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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Atalaya Mining Plc | LSE:ATYM | London | Ordinary Share | CY0106002112 | ORD 7.5P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
9.00 | 2.37% | 388.00 | 383.00 | 388.00 | 388.00 | 378.00 | 384.00 | 319,709 | 16:29:58 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Metal Mining Services | 362.13M | 33.16M | - | N/A | 0 |
TIDMATYM
RNS Number : 2232I
Atalaya Mining PLC
11 August 2021
11 August 2021
Atalaya Mining Plc
("Atalaya" and/or the "Group")
Unaudited Interim Condensed Consolidated Financial Statements for the period ended 30 June 2021
Atalaya Mining Plc (AIM: ATYM; TSX: AYM), the European mining and development company, is pleased to announce its quarterly and six-monthly results for the period ended 30 June 2021 ("Q2 2021" and "H1 2021" respectively) together with its unaudited interim condensed consolidated financial statements.
The Company increased EBITDA to EUR99.4 million in H1 2021 (H1 2020: EUR22.1 million) and cash flows from operating activities to EUR71.0 million (H1 2020: EUR23.0 million) as a result of robust operational performance at Proyecto Riotinto, combined with strong copper prices.
Total cash as at 30 June 2021 was EUR92.8 million up from EUR37.8 million as at 31 December 2020. Atalaya maintains a strong balance sheet with net cash of EUR37.8 million as at 30 June 2021 after drawing down facilities to pay Astor during Q1 2021.
The Unaudited Interim Condensed Consolidated Financial Statements for H1 2021 are also available under the Company's profile on SEDAR at www.sedar.com and on Atalaya's website at www.atalayamining.com.
Financial Highlights
Period ended 30 June Q2 2021 Q2 2020 H1 2021 H1 2020 Revenues from operations EURk 99,724 56,544 197,104 117,733 ----------------- --------- --------- --------- --------- Operating costs EURk (47,755) (43,710) (97,692) (95,625) ----------------- --------- --------- --------- --------- EBITDA EURk 51,969 12,834 99,412 22,108 ----------------- --------- --------- --------- --------- Profit for the period EURk 32,291 3,035 65,993 5,966 ----------------- --------- --------- --------- --------- Basic earnings per share EUR cents/share 23.3 2.3 48.1 4.6 ----------------- --------- --------- --------- --------- Cash flows from operating activities EURk 34,196 7,515 70,999 23,000 ----------------- --------- --------- --------- --------- Cash flows used in investing activities EURk (6,923) (7,746) (70,853) (13,331) ----------------- --------- --------- --------- --------- Cash flows from / (used in) financing activities EURk 1,893 (9,415) 54,841 14,631 ----------------- --------- --------- --------- --------- Net Cash / (debt) position (1) EURk 37,777 (15,233) 37,777 (15,233) ----------------- --------- --------- --------- --------- Working capital surplus EURk 90,892 10,309 90,892 10,309 ----------------- --------- --------- --------- --------- Average realised copper price US$/lb 4.27 2.51 3.92 2.54 ----------------- --------- --------- --------- --------- Cu concentrate produced (tonnes) 74,495 60,938 141,755 120,941 ----------------- --------- --------- --------- --------- Cu production (tonnes) 14,353 13,635 28,332 26,864 ----------------- --------- --------- --------- --------- US$/lb Cash costs payable 2.26 1.87 2.15 1.93 ----------------- --------- --------- --------- --------- US$/lb All-In Sustaining Cost payable 2.52 2. 11 2.49 2.16 ----------------- --------- --------- --------- --------- (1) Includes bank borrowings and Deferred Consideration at 31 December 2020.
-- Q2 2021 revenues amounted to EUR99.7 million (Q2 2020: EUR56.5 million). H1 2021 revenues of EUR197.1 million were higher than for the same period in the prior year (H1 2020: EUR117.7 million). Higher revenues were the result of higher realised copper prices and slightly larger volumes of concentrate sold.
-- Q2 2021 operating costs were EUR47.8 million (Q2 2020: EUR43.7 million). H1 2021 operating costs amounted to EUR97.7 million (H1 2020: EUR95.6 million) reflecting the higher production volumes and higher cash costs.
