as follows:
Main stock market indicators
Shareholder remuneration ($/share)
Share price at end of period (£)
Period average share Price
Period high (£/ share)
Period low (£/ share)
2023
0.0900(1)
3.61
$3.33
3.80
2.86
2022
0.0745
3.30
$3.28
4.48
1.88
Number of shares outstanding at the end of the period
139,879,209
139,879,209
Market capitalization at the end of period (£ million)
Dividend yield (%)
505.0
2.0(1)
461.6
1.9
(1) Estimated assuming the final 2023 dividend proposed by the Board of Directors is approved by the
Shareholders meeting in June 2024.
Creditors’ Payment Terms
Atalaya recognises its responsibilities to its supply chain partners and accepts the requirement to
settle supplier payments on time.
Accordingly, the Company undertakes to:
-
-
-
-
-
-
Pay suppliers on time by paying 95% of invoices within the agreed payment terms and
without attempting to change terms retrospectively. We also aim to pay 95% of all invoices
within 60 days, and 95% of invoices from businesses with fewer than 50 employees within 30
days.
Give clear guidance to suppliers by making readily available clear guidance on payment
procedures and invoicing.
At on-boarding stage and on an ongoing basis, notify suppliers if there is any reason why an
invoice may not be paid to the agreed terms of their contract.
Inform suppliers of how they can raise complaints and disputes and provide suppliers with
a point of contact for payment queries.
Adopt and encourage good practice by confirming that lead suppliers have adopted the
good practise throughout their own supply chains.
Avoid any practices that adversely affect the supply chain.
The Company’s standard payment terms are 60 days for large enterprises and 30 days for small
enterprises.
Treasury shares
As at 31 December 2023 and at the date of this report, the Company held nil (2022: nil) ordinary shares
as treasury shares.
Foreign Exchange
In FY2023, Atalaya recognised a foreign exchange loss of €1.3 million (FY2022 gain: €11.5 million). The
foreign exchange gain mainly related to variances in EUR and USD conversion rates during the
period as all sales are settled and occasionally held in USD.
52 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
The following table summarises the movement in key currencies versus the EUR:
Average rates for the periods
GBP – EUR
USD – EUR
Spot rates as at
GBP – EUR
USD – EUR
Twelve
months
ended
Twelve
months
ended
31 Dec 2023
31 Dec 2022
0.8698
1.0813
0.8691
1.105
0.8528
1.0530
0.8869
1.0666
During 2023 and 2022, Atalaya did not have any currency hedging agreements.
Critical accounting policies, estimates, judgements, assumptions
and accounting changes
The preparation of Atalaya’s Financial Statements in accordance with IFRS requires management to
made estimates and assumptions that affected amounts reported in the Financial Statements and
accompanying notes. There is a full discussion and description of Atalaya’s critical accounting
estimates and judgements in the audited financial statements for the year ended 31 December 2023
(Note 3.3).
Statement of Going Concern
These audited consolidated financial statements have been prepared based on accounting
principles applicable to a going concern which assumes that the Group will realise its assets and
discharge its liabilities in the normal course of business. Management has carried out an assessment
of the going concern assumption and has concluded that the Group will generate sufficient cash and
cash equivalents to continue operating for the next twelve months.
The Directors, after reviewing different scenarios with current commodities prices, the current cash
resources, forecasts and budgets, timing of cash flows, borrowing facilities, sensitivity analyses and
considering the associated uncertainties to the Group’s operations for a period of at least 12 months
since the approval of these audited consolidated financial statements have a reasonable expectation
that the Company has adequate resources to continue operating for the foreseeable future.
Accordingly, the consolidated financial statements continue to be prepared on a going concern basis
(see Note 2.1(b)).
The Directors have assessed the going concern status of the Group, considering the period to 31
December 2024.
Management continues to monitor the impact of geopolitical developments. Currently no significant
impact is expected in the operations of the Group.
The Group’s business activities, together with those factors likely to affect its future performance, are
set out in the Strategic Report, and in particular within the Operating Review. Details of the cash
flows of the Group during the period, along with its financial position at the period end, are set out in
the Financial Review. The consolidated financial statements include details of the Group’s cash and
cash equivalents Note 21, and details of borrowings are set out in Note 28. When assessing the going
concern status of the Group, the Directors have considered in particular its financial position,
including its significant balance of cash and cash equivalents and the terms and remaining durations
of the borrowing facilities in place. The Group had a strong financial position as at 31 December 2023,
with combined cash and cash equivalents of €121.0 million. Total borrowings were €66.7 million,
resulting in a net debt position of €54.3 million. Of the total borrowings, the 76% is repayable within
one year, and 24% repayable between one and five years.
53 | Atalaya Mining plc 2023 Annual Report
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When assessing the prospects of the Group, the Directors have considered the Group’s copper price
and foreign exchange forecasts, the Group’s expected production levels, operating cost profile,
capital expenditure and developments projects. These forecasts are based on the Group’s budgets
and life-of-mine models, which are also used when assessing relevant accounting estimates,
including depreciation, deferred stripping and closure provisions. This analysis has focused on the
existing asset base of the Group, without factoring in potential development projects, which is
considered appropriate for an assessment of the Group’s ability to manage the impact of a depressed
economic environment. The analysis has only included the draw-down of existing committed
borrowing facilities and has not assumed that any new borrowing facilities will be put in place. The
Directors have assessed the key risks which could impact the prospects of the Group over the going
concern period and consider the most relevant to be risks to the copper price outlook, as this is the
factor most likely to result in significant volatility in earnings and cash generation together with
geopolitical risks than can affect to the supply chain, freights costs and electricity market. In this
matter, the Group have implemented improvements as Solar Plant, agreement of a PPA with the
electricity supplier of Riotinto.
Based on their assessment of the Group’s prospects and viability, the Directors have formed a
judgement, at the time of approving the financial statements, that there are no material
uncertainties that the Directors are aware of that cast doubt on the Group’s going concern status
and that there is a reasonable expectation that the Group has adequate resources to continue in
operational existence for the period to 31 December 2024. The Directors therefore consider it
appropriate to adopt the going concern basis of accounting in preparing the financial statements.
In particular, we considered the Group’s current strong financial position, its forecast future
performance, the key risks which could impact the future results and reviewed robust down-side
sensitivity analyses which all indicated results that could be managed in the normal course of
business.
54 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Other Matters
Share Capital Structure
During 2023, the Company had the following weighted average number of shares outstanding and
commitments to issue shares:
Ordinary shares
Options
Diluted
Weighted
No. of
Ordinary
Shares
139,879,209
4,848,500
144,727,709
In May 2023, the Company, in accordance with the Company's Long Term Incentive Plan 2020,
granted 1,305,000 share options to PDMRs and other employees.
In January and June 2022, the Company granted 1,345,000 share options to the key management
and employees.
In 2022, Atalaya increased its share capital by 1,643,250 shares as result of share option executions.
Details on authorised and issued share capital are disclosed in Note 22 of the financial statements.
Significant shareholders
The shareholders holding more than 5% (directly or indirectly) of the issued share capital as of 31
December 2023 are:
Urion Holdings (Malta) Ltd (subsidiary of Trafigura Group Pte. Ltd.)
Cobas Asset Management, SGIIC, S.A.
Ithaki Limited
Hamblin Watsa Investment Counsel (subsidiary of Fairfax Financial
Holding Ltd.)
Ordinary Shares
000’s
30,821
19,391
8,421
8,252
%
22.03
13.86
6.02
5.90
Between 31 December 2023 and the date of approval of the consolidated and Company financial
statements there have been no significant changes on the share capital holding.
Environmental
The Group is committed to conducting its business in strict compliance with both the spirit and the
letter of all relevant environmental laws and regulations. Recognising our duty, we are committed to
restoring and rehabilitating our operating sites in accordance with applicable environmental
standards. This remediation process involves a comprehensive strategy that includes careful
dismantling and removal of structures, rehabilitation of mines and tailings dams, decommissioning
of operations and closure of facilities and waste sites. Our efforts also extend to the careful restoration,
reclamation and revegetation of areas affected by our operations, as described in Note 26. For a fuller
understanding of our environmental practices and commitment, additional information is available
in the Sustainability Report. This report provides a detailed account of our initiatives and highlights
our careful and responsible approach to environmental protection and sustainable business
practices.
55 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Articles of association
In accordance with the announcement made by Atalaya during its Extraordinary General Meeting
held on 12 December 2023, the company will undertake a re-domiciliation process involving the
transfer of the company's corporate seat and registered office from the current location in the
Republic of Cyprus to Spain. Consequently, following this re-domiciliation, the Company will no
longer be subject to the laws of the Republic of Cyprus but will instead be governed by Spanish law
as a legal entity.
As a direct result or in connection with this re-domiciliation, it was resolved and approved that, upon
the re-domiciliation taking effect under Spanish law, the Existing Articles will be replaced by the new
articles of association.
Political and Charitable Donations
The Group made no political donations or charitable donations during the year ended 31 December
2023 (2022: €nil). Instead, Atalaya contributes through its Foundation to financing projects that
benefit local communities in cooperation with local municipalities based on our Corporate Social
Responsibility.
More information sees the Sustainability Report 2023.
Research and Development Activities
R&D projects are an essential driver for increase the capacity and the Life of Mine (“LOM”) of the actual
mines with more sustainable energy models and meeting the challenge of decarbonization in
industrial production.
In recent years, Atalaya have made efforts to create a specific department for Innovation to
collaborate internally and with our external partners.
Main current activities are related to develop technologies for the treatment of acidic waters,
recovery of metals and co-products from acidic waters and implement magnetic aggregation
technology in the flotation circuit to increase metallurgical yields. Some of these activities have been
granted with European funds and executed in collaboration with universities and international
companies.
For information, see our Sustainability Report 2023.
Existence of Branches
The Group does not operate any branches.
Internal Controls
At Atalaya, we acknowledge the vital importance of responsible management in achieving optimal
performance while upholding our environmental, social, and governance commitments. Our
dedication to good governance is guided by the following principles:
1. Corporate Governance Integration: We establish a robust corporate governance system that
incorporates the achievement of Sustainable Development Goals as a strategic decision-
making framework. Our board and management actively consider ESG factors in all aspects
of our operations.
2. Risk and Opportunity Management: We
implement effective risk and opportunity
management systems across our mining operations. This involves identifying, assessing, and
mitigating risks related to safety, environmental impact, financial performance, and
stakeholder relations.
56 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
3. Board Oversight: Our Board of Directors holds ultimate responsibility for the Company's
successful operations. They ensure that management has appropriate processes in place:
a.
Strategic Planning: We engage in strategic planning to align our business
objectives with ESG goals.
b. Risk Assessment: We assess risks related to safety, environmental impact, and
financial performance.
c.
Internal Controls: We monitor performance against pre-defined benchmarks to
maintain transparency and accountability.
4. Ethics and Compliance: We foster a robust ethical culture within the organization. Our Code
of Conduct guides employee behaviour, emphasizing integrity, honesty, and compliance
with legal and regulatory requirements.
5. Risk Prevention Policies: We establish policies and procedures to prevent and manage risks,
encompassing safety protocols, environmental protection measures, and financial controls.
6. Transparency and Reporting: We provide transparent reporting on our ESG performance,
detailing incidents, violations, and sanctions. Stakeholders can review our annual reports and
financial statements.
At Atalaya Mining Plc, we are dedicated to sustainable practices, stakeholder engagement, and
responsible mining. Our internal controls ensure that we adhere to these principles while delivering
value to our shareholders and contributing to a better future.
The Audit Committee, established by the Board of Directors, is responsible for reviewing and
assessing the adequacy of the overall internal control systems and accounting procedures of the
Company including reviewing the Company’s procedures for internal control.
Statement of Corporate Governance
Atalaya is committed to high standards of corporate governance and to having an effective Board of
Directors leading and controlling the Company. The Group and the Company give special attention
to the application of sound corporate governance policies, practices and procedures. Corporate
Governance is the set of procedures followed for the proper management and administration of the
Group. Corporate Governance rules the relationship between the shareholders, the Board of
Directors and the management team.
In structuring its governance framework, Atalaya has adopted and compliance with all guidance
from the principles of the Quoted Companies Alliance Code (“QCA”) and National Instrument 58-201
Corporate Governance Guidelines of Canada.
In November 2023, Atalaya announced its intention to apply for the Company's ordinary shares to be
admitted to the premium listing segment of the Official List maintained by the Financial Conduct
Authority (“FCA”) and to trading on the London Stock Exchange plc's main market for listed securities
(“Admission”). The Board intends that following Admission, it will adopt and report against the UK
Corporate Governance Code
Corporate Governance Code
The QCA is an independent membership that “champions the interests of small to mid-size listed
companies”. The QCA represents companies employing around 1.4 million workers and they set out
the guidelines of independence and transparency for said businesses.
In 2018, the QCA issued an updated version of its Corporate Governance Code. This version of the
Code includes 10 corporate governance principles that companies should follow, and step-by-step
guidance on how to effectively apply these principles.
57 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Directors’ Responsibilities for the Financial Statements
Cyprus company law states that the Directors are responsible for the preparation of financial
statements for each financial year which give a true and fair view of the state of affairs of the Company
and of the Group and of the profit or loss of the Group for that period.
In the preparation of these financial statements, the Directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent; and
state whether applicable accounting standards have been followed, subject to any material
departures disclosed and explained in the financial statements.
The Directors are responsible for maintaining proper accounting records, for safeguarding the assets
of the Group and for taking reasonable steps for the prevention and detection of fraud and other
irregularities. Legislation in Cyprus governing the preparation and dissemination of the financial
statements may differ from legislation in other jurisdictions.
Composition, Responsibilities and Remuneration of the Board of Directors
The members of the Board of Directors as at 31 December 2023 and on the date of this report are
presented in the Corporate Governance report. There were no significant changes in the assignment
of responsibilities of the members of the Board of Directors.
For further details on the composition, responsibilities and remuneration of the Board of Directors,
please refer to the Corporate Governance Report.
Members of the Board of Directors
The Board of Directors, during the year 2023 comprised:
Roger Davey (*)
Hussein Barma
Stephen Scott
Neil Gregson
Jesus Fernandez
Kate Harcourt
Non-Independent Non-executive Chair
Independent Non-executive Director
Independent Non-executive Director
Independent Non-executive Director
Non-Independent non-executive Director
Independent Non-executive Director
Alberto Lavandeira
Non-Independent Chief Executive Officer
(*) Roger Davey is not considered independent as he has served on the Board for more than nine years from
the date of his first appointment.
Auditors
The Board, led by the Audit Committee, expects to conduct a tender process for the appointment of
the Group’s auditor for the 2024 financial year onwards and shareholders will be asked to confirm
this appointment at the 2024 AGM. This is related to the new domiciliation to Spain of the Parent
Company and in anticipation of the implementation of UK audit and corporate governance reforms.
Company secretary
Inter Jura CY (Services) Limited serve as the Company Secretary. The Company Secretary is appointed
and dismissed by the Board of Directors and all directors have a right of access to the Company
Secretary. The Company Secretary is accountable to the Board, through the Chair, on all governance
matters and reports directly to the Chair as the representative of the Board.
58 | Atalaya Mining plc 2023 Annual Report
Management and strategic Report
Events after the Reporting Period
Any significant events that occurred after the end of the reporting period are described in Note 34 to
the financial statements.
By Order of the Board of Directors,
Roger Davey
Chair
Nicosia, 18 March 2024
59 | Atalaya Mining plc 2023 Annual Report
Sustainability Approach
OUR COMMITMENT TO SUSTAINABILITY
Atalaya is firmly committed to the responsible production of metals throughout our value chain. We
strive to achieve the best results with a positive impact on employees, partners, local communities,
the environment and all our stakeholders.
We disclose our sustainability performance in our annual Sustainability Report, an exercise in
transparency in line with the Global Reporting Initiative (GRI) reporting standards. Please
download our Atalaya 2023 Sustainability Report, where we provide full information on our ESG
performance. This section of the Annual Report only provides a summary of information on our
sustainability performance in 2023.
1.1 Sustainability strategy
At Atalaya, we are committed to our Sustainability Strategy to ensure that the management of our
operations and the proposal of new projects are aligned with the principles of the Sustainability
Policy. The strategy focuses on six pillars that positively impact the Company: Good governance,
people, safe operations, environment and climate change, society, and innovation and technology.
1.2 Our Climate Change Approach
We are integrating climate change in our Business Strategy, in a way that the business can respond
to potential risks and opportunities in the short, medium, and long term.
With regards to responsible governance, we recognize that well-governed organisations understand
that survival and success are linked and related to environmental and social performance. In this
respect, our Governance structure relevant to Climate Change issue includes:
Atalaya has been including the fight against climate change in our corporate and
operational policies, signed at the highest level of the Company.
Our Board of Directors is ultimately responsible for the proper management of risks and
opportunities related to climate change. It oversees the implementation and compliance
with the objectives set out in the Sustainability Strategy and proposes changes and updated
if needed.
In 2022, a Sustainability Committee on the Board of Directors was established. This
Sustainability Committee is responsible for setting the sustainability strategy and promote
board commitment to risks and the company’s sustainability performance.
In addition, the Physical Risk Committee is responsible for managing physical risks and the
Audit Committee is responsible for overseeing the financial risk management process.
In November 2023 we made public our reviewed climate targets. These targets are more ambitious
and our first published climate targets published in our previous Sustainability Reports (dated 2021
and 2022).
Proyecto Riotinto is our only mine asset operating at present and we have established these mid-
term climate reductions targets for scope 1 and scope 2 according to the mine life:
Asset
Base Year
Scope
% reduction
Target year
Type
PROYECTO
2022
1 & 2
30%
2025
Absolute
RIOTINTO
50%
2030
Atalaya will continue to assess the technical and commercial merits of new technologies that would
reduce our GHG emissions accordingly. The commissioning of the solar plant in 2024 will help us to
60 | Atalaya Mining plc 2023 Annual Report
Sustainability Approach
achieve these goals.
Net-Zero Position
Proyecto Riotinto’s current reserve life does not support operations beyond 2050. Consequently, we
have presently not made a Net Zero 2050 commitment to this period. However, we expect to extend
the Life of Mine of Proyecto Riotinto and add new operations to its portfolio, so we will review our
commitments according to business reality.
1.2.1
Climate change report
In line with international best practices, we are using the Task Force Recommendations on Climate-
related Financial Disclosures (TCFD), as a guideline for disclosure, striving to get to a full alignment
in the future.
Through our inaugural Climate Change Report, published in 2023, we are committed to disclose our
efforts and actions transparently.
A first climate-related risk assessment has been developed in 2023 using 2022 as baseline year in our
Climate Change Report, we provide information about the risks and opportunities identified. We also
recognise the importance of having solid governance for managing the risks and opportunities
related with climate change and thus provide an overview of our governance model on these
matters. Ultimately, in our commitment towards becoming a low-carbon company, we disclose the
climate-related metrics used to monitor risks and opportunities, and a carbon footprint assessment.
61 | Atalaya Mining plc 2023 Annual Report
Our progress on TCFD as of September 2023
Sustainability Approach
RECOMMENDATION
GOVERNANCE
DISCLOSURE
TOPIC
Board oversight
STRATEGY
RISK MANAGEMENT
Management’s
role
Climate-related
risks
and
opportunities
on
Impact
Atalaya
Resilience of the
strategy
Risk
identification
and assessment
Risk
management
of
Integration
risk
management
METRICS
TARGETS
AND
Climate-related
metrics
Scope 1, Scope 2,
and Scope 3
Climate related
targets
ATALAYA’S ALIGNMENT
is ultimately responsible
for the proper
Our Board
management of climate change, setting the objectives and
supervising the
implementation and fulfilment of the
actions established in the Sustainability Strategy, through
the Sustainability Committee
Our management model ensures continuous assessment
and monitoring of climate-related risks and opportunities
The first climate-related risk assessment was performed in
2023 using 2022 data as baseline year. The analysis included
scenario analysis to assess the real and potential financial
impact of the main risks and opportunities.
Several physical and transition risks that can have a
moderate to high impact on Atalaya’s assets and business.
Different scenarios have been used to assess risks and
opportunities, considering global temperature increase of
less and more than 2ºC. Two different time horizons were
used for the analysis: medium (2032) and long-term (2050)
The results show several existing and emerging physical and
transition climate risks, and the impact is in the process of
being estimated
Risk owners are identified, and we are now establishing
additional measures to mitigate, and control the impacts of
identified climate-related risks.
At operations, the management team assess and manage
climate-related risks and opportunities systematically, as
part of the on-going Risk Management process of the
company. Climate-related risks are integrated into the
overall risk management.
Atalaya Riotinto annually assesses GHG emissions, energy
consumption, and water consumption, among other
relevant environmental KPIs. We will continue to evaluate
other relevant metrics as we analyse further the results of the
climate risk assessment and implement further actions
stemming from our climate change strategy
We report scope 1, 2 and 3 emissions. The GHG inventory is
verified annually by an independent third-party against ISO
14064.
Proyecto Riotinto is our only mine asset operating at present,
and we have established mid-term climate reductions
targets for scope 1 and scope 2 according to the mine life.
2
CORPORATE GOVERNANCE FOR A SUSTAINABLE FUTURE
71.4
85.7
0
0 0
Percentage
of
Percentage
of non-
Confirmed
Number of
Sanctions
independent
directors (%)1
1as at 31 December 2023
executive directors (%)1
incidents of
code of
paid for legal
corruption
conduct
breaches (K€)
violations
Our objective is to set industry standards through transparency, honesty, integrity, and
responsibility, maintaining a steadfast commitment to corporate social responsibility.
62 | Atalaya Mining plc 2023 Annual Report
Sustainability Approach
2.1
Sustainability Committee
At Atalaya, we have a dedicated Sustainability Committee at the Board of Directors, recognizing the
intrinsic link between business success and adequate governance of ESG issues.
Under the leadership of our non-executive director Mrs. Kate Harcourt, the Sustainability Committee
is tasked with shaping the sustainability strategy and fostering Board-level engagement in our
sustainability impacts, risks, and opportunities.
Setting ambitious ESG targets for the upcoming years and monitoring the performance of these
targets is the primary mandate of the Sustainability Committee. It collaborates directly with existing
committees addressing ESG matters, such as the Physical Risks Committee. Its scope includes
monitoring climate change governance, climate risks and opportunities, human rights, diversity,
resource efficiency, natural capital, waste management, and the circular economy.
The Sustainability Committee is in permanent contact with Atalaya's ESG management team.
Through regular meetings, the ESG team updates on all topics to be addressed before the official
SusCom meeting.
For the proper performance of its duties, in 2023 the Sustainability Committee held four meetings
(one meeting per quarter). The Committee kept the Board of Directors informed on the most
significant sustainability issues in 2023: climate change risks and opportunities, including the climate
change report aligned with TCFD; the review of the sustainability strategy and the revised
sustainability policy.
2.2
Management Systems at operations
The establishment of an Integrated Management System is a cornerstone in ensuring effective
governance and streamlined management. This system comprehensively incorporates all processes
across Proyecto Riotinto key asset, with a dedicated focus on continuous improvement in
environmental performance, occupational health and safety, and responsiveness to the needs of
customers and stakeholders.
Undergoing rigorous certification processes, the system is accredited to ISO 9001:2015 for Quality
Management Systems, ISO 14001:2015 for Environmental Management Systems, and ISO 45001:2018
for Occupational Health and Safety Management Systems. Regular internal and external audits
further validate its effectiveness. Notably, Bureau Veritas conducted a successful recertification of the
integrated management system in 2022, ensuring its validity until 2026.
In alignment with our unwavering commitment to sustainability, the approval of the Sustainable
Mining Management Policy in 2022 at Cobre San Rafael, the overseeing entity for the Touro Project,
underscores our dedication to responsible practices. Additionally, this entity has achieved
Sustainable Mining Management certification, meeting the criteria set by the Spanish Standard UNE
22480:2019.
2.3
ATALAYA Corporate policies
We have updated our corporate policies and procedures, aligned with the UK Corporate Governance
Code, with a firm commitment to conducting our business with the utmost ethical standards.
In addition, our subsidiary Atalaya Riotinto Minera (responsible for Proyecto Riotinto) relies on its
policies and Code of Business Conduct and Ethics, complemented by Proyecto Riotinto's compliance
systems. The Board of Directors carries out an annual review of the Code and the Compliance
Committee monitors compliance.
The Code of Business Conduct and Ethics sets out the organisation's standards of behaviour in its
dealings with stakeholders, promotes an ethical corporate culture and prevents corporate
malpractice.
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2.4
Risk assessment and mitigation actions
Given the inherent nature of our operations in the mining industry, we face a spectrum of risks that
could significantly influence its future operational outcomes, potentially deviating from the
descriptions provided in forward-looking statements concerning Atalaya. Effective management of
these risks not only safeguards the interests of stakeholders but also minimizes the potential impact
on shareholder returns, sustains employment, and preserves the local environment surrounding our
mining activities.
In response to these challenges, we have instituted a Risk Management Policy aimed at facilitating
the establishment of an efficient risk control and internal control system within the company. Within
this system, the company conducts assessments of its primary risks, categorizing them into four
main groups:
Strategic Risks: Key risks in this category include the potential failure to replace reserves,
underestimation of capital expenditures (CAPEX), financial risks, and challenges related to
securing licenses to operate.
Commercial and Financial Risks: Risks encompass significant fluctuations in commodity
prices, dependence on a limited number of customers, and exposure to foreign exchange
risks.
Legal and Regulatory Risks: Risks associated with new political, legal, and regulatory
developments that may impact the company's operations.
Operational and External Risks: Risks in this category involve shortages of critical supplies
such as water and electricity, complexity of environmental laws, labour disruptions, and
cybersecurity vulnerabilities.
2.4.1
Financial risks
The Board of Directors holds the highest responsibility for approving and overseeing these risk
assessments. Additionally, we have adopted a Financial Risk Management Policy, outlining key
principles to manage exposure to critical financial risks. This policy aims to support the achievement
of our financial targets while ensuring the protection of future financial security. The senior
management oversees the management of financial risks, with the Audit Committee providing
valuable support.
2.4.2 Non-financial risks
In addition to the financial risks, we are also exposed to non-financial risks falling under the umbrella
of ESG considerations.
The different business areas within the Company identify these risks and develop specific mitigation
measures, integrating them into the overall management system. This holistic approach ensures
that we are not only attentive to financial concerns but also actively address risks pertaining to
broader sustainability and ethical considerations.
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3. PROFESSIONAL AND PERSONAL DEVELOPMENT
488
Total number of
employees
68
92.7
4.55
Employees coming
local
the
from
community (%)
Permanent contracts (%)
Gender pay gap (%)
3.1 Placing people first
In 2023, our total workforce was 488 employees. It is slightly less than 2022 with 499 people working
with us. The reason for this is the completion of the archaeological excavations, which has led to a
reduction in the workforce in archaeology.
Over 93% of our employees work in Proyecto Riotinto, and 92% have permanent contracts, compared
to 89% in 2022. Despite a majority of men in the workforce, we have a significantly higher proportion
of female employees than our peers, with a 18% of women vs a 8% mining industry average.
Our employees are vital to our resilience as a company. We maintain a strong commitment to
attracting and retaining talent by promoting the highest health and safety standards, prioritising
training initiatives and enhancing working conditions.
3.2 Local employment and opportunities
At Atalaya, we always promote local employment. In 2023, 68% of Proyecto Riotinto’s total workforce
was from the neighbouring villages (same as 2022), showcasing our commitment to fostering local
employment. In addition, agreements are maintained with municipalities to ensure other important
contractors also follow the same vision.
For Atalaya, 73% of employees come from the provinces where the projects are located (Riotinto
+Valverde+ Beas; Galicia, Badajoz, Chipre).
3.3 Diversity, equity and inclusion
Our corporate Code of Conduct takes into consideration favourable labour relations, based on a
system of non-discrimination and equal opportunities, respecting diversity at all levels.
Diversity
The Proyecto Riotinto´s Diversity Committee promotes projects that improve awareness of social
realities, creating an inclusive environment where employees feel welcomed, valued and respected.
The committee also seeks to develop appropriate intervention programs, to minimize imbalances
and promote training and promotion, as well as global accessibility and specific employment
generation programmes.
Equality Plan
The negotiation of the Equality Plan took place in the last quarter of 2023, an agreement was reached,
and the Plan was finally approved on 20 December 2023. This Plan includes a series of measures for
the period 2024-2027 that will be overseen by the Equality Plan Commission.
65 | Atalaya Mining plc 2023 Annual Report
Sustainability Approach
Inclusion
Together with the non-related Spanish Foundation named Adecco, that supports similar activities,
we developed an Intervention Plan with the objective of supporting vulnerable people through a
three-pillar cycle of inclusion: training and guidance, transforming society, and designing inclusive
work environments.
The Family Plan, also developed in collaboration with the Adecco Foundation, involves personalised
interventions directed by specialist staff of the Atalaya Foundation for family members of employees
with a recognised disability.
3.4 Relations with our employees
We continue to emphasise the creation of an equitable, stimulating, and high-quality working
environment across human, social, environmental, organisational, and economic dimensions.
We uphold the rights of association, ensuring freedom in trade union elections. Alongside adherence
to the International Labour Organisation’s core conventions concerning association freedom and
collective bargaining, our code of conduct underlines our commitment to protect human rights,
condemning any form of child, or forced labour, and rejecting labour exploitation or abuse within our
sphere of influence.
Employee relations adhere to the respective legislations of Spain, containing considerations such as
notice periods for operational changes, consultation procedures, and employee communication. The
Works Council, comprising 13 worker-elected members, stands as a fundamental element in
managing these relations.
Regular updates, occurring either quarterly or annually, inform the Works Council on recruitment,
health and safety metrics (including absenteeism and accident rates), sectoral developments, and
annual financial reports. Additionally, ad-hoc meetings with the Works Council are convened as
necessitated by current issues.
Beyond the Works Council, we embrace an open-door policy, encouraging direct communication
across all levels and not mandating that all concerns be directed exclusively through representatives,
fostering transparent communication throughout the organisation.
Collective Bargaining Agreement 2022-2026
The Collective Bargaining Agreement, signed in September 2022 by the management and worker’s
representation though the Works Committee and trade union representatives, will be in force until
December 2026. It provides social stability and a strong commitment to transparency and
collaboration.
The Collective Agreement covers 100% of the workforce of Proyecto Riotinto, except for specific cases
where remuneration and working hours are agreed on an individual basis. The rest of employees are
governed by their corresponding sector agreements.
The agreement encompasses all primary elements outlined in employment contracts, covering
aspects such as recruitment, daily work structure, salaries, leave entitlements, employee benefits,
code of conduct violations and corresponding sanctions, and more. Additionally, it addresses matters
66 | Atalaya Mining plc 2023 Annual Report
Sustainability Approach
pertaining to worker health and safety, including provisions for personal protective equipment, work
attire, alcohol and drug testing, and maternity leave.
3.5 Developing employee skills and abilities
We maintain an Annual Training Plan that incorporates the entire workforce, with the Human
Resources Department executing the plan based on recommendations from departmental
managers. The Annual Training Plan covers legal requirements (such as basic mining safety
standards and guidelines for mobile mining machinery) and different staff development needs. The
Annual Training Plan is structured around four key pillars.
Main Pillars of the Atalaya Training Plan
Specific training for
job development
Health and safety
training
Environmental
awareness training
Quality training
4.
SAFE OPERATIONS
3
0
1.88
Number of “Category A” waste
mining storage facilities
Cumulative
safety incidents
structural
Dam safety factor
We are committed to the safe and responsible management of our tailings management
facilities through the use of best available monitoring techniques and the implementation of
best industry standards.
4.1 Safe management of our Tailings Storage Facility (TSF)
Proyecto Riotinto applies the best available techniques to ensure safe TSF management. Proyecto
Riotinto’s Major Accident Prevention Policy, signed by the top management, aims to reach the
highest level of protection and serves as the basis for the Safety Management System implemented
by the Company. The practices and procedures established by this system complement the Safety
Project developed by Atalaya for its mining operation at Riotinto, which from the beginning has been
designed considering the most stringent standards.
The Technical Management of Proyecto Riotinto is responsible for ensuring compliance with the
regulations and basic mining safety standards applicable to the TSF. The Technical Manager reports
directly to the Operations Manager of Atalaya Riotinto Minera and is the company's representative
on safety matters before the relevant authorities.
TSF GOVERNANCE
Atalaya’s governance procedures for its TSF management represent 5 layers of prevention:
1.
2.
3.
4.
5.
Geodetic and geotechnical sensor network monitoring
Surveillance R+D technology of the TSF through “Minerva” and “Stone” projects
Internal staff inspections and governance
Inspections by accredited third parties
External reviews
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Sustainability Approach
DISCLOSURE OF OUR RESPONSIBLE MANAGEMENT AND BEST PRACTICES
We recognise the importance of disclosing our safe and responsible management of the mineral
waste generated in our operation. These aspects are key to our all stakeholders.
In 2023, we published on our website a specific document on the safe management of tailings and
the TSF at Riotinto.
Through our social networks and newsletters, we have published all the informative activities that
the Minerva and Stone teams conducted throughout 2023.
For 2024, the STONE agenda continues to grow and aims to disseminate the steps that are being
taken in this research project.
GLOBAL INDUSTRY STANDARD ON TAILINGS MANAGEMENT (GISTM)
At Atalaya, we are committed to a responsible management of the TSF that guarantees zero harm
to the population and the environment, prioritizing the safety of our facility throughout all stages of
its life cycle. To do so, we incorporate the best available techniques, and we are at the forefront when
it comes to the use of new technologies applied to the surveillance of these facilities. Minerva and
Stone projects are good examples of this.
However, at Atalaya we are aware of the importance to our stakeholders of compliance with the
highest standards in relation to the management of these facilities.
We therefore recognise the Global Industry Standard on Tailings Management (GISTM) as the
framework to which we have committed to align ourselves within 3 years. The GISTM was the product
of the Global Tailings Review, which was co-convened by the United Nations Environment
Programme (UNEP), Principles for Responsible Investment (UNPRI), and the International Council on
Mining and Metals (ICMM).
Accordingly. we have continued to work towards conformance with GISTM. We will adapt our internal
governance systems to be aligned with the standard. The follow-up of the GISTM alignment work is
overseen by the Sustainability Committee of the Board of Directors.
4.2 Protecting the health and safety of our employees
0 5.3
3.1
0.27
0.06
fatalities Lost time
injury
frequency rate (LTIR) –
own employees
Lost time injury
frequency rate (LTIR)
- contractors
Severity rate – own
employees
Severity rate - contractors
68 | Atalaya Mining plc 2023 Annual Report
Sustainability Approach
Our commitment includes the continuous enhancement of Health and Safety conditions within
our workplace, aiming for Zero Harm in our mining operations, as outlined in our Occupational
Health and Safety Policy.
4.2.1 Our Health and Safety management approach
At Proyecto Riotinto, we have implemented an Occupational Health and Safety Management
System, externally certified against ISO 45001:2018. This system aligns with the principles and
commitments outlined in our Occupational Health and Safety Policy and applies to all personnel at
Proyecto Riotinto, including contractors. While our exploration and permitting projects adhere to the
same standards as Proyecto Riotinto, they are not currently operating under the remit of the certified
system.
Our system undergoes regular internal and external audits, in accordance with ISO standards.
Additionally, every two years, we undergo legal compliance audits by an accredited external body.
No amendments were identified during these audits in 2023, which included an internal
Management System audit and an external audit. These controls collectively contribute to our
continuous improvement efforts.
For health monitoring, we rely on an external medical service, which conducts annual medical check-
ups for all employees. We provide 24-hour nursing coverage with qualified health personnel,
addressing not only work-related issues but also common illnesses.
Proyecto Touro, Masa Valverde and Ossa Morena, projects in the exploration or permitting phase,
have opted for an outsourced External Prevention Service.
4.2.2 Engaging with our employees
Promoting a safety culture and raising awareness among employees are important actions to have
a secure and healthy work environment.
We have established various bodies and processes to ensure worker participation in activities related
to the development of our management system. These include the Occupational Health and Safety
Committee, comprising representatives of both workers and the company, which meets periodically
to analyse relevant aspects of occupational health and safety. Prevention delegates, as workers'
representatives, are invited to participate in risk assessment processes and investigate any accidents.
One of our main initiatives that involves employees directly in the surveillance of occupational health
and safety is our Field Leadership Program, which consists of different work groups that meet once
a month to undertake preventive activities (e.g. audits, observations, inspections and "stop and talk",
among others.). The Field Leadership Program is contributing to a cultural shift in occupational
health and safety. Our data indicates a heightened awareness among employees.
In addition, we disseminate information to all employees, not only on occupational issues related to
work but also to improve overall health and quality of life. For example, in 2023, the information
screens provided, among other topics, information on the correct use of inhalers, how medications
affect the skin when exposed to the sun, and the fact that sunscreen creams are indeed another form
of Personal Protective Equipment (PPE).
In terms of training, throughout 2023, occupational health and safety training continued. For
example, in 2023, we provided additional training in first aid and nursing standards for some of our
workers. We are committed to delivering this training systematically each year.
4.2.3 Ensuring the health and safety of our contractors
Our management system includes specific provisions for contractors offering services at Atalaya. The
Health Prevention Service within our company has a designated coordinator overseeing contractors'
work conditions, and a computer application for control and follow-up. In addition, Contractors
actively participate in health and safety activities.
69 | Atalaya Mining plc 2023 Annual Report
5.
