19 March 2024
Atalaya Mining
Plc.
("Atalaya" or "the Company")
2023 Annual
Results
Lower costs and balance
sheet strength position Atalaya for next growth
phase
Atalaya Mining Plc (AIM: ATYM) is
pleased to announce its audited consolidated financial results for
the year ended 31 December 2023 ("FY2023" or the
"Period").
Highlights
· Copper production of 51.7 kt at cash costs of $2.79/lb and
AISC of $3.09/lb
· Improved financial results due primarily to lower
costs
‒ EBITDA of €73.1 million vs. €55.3 million in
FY2022
‒ Cash
flows from operating activities of €64.7 million vs. €38.5 million
in FY2022
· Maintained strong balance sheet, including €54.3 million in
net cash, after investments in E-LIX, 50 MW solar plant and €11.5
million in dividend payments in calendar year 2023
· Final Dividend of $0.04/share proposed, bringing the Full
Year Dividend to $0.09/share
· Capital expenditure budget for 2024 focused principally on
San Dionisio early works
‒ €42-46 million budgeted for continued San Dionisio stripping
and road relocation
‒ Further investments to complete and ramp-up E-LIX and 50 MW
solar plant
· 2024
guidance of 51 - 53 kt Cu production at $3.00 - 3.20/lb AISC is
consistent with FY2023
Q4 2023 and FY2023 Financial Results
Summary
Period ended 31 December
|
Unit
|
Q4 2023
|
Q4
2022
|
FY2023
|
FY2022
|
Revenues from
operations
|
€k
|
85,591
|
99,893
|
340,346
|
361,846
|
Operating costs
|
€k
|
(71,703)
|
(81,694)
|
(267,246)
|
(306,532)
|
EBITDA
|
€k
|
13,888
|
18,199
|
73,100
|
55,314
|
Profit for the period
|
€k
|
5,215
|
8,039
|
36,663
|
30,926
|
Basic earnings per
share
|
€
cents/share
|
4.5
|
6.4
|
27.7
|
23.7
|
Dividend per
share(1)
|
US$/share
|
n/a
|
n/a
|
0.0900
|
0.0745
|
Cash flows from operating
activities
|
€k
|
5,715
|
20,931
|
64,743
|
38,503
|
Cash flows used in investing
activities
|
€k
|
(14,802)
|
(17,525)
|
(50,406)
|
(53,529)
|
Cash flows from financing
activities
|
€k
|
13,069
|
19,596
|
(18,500)
|
22,411
|
Net Cash
position(2)
|
€k
|
54,320
|
53,085
|
54,320
|
53,085
|
Working capital surplus
|
€k
|
68,618
|
84,047
|
68,618
|
84,047
|
Average realised copper price (excluding QPs closed in the
Period)
|
US$/lb
|
3.78
|
3.70
|
3.80
|
3.96
|
Cu concentrate produced
|
tonnes
|
64,414
|
68,908
|
249,321
|
249,543
|
Cu production
|
tonnes
|
12,775
|
13,969
|
51,667
|
52,269
|
Cash costs
|
US$/lb
payable
|
2.90
|
2.90
|
2.79
|
3.16
|
All-In Sustaining Cost ("AISC")
|
US$/lb
payable
|
3.16
|
3.12
|
3.09
|
3.37
|
(1) Consists of 2023 Interim Dividend (paid 28
September 2023) and proposed 2023 Final Dividend, which is subject
to approval by shareholders at the Company's 2024 Annual General
Meeting.
(2) Includes restricted cash and bank borrowings
at 31 December 2023 and 31 December 2022.
Alberto Lavandeira, CEO, commented:
"Atalaya made progress on several important
strategic initiatives in 2023 and we are enthusiastic about the
year ahead.
We began 2023 by announcing the results of the Riotinto PEA,
which set out our vision for the future of our flagship operation,
including mining higher grade material from our existing deposits
and leveraging our 15 Mtpa processing plant. We were then granted
approval to expand our tailings capacity and mine footprint, and
also to begin waste stripping at San Dionisio, which is an
important component of the PEA mine plan. Similarly, we received
the environmental authorisation and exploitation permit at Proyecto
Masa Valverde, which could become another source of higher grade
material for Riotinto.
We made substantial progress at our E-LIX Phase I plant,
which has the potential to unlock significant value from complex
ores found in the Iberian Pyrite Belt and beyond. First copper
cathodes were produced in December and we look forward to providing
further updates as plant ramp-up continues.
Regarding costs, European energy markets have continued to
normalise, helping Atalaya achieve lower costs despite ongoing
inflationary pressures. The start-up of our 50 MW solar plant is
expected to provide further stability and also help to lower our
carbon footprint.
Finally, we continue to be optimistic about the outlook for
Proyecto Touro, which could become a new source of copper
production in Europe. The energy transition is accelerating the
demand for copper, however, uncertainty around supply is growing as
production falls from mature mines and new projects become
increasingly complex. With our strong balance sheet and experienced
team of mine builders and operators, Atalaya is well positioned to
benefit from improving copper market dynamics."
Investor Presentation Reminder
Alberto Lavandeira (CEO) and César
Sánchez (CFO) will be holding a live presentation relating to the
2023 Annual Results via the Investor Meet Company platform at
11:00am GMT today.
To register, please visit the
following link and click "Add to Meet" Atalaya via:
https://www.investormeetcompany.com/atalaya-mining-plc/register-investor
Management will also answer
questions that have been submitted via the Investor Meet Company
dashboard.
Note to Readers
The financial information for the
years ended 31 December 2023 and 2022 contained in this document
does not constitute statutory accounts as defined in the Cyprus
Companies Law Cap. 113. The financial information for the years
ended 31 December 2023 and 2022 have been extracted from the
consolidated financial statements of Atalaya Mining plc for the
year ended 31 December 2023 which have been approved by the
directors on 18 March 2024. The auditor's report on those financial
statements was unqualified.
Q4 2023 and FY2023 Operating Results
Summary
Units expressed in accordance with the international system
of units (SI)
|
Unit
|
Q4 2023
|
Q4
2022
|
FY2023
|
FY2022
|
Ore mined
|
t
|
3,742,814
|
3,540,155
|
14,944,638
|
14,884,361
|
Waste mined
|
t
|
7,362,657
|
5,329,252
|
32,182,904
|
24,661,569
|
Ore processed
|
t
|
4,138,368
|
3,958,654
|
15,790,098
|
15,410,459
|
Copper ore grade
|
%
|
0.36
|
0.41
|
0.38
|
0.40
|
Copper concentrate
grade
|
%
|
19.83
|
20.27
|
20.72
|
20.95
|
Copper recovery rate
|
%
|
85.47
|
86.24
|
86.62
|
85.84
|
Copper concentrate
|
t
|
64,414
|
68,908
|
249,321
|
249,543
|
Copper contained in
concentrate
|
t
|
12,775
|
13,969
|
51,667
|
52,269
|
Payable copper contained in
concentrate
|
t
|
12,131
|
13,280
|
49,174
|
49,773
|
Cash cost
|
US$/lb
payable
|
2.90
|
2.90
|
2.79
|
3.16
|
All-in sustaining cost
|
US$/lb
payable
|
3.16
|
3.12
|
3.09
|
3.37
|
Mining
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.
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).
Cash Costs and AISC Breakdown
$/lb Cu payable
|
Q4 2023
|
Q4
2022
|
FY2023
|
FY2022
|
Mining
|
0.92
|
0.70
|
0.86
|
0.79
|
Processing
|
0.84
|
1.11
|
0.89
|
1.31
|
Other site operating
costs
|
0.67
|
0.59
|
0.56
|
0.54
|
Total site operating
costs
|
2.44
|
2.40
|
2.30
|
2.65
|
By-product credits
|
(0.11)
|
(0.07)
|
(0.09)
|
(0.08)
|
Freight, treatment charges and
other offsite costs
|
0.57
|
0.57
|
0.58
|
0.60
|
Total offsite costs
|
0.47
|
0.50
|
0.49
|
0.52
|
Cash costs
|
2.90
|
2.90
|
2.79
|
3.16
|
|
|
|
|
|
Cash costs
|
2.90
|
2.90
|
2.79
|
3.16
|
Corporate costs
|
0.09
|
0.09
|
0.08
|
0.08
|
Sustaining capital (excluding
one-off tailings expansion)
|
0.02
|
0.06
|
0.03
|
0.06
|
Capitalised stripping
costs
|
0.08
|
-
|
0.12
|
0.01
|
Other costs
|
0.06
|
0.08
|
0.07
|
0.06
|
Total AISC
|
3.16
|
3.12
|
3.09
|
3.37
|
Note: Some figures may not add up due to
rounding.
Cash costs were $2.90/lb payable
copper in Q4 2023 (Q4 2022: $2.90/lb) and $2.79/lb payable copper
in FY2023 (FY2022: $3.16/lb), with the decrease mainly due to lower
electricity costs despite lower production volumes.
AISC were $3.16/lb payable copper
in Q4 2023 (Q4 2022: $3.12/lb) and $3.09/lb payable copper in
FY2023 (FY2022: $3.37/lb). The decrease in full year AISC was
driven by the same factors that resulted in lower cash costs, but
partly offset by higher capitalised stripping costs at Cerro
Colorado. AISC excludes one-off investments in the tailings dam
(consistent with prior reporting) and waste stripping at the San
Dionisio area.
Q4 2023 and FY2023 Financial Results
Highlights
Income Statement
Revenues were €85.6 million in Q4
2023 (Q4 2022: €99.9 million) and €340.3 million in FY2023 (FY2022:
€361.8 million). Lower revenues in FY2023 were the result of lower
copper sales and lower realised copper prices.
Operating costs were €71.7 million
in Q4 2023 (Q4 2022: €81.7 million) and €267.2 million in FY2023
(FY2022: €306.5 million). Lower operating costs in FY2023 were
mainly the result of lower electricity costs, partly offset by
higher administrative and expensed exploration costs.
EBITDA was €13.9 million in Q4
2023 (Q4 2022: €18.2 million) and €73.1 million in FY2023 (FY2022:
€55.3 million). Higher EBITDA in FY2023 resulted from lower
operating costs, partly offset by lower revenues.
Profit after tax was €5.2 million
in Q4 2023 (Q4 2022: €8.0 million) or 4.5 cents basic earnings per
share (Q4 2022: 6.4 cents) and €36.7 million in FY2023 (FY2022:
€30.9 million) or 27.7 cents basic earnings per share (Q4 2022:
23.7 cents).
Cash Flow Statement
Cash flows from operating
activities before changes in working capital were €12.7 million in
Q4 2023 (Q4 2022: €19.9 million) and €5.7 million after working
capital changes (Q4 2022: €20.9 million). For FY2023, cash flows
from operating activities before changes in working capital were
€72.2 million (FY2022: €56.9 million) and €64.7 million after
working capital changes (FY2022: €38.5 million).