-- Q2 2021 EBITDA of EUR52.0 million (Q2 2020: EUR12.8 million). H1 2021 EBITDA of EUR99.4 million (H1 2020: EUR22.1 million). The increase in EBITDA was driven by higher revenues while operating costs remained similar compared with Q2 2020.
-- Q2 2021 cash costs of US$2.26/lb of payable copper, higher than Q2 2020 cash costs of US$1.87/lb, mainly due to a weaker US Dollar/Euro rate in Q2 2021 ($1.10 per euro in Q2 2020 versus $1.20 per euro in Q2 2021) and a one-off adjustment in June. This was to expense a proportion of year-to-date capitalised stripping costs to reflect a higher life-of-mine waste-to-ore ratio following the updated reserves and resources announced that month.
-- Q2 2021 AISC was US$2.52/lb of payable copper, higher than US$2.11/lb during Q2 2020. The increase in AISC was driven by the same impacts as those for cash costs. Reported AISC excludes one-off investments in the tailings dam during the period, which amounted to EUR4.0 million (Q2 2020: EUR3.0 million).
-- Inventories of concentrate at 30 June 2021 amounted to EUR11.8 million (EUR2.9 million at 31 December 2020).
-- Working capital surplus as at 30 June 2021 of EUR90.9 million, representing a EUR108.8 million increase from a EUR17.9 million deficit as at 31 December 2020. The increase was mainly due to the impact of the EUR53 million paid to Astor Management, A.G. ("Astor") in Q1 2021 which was funded by long term unsecured facilities and cash generated from operations.
-- Cash flow used for investing activities amounted to EUR6.9 million and EUR70.9 million for Q2 2021 and H1 2021 respectively including EUR53 million paid to Astor in Q1 2021 (Q2 2020 and H1 2020: EUR7.7 million and EUR13.3 million respectively).
-- Q2 2021 cash from financing activities was EUR1.9 million. For H1 2021, the cash generated from financing activities was EUR54.8 million including unsecured facilities used to fund the payment to Astor in Q1 2021 (H1 2020: EUR14.6 million).
Operational Highlights
Proyecto Riotinto
-- Copper production during Q2 2021 was 14,353 tonnes, an increase of 5% compared with 13,635 tonnes produced during Q2 2020. Copper production for H1 2021 was 28,332 tonnes compared with 26,864 tonnes during H1 2020.
-- Ore processed during Q2 2021 was 4,025,327 tonnes, an increase on Q2 2020 when ore processed amounted to 3,572,094 tonnes. Total ore processed during H1 2021 amounted to 8,031,117 tonnes (H1 2020: 6,999,242 tonnes).
-- Copper recovery during the quarter was 84.83%, slightly lower than the 85.89% achieved in Q2 2020. For H1 2021 copper recovery was 84.85%, compared with 84.32% in H1 2020. Plant recoveries are in line with guidance.
Reserves and Resources Updates at Proyecto Riotinto
-- Following the independent reserves estimate announced on 24 June 2021 which confirmed the long life status of the Cerro Colorado open pit, studies have continued at Proyecto Riotinto.
As noted, a sizeable resource was identified at San Dionisio deposit that is potentially mineable by open pit. Further polymetallic mineralization could be exploited using underground mining methods at the Planes-San Antonio and San Dionisio deposits.
Work has started on the preparation of an NI 43-101 compliant technical report which will be followed by economic studies.
Proyecto Touro
-- The Company is finalising a new project to be presented to the Xunta de Galicia during Q3 2021. The new project for Touro includes a new design to address and resolve all the concerns previously raised by stakeholders during the Environmental Impact Evaluation Assessment.
-- The Company continues to be confident that its approach to Proyecto Touro is in line with international best practice and includes fully plastic lined tailings with zero discharge which will satisfy the most stringent environmental conditions that may be imposed by the authorities prior to development of the project .
Proyecto Masa Valverde
-- Exploration at Masa Valverde is continuing with ground geophysics and two rigs currently drilling around the new Majadales and the historic Masa Valverde deposits.
-- Technical work has begun with the objective of publishing NI 43-101 compliant resource estimates on the properties.