ENVIRONMENT AND CLIMATE CHANGE
Sustainability Approach
1.7
35
99
0.27
Environmental
and expenditures (M€)
investments
Mining waste reused in
project (%)
Non mining waste
form
diverted
disposal (%)
Surface water consumption
(m3/tons of ore processed)
83
9
1.4
0
Annual
consumption
consumption (%)
recycled
to
water
annual
Energy
(GJ/tons
concentrate)
of
Intensity
copper
Greenhouse
Gas
Emissions Scope 1, 2
and 3)(tCO2eq/tons of
concentrate)
Penalties received for non-
compliance
with
environmental regulations (€)
As a responsible mining company, we acknowledge the potential environmental impact of our
mining activities.
Our commitment to environmental protection is a core value within our company, as we
embrace sustainable practices that support a circular economy, safeguard ecosystems, address
climate change, and positively contribute to the communities in which we operate.
5.1 Environmental Management System
Our commitment to environmental responsibility is reflected in the Environmental Policy adopted
for Proyecto Riotinto. We explicitly commit to preventing pollution, ensuring efficient resource use,
employing the best available techniques, establishing mechanisms to prevent or manage
environmental risks, training employees and contractors on environmentally friendly practices,
protecting historical heritage, and setting measurable environmental objectives which are reviewed
periodically.
We work to integrate climate change adaptation and resilience into our vision of continuous
improvement. Our environmental management system is certified against ISO 14001 to ensure
rigorous adherence to our Environmental Policy. We conduct two audits annually—one internal by
trained company employees and another external by a licensed company.
In extending our commitment to sustainable practices, Proyecto Touro has a Sustainable Mining
Management Policy and received the UNE 22480:2019 certification in 2022—a Spanish standard for a
sustainable mining-metallurgical management system.
5.2 Efficient Water Management and Zero Discharge Approach
Water is a shared resource crucial for the community within the hydrographic district where our
operations are situated. Given that mining activities demand water and have the potential to
70 | Atalaya Mining plc 2023 Annual Report
Sustainability Approach
influence local water sources, effective water management is essential to build trust among all
stakeholders.
The Sustainability Policy and Environmental Policy of Proyecto Riotinto both pledge a dedication to
the effective utilization of natural resources. Water management is overseen by the Environmental
Department of Proyecto Riotinto, reporting directly to Management. In addition, internal and
external audits are conducted under the ISO 14001:2015 environmental management system, which
also includes water management.
At Proyecto Riotinto, most of the water consumption is in the production process, where it is used in
grinding and flotation activities. Other water uses include dust control to improve air quality, and
sanitary uses for employees and irrigation.
For efficient water use, the project has a water treatment line which allows mine water to be
conditioned for use in mining and industrial applications. Atalaya Riotinto uses recirculated water
which accounts for more than 82% of the total required for ore processing. This greatly reduces
external water consumption.
Furthermore, we actively engage in public forums on water stewardship and management through
our membership of Aminer.
Proyecto Riotinto maintains a water quality control network both upstream and downstream of the
mining operation, conducting monthly sampling and providing reports to the relevant regulatory
authorities.
Proyecto Riotinto also calculates its water footprint, which makes it possible to identify the processes
or facilities where the greatest water consumption or deterioration of quality occurs, and thus we can
implement effective measures to reduce the impact of the activity. We initially calculated and verified
the water footprint for the period 2015-2022, concluding that the water requirements of the
environment were met. (i.e. surface and groundwater flows remain within certain ranges with
respect to water runoff and the natural water needs required by the ecosystem are respected.
Furthermore, the pollutant absorption capacity is not exceeded as no water is discharged into the
environment).
In addition, to be resilient to the risks of water scarcity from the effects of climate change, we plan to
define a water management strategy with targets, including the development of a Water Policy, the
adherence to an international water management standard (AWS) and participate in water related
initiatives in 2024.
5.3 Energy Transition and Climate Change
Recognizing that energy consumption, particularly at Proyecto Riotinto, constitutes a significant
environmental aspect of its operations, we are aware of its substantial role in the Company's
greenhouse gas (GHG) emissions. Consequently, we prioritize the consistent monitoring and
assessment of energy consumption, enabling the integration of measures aimed at reducing energy
intensity and GHG emissions.
Our commitment to renewable energy
Self-consumption of renewable energy plays a significant role in mitigating our environmental
impact and is a key tool in reducing our carbon footprint. We take pride in the establishment of a
pioneering photovoltaic solar plant at Proyecto Riotinto. This initiative, conducted in collaboration
with Endesa X, marks the construction of Spain's first solar photovoltaic power plant at a mine.
Comprising 75,000 solar panels with a 50MW capacity, it stands as one of Spain's largest self-
consumption facilities. The output is equivalent to the annual electricity consumption of a
municipality with 14,500 inhabitants. This solar plant is expected to contribute 22% of the mine's total
energy needs, resulting in an annual reduction of over 40,000 tonnes of indirect CO2 emissions. Given
that electricity consumption constitutes over 60% of the mine's carbon footprint, this reduction is
comparable to the carbon absorption of 240,000 trees.
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Sustainability Approach
5.4 Our Carbon Footprint
As part of our commitments to contribute to a low-carbon economy, we disclose an annual inventory
of Proyecto Riotinto GHG emissions, for which the ISO 14064-1:2019 standard is issued, and the
footprint calculation is verified by an external third party.
The most relevant indirect greenhouse gas (GHG) indirect emissions come from product use,
specif ically, the consumption of reagents represents 33.8% of the total emissions, making it the most
significant emission focus within this category. These emissions occur during the production process
of the reagents, making them indirect GHG emissions. The major reagent consumptions and
consequently the ones with the greatest impact on the carbon footprint, are quicklime and slaked
lime.
Emissions associated with the production of the explosives used by the organisation account for 11.8%
of the total emissions. Transportation in mining operations carried out by various contractors is also
noteworthy, constituting 17.2% of the total GHG emissions.
Another significant emission focus is electricity consumption with indirect CO2eq emissions
representing 28.0% of Proyecto Riotinto's carbon footprint. Atalaya has an electricity contract with
Endesa Energía S.A.U, a non-Guarantees of Origin (GdO) supplier, whose 2022 energy mix exceeds
that of previous years with a value of 0.272 kg CO2eq/kWh. The solar photovoltaic plant will play a
significant role in reducing overall greenhouse gas (GHG) emissions. With an impressive installed
capacity of 50 MW, it is set to become one of Spain's largest industrial self-consumption facilities,
resulting in an annual reduction of more than 40,000 tCO2eq.
Scope 1 emissions, originating directly from the Company's operations, constitute the smallest
proportion of the overall emissions, primarily stemming from the consumption of diesel in various
industrial processes at the plant and during the transportation of raw materials.
5.5 Biodiversity Protection
Proyecto Riotinto employs a dedicated methodology for biodiversity management, incorporating
the criteria outlined in the Unified Environmental Authorization and sector-specific legislation. The
technical guidelines encompass specific measures for the conservation of two protected species,
both in flora and fauna:
A protected plant species (Erica andevalensis). The Erica management plan involves
relocating individuals harvested during the activity. Another measure entails gathering
seeds from affected individuals, cultivating and utilizing them for the restoration of project
areas. Additionally, unaffected populations undergo regular monitoring and control.
Bat conservation project. Proyecto Riotinto is actively progressing with the conservation
project for bats. The monitoring of bat populations is conducted during both the breeding
and hibernation seasons, employing direct and indirect censuses, respectively.
6.
DRIVING LOCAL DEVELOPMENT
68
671
91.4
1.25
0
% of employees
Budget dedicated to
Invoiced from local
Investment made for
Complaints
the
local
social
activities
suppliers3(%)
the protection of local
received from
community
heritage (M€)
customers.
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Sustainability Approach
through
our
Foundation2 (K€)
1Data for Proyecto Riotinto
2Data taken from the annual accounts of the Company at the end of the accounting year for the Proyecto Riotinto
Foundation
3Corresponding to Atalaya Riotinto Minera
Mining activities play a significant role in strengthening local, regional and national economies
by fostering employment, encouraging
local procurement and contributing to social
development in general. At Atalaya, we are encouraged by our impact on communities through
our operations and indirectly through contractors and suppliers. We are also committed to
extending our socio-economic footprint by actively supporting initiatives that aim to foster long-
term prosperity in the regions in which we operate.
6.1 Value beyond our operations
Our main project, Proyecto Riotinto, is an important contributor to the socio-economic vitality of the
Riotinto Mining District in the province of Huelva. Its extensive influence is primarily evidenced by
the creation of local employment opportunities and the generation of wealth within the region
through its operational activities. This impact extends beyond its immediate sphere, manifesting
indirectly through increased production and employment across various economic sectors, catalysed
by Atalaya's activities.
6.2 Communication channel with the local community
Atalaya Riotinto follows a procedure for communicating with internal and external stakeholders
which is managed as part of the integrated management system. Local communities are interested
parties and are provided with channels to express their requests, complaints and opinions.
Through this communication channel, five external notifications were registered in 2023, all issued
by neighbours of the operation and relating to complaints about vibrations from blasting activities.
All five were handled in accordance with the internal procedure and were resolved within the
established timeframe. Proyecto Riotinto launched specific studies to find solutions to these
concerns raised by the local community during 2023.
6.3 Proyecto Riotinto Foundation
The Foundation is actively engaged in advancing Atalaya's Corporate Social Investment initiatives
within its sphere of influence, connected to the municipalities comprising the Riotinto Mining
District.
Atalaya has been maintaining collaborative agreements with the seven Town Councils comprising
the Miera de Riotinto District region (Minas de Riotinto, Nerva, Berrocal, Campofrío, La Granada de
Riotinto, El Campillo and Zalamea la Real). These agreements solidify the cooperation between local
administrations and the mining project, fostering administrative relations and various partnerships
between the involved parties. In the year 2023, the Atalaya Foundation and the Town Councils have
engaged in discussions aiming to renew these agreements, which expire with the municipal term,
defined by the municipal elections held in May 2023.
The primary themes of these agreements revolve around a commitment to local development,
providing resources to the councils for executing actions and initiatives focused on education,
culture, social welfare, environmental conservation, employment promotion, and economic
diversification. In addition, the Foundation advocates for the economic diversification of the area,
fostering tourism as an alternative industry, with projects like visits to Corta Atalaya and Riotinto
Experience.
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Sustainability Approach
6.4 Maintaining a positive footprint at Proyecto Touro though the Terras program
The TERRAS Program was devised by the Company as part of the ESG Strategy under Proyecto Touro.
TERRAS, an acronym for Transparency, Ethics, and Genuine Environmental and Social Responsibility,
was shaped based on received stakeholder input, focusing on three main spheres: environment,
society, and progress. The plan is aimed at Galician society in general, sectors linked to the river Ulla,
groups at risk of social exclusion in Arzúa and Santiago, and the residents of Touro and O Pino. It
covers five areas of action, each with a series of specific activities and actions.
TERRAS do Ulla: commitment to water stewardship and sustainable water use
TERRAS do Camiño: respect for the Camino de Santiago (St James’s Way).
TERRAS do Futuro: socio-economic development of the region
TERRAS de Vida: health and safety
TERRAS da Xente: social actions
6.5 Stakeholder involvement in project development
In our quest to diversify our operations, we recognise the importance of engaging with local
stakeholders to understand their expectations and convey an appealing value proposition. For this
reason, for all our projects such as Ossa Morena Project in Extremadura (Spain) and its Cobre San
Rafael Project in Touro, Galicia (Spain), we maintain a constant process of consultation with these
entities through various means. This
includes discussions with the Public Administration,
establishing an accessible information centre for the public, and engaging in meetings with local
groups, landowners, and representatives from different sectors.
We maintain an office in the municipality of Alconchel, which hosts Proyecto Ossa Morena, ensuring
direct connections with locals, government representatives, and businesses. Serving as an
information hub, the office is accessible for those curious about the project, manned by an
environmental specialist and equipped with informative displays. Additionally, we regularly update
the mayors of Alconchel and surrounding municipalities on activities and address residents inquiries
through town councils. The dynamic relationship with the local newspaper facilitates project
information dissemination.
6.6 Preservation of the local heritage
Proyecto Riotinto and its commitment to historical, archaeological and industrial heritage
demonstrates that preventive archaeology can and must become an example of coexistence and
collaboration between the different agents involved. The great challenge of this project has
undoubtedly been to guarantee the research to continue as well as mine production. The work
carried out is a milestone in the history of management archaeology, both an investment (time and
resources) and historical research point of view.
On top of that, in 2023, several milestones have been reached:
Greater understanding of Urium at the urban planning level and key to recovering
numerous remains and understanding Roman mining activity.
Outstanding metallurgical knowledge because of the large-scale archaeological works.
Recovery and extraction of a metallurgical furnace in Cortalago.
Discovery of a large metallurgical complex, which comprises offices and hearths/furnaces.
Preservation of elements of plant origin, including soles, spikes, ropes, trunks, bones, etc.
Transfer of industrial archaeological material to Fundación Riotinto from the Alfredo area
(e.g. ladders).
Project to adapt the Planes-Teleras area to allow access to the public, including the design
of a visitor route.
Visit to the excavations by the Delegate of Tourism, Culture and Sports from the Junta de
Andalucía
74 | Atalaya Mining plc 2023 Annual Report
Sustainability Approach
Preventive archaeological activities at Ossa Morena Project
In the Ossa Morena project, intensive archaeological prospecting programmes were conducted in
areas to be explored, as required by the legislation in force in the Regional Community of
Extremadura. The prospecting works enabled the identification of numerous sites and elements of
ethnographic interest unknown until now, in an area that has been little investigated.
in subsequent
These works have provided a wealth of
historical/archaeological studies. Archaeological work is currently focused on the control of earth
movements and monitoring of drilling works.
information that can be used
6.7 Supply chain responsibility: local and sustainable partners
At Atalaya, we contribute significantly to the growth of the nearby economy by actively sourcing
goods and services from local suppliers. Additionally, we facilitate the development of auxiliary
businesses, widening our revenue opportunities by creating collaborative opportunities within the
vicinity.
Our strategy in the choice of suppliers emphasizes the prioritization of sourcing and subcontracting
from local companies. In 2023, 89% of suppliers were Spanish.
During 2023, ARM maintained working relationships with a total of 685 suppliers and contractors,
who provided services with a combined value of turnover of 288.93 million euros.
Continuously evaluating the purchasing process is paramount to understanding all economic,
environmental, ethical, and social implications. Notably, this is being reinforced and adapted based
on the criteria from the new sustainability regulation, including the Corporate Sustainability
Reporting Directive (CSRD) and the future Due Diligence legislation.
7.
INNOVATION AND TECHNOLOGY
9.62
7.4
Ratio of investment in R&D&I to EBITDA (%)
Investment
research (M €)
in geological and mining
With our continuous introduction of technology advances into our systems we strive to
accomplish our operational objectives and goals, to create a safer and healthier workplace and
overall, a more sustainable business.
Technology and innovation are necessary to the modernization, sustainability, and success of mining
companies. Embracing these advancements can lead to improved efficiency, safety, environmental
stewardship, and overall competitiveness in the industry.
In recent years, we have made efforts to create a specific department for Innovation. The past year
saw the consolidation of this department internally and externally, attending various national events
on innovation in the industry. The department has a supervisor and a new full-time technician. They
are in contact with different divisions of the Company to identify possible projects that might be
eligible for funding or would need partnerships with third parties to solve identified challenges. Also,
they meet monthly with the CEO of Atalaya to discuss potential developments, National and
75 | Atalaya Mining plc 2023 Annual Report
Sustainability Approach
European projects, and consortia that Atalaya could consider asking for membership.
Currently, we are engaged in an industrial pilot test for the recovery of critical materials from the
plant waste stream thanks to the application of a technology that uses a combination of the
paramagnetic properties of minerals.
Additionally, we have undertaken two projects aimed at recovering metals from acidic waters from
various sources. In collaboration with the University of Huelva, we aim to treat and recover metals
from diffuse waters generated by the historic environmental liabilities present at the Riotinto mine.
This project is led by our environmental department at Atalaya and is in an advanced stage.
Laboratory tests have been completed, and we are drafting the project for its implementation on a
pilot scale.
7.1 External innovation and R&D collaborations
We prioritize collaborations in R&D&I projects with academic and private organisations since it can
provide multiple synergies when it comes to promoting projects or developing good mining-
metallurgical practices from which Atalaya can benefit.
In addition, we have broadened our network of partnerships to include universities (Universidad de
Huelva, Universidad de Granada and Universidad Politecnica de Cataluña) and new CSIC (Centro
Superior de Investigaciones Científicas) institutes (including IRNAS (Instituto de Recursos Naturales
y Agrobiología de Sevilla) and IDAEA (Instituto de Diagnóstico Ambiental y Estudios del Agua)). The
projects are designed to establish waste circularity strategies and good practices in developing,
operating, and closing mines and tailings facilities.
Admission to EIT Raw Materials, the world's largest innovation community in the raw materials sector,
is currently underway through the project RIS-INCOME. We have also initiated a collaborative effort
with several companies to innovate technologies for treating acidic waters.
Crucially, we are continuing our research efforts, and as evidence of this commitment, several
scientific articles have been published during the current year.
7.2 Digitalization and new technologies
Automating, digitalising, and securing our processes is at the core of our Innovation team’s strategy.
Various measures were taken, including the implementation of a Security Information Event
Management (SIEM) system within the Security Operations Center (SOC) of Telefónica España. This
initiative provided constant monitoring for all communications to and from our company.
Additionally, new controls were established to ensure accurate cost allocation in warehouse
shipments. This was achieved through a pre-configured setup where cost centres are assigned based
on the nature of the item, streamlining the registration process and minimizing potential manual
errors.
In line with the goal of streamlining processes, the management of Isolation and Lockout
Permissions (PABs) was implemented within Microsoft AX, enhancing operational traceability and
eliminating paperwork.
Furthermore, critical services are being migrated to a cloud environment, and in 2024, there are plans
to upgrade AX (ERP) to its cloud version, D365, thereby improving cybersecurity and availability.
These projects underscore the commitment to drive the digitization of various processes and
enhance data generation and management that Atalaya has undertaken in recent years.
76 | Atalaya Mining plc 2023 Annual Report
Sustainability Approach
Non-Financial Information Statement
Sustainability and non-financial information have become a central concern among business leaders,
investors, consumers and regulators. Capital market participants are increasingly prioritizing the
importance of non-financial information.
This chapter discloses the content included in the Statement of Non-Financial Information (SNFI) as
required under the Non-Financial Reporting Directive requirements.
Reporting requirement
Relevant policies and
standards
References
Sustainability and Environmental
matters
Sustainability Policy
Section 4.1.1 Sustainability
Report
Environmental Management
Model
Integral closure of mining
operations standard
Climate change standard
Water management
standard
Biodiversity standard
Tailings policy
Global Industry Standard on
Tailings Management
Section 4.2.2
Sustainability Report –
Climate change goals
commitment
Section 8.3 Sustainability
Report – Efficient water
management and zero
discharge
Section 8.5 Sustainability
Report – Biodiversity
protection
Section 7.1.2 Sustainability
Report – Safe
management of our
Tailings Storage Facility
(TSF)
Our people
a) Employment
Total number of employees
Total number and
distribution of employment
contract types
Note 7 Financial
Statement
Section 6.1.1.1
Sustainability Report
Average annual number of
contracts, temporary
contracts and part-time
contracts by gender, age and
professional classification
Number of dismissals by
gender, age, country and
professional classification
Section 6.1.1.1
Sustainability Report
Salary gap, remuneration of
the same/average jobs in the
company
Section 6.1.1.1
Sustainability Report
The average remuneration of
directors and executives,
including variable
remuneration, plus expenses,
indemnities, payment to
long-term savings pension
systems and any other
payment broken down by
Section 6.1.1.1
Sustainability Report
Corporate Governance
77 | Atalaya Mining plc 2023 Annual Report
Sustainability Approach
gender
b) Organization of work
Number of hours of
absenteeism •
Work-life balance measures
d) Social relations: •
Organization of employee
dialog •
Percentage of employees
covered by collective
agreement, by country •
Equality
The Social way and
contribution
Frequency and severity of
occupational accidents, by
gender and by our
employees and contractors •
Occupational diseases
Code of Ethics
Human Rights Policy
Social matters
Safety and health
Respect for human rights
Anti-corruption and bribery
Code of Ethics
Compliance Model
Anti-Corruption Model
Antitrust Protocol
Diversity on company boards (in
terms of age, gender, educational
and professional background)
Governance
Report.
Remuneration of
members of the Board of
Directors and executive
personnel is included in
Note 30 to the 2023
Consolidated Financial
Statements.
GRI 403-9 included in the
Sustainability Report
Collective bargaining
Collective bargaining
Section 6.3.1 Sustainability
Report
Section 6.2.1 Sustainability
Report
Section 9.1.3 Sustainability
Report
Section 7.2 and 7.3
Sustainability Report
Section 7.3
Code of business conduct
and ethics
(Good governance –
website)
Section 5.2.3 Human
Rights Commitment –
Sustainability Report
Section 5.2.4
Sustainability Report
Compliance Policy (Good
governance -Policies -
website)
Whistleblower Policy
(Good governance -
Corporate policies -
website)
Anti-Bribery and Anti-
Corruption Policy (Good
governance -Corporate
policies -website)
Board Diversity Policy
(Good governance –
corporate policies
website)
Suppliers
Code of ethics
Section 5.2.1 corporate
78 | Atalaya Mining plc 2023 Annual Report
Sustainability Approach
Purchase and contracts
guidelines
Risk management
policies Sustainability
Report
GRI 308-1-2 Sustainability
Report
Supplier Payment Policy
(Good governance -
Corporate policies -
website)
Risk Management Policy
(Good governance -
Corporate policies -
website)
79 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Board Leadership and Company Purpose
Letter from the Chair of the Nomination and Governance Committee
Dear shareholder
I am writing to you as the Chair of the Corporate Governance Committee of Atalaya Mining plc, as we
reflect on the accomplishments and advancements made in the realm of corporate governance
throughout the year 2023. We recognise the importance of good corporate governance for our
Company, our shareholders and the investor community.
As we prepare our annual report for shareholders, it is crucial to highlight the significant changes and
improvements we have implemented in this critical aspect of our operations. These changes are the
reflection of the Board’s responsibility to adhere to best practices.
Over the past year, our Committee and the Board of Directors have dedicated substantial effort
towards aligning our corporate governance practices with the highest standards of accountability,
transparency, and ethical conduct. One of the most notable transitions we have undertaken is the
decision to transition from the QCA (Quoted Companies Alliance) Code to the UK Corporate
Governance Code (“UK Code”) once the move to the Main List is completed in 2024.
This decision was made after careful consideration and thorough evaluation of the evolving
regulatory landscape and best practices in corporate governance. In addition, the decision follows
the Company’s intention to apply for the Company's ordinary shares to be admitted to the premium
listing segment of the Official List maintained by the Financial Conduct Authority.
We recognize the importance of adhering to globally recognized standards to enhance investor
confidence, foster sustainable growth, and mitigate risks effectively.
The transition to the UK Code will represent a significant milestone for Atalaya, underscoring our
commitment to excellence in corporate governance and our determination to uphold the highest
standards of integrity and transparency. It also reflects our proactive approach towards embracing
changes that are conducive to long-term value creation and stakeholder interests.
I am, therefore, pleased to introduce this Governance section of our Annual Report and take the
opportunity to highlight some of the areas of progress during the year.
In addition to preparing to adopt the UK Code, we have implemented a series of governance reforms
aimed at enhancing board effectiveness, strengthening oversight mechanisms, and promoting
diversity and inclusion at all levels of our organization. These reforms are instrumental in reinforcing
our governance framework and positioning Atalaya as a leader in responsible business practices.
At our EGM in December 2023, we asked shareholders for approval to re-domicile the Company by
transferring its registered office from the Republic of Cyprus to the Kingdom of Spain. The resolution
was approved by the Shareholders. The incorporation in Cyprus no longer reflects the Company's
geographic and strategic focus, and therefore represents a legacy structure for the Company.
The re-domiciliation to Spain also opens the possibility for the Company to be eligible for inclusion in
the FTSE UK Index Series, which the Company believes would be in the interest of all its shareholders.
The committee has reviewed the Terms of References for the Board of Directors and all the
committees and several policies. The Committee also reviewed our annual Board effectiveness
survey and concluded that the Board and committees continue to perform well.
As we move forward, our committee remains steadfast in its commitment to continuous
improvement and excellence in corporate governance. We will continue to monitor emerging trends,
engage with stakeholders, and adapt our practices to reflect evolving expectations and regulatory
requirements.
In conclusion, I would like to express my gratitude to the fellow Directors for their unwavering
support and guidance throughout this transformative journey. Together, we are laying the
foundation for sustainable growth and long-term success, grounded in robust corporate governance
80 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
practices.
Yours sincerely,
Mr Neil Gregson
Chairman of the Nomination and Governance Committee
18 March 2024
81 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Atalaya’s approach to Governance
The Board’s leadership role
The approach of Atalaya to the highest standards in corporate governance is led by the Board of
Directors, which is ultimately responsible for the good corporate governance of the Company.
During the 2023 fiscal year, the Board of Directors, guided by the Nomination and Governance
Committee, reviewed the application of the UK Corporate Governance Code, developing those areas
in which the Company needed improvement. This is a significant step towards the governance
excellence as the implementation of these guidelines are ahead of the formal approval of the
Company to report against the UK Corporate .Governance Code.
The implementation and subsequent review of these guidelines fall under the Senior Management
of the Company, which has day-to-day operational responsibility allowing to be closer to the business
and stakeholders. The Senior Management comprises the Chief Executive Officer, the Chief Financial
Officer, and the General Manager of Proyecto Riotinto.
There is an additional layer of oversight for the Senior Management team, initially from independent
non-executive directors and then from the Board of Directors. All Senior Management members and
Directors maintain regular contact to provide challenges and/or support as appropriate.
The Board also oversees the management of the Group’s activities, including the implementation of
both long-term plans and commercial strategy. It establishes the governance framework within
which Senior Management operates. The Board has a formal schedule of matters reserved for its
approval, which includes major expenditures, investments, key policies, systems of internal control,
and risk management. Certain specific responsibilities are delegated to Board committees, including
Audit, Nominations and Governance, Remuneration, Physical Risk, and Sustainability, each chaired
by a Board member and each operating within clearly defined terms of reference, reporting regularly
to the Board.
Highlights of the Board for this Year
Atalaya had eleven Board meetings in which a wide array of subjects was dealt with. When needed,
its professional advisors are invited to attend meetings to provide input into legal and financial
matters.
Atalaya has also three Physical Risk Committee meetings, five Audit and Financial Risk Committee
meetings, five Nomination and Governance Committee meetings, eight Remuneration Committee
meetings and four sustainability Committee meetings.
These committee meetings were held to deal with specific agenda item and then minutes of those
meetings reported to the Board of Directors. A summary of the topics discussed at Board and
Committee meetings included:
Health and safety, reporting of accidents and reviewing policy to look for improvements
including giving the go ahead on a restructuring of the safety department.
Operational, discussed all the operational information and data.
Financial, reviewed figures such as cost, capital investment, budgets, etc.
Quarterly reports, annual report and other deliverables to the Market.
Re-election of Directors and the Board Succession plan.
Changes to the remuneration policies and structure.
Board and committees’ performance.
Review of Directors skills and value added to the Board of Directors.
Company’s term of reference and policies.
Company’s risk management approach.
Monitoring of expansion, review of growth opportunities/acquisitions.
Dividend policy.
Re-domiciliation process and move up to the Main Market of the London Stock Exchange.
The Board would like to thank the committees that have helped the Board reach its conclusions.
82 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
About the Board of Directors and Committees
The Group and the Company give special attention to the application of sound corporate governance
policies, practices and procedures. Corporate Governance is the set of procedures followed for the
proper management and administration of the Group. Corporate Governance governs the
relationship between the shareholders, the Board of Directors and the management team of the
Company.
Board structure
Atalaya recognises the need to have a diverse board so that varying points of view can be brought to
the board table. It ensures its Directors are well qualified and have a range of different skills and
experience, with a good international mix to meet the requirements of operating in a global industry.
Executive
Gender Nationality
Years of
service
R. Davey (*)
Non-independent Non-executive Chair
Male
British
Since May 2010
A. Lavandeira
Chief Executive Officer
H. Barma
Independent Non-executive Director
J. Fernández
Non-executive Director
Male
Male
Male
Spanish
Since May 2014
British
Since Sep 2015
Spanish
Since Jun 2015
S. Scott
Independent Non-executive Director
Male
Australian Since Sep 2015
N. Gregson
Independent Non-executive Director
Male
British
Since Feb 2021
K. Harcourt
Independent Non-executive Director
Female
British
Since May 2022
(*) Roger Davey is not considered independent for the purposes of the UK Corporate Governance Code as
he has served on the Board for more than nine years from the date of his first appointment.
Board diversity
Gender
Male
Female
Ethnic origin
Europe & UK
Asia
Australia
Independence
Non-Independent
Independent
6
1
6
1
1
3
4
83 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Indicator
2020
2021
2022
2023
Percentage of independent directors (%) 1
50
57.1
71.4
Percentage of non-executive directors (%) 1
87.5
85.7
85.7
Confirmed incidents of corruption
Number of code of conduct violations
Sanctions paid for legal breaches (K€)
0
0
0
0
0
0
0
0
0
57.1
85.7
0
0
0
The Board of Directors approved a Board Diversity Policy with the purpose to set out the approach
to diversity on the Board of Directors and Senior Management.
The board will consider all aspects on diversity when reviewing the composition and balance of the
Board and when conducting the annual Board effectiveness review.
The Board of Directors expect to progress on the Board members and senior management diversity
in the near future.
Director candidates
The Nomination and Governance Committee identifies potential candidates to become members of
the Board and fulfils the Board´s statutory and fiduciary responsibilities with respect to corporate
governance and integrity. Meetings of the Committees are held not less than three times year to
enable the Committee to undertake its role effectively.
Gender Diversity Statement
The Board recognises the benefits of diversity in its broadest sense and believes that the Board’s
capabilities are improved by a diverse balance of skills, expertise, gender, ethnicity, and professional
and social backgrounds. Together, this brings the widest possible breadth of perspectives, insights
and challenge to the decision-making process, ultimately ensuring the Board and senior
management are equipped to promote the long-term success of the Company.
Board Meetings and Attendance
The Board and Directors do not have fixed time requirements. They are expected to attend all
meetings and be sufficiently prepared with all issues that arise.
Atalaya’s decisions are predominantly made by achieving a consensus at Board meetings. In
exceptional circumstances, decisions may be taken by the majority of Board members.
All Directors are required to take decisions objectively and in the best interests of the Company. As
part of their duties as Directors, non-executive Directors are expected to apply independent
judgement to contribute to issues of strategy and performance and to scrutinise the performance of
management.
The Board is scheduled to meet at least 8 times a year, and at such other times as are necessary to
discharge its duties.
84 | Atalaya Mining plc 2023 Annual Report
The Board met a total of 11 times in 2023. Meetings occurred in person and by teleconference.
Corporate Governance
BoD
AC
SC
PRC
NGC
RC
Total Attended
Total Attended
Total Attended
Total Attended
Total Attended
Total Attended
R. Davey
A. Lavandeira
H. Barma
J. Fernández
Neil Gregson
S. Scott
K. Harcourt
11
11
11
11
11
11
11
11
10
11
5
11
11
11
4
-
5
-
5
1
-
4
-
5
-
5
1
-
4
-
4
-
-
-
4
4
-
4
-
-
-
4
3
-
-
3
3
3
-
3
-
-
-
3
3
-
-
-
-
-
5
5
5
-
-
-
-
5
5
5
-
-
-
-
8
8
8
-
-
-
-
8
8
8
In addition to the above, two subcommittees of the Board of Directors were held during 2023.
Conflict of interest
Where an individual’s private interests are at variance in any way with the interests of the Company
as a whole, a conflict of interest exists. Further, a conflict of interest can be seen to exist where a staff
member or family member of staff, has a direct or indirect financial interest in, or receives any
compensation/other benefit from, any individual or firm. Directors of the Company shall disclose in
writing conflicts of interest to the Board or request to have entered in the minutes of meetings of the
Board the nature and extent of such interest.
Share dealing and insider trading
Pursuant to Rule 21 of the AIM Rules for Companies, the Company must have in place a reasonable
and effective dealing policy setting out the requirements and procedures for dealings in the
Company's securities. AIM Rule 21 sets out the minimum provisions which the dealing policy must
contain. A Person Discharging Managerial Responsibilities (“PDMR”) (any person who is member of
the administrative, management or supervisory body of the Company or an Officer of the Company)
may not deal in any securities, on his or her own account or for the account of a third party, directly
or indirectly, during: a close Period; or at any time when he or she is in possession of Inside
Information; or otherwise, where clearance to deal is not given under the Clearance to Deal policy.
Summary of the provisions of the Criminal Justice Act 1993 and the Market Abuse Regulation
(596/2014/EU): In addition to the rules set out in this Policy, there are two principal pieces of legislation
that PDMRs must be aware of when dealing in both the securities of the Company and securities in
general. The Criminal Justice Act contains a criminal offence of insider dealing and Market Abuse
Regulation covers market abuse. In broad terms, there are three insider dealing offences: dealing
when in possession of inside information, encouraging another person to deal when in possession of
inside information; and disclosing inside information otherwise than in the proper performance of
the functions of the job. Inside information is information, which is not public, relates to the securities
in a company, and if it were publicly known would have a significant effect on the price of the
shares/securities of that company. This may include information about the Company, but it may also
include confidential information regarding the intentions or prospects of someone the Company
deals with or a competitor of the Company.
Information technology governance
The Board assumes the responsibility for risks related to the information technology (“IT”) systems
and cyber security. The IT department implements procedures to avoid or solve any potential IT
business impact.
85 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Internal control system
The Directors have overall responsibility for the Group’s internal control and effectiveness in
safeguarding the assets of the Group. Internal control systems are designed to reflect the particular
type of business, operations and safety risks and to identify and manage risks, but not to eliminate
all risks completely to which the business is exposed. As a result, internal controls can only provide a
reasonable, but not absolute, assurance against material misstatements or loss.
The processes used by the Board to review the effectiveness of the internal controls are through the
Audit Committee and the senior management, reporting to the Board on a regular basis where
business plans and budgets, including investments are appraised and agreed. The Board also seeks
to ensure that there is a proper organisational and management structure with clear responsibilities
and accountability. It is the Board’s policy to ensure that the management structure and the quality
and integrity of the personnel are compatible with the requirements of the Group.
The Board attaches importance to maintaining good relationships with all its shareholders and
ensures that all price sensitive information is released to all shareholders at the same time in
accordance with AIM rules. The Company’s principal communication with its investors is through the
annual report and accounts, the quarterly statements and press releases issued as material events
unfold.
Code of business ethic and conduct
The Company is dedicated to delivering outstanding performance for investors, customers,
consumers and its Staff. The Company aspires to be the leader in its field while operating openly, with
honesty, integrity and responsibility and maintaining a strong sense of corporate social responsibility.
In maintaining its corporate social responsibility, the Company will conduct its business ethically and
according to its values, encourage community initiatives, consider the environment and ensure a
safe, equal and supportive workplace.
Atalaya is committed to delivering value to its shareholders and to representing the Company’s
growth and progress truthfully and accurately. The Company also complies with the spirit as well as
the letter of all laws and regulations that govern shareholders’ rights.
The Company is committed to safeguarding the integrity of financial reporting and as such will
openly promote and instigate a structure of review and authorisation designed to ensure the truthful
and factual presentation of the Company’s financial position. The Company will prepare and maintain
its accounts fairly and accurately in accordance with the accounting and financial reporting
standards that represent the generally accepted guidelines, principles, standards, laws and
regulations of the countries in which the Company conducts its business.
Modern slavery and human trafficking
The Group is committed in respect of working conditions and to removing potential modern slavery
risks relating to the business. Atalaya takes steps to ensure that there is no slavery or human
trafficking further along its supply chain and/or in any part of its business.
Anti-bribery and corruption policy
It is Atalaya´s policy to conduct all of its business in an honest and ethical manner and it takes a zero-
tolerance approach to bribery and corruption. As Atalaya is quoted on AIM, it ensures compliance
with the UK Bribery Act 2010 (the "Bribery Act").
The Anti-bribery and corruption policy applies to all directors, officers, consultants, temporary
workers and employees of the Group and any other person performing services for the Group or on
its behalf, e.g., due to a contractual relationship, including but not limited to distributors, contractors,
agents, joint venture and business partners, and other intermediaries.
86 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Investor relations
The senior management of Atalaya is committed to having regular interaction with investors on the
performance of the Group through presentations and meetings. A broad range of documentation
and information for investors is available on the Company’s website www.atalayamining.com and it
is updated on a regular basis.
Board Appointments
The Board of Directors is appointed by the shareholders, with careful consideration given to each
Director's skills, experience, and expertise. It is imperative that Directors act as exemplary
representatives of the Company, embodying its values and work ethic. They are entrusted with the
responsibility of dedicating significant time to research and preparation before each meeting to
ensure the Company's strategic direction aligns with its goals.
Director Induction
Upon appointment, new Directors undergo a comprehensive induction program tailored to
familiarize them with their role and responsibilities. This program includes meetings with existing
Directors, key members of the senior management team, and the Company's professional advisors.