Cash flows used in investing
activities were €14.8 million in Q4 2023 (Q4 2022: €17.5 million)
and €50.4 million in FY2023 (FY2022: €53.5 million). Key
investments in FY2023 included €3.4 million in sustaining capex
(FY2022: €6.2 million), €11.7 million in capitalised stripping
(FY2022: €0.7 million), €13.7 million to extend the tailings dam
(FY2022: €14.1 million), €12.9 million for the 50 MW solar plant
(FY2022: €22.7 million) and €18.1 million for the E-LIX Phase I
Plant (FY2022: €16.8 million), of which €9.1 million was booked as
prepayments for service contract to Lain Technologies
Ltd.
Cash flows from financing
activities were positive €13.1 million in Q4 2023 (Q4 2022:
positive €19.6 million) as a result of credit facility drawdowns,
and negative €18.5 million in FY2023 (FY2022: positive €22.4
million) as a result of credit facility repayments and dividend
payments.
Balance Sheet
Consolidated cash and cash
equivalents were €121.0 million at 31 December 2023 (31 December
2022: €126.4 million). Net of current and non-current borrowings of
€66.7 million, net cash was €54.3 million at 31 December 2023 (31
December 2022: €53.1 million).
Inventories of concentrate valued
at cost were €8.4 million at 31 December 2023 (31 December 2022:
€4.5 million). The total working capital surplus was €68.6 million
at 31 December 2023 (31 December 2022: €84.0 million).
Electricity Prices
Realised Prices
Market electricity prices in
FY2023 improved significantly from the unprecedented levels
experienced in FY2022 following Russia's conflict with Ukraine.
Factors that contributed to the price normalisation in FY2023
include significantly lower gas prices, high 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.
Outlook for 2024
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.
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.
Cash cost and AISC guidance for
FY2024 are consistent with FY2023 levels and are as
follows:
· Cash
cost range of $2.80 - 3.00/lb copper payable in FY2024
· AISC
range of $3.00 - 3.20/lb copper payable in FY2024
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
Atalaya remains focused on several
strategic objectives including growing its production, increasing
mine life, lowering its cost base and enhancing the long-term
sustainability of its operations.
Accordingly, the Company plans to
make the following non-sustaining capital investments in
FY2024:
Item
|
€ million
|
Completion of 50 MW solar
plant
|
€4 -
5
|
Completion and ramp-up of E-LIX
Phase I Plant(1)
|
€5 -
7
|
San Dionisio waste stripping,
dewatering and road relocation
|
€42 -
46
|
Expansion of existing Riotinto
tailings facility
|
€13 -
15
|
Total non-sustaining capital investments
|
€64 - 73
|
(1) A portion of this total will be accounted for
as prepayments to Lain Technologies.
Exploration
Atalaya considers early stage
exploration to be an important component of its long-term strategy.
The Company controls several large land packages across Spain,
including in the Iberian Pyrite Belt (Riotinto District) and the
Ossa Morena Metallogenic Belt (Proyecto Ossa Morena).
For FY2024, exploration
expenditures of €5 - 7 million are expected and will focus on
expanding current resources and making new discoveries at Proyecto
Riotinto and Proyecto Masa Valverde, drill testing first-order
geophysical anomalies at Proyecto Riotinto East, expanding and
upgrading current resources at the Alconchel-Pallares copper-gold
project and continue drill testing new targets elsewhere at
Proyecto Ossa Morena.
2023 Final Dividend
Atalaya has a dividend policy that
seeks to provide capital returns to its shareholders and allows for
continued investments in the Company's portfolio of growth
projects. The dividend policy consists of an annual pay-out of 30 -
50% of free cash flow generated during the applicable financial
year and is payable in two half-yearly instalments.
The Board of Directors has
proposed a final dividend for FY2023 of $0.04 per ordinary share
("Final Dividend"), which is equivalent to approximately 3.1 pence
per share. Payment of the Final Dividend is subject to shareholder
approval at the Company's 2024 Annual General Meeting ("AGM").
Should it be approved, the Final Dividend, together with the
Interim Dividend paid in September 2023, would result in a Full
Year Dividend of $0.09 per ordinary share, which is equivalent to
approximately 7.1 pence per share. Further details on the timing of
the potential payment of the Final Dividend will be provided ahead
of the AGM.
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.
Asset Portfolio Update
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
("PMV")
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.
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.
Proyecto Riotinto East
Drill testing of selected
coincident FLEM and AGG anomalies is in progress with one
rig.
Contacts:
SEC Newgate UK
|
Elisabeth Cowell / Tom Carnegie /
Matthew Elliott
|
+44 20
3757 6882
|
Atalaya Mining
|
Michael Rechsteiner
|
+34 959
59 28 50
|
Canaccord Genuity
(NOMAD and Joint
Broker)
|
Henry Fitzgerald-O'Connor / James
Asensio
|
+44 20
7523 8000
|
BMO Capital Markets
(Joint Broker)
|
Tom Rider / Andrew
Cameron
|
+44 20
7236 1010
|
Peel Hunt LLP
(Joint Broker)
|
Ross Allister / David
McKeown
|
+44 20
7418 8900
|
About Atalaya Mining Plc
Atalaya is an AIM-listed mining
and development group which produces copper concentrates and silver
by-product at its wholly owned Proyecto Riotinto site in southwest
Spain. Atalaya's current operations include the Cerro Colorado open
pit mine and a modern 15 Mtpa processing plant, which has the
potential to become a central processing hub for ore sourced from
its wholly owned regional projects around Riotinto that include
Proyecto Masa Valverde and Proyecto Riotinto East. In addition, the
Group has a phased earn-in agreement for up to 80% ownership of
Proyecto Touro, a brownfield copper project in the northwest of
Spain, as well as a 99.9% interest in Proyecto Ossa Morena. For
further information, visit www.atalayamining.com
ATALAYA MINING
PLC
MANAGEMENT'S REVIEW
AND
EXTRACT OF THE AUDITED
CONSOLIDATED FINANCIAL STATEMENTS
31 December
2023
Notice to Reader
The accompanying
consolidated financial statements of Atalaya
Mining Plc have been prepared by and are the responsibility of
Atalaya Mining Plc's management.
Introduction
This report provides an overview
and analysis of the financial results of operations of Atalaya
Mining Plc and its subsidiaries ("Atalaya" and/or "Group"),
to enable the reader to assess material
changes in the financial position between 31 December 2022 and 31
December 2023 and results of operations for the three and twelve
months ended 31 December 2023 and 2022.
This report has been prepared as
of 18 March 2024. The analysis hereby included is intended to
supplement and complement the audited consolidated financial
statements and notes thereto ("Financial Statements") as at and for
the period ended 31 December 2023, which will be released together
with the Company's 2023 Annual Report.
Atalaya prepares its Annual
Financial Statements in accordance with International Financial
Reporting Standards ("IFRSs") as adopted by the EU and its
Consolidated financial statements in accordance
with International Accounting Standard 34: Interim Financial
Reporting. The currency referred to in this document is the Euro,
unless otherwise specified.
Forward-looking statements
This report may include certain
"forward-looking statements" and "forward-looking information"
under applicable securities laws. Except for statements of
historical fact, certain information contained herein constitute
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 that all required
third party regulatory and governmental approvals 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 prove to be correct. Factors that could 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.
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.
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. 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
|
t
|
3,742,814
|
3,540,155
|
14,944,638
|
14,884,361
|
Waste mined
|
t
|
7,362,657
|
5,329,252
|
32,182,904
|
24,661,569
|
Ore processed
|
t
|
4,138,368
|
3,958,654
|
15,790,098
|
15,410,459
|
Copper ore grade
|
%
|
0.36
|
0.41
|
0.38
|
0.40
|
Copper concentrate
grade
|
%
|
19.83
|
20.27
|
20.72
|
20.95
|
Copper recovery rate
|
%
|
85.47
|
86.24
|
86.62
|
85.84
|
Copper concentrate
|
t
|
64,414
|
68,908
|
249,321
|
249,543
|
Copper contained in
concentrate
|
t
|
12,775
|
13,969
|
51,667
|
52,269
|
Payable copper contained in
concentrate
|
t
|
12,131
|
13,280
|
49,174
|
49,773
|
Cash cost
|
US$/lb
payable
|
2.90
|
2.90
|
2.79
|
3.16
|
All-in sustaining cost*
|
US$/lb
payable
|
3.16
|
3.12
|
3.09
|
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
|
Q4 2023
|
Q4
2022
|
FY2023
|
FY2022
|
Mining
|
0.92
|
0.70
|
0.86
|
0.79
|
Processing
|
0.84
|
1.11
|
0.89
|
1.31
|
Other site operating
costs
|
0.67
|
0.59
|
0.56
|
0.54
|
Total site operating
costs
|
2.44
|
2.40
|
2.30
|
2.65
|
By-product credits
|
(0.11)
|
(0.07)
|
(0.09)
|
(0.08)
|
Freight, treatment charges and
other offsite costs
|
0.57
|
0.57
|
0.58
|
0.60
|
Total offsite costs
|
0.47
|
0.50
|
0.49
|
0.52
|
Cash costs
|
2.90
|
2.90
|
2.79
|
3.16
|
|
|
|
|
|
Cash costs
|
2.90
|
2.90
|
2.79
|
3.16
|
Corporate costs
|
0.09
|
0.09
|
0.08
|
0.08
|
Sustaining capital (excluding
one-off tailings expansion)
|
0.02
|
0.06
|
0.03
|
0.06
|
Capitalised stripping
costs
|
0.08
|
-
|
0.12
|
0.01
|
Other costs
|
0.06
|
0.08
|
0.07
|
0.06
|
Total AISC
|
3.16
|
3.12
|
3.09
|
3.37
|
Note: Figures may not add up due to
rounding.
Mining and Processing
Mining
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.
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).
3. 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
|
million
tonnes
|
~19
|
Waste mined
|
million
tonnes
|
~25
|
Ore processed
|
million
tonnes
|
15.3 -
15.8
|
Copper ore grade
|
%
|
0.39 -
0.41
|
Copper recovery rate
|
%
|
84 - 86
|
Contained copper
|
tonnes
|
51,000
-
53,000
|
Cash costs
|
$/lb
payable
|
2.80 -
3.00
|
All-in sustaining cost
|
$/lb
payable
|
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.
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.
4. 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
|
85,591
|
99,893
|
340,346
|
361,846
|
Cost of sales
|
(65,038)
|
(71,797)
|
(247,290)
|
(289,554)
|
Corporate expenses
|
(4,713)
|
(4,598)
|
(12,741)
|
(9,954)
|
Exploration expenses
|
(1,311)
|
(3,801)
|
(6,467)
|
(4,257)
|
Care and maintenance
expenditure
|
(1,199)
|
(1,494)
|
(2,384)
|
(3,053)
|
Other income
|
558
|
(4)
|
1,636
|
286
|
EBITDA
|
13,888
|
18,199
|
73,100
|
55,314
|
Depreciation/amortisation
|
(10,635)
|
(8,775)
|
(37,800)
|
(34,119)
|
Net foreign exchange
(loss)/gain
|
(2,038)
|
(4,181)
|
(1,278)
|
11,546
|
Net finance
(cost)/income
|
(422)
|
1,030
|
2,071
|
(421)
|
Tax
|
4,422
|
1,766
|
570
|
(1,394)
|
Profit for the year
|
5,215
|
8,039
|
36,663
|
30,926
|
Three months financial review
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.