Proyecto Riotinto Este
-- The Los Herreros investigation permit was granted in May and the Company now has access to two of the three investigation permits at Riotinto Este: Cerro Negro and Los Herreros. The third investigation permit, Peñas Blancas, is expected to be granted in the coming months.
-- A proposal and quotes for an electromagnetic airborne geophysics survey covering Cerro Negro and Peñas Blancas investigation permits at Riotinto Este have been requested from three geophysical operators and the Company will provide a further update on activity for this area in due course.
Outlook 2021
-- Production guidance for FY2021 remains unchanged at between 52,000 and 54,000 tonnes of copper.
-- Cash costs and AISC expectations remain unchanged between US$2.25/lb to US$2.35/lb and US$2.50/lb to US$2.65/lb, respectively.
COVID-19 Update
-- Management continues to monitor the impact of COVID-19 on the operations and the ongoing cost structure and will update the market with any changes in expectations.
Other corporate developments
-- As previously announced, on 15 March 2021, the Company approved the early payment of the deferred consideration totalling EUR53 million (the "Deferred Consideration") to Astor Management, A.G. ("Astor") and consequently, Atalaya has removed the timing uncertainty from its balance sheet. The ongoing litigation relates to whether any residual interest on the Deferred Consideration may or may not be payable. Refer to Notes 18 and 25 in the Financial Statements for further information.
-- Following the dismissal of Astor's application for summary judgment which was heard on 14-15 June, the Company is currently working on other court directions in preparation for trial in February 2022 and continues to be confident in its case and is of the view that no residual interest should be payable to Astor.
The Company continues exploring opportunities to increase shareholder value:
-- Solar power project . Permitting of a 50 MW solar plant for self-consumption advanced significantly during H1 2021 and final construction permits are expected in the coming weeks.
-- E-LIX System . A feasibility study continues for an industrial plant using the third party-patented E-LIX System followed by conventional SX-EW to produce cathodes on site at Proyecto Riotinto. Results of the feasibility study are expected in Q3 2021.The E-LIX pilot plant is fully operational and continues gathering real data to be incorporated in the copper and zinc concentrates leaching section of the feasibility studies. The work at the pilot plant continues to support the viability of the E-LIX system and further details will be provided in due course.
Alberto Lavandeira, CEO commented:
"Atalaya has had another solid quarter and half year, driven by its robust operational performance and strong copper prices. Our team that delivered this financial performance also continues to focus on delivering new efficiencies to further increase shareholder value, including looking at new technologies to increase productivity and reducing our carbon footprint."
Investor Presentation Reminder
Alberto Lavandeira and C é sar S á nchez (CFO) will give a live presentation of these results via the Investor Meet Company platform at 13:00 BST today. To register please visit:
https://www.investormeetcompany.com/atalaya-mining-plc/register-investor and click on "Add to Meet" Atalaya.
Investors who already follow Atalaya Mining on the Investor Meet Company platform will automatically be invited.
This announcement contains information which, prior to its publication constituted inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
Contacts:
Elisabeth Cowell / Tom + 44 20 3757 SEC Newgate UK Carnegie 6880 +44 20 3170 4C Communications Carina Corbett 7973 ------------------------------- ------------- Canaccord Genuity (NOMAD Henry Fitzgerald-O'Connor +44 20 7523 and Joint Broker) / James Asensio 8000 ------------------------------- ------------- BMO Capital Markets (Joint +44 20 7236 Broker) Tom Rider / Andrew Cameron 1010 ------------------------------- ------------- +44 20 7418 Peel Hunt LLP (Joint Broker) Ross Allister / David McKeown 8900 ------------------------------- -------------
About Atalaya Mining Plc
Atalaya is an AIM and TSX-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 centralised 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. For further information, visit www.atalayamining.com
Management's review
(All amounts in Euro thousands unless otherwise stated)
For the period ended 30 June 2021 and 2020
Notice to Reader
The accompanying unaudited interim condensed consolidated financial statements of Atalaya Mining Plc have been prepared by and are the responsibility of Atalaya Mining Plc's management. The unaudited interim condensed consolidated financial statements have been reviewed by Atalaya's auditors in accordance with the International Standard on Review Engagements 2410 "Review of Interim Financial Information performed by the Independent Auditor of the Entity".