Additionally, new Directors receive thorough briefings on their obligations under AIM regulations.
To provide firsthand insight into the Company's operations, new Directors are afforded the
opportunity to visit Atalaya's facilities in Spain, gaining a deeper understanding of its operational
dynamics.
Furthermore, the Company emphasizes the importance of ongoing professional development for its
Directors, requiring them to stay abreast of industry developments and maintain familiarity with the
Company's articles and charters.
Director Independence
The Board will be composed of at least the same number of independent Directors (in accordance
with applicable securities laws and stock exchange rules) as non-independent, non-executive
Directors. The Nomination and Governance Committee will determine whether a member of the
Board, or nominee to the Board, is an independent Director. If at any time less than half of the non-
executive Directors are independent, the Board shall take steps to rectify this and ensure that the
composition of the Board returns to having at least half independent Directors. If at any time the
Chair of the Board is not independent, the Board shall consider possible steps and processes to
ensure that leadership is provided for the Board's independent Directors.
This ensures that all Board discussions or decisions have the benefit of outside views and experience,
and that at least half of the non-executive Directors are free of any interests or influences that could
or could reasonably be perceived to materially interfere with the Director's ability to act in the best
interests of the Company.
At least annually, the Board shall, with the assistance of the Nomination and Governance Committee,
determines the independence of each director and the independence of each Audit and Financial
Risk Committee member.
In the opinion of the Board, all Directors should bring specific skills and experience that add value to
the Company. The balance of skills and experience of the Board is to be regularly reviewed by the
Nomination and Governance Committee .
When considering the potential reappointment of an existing Director, the Board will consider the
individual's performance as well as the skills and experience mix required by the Board in the future.
When considering vacancies, the Board will consider a candidate's capacity to enhance the mix of
skills and experience of the Board.
87 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Non independent non-executive Directors
The names and particulars of the qualifications and experience of each director are set out below.
In accordance with the Company’s Articles of Association, one-third of the Board of Directors must
resign each year.
All the Directors will resign at the next AGM and offer themselves for re-election.
Roger Davey – Non-executive Chair of the Board
Mr. Davey has over forty years’ experience in the mining industry. Previous employment included
Assistant Director and Senior Mining Engineer at NM Rothschild & Sons; Director, Vice President and
General Manager of AngloGold’s subsidiaries in Argentina; Operations Director of Greenwich
Resources Plc, London; Production Manager for Blue Circle Industries in Chile; and various
production roles from Graduate Trainee to Mine Manager, in Gold Fields of South Africa (1971 to 1978).
Mr. Davey is currently a director of Highfield Resources Ltd., Central Asia Metals plc and Tharisa plc.
Mr. Davey is a graduate of the Camborne School of Mines, England (1970), with a Master of Science
degree in Mineral Production Management from Imperial College, London University, (1979) and a
Master of Science degree from Bournemouth University (1994). He is a Chartered Engineer (C.Eng.),
a European Engineer (Eur. Ing.) and a Member of the Institute of Materials, Minerals and Mining
(MIMMM).
Roger Davey is not considered independent as he has served on the Board for more than nine years from
the date of his first appointment.
Mr. Davey is the Chair of Atalaya’s Board of Directors and a member of the Physical Risk Committee
and the Sustainability Committee
Name
Role
Years of service
Executive
Time commitment
Roger Davey
Chair
Since May 2010
Non-
At least 75% of
Non-Independent
executive
meetings
director
scheduled
Skills
Mining experience, operations, processing, exploration, Capital markets, UK Market,
International business,
leadership, strategic,
fund raising, M&A, governance, project
management.
Jesus Fernandez - Non-executive Director
Mr Fernandez is Head of Mergers and Acquisitions for Trafigura. He joined Trafigura in 2004 and has
extensive experience in mergers and acquisitions and providing financing solutions to mining
companies. He established the Trafigura Group's mining investment arm in 2005. He is also a Director
of the Galena Private Equity Resources Fund and a Director of a number of companies including the
Trafigura Group's Mining Division and Bowie Resources Partners.
Prior to joining Trafigura, he worked in the project finance team at International Power plc in London.
Mr Fernandez holds a Master of Science (Finance and Investment) from the University of Exeter and
a degree in Economics from the Universidad de Cantabria, Spain.
Mr. Fernandez is member of the Physical Risk Committee.
Name
Role
Years of service
Executive
Time commitment
Jesus Fernandez
Non-Independent Since Jun 2015
Non-
At least 75% of
executive
meetings
director
scheduled
Skills
88 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
M&A, Mining experience, Capital market, UK Markets, International business, corporate finance,
finance and accounting, legal, leadership, strategic, fund raising.
Non independent executive Director
Alberto Lavandeira – Managing Director and Chief Executive Officer
Mr. Lavandeira brings over forty years of experience operating and developing mining projects. He is
a graduate of the University of Oviedo, Spain with a degree in Mining Engineering.
Formerly, he was President, CEO and COO of Rio Narcea Gold Mines which built three mines
including Aguablanca and El Vallés-Boinas in Spain and Tasiast in Mauritania. He was also involved
in the key stages of development of the Mutanda mine in the Democratic Republic of Congo. Earlier
in his career, Mr. Lavandeira worked within group companies of Anglo American, Rio Tinto and
Cominco (now Teck).
Mr. Lavandeira joined Atalaya in 2014. He is currently a director of Black Dragon Gold Corp.
Name
Alberto
Role
Years of service
Executive
Time commitment
Non-Independent
Since May 2014 Executive
100%
Lavandeira
- Chief Executive
Officer
Skills
Mining experience, operations, processing, exploration, commercial, capital market,
international business,
leadership, strategic,
fund raising, M&A, governance, project
management, permitting, government relations, CEO, sustainability.
Independent non-executive Directors
Neil Gregson - Non-executive Director and Senior Independent Director
Mr Gregson has over 30 years of experience investing in mining and oil and gas companies. From
2010 to 2020, he was a Managing Director at J.P. Morgan Asset Management, where he was a
member of the equity team and a portfolio manager investing in mining and energy companies
globally. Previously, from 1990 to 2009, he was Head of Emerging Markets and Related Sector Funds
(including natural resources funds) at Credit Suisse Asset Management. Prior to that, Mr Gregson
held various positions in mining companies, including a role as mining investment analyst with Gold
Fields of South Africa.
Mr Gregson holds a BSc (Hons) Mining Engineering from the University of Nottingham. He became
a Fellow of the Institute of Investment Management and Research, London in 1994. He holds a
Diploma in Business Management from Damelin College, Johannesburg (1988) and a Mine Managers
Certificate of Competency, South Africa (1985).
Mr. Gregson is the Chair of the Remuneration Committee, Chair of the Nomination and Governance
Committee, member of the Physical Risk Committee and member of the Audit and Financial Risk
Committee.
Name
Role
Years of service
Executive
Time commitment
Neil Gregson
Chair of the RC
Since Feb 2021
Non-
At least 75% of
and NGC
Independent
executive
meetings
director
scheduled
Skills
Mining experience, Corporate finance, finance, legal, UK Market, capital market, international
business, leadership, strategic, fund raising, M&A communications, sustainability.
89 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Kate Harcourt - Non-executive Director
Mrs. Harcourt has extensive experience as independent sustainability consultant, including ESG
Officer and ESG Adviser, at a range of UK-linked mining companies, including Cornish Lithium and
Adriatic Metals, and has participated in several due diligence projects for mining assets as part of a
multidisciplinary team. Prior to 2010, was Director of Health, Safety, Environment, Communities and
Securities at Mag Industries, Senior Environmental Scientist at Golder Associates (UK) Ltd, Senior
Environmental Scientist at Wardell Armstrong and Environmental Scientist at SRK (UK) Ltd. Mrs.
Harcourt also sits on the board of Fortuna Silver Mines and Orezone Gold Corporation.
Mrs. Harcourt is the Chair of the Sustainability Committee, a member of the Remuneration
Committee and a member of the Nomination and Governance Committee.
Name
Role
Years of service
Executive
Time commitment
Kate Harcourt
Chair of the SC
Since May 2022 Non-
At least 75% of
Independent
executive
meetings
director
scheduled
Skills
Mining experience, sustainability, health, safety, environment.
Dr. Hussein Barma - Non-executive Director
Dr. Barma is a chartered accountant and qualified lawyer by background with over 20 years’
experience in senior positions in the mining sector. He brings to Atalaya deep experience in
accounting, internal control, governance, risk management, and compliance. He has significant
FTSE-50 senior executive experience, gained over 15 years at Antofagasta plc, where he led its UK
presence through a period of change and growth as the UK-based chief financial officer. He has also
had earlier careers in professional services and academia. He is a non-executive Director of Chaarat
Gold Holdings Limited and Fidelity Asian Values PLC. He is also a principal at Barma Advisory where
he has worked on various assignments within the natural resources and other sectors and an
independent Governor of the University of the Arts London.
Dr. Barma is the Chair of the Audit Committee, and a member of the Sustainability Committee.
Name
Role
Years of service
Executive
Time commitment
Hussein Barma
Chair of the AC
Since Sep 2015
Non-
At least 75% of
Independent
executive
meetings
director
scheduled
Skills
Mining experience, Corporate finance, finance and accounting, legal, UK Market, capital
market, international business, leadership, strategic, fund raising, M&A communications,
sustainability.
Stephen Scott - Non-executive Director
Mr. Scott is President and CEO of Entree Resources Limited. Previously, he was president and CEO of
Minenet advisors, advising on strategy, corporate development, business restructuring and project
management. He held various global executive positions with the Rio Tinto Group (2000-2014). Mr.
Scott is an experienced public company director.
Mr. Scott is the Chair of the Physical Risk Committee, a member of the Remuneration Committee
and a member of the Nomination and Governance Committee.
Name
Role
Years of service
Executive
Time commitment
Steve Scott
Chair of the PRC
Since Sep 2015
Non-
At least 75% of
90 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Independent
executive
meetings
director
scheduled
Skills
Mining experience, operations, processing, exploration, capital market, international business,
leadership, strategic, fund raising, M&A, governance, project management, permitting, CEO.
Role of the Board
The Board has a duty to supervise the management of the business and affairs of the Company. The
Board directly and with the Chair provide direction to senior management, generally through the
CEO, to pursue the best interests of the Company.
The Board has the final responsibility for the successful operations of the Company. The Board must
ensure that management has in place appropriate processes for strategic planning and risk
assessment, management and internal control and monitor performance against benchmarks. The
Board must also ensure that the Company complies with all of its contractual, statutory and any other
legal obligations, including the requirements of any regulatory body.
The Board is responsible for guiding and monitoring the business and the affairs of the Company.
The Company recognises the importance of the Board in providing a sound base for good corporate
governance in the operations of the Company. The Board must at all times act honestly, fairly and
diligently in all respects in accordance with the law applicable to the Company. Furthermore, the
Board will at all times act in accordance with all Company policies in force.
Each of the Directors, when representing the Company, must act in the best interests of shareholders
of the Company and in the best interests of the Company as a whole.
The Role of Individual Directors
As members of the Board, Directors have ultimate responsibility for the Company's overall success.
Therefore, Directors have an individual responsibility to ensure that the Board is undertaking its
responsibilities as set out in the Board charters.
Directors need to ensure the following:
Leadership of the Company, particularly in the areas of ethics and culture including a clear
and appropriate strategic direction.
Accountability to key stakeholders, particularly shareholders.
Oversight of all control and accountability systems including all financial operations and
solvency, risk management and compliance.
an effective senior management team and appropriate personnel policies; and
timely and effective decisions on matters relating to it.
It is also expected that the Directors comply with the following:
Behaving in a manner consistent with the words and spirit of the Code of Conduct.
Making reasonable efforts to attend all meetings of the Board, the annual general meeting
of shareholders of the Company and of all the Board committees upon which they serve.
Subject to extenuating circumstances, Directors are expected to attend at least 75% of
regularly scheduled Board and committee meetings. The NGC will review the circumstances
that prevent any director from achieving the minimum level and report its findings to the
Board.
Addressing issues in a confident, firm and friendly manner but also ensure that others are
given a reasonable opportunity to put forward their views.
Preparing thoroughly for each Board or Committee event.
Using judgement, common sense and tact when discussing issues.
Lastly Directors will keep confidential all Board discussions and deliberations. Similarly, all
confidential information received by a Director in the course of the exercise of the Director's duties
91 | Atalaya Mining plc 2023 Annual Report
remains the property of the Company and is not to be discussed outside the boardroom. It is
improper to disclose it, or allow it to be disclosed, without appropriate authorisation.
Corporate Governance
92 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Senior management
Alberto Lavandeira - Managing Director and Chief Executive Officer
Mr. Lavandeira brings over forty years of experience operating and developing mining projects. He is
a graduate of the University of Oviedo, Spain with a degree in Mining Engineering.
Formerly, he was President, CEO and COO of Rio Narcea Gold Mines which built three mines
including Aguablanca and El Vallés-Boinas in Spain and Tasiast in Mauritania. He was also involved
in the key stages of development of the Mutanda mine in the Democratic Republic of Congo. Earlier
in his career, Mr. Lavandeira worked within group companies of Anglo American, Rio Tinto and
Cominco (now Teck).
Mr. Lavandeira joined Atalaya in 2014. He is currently a director of Black Dragon Gold Corp.
Name
Role
Years of service
Executive
Time
commitment
Alberto
Chief Executive
Since May 2014 Executive
100%
Lavandeira
Officer
Skills
Mining experience, operations, processing, exploration, commercial, capital market,
international business,
leadership, strategic, fund raising, M&A, governance, project
management, permitting, government relations, CEO, sustainability.
Cesar Sanchez - Chief Financial Officer
Mr. Sánchez has experience as Chief Financial Officer of various companies in both the mining and
financial industries, including Iberian Minerals Corp, where he participated in its equity and debt
raisings and worked for Ernst & Young as an auditor and as a financial adviser to the industrial sector,
where he gained experience in restructurings, initial public offerings, mergers and due diligence
processes.
Mr. Sánchez graduated from the University of Seville, Spain, with a degree in Business Administration
and he is a qualified accountant. Mr. Sánchez has also completed various financial and banking
courses at Dublin City University and ESIC Business & Marketing School.
Name
Role
Years of service
Executive
Time
commitment
Cesar Sanchez
Chief Financial
Since June
Executive
100%
Officer
2016
Skills
Mining experience, Capital markets, Canada and UK Markets, International business,
Corporate finance, finance and accounting, legal, leadership, strategic, fund raising, M&A,
governance.
Enrique Delgado - Operations - General Manager Proyecto Riotinto
Mr. Delgado’s previous roles include metallurgist in Riotinto Mine and later with Freeport McMoRan,
at Atlantic Copper smelter in Huelva, Spain, CEO of Tharsis Mining and director of Metallurgy and
Environment at Cobre Las Cruces Mine (First Quantum). With First Quantum he also participated in
the start-up of Kansanshi Mine smelter in Zambia.
He graduated from the University of Sevilla, Spain and holds a Master of Senior Management of
Leading Companies of the San Telmo International Institute of Sevilla, Spain. He is Vice-President of
Aminer, the Spanish Base Metal Mining Association and holds a Senior Management Programme at
93 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Instituto San Telmo (Sevilla).
Name
Role
Years of service
Executive
Time
commitment
Enrique Delgado Operation General
Since May 2019 Executive
100%
Manager Proyecto
Riotinto
Skills
Mining experience, operations, processing, exploration, international business, leadership,
strategic, governance, project management and permitting.
94 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Division of Responsibilities
The Board of Directors actively describe the role of the Chair of the Board of Directors and the CEO.
The statement of the Division of Responsibilities between the Chair and the CEO describes each role
for the following topics:
The Reporting line.
Key responsibilities.
Other matters.
Chair’s Role
The Chair is considered the "lead" Director and utilises his experience, skills and leadership abilities
to facilitate the governance processes. The Chair will be selected on the basis of relevant experience,
skill and leadership abilities.
The responsibilities of the Chair include but is not restricted to:
Chair Board, annual and extraordinary meetings;
Set Board agendas and ensure that the meetings are effective and follow the agenda;
Ensure that the decisions are implemented promptly;
Ensure that the Board behaves in accordance with the Company´s code of conduct
The primary spokesperson and channel of communication for the Company in the annual
general meeting and in all public relation activities;
To be kept informed by the CEO and other senior management which may be relevant to
Directors in their capacity as Directors;
Ensures Directors devote sufficient time to their tasks
The Board monitors and promotes corporate culture with frequent contact via senior management
and the CEO. Management and CEO report the state of the culture to the Board and include any
recommendations they have.
The Role of the CEO
The CEO is responsible for the attainment of the Company's goals and vision for the future, in
accordance with the strategies, policies, programmes and performance requirements approved by
the Board. The position reports directly to the Board.
The CEO's primary objective is to ensure the ongoing success of the Company through being
responsible for all aspects of the management and development of the Company. The CEO is of
critical importance to the Company in guiding the Company to develop new and imaginative ways
of winning and conducting business. The CEO must have the industry knowledge and credibility to
fulfil the requirements of the role.
The CEO will manage a team of executives responsible for all functions contributing to the success
of the Company.
The tasks of the CEO shall include but not restricted to:
Develop with the Board, implement and monitor the short- medium- and long-term
strategic and financial plans for the Company to achieve the Company's vision and overall
business objectives;
Develop all financial reports, and all other material reporting and external communications
by the Company, including material announcements and disclosure, in accordance with the
Company's Shareholder Communication Policy;
Manage the appointment of the Chief Operating Officer (“COO”), CFO, Company Secretary
and other specific senior management positions;
Develop, implement and monitor the Company's risk management practices and policies;
Consult with the Chair and the Company Secretary in relation to establishing the agenda for
Board meetings;
Agree with the Chair their respective roles in relation to all meetings (formal and informal)
with shareholders and all public relations activities;
Be the primary channel of communication and point of contact between members of senior
management and the Board (and the Directors);
95 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Keep the Chair fully informed of all material matters which may be relevant to the Board and
its members, in their capacity as Directors;
Provide strong leadership to, and effective management of, the Company in order to:
Encourage co-operation and teamwork, build and maintain staff morale at a high level and
build and maintain a strong sense of staff identity with, and a sense of allegiance to, the
Company;
Advise the Board on the most effective organisational structure and overseeing its
implementation;
Establishing and maintaining effective and positive relationships with Board members,
shareholders, customers, suppliers and other government and business liaisons;
Carry out the day-to-day management of the Company.
The Role of Company Secretary
The Company Secretary is charged with facilitating the Company's corporate governance processes
and so holds primary responsibility for ensuring that the Board processes and procedures run
efficiently and effectively. The Company Secretary is accountable to the Board, through the Chair, on
all governance matters and reports directly to the Chair as the representative of the Board. The
Company Secretary is appointed and dismissed by the Board and all Directors have a right of access
to the Company Secretary.
The tasks of the Company Secretary shall include but not restricted to:
Notifying the Directors in writing in advance of a meeting of the Board as specified in the
Constitution and the Board Charter;
Recording, maintaining and distributing the minutes of all Board and Board Committee
meetings as required;
Preparing for and attending all annual and extraordinary general meetings of the Company;
Overseeing the Company's compliance programme and ensuring all Company legislative
obligations are met;
Ensuring all requirements of regulatory bodies are fully met; and providing counsel on
corporate governance principles and Director liability.
Indemnification of Directors and Officers
During the year, the Company held insurance to indemnify Directors, the Company Secretary and its
executive officers against liabilities incurred in the conduct of their duties to the extent permitted
under applicable legislation.
2023 Annual General Meeting
Atalaya’s AGM is expected to be held on 27 June 2024 at 12:00 noon in London (United Kingdom). The
business of the meeting will be conducted in accordance with regulatory requirements and
standards. The Chair of the Board and the Chairs of the Committees will be available to answer
questions put to them by shareholders at the meeting.
96 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Executive Committees
Audit Committee (“AC”)
Summary of Committee Responsibilities
Directors
- Reviews and monitors financial statements
Dr. Hussein Barma (Chair)
-Reviews Company’s public disclosure of
information
financial
Mr. Steve Scott
Mr Neil Gregson
- Reviews estimates and judgements that are material to
reported financial information
- Oversees the auditors’ arrangements and performance
- Reviews internal and external risks of the Company and
internal controls
Nomination and Governance Committee
Summary of Committee Responsibilities
Directors
- Succession planning for the Board and Management
Mr. Neil Gregson (Chair)
- Lead the process for Board appointments
- Reviews Corporate Governance of Atalaya and practices,
independence, charters’ review, and structure
Mrs. Kate Harcourt
Mr. Stephen Scott
Physical Risk Committee (“PRC”)
Summary of Committee Responsibilities
- Oversees safety, health, environment and security matters
of the Company
- Oversees enterprise-wide physical risk management
- Reviews compliance with legal and regulatory obligations
relating to safety, health, and the environment
Directors
Mr. Stephen Scott (Chair)
Mr. Neil Gregson
Mr. Jesus Fernandez
Mr. Roger Davey
Sustainability Committee
Summary of Committee Responsibilities
- Oversees the strategy and activities related to sustainable
development and social responsibility
- Develop and review regularly the policies, programmes,
practices, targets and initiatives of the Group relating to
Sustainability matters
Directors
Mrs. Kate Harcourt (Chair)
Dr. Hussein Barma
Mr. Roger Davey
Remuneration Committee
Summary of Committee Responsibilities
Directors
- Reviews Directors’ compensation and performance
Mr. Neil Gregson (Chair)
- Compensation and performance of officers of Atalaya
Mrs. Kate Harcourt
Mr. Stephen Scott
97 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Audit Committee Report
Attendance
Members
Hussein Barma (Chair)
Neil Gregson
Roger Davey
Stephen Scott
Dear Shareholders,
Attendance
5/5
5/5
4/4
1/1
On behalf of the Audit Committee, I am pleased to present our report for 2023, which outlines our
oversight activities and assessments conducted throughout the year.
The Audit Committee plays a crucial role in ensuring the integrity and transparency of our financial
reporting process. Our responsibilities include overseeing the financial reporting process, monitoring
the effectiveness of internal controls, reviewing the company's risk management procedures, and
overseeing the external audit process.
Throughout the fiscal year, the Audit Committee met regularly with management, advisors and
external auditors to review the company's financial performance, internal controls, and risk
management practices. These meetings provided us with valuable insights into the company's
operations and fulfil our responsibilities effectively.
Key Highlights from Our Activities:
Financial Reporting: We reviewed the company's financial statements, ensuring compliance
with relevant accounting standards and regulations. We also assessed the adequacy of
disclosures and the transparency of financial information provided to shareholders.
Risk Management: We assessed the company's risk management processes, including
identification, assessment, and mitigation of key risks. We ensured that management has
appropriate measures in place to manage risks effectively and protect shareholder interests.
External Audit: The Audit Committee monitored the external audit process, including the
selection and engagement of the external audit firm, the scope of the audit, and the quality
of audit services provided. We reviewed the auditor's reports and recommendations,
providing oversight to ensure the independence and objectivity of the audit process.
Looking Ahead:
As we move into 2024, the Audit Committee remains committed to upholding the highest standards
of corporate governance and financial oversight. We will continue to work closely with management,
advisors and external auditors to ensure the integrity of our financial reporting process and enhance
shareholder value.
The Role of the AC
The Company’s Audit Committee is responsible for ensuring that appropriate financial reporting
procedures are properly maintained and reported on, for meeting with the Group’s auditors and
reviewing their reports on the Group’s financial statements and the internal controls and for
reviewing key financial risks.
98 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
The Audit Committee is responsible for assisting the Board in overseeing the independence of the
external auditors and fulfilling the Boards’ statutory and fiduciary responsibilities relating to:
Financial reporting;
Reviewing and assessing the Company’s business and financial risk management process,
including the adequacy of the overall internal control environment and controls in selected
areas representing significant risk; and
External Audit.
To fulfil these functions the Audit Committee shall have the following duties and responsibilities:
To review the quality and integrity of all published financial statements and reports including
the annual Management Discussion and Analysis report (if applicable) and quarterly
earnings press releases issued by the Company, prior to the Company publicly disclosing the
information, as well as all other material continuous disclosure documents and analysis with
a view to making a recommendation to the Board.
To review estimates and judgements that are material to reported financial information and
consider the quality and acceptability of the Company’s accounting policies and procedures
and the clarity of disclosure in financial statements.
To ensure compliance by the Company with legal and regulatory requirements related to
financial reporting.
To review and to recommend to the Board the nomination and appointment of the external
auditor for the purposes of preparing or issuing an auditors’ report or performing other audit,
review or attest services and to recommend to the Board the compensation of the external
auditor.
To review the qualifications, performance and independence of the external auditor, to
consider the auditor’s recommendations and manage the relationship with the auditor,
which includes meeting with the external auditor as required in connection with the audit
services provided and to review the engagement letter of the external auditor.
To oversee the work of the external auditor engaged for the purposes of preparing or issuing
an auditor’s report or performing other audit, review or attest services for the Company,
including the resolution of disagreements between management and the external auditor
regarding financial reporting.
To meet with the external auditor to discuss the annual financial report and any transaction
referred to in the Board Charter.
To provide the external auditor with the opportunity to meet with the AC without
management present at least once per year for the purpose of discussing any issues.
To review the quality and integrity of the internal controls and accounting procedures of the
Company including reviewing the Company’s procedures for internal control.
To identify risks inherent in the business of the Company and to review the Company’s risk
management procedures.
To review and approve the Company’s hiring policies regarding partners, employees and
former partners and employees of the present and former external auditor of the Company.
To review any significant, including any pending, transactions outside the Company’s
ordinary course of business and any pending litigation involving the Company.
To review and monitor management’s responsiveness to external audit findings or any
regulatory authority.
To report to the Board of Directors, who in turn may refer the matter to the Corporate
Governance, Nominating and Compensation Committee, any improprieties or suspected
improprieties with respect to accounting and other matters that affect financial reporting or
the integrity of the business.
In addition, the Audit Committee shall establish procedures for the receipt, retention and treatment
of complaints (including “whistleblowing” complaints) received by Atalaya Mining regarding risk
management, legal/regulatory compliance, accounting, internal accounting controls or auditing.
This is to include a process for confidential anonymous complaints by employees or other
stakeholders.
99 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Membeship
The members of the Committee shall be appointed by the Board from amongst the directors of the
Company, on the recommendation of the Nomination and Governance Committee in consultation
with the Chair of the Committee and shall consist of not less than three members. All members of
the Committee shall be independent non-executive directors of the Company. At least one member
of the Committee shall have recent and relevant financial experience and the Committee as a whole
shall have competence relevant to the sector in which the Company operates. The Chair of the Board
shall not be a member of the Committee.
The members of the Committee shall, between them, have not only recent and relevant financial
experience, but also overall:
extensive business experience;
knowledge of financial markets;
an understanding of management practices including risk management activities, both
generally and in the Company’s industry sector; and
knowledge of any relevant specialist regulatory or legal requirements.
The Chair of the Committee shall be appointed by the Board. Where possible, the Chair of the
Committee should have prior experience as a director with another quoted company of at least
similar size and resources and have experience of risk management in relevant issues. In the absence
of the Chair of the Committee and/or an appointed deputy, the remaining members present shall
elect one of themselves to chair the meeting.
The Audit Committee comprises three members all of whom are non-executive and Independent.
The current membership of the committee is Dr. H. Barma (Chair), Mr. S. Scott and Mr. N. Gregson.
The secretary, CEO and CFO and external auditors also attend in when requested by the Committee.
The profiles of the Committee members are included on pages 88 to 93.
The role of the Chief Financial Officer
The Company's finance team shall prepare many of the papers required by the Committee. The Chief
Financial Officer, while not a member of the Committee, shall work closely with the Chair of the
Committee to ensure that papers for meetings are both comprehensive and comprehensible and
are available for distribution sufficiently in advance of Committee meetings.
The Chief Financial Officer will have responsibility for developing and implementing all necessary
policies and procedures for sound financial management and control.
The Chief Financial Officer shall attend Committee meetings when requested in order to participate
in discussions on papers prepared by the finance team and decisions which he/she will be involved
in implementing.
Compliance
The Audit Committee is responsible for assisting the Board in overseeing the independence of the
external auditors and fulfilling the Boards’ statutory and fiduciary responsibilities relating to the
compliance of financial reporting, reviewing and assessing the Company’s business and financial risk
management process, including the adequacy of the overall internal control environment and
controls in selected areas representing significant risk; and external Audit.
During the year 2023 there have not been identified any material instances of non-compliance by
the Company.
100 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
2023 Review
The Audit Committee met five times during 2023. Five meetings were timed to coincide with the
approval of financial results for publication with one meeting held as a planning meeting for year-
end.
During the year, the AC maintained regular dialogue with management as well as the external
auditors, both within and outside of formal committee meetings. The principal matters considered
by the AC during the year and in its discussions with management and the external auditors
included:
Review and approval of the quarterly, half yearly and full year financial results.
The going concern statement in the Management Report above and in the Financial
Statements,.
Key accounting and audit matters for 2023 including Revenue Recognition and Related
Parties Transactions.
A review of the AC’s Terms of Reference to ensure that it remained fit for purpose and that
the AC complied with its responsibilities.
Hussein Barma
Chair of Audit Committee
18 March 2024
101 | Atalaya Mining plc 2023 Annual Report
Nomination and Governance Committee Report
Corporate Governance
Members
Neil Gregson (Chair)
Kate Harcourt
Stephen Scott
To the shareholders of Atalaya:
Attendance
5/5
5/5
5/5
As the Chair of the Nomination and Governance Committee of Atalaya, it is my pleasure to present
our latest report for the year ended 31 December 2023.
Over the past year, the Nomination and Governance Committee has diligently fulfilled its
responsibilities in ensuring the effectiveness of the company's board of directors and governance
practices. Through robust discussions, careful evaluation, and adherence to best practices, we have
worked to maintain the highest standards of corporate governance.
During this period, the Committee has undertaken several key initiatives, including:
Board Composition: We have reviewed the composition of the board to ensure it reflects a
diverse range of skills, experiences, and perspectives necessary for effective decision-
making. Our aim has been to maintain a balanced mix of expertise while promoting diversity
and inclusivity. The Committee has carried out a detailed analysis of the skills and experience
for each director, resulting in a clear map to fulfil the Director Diversity policy approved by
the Board of Director in December 2023.
Director Evaluation: The Committee has conducted thorough evaluations of individual
directors,
independence, and contributions to board
deliberations. These evaluations have helped identify areas for improvement and ensure the
board remains dynamic and engaged.
including their performance,
Succession Planning: Succession planning continues to be a focal point for the Committee,
with efforts directed towards identifying and developing potential candidates for board and
executive positions. We believe that robust succession planning is essential for the long-
term sustainability and continuity of the company's leadership.
Governance Policies: We have reviewed and updated various governance policies and
procedures to align them with evolving regulatory requirements and best practices. These
efforts are aimed at enhancing transparency, accountability, and ethical conduct across the
organization.
In conclusion, I would like to express my gratitude to the members of the Nomination and
Governance Committee for their dedication and commitment throughout the year. I would also like
to extend my appreciation to the board of directors, management team, and shareholders for their
continued support and collaboration.
The Role of the Nomination and Governance Committee
The Company’s Nomination and Governance Committee is, among other things, responsible for
reviewing the performance of the Directors, the committees and the executives.
The Nomination and Governance Committee makes recommendations for Board review. The
Committee shall have such powers and duties as may be conferred on it from time to time by
resolution of the Board. In addition, the Committee shall have the following specific functions and
102 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
responsibilities:
At least annually, and prior to the nomination or appointment of potential candidates, the
Committee shall review the competencies, skills, experience and areas of expertise of the
Board on an individual and collective basis. Based on this review, the Committee shall
identify areas where additional competency, skill, experience or expertise would be of benefit
to Atalaya Mining.
As required, the Committee shall identify and, if advisable, recommend to the Board for
approval, potential candidates for nomination or appointment to the Board having regard
to the results of the review referred to above. The Board should consider whether or not each
new nominee can devote sufficient time and resources to his or her duties as a Committee
member.
The Committee shall periodically assess the contribution and effectiveness of the Board, the
Directors, each Board Committee and the Chair of the Board against their respective
mandate, charters or other criteria the Committee considers appropriate. The Committee
shall report its findings to the Board and, based on those findings, recommend any action
plans that the Committee considers appropriate.
The Committee shall oversee the development of any orientation programmes for new
Directors. The Committee shall periodically review any such programme and approve
changes it considers appropriate.
The Committee shall periodically review Atalaya Mining's corporate governance practices
and policies. As part of its review, the Committee shall take regulatory requirements and best
practices, including the QCA guidelines, into account. The Committee shall report the results
of its review, including any recommended changes to existing practices, to the Board in a
timely manner.
The Committee will also establish and maintain a complaints programme to facilitate (1) the
receipt, retention and treatment of complaints received by the Company regarding its
Accounting Standards, violations of the Code of Business Conduct and Ethics and the Anti-
Bribery and Corruption Policy, breaches in compliance with applicable laws including
relating to health and safety or the environment and (2) the confidential, anonymous
submission by employees of the Company of any complaints made in these areas.
The Committee shall review, in conjunction with management, the corporate governance
disclosure for Atalaya Mining's annual report, notice of shareholders meetings and other
regulatory and shareholder reports.
The Committee shall periodically evaluate the performance of the Chief Executive Officer in
relation to his or her performance goals. The Chief Executive Officer evaluation shall be
conducted in conjunction with the Chair of the Board and shall be presented to the Board
for its review.
The Committee shall, as required, review and, if advisable, approve and recommend for
Board approval, the appointment, compensation and other terms of employment of all
senior management reporting directly to the CEO.
The Committee shall periodically review and, if advisable, approve and recommend for Board
approval, a succession and emergency preparedness plan for all senior management
reporting directly to the CEO. Upon the vacancy of such senior management personnel, the
Committee may make a replacement recommendation for Board approval based on the
succession plan.
The Nomination and Governance Committee comprises three members all of whom are non-
executive and Independent. The current membership of the committee is Mr. N. Gregson (Chair), Mrs.
K. Harcourt and Mr. S. Scott. The profiles of the Committee members are included on pages 88 to 93.
Corporate Governance
The Directors comply with AIM regulations and Cyprus Company Law. The Board remains
accountable to the Company's shareholders for good corporate governance.
2023 Review
The Committee met five times during 2023, covering a number of issues.
103 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Atalaya keeps the balance and membership of its Board under review and no new appointments
were made during the year. All Directors were re-elected at the last Annual General Meeting during
2023.
Neil Gregson
Chair of Corporate Governance, Nominating and Compensation Committee
18 March 2024
104 | Atalaya Mining plc 2023 Annual Report
Physical Risks Committee Report
Corporate Governance
Membership
Stephen Scott (Chair)
Neil Gregson
Roger Davey
Jesus Fernandez
Attendance
3/3
3/3
3/3
0/3
The Role of the Physical Risk Committee
The function of the Physical Risk Committee is oversight. It is recognised that members of the
Physical Risk Committee who are not full-time employees of the Company and generally do not
represent themselves as experts in the fields of safety, health, environment, security or risk
management. As such, it is not the responsibility of the Physical Risk Committee personally to
conduct safety, health, environment, security or risk reviews.
Committee members are entitled to rely on Atalaya Mining Management with respect to matters
within their responsibility and on external professionals on matters within their areas of expertise.
Committee members may assume the accuracy of information provided by such persons, so long as
the members are not aware of any reasonable grounds upon which such reliance or assumption may
not be appropriate.
Management is responsible for implementing, managing and maintaining appropriate enterprise-
wide safety, health, environment, security and risk management systems, policies and procedures,
reporting protocols and internal controls that are designed to ensure compliance with applicable
laws and regulations. Management is also responsible for the preparation, presentation and integrity
of the information provided to the Committee.
The Physical Risk Committee comprises four members, three of whom are non-executive and
Independent. The current membership of the committee is Mr. S. Scott (Chair), Mr. R. Davey, Mr. J.
Fernandez and Mr. N. Gregson. The profiles of the Committee members are included on pages 88 to
93.
Membership
The members of the Committee shall be appointed by the Board from amongst the directors of the
Company in consultation with the Chair of the Committee and shall consist of not less than three
members. The members of the Committee shall consist of at least of two independent non-executive
directors of the Company.
Duties
The Chair of the Committee should carry out the duties for the parent company, major subsidiary
undertakings and the group as a whole, as appropriate.
Duties of the Committee are:
chairing all meetings of the Committee in a manner that promotes meaningful discussion.
ensuring adherence to the Committee's Terms of Reference and that the adequacy of the
Committee's Terms of Reference is reviewed annually.
providing leadership to the Committee to enhance the Physical Risk's effectiveness
managing the Committee relevant matters
Committee members are entitled to rely on Atalaya Mining Management with respect to
matters within their responsibility and on external professionals on matters within their
areas of expertise.
Committee members may assume the accuracy of information provided by such persons,
so long as the members are not aware of any reasonable grounds upon which such reliance
or assumption may not be appropriate.
105 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
2023 Review
The Physical Risk Committee had three meetings in the year which covered a number of issues. Two
of the three meetings were in-person at Proyecto Riotinto, where the Committee had the
opportunity to visit and discuss all areas of the mine with special attention to areas assessed as high
risk.
Meetings on site have the purpose to cover health and safety issues and risk areas on site. Health
and safety are a key priority to ensure a safe working environment for both employees and
contractors and the Company is focused on ensuring it meets all regulations and assesses risk factors
on a regular basis.