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.
Realised Copper Prices
The average prices of copper for
2023 and 2022 were:
$/lb
|
|
2023
|
2022
|
Realised copper price (excluding
QPs)
|
$/lb
|
3.80
|
3.96
|
Market copper price per lb (period
average)
|
$/lb
|
3.85
|
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.
5. Non-GAAP
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.
Cash Cost per pound of payable
copper includes cash operating 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 C1 cash cost.
AISC per pound of payable copper
includes C1 Cash Costs plus royalties and agency fees, expenditures
on rehabilitation, capitalised stripping costs, exploration and
geology costs, corporate costs and recurring sustaining capital
expenditures but excludes one-off sustaining capital projects, such
as the tailings dam project.
Realised price 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 if any, expressed in USD per pound of payable copper
and before silver credits, TC/RCs, penalties freights and other
cost items included in the sales invoices and booked as revenues.
Realised price is consistent with the widely accepted industry
standard definition.
6. 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)
|
31 Dec
2023
|
31 Dec
2022
|
Unrestricted cash and cash
equivalents at Group level
|
94,868
|
108,550
|
Unrestricted cash and cash
equivalents at Operation level
|
26,139
|
17,567
|
Restricted cash and cash
equivalents at Operation level
|
-
|
331
|
Consolidated cash and cash equivalents
|
121,007
|
126,448
|
Net cash position
|
54,320
|
53,085
|
Working capital surplus
|
68,618
|
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.
Overview of the Group's Cash Flows
(Euro
000's)
|
Twelve month ended 31 Dec
2023
|
Twelve
month ended 31 Dec 2022
|
Cash flows from operating
activities
|
64,743
|
38,503
|
Cash flows used in investing
activities
|
(50,406)
|
(53,529)
|
Cash flows from financing
activities
|
(18,500)
|
22,411
|
Net increase in cash and cash
equivalents
|
(4,163)
|
7,385
|
Net foreign exchange
differences
|
(1,278)
|
11,546
|
Total net cash flow for the
period
|
(5,441)
|
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.
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.
The following table summarises the
movement in key currencies versus the EUR:
|
|
|
|
|
Twelve months
ended
31 Dec
2023
|
Twelve
months ended
31 Dec
2022
|
Average rates for the periods
|
|
|
|
|
|
|
GBP - EUR
|
|
|
|
|
0.8698
|
0.8528
|
USD - EUR
|
|
|
|
|
1.0813
|
1.0530
|
Spot rates as at
|
|
|
|
|
|
|
GBP - EUR
|
|
|
|
|
0.8691
|
0.8869
|
USD - EUR
|
|
|
|
|
1.105
|
1.0666
|
During 2023 and 2022, Atalaya did
not have any currency hedging agreements.
7. Risk
Factors
Due to the nature of Atalaya's
business in the mining industry, the Group is subject to various
risks that could materially impact the future operating results and
could cause actual events to differ materially from those described
in forward-looking statements relating to Atalaya. Readers are
encouraged to read and consider the risk factors detailed in
Atalaya's audited, consolidated financial statements for the year
ended 31 December 2023.
The Company continues to monitor
the principal risks and uncertainties that could materially impact
the Company's results and operations, including the areas of
increasing uncertainty such as inflationary pressure on goods and
services required for the business and geopolitical developments
worldwide.
8. 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 consolidated financial
statements for the year ended 31 December 2023.
9. Other
Information
Additional information about
Atalaya Mining Plc. is available at www.atalayamining.com
Consolidated financial statements on subsequent pages
By Order of the Board of Directors
Consolidated and Company Statements of Comprehensive
Income
for the year ended 31 December
2023
|
|
The Group
|
The
Company
|
The
Group
|
The
Company
|
(Euro 000's)
|
Note
|
2023
|
2023
|
2022
|
2022
|
|
|
|
|
|
|
Revenue
|
5
|
340,346
|
5,012
|
361,846
|
57,756
|
Operating costs and mine site
administrative expenses
|
|
(246,630)
|
-
|
(288,275)
|
-
|
Mine site depreciation,
amortisation and impairment
|
13,14
|
(37,800)
|
-
|
(34,119)
|
-
|
Gross profit
|
|
55,916
|
5,012
|
39,452
|
57,756
|
Administration and other
expenses
|
|
(12,741)
|
(5,822)
|
(9,954)
|
(3,601)
|
Share based benefits
|
23
|
(661)
|
-
|
(1,279)
|
-
|
Exploration expenses
|
|
(6,467)
|
-
|
(4,257)
|
-
|
Care and maintenance
expenditure
|
|
(2,384)
|
-
|
(3,053)
|
-
|
Other income
|
|
1,637
|
-
|
286
|
286
|
Operating profit
|
|
35,300
|
(810)
|
21,195
|
54,441
|
Net foreign exchange
(loss)/gain
|
4
|
(1,278)
|
(390)
|
11,546
|
3,439
|
Interest income from financial
assets at fair value through profit and loss
|
8
|
-
|
-
|
-
|
9,157
|
Interest income from financial
assets at amortised cost
|
8
|
5,393
|
14,604
|
624
|
3,779
|
Finance costs
|
9
|
(3,322)
|
-
|
(1,045)
|
-
|
Profit before tax
|
|
36,093
|
13,404
|
32,320
|
70,816
|
Tax
|
10
|
570
|
(579)
|
(1,394)
|
(617)
|
Profit for the year
|
|
36,663
|
12,825
|
30,926
|
70,199
|
|
|
|
|
|
|
Profit for the year attributable
to:
|
|
|
|
|
|
- Owners of the
parent
|
|
38,769
|
12,825
|
33,155
|
70,199
|
- Non-controlling
interests
|
|
(2,106)
|
-
|
(2,229)
|
-
|
|
|
36,663
|
12,825
|
30,926
|
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)
|
11
|
27.7
|
-
|
23.7
|
-
|
Diluted earnings per share (EUR
cents per share)
|
11
|
26.9
|
-
|
23.2
|
-
|
|
|
|
|
|
|
Profit for the year
|
|
36,663
|
12,825
|
30,926
|
70,199
|
Other comprehensive
income:
|
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
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'
|
20
|
(2)
|
(2)
|
(6)
|
(6)
|
Total comprehensive income for the year
|
|
36,661
|
12,823
|
30,920
|
70,193
|
|
|
|
|
|
|
Total comprehensive income for the year attributable
to:
|
|
38,767
|
12,823
|
33,149
|
70,193
|
- Owners of the
parent
|
|
(2,106)
|
-
|
(2,229)
|
-
|
- Non-controlling
interests
|
|
36,661
|
12,823
|
30,920
|
70,193
|
The notes on subsequent pages are an
integral part of these consolidated and company financial
statements.
Consolidated and Company Statements of Financial
Position
As at 31 December 2023
|
|
31 Dec
2023
|
31 Dec
2023
|
31 Dec
2022
|
31 Dec
2022
|
(Euro 000's)
|
Note
|
The Group
|
The
Company
|
The
Group
|
The
Company
|
Assets
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
Property, plant and
equipment
|
13
|
384,739
|
-
|
354,908
|
-
|
Intangible assets
|
14
|
49,397
|
-
|
53,830
|
-
|
Investment in
subsidiaries
|
15
|
-
|
292,135
|
-
|
74,911
|
Trade and other
receivables
|
19
|
26,702
|
227
|
16,362
|
259,904
|
Non-current financial
asset
|
20
|
1,101
|
-
|
1,101
|
-
|
Deferred tax asset
|
17
|
11,282
|
-
|
7,293
|
-
|
|
|
473,221
|
292,362
|
433,494
|
334,815
|
Current assets
|
|
|
|
-
|
-
|
Inventories
|
18
|
33,314
|
-
|
38,841
|
-
|
Trade and other
receivables
|
19
|
42,897
|
70,855
|
64,155
|
48,831
|
Tax refundable
|
|
100
|
-
|
100
|
-
|
Other financial assets
|
20
|
30
|
30
|
33
|
33
|
Cash and cash
equivalents
|
21
|
121,007
|
58,958
|
126,448
|
39,472
|
|
|
197,348
|
129,843
|
229,577
|
88,336
|
Total assets
|
|
670,569
|
422,205
|
663,071
|
423,151
|
|
|
|
|
|
|
Equity and liabilities
|
|
|
|
|
|
Equity attributable to owners of the parent
|
|
|
|
|
|
Share capital
|
22
|
13,596
|
13,596
|
13,596
|
13,596
|
Share premium
|
22
|
319,411
|
319,411
|
319,411
|
319,411
|
Other reserves
|
23
|
70,463
|
10,077
|
69,805
|
9,419
|
Accumulated profit
|
|
98,026
|
76,563
|
70,483
|
75,216
|
|
|
501,496
|
419,647
|
473,295
|
417,642
|
Non-controlling
interests
|
24
|
(9,104)
|
-
|
(6,998)
|
-
|
Total equity
|
|
492,392
|
419,647
|
466,297
|
417,642
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
Trade and other
payables
|
25
|
2,205
|
-
|
2,015
|
-
|
Provisions
|
26
|
27,234
|
-
|
24,083
|
-
|
Lease liability
|
27
|
3,877
|
-
|
4,378
|
-
|
Borrowings
|
28
|
16,131
|
-
|
20,768
|
-
|
|
|
49,447
|
-
|
51,244
|
-
|
Current liabilities
|
|
|
|
-
|
-
|
Trade and other
payables
|
25
|
75,922
|
2,369
|
90,022
|
5,402
|
Lease liability
|
27
|
501
|
-
|
536
|
-
|
Current tax liabilities
|
|
1,317
|
189
|
1,425
|
107
|
Provisions
|
26
|
434
|
-
|
952
|
-
|
Borrowings
|
28
|
50,556
|
-
|
52,595
|
-
|
|
|
128,730
|
2,558
|
145,530
|
5,509
|
Total liabilities
|
|
178,177
|
2,558
|
196,774
|
5,509
|
Total equity and liabilities
|
|
670,569
|
422,205
|
663,071
|
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
|
Alberto Lavandeira
|
Chair
|
Chief Execute Officer
|
Consolidated Statement of Changes in Equity
for the year ended 31 December
2023
(Euro 000's)
|
Note
|
Share
capital
|
Share premium
(2)
|
Other reserves
(1)
|
Accum.