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"), t o enable the reader to assess material changes in the financial position between 31 December 2020 and 30 June 2021 and results of operations for the three and six months ended 30 June 2021 and 2020.
This report has been prepared as of 10 August 2021. The analysis hereby included is intended to supplement and complement the unaudited interim condensed consolidated financial statements and notes thereto ("Financial Statements") as at and for the period ended 30 June 2021. The reader should review the Financial Statements in conjunction with the review of this report and with the audited, consolidated financial statements for the year ended 31 December 2020, and the unaudited interim condensed consolidated financial statements for the period ended 30 June 2020. These documents can be found on Atalaya's website at www.atalayamining.com .
Atalaya prepares its Annual Financial Statements in accordance with International Financial Reporting Standards ("IFRSs") as adopted by the EU and its Unaudited Interim Condensed Consolidated Financial Statements in accordance with International Accounting Standards 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 description of the Business
Atalaya 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 ("AIM") in May 2005 under the symbol ATYM and on the Toronto Stock Exchange ("TSX") on 20 December 2010 under the symbol AYM. The Company continued to be listed on AIM and the TSX as at 30 June 2021.
Atalaya is a European mining and development company and currently owns three mining projects: Proyecto Riotinto, Proyecto Touro and Proyecto Masa Valverde. In addition, the Company has an earn-in agreement to acquire three investigation permits at Proyecto Riotinto Este.
Proyecto Riotinto
Proyecto Riotinto, wholly owned by the Company's subsidiary Atalaya Riotinto Minera, S.L.U., is located in Huelva, Spain. The Group operates the Cerro Colorado open pit mine and its associated processing plant where copper in concentrate and silver by-product is produced. A brownfield expansion of the plant was completed in 2019 and successfully commissioned in 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 mineralisation, which will add to the potential of Proyecto Touro.
Proyecto Masa Valverde
On 21 October 2020, the Company announced that it had 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). Proyecto Masa Valverde is currently in the permitting process.
Proyecto Riotinto Este
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. Overview of Operational Results
Proyecto Riotinto
The following table presents a summarised statement of operations of Proyecto Riotinto for the three and six months ended 30 June 2021 and 2020, respectively.
Three months ended Three months ended Six months ended Six months Units expressed in 30 June 2021 30 June 2020 30 June 2021 ended accordance with the Unit 30 June 2020 international system of units (SI) Ore mined t 3,291,938 3,232,331 6,620,327 6,261,693 Ore processed t 4,025,327 3,572,094 8,031,117 6,999,242 Copper ore grade % 0.42 0.44 0.42 0.46 Copper concentrate grade % 19.27 22.35 19.99 22.21 Copper recovery rate % 84.83 85.89 84.85 84.32 Copper concentrate t 74,495 60,938 141,755 120,941 Copper contained in concentrate t 14,353 13,635 28,332 26,864 Payable copper contained in concentrate t 13,608 13,025 26,914 25,654 Cash cost* US$/lb payable 2.26 1.87 2.15 1.93 All-in sustaining cost* US$/lb payable 2.52 2.11 2.49 2.16
(*) Refer to page 8 of the audited consolidated financial statements of Atalaya Mining Plc for 2020.
Note: The numbers in the above table may slightly differ among them due to rounding.
Three months operational review
During Q2 2021 a total of 4.0 million tonnes of ore was processed with an average copper head grade of 0.42% and a recovery rate of 84.83%. In comparison with the same quarter of 2020, throughput increased 11% while recovery decreased 1.26%.
Despite ongoing COVID-19 restrictions, mining operations have continued normally with higher production levels compared with the previous quarter.
The plant processed 4.03 million tonnes of ore during Q2 2021 equivalent to an annual throughput rate of approximately 16 Mtpa. Low grade stockpiles added extra tonnage.
The increase in copper production, when compared with the Company's guidance, is mainly attributable to higher throughput and, to a lesser extent, to better recoveries than planned. Copper production in Q2 2021 was 14,353 tonnes, 2.7% higher than Q1 2021 and 5.3% higher than Q2 2020.
On-site concentrate inventories at the end of the quarter were approximately 15,103 tonnes.