I would like to thank the safety department personnel, in particular, for their contributions and
suggestions to continually make our operations safer.
Stephen Scott
Chair of Physical Risks Committee
18 March 2024
106 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Sustainability Committee Report
Members
Kate Harcourt (Chair)
Hussein Barma
Roger Davey
The Role of the SC
Attendance
4/4
4/4
4/4
The Sustainability Committee is responsible of strategy and activities related to sustainable
development and social responsibility, in particular:
review, monitor and assist the Board in defining the Group’s strategy relating to
Environmental, Sustainability and Social matters and in setting relevant KPIs;
develop and review regularly the policies, programmes, practices, targets and initiatives of
the Group relating to Sustainability matters ensuring they remain effective and up to date
and consistent with good international industry practice (“GIIP");
provide oversight of the Group’s management of Sustainability matters and compliance
with relevant current and forthcoming legal and regulatory requirements, legislation and
policies as the relate to Environmental, Sustainability and Social, including, but not limited
to applicable rules and principles of corporate governance relating to Environmental,
Sustainability and Social aspects questions regarding climate change, tailings management,
water management, human rights and other applicable industry standards;
report on these matters to the Board and, where appropriate, make recommendations to
the Board;
to review public reporting relating to the Company’s safety and sustainability performance
to provide oversight of the Company’s sustainability performance presented in any
Sustainability Report prepared by the Company;
report as required to the shareholders of the Company on the sustainability activities and
remit of the Committee;
Responsible for oversight of sustainability risks of the Company.
Membership
The members of the Committee shall be appointed by the Board from amongst the directors of the
Company in consultation with the Chair of the Committee and shall consist of not less than three
members. The members of the Committee shall consist of at least of two independent non-executive
directors of the Company.
The Committee Chair shall be a non-executive director who shall be appointed by the Board and shall
not be the Chair of the Board.
2023 Review
The Sustainability Committee had four meetings in the year which covered a number of issues. These
included the completion of Sustainability Roadmap for a period of three years to develop the external
reporting of Atalaya and align sustainability disclosure to peers.
Kate Harcourt
Chair of the Sustainability Committee
18 March 2024
107 | Atalaya Mining plc 2023 Annual Report
Remuneration Committee Report
Corporate Governance
Attendance
Members
Neil Gregson (Chair)
Kate Harcourt
Stephen Scott
Dear shareholder,
Attendance
8/8
8/8
8/8
I am pleased to present the report of the Remuneration Committee in my capacity as Chair of the
Remuneration Committee.
As an AIM-quoted company during 2023, the information is disclosed to fulfil the requirements of
AIM Rule 19. During 2023, the Company applied the UK QCA Corporate Governance Code. As a Cyprus
incorporated company admitted to AIM, Atalaya is not required to comply with the Large and
Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013. The
information is unaudited except where stated. Following its proposed re-domicile from Cyprus to
Spain, Atalaya Mining will become a Spanish company and will not be subject to the UK Directors’
Remuneration Regulations. On completion of the move to the UK Premium List, the Company will
adopt the UK Corporate Governance Code.
During the second half of 2023, the Committee carried out a review of the Company’s Executive
remuneration arrangements including commissioning a benchmarking report, to ensure these
arrangements remain effective, fair and appropriate, reflecting the company’s size and profile as a
significant independent mining company and supporting the Company’s strategy and growth. The
review included consideration of how its existing arrangements align with UK governance guidelines
in the context of the Company’s proposed move to the premium listing segment of the Official List,
and the proposed adoption of the UK FRC Corporate Governance Code.
Further to this review and the proposed move to the Premium List, the Company is making a number
of changes to its executive remuneration arrangements as summarised later in this letter and
detailed in later sections of this report. Further, we have made significant changes to our
Remuneration Committee report to bring its format into line with market practice for UK listed
companies and expand disclosures. This report comprises: (1) this introductory letter (2) a policy
section detailing our remuneration policy as it will be operated from 2024 and (3) our annual report
on remuneration detailing remuneration and decisions made during 2023.
The Company has one Executive Director, its CEO, Alberto Lavandeira. As such, this report directly
covers his remuneration together with information on the remuneration of the Non-Executive
Directors.
Role of the Remuneration Committee
The Company’s Remuneration Committee is responsible for reviewing the performance of the
executives, setting their remuneration, determining the payment of bonuses, considering the grant
of options under any share option scheme and, in particular, the price per share and the application
of performance standards which may apply to any such grant. Remuneration arrangements are
aligned to support the implementation of the Company strategy and effective risk management for
the medium to long-term. The Committee ensures that this is done and considers the views of
shareholders. The Committee makes recommendations for Board review. The Committee shall have
108 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
such powers and duties as may be conferred on it from time to time by resolution of the Board.
Membership
The Remuneration Committee comprises Neil Gregson (Chair of the Committee), Kate Harcourt and
Stephen Scott, all being independent Non-Executive Directors. The profiles of the Committee
members are included on pages 88 to 93.
Performance in year
As set out earlier in this Annual Report, the Company made significant progress during 2023. The
Board has reviewed details of term of reference for each committee and all policies.
Also during the year, the Company recovered its margin from the inflation pressure during prior year
2022.
Decisions in year
At the start of the year, the salary of our CEO was increased by 3.0% to €488k.
During 2024, the Committee will review the delivery of the Company’s objectives to determine the
CEO’s bonus, which is expected to be within the agreed range respect of his 2023 salary.
In line with its existing long term incentive policy, the company awarded 400,000 options with an
exercise price of 327p to its CEO in May 2023.
The Committee believes the policy operated as intended in terms of company performance and
quantum during 2023.
Remuneration review and changes for 2024
The Remuneration Committee carried out a review of its executive remuneration arrangements
during 2023, focussing on the remuneration of its three senior executives including its CEO. The key
decisions taken in the light of this review are set out below.
The changes to remuneration are intended to strengthen retention, incentivisation and support the
Company’s next phase of growth.
The company intends to put in place private health insurance and a company pension for its
executives during 2024.
The company will develop the operation of its executive annual bonus scheme from 2024 including
setting an annual bonus maximum for our CEO at 100% of salary and applying malus and clawback
provisions. Information on the workings of bonus is set out in the policy section below and a summary
of the criteria to be applied for 2024 is set out toward the end of this report.
The company will make a significant change to its executive long term incentive structure. To date,
the company has made annual awards of market value options, with the number of awards fixed
over recent years, which vest in portions of one third immediately on grant and on the first and
second anniversaries of grant. Commencing 2024, the company intends to make annual awards of
performance shares with a value at a specified percentage of salary subject to three-year
performance and vesting periods. Information on the workings of the new awards is set out in the
policy section below and a summary of the Committee’s intentions for 2024 is set out towards the
end of this document.
The company has implemented a shareholding guideline, being an expectation that Executive
Directors build up and maintain a shareholding in the Company with a value of at least 100% of their
salary, as reflected in the policy table below. The shareholding of our CEO is currently well above this
guideline.
109 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
The Company appointed an external advisor to assist the Committee in carrying out this review. The
external advisor is a member of the Remuneration Consultants Group and, as such, voluntarily
adheres to its Code of Conduct. The Committee considers the advice that it receives from the external
advisor to be independent.
AGM
The Company’s 2020 Long Term Incentive Plan was approved at the 2020 Annual General Meeting.
Under Cyprus law, Atalaya must seek authority from shareholders to make share awards each year.
The Company put a resolution to authorize the grant of awards over 7.0m shares (approximately 5%
of the issued share capital) to its 2023 AGM.
This resolution was supported by 82% of votes cast (73.3m shares), with 18% of votes against (16.6m)
and 5.0m votes withheld. The Committee believes the level of adverse voting was associated with
one proxy adviser report which cited low disclosures on performance and vesting conditions
attached to historic awards. To address this, this remuneration report contains detail on these
conditions for existing and proposed new long term incentive awards.
The Company confirms that the 2020 LTIP contains the conventional dilution limit for UK quoted
companies that dilution arising from new shares issued pursuant to all employee share awards
should not exceed 10% of the outstanding shares over any ten-year period.
The Company has the intention to put, in addition to a resolution to approve the LTIP awards for 2024,
a resolution to approve this remuneration report to its 2024 AGM.
The Remuneration Committee welcomes all shareholder feedback on remuneration and will
continue with its approach of shareholder consultation where significant changes are considered. No
significant changes are proposed for 2024.
Neil Gregson
Chair of the Remuneration Committee
18 March 2024
110 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Remuneration Policy
The Group’s policy on Directors’ remuneration has been set with the objective of attracting,
motivating and retaining high calibre Directors, in a manner that is consistent with best practice and
aligned with the interests of the Group’s shareholders. The policy on Directors’ remuneration is that
the overall remuneration package should be sufficiently competitive to attract and retain individuals
of a quality capable of achieving the Group’s objectives. Remuneration policy is designed such that
individuals are remunerated on a basis that is appropriate to their position, experience and value to
the Company.
The policy described below reflects the outcome of the remuneration review carried out during 2023
and to be applied from 1 January 2024.
Element
Base Salary
Other Benefits
Annual bonus
Link to
remuneration
policy/strategy
Core element of
remuneration.
To set at a level
which is sufficiently
competitive to
recruit and retain
individuals of the
appropriate calibre
and experience.
To help recruit and
retain high
performing
Executive Directors.
To provide market
competitive
benefits.
To incentivise the
achievement of a
range of short-term
performance
targets that are key
to the success of
the Company.
To align the
interests of the
Executives and
shareholders to the
annual targets.
Long-term
To support
Operation
Maximum
opportunity
Performance metric
There is no
prescribed annual
maximum cost.
There is no
prescribed
maximum annual
base salary or salary
increase.
The Committee is
guided by the
general increase for
the broader
employee
population, but has
discretion to decide
a lower or a higher
increase.
Basic salary is
reviewed annually as
at 1 January with
reference to
company
performance; the
performance of the
individual Executive
Director; the
individual Executive
Director’s experience
and responsibilities;
and pay and
conditions
throughout the
Company.
To date, there have
been no benefits.
The Company
intends to introduce
private medical
insurance and
pension during 2024.
Parameters,
performance criteria,
weightings and
targets are set at the
start of each year.
Bonuses can be paid
to Executives to
support and reflect
the achievement of
annual objectives.
Payments are made
in cash following
completion of the
year subject to the
Committee’s
assessment of
performance against
targets and other
matters it deems
relevant.
Annual bonus
awards are subject
to malus and
clawback provisions.
The CEO is eligible to The policy normal
From 2024, the
maximum bonus
opportunity for the
CEO is 100%.
The Committee
considers individual
and Company
performance when
setting base salary.
n.a.
Bonus awards are
based on annual
performance against
stretching
operational,
financial, HSE,
strategic and
personal targets.
The Committee
has the discretion to
vary targets and
weightings from
year to year.
Performance
111 | Atalaya Mining plc 2023 Annual Report
Element
incentive
awards
Shareholding
requirement
Non-executive
Director
remuneration
Link to
remuneration
policy/strategy
retention, long-term
performance and
increase alignment
between the
executives and
shareholders.
The Company
intends to make
awards under this
structure annually.
Encourages
Executive
Directors to build a
meaningful
shareholding
to further
align interests with
the company and
shareholders.
To attract and retain
high calibre Non-
Executives with the
necessary
experience.
To provide fees
appropriate to time
commitments and
responsibilities of
each role.
Corporate Governance
Operation
Maximum
opportunity
Performance metric
maximum annual
award for the CEO
will be establish as a
% of base salary.
conditions can
include financial,
operational,
shareholder return,
HSE and strategic
targets.
Performance
conditions are set by
the Committee at
the time of award.
Target type,
weighting and
pitching may be
varied from year to
year.
Value at 100% of
salary for the CEO.
n.a.
n.a.
Fee levels reflect
market conditions
and are reviewed
annually on 1
January each year.
receive awards
under the Long-
Term Incentive Plan
at the discretion of
the Committee.
Awards are granted
as nil or nominal
cost options or
conditional awards
which vest after
three years subject
to the meeting of
objective three year
performance
conditions specified
at award.
Awards have a three-
year vesting period.
LTIP awards will be
subject to malus and
clawback provisions.
Each Executive
Director is expected
to
build up a specified
shareholding in
Atalaya over five
years from
appointment and
maintain this
holding.
Non-Executive
Directors are paid a
basic fee. An
additional fee is paid
to committee chairs
and committee
members to reflect
the additional time
and responsibility.
Service contracts
Mr. Lavandeira entered into a contract with the Company dated 25 March 2014. Under the contract,
the notice period the Company to the Executive is 6 months and the notice period from the Executive
to the Company is 3 months.
The contract also includes a change of control provision whereby in the event that there a change of
control and within 12 months after the event (i) the contract is terminated by the Company; or (ii) the
employee terminates his contract with at least three months’ notice due to a pre-agreed good
reason, the executive will receive the equivalent to 24 months’ base salary less any payment made in
lieu of notice and any legal severance payment.
Non-Executive Directors have entered into letters of appointment with the Group, for an initial three-
year period, thereafter renewable on the agreement of both the Company and the Non-Executive
Director. The notice period under the letters of appointment is three months.
112 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Non-Executive Directors (1) Role as at 31 December 2023
R. Davey(2)
H. Barma
Chair of Board of Director and
Independent Director
Chair of the Audit Committee and
Independent director
Date of
Appointment
Notice period
23 April 2010
Three months
9 September
2015
Three months
J. Fernández
Non-Independent Director
23 June 2015
Three months
Neil Gregson
S. Scott
K. Harcourt
Chair of the Nomination and
Governance Committee, Chair of
the Remuneration Committee and
Senior Independent Director
Chair of the Physical Risk
Committee and Independent
Director
Chair of the Sustainability
Committee and Independent
Director
10 February 2021
Three months
9 September
2015
Three months
19 May 2022
Three months
(1)
(2)
Excludes Alberto Lavandeira.
Roger Davey is not considered independent as he has served on the Board for more than nine years from the
date of his first appointment.
Policy on recruitment
When hiring a new Executive Director, the Committee will consider the overall remuneration
package by reference to the remuneration policy set out in this report.
Annual bonus provisions – leavers, malus and clawback, change in control provisions
The bonus will generally lapse in full if the employee leaves before the date bonus is paid, although
partial exceptions for good leavers may be made at the discretion of the Remuneration Committee.
Annual bonus is subject to malus and clawback provisions.
LTIP provisions – leavers, malus and clawback, change in control provisions
Awards are governed by the rules of the LTIP scheme at the time of award. Unless individuals are
deemed good leavers, awards will lapse on cession of employment.
External appointments
The Company recognises the proposition that Executive Directors could become fee earning non-
executive directors of other companies and that such appointment can broaden their knowledge
and experience to the benefit of the Company. Executive Directors are permitted to retain fees
earned from such roles. In their contracts of employment, the Executive Directors have covenants
not to compete during their employment (including directorships) unless the Board consents in
writing.
Consideration of employment conditions elsewhere in the Company in developing policy
In setting the remuneration policy for Directors, the pay and conditions of other Group employees
are taken into account. The Committee is provided with data on the remuneration structure for
senior members of staff below the Executive Director level and uses this information to ensure
consistency of approach throughout the Group. The Committee does not directly engage with the
workforce on executive remuneration but, the workforce has the opportunity to raise any issues
(including those on executive remuneration) in the employee engagement initiatives.
Consideration of shareholder views
Shareholders views are considered when evaluating and setting remuneration strategy.
Opportunities to discuss the remuneration strategy are available during investor calls as well as by
voting on the report at the AGM.
113 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Consideration of stakeholder experience
Ongoing engagement with our stakeholders remains a priority as detailed elsewhere in this report.
When formulating the Company’s strategy, the Directors consider the longer-term and broader
consequences and implications of its business on key stakeholders. The Committee considers views
expressed by stakeholders and the experience of stakeholders when evaluating and setting
remuneration strategies and taking decisions on remuneration.
114 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Annual Report on Remuneration
This section of the remuneration report contains details of how the Company’s remuneration policy
for Directors started to be implemented during the financial year ended 31 December 2023.
2023 Summary of Directors’ total remuneration (audited) with previous year comparison
€’000
Salary /
fees
Benefit
s
Bonus
**
LTIP*
Total
Salary /
fees
Benefi
ts
Bonus
**
LTIP*
Total
2023
2022
Executive Directors
A. Lavandeira
481
6
322
190
1,000
448
322
426
1,271
Non-Executive Directors
R.Davey
H.Barma
J. Fernandez
H.Liu
K. Harcourt
S.Scott***
N.Gregson
139
94
74
-
93
98
107
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
139
94
74
-
93
98
107
143
96
72
18
42
91
78
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
143
96
72
18
42
91
78
(*) The amount relates to the non-cash expense recognised in accordance with IFRS 2 Share-based
payments. On 22 May 2023, the Company granted 400,000 share options to the Executive Director
Alberto Lavandeira (see Note 30 to the financial statements) (2022: 400,000 share options).
(**) These amounts related to the performance bonus for 2022 approved by the Board of Directors of
the Company during 2023. Director’s bonus relates to the amount approved for the CEO as an
executive director and key management bonus relates to the amount approved for other key
management personnel which are not directors of Atalaya Mining plc.
(***) Includes €5k (2022: €4k) paid to the Canadian Pension Plan.
Salary
From 1 January 2023, the salary of the CEO was €481k
Bonus
The bonus maximum for the Chief Executive Officer will be 100% of salary. Annual bonus for 2023 will
be subject to relative total shareholder return, company budget, individual targets and Board
discretion.
LTIP during 2023
The CEO was awarded 400,000 options during the year at an exercise price of 327p per ordinary share,
being the last mid-market closing price on the grant date, and vest in three equal tranches, one third
on grant and the balance equally on the first and second anniversary of the grant date.
115 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Share Options and Long-Term Incentive Awards
At 31 December 2023, the LTIP awards that had been awarded to each Director were as follows:
Date of
award
Interest
at 31 Dec
2022
A. Lavandeira
29/5/19
600,000
30/6/20 400,000
400,000
24/6/21
22/6/22
400,000
22/5/23
Granted
in year
Exercis
e Price
Expire
date
Vested in
year
201.5p
147.5p
309.0p
357.5p
400,000 327.0p
28/5/24
29/6/30
23/6/31
30/6/27
21/5/28
133,333
133,333
133,333
Total
vested at
31 Dec
2023
600,000
400,000
400,000
266,666
133,333
Exercis
ed in
year
Lapsed
in year
Outstandin
g at 31 Dec
20223
600,000
400,000
400,000
400,000
400,000
2,200,000
Options expire five/ten years after grant date. Awards granted since 2021 have vested one third on
grant, one third on the first anniversary of grant and one third on the second anniversary of grant.
Non-Executive Director Remuneration
Non-Executive fees effective during 2023 are set out below.
Role
Chair fee
Base NED fee
Audit Chair
Remuneration and other Chairs
Committee member
Directors’ Share Interests
2023 fees
(£’000)
108.0
60.0
17.0
12.0
4.5
Directors’ share interests at 31 December 2023 are set out below:
Number of
beneficially owned
shares at 31
December 2023
No. of existing
ordinary shares at
31 December 2023
430,000
139,879,209
30,886,212*
139,879,209
5,000
139,879,209
Executive
A. Lavandeira
Non-Executive
J. Fernandez(1)
Non-Executive
N. Gregson
(1) Includes Urion Holdings (Malta) Ltd
(*)includes 65,000 shares owned by Jesus Fernandez
The interest percentage represents the percentage of voting rights.
116 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Shareholder Return
The following table shows the Group’s actual spend on pay for all Group employees relative to
dividends and pre-tax profit.
Total employee costs
EBITDA
Operating profit
Capital expenditure
Dividends paid
2023
€’ m
25.8
73.1
35.3
59.8
11.5
2022
€’ m
24.6
55.3
21.2
53.8
5.1
Change
%
5%
32%
67%
11%
125%
Senior Management of remuneration for 2024
Following the review performed by the Committee to the Senior Management it is expected the
Board will approve the recommendation by the Committee from the effective date of 1 January 2024
as follows:
Senior Management
Salaries
Bonus
Salaries
A. Lavandeira
Adjust to inflation
E. Delgado
C. Sánchez
Adjust to inflation
Increase to align
with peers
Max 100% of
salary
Increase the % of
salary
Increase the % of
salary
Increase to align
with peers
Increase to align
with peers
Increase to align
with peers
Annual General Meeting and Shareholder Feedback
The Committee welcomes feedback from shareholders on its remuneration.
Approval
This report was approved by the Board of Directors on 18 March 2023 and signed on its behalf by:
Neil Gregson
Chair of Remuneration Committee
18 March 2024
117 | Atalaya Mining plc 2023 Annual Report
Corporate Governance
Statement of Directors’ Responsibilities
The Directors are responsible for preparing the Annual Report and the Group and Parent Company
financial statements in accordance with applicable Cypriot law and regulations.
The Directors are required to prepare financial statements for each financial year which present a
true and fair view of the financial position of the Company and of the Group and the financial
performance and cash flows of the Company and of the Group for that period. The Directors have
elected to prepare the Group and Parent Company financial statements in accordance with the
International Financial Reporting Standards (“IFRS”). IFRS compromise the standards issued by the
International Accounting Standards Board.
In preparing those financial statements, the Directors are required to:
Select suitable accounting policies: ‘Accounting Policies, Changes in Accounting Estimates
and Errors’ and then apply them consistently;
Make judgements and accounting estimates that are reasonable and prudent;
Present information, including accounting policies, in a manner that provides relevant,
reliable, comparable and understandable information;
Provide additional disclosures when compliance with the specific requirements in IFRSs is
insufficient to enable users to understand the impact of particular transactions, other events
and conditions on the Company and of the Group’s financial position and financial
performance; and
Prepare the accounts on a going concern basis.
The Directors are responsible for keeping adequate accounting records that are sufficient to show
and explain the Company’s and Group’s transactions and which disclose with reasonable accuracy
at any time the financial position of the Company and of the Group and enable them to ensure that
the financial statements comply with the Cypriot Company’s law and regulations. They are also
responsible for safeguarding the assets of the Company and the Group and hence for taking
reasonable steps for the prevention and detection of fraud and other irregularities. Under applicable
Cypriot law and regulations, the Directors are responsible for the preparation of a Management and
Strategic Report, Directors’ Remuneration Report and Corporate Governance Statement that comply
with that law and regulations. In addition, the Directors are responsible for the maintenance and
integrity of the corporate and financial information included on the Company’s website as per AIM
rules. Legislation in the Cypriot governing the preparation and dissemination of financial statements
may differ from legislation in other jurisdictions.
Responsibility statement of the Directors in respect of the Annual Report and Accounts
Each of the Directors whose names are listed on pages 164 to 167 confirm that to the best of their
knowledge:
a)
b)
financial statements, prepared
in accordance with UK-adopted
the consolidated
international accounting standards give a true and fair view of the assets, liabilities, financial
position and profit and loss of the Company and the undertakings included in the
consolidation taken as a whole; and
the Annual Report (including the Management and Strategic Report, the Corporate
Governance Report and the Remuneration Report) includes a fair review of the development
and performance of the business, and the position of the Company and the undertakings
included in the consolidation taken as a whole, together with a description of the principal
risks and uncertainties that they face.
For and on behalf of the Board.
Neil Gregson
Senior Independent Director
18 March 2024
118 | Atalaya Mining plc 2023 Annual Report
Ernst & Young Cyprus Ltd
Jean Nouvel Tower
6 Stasinou Avenue
1060 Nicosia
P.O. Box 21656
1511 Nicosia, Cyprus
Tel: +357 22209999
Fax: +357 22209998
ey.com
Independent Auditor’s Report
To the Members of Atalaya Mining Plc
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying consolidated and parent company financial statements of
Atalaya Mining Plc (the “Company”), and its subsidiaries (the “Group”), which comprise the
consolidated and parent company statements of financial position as at 31 December 2023,
and the consolidated and parent company statements of comprehensive income, changes in
equity and cash flows for the year then ended, and notes to the consolidated and parent
company financial statements, including material accounting policy information.
In our opinion, the accompanying consolidated and parent company financial statements give
a true and fair view of the consolidated and parent company financial position as at 31
December 2023, and of the consolidated and parent company financial performance and cash
flows of the Group and the Company for the year then ended in accordance with International
Financial Reporting Standards (IFRSs) as issued by the IASB and also as adopted by the
European Union and the requirements of the Cyprus Companies Law, Cap. 113.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Consolidated and Parent Company Financial Statements section of our report.
We are independent of the Group and the Company in accordance with the International Ethics
Standards Board for Accountants’ International Code of Ethics for Professional Accountants
(including International Independence Standards) (IESBA Code) together with the ethical
requirements that are relevant to our audit of the consolidated and parent company financial
statements in Cyprus, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the IESBA Code. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the consolidated and parent company financial statements of the
current period. These matters were addressed in the context of our audit of the consolidated
and parent company financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters. For each matter below, our description
of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of
the Consolidated and Parent Company Financial Statements section of our report, including in
relation to these matters. Accordingly, our audit included the performance of procedures
designed to respond to our assessment of the risks of material misstatement of the consolidated
and parent company financial statements. The results of our audit procedures, including the
procedures performed to address the matters below, provide the basis for our audit opinion on
the accompanying consolidated and parent company financial statements.
Key Audit Matter
Revenue recognition
During the year ended 31 December 2023 the Group
recognised revenue from operations of €340.3m
(Notes 2.23, 4, 5 and 30.3).
The significant value of revenue transactions (including
transactions with related parties) and complex terms
under which title and control pass to the customer
increases the risk of cut-off errors. We have also
identified risks in relation to the calculation of the
adjustment for provisional pricing.
In particular:
Cut-off: the complexity of terms that define
►
when control is transferred to the customer, as well as
the high value of transactions, give rise to the risk that
revenue is not recognized in the correct period.
Measurement: at each reporting period there
►
are open invoices that are provisionally priced using
the concentrate sold and the forward pricing of those
sales. Estimation is used in the valuation of these
transactions and the income statement impact of the
mark to market movement is recorded as a fair value
gain/loss relating to provisional pricing, disclosed
separately in revenue included in the statement of
comprehensive income.
Due to the significance of revenue for the Group
financial statements, which includes related party
transactions, and since the calculations are based on
to potential
estimations which are susceptible
manipulation, we consider this to be a key audit matter.
Our response to the Key Audit Matter
Our approach
procedures:
focused on
the
following
► We obtained an understanding of the key
controls around
the revenue recognition
process in order to assess whether it is
designed to prevent, detect or correct material
misstatements
revenue
the
figures;
reported
in
► We analysed the terms and conditions of the
sales contracts and evaluated whether they
have been accounted for in line with the
Group's revenue recognition policy. We have
reviewed revenue recognition policies for
compliance with the requirements of IFRS 15
Revenue
from contracts with customers
(“IFRS 15”);
► For a
the main
revenue
risk-based sample of
transactions we performed test of details
including: agreeing
to
supporting evidence (such as provisional and
final invoices, shipment confirmations, market
prices, agreements and bank statements),
recalculating
invoiced and
the amounts
recorded as revenue.
inputs
► We assessed the methodology adopted by
management to identify the provisional pricing
terms and the determination of estimates of
metal in concentrate sold to customers;
► For a risk-based sample of open sales at year
end where provisional pricing was applied, we
compared to external sources the inputs used
the provisional price
and
adjustment
it was
correctly measured;
to evaluate whether
recalculated
► For a risk-based sample of transactions near
the year-end we performed cut off testing over
the revenue recognition in the correct period,
comparing the date of the revenue recognition
to supporting evidence such as shipment
confirmations and considering the appropriate
application of terms of sale arrangements;
► We considered and analysed the nature of
any significant credits raised post year-end to
transactions were
evaluate
recorded at the correct value in the relevant
period; and
that revenue
► We assessed whether
the consolidated
financial statements include disclosures in
respect of revenue, provisional pricing and
related party disclosures in accordance with
the applicable IFRS (Notes 2.23, 4, 5 and
30.3).
Other information
The Board of Directors is responsible for the other information. The other information comprises
the Management and strategic report, Sustainability approach, Corporate Governance and
Additional information, but does not include the consolidated and parent company financial
statements and our auditor’s report thereon.
Our opinion on the consolidated and parent company financial statements does not cover the other
information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated and parent company financial statements, our
responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the consolidated and parent company financial
statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to
report in this regard.
Responsibilities of the Board of Directors and those charged with governance for the
Consolidated and Parent Company Financial Statements
The Board of Directors is responsible for the preparation of consolidated and parent company
financial statements that give a true and fair view in accordance with International Financial
Reporting Standards as issued by the IASB and also as adopted by the European Union and the
requirements of the Cyprus Companies Law, Cap. 113, and for such internal control as the Board
of Directors determines is necessary to enable the preparation of consolidated and parent
company financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the consolidated and parent company financial statements, the Board of Directors
is responsible for assessing the Group’s and the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Board of Directors either intends to liquidate the Group or
Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s and the Company’s
financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated and Parent Company
Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated and parent
company financial statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
ISAs will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated and parent company financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the consolidated and parent
company financial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s and Company’s internal control.
•
•
•
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the Board of Directors.
Conclude on the appropriateness of the Board of Directors’ use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Group’s and the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in
the consolidated and parent company financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Group and the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated and parent
company financial statements, including the disclosures, and whether the consolidated and
parent company financial statements represent the underlying transactions and events in a
manner that achieves a true and fair view.
• Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Group to express an opinion on the consolidated
financial statements. We are responsible for the direction, supervision and performance of
the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the consolidated and parent company
financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal Requirements
Pursuant to the additional requirements of the Auditors Law of 2017, we report the following:
•
•
In our opinion, based on the work undertaken in the course of our audit, the Management
and strategic report has been prepared in accordance with the requirements of the Cyprus
Companies Law, Cap. 113, with reference to the Management report requirements, and the
information given is consistent with the consolidated and parent company financial
statements.
In light of the knowledge and understanding of the Group and its environment obtained in
the course of the audit, we are required to report if we have identified material misstatements
in the management report. We have nothing to report in this respect.
Other Matter
This report, including the opinion, has been prepared for and only for the Company’s members
as a body in accordance with Section 69 of the Auditors Law of 2017 and for no other purpose.
We do not, in giving this opinion, accept or assume responsibility for any other purpose or to
any other person to whose knowledge this report may come to.
The engagement partner on the audit resulting in this independent auditor’s report is Katerina
Mina.
Katerina Mina
Certified Public Accountant and Registered Auditor
for and on behalf of
Ernst & Young Cyprus Limited
Certified Public Accountants and Registered Auditors
Nicosia
18 March 2024
Consolidated and Company Statements of
Comprehensive Income
for the year ended 31 December 2023
(Euro 000’s)
Revenue
The
Group
2023
The
Company
2023
The
Group
2022
The
Company
2022
Note
5
340,346
5,012
361,846
57,756
Operating costs and mine site administrative expenses
(246,630)
Mine site depreciation, amortisation and impairment
13,14
(37,800)
-
-
Gross profit
Administration and other expenses
Share based benefits
Exploration expenses
Care and maintenance expenditure
Other income
Operating profit
Net foreign exchange (loss)/gain
Interest income from financial assets at fair value through
profit and loss
Interest income from financial assets at amortised cost
Finance costs
Profit before tax
Tax
Profit for the year
Profit for the year attributable to:
- Owners of the parent
- Non-controlling interests
23
4
8
8
9
10
55,916
5,012
(12,741)
(5,822)
(661)
(6,467)
(2,384)
1,637
35,300
(1,278)
-
-
-
-
-
(810)
(390)
-
5,393
14,604
(3,322)
36,093
570
36,663
-
13,404
(579)
12,825
(288,275)
(34,119)
39,452
(9,954)
(1,279)
(4,257)
(3,053)
286
21,195
11,546
-
624
(1,045)
32,320
(1,394)
30,926
38,769
(2,106)
36,663
12,825
-
12,825
33,155
(2,229)
30,926
-
-
57,756
(3,601)
-
-
-
286
54,441
3,439
9,157
3,779
-
70,816
(617)
70,199
70,199
-
70,199
Earnings per share from operations attributable to
ordinary equity holders of the parent during the year:
Basic earnings per share (EUR cents per share)
Diluted earnings per share (EUR cents per share)
11
11
27.7
26.9
-
-
23.7
23.2
-
-
Profit for the year
Other comprehensive income:
36,663
12,825
30,926
70,199
-
-
-
-
Other comprehensive income that will not be reclassified
to profit or loss in subsequent periods (net of tax):
Change in fair value of financial assets through other
comprehensive income ‘OCI’
Total comprehensive income for the year
20
(2)
(2)
(6)
(6)
36,661
12,823
30,920
70,193
Total comprehensive income for the year attributable to:
- Owners of the parent
- Non-controlling interests
38,767
(2,106)
36,661
12,823
-
12,823
33,149
(2,229)
30,920
70,193
-
70,193
The notes on subsequent pages are an integral part of these consolidated and company financial
statements.
124 | Atalaya Mining plc 2023 Annual Report
Consolidated and Company Statements of Financial
Position
As at 31 December 2023
(Euro 000’s)
Assets
Non-current assets
Property, plant and equipment
Intangible assets
Investment in subsidiaries
Trade and other receivables
Non-current financial asset
Deferred tax asset
Current assets
Inventories
Trade and other receivables
Tax refundable
Other financial assets
Cash and cash equivalents
Total assets
Equity and liabilities
Equity attributable to owners of the parent
Share capital
Share premium
Other reserves
Accumulated profit
Non-controlling interests
Total equity
Liabilities
Non-current liabilities
Trade and other payables
Provisions
Lease liability
Borrowings
Current liabilities
Trade and other payables
Lease liability
Current tax liabilities
Provisions
Borrowings
Total liabilities
Total equity and liabilities
31 Dec 2023
31 Dec 2023
31 Dec 2022
31 Dec 2022
Note
The Group The Company
The Group The Company
13
14
15
19
20
17
18
19
20
21
22
22
23
24
25
26
27
28
25
27
26
28
384,739
49,397
-
26,702
1,101
11,282
473,221
33,314
42,897
100
30
121,007
197,348
670,569
13,596
319,411
70,463
98,026
501,496
(9,104)
492,392
2,205
27,234
3,877
16,131
49,447
75,922
501
1,317
434
50,556
128,730
178,177
670,569
-
-
292,135
227
-
-
354,908
53,830
-
16,362
1,101
7,293
-
-
74,911
259,904
-
-
292,362
433,494
334,815
-
70,855
-
30
58,958
129,843
422,205
13,596
319,411
10,077
76,563
419,647
-
419,647
-
-
-
-
-
2,369
-
189
-
-
2,558
2,558
422,205
-
38,841
64,155
100
33
126,448
229,577
663,071
13,596
319,411
69,805
70,483
473,295
(6,998)
466,297
2,015
24,083
4,378
20,768
51,244
-
90,022
536
1,425
952
52,595
145,530
196,774
663,071
-
-
48,831
-
33
39,472
88,336
423,151
13,596
319,411
9,419
75,216
417,642
-
417,642
-
-
-
-
-
-
5,402
-
107
-
-
5,509
5,509
423,151
The notes on subsequent pages are an integral part of these consolidated and company financial statements.
The consolidated and company financial statements were authorised for issue by the Board of Directors on 18 March 2024
and were signed on its behalf.
Roger Davey
Chair
Alberto Lavandeira
Chief Execute Officer
125 | Atalaya Mining plc 2023 Annual Report
Consolidated Statement of Changes in Equity
for the year ended 31 December 2023
(Euro 000’s)
1 Jan 2023
Profit/(loss) for the period
Change in fair value of financial assets through
other comprehensive income ‘OCI’
Total comprehensive (loss)/income
Recognition of share-based payments
Other changes in equity
Dividends paid
31 Dec 2023
(Euro 000’s)
1 Jan 2022
Note
Share
capital
Share
premium
(2)
Other
reserves
(1)
Accum.
Profits
Total
NCI
Total
equity
13,596
319,411
69,805
70,483
473,295
(6,998)
466,297
20
23
12
-
-
-
-
-
-
-
-
-
-
-
-
-
38,769
38,769
(2,106)
36,663
(3)
-
(3)
-
(3)
(3)
38,769
38,766
(2,106)
36,660
661
-
-
-
252
661
252
(11,478)
(11,478)
-
-
-
661
252
(11,478)
13,596
319,411
70,463
98,026
501,496
(9,104)
492,392
Note
Share
capital
Share
premium
(2)
Other
reserves
(1)
Accum.
Profits
Total
NCI
Total
equity
13,447
315,916
52,690
58,754
440,807
(4,909)
435,898
Profit/(loss) for the period
Change in fair value of financial assets through
other comprehensive income ‘OCI’
Total comprehensive (loss)/income
Issuance of share capital
Recognition of depletion factor
Recognition of share-based payments
Recognition of non-distributable reserve
Recognition of distributable reserve
Other changes in equity
Dividends paid
31 Dec 2022
20
22
23
23
23
23
12
-
-
-
-
-
-
149
3,495
-
-
-
-
-
-
-
-
-
-
-
-
-
33,155
33,155
(2,229)
30,926
-
(6)
-
(6)
33,155
33,149
(2,229)
30,920
(6)
(6)
-
12,800
(12,800)
-
-
3,644
-
1,279
-
-
1,279
316
(316)
2,726
(2,726)
-
-
(485)
(485)
(5,099)
(5,099)
140
-
-
-
-
-
-
3,644
-
1,279
-
-
(345)
(5,099)
13,596
319,411
69,805
70,483
473,295
(6,998)
466,297
(1) Refer to Note 23
(2) The share premium reserve is not available for distribution.