Profits
|
Total
|
NCI
|
Total
equity
|
1
Jan 2023
|
|
13,596
|
319,411
|
69,805
|
70,483
|
473,295
|
(6,998)
|
466,297
|
Profit/(loss) for the
period
|
|
-
|
-
|
-
|
38,769
|
38,769
|
(2,106)
|
36,663
|
Change in fair value of financial
assets through other comprehensive income 'OCI'
|
20
|
-
|
-
|
(3)
|
-
|
(3)
|
-
|
(3)
|
Total comprehensive
(loss)/income
|
|
-
|
-
|
(3)
|
38,769
|
38,766
|
(2,106)
|
36,660
|
Recognition of share-based
payments
|
23
|
-
|
-
|
661
|
-
|
661
|
-
|
661
|
Other changes in equity
|
|
-
|
-
|
-
|
252
|
252
|
-
|
252
|
Dividends paid
|
12
|
-
|
-
|
-
|
(11,478)
|
(11,478)
|
-
|
(11,478)
|
31 Dec 2023
|
|
13,596
|
319,411
|
70,463
|
98,026
|
501,496
|
(9,104)
|
492,392
|
|
|
|
|
|
|
|
|
|
(Euro 000's)
|
Note
|
Share
capital
|
Share premium
(2)
|
Other reserves
(1)
|
Accum.
Profits
|
Total
|
NCI
|
Total
equity
|
1
Jan 2022
|
|
13,447
|
315,916
|
52,690
|
58,754
|
440,807
|
(4,909)
|
435,898
|
Profit/(loss) for the
period
|
|
-
|
-
|
-
|
33,155
|
33,155
|
(2,229)
|
30,926
|
Change in fair value of financial
assets through other comprehensive income 'OCI'
|
20
|
-
|
-
|
(6)
|
-
|
(6)
|
-
|
(6)
|
Total comprehensive
(loss)/income
|
|
-
|
-
|
(6)
|
33,155
|
33,149
|
(2,229)
|
30,920
|
Issuance of share
capital
|
22
|
149
|
3,495
|
-
|
-
|
3,644
|
-
|
3,644
|
Recognition of depletion
factor
|
23
|
-
|
-
|
12,800
|
(12,800)
|
-
|
-
|
-
|
Recognition of share-based
payments
|
23
|
-
|
-
|
1,279
|
-
|
1,279
|
-
|
1,279
|
Recognition of non-distributable
reserve
|
23
|
-
|
-
|
316
|
(316)
|
-
|
-
|
-
|
Recognition of distributable
reserve
|
23
|
-
|
-
|
2,726
|
(2,726)
|
-
|
-
|
-
|
Other changes in equity
|
|
-
|
-
|
-
|
(485)
|
(485)
|
140
|
(345)
|
Dividends paid
|
12
|
-
|
-
|
-
|
(5,099)
|
(5,099)
|
-
|
(5,099)
|
31 Dec 2022
|
|
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
Company Statement of Changes in Equity
for the year ended 31 December
2023
(Euro 000's)
|
Note
|
Share
capital
|
Share premium
(1)
|
Other
reserves
|
Accum.
Profits
|
Total
|
1
Jan 2022
|
|
13,447
|
315,916
|
8,146
|
10,116
|
347,625
|
Profit for the year
|
|
-
|
-
|
-
|
70,199
|
70,199
|
Change in fair value of financial
assets through other comprehensive income 'OCI'
|
20
|
-
|
-
|
(6)
|
-
|
(6)
|
Total comprehensive
income
|
|
-
|
-
|
(6)
|
70,199
|
70,193
|
Issuance of share
capital
|
22
|
149
|
3,495
|
-
|
-
|
3,644
|
Recognition of share-based
payments
|
23
|
-
|
-
|
1,279
|
-
|
1,279
|
Interim dividends paid
|
|
-
|
-
|
-
|
(5,099)
|
(5,099)
|
31 Dec 2022/1 Jan 2023
|
|
13,596
|
319,411
|
9,419
|
75,216
|
417,642
|
Profit for the period
|
|
-
|
-
|
-
|
12,825
|
12,825
|
Change in fair value of financial
assets through other comprehensive income 'OCI'
|
20
|
-
|
-
|
(3)
|
-
|
(3)
|
Total comprehensive
income
|
|
-
|
-
|
(3)
|
12,825
|
12,822
|
Recognition of share-based
payments
|
23
|
-
|
-
|
661
|
-
|
661
|
Dividends paid
|
|
-
|
-
|
-
|
(11,478)
|
(11,478)
|
31 Dec 2023
|
|
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.
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
|
|
36,093
|
32,320
|
Adjustments for:
|
|
|
|
Depreciation of property, plant
and equipment
|
13
|
33,307
|
29,637
|
Amortisation of intangible
assets
|
14
|
4,493
|
4,482
|
Recognition of share‑based
payments
|
23
|
661
|
1,279
|
Interest income
|
8
|
(5,393)
|
(244)
|
Interest expense
|
9
|
2,607
|
1,025
|
Unwinding of
discounting
|
9
|
690
|
-
|
Legal provisions
|
26
|
1
|
(43)
|
Net foreign exchange
differences
|
|
1,278
|
(11,546)
|
Unrealised foreign exchange
(loss)/gain on financing activities
|
|
(1,492)
|
25
|
Cash inflows from operating activities before working capital
changes
|
72,245
|
56,935
|
Changes in working capital:
|
|
|
|
Inventories
|
18
|
5,527
|
(14,060)
|
Trade and other
receivables
|
19
|
10,918
|
(24,471)
|
Trade and other
payables
|
25
|
(14,924)
|
24,662
|
Provisions
|
26
|
(1,203)
|
(91)
|
Cash flows from operations
|
|
72,563
|
42,975
|
Interest expense on lease
liabilities
|
27
|
(25)
|
(20)
|
Interest paid
|
|
(2,607)
|
(1,025)
|
Tax paid
|
|
(5,188)
|
(3,427)
|
Net cash from operating activities
|
|
64,743
|
38,503
|
Cash flows from investing activities
|
|
|
|
Purchases of property, plant and
equipment
|
13
|
(53,837)
|
(52,650)
|
Purchases of intangible
assets
|
14
|
(460)
|
(944)
|
Interest received
|
8
|
3,891
|
65
|
Net cash used in investing activities
|
|
(50,406)
|
(53,529)
|
Cash flows from financing activities
|
|
|
|
Lease payment
|
27
|
(536)
|
(617)
|
Net (repayments)/proceeds from
borrowings
|
|
(6,486)
|
24,484
|
Proceeds from issue of share
capital
|
|
-
|
3,643
|
Dividends paid
|
|
(11,478)
|
(5,099)
|
Net cash (used in)/from financing
activities
|
|
(18,500)
|
22,411
|
|
|
|
|
Net increase in cash and cash
equivalents
|
|
(4,163)
|
7,385
|
Net foreign exchange
difference
|
|
(1,278)
|
11,546
|
Cash and cash equivalents:
|
|
|
|
At beginning of the
year
|
21
|
126,448
|
107,517
|
At end of the year
|
21
|
121,007
|
126,448
|
The notes on subsequent pages are
an integral part of these consolidated and company financial
statements.
Company 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
|
|
13,404
|
70,816
|
Adjustments for:
|
|
|
|
Interest income
|
8
|
(518)
|
(36)
|
Interest income from
interest-bearing intercompany loans
|
8
|
(14,087)
|
(12,900)
|
Net foreign exchange
difference
|
|
390
|
(3,439)
|
Unrealised foreign exchange loss
on financing activities
|
|
-
|
(63)
|
Cash inflows (used in)/from operating activities before
working capital changes
|
(811)
|
54,378
|
Changes in working capital:
|
|
|
|
Trade and other
receivables
|
19
|
21,089
|
(61,273)
|
Trade and other
payables
|
25
|
(3,030)
|
3,950
|
Cash flows from operations
|
|
17,247
|
(2,945)
|
Tax paid
|
|
(498)
|
(311)
|
Net cash from/(used in) operating
activities
|
|
16,749
|
(3,256)
|
Cash flows from investing activities
|
|
|
|
Investment in
subsidiaries
|
15
|
(1)
|
(9,461)
|
Interest received
|
|
518
|
36
|
Interest income from
interest-bearing intercompany loans
|
8
|
14,087
|
12,900
|
Net cash from investing activities
|
|
14,603
|
3,475
|
Cash flows from financing activities
|
|
|
|
Proceeds from issue of share
capital
|
22
|
-
|
3,643
|
Dividends paid
|
12
|
(11,477)
|
(5,099)
|
Net cash used in financing activities
|
|
(11,477)
|
(1,456)
|
|
|
|
|
Net increase/(decrease) in
cash and cash equivalents
|
|
19,876
|
(1,237)
|
Net foreign exchange
difference
|
|
(390)
|
3,439
|
Cash and cash equivalents:
|
|
|
|
At beginning of the
year
|
21
|
39,472
|
37,270
|
At end of the year
|
21
|
58,958
|
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.
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.
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.
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 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 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 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
|
Business
|
%(2)
|
Country
|
Atalaya Mining, Plc
|
Holding
|
n/a
|
Cyprus
|
EMED Marketing Ltd.
|
Trade
|
100%
|
Cyprus
|
Atalaya Riotinto Minera,
S.L.U.
|
Operating
|
100%
|
Spain
|
Recursos Cuenca Minera, S.L.
(3)
|
Dormant
|
50%
|
Spain
|
Atalaya Minasderiotinto Project
(UK), Ltd.
|
Holding
|
100%
|
United
Kingdom
|
Eastern Mediterranean Exploration
& Development, S.L.U.
|
Dormant
|
100%
|
Spain
|
Atalaya Touro (UK),
Ltd.
|
Holding
|
100%
|
United
Kingdom
|
Fundación ARM
|
Trust
|
100%
|
Spain
|
Cobre San Rafael, S.L.
(1)
|
Development
|
10%
|
Spain
|
Atalaya Servicios Mineros,
S.L.U.
|
Holding
|
100%
|
Spain
|
Atalaya Masa Valverde,
S.L.U.
|
Development
|
100%
|
Spain
|
Atalaya Financing Ltd.
|
Financing
|
100%
|
Cyprus
|
Atalaya Ossa Morena,
S.L.
|
Development
|
99.9%
|
Spain
|
Iberian Polimetal S.L.
|
Development
|
100%
|
Spain
|
Notes
(1)
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.
(2)
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.
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.
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.
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.
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
|
UOP
|
Mineral rights
|
UOP
|
Deferred mining costs
|
UOP
|
Plant and machinery
|
UOP
|
Motor vehicles
|
5
years
|
Furniture/fixtures/office
equipment
|
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.
(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.
it is probable that the future economic benefit associated with the
stripping activity will be realised;
ii. the
component of the ore body for which access has been improved can be
identified and;
iii. 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.
(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.
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:
•
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:
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.
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:
· 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
Or
· 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:
· 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
Or
· 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.
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.
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).
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.