Copper prices increased during Q2 2021 compared with Q1 2021, with an average realised price per pound of copper payable, including the QPs closed in the period, of US$4.27/lb compared with US$2.51/lb in Q2 2020. The average copper spot price during the quarter was US$4.40/lb. The realised price during the quarter, excluding QPs, was approximately US$4.40/lb.
Six months operational review
Production of copper contained in concentrate during H1 2021 was 28,332 tonnes, compared with 26,864 tonnes in the same period of 2020. Payable copper in concentrates was 26,914 tonnes compared with 25,654 tonnes of payable copper in H1 2020.
Ore mined in H1 2021 was 6,620,327 tonnes compared with 6,261,693 tonnes during H1 2020. Ore processed was 8,031,117 tonnes versus 6,999,242 tonnes in H1 2020 due to the utilisation of low grade stockpiles.
Ore grade during H1 2021 was 0.42% Cu compared with 0.46% Cu in H1 2020. Copper recovery was 84.85% versus 84.32% in H1 2020. Concentrate production amounted to 141,755 tonnes above H1 2020 production of 120,941 tonnes as increased throughput offset the slightly lower grade and recoveries.
3. Outlook
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 introduction note of this report. The Company is aware that the COVID-19 pandemic may still have further effects of impact on how the Company can manage its 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.
Operational guidance
Proyecto Riotinto operational guidance for 2021 remains unchanged but expected to be towards the high end of production guidance and the lower end of cost guidance. Should the Company consider the current guidance no longer achievable, then the Company will provide a further update.
Guidance Unit 2021 Ore processed million tonnes 15.1 Contained copper in concentrate tonnes 52,000 - 54,000
Copper head grade for 2021 is budgeted to average 0.42% copper, with a recovery rate between 82-84%. Cash operating costs for 2021 are expected to be in the range of US$2.25/lb - US$2.35/lb. AISC for 2021 is expected to be in the range of US$2.50/lb - US$2.65 /lb copper payable. In addition, the Company expects to spend approximately EUR17 million in 2021 as part of the project to increase the capacity of the tailings dam. AISC are reported net of the one-off project to increase the capacity of the tailings dam.
4. Overview of the Financial Results
The following table presents summarised consolidated income statements for the three and six months ended 30 June 2021, with comparatives for the three and six months ended 30 June 2020, respectively.
Three months ended Three months ended Six months ended Six months ended 30 June 2021 30 June 2020 30 June 2021 30 June 2020 ( Euro 000's ) Revenue 99,724 56,544 197,104 117,733 Costs of sales (45,753) (43,020) (93,779) (92,211) Administrative and other expenses (1,452) (450) (3,025) (2,158) Exploration expenses (279) (202) (399) (1,104) Care and maintenance expenditure (284) (46) (502) (160) Other income 13 8 13 8 EBITDA 51,969 12,834 99,412 22,108 Depreciation/amortisation (6,882) (7,101) (15,826) (13,767) Impairment loss on other receivables - - - (45) Net foreign exchange (loss)/gain (900) (1,061) 2,031 (616) Net finance cost (247) (138) (330) (149) Tax (11,649) (1,499) (19,294) (1,565) ------------------- ------------------- ----------------- ----------------- Profit for the period 32,291 3,035 65,993 5,966 ------------------- ------------------- ----------------- -----------------
Three months financial review
Revenues for the three-month period ended 30 June 2021 amounted to EUR99.7 million (Q2 2020: EUR56.5 million). Higher revenues, compared with the same quarter in the previous year, were largely driven by higher copper prices and by higher volumes sold during the period.
Realised prices were US$4.27/lb copper during Q2 2021 compared with US$2.51/lb copper in Q2 2020. Q2 2020 average copper price was significantly impacted by COVID-19 outbreak. The realised price during the quarter, excluding QPs, was approximately US$4.40/lb.
Operating costs for the three-month period ended 30 June 2021 amounted to EUR45.8 million, compared with EUR43.0 million in Q2 2020. In absolute terms, higher operating costs were mainly due to more tonnes being mined and processed during the quarter.