The notes on subsequent pages are an integral part of these consolidated and company financial
statements
126 | Atalaya Mining plc 2023 Annual Report
Company Statement of Changes in Equity
for the year ended 31 December 2023
(Euro 000’s)
1 Jan 2022
Profit for the year
Change in fair value of financial assets through
other comprehensive income ‘OCI’
Total comprehensive income
Issuance of share capital
Recognition of share-based payments
Interim dividends paid
31 Dec 2022/1 Jan 2023
Profit for the period
Change in fair value of financial assets through
other comprehensive income ‘OCI’
Total comprehensive income
Recognition of share-based payments
Dividends paid
31 Dec 2023
Note
Share
capital
Share
premium
(1)
Other
reserves
Accum.
Profits
Total
20
22
23
20
23
13,447
315,916
8,146
10,116
347,625
-
-
-
-
-
-
149
3,495
-
-
-
-
-
70,199
70,199
(6)
(6)
-
1,279
-
(6)
70,199
70,193
-
-
3,644
1,279
-
(5,099)
(5,099)
13,596
319,411
9,419
75,216
417,642
-
-
-
-
-
-
-
-
-
-
-
12,825
12,825
(3)
(3)
661
-
(3)
12,825
12,822
-
661
-
(11,478)
(11,478)
13,596
319,411
10,077
76,563
419,647
(1) Refer to Note 23
(2) The share premium reserve is not available for distribution.
Companies, which do not distribute 70% of their profits after tax, as defined by the relevant tax law in
Cyprus, within two years after the end of the relevant tax year, will be deemed to have distributed
this amount as dividend on the 31 December of the second year. The amount of the deemed dividend
distribution is reduced by any actual dividend already distributed by 31 December of the second year
for the year the profits relate. The Company pays special defence contribution on behalf of the
shareholders over the amount of the deemed dividend distribution at a rate of 17% when the entitled
shareholders are natural persons tax residents of Cyprus and have their domicile in Cyprus. In
addition, from 2019 General Healthcare System contribution at a rate of 1.7% - 2.65%, when the entitled
shareholders are natural persons tax residents of Cyprus, regardless of their domicile.
The notes on subsequent pages are an integral part of these consolidated and company financial
statements.
127 | Atalaya Mining plc 2023 Annual Report
Consolidated Statement of Cash Flows
for the year ended 31 December 2023
(Euro 000’s)
Note
2023
2022
Cash flows from operating activities
Profit before tax
Adjustments for:
Depreciation of property, plant and equipment
Amortisation of intangible assets
Recognition of share-based payments
Interest income
Interest expense
Unwinding of discounting
Legal provisions
Net foreign exchange differences
Unrealised foreign exchange (loss)/gain on financing activities
Cash inflows from operating activities before working capital changes
Changes in working capital:
Inventories
Trade and other receivables
Trade and other payables
Provisions
Cash flows from operations
Interest expense on lease liabilities
Interest paid
Tax paid
Net cash from operating activities
Cash flows from investing activities
Purchases of property, plant and equipment
Purchases of intangible assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
Lease payment
Net (repayments)/proceeds from borrowings
Proceeds from issue of share capital
Dividends paid
Net cash (used in)/from financing activities
Net increase in cash and cash equivalents
Net foreign exchange difference
Cash and cash equivalents:
At beginning of the year
At end of the year
13
14
23
8
9
9
26
18
19
25
26
27
13
14
8
27
36,093
32,320
33,307
4,493
661
(5,393)
2,607
690
1
29,637
4,482
1,279
(244)
1,025
-
(43)
1,278
(11,546)
(1,492)
72,245
25
56,935
5,527
10,918
(14,924)
(1,203)
72,563
(25)
(2,607)
(5,188)
64,743
(14,060)
(24,471)
24,662
(91)
42,975
(20)
(1,025)
(3,427)
38,503
(53,837)
(52,650)
(460)
3,891
(944)
65
(50,406)
(53,529)
(536)
(6,486)
-
(11,478)
(18,500)
(617)
24,484
3,643
(5,099)
22,411
(4,163)
(1,278)
7,385
11,546
21
21
126,448
107,517
121,007
126,448
The notes on subsequent pages are an integral part of these consolidated and company financial
statements.
128 | Atalaya Mining plc 2023 Annual Report
Company Statement of Cash Flows
for the year ended 31 December 2023
(Euro 000’s)
Cash flows from operating activities
Profit before tax
Adjustments for:
Interest income
Interest income from interest-bearing intercompany loans
Net foreign exchange difference
Unrealised foreign exchange loss on financing activities
Cash inflows (used in)/from operating activities before working capital
changes
Changes in working capital:
Trade and other receivables
Trade and other payables
Cash flows from operations
Tax paid
Net cash from/(used in) operating activities
Cash flows from investing activities
Investment in subsidiaries
Interest received
Interest income from interest-bearing intercompany loans
Net cash from investing activities
Cash flows from financing activities
Proceeds from issue of share capital
Dividends paid
Net cash used in financing activities
Net increase/(decrease) in cash and cash equivalents
Net foreign exchange difference
Cash and cash equivalents:
At beginning of the year
At end of the year
Note
2023
2022
13,404
70,816
8
8
(518)
(36)
(14,087)
(12,900)
390
-
(3,439)
(63)
(811)
54,378
19
25
15
8
22
12
21,089
(3,030)
17,247
(498)
16,749
(1)
518
14,087
14,603
-
(11,477)
(11,477)
(61,273)
3,950
(2,945)
(311)
(3,256)
(9,461)
36
12,900
3,475
3,643
(5,099)
(1,456)
19,876
(390)
(1,237)
3,439
21
21
39,472
58,958
37,270
39,472
The notes on subsequent pages are an integral part of these consolidated and company financial
statements.
For non-cash transactions refer to Note 15.
129 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
1. Incorporation and summary of business
Atalaya Mining Plc (the “Company”) was incorporated in Cyprus on 17 September 2004 as a private
company with limited liability under the Companies Law, Cap. 113 and was converted to a public
limited liability company on 26 January 2005. Its registered office is at 1 Lampousa Street, Nicosia,
Cyprus.
The Company was listed on AIM of the London Stock Exchange in May 2005 under the symbol ATYM.
The Company continued to be listed on AIM as at 31 December 2023.
In February 2023, Atalaya announced its application for the voluntary delisting of its ordinary shares
from the Toronto Stock Exchange (the “TSX”). The delisting from the TSX took effect on 20 March
2023. Ordinary shares in the Company continue to trade on the AIM market of the London Stock
Exchange under the symbol “ATYM”.
Additional information about Atalaya Mining Plc is available at www.atalayamining.com as per
requirement of AIM rule 26.
Change of name and share consolidation
Following the Company’s Extraordinary General Meeting (“EGM”) on 13 October 2015, the change of
name from EMED Mining Public Limited to Atalaya Mining Plc became effective on 21 October 2015.
On the same day, the consolidation of ordinary shares came into effect, whereby all shareholders
received one new ordinary share of nominal value Stg £0.075 for every 30 existing ordinary shares of
nominal value Stg £0.0025.
Principal activities
Atalaya is a European mining and development company. The strategy is to evaluate and prioritise
metal production opportunities in several jurisdictions throughout the well-known belts of base and
precious metal mineralisation in Spain, elsewhere in Europe and Latin America.
The Group has interests in four mining projects: Proyecto Riotinto, Proyecto Touro, Proyecto Masa
Valverde and Proyecto Ossa Morena. In addition, the Group has an earn-in agreement to acquire
three investigation permits at Proyecto Riotinto East.
Proyecto Riotinto
The Company owns and operates through a wholly owned subsidiary, “Proyecto Riotinto”, an open-
pit copper mine located in the Iberian Pyrite Belt, in the Andalusia region of Spain, approximately 65
km northwest of Seville. A brownfield expansion of this mine was completed in 2019 and successfully
commissioned by Q1 2020.
Proyecto Touro
The Group has an initial 10% stake in Cobre San Rafael, S.L., the owner of Proyecto Touro, as part of an
earn-in agreement which will enable the Group to acquire up to 80% of the copper project. Proyecto
Touro is located in Galicia, north-west Spain. Proyecto Touro is currently in the permitting process.
In November 2019, Atalaya executed the option to acquire 12.5% of Explotaciones Gallegas del Cobre,
S.L. the exploration property around Touro, with known additional reserves, which will provide high
potential to the Proyecto Touro.
Proyecto Masa Valverde
On 21 October 2020, the Company announced that it entered into a definitive purchase agreement
to acquire 100% of the shares of Cambridge Mineria España, S.L. (since renamed Atalaya Masa
Valverde, S.L.U.), a Spanish company which fully owns the Masa Valverde polymetallic project located
in Huelva (Spain). Under the terms of the agreement Atalaya will make an aggregate €1.4 million
cash payment in two instalments of approximately the same amount. The first payment is to be
executed once the project is permitted and second and final payment when first production is
achieved from the concession.
130 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
In November 2023, the exploitation permit for the Masa Valverde and Majadales deposits was officially
granted.
Proyecto Ossa Morena
In December 2021, Atalaya announced the acquisition of a 51% interest in Rio Narcea Nickel, S.L.,
which owns 9 investigation permits. The acquisition also provided a 100% interest in three
investigation permits that are also located along the Ossa- Morena Metallogenic Belt. In Q3 2022,
Atalaya increased its ownership interest in POM to 99.9%, up from 51%, following completion of a
capital increase that will fund exploration activities. During 2022 Atalaya rejected 8 investigation
permits.
Atalaya will pay a total of €2.5 million in cash in three instalments and grant a 1% net smelter return
(“NSR”) royalty over all acquired permits. The first payment of €0.5 million will be made following
execution of the purchase agreement. The second and third instalments of €1 million each will be
made once the environmental impact statement (“EIS”) and the final mining permits for any project
within any of the investigation permits acquired under the Transaction are secured.
Proyecto Riotinto East
In December 2020, Atalaya entered into a Memorandum of Understanding with a local private
Spanish company to acquire a 100% beneficial interest in three investigation permits (known as
Peñas Blancas, Cerro Negro and Herreros investigation permits), which cover approximately 12,368
hectares and are located immediately east of Proyecto Riotinto.
2. Summary of material accounting policies
The principal accounting policies applied in the preparation of these consolidated and company
financial statements are set out below. These policies have been consistently applied to all the years
presented, unless otherwise stated.
2.1 Basis of preparation
(a) Overview
The financial statements of Atalaya Mining Plc have been prepared in accordance with International
Financial Reporting Standards (“IFRS”). IFRS comprise the standards issued by the International
Accounting Standards Board (“IASB”).
The financial statements are presented in € and all values are rounded to the nearest thousand
(€’000), except where otherwise indicated.
Additionally, the financial statements have also been prepared in accordance with the IFRS as
adopted by the European Union and the requirements of the Cyprus Companies Law, Cap.113. For
the year ending 31 December 2023, the standards applicable for IFRS’s as adopted by the EU are
aligned with the IFRS’s as issued by the IASB.
The consolidated financial statements have been prepared on a historical cost basis except for the
revaluation of certain financial instruments that are measured at fair value at the end of each
reporting period, as explained below and in note 3.
The preparation of financial statements in conformity with IFRS requires the use of certain critical
accounting estimates. It also requires management to exercise its judgment in the process of
applying the Group’s accounting policies. The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are material to the financial statements are
disclosed in Note 3.3.
(b) Going concern
The Directors have considered and debated different possible scenarios on the Company’s
operations, financial position and forecast for a period of at least 12 months since the approval of
these financial statements. Possible scenarios range from (i) disruption in Proyecto Riotinto; (ii)
market volatility in commodity and electricity prices; and (iii) availability of existing credit facilities.
131 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
The Directors, after reviewing these scenarios, the current cash resources, forecasts and budgets,
timing of cash flows, borrowing facilities, sensitivity analyses and considering the associated
uncertainties to the Group’s operations have a reasonable expectation that the Company has
adequate resources to continue operating in the foreseeable future.
Accordingly, these financial statements have been prepared based on accounting principles
applicable to a going concern which assumes that the Group and the Company will realise its assets
and discharge its liabilities in the normal course of business. Management has carried out an
assessment of the going concern assumption and has concluded that the Group and the Company
will generate sufficient cash and cash equivalents to continue operating for the next twelve months
since the approval of these consolidated financial statements.
Management continues to monitor the impact of geopolitical developments. Currently no significant
impact is expected in the operations of the Group.
2.2 Changes in accounting policy and disclosures
The Group has adopted all the new and revised IFRSs and International Accounting Standards (IASs)
which are relevant to its operations and are effective for accounting periods commencing on 1
January 2023.
IFRS 17: Insurance Contracts
The standard is effective for annual periods beginning on or after 1 January 2023. This is a
comprehensive new accounting standard for insurance contracts, covering recognition and
measurement, presentation and disclosure. IFRS 17 applies to all types of insurance contracts issued,
as well as to certain guarantees and financial instruments with discretional participation contracts.
These standards had no impact on the consolidated and parent company financial statements.
IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting
policies (Amendments)
The Amendments are effective for annual periods beginning on or after January 1, 2023. The
amendments provide guidance on the application of materiality judgements to accounting policy
disclosures. In particular, the amendments to IAS 1 replace the requirement to disclose ‘significant’
accounting policies with a requirement to disclose ‘material’ accounting policies. Also, guidance and
illustrative examples are added in the Practice Statement to assist in the application of the materiality
concept when making judgements about accounting policy disclosures. These amendments had no
impact on the consolidated financial statements of the Group.
IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting
Estimates (Amendments)
The amendments become effective for annual reporting periods beginning on or after January 1, 2023
and apply to changes in accounting policies and changes in accounting estimates that occur on or
after the start of that period. The amendments introduce a new definition of accounting estimates,
defined as monetary amounts in financial statements that are subject to measurement uncertainty,
if they do not result from a correction of prior period error. Also, the amendments clarify what
changes in accounting estimates are and how these differ from changes in accounting policies and
corrections of errors. These amendments had no impact on the consolidated financial statements of
the Group.
IAS 12 Income taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction
(Amendments)
The amendments are effective for annual periods beginning on or after January 1, 2023. The
amendments narrow the scope of and provide further clarity on the initial recognition exception
under IAS 12 and specify how companies should account for deferred tax related to assets and
liabilities arising from a single transaction, such as leases and decommissioning obligations. The
amendments clarify that where payments that settle a liability are deductible for tax purposes, it is a
132 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
matter of judgement, having considered the applicable tax law, whether such deductions are
attributable for tax purposes to the liability or to the related asset component. Under the
amendments, the initial recognition exception does not apply to transactions that, on initial
recognition, give rise to equal taxable and deductible temporary differences. It only applies if the
recognition of a lease asset and lease liability (or decommissioning liability and decommissioning
asset component) give rise to taxable and deductible temporary differences that are not equal. These
amendments had no impact on the consolidated financial statements of the Group.
IAS 12 Income taxes: International Tax Reform - Pillar Two Model Rules (Amendments)
The amendments are effective immediately upon issuance, but certain disclosure requirements are
effective later. The Organisation for Economic Co-operation and Development’s (OECD) published
the Pillar Two model rules in December 2021 to ensure that large multinational companies would be
subject to a minimum 15% tax rate. On 23 May 2023, the IASB issued International Tax Reform—Pillar
Two Model Rules – Amendments to IAS 12. The amendments introduce a mandatory temporary
exception to the accounting for deferred taxes arising from the jurisdictional implementation of the
Pillar Two model rules and disclosure requirements for affected entities on the potential exposure to
Pillar Two income taxes. The Amendments require, for periods in which Pillar Two legislation is
(substantively) enacted but not yet effective, disclosure of known or reasonably estimable
information that helps users of financial statements understand the entity’s exposure arising from
Pillar Two income taxes. To comply with these requirements, an entity is required to disclose
qualitative and quantitative information about its exposure to Pillar Two income taxes at the end of
the reporting period. The disclosure of the current tax expense related to Pillar Two income taxes and
the disclosures in relation to periods before the legislation is effective are required for annual
reporting periods beginning on or after 1 January 2023, but are not required for any interim period
ending on or before 31 December 2023. These amendments had no impact on the consolidated
financial statements of the Group as at 31 December 2023.
2.2.1 Standards issued but not yet effective and not yet adopted by the Group
IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current
(Amendments)
The amendments are effective for annual reporting periods beginning on or after January 1, 2024,
with earlier application permitted, and will need to be applied retrospectively in accordance with IAS
8. The objective of the amendments is to clarify the principles in IAS 1 for the classification of liabilities
as either current or non-current. The amendments clarify the meaning of a right to defer settlement,
the requirement for this right to exist at the end of the reporting period, that management intent
does not affect current or non-current classification, that options by the counterparty that could
result in settlement by the transfer of the entity’s own equity instruments do not affect current or
non-current classification. Also, the amendments specify that only covenants with which an entity
must comply on or before the reporting date will affect a liability’s classification. Additional
disclosures are also required for non-current liabilities arising from loan arrangements that are
subject to covenants to be complied with within twelve months after the reporting period. The
amendments are not expected to have a material impact on the Group.
IFRS 16 Leases: Lease Liability in a Sale and Leaseback (amendments)
The amendments are effective for annual reporting periods beginning on or after January 1, 2024,
with earlier application permitted. The amendments are intended to improve the requirements that
a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction in IFRS
16, while it does not change the accounting for leases unrelated to sale and leaseback transactions.
In particular, the seller-lessee determines ‘lease payments’ or ‘revised lease payments’ in such a way
that the seller-lessee would not recognise any amount of the gain or loss that relates to the right of
use it retains. Applying these requirements does not prevent the seller-lessee from recognising, in
profit or loss, any gain or loss relating to the partial or full termination of a lease. A seller-lessee applies
the amendment retrospectively in accordance with IAS 8 to sale and leaseback transactions entered
into after the date of initial application, being the beginning of the annual reporting period in which
133 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
an entity first applied IFRS 16. The amendments are not expected to have a material impact on the
Group.
IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments Disclosure - Supplier Finance
Arrangements (Amendments)
The amendments are effective for annual reporting periods beginning on or after January 1, 2024,
with earlier application permitted. The amendments supplement requirements already in IFRS and
require an entity to disclose the terms and conditions of supplier finance arrangements. Additionally,
entities are required to disclose at the beginning and end of reporting period the carrying amounts
of supplier finance arrangement financial liabilities and the line items in which those liabilities are
presented as well as the carrying amounts of financial liabilities and line items, for which the finance
providers have already settled the corresponding trade payables. Entities should also disclose the
type and effect of non-cash changes in the carrying amounts of supplier finance arrangement
financial liabilities, which prevent the carrying amounts of the financial liabilities from being
comparable. Furthermore, the amendments require an entity to disclose at the beginning and end
of the reporting period the range of payment due dates for financial liabilities owed to the finance
providers and for comparable trade payables that are not part of those arrangements. The
amendments have not yet been endorsed by the EU. The amendments have not yet been endorsed
by the EU and are not expected to have a material impact on the Group.
IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (Amendments)
The amendments are effective for annual reporting periods beginning on or after January 1, 2025,
with earlier application permitted. The amendments specify how an entity should assess whether a
currency is exchangeable and how it should determine a spot exchange rate when exchangeability
is lacking. A currency is considered to be exchangeable into another currency when an entity is able
to obtain the other currency within a time frame that allows for a normal administrative delay and
through a market or exchange mechanism in which an exchange transaction would create
enforceable rights and obligations. If a currency is not exchangeable into another currency, an entity
is required to estimate the spot exchange rate at the measurement date. An entity’s objective in
estimating the spot exchange rate is to reflect the rate at which an orderly exchange transaction
would take place at the measurement date between market participants under prevailing economic
conditions. The amendments note that an entity can use an observable exchange rate without
adjustment or another estimation technique. The amendments have not yet been endorsed by the
EU and are not expected to have a material impact on the Group.
2.3 Consolidation
(a) Basis of consolidation
The consolidated financial statements comprise the financial statements of Atalaya Mining Plc and
its subsidiaries.
(b) Subsidiaries
Subsidiaries are all entities (including special purpose entities) over which the Group and the
Company has control. Control exists when the Group is exposed, or has rights, to variable returns for
its involvement with the investee and has the ability to affect those returns through its power over
the investee. The existence and effect of potential voting rights that are currently exercisable or
convertible are considered when assessing whether the Group controls another entity. The Group
also assesses existence of control where it does not have more than 50% of the voting power but is
able to govern the financial and operating policies by virtue of de-facto control.
De-facto control may arise in circumstances where the size of the Group’s voting rights relative to
the size and dispersion of holdings of other shareholders give the Group the power to govern the
financial and operating policies, etc.
The Group re-assesses whether it controls an investee if facts and circumstances indicate that there
are changes to one or more of the three elements of control. Consolidation of a subsidiary begins
when the Group obtains control over the subsidiary and ceases when the Group loses control of the
subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the
year are included in the consolidated financial statements from the date the Group gains control
134 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
until the date the Group ceases to control the subsidiary.
Profit or loss and each component of OCI are attributed to the equity holders of the parent of the
Group and to the non-controlling interests, even if this results in the non-controlling interests having
a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries
to bring their accounting policies in line with the Group’s accounting policies. All intra-group assets
and liabilities, equity, income, expenses and cash flows relating to transactions between members of
the Group are eliminated in full on consolidation.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an
equity transaction.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. If the
Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities,
non-controlling interest and other components of equity, while any resultant gain or loss is
recognised in profit or loss. Any investment retained is recognised at fair value’.
The main operating subsidiary of Atalaya Mining Plc is the 100% owned Atalaya Riotinto Minera, S.L.U.
which operates “Proyecto Riotinto”, in the historical site of Huelva, Spain.
The name and shareholding of the entities included in the Group in these financial statements are:
Entity name
Atalaya Mining, Plc
EMED Marketing Ltd.
Atalaya Riotinto Minera, S.L.U.
Recursos Cuenca Minera, S.L. (3)
Business
Holding
%(2)
n/a
Trade
100%
Operating
100%
Dormant
50%
Country
Cyprus
Cyprus
Spain
Spain
Atalaya Minasderiotinto Project (UK), Ltd.
Holding
100%
United Kingdom
Eastern Mediterranean Exploration & Development, S.L.U.
Dormant
100%
Spain
Atalaya Touro (UK), Ltd.
Fundación ARM
Cobre San Rafael, S.L. (1)
Atalaya Servicios Mineros, S.L.U.
Atalaya Masa Valverde, S.L.U.
Atalaya Financing Ltd.
Atalaya Ossa Morena, S.L.
Iberian Polimetal S.L.
Holding
100%
United Kingdom
Trust
100%
Development
10%
Holding
100%
Development
100%
Financing
100%
Development
99.9%
Development
100%
Spain
Spain
Spain
Spain
Cyprus
Spain
Spain
Notes
(1)
(2)
Cobre San Rafael, S.L. is the entity which holds the mining rights of the Proyecto Touro. The
Group has control in the management of Cobre San Rafael, S.L., including one of the two
Directors, management of the financial books and the capacity to appoint the key personnel.
The effective proportion of shares held as at 30 June 2023 and 31 December 2022 remained
unchanged.
(3) Recursos Cuenca Minera is a joint venture with ARM, see note 16.
(4)
EMED Mining Spain, S.L. was disposed on 4 January 2022. See note 29.
135 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
The Group applies the acquisition method to account for business combinations. The consideration
transferred for the acquisition of a subsidiary is the fair value of the transferred assets, liabilities
incurred by the former owners of the acquiree, and the equity interests issued by the Group. The
consideration transferred includes the fair value of any asset or liability resulting from a contingent
consideration arrangement. Identifiable assets acquired, liabilities and contingent liabilities assumed
in a business combination are measured initially at fair value at the acquisition date. The Group
recognised any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either
at fair value or at the non-controlling interest’s proportionate share of the recognised amounts of
acquiree’s identifiable net assets.
(c) Acquisition-related costs are expensed as incurred
If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s
previously held equity interest in the acquire is re-measured to fair value at the acquisition date; any
gains or losses arising from such re-measurement are recognised in profit or loss.
Any contingent consideration to be transferred by the Group is recognised at fair value at the
acquisition date. Subsequent changes to the fair value of the contingent consideration that is
deemed to be an asset or liability is recognised in accordance with IFRS 9 in profit or loss. Contingent
consideration that is classified as equity is not re-measured, and its subsequent settlement is
accounted for within equity.
Inter-company transactions, balances, income and expenses on transactions between Group
companies are eliminated. Gains and losses resulting from intercompany transactions that are
recognised in assets are also eliminated. Accounting policies of subsidiaries have been changed
where necessary to ensure consistency with the policies adopted by the Group.
(d) Changes in ownership interests in subsidiaries without change of control
Transactions with non-controlling interests that do not result in loss of control are accounted for as
equity transactions – that is, as transactions with the owners in their capacity as owners. The
difference between fair value of any consideration paid and the relevant share acquired of the
carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-
controlling interests are also recorded in equity.
(e) Disposal of subsidiaries
When the Group ceases to have control any retained interest in the entity is re-measured to its fair
value at the date when control is lost, with the change in carrying amount recognised in profit or loss.
The fair value is the initial carrying amount for the purposes of subsequently accounting for the
retained interest as an associate, joint venture or financial asset. In addition, any amounts previously
recognised in other comprehensive income in respect of that entity are accounted for as if the Group
had directly disposed of the related assets or liabilities. This may mean that amounts previously
recognised in other comprehensive income are reclassified to profit or loss.
(f) Associates and joint ventures
An associate is an entity over which the Group has significant influence. Significant influence is the
power to participate in the financial and operating policy decisions of the investee (generally
accompanying a shareholding of between 20% and 50% of the voting rights) but is not control or joint
control over those policies.
A joint venture is a type of joint arrangement whereby the parties that have joint control of the
arrangement have rights to the net assets of the joint venture. Joint control is the contractually
agreed sharing of control of an arrangement, which exists only when decisions about the relevant
activities require the unanimous consent of the parties sharing control.
Investments in associates or joint ventures are accounted for using the equity method of accounting.
Under the equity method, the investment is initially recognised at cost, and the carrying amount is
increased or decreased to recognise the investor’s share of the profit or loss of the investee after the
date of acquisition. The Group’s investment in associates or joint ventures includes goodwill identified
on acquisition.
136 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
If the ownership interest in an associate or joint venture is reduced but significant influence is
retained, only a proportionate share of the amounts previously recognised in other comprehensive
income is reclassified to profit or loss where appropriate.
The Group’s share of post-acquisition profit or loss is recognised in the income statement, and its
share of post-acquisition movements in other comprehensive income is recognised in other
comprehensive income, with a corresponding adjustment to the carrying amount of the investment.
When the Group share of losses in an associate or a joint venture equals or exceeds its interest in the
associate or joint venture, including any other unsecured receivables, the Group does not recognise
further losses, unless it has incurred legal or constructive obligations or made payments on behalf of
the associate or the joint venture.
The Group determines at each reporting date whether there is any objective evidence that the
investment in the associate or the joint venture is impaired. If this is the case, the Group calculates
the amount of impairment as the difference between the recoverable amount of the associate or the
joint venture and its carrying value and recognises the amount adjacent to ‘share of profit/(loss) of
associates’ or joint ventures’ in the income statement.
Profits and losses resulting from upstream and downstream transactions between the Group and its
associate or joint venture are recognised in the Group’s consolidated financial statements only to the
extent of unrelated investors’ interests in the associates or the joint ventures. Unrealised losses are
eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Accounting policies of associates have been changed where necessary to ensure consistency with
the policies adopted by the Group. Dilution gains and losses arising in investments in associates or
joint ventures are recognised in the income statement.
(g) Functional currency
Functional and presentation currency items included in the financial statements of each of the
Group’s entities are measured using the currency of the primary economic environment in which the
entity operates (‘the functional currency’). The financial statements are presented in Euro which is
the Company’s functional and presentation currency.
Determination of functional currency may involve certain judgements to determine the primary
economic environment and the parent entity reconsiders the functional currency of its entities if
there is a change in events and conditions which determined the primary economic environment.
Foreign currency transactions are translated into the functional currency using the spot exchange
rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign
exchange gains and losses resulting from the settlement of such transactions are recognised in the
income statement.
Monetary assets and liabilities denominated in foreign currencies are updated at year-end spot
exchange rates.
Non-monetary items that are measured at historical cost in a foreign currency are translated using
the exchange rates at the dates of the initial transaction. Non-monetary items measured at fair value
in a foreign currency are translated using the exchange rates at the date when the fair value was
determined.
Gains or losses of monetary and non-monetary items are recognised in the income statement.
Balance sheet items are translated at period-end exchange rates. Exchange differences on
translation of the net assets of such entities whose functional currency are not the Euro are taken to
equity and recorded in a separate currency translation reserve.
2.4 Investments in subsidiary companies in the Company’s financial statements
Investments in subsidiary companies are stated at cost less provision for impairment in value, which
is recognised as an expense in the period in which the impairment is identified.
137 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
2.5 Interest in joint arrangements
A joint arrangement is a contractual arrangement whereby the Group and other parties undertake
an economic activity that is subject to joint control that is when the strategic, financial and operating
policy decisions relating to the activities the joint arrangement require the unanimous consent of the
parties sharing control.
Where a Group entity undertakes its activities under joint arrangements directly, the Group’s share
of jointly controlled assets and any liabilities incurred jointly with other ventures are recognised in
the financial statements of the relevant entity and classified according to their nature. Liabilities and
expenses incurred directly in respect of interests in jointly controlled assets are accounted for on an
accrual basis. Income from the sale or use of the Group’s share of the output of jointly controlled
assets, and its share of joint arrangement expenses, are recognised when it is probable that the
economic benefits associated with the transactions will flow to/from the Group and their amount can
be measured reliably.
The Group enters joint arrangements that involve the establishment of a separate entity in which
each acquiree has an interest (jointly controlled entity). The Group reports its interests in jointly
controlled entities using the equity method of accounting.
Where the Group transacts with its jointly controlled entities, unrealised profits and losses are
eliminated to the extent of the Group’s interest in the joint arrangement.
2.6 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating
resources and assessing performance of the operating segments, has been identified as the CEO
who makes strategic decisions.
The Group has only one distinct business segment, being that of mining operations, mineral
exploration and development.
2.7 Inventory
Inventory consists of copper concentrates, ore stockpiles and metal in circuit and spare parts.
Inventory is physically measured or estimated and valued at the lower of cost or net realisable value.
Net realisable value is the estimated future sales price of the product the entity expects to realise
when the product is processed and sold, less estimated costs to complete production and bring the
product to sale. Where the time value of money is material, these future prices and costs to complete
are discounted.
Cost is determined by using the FIFO method and comprises direct purchase costs and an
appropriate portion of fixed and variable overhead costs, including depreciation and amortisation,
incurred in converting materials into finished goods, based on the normal production capacity. The
cost of production is allocated to joint products using a ratio of spot prices by volume at each month
end. Separately identifiable costs of conversion of each metal are specifically allocated.
Materials and supplies are valued at the lower of cost or net realisable value. Any provision for
obsolescence is determined by reference to specific items of stock. A regular review is undertaken to
determine the extent of any provision for obsolescence.
2.8 Assets under construction
All subsequent expenditure on the construction, installation or completion of infrastructure facilities
including mine plants and other necessary works for mining, are capitalised in “Assets under
Construction”. Any costs incurred in testing the assets to determine if they are functioning as
intended, are capitalised, net of any proceeds received from selling any product produced while
testing. Where these proceeds exceed the cost of testing, any excess is recognised in the statement
of profit or loss and other comprehensive income. After production starts, all assets included in
“Assets under Construction” are then transferred to the relevant asset categories.
138 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
Once a project has been established as commercially viable, related development expenditure is
capitalised. A development decision is made based upon consideration of project economics,
including future metal prices, reserves and resources, and estimated operating and capital costs.
Capitalisation of costs incurred and proceeds received during the development phase ceases when
the property is capable of operating at levels intended by management.
Capitalisation ceases when the mine is capable of commercial production, except for development
costs which give rise to a future benefit.
Pre-commissioning sales are offset against the cost of assets under construction. No depreciation is
recognised until the assets are substantially complete and ready for productive use.
2.9 Property, plant and equipment
Property, plant and equipment are stated at historical cost less accumulated depreciation and any
accumulated impairment losses.
Subsequent costs are included in the assets’ carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow
to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced
part is derecognised. All other repairs and maintenance are charged to the income statement during
the financial period in which they are incurred.
Property, plant and equipment are depreciated to their estimated residual value over the estimated
useful life of the specific asset concerned, or the estimated remaining life of the associated mine
(“LOM”), field or lease. Depreciation commences when the asset is available for use.
The major categories of property, plant and equipment are depreciated/amortised on a Unit of
Production (“UOP”) and/or straight-line basis as follows:
Buildings
Mineral rights
Deferred mining costs
Plant and machinery
Motor vehicles
Furniture/fixtures/office equipment
UOP
UOP
UOP
UOP
5 years
5 – 10 years
The Group reviews the estimated residual values and expected useful lives of assets at least annually.
In particular, the Group considers the impact of health, safety and environmental legislation in its
assessment of expected useful lives and estimated residual values. Furthermore, the Group considers
climate-related matters, including physical and transition risks. Specifically, the Group determines
whether climate-related legislation and regulations might impact either the useful life or residual
values, e.g., by banning or restricting the use of the Group’s fossil fuel-driven machinery and
equipment or imposing additional energy efficiency requirements on the Group’s buildings and
office properties. An asset’s carrying amount is written down immediately to its recoverable amount
if the asset’s carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount
and are recognised within “Other income” in the income statement.
(a) Mineral rights
Mineral reserves and resources which can be reasonably valued are recognised in the assessment of
fair values on acquisition. Mineral rights for which values cannot be reasonably determined are not
recognised. Exploitable mineral rights are amortised using the UOP basis over the commercially
recoverable reserves and, in certain circumstances, other mineral resources. Mineral resources are
included in amortisation calculations where there is a high degree of confidence that they will be
extracted in an economic manner.
139 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
(b) Deferred mining costs – stripping costs
Mainly comprises of certain capitalised costs related to pre-production and in-production stripping
activities as outlined below.
Stripping costs incurred in the development phase of a mine (or pit) before production commences
are capitalised as part of the cost of constructing the mine (or pit) and subsequently amortised over
the life of the mine (or pit) on a UOP basis.
In-production stripping costs related to accessing an identifiable component of the ore body to
realise benefits in the form of improved access to ore to be mined in the future (stripping activity
asset), are capitalised within deferred mining costs provided all the following conditions are met:
i.
ii.
iii.
it is probable that the future economic benefit associated with the stripping activity will
be realised;
the component of the ore body for which access has been improved can be identified
and;
the costs relating to the stripping activity associated with the improved access can be
reliably measured.
If all of the criteria are not met, the production stripping costs are charged to the consolidated
statement of income as they are incurred.
The stripping activity asset is initially measured at cost, which is the accumulation of costs directly
incurred to perform the stripping activity that improves access to the identified component of ore,
plus an allocation of directly attributable overhead costs.
(c) Exploration costs
Under the Group’s accounting policy, exploration expenditure is not capitalised until the
management determines a property will be developed and point is reached at which there is a high
degree of confidence in the project’s viability and it is considered probable that future economic
benefits will flow to the Group. A development decision is made based upon consideration of project
economics, including future metal prices, reserves and resources, and estimated operating and
capital costs.
Subsequent recovery of the resulting carrying value depends on successful development or sale of
the undeveloped project. If a project does not prove viable, all irrecoverable costs associated with the
project net of any related impairment provisions are written off.
(d) Major maintenance and repairs
Expenditure on major maintenance refits or repairs comprises the cost of replacement assets or parts
of assets and overhaul costs. Where an asset, or part of an asset, that was separately depreciated and
is now written off is replaced, and it is probable that future economic benefits associated with the
item will flow to the Group through an extended life, the expenditure is capitalised.
Where part of the asset was not separately considered as a component and therefore not
depreciated separately, the replacement value is used to estimate the carrying amount of the
replaced asset(s) which is immediately written off. All other day-to-day maintenance and repairs
costs are expensed as incurred.
(e) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale (a qualifying
asset) are capitalised as part of the cost of the respective asset. Where funds are borrowed specifically
to finance a project, the amount capitalised represents the actual borrowing costs incurred. All other
borrowing costs are recognised in the statement of profit or loss and other comprehensive income
in the period in which they are incurred.
140 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
(f) Restoration, rehabilitation and decommissioning
Restoration, rehabilitation and decommissioning costs arising from the installation of plant and other
site preparation work, discounted using a risk adjusted discount rate to their net present value, are
provided for and capitalised at the time such an obligation arises.
The costs are charged to the consolidated statement of income over the life of the operation through
depreciation of the asset and the unwinding of the discount on the provision. Costs for restoration of
subsequent site disturbance, which are created on an ongoing basis during production, are provided
for at their net present values and charged to the consolidated statement of income as extraction
progresses.
Changes in the estimated timing of the rehabilitation or changes to the estimated future costs are
accounted for prospectively by recognising an adjustment to the rehabilitation liability and a
corresponding adjustment to the asset to which it relates, provided the reduction in the provision is
not greater than the depreciated capitalised cost of the related asset, in which case the capitalised
cost is reduced to zero and the remaining adjustment recognised in the consolidated statement of
income. In the case of closed sites, changes to estimated costs are recognised immediately in the
consolidated statement of income.