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
|
Depreciation terms in years
|
Lands and buildings
|
Based on Units of Production
(UOP)
|
Motor vehicles
|
Based on straight line
depreciation
|
Laboratory equipment
|
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.
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.
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.
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).
THE GROUP
(Euro 000's)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
31 Dec 2023
|
|
|
|
|
Other current financial assets
|
|
|
|
|
Financial assets at FV through
OCI
|
30
|
-
|
1,101
|
1,131
|
Trade and other receivables
|
|
|
|
|
Receivables (subject to
provisional pricing)
|
-
|
15,164
|
-
|
15,164
|
Total
|
30
|
15,164
|
1,101
|
16,295
|
31 Dec 2022
|
|
|
|
|
Other current financial
assets
|
|
|
|
|
Financial assets at FV through
OCI
|
33
|
-
|
1,101
|
1,134
|
Receivables (subject to
provisional pricing)
|
-
|
27,557
|
-
|
27,557
|
Total
|
33
|
27,557
|
1,101
|
28,691
|
THE COMPANY
(Euro 000's)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
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
|
30
|
-
|
-
|
30
|
Total
|
30
|
-
|
-
|
30
|
31 Dec 2022
|
|
|
|
|
Non-current receivables
|
|
|
|
|
Financial assets at FV through
profit and loss (note 30.4)
|
-
|
-
|
14,247
|
14,247
|
Other current financial
assets
|
|
|
|
|
Financial assets at FV through
OCI
|
33
|
-
|
-
|
33
|
Total
|
33
|
-
|
14,247
|
14,280
|
2.31 Climate-related matters
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.
- 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.
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)
|
Carrying amounts
|
Contractual cash flows
|
Less than 3 months
|
Between 3 - 12 months
|
Between
1 - 2 years
|
Between 2 - 5 years
|
Over 5 years
|
31 Dec 2023
|
|
|
|
|
|
|
|
Tax liability
|
1,317
|
1,317
|
-
|
1,317
|
-
|
-
|
-
|
Lease liability
|
4,378
|
4,378
|
-
|
501
|
-
|
1,928
|
1,949
|
Other financial liabilities
|
66,687
|
65,406
|
-
|
50,556
|
16,131
|
-
|
-
|
Non-current payables
|
2,205
|
-
|
-
|
205
|
-
|
-
|
2,000
|
Trade and other payables
|
75,922
|
72,623
|
36,964
|
38,882
|
76
|
-
|
-
|
|
150,509
|
143,724
|
36,967
|
91,458
|
16,207
|
1,928
|
3,949
|
|
|
|
|
|
|
|
|
31 Dec 2022
|
|
|
|
|
|
|
|
Tax liability
|
1,425
|
1,425
|
-
|
1,425
|
-
|
-
|
-
|
Lease liability
|
4,914
|
4,914
|
-
|
536
|
-
|
1,957
|
2,421
|
Other financial
liabilities
|
73,362
|
73,362
|
-
|
52,594
|
10,812
|
9,956
|
-
|
Non-current payables
|
2,015
|
-
|
-
|
15
|
-
|
-
|
2,000
|
Trade and other
payables
|
90,022
|
86,810
|
53,912
|
36,110
|
-
|
-
|
-
|
|
171,738
|
166,511
|
53,912
|
90,680
|
10,812
|
11,913
|
4,421
|
THE COMPANY
(Euro 000's)
|
Carrying amounts
|
Contractual cash flows
|
Less than 3 months
|
Between 3 - 12 months
|
Between
1 - 2 years
|
Between 2 - 5 years
|
Over 5 years
|
31 Dec 2023
|
|
|
|
|
|
|
|
Tax liability
|
189
|
189
|
-
|
189
|
-
|
-
|
-
|
Trade and other payables
|
2,369
|
868
|
-
|
2,369
|
-
|
-
|
-
|
|
2,558
|
1,057
|
-
|
2,558
|
-
|
-
|
-
|
31 Dec 2022
|
|
|
|
|
|
|
|
Tax liability
|
107
|
107
|
-
|
107
|
-
|
-
|
-
|
Trade and other
payables
|
5,402
|
543
|
-
|
5,402
|
-
|
-
|
-
|
|
5,509
|
650
|
-
|
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)
|
Effect on profit before tax
for the year ended 31 Dec 2023
increase/(decrease)
|
|
Effect
on profit before tax for the year ended 31 Dec 2022
increase/(decrease)
|
+5%
|
17,454
|
|
17,303
|
-5%
|
(17,454)
|
|
(17,303)
|
(c) Commodity price
risk
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.
|
Effect on profit before tax
for the year ended 31 Dec 2023
increase/(decrease)
|
|
Effect
on profit before tax for the year ended 31 Dec 2022
increase/(decrease)
|
|
Eur 000's
|
|
Eur
000's
|
Increase/(decrease) in copper prices
|
|
|
|
Increase $0.05/lb (2022:
$0.05)
|
5,138
|
|
5,285
|
Decrease $0.05/lb (2022:
$0.05)
|
(5,138)
|
|
(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
|
94,868
|
108,550
|
Unrestricted cash and cash
equivalents at Operation level
|
26,139
|
17,567
|
Restricted cash and cash
equivalents at Operation level
|
-
|
331
|
Consolidated cash and cash equivalents
|
121,007
|
126,448
|
Net cash position
(1)
|
54,320
|
53,085
|
Working capital surplus
|
68,618
|
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:
(Euro 000's)
|
2023
|
|
2022
|
Variable rate instruments
|
|
|
|
Financial assets
|
121,007
|
|
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.
|
Equity
|
|
Profit or
loss
|
(Euro 000's)
|
2023
|
2022
|
2023
|
2022
|
|
|
|
|
|
Variable rate
instruments
|
1,210
|
1,264
|
1,210
|
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 AFRC 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)
|
31 Dec
2023
|
31 Dec
2022
|
Total liabilities less
cash
|
57,170
|
70,326
|
Total equity (excluding
NCI)
|
501,496
|
473,295
|
Total capital
|
558,666
|
543,621
|
|
|
|
Gearing ratio
|
10.23%
|
12.94%
|
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.
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.
(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.
(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.
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
|
2023
|
2022
|
|
€'000
|
€'000
|
Switzerland
|
340,346
|
361,846
|
The table below presents revenues
from external customers attributed to the country of domicile of
the Company.
Revenue - from external customers
|
2023
|
2022
|
|
€'000
|
€'000
|
Cyprus
|
25,712
|
30,662
|
Spain
|
314,634
|
331,184
|
|
340,346
|
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
|
2023
|
2022
|
|
€'000
|
€'000
|
Spain
|
434,136
|
408,738
|
|
434,136
|
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)
|
2023
|
2022
|
|
Segment
|
€'000
|
Segment
|
€'000
|
|
|
|
|
|
Offtaker 1
|
Copper
|
80,031
|
Copper
|
71,839
|
Offtaker 2
|
Copper
|
76,688
|
Copper
|
108,158
|
Offtaker 3
|
Copper
|
183,596
|
Copper
|
181,822
|
5. Revenue
THE
GROUP
(Euro 000's)
|
2023
|
2022
|
Revenue from contracts with
customers (1)
|
344,940
|
371,303
|
Fair value gain relating to
provisional pricing within sales (2)
|
(4,594)
|
(9,457)
|
Total revenue
|
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)
|
2023
|
2022
|
Sales of services to related
companies (Note 30.3)
|
5,012
|
2,756
|
Dividends
|
-
|
55,000
|
Total revenue
|
5,012
|
57,756
|
6. Expenses by nature
THE
GROUP
(Euro 000's)
|
2023
|
2022
|
Operating costs
|
208,416
|
246,840
|
Care and maintenance
expenditure
|
11,511
|
15,603
|
Exploration expenses
|
5,103
|
3,723
|
Employee benefit expense (Note
7)
|
25,756
|
24,556
|
Compensation of key management
personnel (Note 30.2)
|
2,230
|
2,189
|
Auditors' remuneration -
audit
|
584
|
345
|
Other assurance
|
20
|
-
|
Other accountants'
remuneration
|
385
|
138
|
Consultants'
remuneration
|
4,977
|
1,087
|
Depreciation of property, plant
and equipment (Note 13)
|
33,307
|
29,637
|
Amortisation of intangible assets
(Note 14)
|
4,493
|
4,482
|
Share option-based employee
benefits (Note 23)
|
661
|
1,279
|
Shareholders' communication
expense
|
232
|
305
|
On-going listing costs
|
521
|
533
|
Legal costs
|
1,779
|
1,469
|
Public relations and communication
development
|
711
|
1,035
|
Rents (Note 27)
|
5,682
|
5,678
|
Other expenses and
provisions
|
314
|
2,038
|
Total
|
306,682
|
340,937
|
THE
COMPANY
(Euro 000's)
|
2023
|
2022
|
Key management remuneration (Note
30.2)
|
605
|
540
|
Auditors' remuneration -
audit
|
263
|
139
|
Other accountants'
remuneration
|
341
|
57
|
Consultants'
remuneration
|
1,352
|
224
|
Management fees (Note
30.3)
|
19
|
66
|
Travel costs
|
5
|
2
|
Shareholders' communication
expense
|
232
|
305
|
On-going listing costs
|
521
|
533
|
Legal costs
|
1,771
|
1,258
|
Insurances
|
82
|
84
|
Other expenses and
provisions
|
631
|
392
|
Total
|
5,822
|
3,600
|
7. Employee benefit expense
THE GROUP
(Euro 000's)
|
2023
|
2022
|
Wages and salaries
|
18,836
|
18,438
|
Social security and social
contributions
|
6,246
|
5,659
|
Employees' other
allowances
|
18
|
16
|
Bonus to employees
|
656
|
443
|
Total
|
25,756
|
24,556
|
The average number of employees
and the number of employees at year end by office are:
|
Average
|
|
At year
end
|
Number of employees
|
2023
|
2022
|
|
2023
|
2022
|
Spain - Full time
|
479
|
492
|
|
476
|
489
|
Spain - Part time
|
6
|
4
|
|
6
|
5
|
Cyprus - Full time
|
1
|
1
|
|
1
|
1
|
Cyprus - Part time
|
2
|
2
|
|
2
|
2
|
Total
|
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)
|
2023
|
2022
|
Financial interests
|
1,501
|
244
|
Other received
interests
|
3,892
|
-
|
Unwinding of discount on mine
rehabilitation provision (Note 26)
|
-
|
380
|
Total
|
5,393
|
624
|
THE
COMPANY
(Euro 000's)
|
2023
|
2022
|
|
|
|
Interest income from
interest-bearing intercompany loans at fair value through profit
and loss (Note 30.3)
|
-
|
9,157
|
Interest income from
interest-bearing intercompany loans at amortised cost (Note
30.3)
|
14,087
|
3,743
|
Financial interests
|
517
|
36
|
Total
|
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.