2.10 Intangible assets
(a) Business combination and goodwill
Goodwill arises on the acquisition of subsidiaries and represents the excess of the consideration
transferred over the acquired interest in net fair value of the net identifiable assets, liabilities and
contingent liabilities of the acquiree and the fair value of the non-controlling interest in the acquiree.
The results of businesses acquired during the year are brought into the consolidated financial
statements from the effective date of acquisition. The identifiable assets, liabilities and contingent
liabilities of a business which can be measured reliably are recorded at their provisional fair values at
the date of acquisition. Acquisition-related costs are expensed as incurred.
Goodwill impairment reviews are undertaken annually or more frequently if events or changes in
circumstances indicate a potential impairment. The carrying value of goodwill is compared to the
recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any
impairment is recognised immediately as an expense and is not subsequently reversed.
For the purposes of goodwill impairment testing, goodwill acquired in a business combination is
allocated to groups of CGUs that are expected to benefit from the synergies of the combination.
An impairment loss in respect of goodwill is not reversed.
(b) Permits
Permits are capitalised as intangible assets which relate to projects that are at the pre-development
stage. No amortisation charge is recognised in respect of these intangible assets. Once the Group
receives those permits and commence production, the intangible assets relating to permits will be
depreciated on a UOP basis.
(c) Other intangible assets include computer software.
Intangible assets acquired separately are measured on initial recognition at cost. The cost of
intangible assets acquired in a business combination is their fair value at the date of acquisition
provided they meet recognition criteria as per IFRS 3. Following initial recognition, intangible assets
are carried at cost less any accumulated amortisation (calculated on a straight-line basis over their
useful lives) and accumulated impairment losses, if any.
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite lives are amortised over their useful economic lives and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The
amortisation period and the amortisation method for an intangible asset with a finite useful life are
reviewed at least at the end of each reporting period.
141 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
Gains or losses arising from derecognition of an intangible asset are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognised in the
consolidated and company statements of comprehensive income when the asset is derecognised.
2.11 Impairment of non-financial assets
Assets that have an indefinite useful life – for example, goodwill or intangible assets not ready for use
– are not subject to amortisation and are tested annually for impairment. Assets that are subject to
amortisation are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognised for the amount
by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the
higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash
flows (cash-generating units). Non-financial assets other than goodwill that suffered impairment are
reviewed for possible reversal of the impairment at each reporting date.
The Group assesses whether climate risks, including physical risks and transition risks could have a
significant impact.
2.12 Financial assets and liabilities
2.12.1 Classification
The Group classifies its financial assets in the following measurement categories:
(cid:127)
(cid:127)
(cid:127)
those to be measured at amortised cost.
those to be measured subsequently at fair value through OCI, and.
those to be measured subsequently at fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset’s contractual
cash flow characteristics and the Group’s and the Company’s business model for managing them. In
order for a financial asset to be classified and measured at amortised cost, it needs to give rise to cash
flows that are ‘solely payments of principal and interest’ (‘SPPI’) on the principal amount outstanding.
This assessment is referred to as the SPPI test and is performed at an instrument level.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For
investments in equity instruments that are not held for trading, this will depend on whether the
group has made an irrevocable election at the time of initial recognition to account for the equity
investment at fair value through other comprehensive income (FVOCI).
The Group reclassifies debt investments when and only when its business model for managing those
assets changes.
Regular way purchases and sales of financial assets are recognised on trade-date, the date on which
the Group commits to purchase or sell the asset.
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a
financial asset not at fair value through profit or loss (FVPL), transaction costs that are directly
attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at
FVPL are expensed in profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining
whether their cash flows are solely payment of principal and interest.
Subsequent measurement of debt instruments depends on the Group’s business model for
managing the asset and the cash flow characteristics of the asset. There are three measurement
categories into which the Group classifies its debt instruments:
142 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
2.12.2 Amortised cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortised cost. Interest income from these
financial assets is included in finance income using the effective interest rate method. Any gain or
loss arising on derecognition is recognised directly in profit or loss and presented in other
gains/(losses) together with foreign exchange gains and losses.
Impairment losses are presented as separate line item in the statement of profit or loss.
The Company´s financial assets at amortised cost include current and non-current receivables (other
than trade receivables which are measured at fair value through profit and loss) and cash and cash
equivalents.
2.12.3 Fair value through other comprehensive income
Financial assets which are debt instruments, that are held for collection of contractual cash flows and
for selling the financial assets, where the assets’ cash flows represent solely payments of principal
and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI,
except for the recognition of impairment gains or losses, interest income and foreign exchange gains
and losses which are recognised in profit or loss. When the financial asset is derecognised, the
cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and
recognised in other gains/(losses). Interest income from these financial assets is included in finance
income using the effective interest rate method. Foreign exchange gains and losses are presented
in net foreign exchange gain/(loss) before tax and impairment expenses are presented as a separate
line item in the statement of profit or loss.
2.12.4 Equity instruments designated as fair value through other comprehensive income
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity
instruments designated at fair value through OCI when they meet the definition of equity under IAS
32 Financial Instruments: Presentation and are not held for trading. The classification is determined
on an instrument-by-instrument basis.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised
as other income in the consolidated and company statements of comprehensive income when the
right of payment has been established, except when the Group benefits from such proceeds as a
recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity
instruments designated at fair value through OCI are not subject to impairment assessment.
The Group elected to classify irrevocably its listed equity investments under this category.
2.12.5 Assets at fair value through profit and loss
Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL. A gain or loss
on a debt investment that is subsequently measured at FVPL is recognised as profit or loss and
presented net within other gains/(losses) in the period in which it arises.
Changes in the fair value of financial assets at FVPL are recognised in the consolidated and company
statements of comprehensive income as applicable. The Company’s and Group’s financial assets at
fair value through profit and loss include current and non-current receivables (other than trade
receivables which are measured at amortised cost).
2.12.6 De-recognition of financial assets
Financial assets are derecognised when the rights to receive cash flows from the financial assets have
expired or have been transferred and the Group has transferred substantially all the risks and rewards
of ownership.
143 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
2.12.7 Impairment of financial assets
The Group assesses on a forward looking basis the expected credit losses associated with its debt
instruments carried at amortised cost. Expected credit losses are based on the difference between
the contractual cash flows due in accordance with the contract and all the cash flows that the Group
expects to receive, discounted at an approximation of the original effective interest rate. The
expected cash flows will include cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.
For receivables (other than trade receivables which are measured at FVPL), the Group applies the
simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognised
from initial recognition of the receivables.
The Group considers a financial asset in default when contractual payments are 90 days past due.
However, in certain cases, the Group may also consider a financial asset to be in default when internal
or external information indicates that the Group is unlikely to receive the outstanding contractual
amounts in full before taking into account any credit enhancements held by the Group. A financial
asset is written off when there is no reasonable expectation of recovering the contractual cash flows
and usually occurs when past due for more than one year and not subject to enforcement activity.
2.12.8. Financial liabilities and trade payables
After initial recognition, interest-bearing loans and borrowings and trade and other payables are
subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in
the consolidated and company statements of comprehensive income when the liabilities are
derecognised, as well as through the EIR amortisation process.
Amortised cost is calculated by taking any discount or premium on acquisition and fees or costs that
are an integral part of the EIR, into account. The EIR amortisation is included as finance costs in the
consolidated and company statements of comprehensive income
2.13 Current versus Non-current Classification
The Group presents assets and liabilities in the consolidated and company statements of financial
position based on current/non-current classification.
(a) An asset is current when it is either:
Or
Expected to be realised or intended to be sold or consumed in normal operating cycle;
Held primarily for the purpose of trading;
Expected to be realised within 12 months after the reporting period
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability
for at least 12 months after the reporting period
All other assets are classified as non-current.
(b) A liability is current when either:
Or
It is expected to be settled in the normal operating cycle;
It is held primarily for the purpose of trading
It is due to be settled within 12 months after the reporting period
There is no unconditional right to defer the settlement of the liability for at least 12 months
after the reporting period
The Group classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
2.14 Cash and cash equivalents
In the consolidated and company statements of cash flows, cash and cash equivalents includes cash
in hand and in bank including deposits held at call with banks, with a maturity of less than 3 months.
144 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
2.15 Provisions
Provisions are recognised when: The Group has a present legal or constructive obligation as a result
of past events; it is probable that an outflow of resources will be required to settle the obligation; and
the amount has been reliably estimated. Provisions are not recognised for future operating losses.
2.16 Interest-bearing loans and borrowings
Where there are a number of similar obligations, the likelihood that an outflow will be required in
settlement is determined by considering the class of obligations as a whole. A provision is recognised
even if the likelihood of an outflow with respect to any one item included in the same class of
obligations may be small. Provisions are measured at the present value of the expenditures expected
to be required to settle the obligation using a pre-tax rate that reflects current market assessments
of the time value of money and the risks specific to the obligation. The increase in the provision due
to passage of time is recognised as interest expense.
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are
subsequently stated at amortised cost. Any difference between the proceeds (net of transaction
costs) and the redemption value is recognised in profit or loss over the period of the borrowings,
using the effective interest method, unless they are directly attributable to the acquisition,
construction or production of a qualifying asset, in which case they are capitalised as part of the cost
of that asset.
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the
extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is
deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some
or all of the facility will be drawn down, the fee is capitalised as a prepayment and amortised over the
period of the facility to which it relates.
Borrowing costs are interest and other costs that the Group incurs in connection with the borrowing
of funds, including interest on borrowings, amortisation of discounts or premium relating to
borrowings, amortisation of ancillary costs incurred in connection with the arrangement of
borrowings, finance lease charges and exchange differences arising from foreign currency
borrowings to the extent that they are regarded as an adjustment to interest costs.
2.17 Deferred consideration
Deferred consideration arises when settlement of all or any part of the cost of an agreement is
deferred. It is stated at fair value at the date of recognition, which is determined by discounting the
amount due to present value at that date. Interest is imputed on the fair value of non-interest-bearing
deferred consideration at the discount rate and expensed within interest payable and similar
charges. At each balance sheet date deferred consideration comprises the remaining deferred
consideration valued at acquisition plus interest imputed on such amounts from recognition to the
balance sheet date.
2.18 Share capital
Ordinary shares are classified as equity. The difference between the fair value of the consideration
received by the Company and the nominal value of the share capital being issued is taken to the
share premium account.
Incremental costs directly attributable to the issue of new ordinary shares are shown in equity as a
deduction, net of tax, from the proceeds in the share premium account.
2.19 Current and deferred income tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the income
statement, except to the extent that it relates to items recognised in other comprehensive income
or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly
in equity, respectively.
145 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
The current income tax charge is calculated on the basis of the tax laws enacted or substantively
enacted at the end of the reporting period date in the countries where the Company and its
subsidiaries operate and generate taxable income. Management periodically evaluates positions
taken in tax returns with respect to situations in which applicable tax regulation is subject to
interpretation. It establishes provisions where appropriate on the basis of amounts expected to be
paid to the tax authorities.
Deferred income tax is recognised, using the liability method, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the consolidated
financial statements. However, deferred tax liabilities are not recognised if they arise from the initial
recognition of goodwill; deferred income tax is also not recognised if it arises from initial recognition
of an asset or liability in a transaction other than a business combination that at the time of the
transaction affects neither accounting nor taxable profit or loss. Income tax is determined using tax
rates (and laws) that have been enacted or substantively enacted by the end of the reporting period
date and are expected to apply when the related deferred tax asset is realised or the deferred income
tax liability is settled. Deferred tax assets are recognised only to the extent that it is probable that
future taxable profit will be available against which the temporary differences can be utilised.
Deferred income tax is provided on temporary differences arising on investments in subsidiaries and
associates, except for deferred income tax liabilities where the timing of the reversal of the temporary
difference is controlled by the Group and it is probable that the temporary difference will not reverse
in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current
tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate
to income taxes levied by the same taxation authority on either the same taxable entity or different
taxable entities where there is an intention to settle the balances on a net basis.
In assessing the recoverability of deferred tax assets, the Group relies on the same forecast
assumptions used elsewhere in the financial statements and in other management reports, which,
among other things, reflect the potential impact of climate-related development on the business,
such as increased cost of production as a result of measures to reduce carbon emission.
2.20 Share-based payments
The Group operates a share-based compensation plan, under which the entity receives services from
employees as consideration for equity instruments (options) of the Group. The fair value of the
employee services received in exchange for the grant of the options is recognised as an expense. The
fair value is measured using the Black Scholes pricing model. The inputs used in the model are based
on management’s best estimates for the effects of non-transferability, exercise restrictions and
behavioural considerations. Non-market performance and service conditions are included in
assumptions about the number of options that are expected to vest.
Vesting conditions are: (i) the personnel should be an employee that provides services to the Group;
and (ii) should be in continuous employment for the whole vesting period of 3 years. Specific
arrangements may exist with senior managers and board members, whereby their options stay in
use until the end.
The total expense is recognised over the vesting period, which is the period over which all of the
specified vesting conditions are to be satisfied (Note 23).
146 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
2.21 Rehabilitation provisions
The Group records the present value of estimated costs of legal and constructive obligations required
to restore operating locations in the period in which the obligation is incurred. The nature of these
restoration activities includes dismantling and removing structures, rehabilitating mines and tailings
dams, dismantling operating facilities, closure of plant and waste sites and restoration, reclamation
and re-vegetation of affected areas. The obligation generally arises when the asset is installed, or the
ground/environment is disturbed at the production location. When the liability is initially recognised,
the present value of the estimated cost is capitalised by increasing the carrying amount of the related
mining assets to the extent that it was incurred prior to the production of related ore. Over time, the
discounted liability is increased for the change in present value based on the discount rates that
reflect current market assessments and the risks specific to the liability. The periodic unwinding of
the discount is recognised in the consolidated income statement as a finance cost. Additional
disturbances or changes in rehabilitation costs will be recognised as additions or charges to the
corresponding assets and rehabilitation liability when they occur. For closed sites, changes to
estimated costs are recognised immediately in the consolidated income statement.
The Group assesses its mine rehabilitation provision annually. Material estimates and assumptions
are made in determining the provision for mine rehabilitation as there are numerous factors that will
affect the ultimate liability payable. These factors include estimates of the extent and costs of
rehabilitation activities, technological changes, regulatory changes and changes in discount rates.
Those uncertainties may result in future actual expenditure differing from the amounts currently
provided. The provision at the consolidated statement of financial position date represents
management’s best estimate of the present value of the future rehabilitation costs required.
The impact of climate-related matters, such as changes in environmental regulations and other
relevant legislation, is considered by the Group in estimating the rehabilitation provision on the
manufacturing facility. Changes in the estimated future costs, or in the discount rate applied, are
added to or deducted from the cost of the asset.
2.22 Leases
The determination of whether an arrangement is, or contains a lease is based on the substance of
the arrangement at inception date including whether the fulfilment of the arrangement is
dependent on the use of a specific asset or assets or the arrangement conveys a right to use the
asset.
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the
contract conveys the right to control the use of an identified asset for a period of time in exchange
for consideration.
The Group applies a single recognition and measurement approach for all leases, except for short-
term leases and leases of low-value assets. The Group recognises lease liabilities to make lease
payments and right-of-use assets representing the right to use the underlying assets.
A reassessment is made after inception of the lease only if one of the following applies:
a) There is a change in contractual terms, other than a renewal or extension of the arrangement;
b) A renewal option is exercised, or extension granted, unless the term of the renewal or extension
was initially included in the lease term;
c) There is a change in the determination of whether fulfilment is dependent on a specified asset; or
d) There is a substantial change to the asset.
147 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
Group as a lessee
The Group has lease contracts for various items of laboratory equipment, motor vehicle, lands and
buildings used in its operations. Leases of laboratory equipment and motor vehicles generally have
lease terms for four years, while lands and buildings generally have lease terms for the life of mine,
currently after 13 years of operation. The Group’s obligations under its leases are secured by the
lessor’s title to the leased assets. Generally, the Group is restricted from assigning and subleasing the
leased assets.
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities.
The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs
incurred, and lease payments made at or before the commencement date less any lease incentives
received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end
of the lease term, the recognised right-of-use assets are depreciated on a straight-line basis over the
shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment.
After initial measurement, the right-of-use assets are depreciated from the commencement date
using the straight-line method over the shorter of the estimated useful lives of the right-of-use assets
or the end of lease term. These are as follows:
Right-of-use asset
Lands and buildings
Motor vehicles
Laboratory equipment
Depreciation terms in years
Based on Units of Production (UOP)
Based on straight line depreciation
Based on straight line depreciation
After the commencement date, the right-of-use assets are measured at cost less any accumulated
depreciation and any accumulated impairment losses and adjusted for any remeasurement of the
lease liability.
Lease liabilities
The lease liability is initially measured at the present value of the lease payments that are not paid at
the commencement date, discounted using the interest rate implicit in the lease or, if that rate
cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its
incremental borrowing rate as the discount rate. Lease payments included in the measurement of
the lease liability include the following:
Fixed payments, less any lease incentives receivable
Variable lease payments that depend on an index or rate, initially measured using the index
or rate as at the commencement date
Amounts expected to be payable by the lessee under residual value guarantees
The exercise price of a purchase option if the lessee is reasonably certain to exercise that
option
Lease payments in an optional renewal period if the Group is reasonably certain to exercise
an extension option
Payments of penalties for early terminating the lease, unless the Group is reasonably certain
not to terminate early.
The lease liability is measured at amortised cost using the effective interest rate method. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest
and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is re-
measured if there is a modification, a change in the lease term, a change in the in-substance fixed
lease payments or a change in the assessment to purchase the underlying asset. The result of this re-
measurement is disclosed in a line of the right-of-use assets note as modifications.
148 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
When the lease liability is remeasured, a corresponding adjustment is made to the carrying amount
of the right-of-use asset or is recorded as profit or loss if the carrying amount of the right-of-use asset
has been reduced to zero.
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases of machinery
and equipment (i.e., those leases that have a lease term of 12 months or less from the
commencement date and do not contain a purchase option). It also applies the lease of low-value
assets recognition exemption to leases of office equipment that are considered of low value (i.e.,
below €5,000). Lease payments on short-term leases and leases of low-value assets are recognised
as expense on a straight-line basis over the lease term.
2.23 Revenue recognition
(a) Revenue from contracts with customers
Atalaya is principally engaged in the business of producing copper concentrate and in some
instances, provides freight/shipping services. Revenue from contracts with customers is recognised
when control of the goods or services is transferred to the customer at an amount that reflects the
consideration to which Atalaya expects to be entitled in exchange for those goods or services. Atalaya
has concluded that it is the principal in its revenue contracts because it controls the goods or services
before transferring them to the customer.
(b) Copper in concentrate (metal in concentrate) sales
For most copper in concentrate (metal in concentrate) sales, the enforceable contract is each
purchase order, which is an individual, short-term contract. For the Group’s metal in concentrate
sales not sold under CIF Incoterms, the performance obligations are the delivery of the concentrate.
A proportion of the Group’s metal in concentrate sales are sold under CIF Incoterms, whereby the
Group is also responsible for providing freight services. In these situations, the freight services also
represent separate performance obligation (see paragraph (c) below).
The majority of the Group’s sales of metal in concentrate allow for price adjustments based on the
market price at the end of the relevant QP stipulated in the contract. These are referred to as
provisional pricing arrangements and are such that the selling price for metal in concentrate is based
on prevailing spot prices on a specified future date after shipment to the customer. Adjustments to
the sales price occur based on movements in quoted market prices up to the end of the QP. The
period between provisional invoicing and the end of the QP can be between one and three months.
Revenue is recognised when control passes to the customer, which occurs at a point in time when
the metal in concentrate is physically transferred onto a vessel, train, conveyor or other delivery
mechanism. The revenue is measured at the amount to which the Group expects to be entitled,
being the estimate of the price expected to be received at the end of the QP, i.e., the forward price,
and a corresponding trade receivable is recognised. For those arrangements subject to CIF shipping
terms, a portion of the transaction price is allocated to the separate freight services provided (See
paragraph (c) below).
For these provisional pricing arrangements, any future changes that occur over the QP are included
within the provisionally priced trade receivables and are, therefore, within the scope of IFRS 9 and
not within the scope of IFRS 15. Given the exposure to the commodity price, these provisionally priced
trade receivables will fail the cash flow characteristics test within IFRS 9 and will be required to be
measured at fair value through profit or loss up from initial recognition and until the date of
settlement. These subsequent changes in fair value are recognised as part of revenue in the
statement of profit or loss and other comprehensive income each period and disclosed separately
from revenue from contracts with customers as part of ‘Fair value gains/losses on provisionally priced
trade receivables. Changes in fair value over, and until the end of, the QP, are estimated by reference
to updated forward market prices for copper as well as taking other relevant fair value considerations
as set out in IFRS 13, into account, including interest rate and credit risk adjustments.
149 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
Final settlement is based on quantities adjusted as required following the inspection of the product
by the customer as well as applicable commodity prices. IFRS 15 requires that variable consideration
should only be recognised to the extent that it is highly probable that a significant reversal in the
amount of cumulative revenue recognized will not occur. As the adjustments relating to the final
assay results for the quantity and quality of concentrate sold are not significant, they do not constrain
the recognition of revenue.
(c) Freight services
As noted above, a proportion of the Group’s metal in concentrate sales are sold under CIF Incoterms,
whereby the Group is responsible for providing freight services (as principal) after the date that the
Group transfers control of the metal in concentrate to its customers. The Group, therefore, has
separate performance obligation for freight services which are provided solely to facilitate sale of the
commodities it produces.
The revenue from freight services is a separate performance obligation under IFRS 15 and therefore
is recognised as the service is provided, hence at year end a portion of revenue must be deferred as
well as the insurance costs associated.
Other Incoterms commonly used by the Group are FOB, where the Group has no responsibility for
freight or insurance once control of the products has passed at the loading port, Ex works where
control of the goods passes when the product is picked up at seller´s promises, and CIP where
control of the goods passes when the product is delivered to the agreed destination. For
arrangements which have these Incoterms, the only performance obligations are the provision of the
product at the point where control passes.
(d) Sales of services
The Group sells services in relation to maintenance of accounting records, management, technical,
administrative support and other services to other companies. Revenue is recognised in the
accounting period in which the services are rendered.
Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred to the
customer. If the Group performs by transferring goods or services to a customer before the customer
pays consideration or before payment is due, a contract asset is recognised for the earned
consideration that is conditional. The Group does not have any contract assets as performance and a
right to consideration occurs within a short period of time and all rights to consideration are
unconditional.
Contract liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the Group
has received consideration (or an amount of consideration is due) from the customer. If a customer
pays consideration before the Group transfers goods or services to the customer, a contract liability
is recognised when the payment is made or the payment is due (whichever is earlier). Contract
liabilities are recognised as revenue when the Group performs under the contract.
From time to time, the Group recognises contract liabilities in relation to some metal in concentrate
sales which are sold under CIF Incoterms, whereby a portion of the cash may be received from the
customer before the freight services are provided.
2.24 Interest income
Interest income is recognised using the effective interest method. When a loan and receivable is
impaired, the Group and the Company reduce the carrying amount to its recoverable amount, the
estimated future cash flow is discounted at the original effective interest rate of the instrument and
the discount continues unwinding as interest income. Interest income on impaired loan and
receivables is recognised using the original effective interest rate.
2.25 Dividend income
Dividend income is recognised when the right to receive payment is established.
150 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
2.26 Dividend distribution
Dividend distributions to the Company’s shareholders are recognised as a liability in the Group’s
financial statements in the period in which the dividends are approved by the Company’s
shareholders.
2.27 Earnings per share
The Group presents basic and diluted earnings per share data for its ordinary shares. Basic earnings
per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the
Company by the weighted average number of ordinary shares outstanding during the period.
Diluted earnings per share is determined by adjusting the profit or loss attributable to ordinary
shareholders and the weighted average number of ordinary shares outstanding for the effects of all
dilutive potential ordinary shares, which comprise instruments convertible into ordinary shares and
share options granted to employees.
2.28 Comparatives
Where necessary, comparative figures have been adjusted to conform to changes in presentation in
the current year.
2.29 Amendment of financial statements after issue
The Board of Directors and shareholders has no right to amend the Financial Statements after they
are authorised.
2.30 Fair value estimation
The fair values of the Group’s financial assets and liabilities approximate their carrying amounts at
the reporting date.
The fair value of financial instruments traded in active markets, such as publicly traded and fair value
through profit and loss assets is based on quoted market prices at the reporting date. The quoted
market price used for financial assets held by the Group is the current bid price. The appropriate
quoted market price for financial liabilities is the current ask price.
The fair value of financial instruments that are not traded in an active market is determined by using
valuation techniques. The Group uses a variety of methods, such as estimated discounted cash flows,
and makes assumptions that are based on market conditions existing at the reporting date.
Fair value measurements recognised in the consolidated and company statement of financial
position
The following table provides an analysis of financial instruments that are measured subsequent to
initial recognition at fair value, Grouped into Levels 1 to 3 based on the degree to which the fair value
is observable.
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active
markets for identical assets or liabilities.
Level 2 fair value measurements are those derived from inputs other than quoted prices
included within Level 1 that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices).
Level 3 fair value measurements are those derived from valuation techniques that include
inputs for the asset or liability that are not based on observable market data (unobservable
inputs).
151 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
THE GROUP
(Euro 000’s)
Level 3
Level 2
Level 1
Total
31 Dec 2023
Other current financial assets
Financial assets at FV through OCI
Trade and other receivables
Receivables (subject to provisional pricing)
Total
31 Dec 2022
Other current financial assets
Financial assets at FV through OCI
Receivables (subject to provisional pricing)
Total
THE COMPANY
(Euro 000’s)
31 Dec 2023
Non-current receivables
Financial assets at FV through profit and
loss (note 30.4)
Other current financial assets
Financial assets at FV through OCI
Total
31 Dec 2022
Non-current receivables
Financial assets at FV through profit and
loss (note 30.4)
Other current financial assets
Financial assets at FV through OCI
Total
2.31 Climate-related matters
30
-
30
33
-
33
-
1,101
1,131
15,164
15,164
-
1,101
15,164
16,295
-
27,557
27,557
1,101
-
1,101
1,134
27,557
28,691
Level 1
Level 2
Level 3
Total
-
30
30
-
33
33
-
-
-
-
-
-
-
-
-
-
30
30
14,247
14,247
-
33
14,247
14,280
The Group considers climate-related matters in estimates and assumptions, where appropriate. This
assessment includes a wide range of possible impacts on the group due to both physical and
transition risks. Even though the Group believes its business model and products will still be viable
after the transition to a low-carbon economy, climate-related matters increase the uncertainty in
estimates and assumptions underpinning several items in the financial statements. Even though
climate-related risks might not currently have a significant impact on measurement, the Group is
closely monitoring relevant changes and developments, such as new climate-related legislation. The
items and considerations that are most directly impacted by climate-related matters are:
-
Useful life of property, plant and equipment. When reviewing the residual values and
expected useful lives of assets, the Group considers climate-related matters, such as climate-
related legislation and regulations that may restrict the use of assets or require significant
capital expenditures, based on the assessment on climate-related matters, there was no
impact.
152 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
-
-
-
Impairment of non-financial assets. The value-in-use may be impacted in several different
ways by transition risk in particular, such as climate-related legislation and regulations and
changes in demand for the Group products, based on the assessment on climate-related
matters, there was no impact.
In determining fair value measurement, the impact of potential climate-related matters,
including legislation, which may affect the fair value measurement of assets and liabilities in
the financial statements has been considered and based on the assessment on climate-
related matters, there was no impact.
Rehabilitation provision. The impact of climate-related legislation and regulations is
considered in estimating the timing and future costs of rehabilitation of the Group facilities,
based on the assessment on climate-related matters, there was no impact.
153 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
3. Financial Risk Management and Critical accounting estimates and
judgements
3.1 Financial risk factors
The Group manages its exposure to key financial risks in accordance with its financial risk
management policy. The objective of the policy is to support the delivery of the Group’s financial
targets while protecting future financial security. The main risks that could adversely affect the
Group’s financial assets, liabilities or future cash flows are market risks comprising: commodity price
risk, interest rate risk and foreign currency risk; liquidity risk and credit risk; operational risk,
compliance risk and litigation risk. Management reviews and agrees policies for managing each of
these risks that are summarised below.
The Group’s senior management oversees the management of financial risks. The Group’s senior
management is supported by the AC that advises on financial risks and the appropriate financial risk
governance framework for the Group. The AC provides assurance to the Group’s senior management
that the Group’s financial risk-taking activities are governed by appropriate policies and procedures
and that financial risks are identified, measured and managed in accordance with the Group’s
policies and risk objectives. Currently, the Group does not apply any form of hedge accounting.
(a) Liquidity risk
Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An
unmatched position potentially enhances profitability but can also increase the risk of losses. The
Group has procedures with the object of minimising such losses such as maintaining sufficient cash
to meet liabilities when due. Cash flow forecasting is performed in the operating entities of the Group
and aggregated by Group finance. Group finance monitors rolling forecasts of the Group’s liquidity
requirements to ensure it has sufficient cash to meet operational needs.
The following tables detail the Group’s remaining contractual maturity for its financial liabilities. The
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the
earliest date on which the Group can be required to pay. The table includes principal cash flows.
THE GROUP
(Euro 000’s)
31 Dec 2023
Tax liability
Lease liability
Carrying
amount
s
Contract
ual cash
flows
Less
than 3
month
s
Betwee
n 3 – 12
months
Betwee
n 1 – 2
years
Betwee
n 2 – 5
years
Over 5
years
-
-
-
-
1,317
4,378
1,317
4,378
1,317
501
-
-
-
-
1,928
1,949
Other financial liabilities
66,687
65,406
Non-current payables
2,205
-
Trade and other payables
75,922
72,623
36,964
38,882
50,556
16,131
205
-
76
-
-
-
-
2,000
-
150,509
143,724
36,967
91,458
16,207
1,928
3,949
31 Dec 2022
Tax liability
Lease liability
Other financial liabilities
Non-current payables
Trade and other payables
1,425
4,914
73,362
2,015
90,022
171,738
1,425
4,914
73,362
-
86,810
166,511
-
-
-
-
53,912
53,912
154 | Atalaya Mining plc 2023 Annual Report
1,425
536
-
-
52,594
10,812
15
36,110
90,680
-
-
-
1,957
9,956
-
-
-
2,421
-
2,000
-
10,812
11,913
4,421
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
THE COMPANY
(Euro 000’s)
31 Dec 2023
Tax liability
Trade and other payables
31 Dec 2022
Tax liability
Trade and other payables
Carrying
amount
s
Contrac
tual
cash
flows
Less
than 3
month
s
Betwee
n 3 – 12
months
Betwee
n 1 – 2
years
Betwee
n 2 – 5
years
Over 5
years
189
2,369
2,558
107
5,402
5,509
189
868
1,057
107
543
650
-
-
-
-
-
-
189
2,369
2,558
107
5,402
5,509
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(b) Currency risk
Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign
exchange rates.
Currency risk arises when future commercial transactions and recognised assets and liabilities are
denominated in a currency that is not the Group’s measurement currency. The Group is exposed to
foreign exchange risk arising from various currency exposures primarily with respect to the US Dollar
and the British Pound. The Group’s management monitors the exchange rate fluctuations on a
continuous basis and acts accordingly.
Foreign currency sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in the foreign
exchange rate, with all other variables held constant, of the Group’s profit before tax due to changes
in the carrying value of monetary assets and liabilities at reporting date:
(Euro 000’s)
+5%
-5%
(c) Commodity price risk
Effect on profit before
tax for the year ended
31 Dec 2023
increase/(decrease)
17,454
(17,454)
Effect on profit before
tax for the year ended 31
Dec 2022
increase/(decrease)
17,303
(17,303)
Commodity price is the risk that the Group’s future earnings will be adversely impacted by changes
in the market prices of commodities, primarily copper. Management is aware of this impact on its
primary revenue stream but knows that there is little it can do to influence the price earned apart
from a hedging scheme.
Commodity price hedging is governed by the Group´s policy which allows to limit the exposure to
prices. The Group may decide to hedge part of its production during the year.
Commodity price sensitivity
The table below summarises the impact on profit before tax for changes in commodity prices on the
fair value of derivative financial instruments and trade receivables (subject to provisional pricing). The
impact on equity is the same as the impact on profit before income tax as these derivative financial
instruments have not been designated as hedges and are classified as held-for-trading and are
therefore fair valued through profit or loss.
The analysis is based on the assumption that the copper prices move $0.05/lb with all other variables
held constant. Reasonably possible movements in commodity prices were determined based on a
review of the last two years’ historical prices.
155 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
Increase/(decrease) in copper prices
Increase $0.05/lb (2022: $0.05)
Decrease $0.05/lb (2022: $0.05)
Effect on profit before
tax for the year ended
31 Dec 2023
increase/(decrease)
Eur 000’s
Effect on profit before
tax for the year ended 31
Dec 2022
increase/(decrease)
Eur 000’s
5,138
(5,138)
5,285
(5,285)
(d) Credit risk
Credit risk arises when a failure by counterparties to discharge their obligations could reduce the
amount of future cash inflows from financial assets on hand at the reporting date. The Group has no
significant concentration of credit risk. The Group has policies in place to ensure that sales of products
and services are made to customers with an appropriate credit history and monitors on a continuous
basis the ageing profile of its receivables. The Group has policies to limit the amount of credit
exposure to any financial institution.
Except as detailed in the following table, the carrying amount of financial assets recorded in the
financial statements, which is net of impairment losses, represents the maximum credit exposure
without taking account of the value of any collateral obtained:
(Euro 000’s)
31 Dec 2023
31 Dec 2022
Unrestricted cash and cash equivalents at Group level
Unrestricted cash and cash equivalents at Operation level
Restricted cash and cash equivalents at Operation level
Consolidated cash and cash equivalents
Net cash position (1)
Working capital surplus
94,868
26,139
-
121,007
54,320
68,618
108,550
17,567
331
126,448
53,085
84,047
(1)
Includes restricted cash and bank borrowings at 31 December 2022
Restricted cash amounted at 31 December 2022 to €0.3 million was held in escrow, which
represented funds utilized by the Company to cover possible remaining costs due to Astor following
litigation during 2022. However, due to the settlement reached with Astor on 17 May 2023 whereby
Astor agreed to repay €3.5 million of interest previously paid to it to finalise the litigation, the
previously restricted cash has now been released and reversed (Note 8).
Besides of the above, there are no collaterals held in respect of these financial instruments and there
are no financial assets that are past due or impaired as at 31 December 2023 and 2022.
(e) Interest rate risk
Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in
market interest rates. Borrowings issued at variable rates expose the Group to cash flow interest rate
risk. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. The Group’s
management monitors the interest rate fluctuations on a continuous basis and acts accordingly.
At the reporting date the interest rate profile of interest-bearing financial instruments was:
156 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
(Euro 000’s)
Variable rate instruments
Financial assets
121,007
2023
2022
126,448
An increase of 100 basis points in interest rates at 31 December 2023 would have increased /
(decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all
other variables, in particular foreign currency rates, remain constant. For a decrease of 100 basis
points there would be an equal and opposite impact on the profit and other equity.
(Euro 000’s)
Variable rate instruments
Equity
Profit or loss
2023
1,210
2022
1,264
2023
1,210
2022
1,264
(f) Operational risk
Operational risk is the risk that derives from the deficiencies relating to the Group’s information
technology and control systems as well as the risk of human error and natural disasters. The Group’s
systems are evaluated, maintained and upgraded continuously.
(g) Compliance risk
Compliance risk is the risk of financial loss, including fines and other penalties, which arises from
non-compliance with laws and regulations. The Group has systems in place to mitigate this risk,
including seeking advice from external legal and regulatory advisors in each jurisdiction.
(h) Litigation risk
Litigation risk is the risk of financial loss, interruption of the Group’s operations or any other
undesirable situation that arises from the possibility of non-execution or violation of legal contracts
and consequentially of lawsuits. The risk is restricted through the contracts used by the Group to
execute its operations.
3.2 Capital risk management
The Group considers its capital structure to consist of share capital, share premium and share options
reserve. The Group’s objectives when managing capital are to safeguard the Group’s ability to
continue as a going concern in order to provide returns for shareholders and benefits for other
stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The Group is
not subject to any externally imposed capital requirements.
In order to maintain or adjust the capital structure, the Group issues new shares. The Group manages
its capital to ensure that it will be able to continue as a going concern while maximising the return
to shareholders through the optimisation of the debt and equity balance. The AC reviews the capital
structure on a continuing basis.
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a
going concern and to maintain an optimal capital structure so as to maximise shareholder value. In
order to maintain or achieve an optimal capital structure, the Group may adjust the amount of
dividend payment, return capital to shareholders, issue new shares, buy back issued shares, obtain
new borrowings or sell assets to reduce borrowings.
The Group monitors capital on the basis of the gearing ratio. The gearing ratio is calculated as net
debt divided by total capital. Net debt is calculated as provisions plus deferred consideration plus
trade and other payables less cash and cash equivalents.