9. Finance costs
THE
GROUP
(Euro 000's)
|
2023
|
2022
|
Interest expense:
|
|
|
Other interest
|
2,607
|
1,025
|
Interest expense on lease
liabilities
|
25
|
20
|
Unwinding of discount on mine
rehabilitation provision (Note 26)
|
690
|
-
|
|
3,322
|
1,045
|
Other interests include the
financing costs related to Astor and Solar plant
facilities.
10. Tax
THE
GROUP
(Euro 000's)
|
2023
|
2022
|
Current income tax
charge
|
3,419
|
3,123
|
Deferred tax income relating to
the origination of temporary differences (Note 17)
|
(6,852)
|
(4,544)
|
Deferred tax expense relating to
reversal of temporary differences (Note 17)
|
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)
|
2023
|
2022
|
|
|
|
Accounting profit before
tax
|
36,093
|
32,320
|
Tax calculated at the applicable
tax rates of the Company - 12.5%
|
4,512
|
4,040
|
Tax effect of expenses not
deductible for tax purposes
|
3,290
|
1,029
|
Tax effect of tax loss for the
year
|
(1,271)
|
3,819
|
Tax effect of allowances and
income not subject to tax
|
(4,381)
|
(7,857)
|
Effect of higher tax rates in
other jurisdictions of the group
|
993
|
2,092
|
Tax effect of tax losses brought
forward
|
276
|
-
|
Deferred tax (Note 17)
|
(3,989)
|
(1,729)
|
Tax (credit)/ charge
|
(570)
|
1,394
|
THE
COMPANY
(Euro 000's)
|
2023
|
2022
|
|
|
|
Current income tax
charge
|
579
|
617
|
|
579
|
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.
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)
|
2023
|
2022
|
Parent company
|
(6,255)
|
(676)
|
Subsidiaries
|
45,024
|
33,831
|
Profit attributable to equity
holders of the parent
|
38,769
|
33,155
|
|
|
|
Weighted number of ordinary shares
for the purposes of basic earnings per share ('000)
|
139,880
|
139,757
|
Basic earnings per share (EUR
cents/share)
|
27.7
|
23.7
|
|
|
|
Weighted number of ordinary shares
for the purposes of diluted earnings per share ('000)
|
144,224
|
142,834
|
Diluted earnings per share
(EUR cents/share)
|
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.
12. Dividends
Cash dividends declared and paid
during the year:
(Euro 000's)
|
2023
|
2022
|
Final dividends declared and
paid
|
4,956
|
-
|
Interim dividends declared and
paid
|
6,522
|
5,099
|
|
11,478
|
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.
13. Property, plant and equipment
(Euro 000's)
|
Land and buildings
|
Right of use assets (5)
|
Plant and equipment
|
Assets under construction (3)
|
Deferred mining costs (2)
|
Other assets (1)
|
Total
|
2023
|
|
|
|
|
|
|
|
Cost
|
|
|
|
|
|
|
|
At 1 January 2023
|
80,326
|
7,076
|
291,335
|
50,235
|
52,358
|
872
|
482,202
|
Additions
|
36
|
-
|
6,011
|
42,149
|
11,714
|
79
|
59,782
|
Increase in rehab. Provision (Note
26)
|
3,145
|
-
|
-
|
-
|
-
|
-
|
3,145
|
Reclassifications
(4)
|
-
|
-
|
21,783
|
(21,783)
|
-
|
-
|
-
|
Advances
|
10
|
-
|
-
|
-
|
-
|
-
|
10
|
31 Dec 2023
|
83,517
|
7,076
|
319,129
|
70,601
|
64,072
|
951
|
545,346
|
Depreciation
|
|
|
|
|
|
|
|
At 1 January 2023
|
20,454
|
1,998
|
89,182
|
-
|
14,921
|
739
|
127,294
|
Adjustments
|
-
|
-
|
6
|
-
|
-
|
-
|
6
|
Opening adjusted
|
20,454
|
1,998
|
89,188
|
-
|
14,921
|
739
|
127,300
|
Charge for the year
|
4,248
|
533
|
24,359
|
-
|
4,142
|
25
|
33,307
|
31 Dec 2023
|
24,702
|
2,531
|
113,547
|
-
|
19,063
|
764
|
160,607
|
|
|
|
|
|
|
|
|
Net book value at 31 December 2023
|
58,815
|
4,545
|
205,582
|
70,601
|
45,009
|
187
|
384,739
|
|
|
|
|
|
|
|
|
2022
|
|
|
|
|
|
|
|
Cost
|
|
|
|
|
|
|
|
1 Jan 2022
|
65,003
|
7,076
|
283,346
|
22,860
|
51,667
|
801
|
430,753
|
Additions
|
2,383
|
-
|
1,262
|
49,473
|
691
|
-
|
53,809
|
Increase in rehab.
provision
|
1,727
|
-
|
-
|
-
|
-
|
-
|
1,727
|
Reclassifications
|
15,300
|
-
|
6,727
|
(22,098)
|
-
|
71
|
-
|
Advances
|
103
|
-
|
-
|
-
|
-
|
-
|
103
|
Write-off
|
(4,190)
|
-
|
-
|
-
|
-
|
-
|
(4,190)
|
31 Dec 2022
|
80,326
|
7,076
|
291,335
|
50,235
|
52,358
|
872
|
482,202
|
Depreciation
|
|
|
|
|
|
|
|
At 1 January 2022
|
16,026
|
1,546
|
67,991
|
-
|
11,380
|
714
|
97,657
|
Charge for the year
|
4,428
|
452
|
21,191
|
-
|
3,541
|
25
|
29,637
|
31 Dec 2022
|
20,454
|
1,998
|
89,182
|
-
|
14,921
|
739
|
127,294
|
|
|
|
|
|
|
|
|
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.
(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)
|
|
|
Other
assets(1)
|
Total
|
2023
|
|
|
|
|
Cost
|
|
|
|
|
At 1 January 2023
|
|
|
15
|
15
|
At 31 December 2023
|
|
|
15
|
15
|
Depreciation
|
|
|
|
|
At 1 January 2023
|
|
|
15
|
15
|
Charge for the year
|
|
|
-
|
-
|
At 31 December 2023
|
|
|
15
|
15
|
Net book value at 31 December 2023
|
|
|
-
|
-
|
2022
|
|
|
|
|
Cost
|
|
|
|
|
At 1 January 2022
|
|
|
15
|
15
|
At 31 December 2022
|
|
|
15
|
15
|
Depreciation
|
|
|
|
|
At 1 January 2022
|
|
|
15
|
15
|
Charge for the year
|
|
|
-
|
-
|
At 31 December 2022
|
|
|
15
|
15
|
Net book value at 31
December 2022
|
|
|
-
|
-
|
(1)
Includes furniture, fixtures and office equipment
which were depreciated over 5-10 years.
14. Intangible assets
The Group
(Euro 000's)
|
Permits
(1)
|
Licences, R&D and
Software
|
Total
|
2023
|
|
|
|
Cost
|
|
|
|
On 1 January 2023
|
81,255
|
8,642
|
89,897
|
Additions
|
144
|
116
|
260
|
Disposals
|
(200)
|
-
|
(200)
|
At 31 December 2023
|
81,199
|
8,758
|
89,957
|
Amortisation
|
|
|
|
On 1 January 2023
|
27,627
|
8,440
|
36,067
|
Charge for the year
|
4,453
|
40
|
4,493
|
At 31 December 2023
|
32,080
|
8,480
|
40,560
|
Net book value at 31 December 2023
|
49,119
|
278
|
49,397
|
|
|
|
|
2022
|
|
|
|
Cost
|
|
|
|
On 1 January 2022
|
80,358
|
8,595
|
88,953
|
Additions
|
897
|
47
|
944
|
At 31 December 2022
|
81,255
|
8,642
|
89,897
|
Amortisation
|
|
|
|
On 1 January 2022
|
23,214
|
8,371
|
31,585
|
Charge for the year
|
4,413
|
69
|
4,482
|
At 31 December 2022
|
27,627
|
8,440
|
36,067
|
Net book value at 31 December
2022
|
53,628
|
202
|
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.
15. Investment in subsidiaries
(Euro 000's)
|
2023
|
|
2022
|
The Company
|
|
|
|
Opening amount at cost minus
provision for impairment
|
74,910
|
|
64,171
|
Increase of investment (1)
(2) (3)
|
217,225
|
|
10,739
|
Closing amount at cost less
provision for impairment
|
292,135
|
|
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
|
Date of
incorporation/
acquisition
|
Principal activity
|
Country
of incorporation
|
Effective proportion of shares held in
2023(2)
|
Effective proportion of shares held in
2022(2)
|
Atalaya Touro (UK) Ltd
|
10 March
2017
|
Holding
|
United
Kingdom
|
100%
|
100%
|
AMP (1)
|
10 Sep
2008
|
Holding
|
United
Kingdom
|
100%
|
100%
|
EMED Marketing Ltd
|
8 Sep 2008
|
Trading
|
Cyprus
|
100%
|
100%
|
Atalaya Financing Ltd
(3)
|
16 Sep
2020
|
Financing
|
Cyprus
|
100%
|
100%
|
(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
|
Country
of incorporation
|
Effective proportion of shares
held at
31 December 2015
|
Recursos Cuenca Minera
S.L.
|
Exploitation of tailing dams and
waste areas resources
|
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.
The Group's significant aggregate
amounts in respect of the joint venture are as follows:
(Euro 000's)
|
31 Dec
2023
|
31 Dec
2022
|
Intangible assets
|
94
|
94
|
Trade and other
receivables
|
3
|
2
|
Cash and cash
equivalents
|
19
|
21
|
Trade and other
payables
|
(115)
|
(115)
|
Net assets
|
1
|
2
|
Revenue
|
-
|
-
|
Expenses
|
-
|
-
|
Net profit/(loss) after
tax
|
-
|
-
|
17. Deferred tax
|
Consolidated statement of
financial position
|
Consolidated income
statement
|
(Euro 000's)
|
2023
|
2022
|
2023
|
2022
|
The Group
|
|
|
|
|
Deferred tax asset
|
|
|
|
|
At 1 January
|
7,293
|
5,564
|
-
|
-
|
Deferred tax income relating to
the origination of temporary differences (Note 10)
|
6,852
|
4,544
|
(6,852)
|
(4,544)
|
Deferred tax expense relating to
reversal of temporary differences (Note 10)
|
(2,863)
|
(2,815)
|
2,863
|
2,815
|
At 31 December
|
11,282
|
7,293
|
|
|
|
|
|
|
|
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)
|
31 Dec
2023
|
31 Dec
2022
|
THE GROUP
|
|
|
Finished products
|
8,416
|
4,547
|
Materials and supplies
|
21,852
|
31,330
|
Work in progress
|
3,046
|
2,964
|
|
33,314
|
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.
19.
Trade and other receivables
(Euro 000's)
|
2023
|
2022
|
THE GROUP
|
|
|
Non-current trade and other receivables
|
|
|
Deposits
|
307
|
256
|
Loans
|
233
|
-
|
Prepayments for service
contract
|
23,476
|
12,865
|
Other non-current
receivables
|
2,686
|
3,241
|
|
26,702
|
16,362
|
Current trade and other receivables
|
|
|
Trade receivables at fair value -
subject to provisional
pricing
|
10,110
|
14,757
|
Trade receivables from
shareholders at fair value - subject to provisional pricing (Note
30.5)
|
5,054
|
12,800
|
Other receivables from related
parties at amortised cost (Note 30.4)
|
56
|
56
|
Deposits
|
37
|
37
|
VAT receivable
|
21,003
|
28,856
|
Tax advances
|
-
|
9
|
Prepayments
|
5,855
|
5,845
|
Other current assets
|
782
|
1,795
|
|
42,897
|
64,155
|
Allowance for expected credit
losses
|
-
|
-
|
Total trade and other receivables
|
69,599
|
80,517
|
|
|
|
(Euro 000's)
|
2023
|
2022
|
THE COMPANY
|
|
|
Non-current trade and other receivables
|
|
|
Receivables from own subsidiaries
at amortised cost (Note 30.4)
|
227
|
245,657
|
Receivables from own subsidiaries
at fair value through profit and loss (Note 30.4)
|
-
|
14,247
|
|
227
|
259,904
|
Current trade and other receivables
|
|
|
Receivables from own subsidiaries
at amortised cost (Note 30.4)
|
70,797
|
48,774
|
Other receivables
|
58
|
57
|
Total current trade and other receivables
|
70,855
|
48,831
|
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)
|
31 Dec
2023
|
31 Dec
2022
|
|
|
|
Financial asset at fair value
through OCI (see (a) below)
|
1,131
|
1,134
|
Total current
|
30
|
33
|
Total non-current
|
1,101
|
1,101
|
THE COMPANY
(Euro 000's)
|
31 Dec
2023
|
31 Dec
2022
|
|
|
|
Financial asset at fair value
through OCI (see (a) below)
|
30
|
33
|
Total current
|
30
|
33
|
a)
Financial assets at fair value through OCI
The Group
(Euro 000's)
|
31 Dec
2023
|
31 Dec
2022
|
At 1 January
|
1,134
|
1,140
|
Fair value change recorded in
equity (Note 23)
|
(3)
|
(6)
|
At 31 December
|
1,131
|
1,134
|
THE COMPANY
(Euro 000's)
|
31 Dec
2023
|
31 Dec
2022
|
At 1 January
|
33
|
39
|
Fair value change recorded in
equity (Note 23)
|
(3)
|
(6)
|
At 31 December
|
30
|
33
|
Company
name
|
Principal activities
|
Country
of incorporation
|
Effective proportion of shares
held at
31 December 2023
|
Explotaciones Gallegas del Cobre
SL
|
Exploration company
|
Spain
|
12.5%
|
KEFI Minerals Plc
|
Exploration and development mining
company listed on AIM
|
UK
|
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)
|
31 Dec
2023
|
31 Dec
2022
|
Unrestricted cash and cash
equivalents at Group level
|
94,868
|
108,550
|
Unrestricted cash and cash
equivalents at Operation level
|
26,139
|
17,567
|
Restricted cash and cash
equivalents at Operation level
|
-
|
331
|
Consolidated cash and cash equivalents
|
121,007
|
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
|
50,470
|
84,146
|
Great Britain Pound
|
52
|
895
|
United States Dollar
|
70,485
|
41,407
|
|
121,007
|
126,448
|
The Company
(Euro 000's)
|
31 Dec
2023
|
31 Dec
2022
|
Cash at bank and on
hand
|
58,958
|
39,472
|
|
|
|
Cash and cash equivalents denominated in the following
currencies:
|
|
Euro - functional and presentation
currency
|
36,191
|
38,496
|
Great Britain Pound
|
41
|
879
|
United States Dollar
|
22,726
|
97
|
|
58,958
|
39,472
|
22. Share capital
|
|
Shares
000's
|
Share
Capital
Stg£'000
|
Share
premium
Stg£'000
|
Total
Stg£'000
|
Authorised
|
|
|
|
|
|
Ordinary shares of Stg £0.075
each*
|
|
200,000
|
15,000
|
-
|
15,000
|
|
|
|
|
|
|
Issued and fully paid
|
|
|
Shares
|
Share
Capital
|
Share
premium
|
Total
|
Issue Date
|
Price (£)
|
Details
|
000's
|
€'000
|
€'000
|
€'000
|
31 December 2021/1 January 2022
|
|
138,236
|
13,447
|
315,916
|
329,363
|
|
|
|
|
|
|
|
22-Jan-22
|
1.44
|
Exercised share options
(b)
|
314
|
28
|
512
|
540
|
22-Jan-22
|
2.015
|
Exercised share options
(b)
|
321
|
29
|
746
|
775
|
22-Jan-22
|
2.045
|
Exercised share options
(b)
|
400
|
36
|
941
|
977
|
22-Jan-22
|
1.475
|
Exercised share options
(b)
|
451
|
42
|
754
|
796
|
22-Jan-22
|
3.09
|
Exercised share options
(b)
|
135
|
12
|
505
|
517
|
23-Jun-22
|
1.475
|
Exercised share options
(a)
|
23
|
2
|
37
|
39
|
31-Dec-22
|
|
|
139,880
|
13,596
|
319,411
|
333,007
|
31-Dec-23
|
|
|
139,880
|
13,596
|
319,411
|
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.
23. Other reserves
THE GROUP
(Euro 000's)
|
Share option
(5)
|
Bonus
share
|
Depletion factor
(1)
|
FV reserve of financial
assets at FVOCI (2)
|
Non-distributable reserve
(3)
|
Distributable
reserve(4)
|
Total
|
At 1 January 2022
|
9,086
|
208
|
24,978
|
(1,147)
|
8,000
|
11,565
|
52,690
|
Recognition of depletion
factor
|
-
|
-
|
12,800
|
-
|
-
|
-
|
12,800
|
Recognition of non-distributable
reserve
|
-
|
-
|
-
|
-
|
316
|
-
|
316
|
Recognition of distributable
reserve
|
-
|
-
|
-
|
-
|
-
|
2,726
|
2,726
|
Recognition of share based
payments(5)
|
1,279
|
-
|
-
|
-
|
-
|
-
|
1,279
|
Change in fair value of financial
assets at fair value through OCI (Note 20)
|
-
|
-
|
-
|
(6)
|
-
|
-
|
(6)
|
At 31 December 2022
|
10,365
|
208
|
37,778
|
(1,153)
|
8,316
|
14,291
|
69,805
|
Recognition of share based payments
|
661
|
-
|
-
|
-
|
-
|
-
|
661
|
Change in fair value of financial assets at fair value
through OCI (Note 20)
|
-
|
-
|
-
|
(3)
|
-
|
-
|
(3)
|
At 31 December 2023
|
11,026
|
208
|
37,778
|
(1,156)
|
8,316
|
14,291
|
70,463
|
the Company
|
Share option
(5)
|
Bonus
share
|
Fair value reserve of
financial assets at FVOCI (2)
|
Total
|
(Euro 000's)
|
|
|
|
|
At 1 January 2022
|
9,086
|
208
|
(1,147)
|
8,147
|
Recognition of share based
payments(5)
|
1,279
|
-
|
-
|
1,279
|
Change in fair value of financial
assets at fair value through OCI (Note 20)
|
-
|
-
|
(6)
|
(6)
|
At 31 December 2022
|
10,365
|
208
|
(1,153)
|
9,420
|
Recognition of share based payments
|
661
|
-
|
-
|
661
|
Change in fair value of financial assets at fair value
through OCI (Note 20)
|
-
|
-
|
(2)
|
(2)
|
At 31 December 2023
|
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.
(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 £
|
Share
options
|
|
29 May 2019
|
28-May-2024
|
2.015
|
666,500
|
|
30 Jun 2020
|
30 Jun 2030
|
1.475
|
516,000
|
|
24 Jun 2021
|
23 Jun 2031
|
3.090
|
1,016,000
|
|
26 Jan 2022
|
25 Jan 2032
|
4.160
|
120,000
|
|
22 Jun 2022
|
30 Jun 2027
|
3.575
|
1,225,000
|
22 May 2023
|
21 May 2028
|
3.270
|
1,305,000
|
|
Total
|
4,848,500
|
|
|
|
|
|
|
Weighted average
exercise price £
|
Share
options
|
|
At 1 January 2023
|
2.857
|
3,543,500
|
|
Granted options during the
year
|
3.270
|
1,305,000
|
|
Options executed during the
year
|
-
|
-
|
|
31 December 2023
|
2.968
|
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
|
Weighted average share price
£
|
Weighted average exercise
price £
|
Expected
volatility
|
Expected
life
(years)
|
Risk
Free
rate
|
Expected dividend
yield
|
Estimated Fair
Value £
|
|
|
23 Feb
2017
|
1.440
|
1.440
|
51.8%
|
5
|
0.6%
|
Nil
|
0.666
|
|
29 May
2019
|
2.015
|
2.015
|
46.9%
|
5
|
0.8%
|
Nil
|
0.66
|
|
8 July
2019
|
2.045
|
2.045
|
46.9%
|
5
|
0.8%
|
Nil
|
0.66
|
|
30 June
2020
|
1.475
|
1.475
|
50.32%
|
10
|
0.3%
|
Nil
|
0.60
|
|
23 June
2021
|
3.090
|
3.090
|
50.91%
|
10
|
0.7%
|
Nil
|
0.81
|
|
26
January 2022
|
4.160
|
4.160
|
49.18%
|
10
|
1.149%
|
Nil
|
1.12
|
|
22 June
2022
|
3.575
|
3.575
|
34.12%
|
5
|
2.748%
|
Nil
|
0.71
|
22 May
2023
|
3.270
|
3.270
|
38.15%
|
5
|
4.219%
|
Nil
|
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.
24. Non-controlling interest
(Euro 000's)
|
2023
|
|
2022
|
Opening balance
|
(6,998)
|
|
(4,909)
|
On acquisition of a
subsidiary
|
-
|
|
140
|
Share of total comprehensive
income for the year
|
(2,106)
|
|
(2,229)
|
Closing balance
|
(9,104)
|
|
(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)
|
2023
|
|
2022
|
Non-current assets
|
7,273
|
|
6,976
|
Current assets
|
601
|
|
551
|
Non-current liabilities
|
17,096
|
|
14,478
|
Current liabilities
|
697
|
|
824
|
Equity
|
(9,918)
|
|
(7,776)
|
Revenue
|
-
|
|
-
|
Loss for the year and total
comprehensive income
|
(2,341)
|
|
(2,477)
|
Cobre San Rafael, S.L. was
established on 13 June 2016.