(Euro 000’s)
Total liabilities less cash
Total equity (excluding NCI)
Total capital
Gearing ratio
31 Dec 2023
31 Dec 2022
57,170
501,496
558,666
70,326
473,295
543,621
10.23%
12.94%
157 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
3.3 Critical accounting estimates and judgements
The preparation of the financial statements requires management to make judgements, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and
the accompanying disclosures, and the disclosure of contingent liabilities at the date of the
consolidated financial statements. Estimates and assumptions are continually evaluated and are
based on management’s experience and other factors, including expectations of future events that
are believed to be reasonable under the circumstances. Uncertainty about these assumptions and
estimates could result in outcomes that require a material adjustment to the carrying amount of
assets or liabilities affected in future periods.
In particular, the Group has identified a number of areas where significant judgements, estimates
and assumptions are required.
(a) Capitalisation of exploration and evaluation costs
Under the Group’s accounting policy, exploration and evaluation expenditure is not capitalised until
the point is reached at which there is a high degree of confidence in the project’s viability, and it is
considered probable that future economic benefits will flow to the Group. Subsequent recovery of
the resulting carrying value depends on successful development or sale of the undeveloped project.
If a project proves to be unviable, all irrecoverable costs associated with the project net of any related
impairment provisions are written off.
(b) Stripping costs
The Group incurs waste removal costs (stripping costs) during the development and production
phases of its surface mining operations. Furthermore, during the production phase, stripping costs
are incurred in the production of inventory as well as in the creation of future benefits by improving
access and mining flexibility in respect of the orebodies to be mined, the latter being referred to as a
stripping activity asset. Judgement is required to distinguish between the development and
production activities at surface mining operations.
The Group is required to identify the separately identifiable components or phases of the orebodies
for each of its surface mining operations. Judgement is required to identify and define these
components, and also to determine the expected volumes (tonnes) of waste to be stripped and ore
to be mined in each of these components. These assessments may vary between mines because the
assessments are undertaken for each individual mine and are based on a combination of information
available in the mine plans, specific characteristics of the orebody, the milestones relating to major
capital investment decisions and the type and grade of minerals being mined.
Judgement is also required to identify a suitable production measure that can be applied in the
calculation and allocation of production stripping costs between inventory and the stripping activity
asset. The Group considers the ratio of expected volume of waste to be stripped for an expected
volume of ore to be mined for a specific component of the orebody, compared to the current period
ratio of actual volume of waste to the volume of ore to be the most suitable measure of production.
These judgements and estimates are used to calculate and allocate the production stripping costs
to inventory and/or the stripping activity asset(s). Furthermore, judgements and estimates are also
used to apply the units of production method in determining the depreciable lives of the stripping
activity asset(s).
(c) Ore reserve and mineral resource estimates
The Group estimates its ore reserves and mineral resources based on information compiled by
appropriately qualified persons relating to the geological and technical data on the size, depth, shape
and grade of the ore body and suitable production techniques and recovery rates.
Such an analysis requires complex geological judgements to interpret the data. The estimation of
recoverable reserves is based upon factors such as estimates of foreign exchange rates, commodity
prices, future capital requirements and production costs, along with geological assumptions and
judgements made in estimating the size and grade of the ore body.
158 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
The Group uses qualified persons (as defined by the Canadian Securities Administrators’ National
Instrument 43-101) to compile this data. Changes in the judgments surrounding proven and probable
reserves may impact as follows:
The carrying value of exploration and evaluation assets, mine properties, property, plant and
equipment, and goodwill may be affected due to changes in estimated future cash flows;
Depreciation and amortisation charges in the consolidated and company statements of
comprehensive income may change where such charges are determined using the UOP
method, or where the useful life of the related assets change;
Capitalised stripping costs recognised in the statement of financial position as either part of
mine properties or inventory or charged to profit or loss may change due to changes in
stripping ratios;
Provisions for rehabilitation and environmental provisions may change where reserve
estimate changes affect expectations about when such activities will occur and the
associated cost of these activities;
The recognition and carrying value of deferred income tax assets may change due to
changes in the judgements regarding the existence of such assets and in estimates of the
likely recovery of such assets.
(d) Impairment of assets
Events or changes in circumstances can give rise to significant impairment charges or impairment
reversals in a particular year. The Group assesses each Cash Generating Unit ("CGU") annually to
determine whether any indications of impairment exist. If it was necessary management could
contract independent expert to value the assets. Where an indicator of impairment exists, a formal
estimate of the recoverable amount is made, which is considered the higher of the fair value less cost
to sell and value-in-use. An impairment loss is recognised immediately in net earnings. The Group
has determined that each mine location is a CGU.
These assessments require the use of estimates and assumptions such as commodity prices,
discount rates, future capital requirements, exploration potential and operating performance. Fair
value is determined as the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date. Fair value for
mineral assets is generally determined as the present value of estimated future cash flows arising
from the continued use of the asset, which includes estimates such as the cost of future expansion
plans and eventual disposal, using assumptions that an independent market participant may take
into account. Cash flows are discounted at an appropriate discount rate to determine the net present
value. For the purpose of calculating the impairment of any asset, management regards an individual
mine or works site as a CGU.
Although management has made its best estimate of these factors, it is possible that changes could
occur in the near term that could adversely affect management’s estimate of the net cash flow to be
generated from its projects.
(e) Provisions for decommissioning and site restoration costs
Accounting for restoration provisions requires management to make estimates of the future costs
the Group will incur to complete the restoration and remediation work required to comply with
existing laws, regulations and agreements in place at each mining operation and any environmental
and social principles the Group is in compliance with. The calculation of the present value of these
costs also includes assumptions regarding the timing of restoration and remediation work,
applicable risk-free interest rate for discounting those future cash outflows, inflation and foreign
exchange rates and assumptions relating to probabilities of alternative estimates of future cash
outflows.
Management uses its judgement and experience to provide for and (in the case of capitalised
decommissioning costs) amortise these estimated costs over the life of the mine. The ultimate cost
of decommissioning and timing is uncertain and cost estimates can vary in response to many factors
including changes to relevant environmental laws and regulations requirements, the emergence of
new restoration techniques or experience at other mine sites. As a result, there could be significant
adjustments to the provisions established which would affect future financial results. Refer to Note
26 for further details.
159 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
(f) Income tax
Significant judgment is required in determining the provision for income taxes. There are
transactions and calculations for which the ultimate tax determination is uncertain during the
ordinary course of business. The Group and Company recognise liabilities for anticipated tax audit
issues based on estimates of whether additional taxes will be due. Where the final tax outcome of
these matters is different from the amounts that were initially recorded, such differences will impact
the income tax and deferred tax provisions in the period in which such determination is made.
Judgement is also required to determine whether deferred tax assets are recognised in the
consolidated statements of financial position. Deferred tax assets, including those arising from
unutilised tax losses, require the Group to assess the probability that the Group will generate
sufficient taxable earnings in future periods, in order to utilise recognised deferred tax assets.
Assumptions about the generation of future taxable profits depend on management’s estimates of
future cash flows. These estimates of future taxable income are based on forecast cash flows from
operations (which are impacted by production and sales volumes, commodity prices, reserves,
operating costs, closure and rehabilitation costs, capital expenditure, dividends and other capital
management transactions). To the extent that future cash flows and taxable income differ
significantly from estimates, the ability of the Group to realise the net deferred tax assets could be
impacted.
In addition, future changes in tax laws in the jurisdictions in which the Group operates could limit the
ability of the Group to obtain tax deductions in future periods.
(g) Inventory
Net realisable value tests are performed at each reporting date and represent the estimated future
sales price of the product the entity expects to realise when the product is processed and sold, less
estimated costs to complete production and bring the product to sale. Where the time value of
money is material, these future prices and costs to complete are discounted.
(h) Leases - Estimating the incremental borrowing rate
The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its
incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the
Group would have to pay to borrow over a similar term, and with a similar security, the funds
necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic
environment. The IBR therefore reflects what the Group ‘would have to pay’, which requires
estimation when no observable rates are available (such as for subsidiaries that do not enter into
financing transactions) or when they need to be adjusted to reflect the terms and conditions of the
lease (for example, when leases are not in the subsidiary’s functional currency). The Group estimates
the IBR using observable inputs (such as market interest rates) when available and is required to
make certain entity-specific estimates (such as the subsidiary’s stand-alone credit rating).
(i) Contingent liabilities
A contingent liability arises where a past event has taken place for which the outcome will be
confirmed only by the occurrence or non-occurrence of one or more uncertain events outside of the
control of the Group, or a present obligation exists but is not recognised because it is not probable
that an outflow of resources will be required to settle the obligation.
A provision is made when a loss to the Group is likely to crystallise. The assessment of the existence
of a contingency and its likely outcome, particularly if it is considered that a provision might be
necessary, involves significant judgment taking all relevant factors into account.
(j) Share-based compensation benefits
Share based compensation benefits are accounted for in accordance with the fair value recognition
provisions of IFRS 2 “Share-based Payment”. As such, share-based compensation expense for equity-
settled share-based payments is measured at the grant date based on the fair value of the award and
is recognised as an expense over the vesting period. The fair value of such share-based awards at the
grant date is measured using the Black Scholes pricing model. The inputs used in the model are
based on management’s best estimates for the effects of non-transferability, exercise restrictions,
behavioural considerations and expected volatility. Please refer to Note 23.
160 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
(k) Consolidation of Cobre San Rafael
Cobre San Rafael, S.L. is the entity which holds the mining rights of Proyecto Touro. The Group
controls Cobre San Rafael, S.L. as it is exposed to variable returns from its involvement with the
subsidiary and has the ability to affect those returns through its power over the subsidiary. The
control is proven as: one of the two Directors belongs to the Group and management of the financial
books and the capacity to appoint the key personnel is controlled by Atalaya.
(l) Classification of financial assets
Financial assets are classified, at initial recognition, and subsequently measured at amortised cost,
fair value through OCI, or fair value through profit or loss.
The Group and Company exercises judgement upon determining the classification of its financial
assets upon considering whether contractual features including interest rate could significantly
affect future cash flows. Furthermore, judgment is required when assessing whether compensation
paid or received on early termination of lending arrangements results in cash flows that are not ‘solely
payments of principal and interest (SPPI).
(n) Determining the lease term of contracts with renewal options
The Group determines the lease term as the non-cancellable term of the lease, together with any
periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any
periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.
The Group has the option, under some of its leases to lease the assets for additional terms of three to
five years. The Group applies judgement in evaluating whether it is reasonably certain to exercise the
option to renew. That is, it considers all relevant factors that create an economic incentive for it to
exercise the renewal. After the commencement date, the Group reassesses the lease term if there is
a significant event or change in circumstances that is within its control and affects its ability to
exercise (or not to exercise) the option to renew (e.g., a change in business strategy). The Group
included the renewal period as part of the lease term for leases of plant and machinery due to the
significance of these assets to its operations. These leases have a short non-cancellable period (i.e.,
three to five years) and there will be a significant negative effect on production if a replacement is
not readily available. The renewal options for leases of motor vehicles were not included as part of
the lease term because the Group has a policy of leasing motor vehicles for not more than five years
and hence not exercising any renewal options.
161 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
4. Segments
Segments
The Group has only one distinct business segment, that being mining operations, which include
mineral exploration and development.
Copper concentrates produced by the Group are sold to three offtakers as per the relevant offtake
agreement (Note 30.3).
Geographical areas of operations
The Group’s mining activities are located in Spain. The commercialisation of the copper concentrates
produced in Spain is carried out through Cyprus. Sales transactions to related parties are on arm’s
length basis in a similar manner to transaction with third parties. Accounting policies used by the
Group in different locations are the same as those contained in Note 2.
The table below presents an analysis of revenue from external customers based on their geographical
location, determined by the country of establishment of each customer.
Revenue – from external customers
Switzerland
2023
€'000
340,346
2022
€'000
361,846
The table below presents revenues from external customers attributed to the country of domicile of
the Company.
Revenue – from external customers
Cyprus
Spain
2023
€'000
25,712
314,634
340,346
2022
€'000
30,662
331,184
361,846
The geographical location of the specified non-current assets is based on the physical location of the
asset in the case of property, plant and equipment and intellectual property and the location of the
operation to which they are allocated in the case of goodwill.
Non-current assets
Spain
2023
€'000
434,136
434,136
2022
€'000
408,738
408,738
Revenue represents the sales value of goods supplied to customers; net of value added tax. The
following table summarises sales to customers with whom transactions have individually exceeded
10.0% of the Group's revenues.
(Euro 000’s)
Offtaker 1
Offtaker 2
Offtaker 3
2023
2022
Segment
€’000
Segment
Copper
Copper
Copper
80,031
76,688
183,596
Copper
Copper
Copper
€’000
71,839
108,158
181,822
162 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
5. Revenue
THE GROUP
(Euro 000’s)
Revenue from contracts with customers (1)
Fair value gain relating to provisional pricing within sales (2)
Total revenue
2023
344,940
(4,594)
2022
371,303
(9,457)
340,346
361,846
All revenue from copper concentrate is recognised at a point in time when the control is transferred.
Revenue from freight services is recognised over time as the services are provided.
(1)
Included within 2023 revenue there is a transaction price of €9.8 million (€7.6 million in
2022) related to the freight services provided by the Group to the customers arising from
the sales of copper concentrate under CIF incoterm.
(2) Provisional pricing impact represented the change in fair value of the embedded derivative
arising on sales of concentrate.
THE COMPANY
(Euro 000’s)
Sales of services to related companies (Note 30.3)
Dividends
Total revenue
2023
5,012
-
5,012
2022
2,756
55,000
57,756
163 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
6. Expenses by nature
THE GROUP
(Euro 000’s)
Operating costs
Care and maintenance expenditure
Exploration expenses
Employee benefit expense (Note 7)
Compensation of key management personnel (Note 30.2)
Auditors’ remuneration – audit
Other assurance
Other accountants’ remuneration
Consultants’ remuneration
Depreciation of property, plant and equipment (Note 13)
Amortisation of intangible assets (Note 14)
Share option-based employee benefits (Note 23)
Shareholders’ communication expense
On-going listing costs
Legal costs
Public relations and communication development
Rents (Note 27)
Other expenses and provisions
Total
THE COMPANY
(Euro 000’s)
Key management remuneration (Note 30.2)
Auditors’ remuneration – audit
Other accountants’ remuneration
Consultants’ remuneration
Management fees (Note 30.3)
Travel costs
Shareholders’ communication expense
On-going listing costs
Legal costs
Insurances
Other expenses and provisions
Total
2023
2022
208,416
11,511
5,103
25,756
2,230
584
20
385
4,977
33,307
4,493
661
232
521
1,779
711
5,682
314
306,682
246,840
15,603
3,723
24,556
2,189
345
-
138
1,087
29,637
4,482
1,279
305
533
1,469
1,035
5,678
2,038
340,937
2023
605
263
341
1,352
19
5
232
521
1,771
82
631
5,822
2022
540
139
57
224
66
2
305
533
1,258
84
392
3,600
164 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
7. Employee benefit expense
THE GROUP
(Euro 000’s)
Wages and salaries
Social security and social contributions
Employees’ other allowances
Bonus to employees
2023
18,836
6,246
18
656
2022
18,438
5,659
16
443
Total
25,756
24,556
The average number of employees and the number of employees at year end by office are:
Number of employees
Spain – Full time
Spain – Part time
Cyprus – Full time
Cyprus – Part time
Total
Average
At year end
2023
479
6
1
2
2022
492
4
1
2
2023
476
6
1
2
2022
489
5
1
2
488
499
485
497
THE COMPANY
The company had no employees during the year ended 31 December 2023 and 2022.
8. Finance income
THE GROUP
(Euro 000’s)
Financial interests
Other received interests
Unwinding of discount on mine rehabilitation provision (Note 26)
Total
THE COMPANY
(Euro 000’s)
Interest income from interest-bearing intercompany loans at fair value
through profit and loss (Note 30.3)
Interest income from interest-bearing intercompany loans at
amortised cost (Note 30.3)
Financial interests
Total
2023
1,501
3,892
-
5,393
2022
244
-
380
624
2023
2022
-
14,087
517
9,157
3,743
36
14,604
12,936
Financial interests relate to interest received on bank balances.
Other received interests mainly comprise the €3.5 million interest received as a result of the
agreement reached with Astor in May 2023.
165 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
9. Finance costs
THE GROUP
(Euro 000’s)
Interest expense:
Other interest
Interest expense on lease liabilities
Unwinding of discount on mine rehabilitation provision (Note 26)
2023
2022
2,607
1,025
25
690
20
-
3,322
1,045
Other interests include the financing costs related to Astor and Solar plant facilities.
10. Tax
THE GROUP
(Euro 000’s)
Current income tax charge
Deferred tax income relating to the origination of temporary differences
(Note 17)
Deferred tax expense relating to reversal of temporary differences (Note
17)
2023
3,419
(6,852)
2022
3,123
(4,544)
2,863
2,815
(570)
1,394
The tax on the Group’s results before tax differs from the theoretical amount that would arise using
the applicable tax rates as follows:
(Euro 000’s)
Accounting profit before tax
Tax calculated at the applicable tax rates of the Company – 12.5%
Tax effect of expenses not deductible for tax purposes
Tax effect of tax loss for the year
Tax effect of allowances and income not subject to tax
Effect of higher tax rates in other jurisdictions of the group
Tax effect of tax losses brought forward
Deferred tax (Note 17)
Tax (credit)/ charge
THE COMPANY
(Euro 000’s)
Current income tax charge
2023
2022
36,093
4,512
3,290
(1,271)
(4,381)
993
276
(3,989)
(570)
32,320
4,040
1,029
3,819
(7,857)
2,092
-
(1,729)
1,394
2023
2022
579
579
617
617
Tax losses carried forward
As at 31 December 2023, the Group had tax losses carried forward amounting to €6 million from the
Spanish subsidiaries.
166 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
Cyprus
The corporation tax rate is 12.5%. Under certain conditions interest income may be subject to defence
contribution at the rate of 30%. In such cases this interest will be exempt from corporation tax. In
certain cases, dividends received from abroad may be subject to defence contribution at the rate of
17% for 2014 and thereafter. Under current legislation, tax losses may be carried forward and be set
off against taxable income of the five succeeding years.
Companies which do not distribute 70% of their profits after tax, as defined by the relevant tax law,
within two years after the end of the relevant tax year, will be deemed to have distributed as dividends
70% of these profits. Special contribution for defence at 20% for the tax years 2012 and 2013 and 17%
for 2014 and thereafter will be payable on such deemed dividends to the extent that the shareholders
(companies and individuals) are Cyprus tax residents and Cyprus domiciled. The amount of deemed
distribution is reduced by any actual dividends paid out of the profits of the relevant year at any time.
This special contribution for defence is payable by the Company for the account of the shareholders.
Spain
The corporation tax rate for 2023 and 2022 is 25%. The recent Spanish tax reform approved in 2014
reduced the general corporation tax rate from 30% to 28% in 2015 and to 25% in 2016, and introduced,
among other changes, a 10% reduction in the tax base subject to equity increase and other
requirements. Under current legislation, tax losses may be carried forward and be set off against
taxable income with no limitation.
11. Earnings per share
The calculation of the basic and diluted earnings per share attributable to the ordinary equity holders
of the Company is based on the following data:
(Euro 000’s)
Parent company
Subsidiaries
Profit attributable to equity holders of the parent
Weighted number of ordinary shares for the purposes of basic earnings per
share (‘000)
Basic earnings per share (EUR cents/share)
Weighted number of ordinary shares for the purposes of diluted earnings
per share (‘000)
Diluted earnings per share (EUR cents/share)
2023
(6,255)
45,024
38,769
2022
(676)
33,831
33,155
139,880
139,757
27.7
23.7
144,224
142,834
26.9
23.2
At 31 December 2023 there are nil warrants and 4,848,500 options (Note 22) (31 December 2022: nil
warrants and 3,543,500 options) which have been included when calculating the weighted average
number of shares for FY2023.
167 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
12. Dividends
Cash dividends declared and paid during the year:
(Euro 000’s)
Final dividends declared and paid
Interim dividends declared and paid
2023
4,956
6,522
11,478
2022
-
5,099
5,099
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
In March 2023, the Board of Directors proposed a final dividend for 2022 of US$0.0385 per ordinary
share, which was equivalent to approximately 3.15 pence per share. Following the approval of
Resolution 10 by the Company's shareholders at its 2023 Annual General Meeting, which took place
on 28 June 2023, the 2022 final dividend was paid on 8 August 2023.
On 9 August 2023, the Company’s Board of Directors declared an Interim Dividend for 2023 of
US$0.05 per ordinary share, which is equivalent to approximately 3.9 pence per share. The Interim
Dividend was paid on 28 September 2023 using foreign exchange rates announced on 12 September
2023.
A final dividend of US$0.04 per share has been proposed for approval by shareholders at the 2024
Annual General Meeting. This would give a total dividend in respect of 2023 of US$0.09 per share.
168 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
13. Property, plant and equipment
(Euro 000’s)
2023
Cost
Land and
buildings
Right
of use
assets
(5)
Plant and
equipment
Assets
under
construction
(3)
Deferred
mining
costs (2)
Other
assets
(1)
Total
At 1 January 2023
80,326
7,076
291,335
50,235
52,358
36
3,145
-
10
-
-
-
-
6,011
42,149
11,714
-
-
21,783
(21,783)
-
-
-
-
-
872
79
-
-
-
482,202
59,782
3,145
-
10
83,517
7,076
319,129
70,601
64,072
951
545,346
At 1 January 2023
20,454
1,998
89,182
Adjustments
-
-
6
Opening adjusted
20,454
1,998
89,188
4,248
533
24,702
2,531
24,359
113,547
-
-
-
-
-
14,921
739
127,294
-
14,921
4,142
19,063
-
739
25
764
6
127,300
33,307
160,607
58,815
4,545
205,582
70,601
45,009
187
384,739
65,003
7,076
283,346
22,860
51,667
801
430,753
2,383
1,727
15,300
103
(4,190)
-
-
-
-
-
1,262
-
6,727
-
-
49,473
691
-
(22,098)
-
-
-
-
-
-
-
-
71
-
-
53,809
1,727
-
103
(4,190)
80,326
7,076
291,335
50,235
52,358
872
482,202
16,026
1,546
4,428
452
20,454
1,998
67,991
21,191
89,182
-
-
-
11,380
3,541
14,921
714
25
739
97,657
29,637
127,294
Additions
Increase in rehab. Provision
(Note 26)
Reclassifications (4)
Advances
31 Dec 2023
Depreciation
Charge for the year
31 Dec 2023
Net book value at 31
December 2023
2022
Cost
1 Jan 2022
Additions
Increase in rehab. provision
Reclassifications
Advances
Write-off
31 Dec 2022
Depreciation
At 1 January 2022
Charge for the year
31 Dec 2022
Net book value at 31 December
2022
59,872
5,078
202,153
50,235
37,437
133
354,908
(1) Includes motor vehicles, furniture, fixtures and office equipment which are depreciated over 5-10
years.
(2) Stripping costs
(3) Assets under construction at 31 December 2023 amounted to €70.6 million (2022: €50.2 million)
which include sustaining capital expenditures, tailings dams project, ELIX plant and solar plant.
169 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
(4) Transfers including sustaining Capex (€20.6 million).
(5) See leases in Note 27.
The Group
The above fixed assets are mainly located in Spain.
THE COMPANY
(Euro 000’s)
2023
Cost
At 1 January 2023
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
At 31 December 2023
Net book value at 31 December 2023
2022
Cost
At 1 January 2022
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
At 31 December 2022
Net book value at 31 December 2022
Other
assets(1)
Total
15
15
15
-
15
-
15
15
15
-
15
-
15
15
15
-
15
-
15
15
15
-
15
-
(1)
Includes furniture, fixtures and office equipment which were depreciated over 5-10 years.
170 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
14. Intangible assets
THE GROUP
(Euro 000’s)
2023
Cost
On 1 January 2023
Additions
Disposals
At 31 December 2023
Amortisation
On 1 January 2023
Charge for the year
At 31 December 2023
Net book value at 31 December 2023
2022
Cost
On 1 January 2022
Additions
At 31 December 2022
Amortisation
On 1 January 2022
Charge for the year
At 31 December 2022
Net book value at 31 December 2022
Licences, R&D
and Software
Permits (1)
Total
81,255
144
(200)
81,199
27,627
4,453
32,080
49,119
80,358
897
81,255
23,214
4,413
27,627
53,628
8,642
89,897
116
-
260
(200)
8,758
89,957
8,440
40
8,480
278
8,595
47
8,642
8,371
69
8,440
202
36,067
4,493
40,560
49,397
88,953
944
89,897
31,585
4,482
36,067
53,830
(1) Permits also include the mining rights of Proyecto Touro, Masa Valverde and Ossa Morena
The ultimate recovery of balances carried forward in relation to areas of interest or all such assets
including intangibles is dependent on successful development, and commercial exploitation, or
alternatively the sale of the respective areas.
The Group conducts impairment testing in case there is an indicator of impairment. Atalaya assessed
its assets concluding that there are no indicators of impairment for either Proyecto Riotinto or any
other as of 31 December 2023.
171 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
15. Investment in subsidiaries
(Euro 000’s)
THE COMPANY
Opening amount at cost minus provision for impairment
Increase of investment (1) (2) (3)
Closing amount at cost less provision for impairment
2023
2022
74,910
217,225
292,135
64,171
10,739
74,910
The directly owned subsidiaries of the Group, the percentage of equity owned and the main country
of operation are set out below. These interests are consolidated within these financial statements.
Subsidiary companies
Atalaya Touro (UK) Ltd
Date of
incorporation/
acquisition
10 March
2017
Principal
activity
Country of
incorporation
Holding
AMP (1)
EMED Marketing Ltd
Atalaya Financing Ltd (3)
10 Sep 2008
8 Sep 2008
16 Sep 2020
Holding
Trading
Financing
Effective
proportion
of shares
held in
2023(2)
100%
Effective
proportion
of shares
held in
2022(2)
100%
100%
100%
100%
100%
100%
100%
United
Kingdom
United
Kingdom
Cyprus
Cyprus
(1) €0.7 million related to share-based payment expense (FY2022: €10.8 million).
(2) The effective proportion of shares held as at 31 December 2023 and 2022 remained unchanged.
(3 ) €216.5 million attributable to the transfer of intercompany loans from ATYM to Atalaya Financing
Ltd. through a share capital raise. (FY2022: €nil) (note 19 & 30.4).
16. Investment in joint venture
Company name
Principal activities
Recursos Cuenca Minera
S.L.
Exploitation of tailing
dams and waste areas
resources
Country of
incorporation
Effective proportion of shares
held at 31 December 2015
Spain
50%
In 2012, ARM initiated a 50/50 joint venture with Rumbo to assess and leverage the potential of class
B resources within the tailings dam and waste areas at The Proyecto Riotinto. Pursuant to the joint
venture agreement, ARM served as the operator and reimbursed Rumbo for the expenses linked to
the classification application for the Class B resources. ARM covered the initial expenses for a
feasibility study, with a maximum funding limit of €2.0 million. Subsequent costs were shared by the
joint venture partners in accordance with their respective ownership interests.
172 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
The Group’s significant aggregate amounts in respect of the joint venture are as follows:
(Euro 000’s)
Intangible assets
Trade and other receivables
Cash and cash equivalents
Trade and other payables
Net assets
Revenue
Expenses
Net profit/(loss) after tax
17. Deferred tax
31 Dec 2023
31 Dec 2022
94
3
19
(115)
1
-
-
-
94
2
21
(115)
2
-
-
-
Consolidated
statement of
financial position
Consolidated income
statement
(Euro 000’s)
2023
2022
2023
2022
THE GROUP
Deferred tax asset
At 1 January
Deferred tax income relating to the origination of
temporary differences (Note 10)
Deferred tax expense relating to reversal of
temporary differences (Note 10)
At 31 December
7,293
5,564
-
-
6,852
4,544
(6,852)
(4,544)
(2,863)
11,282
(2,815)
7,293
2,863
2,815
Deferred tax income/(expense) (Note 10)
(3,989)
(1,729)
Deferred tax assets are recognised for the carry-forward of unused tax losses and unused tax credits
to the extent that it is probable that taxable profits will be available in the future against which the
unused tax losses/credits can be utilised. The Group held tax losses amounted to €6 million in Spain
(2022: €4.4 million).
18. Inventories
(Euro 000’s)
THE GROUP
Finished products
Materials and supplies
Work in progress
31 Dec 2023
31 Dec 2022
8,416
21,852
3,046
33,314
4,547
31,330
2,964
38,841
As at 31 December 2023, copper concentrate produced and not sold amounted to 6,722 tonnes
(FY2022: 3,529 tonnes). Accordingly, the inventory for copper concentrate was €8.4 million (FY2022:
€4.5 million). During the year 2023 the Group recorded cost of sales amounting to €247.3 million
(FY2022: €289.6 million).
Materials and supplies relate mainly to machinery spare parts. Work in progress represents ore
stockpiles, which is ore that has been extracted and is available for further processing.
173 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
19. Trade and other receivables
(Euro 000’s)
THE GROUP
Non-current trade and other receivables
Deposits
Loans
Prepayments for service contract
Other non-current receivables
Current trade and other receivables
Trade receivables at fair value – subject to provisional pricing
Trade receivables from shareholders at fair value – subject to provisional
pricing (Note 30.5)
Other receivables from related parties at amortised cost (Note 30.4)
Deposits
VAT receivable
Tax advances
Prepayments
Other current assets
Allowance for expected credit losses
Total trade and other receivables
(Euro 000’s)
THE COMPANY
Non-current trade and other receivables
Receivables from own subsidiaries at amortised cost (Note 30.4)
Receivables from own subsidiaries at fair value through profit and loss
(Note 30.4)
2023
2022
307
233
23,476
2,686
26,702
10,110
5,054
56
37
256
-
12,865
3,241
16,362
14,757
12,800
56
37
21,003
28,856
-
5,855
782
42,897
-
9
5,845
1,795
64,155
-
69,599
80,517
2023
2022
227
-
227
245,657
14,247
259,904
Current trade and other receivables
Receivables from own subsidiaries at amortised cost (Note 30.4)
70,797
48,774
Other receivables
Total current trade and other receivables
58
57
70,855
48,831
174 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
Trade receivables are shown net of any interest applied to prepayments. Payment terms are aligned
with offtake agreements and market standards and generally are 7 days on 90% of the invoice and
the remaining 10% at the settlement date which can vary between 1 to 5 months. The fair value of
trade and other receivables approximate their book values.
Non-current deposits included €250k (€250k at 31 December 2022) as a collateral for bank
guarantees, which was recorded as restricted cash (or deposit).
The prepayments for the service contract relate to an agreement entered into between the Group
and Lain Technologies Ltd for the construction of an industrial plant using the E-LIX technology,
which is currently under construction at Proyecto Riotinto. This technology system is a newly
developed electrochemical extraction process that utilises singular catalysts and physiochemical
conditions to dissolve the valuable metals contained within sulphide concentrates. Lain Technologies
Ltd. developed and fully owns the E-LIX System. According to the agreement, once the Industrial
Plant at Proyecto Riotinto is operational, the Group will have access to (i) the use of E-LIX Technology
to extract cathodes and (ii) exclusivity in the use of the E-LIX Technology on concentrates extracted
from the Iberian Pyrite Belt for eight years.
20. Other Financial assets
THE GROUP
(Euro 000’s)
Financial asset at fair value through OCI (see (a) below)
Total current
Total non-current
THE COMPANY
(Euro 000’s)
31 Dec 2023
31 Dec 2022
1,131
30
1,101
1,134
33
1,101
31 Dec 2023
31 Dec 2022
Financial asset at fair value through OCI (see (a) below)
Total current
30
30
33
33
a) Financial assets at fair value through OCI
THE GROUP
(Euro 000’s)
At 1 January
Fair value change recorded in equity (Note 23)
At 31 December
THE COMPANY
(Euro 000’s)
At 1 January
Fair value change recorded in equity (Note 23)
At 31 December
175 | Atalaya Mining plc 2023 Annual Report
31 Dec 2023
31 Dec 2022
1,134
(3)
1,131
1,140
(6)
1,134
31 Dec 2023
31 Dec 2022
33
(3)
30
39
(6)
33
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
Company name
Principal activities
Country of
incorporation
Effective proportion of
shares
held at 31 December 2023
Explotaciones Gallegas
del Cobre SL
KEFI Minerals Plc
Exploration company
Spain
Exploration and
development mining
company listed on AIM
UK
12.5%
0.19%
Prospech Limited
Exploration company
Australia
0.53%
The Group decided to recognise changes in the fair value through Other Comprehensive Income
(‘OCI’), as explained in Note 2.12.
21. Cash and cash equivalents
THE GROUP
(Euro 000’s)
Unrestricted cash and cash equivalents at Group level
Unrestricted cash and cash equivalents at Operation level
Restricted cash and cash equivalents at Operation level
Consolidated cash and cash equivalents
31 Dec 2023
31 Dec 2022
94,868
26,139
-
121,007
108,550
17,567
331
126,448
Restricted cash amounted at 31 December 2022 to €0.3 million was held in escrow, which
represented funds utilized by the Company to cover interest payments of €9.6 million on 7 and 8
April 2022 (following the trial in February and March 2022) and €1.1 million on 16 May 2022 to Astor
under the Master Agreement. However, due to the settlement reached with Astor on 17 May 2023
whereby Astor agreed to repay €3.5 million of interest previously paid to it to finalise the litigation,
the previously restricted cash has now been released and reversed.
Cash and cash equivalents denominated in the following currencies:
(Euro 000’s)
31 Dec 2023
31 Dec 2022
Euro – functional and presentation currency
Great Britain Pound
United States Dollar
THE COMPANY
(Euro 000’s)
Cash at bank and on hand
Cash and cash equivalents denominated in the following
currencies:
Euro – functional and presentation currency
Great Britain Pound
United States Dollar
50,470
52
70,485
121,007
84,146
895
41,407
126,448
31 Dec 2023
31 Dec 2022
58,958
39,472
36,191
38,496
41
879
22,726
97
58,958
39,472
176 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
22. Share capital
Authorised
Ordinary shares of Stg £0.075 each*
200,000
15,000
-
15,000
Shares
Share Capital
Share premium
Total
000’s
Stg£’000
Stg£’000
Stg£’000
Issued and fully paid
Issue Date
31 December 2021/1 January
2022
Price
(£)
Details
Shares
Share
Capital
Share
premium
000’s
€'000
€'000
Total
€'000
138,236
13,447
315,916
329,363
22-Jan-22
22-Jan-22
22-Jan-22
22-Jan-22
22-Jan-22
23-Jun-22
31-Dec-22
31-Dec-23
1.44
2.015
Exercised share options
(b)
Exercised share options
(b)
2.045
Exercised share options
(b)
1.475
3.09
1.475
Exercised share options
(b)
Exercised share options
(b)
Exercised share options
(a)
314
321
400
451
135
23
28
29
36
42
12
2
512
746
941
754
505
37
540
775
977
796
517
39
139,880
139,880
13,596
13,596
319,411
319,411
333,007
333,007
* The Company´s share capital at 31 December 2023 is 139,879,209 ordinary shares (139,879,209 in
2022) of Stg £0.075 each.
Authorised capital
The Company’s authorised share capital is 200,000,000 ordinary shares of £0.075 each.
Issued capital
No share issuance has taken place in FY2023.
(a) On 23 June 2022, the Company announced that it has issued 22,500 ordinary shares of 7.5p
in the Company (“Option Shares”) pursuant to an exercise of share options by an employee.
(b) On 26 January 2022, the Company announced that is was notified that PDMRs exercised a
total of 1,350,000 options. Further details (including details of sales of shares following the
exercise of options) are given in Note 23.
177 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
23. Other reserves
THE GROUP
(Euro 000’s)
At 1 January 2022
Recognition of depletion factor
Recognition of non-distributable reserve
Recognition of distributable reserve
Recognition of share based payments(5)
Change in fair value of financial assets at fair value
through OCI (Note 20)
Share
option
(5)
Bonus
share
Depletion
factor (1)
9,086
208
-
-
-
1,279
-
-
-
-
-
-
24,978
12,800
-
-
-
-
FV
reserve
of
financial
assets at
FVOCI (2)
(1,147)
-
-
-
-
(6)
Non-
distributable
reserve (3)
Distributable
reserve(4)
8,000
11,565
-
316
-
-
-
-
-
2,726
-
-
Total
52,690
12,800
316
2,726
1,279
(6)
At 31 December 2022
10,365
208
37,778
(1,153)
8,316
14,291
69,805
Recognition of share based payments
Change in fair value of financial assets at fair value
through OCI (Note 20)
661
-
-
-
-
-
-
(3)
-
-
-
-
661
(3)
At 31 December 2023
11,026
208
37,778
(1,156)
8,316
14,291
70,463
THE COMPANY
(Euro 000’s)
At 1 January 2022
Recognition of share based payments(5)
Change in fair value of financial assets at fair value through
OCI (Note 20)
At 31 December 2022
Recognition of share based payments
Change in fair value of financial assets at fair value
through OCI (Note 20)
At 31 December 2023
Fair value
reserve of
financial
assets at
FVOCI (2)
Share
option (5)
Bonus
share
9,086
1,279
-
208
(1,147)
-
-
-
(6)
Total
8,147
1,279
(6)
10,365
208
(1,153)
9,420
661
-
-
-
-
(2)
661
(2)
11,026
208
(1,155)
10,079
(1) Depletion factor reserve
During the twelve month period ended 31 December 2023, the Group has recognised €nil
(FY2022: addition of €12.8 million) as a depletion factor reserve as per the Spanish Corporate Tax
Act.