25. Trade and other payables
THE GROUP
|
|
|
(Euro 000's)
|
31 Dec
2023
|
31 Dec
2022
|
Non-current trade and other payables
|
|
|
Other non-current
payables
|
2,003
|
2,000
|
Government grant
|
202
|
15
|
|
2,205
|
2,015
|
Current trade and other payables
|
|
|
Trade payables
|
70,303
|
84,806
|
Trade payables to shareholders
(Note 30.5)
|
179
|
232
|
Accruals
|
3,395
|
3,322
|
VAT payable
|
391
|
259
|
Other
|
1,654
|
1,403
|
|
75,922
|
90,022
|
THE COMPANY
|
|
|
(Euro 000's)
|
31 Dec
2023
|
31 Dec
2022
|
Current trade and other payables
|
|
|
Suppliers
|
477
|
284
|
Accruals
|
1,501
|
1,034
|
Payable to own subsidiaries (Note
30.4)
|
-
|
3,825
|
VAT payable
|
391
|
259
|
|
2,369
|
5,402
|
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)
|
Other
provisions
|
Legal costs
|
Rehabilitation
costs
|
Total costs
|
At 1 January 2022
|
-
|
279
|
26,299
|
26,578
|
Additions
|
-
|
30
|
1,033
|
1,063
|
Reclassification
|
1,435
|
-
|
-
|
1,435
|
Used of provision
|
-
|
(10)
|
(81)
|
(91)
|
Reversal of provision
|
-
|
(73)
|
(3,497)
|
(3,570)
|
Finance income (Note 8)
|
-
|
-
|
(380)
|
(380)
|
At
31 December 2022
|
1,435
|
226
|
23,374
|
25,035
|
Additions
|
-
|
1
|
-
|
1
|
Used of provision
|
(685)
|
-
|
(518)
|
(1,203)
|
Increase of provision
|
-
|
-
|
3,145
|
3,145
|
Finance cost (Note 9)
|
-
|
-
|
690
|
690
|
At
31 December 2023
|
750
|
227
|
26,691
|
27,668
|
(Euro 000's)
|
2023
|
|
2022
|
Non-Current
|
27,234
|
|
24,083
|
Current
|
434
|
|
952
|
Total
|
27,668
|
|
25,035
|
Rehabilitation provision
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.
The expected payments for the
rehabilitation work are as follows:
(Euro 000 's)
|
Between
1 - 5
Years
|
Between
6 - 10
Years
|
More
than 10 years
|
|
|
|
|
Expected payments for
rehabilitation of the mining site, discounted
|
8,563
|
3,275
|
14,853
|
Legal provision
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)
|
31 Dec
2023
|
|
31 Dec
2022
|
Non-current
|
|
|
|
Leases
|
3,877
|
|
4,378
|
|
3,877
|
|
4,378
|
Current
|
|
|
|
Leases
|
501
|
|
536
|
|
501
|
|
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:
|
Right - of-use
assets
|
|
|
|
|
|
|
(Euro 000's)
|
Lands and
buildings
|
Vehicles
|
Laboratory
equipment
|
Total
|
|
Lease
liabilities
|
|
|
|
|
|
|
|
As at 1 January 2023
|
5,048
|
-
|
30
|
5,078
|
|
4,914
|
Additions
|
-
|
-
|
-
|
-
|
|
-
|
Depreciation expense
|
(503)
|
-
|
(30)
|
(533)
|
|
-
|
Interest expense
|
-
|
-
|
-
|
-
|
|
25
|
Payments
|
-
|
-
|
-
|
-
|
|
(561)
|
As at 31 December 2023
|
4,545
|
-
|
-
|
4,545
|
|
4,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The amounts recognised in profit
or loss, are set out below:
(Euro 000's)
|
Twelve
month
ended
31 Dec
2023
|
Twelve
month ended
31
Dec
2022
|
|
|
|
As at 31 December
|
|
|
Depreciation expense of
right-of-use assets
|
(533)
|
(452)
|
Interest expense on lease
liabilities
|
(25)
|
(20)
|
Total amounts recognised in profit or loss
|
(558)
|
(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
|
|
€'000
|
€'000
|
Within one year
|
501
|
536
|
2 to 5 years
|
1,928
|
1,957
|
Over 5 years
|
1,949
|
2,421
|
|
4,378
|
4,914
|
|
|
|
Minimum lease payments due
|
31 Dec
2023
|
31 Dec
2022
|
|
€'000
|
€'000
|
Within one year
|
531
|
561
|
2 to 5 years
|
2,125
|
2,125
|
Over 5 years
|
2,285
|
2,818
|
|
4,941
|
5,504
|
(Euro 000's)
|
Lease
liability
|
Balance 1 January 2023
|
4,914
|
Additions
|
-
|
Interest expense
|
25
|
Lease payments
|
(561)
|
Balance at 31 Dec 2023
|
4,378
|
|
|
Balance at 31 Dec 2023
|
|
- Non-current liabilities
|
3,877
|
- Current liabilities
|
501
|
|
4,378
|
28. Borrowings
(Euro 000's)
|
31 Dec
2023
|
31 Dec
2022
|
Non-current borrowings
|
|
|
Credit facilities
|
16,131
|
20,768
|
|
16,131
|
20,768
|
Current borrowings
|
|
|
Credit facilities
|
50,556
|
52,595
|
|
50,556
|
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.
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
|
Effective proportion of
shares held
|
Atalaya Touro (UK) Ltd
|
Atalaya Mining Plc
|
Holding
|
United
Kingdom
|
100%
|
Atalaya Financing Ltd
|
Atalaya Mining Plc
|
Financing
|
Cyprus
|
100%
|
Atalaya MinasdeRiotinto Project
(UK) Ltd
|
Atalaya Mining Plc
|
Holding
|
United
Kingdom
|
100%
|
EMED Marketing Ltd
|
Atalaya Mining Plc
|
Trading
|
Cyprus
|
100%
|
Atalaya Riotinto Minera
S.L.U.
|
Atalaya MinasdeRiotinto Project
(UK) Ltd
|
Production
|
Spain
|
100%
|
Eastern Mediterranean Exploration
and Development S.L.U.
|
Atalaya MinasdeRiotinto Project
(UK) Ltd
|
Dormant
|
Spain
|
100%
|
Cobre San Rafael, S.L.
(1)
|
Atalaya Touro (UK) Ltd
|
Exploration
|
Spain
|
10%
|
Recursos Cuenca Minera
S.L.U.
|
Atalaya Riotinto Minera
SLU
|
Dormant
|
Spain
|
J-V
|
Fundacion Atalaya
Riotinto
|
Atalaya Riotinto Minera
SLU
|
Trust
|
Spain
|
100%
|
Atalaya Servicios Mineros,
S.L.U.
|
Atalaya MinasdeRiotinto Project
(UK) Ltd
|
Holding
|
Spain
|
100%
|
Atalaya Masa Valverde
S.L.U.
|
Atalaya Servicios Mineros,
S.L.U.
|
Exploration
|
Spain
|
100%
|
Atalaya Ossa Morena S.L.U.
(3)
|
Atalaya Servicios Mineros,
S.L.U.
|
Exploration
|
Spain
|
99.9%
|
Iberian Polimetal
S.L.U.
|
Atalaya Servicios Mineros,
S.L.U.
|
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.
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)
|
2023
|
2022
|
2023
|
2022
|
Directors' remuneration and
fees
|
1,092
|
1,028
|
605
|
540
|
Director's bonus
(1)
|
322
|
357
|
-
|
-
|
Share option-based benefits to
Directors
|
190
|
426
|
-
|
-
|
Key management personnel
remuneration (2)
|
588
|
571
|
-
|
-
|
Key management bonus
(1)
|
221
|
239
|
-
|
-
|
Share option-based and other
benefits to key management personnel
|
190
|
417
|
-
|
-
|
|
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).
30.3 Transactions with shareholders and related
parties
THE
GROUP
(Euro 000's)
|
2023
|
2022
|
Trafigura Pte Ltd - Revenue from
contracts (a)
|
78,723
|
77,005
|
Gains/(Losses) relating
provisional pricing within sales
|
1,308
|
(5,165)
|
|
80,031
|
71,840
|
|
|
|
Impala Terminals Huelva S.L.U. -
Port Handling and Warehousing services (b)
|
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.
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)
|
2023
|
2022
|
Sales of services (Note 5):
|
|
|
EMED Marketing
Ltd
|
2,540
|
1,404
|
Atalaya
Riotinto Minera SLU
|
2,472
|
1,352
|
|
5,012
|
2,756
|
Purchase of services (Note 6):
|
|
|
Atalaya
Riotinto Minera SLU
|
(19)
|
(66)
|
|
(19)
|
(66)
|
Finance income (Note 8):
|
|
|
Atalaya Minasderiotinto Project (UK) Ltd - Finance income
from interest-bearing loan:
|
Credit agreement - at amortised cost
|
-
|
989
|
Participative loan - at fair value through profit
and loss
|
-
|
9,157
|
Credit facility - at amortised cost
|
-
|
1,465
|
Restructuring loan - at amortised cost
|
14,087
|
1,289
|
|
14,087
|
12,900
|
30.4 Year-end balances with related parties
THE
GROUP
(Euro 000's)
|
31 Dec
2023
|
31 Dec
2022
|
Current assets - Receivable from related parties (Note
19):
|
|
|
Recursos Cuenca Minera
S.L.
|
56
|
56
|
Total
|
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)
|
-
|
6,150
|
Atalaya Ossa Morena SL -
Participative Loan (2) (3)
|
-
|
3,100
|
Atalaya Touro UK Ltd -
Participative Loan (2) (3)
|
-
|
4,997
|
|
-
|
14,247
|
|
|
|
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
|
399
|
|
227
|
245,657
|
|
|
|
Current assets - Loans and receivables from related parties
at amortised cost (Note 19):
|
Atalaya Riotinto Minera SLU
- Group cost sharing
|
3,824
|
1,352
|
EMED Marketing Ltd - Group
cost sharing
|
3,686
|
664
|
EMED Marketing Ltd
(2)
|
15,390
|
-
|
Atalaya Touro (UK) Ltd
(2)
|
1,654
|
1,650
|
Atalaya MinasdeRiotinto Project
(UK) Ltd
|
45,000
|
45,000
|
Atalaya Financing Ltd
|
1,243
|
108
|
|
70,797
|
48,774
|
(1)
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).
(2)
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)
|
31 Dec
2023
|
31 Dec
2022
|
Payable to related party (Note 25):
|
|
|
EMED Marketing Ltd
|
-
|
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
|
5,054
|
12,800
|
|
5,054
|
12,800
|
|
|
|
Payable from joint venture of shareholder (Note
25)
|
|
|
Impala Terminals Huelva S.L.U. -
Payable balance
|
(179)
|
(232)
|
|
(179)
|
(232)
|
The above debtor balance arising
from the agreements between Trafigura and Impala (Note 30.3), bear
no interest and is repayable on demand.
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.
· 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.
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.