(2)
Fair value reserve of financial assets at FVOCI
The Group decided to recognise changes in the fair value of certain investments in equity
securities in OCI. These changes are accumulated within the FVOCI reserve under equity. The
Group transfers amounts from this reserve to retained earnings when the relevant equity
securities are derecognised.
(3) Non-distributable reserve
As required by the Spanish Corporate Tax Act, the Group classified a non-distributable reserve
of 10% of the profits generated by the Spanish subsidiaries until the reserve is 20% of share
capital of the subsidiary.
178 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
(4) Distributable reserve
The Group reclassified at least 10% of the profit of 2022 to distributable reserves.
(5)
Share options
Details of share options outstanding as at 31 December 2023:
Grant date
Expiry date
Exercise price £
29 May 2019
30 Jun 2020
24 Jun 2021
26 Jan 2022
22 Jun 2022
22 May 2023
Total
28-May-2024
30 Jun 2030
23 Jun 2031
25 Jan 2032
30 Jun 2027
21 May 2028
At 1 January 2023
Granted options during the year
Options executed during the year
31 December 2023
2.015
1.475
3.090
4.160
3.575
3.270
Weighted average
exercise price £
2.857
3.270
-
2.968
Share
options
666,500
516,000
1,016,000
120,000
1,225,000
1,305,000
4,848,500
Share
options
3,543,500
1,305,000
-
4,848,500
On 23 May 2023, the Company announced that in accordance with the Company's Long Term
Incentive Plan 2020, it granted 1,305,000 share options to Persons Discharging Managerial
Responsibilities ("PDMRs") and other employees.
On 23 June 2022, the Company announced that it has issued 22,500 ordinary shares of 7.5p in the
Company (“Option Shares”) pursuant to an exercise of share options by an employee.
On 26 January 2022, the Company announced that is was notified that PDMRs exercised a total of
1,350,000 options.
In general, option agreements contain provisions adjusting the exercise price
in certain
circumstances including the allotment of fully paid ordinary shares by way of a capitalisation of the
Company’s reserves, a subdivision or consolidation of the ordinary shares, a reduction of share capital
and offers or invitations (whether by way of rights issue or otherwise) to the holders of ordinary shares.
The estimated fair values of the options were calculated using the Black Scholes option pricing
model. The inputs into the model and the results are as follows:
Grant
Date
23 Feb 2017
29 May 2019
8 July 2019
30 June 2020
23 June 2021
26 January 2022
22 June 2022
22 May 2023
Weighted
average
share price
£
Weighted
average
exercise
price £
Expected
volatility
Expected
life
(years)
Risk
Free
rate
Expected
dividend
yield
Estimated
Fair Value
£
1.440
2.015
2.045
1.475
3.090
4.160
3.575
3.270
1.440
2.015
2.045
1.475
3.090
4.160
3.575
3.270
51.8%
46.9%
46.9%
50.32%
50.91%
49.18%
34.12%
38.15%
5
5
5
10
10
10
5
5
0.6%
0.8%
0.8%
0.3%
0.7%
1.149%
2.748%
4.219%
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
0.666
0.66
0.66
0.60
0.81
1.12
0.71
0.88
The volatility has been estimated based on the underlying volatility of the price of the Company’s
shares in the preceding twelve months.
179 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
24. Non-controlling interest
(Euro 000’s)
Opening balance
On acquisition of a subsidiary
Share of total comprehensive income for the year
Closing balance
2023
(6,998)
-
(2,106)
(9,104)
2022
(4,909)
140
(2,229)
(6,998)
The Group has a 10% interest in Cobre San Rafael, S.L. acquired in July 2017 while the remaining 90%
is held by a non-controlling interest (Note 2.3 (b) (1)). The significant financial information with respect
to the subsidiary before intercompany eliminations as at and for the twelve month period ended 31
December 2023 and 2022 is as follows:
(Euro 000’s)
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Equity
Revenue
Loss for the year and total comprehensive income
Cobre San Rafael, S.L. was established on 13 June 2016.
2023
7,273
601
17,096
697
(9,918)
-
(2,341)
2022
6,976
551
14,478
824
(7,776)
-
(2,477)
25. Trade and other payables
THE GROUP
(Euro 000’s)
Non-current trade and other payables
Other non-current payables
Government grant
Current trade and other payables
Trade payables
Trade payables to shareholders (Note 30.5)
Accruals
VAT payable
Other
THE COMPANY
(Euro 000’s)
Current trade and other payables
Suppliers
Accruals
Payable to own subsidiaries (Note 30.4)
VAT payable
180 | Atalaya Mining plc 2023 Annual Report
31 Dec 2023
31 Dec 2022
2,003
202
2,205
2,000
15
2,015
70,303
84,806
179
3,395
391
1,654
232
3,322
259
1,403
75,922
90,022
31 Dec 2023
31 Dec 2022
477
1,501
-
391
2,369
284
1,034
3,825
259
5,402
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
Other non-current payables are related with the acquisition of Atalaya Masa Valverde SL formerly
Cambridge Minería España, SL and Atalaya Ossa Morena SLU formerly Rio Narcea Nickel, SL.
Trade payables are mainly for the acquisition of materials, supplies and other services. These payables
do not accrue interest and no guarantees have been granted. The fair value of trade and other
payables approximate their book values.
The Group’s exposure to currency and liquidity risk related to liabilities is disclosed in Note 3.
Trade payables are non-interest-bearing and are normally settled on 60-day terms.
26. Provisions
(Euro 000’s)
At 1 January 2022
Additions
Reclassification
Used of provision
Reversal of provision
Finance income (Note 8)
At 31 December 2022
Additions
Used of provision
Increase of provision
Finance cost (Note 9)
At 31 December 2023
(Euro 000’s)
Non-Current
Current
Total
Rehabilitation provision
Other
provisions
-
-
1,435
-
-
-
1,435
-
(685)
-
-
750
Legal costs
279
30
-
(10)
(73)
-
226
1
-
-
-
227
Rehabilitati
on costs
26,299
1,033
-
(81)
(3,497)
(380)
23,374
-
(518)
3,145
690
26,691
Total costs
26,578
1,063
1,435
(91)
(3,570)
(380)
25,035
1
(1,203)
3,145
690
27,668
2023
27,234
434
27,668
2022
24,083
952
25,035
Rehabilitation provision represents the estimated cost required for adequate restoration and
rehabilitation upon the completion of production activities. These amounts will be settled when
rehabilitation is undertaken, generally over the project’s life.
During 2020, Management engaged an independent consultant to review and update the
rehabilitation liability. The updated estimation includes the expanded capacity of the plant and its
impact on the mining project.
The discount rate used in the calculation of the net present value of the liability as at 31 December
2023 was 3.62% (2022: 3.41%), which is the 15-year Spain Government Bond rate for 2023. An inflation
rate of 1%-5.70% (2022: 1%-5.70%) is applied on annual basis.
The reserves for Proyecto Riotinto are derived from the comprehensive technical report on the
mineral resources and reserves, titled “Technical Report On the Riotinto Copper Project.” The report,
dated September 2022, supersedes the previous December 2020 reference, offering the latest and
most accurate data available. It includes detailed assessments by qualified experts, ensuring a
reliable foundation for the project’s proven and probable reserves, as well as measured and indicated
resources.
181 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
The expected payments for the rehabilitation work are as follows:
(Euro 000 ’s)
Expected payments for rehabilitation of the mining site,
discounted
Legal provision
Between
1 – 5
Years
Between
6 – 10
Years
More
than 10
years
8,563
3,275
14,853
The Group has been named as defendant in several legal actions in Spain, the outcome of which is
not determinable as at 31 December 2023. Management has reviewed individually each case and
made a provision of €227k (€226k in 2022) for these claims, which has been reflected in these
consolidated financial statements.
Other provisions
Other provisions are related with the called-up equity holdings of Atalaya Masa Valverde S.L.
27. Leases
(Euro 000’s)
Non-current
Leases
Current
Leases
31 Dec 2023
31 Dec 2022
3,877
3,877
501
501
4,378
4,378
536
536
The Group entered into lease arrangements for the renting of land and a warehouse which are
subject to the adoption of all requirements of IFRS 16 Leases (Note 2.2). The Group has elected not to
recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12
months or less and leases of low-value assets.
Amounts recognised in the statement of financial position and profit or loss
Set out below are the carrying amounts of the Group’s right-of-use assets and lease liabilities and the
movements during the period:
(Euro 000’s)
Right – of-use assets
Lands and
buildings
Vehicles
Laboratory
equipment
As at 1 January 2023
Additions
Depreciation expense
Interest expense
Payments
As at 31 December 2023
5,048
-
(503)
-
-
4,545
-
-
-
-
-
-
30
-
(30)
-
-
-
Total
5,078
-
(533)
-
-
4,545
Lease
liabilities
4,914
-
-
25
(561)
4,378
182 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
The amounts recognised in profit or loss, are set out below:
(Euro 000’s)
As at 31 December
Depreciation expense of right-of-use assets
Interest expense on lease liabilities
Total amounts recognised in profit or loss
Twelve
month ended
31 Dec
2023
Twelve
month ended
31 Dec
2022
(533)
(25)
(558)
(452)
(20)
(472)
The Group recognised rent expense from short-term leases (Note 6).
The duration of the land and building lease is for a period of twelve years. Payments are due at the
beginning of the month escalating annually on average by 1.5%. At 31 December 2023, the remaining
term of this lease is six years. (Note 2)
The duration of the motor vehicle and laboratory equipment lease was for a period of four years,
payments are due at the beginning of the month escalating annually on average by 1.5%. At 31
December 2023, motor vehicle and laboratory equipment lease have been terminated.
Present value of minimum lease payments due
31 Dec 2023
31 Dec 2022
Within one year
2 to 5 years
Over 5 years
€'000
501
1,928
1,949
4,378
€'000
536
1,957
2,421
4,914
Minimum lease payments due
31 Dec 2023
31 Dec 2022
Within one year
2 to 5 years
Over 5 years
(Euro 000’s)
Balance 1 January 2023
Additions
Interest expense
Lease payments
Balance at 31 Dec 2023
Balance at 31 Dec 2023
-
-
Non-current liabilities
Current liabilities
183 | Atalaya Mining plc 2023 Annual Report
€'000
531
2,125
2,285
4,941
€'000
561
2,125
2,818
5,504
Lease liability
4,914
-
25
(561)
4,378
3,877
501
4,378
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
28. Borrowings
(Euro 000’s)
Non-current borrowings
Credit facilities
Current borrowings
Credit facilities
31 Dec 2023
31 Dec 2022
16,131
16,131
50,556
50,556
20,768
20,768
52,595
52,595
The Group had credit approval for unsecured facilities totalling €103.8 million (€119.3 million at 31
December 2022). During 2023, Atalaya drew down some of its existing credit facilities to financing
the construction of 50 MW solar plant (payable amount of €20.0 million at 31 December 2023) and in
2021 to pay the Deferred Consideration.
Borrowing with fixed interest rates range from 1.75% to 2.45% with an average fixed interest rate of
2.00%. Margins on borrowing with variable interest rates, usually 12 months EURIBOR, range from
0.95% to 2.00% with an average margin of 1.25%.
At 31 December 2023, the Group had used €65.3 million of its facilities and had undrawn facilities of
€38.5 million. Non-current borrowings include €1.2 million of an interest-free loan received from the
Ministerio de Ciencia e Innovacion and €0.2 million of accrued interest related to solar plant facilities.
29. Acquisition, incorporation and disposals of subsidiaries
2023
Acquisition and incorporation of subsidiaries
There were no acquisition or incorporation of subsidiaries during the year.
Disposals of subsidiaries
There were no disposals of subsidiaries during the year.
Wind-up of subsidiaries
There were no disposals of subsidiaries during the year.
2022
Acquisition and incorporation of subsidiaries
On 31 January 2022, Atalaya established a new entity, Iberian Polimetal S.L.U.
Disposals of subsidiaries
On 4 January 2022, the subsidiary EMED Mining Spain, S.L. was disposed.
Wind-up of subsidiaries
In 2022 the subsidiary EMED Mining Spain, S.L. was wounded up.
184 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
30. Group information and related party disclosures
30.1 Information about subsidiaries
These audited consolidated financial statements include:
Subsidiary companies
Parent
Principal
activity
Country of
incorporation
Atalaya Touro (UK) Ltd
Atalaya Mining Plc
Holding
Atalaya Financing Ltd
Atalaya MinasdeRiotinto Project (UK)
Ltd
EMED Marketing Ltd
Atalaya Riotinto Minera S.L.U.
Eastern Mediterranean Exploration
and Development S.L.U.
Cobre San Rafael, S.L. (1)
Recursos Cuenca Minera S.L.U.
Fundacion Atalaya Riotinto
Atalaya Servicios Mineros, S.L.U.
Atalaya Masa Valverde S.L.U.
Atalaya Ossa Morena S.L.U. (3)
Iberian Polimetal S.L.U.
Atalaya Mining Plc
Atalaya Mining Plc
Atalaya Mining Plc
Atalaya MinasdeRiotinto
Project (UK) Ltd
Atalaya MinasdeRiotinto
Project (UK) Ltd
Atalaya Touro (UK) Ltd
Atalaya Riotinto Minera
SLU
Atalaya Riotinto Minera
SLU
Atalaya MinasdeRiotinto
Project (UK) Ltd
Atalaya Servicios Mineros,
S.L.U.
Atalaya Servicios Mineros,
S.L.U.
Atalaya Servicios Mineros,
S.L.U.
Financing
Holding
Trading
Production
Dormant
Exploration
Dormant
Trust
Holding
Exploration
Effective
proportion
of shares
held
100%
100%
100%
100%
100%
100%
10%
J-V
100%
100%
100%
United
Kingdom
Cyprus
United
Kingdom
Cyprus
Spain
Spain
Spain
Spain
Spain
Spain
Spain
Exploration
Spain
99.9%
Dormant
Spain
100%
(1) Cobre San Rafael, S.L. is the entity which holds the mining rights of Proyecto Touro. The Group has
control in the government, key management and other key business aspects of Cobre San Rafael,
S.L., including one of the two Directors, management of the financial books and the capacity of
appointment the key personnel (Note 2.3 (b) (1)).
Transactions between Atalaya and Cobre San Rafael are not disclosed as related party interest as they
are fully eliminated as part of the consolidation process (Note 2.3 (b)).
(3) Rio Narcea Nickel, S.L.U. changed its name to Atalaya Ossa Morena, S.L.U on 31 January 2022. In July
2022, Atalaya increased its ownership interest in Proyecto Ossa Morena to 99.9%, up from 51%,
following completion of a capital increase that will fund exploration activities.
185 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
The following transactions were carried out with related parties:
30.2 Compensation of key management personnel
The total remuneration and fees of Directors (including executive Directors) and other key
management personnel was as follows:
The Group
The Company
(Euro 000’s)
Directors’ remuneration and fees
Director’s bonus (1)
Share option-based benefits to Directors
Key management personnel
remuneration (2)
Key management bonus (1)
Share option-based and other benefits
to key management personnel
2023
1,092
322
190
588
221
190
2022
1,028
357
426
571
239
417
2023
605
2022
540
-
-
-
-
-
-
-
-
-
-
2,603
3,038
605
540
(1) These amounts related to the approved performance bonus for 2022 by the Board of Directors
following the proposal of the Remuneration Committee. The 2023 estimates recorded are not
included in the table above as this is yet to be approved by the Board of Directors. There is no certainty
or guarantee that the Board of Directors will approve a similar amount for 2023 performance.
(2) Includes wages and salaries of key management personnel of €568k (2022: €551k) and other
benefits of €20k (2022: €20k). At 31 December 2023 amounts due to Directors, as from the Group, are
€nil (€nil at 31 December 2022) and €nil (€nil at 31 December 2022) to key management.
At 31 December 2023 amounts due to Directors, as from the Company, are €nil (€nil at 31 December
2022) and €nil (€nil at 31 December 2022) to key management.
Share-based benefits
On 23 May 2023, the Company announced that in accordance with the Company’s Long Term
Incentive Plan 2020 which was approved by shareholders at the Annual General Meeting on 28 June
2023, it had granted 1,305,000 share options, of which 800,000 to Persons Discharging Managerial
Responsibilities and 505,000 to other management.
The Options expire on 21 May 2028, five years from the deemed date of grant (22 May 2023), have an
exercise price of 327 pence per ordinary share, being the last mid-market closing price on the grant
date, and vest in three equal tranches, one third on grant and the balance equally on the first and
second anniversary of the grant date (see note 23).
During 2023 the Directors and key management personnel have not been granted any bonus shares
(2022: nil).
186 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
30.3 Transactions with shareholders and related parties
THE GROUP
(Euro 000’s)
Trafigura Pte Ltd – Revenue from contracts (a)
Gains/(Losses) relating provisional pricing within sales
Impala Terminals Huelva S.L.U. - Port Handling and
Warehousing services (b)
2023
78,723
1,308
80,031
2022
77,005
(5,165)
71,840
2,431
1,824
Related parties - total amounts from contracts
82,462
73,664
(a) Offtake agreement and spot sales to Trafigura
Offtake agreement
In May 2015, the Company agreed terms with key stakeholders in a capitalisation exercise to finance
the re-start of Proyecto Riotinto (the "2015 Capitalisation").
As part of the 2015 Capitalisation, the Company entered into offtake agreements with some of its
large shareholders, one of which was Trafigura Pte Ltd ("Trafigura"), under which the total forecast
concentrate production from Proyecto Riotinto was committed ("2015 Offtake Agreements").
During 2023, the company completed 6 sales transactions under the terms of the Offtake
Agreements valued at €36.9m (2022: 7 sales valued at €57.7m).
Spot Sales Agreements
Due to various expansions implemented at Proyecto Riotinto in recent years, volumes of concentrate
have been periodically available for sale outside of the Company's various offtake agreements.
In 2023, the Company completed 2 spot sales valued at €43.1m with Trafigura through amendments
to its existing offtake agreement (2022: 2 spot sales valued at €14.2m).
Sales transactions with related parties are at arm’s length basis in a similar manner to transactions
with third parties.
(b) Port Handling and Warehousing services
In September 2015, Atalaya entered into a services agreement with Impala Terminals Huelva S.L.U.
("Impala Terminals") for the handling, storage and shipping of copper concentrates produced from
Proyecto Riotinto.. The agreement covered total export concentrate volumes produced from
Proyecto Riotinto for three years for volumes not committed to Trafigura under its offtake agreement
and for the life of mine for the volumes committed to Trafigura under its offtake agreement.
In September 2018, the Company entered into an amendment to the 2015 Port Handling Agreement,
which included improved financial terms and a five year extension.
As at year end 31 December 2023 and 2022, Impala Terminals was part of the Trafigura Group, under
joint control.
The Company noted that the fees payable to Impala Terminals were not included in the related party
disclosure notes of the Groups's financial statements in previous years. During 2023, management
has carried out a reassessment of its relationship with Impala Terminals in accordance with IAS 24
requirements and has concluded that Impala Terminals is a related party of the Group. The required
disclosures of transactions and balances with Impala Terminals for the year ended 31 December 2023
and 2022 have been included. These transactions with related parties are at arm’s length basis in a
similar manner to transactions with third parties.
187 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
In December 2023, the Company entered into an extension of the service agreement with Impala
Terminals for the handling, storage and shipping of copper concentrates produced from Proyecto
Riotinto on similar terms than the 2015 agreement and the extension in 2018. This extension has a
term of approximately five years and covers the concentrate volumes produced for export from
Proyecto Riotinto that are not already committed to the Trafigura Group under its offtake agreement.
THE COMPANY
(Euro 000’s)
Sales of services (Note 5):
EMED Marketing Ltd
Atalaya Riotinto Minera SLU
Purchase of services (Note 6):
Atalaya Riotinto Minera SLU
Finance income (Note 8):
2023
2022
2,540
2,472
5,012
(19)
(19)
1,404
1,352
2,756
(66)
(66)
Atalaya Minasderiotinto Project (UK) Ltd – Finance income from interest-bearing
loan:
Credit agreement – at amortised cost
Participative loan – at fair value through profit and loss
Credit facility – at amortised cost
Restructuring loan – at amortised cost
-
-
-
14,087
14,087
989
9,157
1,465
1,289
12,900
30.4 Year-end balances with related parties
THE GROUP
(Euro 000’s)
Current assets - Receivable from related parties (Note 19):
Recursos Cuenca Minera S.L.
Total
31 Dec 2023
31 Dec 2022
56
56
56
56
The above balances bear no interest and are repayable on demand.
THE COMPANY
(Euro 000’s)
31 Dec 2023
31 Dec 2022
Non-current assets – Loan from related parties at FV through profit and loss (Note 19):
Atalaya Masa Valverde SL – Participative Loan (2) (3)
Atalaya Ossa Morena SL – Participative Loan (2) (3)
Atalaya Touro UK Ltd – Participative Loan (2) (3)
-
-
-
-
6,150
3,100
4,997
14,247
188 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
Non-current assets – Loans and receivables from related parties at amortised cost (Note
19):
Atalaya MinasdeRiotinto Project (UK) Ltd – Restructuring Loan (1)
-
245,258
Atalaya MinasdeRiotinto Project (UK) Ltd – Group cost sharing
227
227
399
245,657
Current assets – Loans and receivables from related parties at amortised cost (Note 19):
Atalaya Riotinto Minera SLU - Group cost sharing
EMED Marketing Ltd - Group cost sharing
EMED Marketing Ltd (2)
Atalaya Touro (UK) Ltd (2)
Atalaya MinasdeRiotinto Project (UK) Ltd
Atalaya Financing Ltd
3,824
3,686
15,390
1,654
45,000
1,243
70,797
1,352
664
-
1,650
45,000
108
48,774
(1)
(2)
This balance bears interest of EURIBOR 12month plus 3. 50%. The Participative loan was
cancelled on 30 November 2022. The Group signed on 1 December 2022 a new Loan
Restructuring Agreement for the amount due of the Participative Loan bearing a EURIBOR
12month plus 3.50% interest and maturing on 30 November 2028. On 29 December 2023, the
loan with a remaining balance of €195 million was transferred to Atalaya Financing Limited
in exchange for share capital raised (Note 15).
This balance bears no interest.
(3) On 29 December 2023, these loans with remaining balances of €21.3 million were
transferred to Atalaya Financing Limited in exchange for share capital raised (Note 15).
THE COMPANY
(Euro 000’s)
Payable to related party (Note 25):
EMED Marketing Ltd
31 Dec 2023
31 Dec 2022
-
-
3,825
3,825
The above balances bear no interest and are repayable on demand.
30.5 Year-end balances with shareholders and their joint ventures
(Euro 000’s)
31 Dec 2023
31 Dec 2022
Receivable from shareholder (Note 19)
Trafigura Pte. Ltd
– Debtor balance- subject to provisional pricing
Payable from joint venture of shareholder (Note 25)
Impala Terminals Huelva S.L.U. - Payable balance
5,054
5,054
(179)
(179)
12,800
12,800
(232)
(232)
The above debtor balance arising from the agreements between Trafigura and Impala (Note 30.3),
bear no interest and is repayable on demand.
189 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
31. Contingent liabilities
Judicial and administrative cases
In the normal course of business, the Group may be involved in legal proceedings, claims and
assessments. Such matters are subject to many uncertainties, and outcomes are not predictable with
assurance. Legal fees for such matters are expensed as incurred and the Group accrues for adverse
outcomes as they become probable and estimable.
32. Commitments
There are no minimum exploration requirements at Proyecto Riotinto. However, the Group is obliged
to pay local land taxes which currently are approximately €235,000 per year in Spain and the Group
is required to maintain the Riotinto site in compliance with all applicable regulatory requirements.
In 2012, ARM entered into a 50/50 joint venture with Rumbo to evaluate and exploit the potential of
the class B resources in the tailings dam and waste areas at Proyecto Riotinto (mainly residual gold
and silver in the old gossan tailings). Under the joint venture agreement, ARM will be the operator of
the joint venture, will reimburse Rumbo for the costs associated with the application for classification
of the Class B resources and will fund the initial expenditure of a feasibility study up to a maximum
of €2.0 million. Costs are then borne by the joint venture partners in accordance with their respective
ownership interests.
33. Significant events
The events in Ukraine from 24 February 2022 are having an impact on the global economy, but the
full implications cannot yet be predicted.
Recent events in Israel since October 2023 have had an effect on the global economy, causing an
increase in oil prices, disruptions to transport and logistics, rising freight costs and uncertain delivery
schedules.
The financial consequences of the current crisis on the global economy and business activity as a
whole cannot be estimated with any reasonable degree of certainty at this stage.
On 12 January 2023, the Company was notified that Allianz Global Investors GmbH,
shareholder of the Company, decreased its voting rights from 4.93% to 3.98%.
On 20 February 2023, Atalaya announced a voluntary delisting of its ordinary shares
from the TSX which was effective from the closing of trading on 20 March 2023.
On 23 February 2023, Atalaya announced the results from a new PEA for the Cerro
Colorado, San Dionisio and San Antonio deposits at its Proyecto Riotinto operation
in Spain.
On 28 March 2023, Atalaya announced that Proyecto Masa Valverde was granted
the Unified Environmental Authorisation AAU by the Junta de Andalucía. On 26
January 2022, executed certain options by PDMRs;.
On 23 May 2023, the Company announced that in accordance with the Company's
Long Term Incentive Plan 2020, it granted 1,305,000 share options to PDMR and
other employees.
On 26 June 2023, the Company announced that the Ontario Securities Commission,
as principal regulator, granted Atalaya's request to cease to be a reporting issuer in
the Canadian Jurisdictions.
190 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
On 10 July 2023, a PMDR sold 250,000 ordinary shares.
Following the approval of Resolution 10 by the Company's shareholders at its 2023
Annual General Meeting, which took place on 28 June 2023, the 2022 Final Dividend
of US$0.0385 per ordinary share was paid on 8 August 2023.
On 9 August 2023, the Company’s Board of Directors declared an Interim Dividend
for 2023 of US$0.05 per ordinary share, which is equivalent to approximately 3.9
pence per share. The Interim Dividend was paid on 28 September 2023 using foreign
exchange rates announced on 12 September 2023.
On 10 October 2023, Atalaya announced that a PDMR purchased 5,000 ordinary
shares.
On 13 November 2023, Atalaya announced its intention to apply for the Company's
ordinary shares to be admitted to the premium listing segment of the Official List
maintained by the FCA and to trading on the London Stock Exchange plc's main
market for listed securities.
On 14 November 2023, Atalaya announced its intention to re-domicile the Company
by transferring its registered office from the Republic of Cyprus to the Kingdom of
Spain.
On 17 November 2023, the Company was notified that BlackRock, Inc., shareholder
of the Company, decreased its voting rights from 4.03% to 3.99%. On 18 December
2024 the Company was notified that BlackRock, Inc. increased its voting rights from
3.99% to 4.01%.
On 12 December 2023, the Company hosted a 2023 Extraordinary General Meeting
in London to approve the re-domiciliation.
On 14 December 2023, The Company announced that it entered into an extension
of the service agreement with Impala Terminals for the handling, storage and
shipping of copper concentrates produced from Proyecto Riotinto.
On 20 December 2023, the Company was notified that Ithaki Limited., a shareholder
of the Company, acquired 6.02% of the voting rights.
On 21 December 2023, Atalaya announced that in relation to its application to the
FCA to admission of its Ordinary Shares to the premium listing segment of the
Official List and to trading on the main market for listed securities of the London
Stock Exchange’s, as announced on 13 November 2023, the Company has continued
to progress the application process and admission remains subject to a number of
conditions including the approval of a prospectus by the FCA.
191 | Atalaya Mining plc 2023 Annual Report
Notes to the Consolidated and Company Financial
Statements
for the year ended 31 December 2023
34. Events after the reporting period
On 10 January 2024, Atalaya paid €0.7m following the acquisition of the Masa
Valverde polymetallic project after receiving the exploitation permits and
restoration plan.
On 9 February 2024, Atalaya announced that it issued 20,000 ordinary shares of 7.5p
in the Company pursuant to an exercise of share options by a former employee.
192 | Atalaya Mining plc 2023 Annual Report
Shareholders information
Glossary of Terms
The following definitions and terms are used throughout this Annual Report.
Currency abbreviations
US$ / USD or $
$000
$m
£
£000
£m
€ / EUR
€000 / €k
€m
€nil
FY2023
FY2022
US Dollars
Thousand US dollars
Million US Dollars
Sterling Pound
Thousand Sterling Pounds
Million Sterling Pounds
Euro
Thousand Euros
Million Euros
Zero Euros
Twelve month period ended 31 December 2023
Twelve month period ended 31 December 2022
Definitions and conversion table
lb
Oz
‘000 m³
t
DMT
‘000 tonnes
1 Kilogramme/ (kg)
1000 Kilogrammes/ (´000 kg)
1 Kilometre (km)
1 troy ounce
Ha
ft
Pound
Troy ounce
Thousand cubic metres
Tonne
Dry Metric Tonne
Thousand metric tonnes
2.2046 pounds
2,204.6 pounds
0.6214 miles
31.1 grams
Hectare
Foot
Chemical Symbols
Cu
Ag
Au
Fe
Copper
Silver
Gold
Iron
193 | Atalaya Mining plc 2023 Annual Report
Shareholders information
Business, Finance and Accounting
AAU
Atalaya or the Company
Atalaya Group or Group
AC
AGM
AIM
AISC
AMV
AR
ARM
Autorización Ambiental Unificada (Unified Environmental Declaration)
Atalaya Mining Plc, a company incorporated in Cyprus under the Companies
law, cap. 113
Atalaya Mining Plc and its subsidiaries
Audit Committee
Annual General Meeting
Alternative Investment Market of the London Stock Exchange
All In Sustaining Cost
Atalaya Masa Valverde, S.L.
Annual Report
Atalaya Riotinto Minera, S.L.U.
AMP
Atalaya Minasderiotinto Project (UK) Limited
Articles
ATYM
Average head grade
BoD or Board of Directors
CAPEX
Cash Cost
CEO
C. Eng
CFO
COO
COF
CIF
CIT
CIP
CGU
CGNCC
Code of Conduct
Cont.
CSR
Directors
EBITDA
ECL
EeA
EGC
EGM
EIR
E-LIX
EMED TARTESSUS
Etc.
EU
FCA
FIFO
Financial statements
FOB
FV
FVOCI
FVPL
FY
GAAP
Group
H1, H2
IAS
ie.
The articles of association of Atalaya Mining Plc.
Atalaya Mining Plc
Average ore grade fed into the mill, expressed in % of weight
The Board of Directors of the Company
Capital Expenditure
The cost to produce one pound of copper
Chief Executive Officer
Chartered Engineer
Chief Financial Officer
Chief Operational Officer
Cost of Freight
Cost Insurance and Freight
Corporate Income Tax
Carriage and Insurance paid to
Cash Generating Unit
Corporate Governance, Numeration and Compensation Committee
Atalaya’s Code of Business Conduct and Ethics
Continued
Cobre San Rafael S.L.
The Directors of Atalaya for the reporting period
Earnings Before Interest Tax Depreciation and Amortisation
Expected Credit Loss
Ecologistas en Accion
Explotaciones Gallegas del Cobre S.L.
Extraordinary General Meeting
Effective Interest Rate Method
E-LIX System
Eastern Mediterranean Exploration & Development TARTESSUS S.L.
Et cetera
European Union
Financial Conduct Authority
First In First Out
Consolidated and company financial statements of Atalaya Mining Plc.
Free on Board
Fair Value
Fair Value Through Other Comprehensive Income
Fair Value Through Profit or Loss
Fiscal year
Generally Accepted Accounting Policies
Atalaya Mining plc and its subsidiaries
Six month periods ending 30th June and 31st December
International Accounting Standards
Id est (explanatory information)
194 | Atalaya Mining plc 2023 Annual Report
Shareholders information
IFRS
Impala Terminals
IPO
JdA
KPI´s
LDC
LIBOR
International Financial Reporting Standards
Impala Terminals Huelva S.L.U.
Initial Public Offering
Junta de Andalucía
Key Performance Indicators
Louis Dreyfus Company
The British Bankers’ Association Interest Settlement Rate for the relevant
currency
LITFR
Ltd.
LLC
LP
LOM
London Stock Exchange / LSE
MBA
n.a.
NED´s
NGC
NPV
Nr
OCI
Ordinary Shares
PDMR
PEA
Phase I
Ph.D.
PRC
PFS
Plc.
POM
PP&E
P&L
P&P reserves
Q1, Q2, Q3, Q4
QCA
QP
RC
RNN
SIC
Shareholders
SL
SLU
SC
TSX
UK Corporate Governance Code
United Kingdom or UK
United States or US
UOP
VAT
WC
XGC
Mining terms
Lost Injury Time Frequency Rate
Limited
Limited Liability Company
Limited partnership
Life of mine
London Stock Exchange plc
Master’s in Business Administration
Not available
Non-Executive Directors
Nomitation and Governance Committee
Net Present Value
Number
Other Comprehensive Income
Ordinary Shares of 10 pence each in the capital of the Company
Persons Discharging Managerial Responsibilities
Preliminary Economic Assessment
The first phase of an industrial-scale plant that utilises the E-LIX System
Doctor of Philosophy
Physical Risk Committee
Pre-Feasibility Study
Public limited company
Proyecto Ossa Morena
Plant, property and equipment
Profit and Loss
Proven and Probable reserves
Three month periods ending 31st March, 30th June, 30th September and 31st
December
Quoted Companies Alliance
Quotation Period
Remuneration Committee
Rio Narcea Nickel, S.L.
Standard Interpretations Committee which was endorsed by the IAS
Holders of Ordinary Shares
Sociedad Limitada (private limited company)
Sociedad Limitada Unipersonal (limited partnership)
Sustainability Committee
Toronto Stock Exchange
the 2018 UK Corporate Governance Code published by the Financial Reporting
Council, as amended from time to time
the United Kingdom of Great Britain and Northern Ireland
the United States of America, its territories and possessions, any state of the
United States of America and the District of Columbia
Unit of Production
Value Added Tax
Working Capital
Yanggu Xiangguang Copper Co. Ltd
195 | Atalaya Mining plc 2023 Annual Report
Average head grade
Concentrate
Contained copper
Grade
Mtpa
NI 43-101
Open pit
Ore body
P&P Reserves
Stripping
Tailings
TC/RC
VTEM
3D
Shareholders information
Average ore grade fed into the mill, expressed in % of weight
A fine powdery product of the milling process containing a high percentage of
valuable metal
Represents total copper in a mineral reserve before reduction to account for
tonnes not able to be recovered by the applicable metallurgical process
The amount of metal in each tonne of ore, expressed as a percentage of valuable
metal
Million tonnes per annum
National Instrument 43-101, standard of disclosure for mineral projects according
to Canadian guidelines
A mine where the minerals are mined entirely from the surface. Also referred to
as open-cut or open-cast mine
A sufficiently large amount of ore that can be mined economically
Proven and Probable reserves
Removal of overburden or waste rock overlying an ore body in preparation for
mining by open pit methods
Materials left over after the process of separating the valuable fraction from the
uneconomic fraction of an ore
Treatment Charge and Refinement Charge
Versatile Time Electomagnetic Mapping
Three Dimensional
196 | Atalaya Mining plc 2023 Annual Report
Shareholders information
Shareholder Enquiries
Board of Directors:
Roger Davey (*)
Alberto Lavandeira
Jesus Fernandez
Dr. Hussein Barma
Neil Gregson
Stephen Scott
Kate Harcourt
Non-Independent Non-executive Chair
Managing director and CEO
Non-executive director
Independent Non-executive director
Independent Non-executive director
Independent Non-executive director
Independent Non-executive Director
(*) Roger Davey is not considered independent for the purposes of the UK Corporate Governance Code as
he has served on the Board for more than nine years from the date of his first appointment.
Corporate brokers
Canaccord Genuity Limited
88 Wood Street
London EC2V 7QR
+44 (0)20 7523 4500
BMO Capital Markets
100 Liverpool Street
London, EC2M 2RH
+44 (0) 20 7236 1010
Peel Hunt LLP
100 Liverpool Street
London, EC2M 2AT
+44 (0)20 7418 8900
NOMAD
Canaccord Genuity Limited
88 Wood Street
London EC2V 7QR
+44 (0)20 7523 4500
Investor Relations
Michael Rechsteiner
Hamilton House
1 Temple Avenue
London EC4Y 0HA
+34 959 59 28 50
Public Relations
Elisabeth Cowell
Newgate Communications
Sky Light City Tower
50 Basinghall Street
London EC2V 5DE
+44 (0)20 7680 6550
197 | Atalaya Mining plc 2023 Annual Report
Shareholders information
Registrars
Cymain registrars Ltd.
26 Vyronos Avenue
1096 Nicosia, Cyprus
Depositary / transfer agent
United Kingdom
Computershare Investor Services Plc.
The Pavilions
Bridgwater
Bristol BS13 8AE
+44 (0) 370 702 0000
Company secretary:
Inter Jura CY (Services) Limited
1 Lampousa Street,
1095 Nicosia, Cyprus
+357 22 777000
Group Auditor:
Ernst & Young Cyprus Ltd
Jean Nouvel Tower,
6 Stasinos Avenue,
P.O.Box 21656,
1511, Nicosia, Cyprus
+357 22 209999
Registered office:
1 Lampousa Street,
1095 Nicosia, Cyprus
+357 22442705
198 | Atalaya Mining plc 2023 Annual Report