Cash costs of US$2.26/lb payable copper during Q2 2021 compared with US$1.87/lb payable copper in the same period last year. Q2 2021 operating costs were in line with expectations. Higher mined volumes and a weaker US Dollar rate against the Euro resulted in a higher cash cost. AISC excluding one-off investments in the tailings dam previously reported as sustaining capex for Q2 2021 were US$2.52/lb payable copper compared with US$2.11/lb payable copper in Q2 2020.
Sustaining capex for Q2 2021 amounted to EUR1.4 million compared with EUR1.6 million in Q2 2020. Sustaining capex mainly related to continuous enhancements in the processing systems of the plant. In addition, the Company invested EUR 4.0 million in the project to increase the tailings dam during Q2 2021 (Q2 2020: EUR3.0 million). Stripping costs capitalised during Q2 2021 amounted to EUR1.5 million (Q2 2020: EUR2.0 million).
Administrative and other expenses amounted to EUR1.5 million (Q2 2020: EUR0.5 million) and include non-operating costs of the Cyprus office, corporate legal and consultancy costs, on-going listing costs, officers and directors' emoluments, and salaries and related costs of the corporate office.
Exploration costs on Atalaya's projects portfolio for the three-month period ended 30 June 2021 amounted to EUR0.1 million (Q2 2020: EUR0.2 million).
EBITDA for the three months ended 30 June 2021 amounted to EUR52.0 million compared with Q2 2020 of EUR12.8 million.
The main item below the EBITDA line is depreciation and amortisation of EUR6.9 million (Q2 2020: EUR7.1 million) which decreased in Q2 as a result of the increase of the reserves and resources as announced by the Company in July 2021. Net financing costs for Q2 2021 amounted to EUR0.2 million (Q2 2020: EUR0.1 million).
Six months financial review
Revenues for the six-month period ended 30 June 2021 amounted to EUR197.1 million (H1 2020: EUR117.7 million).
Copper concentrate production during the six-month period ended 30 June 2021 was 141,755 tonnes (H1 2020: 120,941 tonnes) with 138,833 tonnes of copper concentrates sold in the period (H1 2020: 131,297 tonnes). Inventories of concentrates as at the reporting date were 15,103 tonnes (31 Dec 2020: 3,845 tonnes).
Realised copper prices for H1 2021 were US$3.92/lb copper compared with US$2.54/lb copper in the same period of 2020. Concentrates were sold under offtake agreements and certain spot agreements for the production not committed. The Company did not enter into any hedging agreements in 2021.
Operating costs for the six-month period ended 30 June 2021 amounted to EUR93.8 million, compared with EUR92.2 million in H1 2020. Higher costs in 2021 reflected the higher production volumes.
Cash costs of US$2.15/lb payable copper during H1 2021 compare with US$1.93/lb payable copper in the same period last year. Q2 2021 costs was in line with expectations . All-in sustaining costs in the reporting quarter were US$2.49/lb payable copper compared with US$2.25/lb payable copper in H1 2020. Higher AISC were driven by the same impacts as those for cash costs.
Sustaining capex for the six-month period ended 30 June 2021 amounted to EUR3.4 million, compared with EUR2.9 million in the same period the previous year. Sustaining capex related to enhancements in processing systems of the plant. In addition, the Company invested EUR6.8 million in the project to increase the tailings dam, compared with EUR5.0 million in 2020. Stripping costs capitalised during H1 2021 amounted to EUR5.7 million (H1 2020: EUR3.2 million).
Corporate costs for the first six-month period ending June 2021 were EUR3.0 million, compared with EUR2.2 million in H1 2020. Corporate costs mainly include the Company's overhead expenses.
Exploration costs related to Atalaya's project portfolio for the six-month period ended 30 June 2021 and amounted to EUR0.4 million, compared with EUR1.1 million in H1 2020. Lower costs were the result of a decrease in drilling activities. During the period 1,839m were drilled against 8,732m in the same period the previous year.
EBITDA for the six months ended 30 June 2021 amounted to EUR99.4 million, compared with EUR22.1 million in H1 2020.
Depreciation and amortisation amounted to EUR15.8 million for the six-month period ended 30 June 2021 (H1 2020: EUR13.8 million) as a result of the higher throughput.
Net finance costs for H1 2021 amounted to EUR0.3 million (H1 2020 EUR0.1 million).
Copper prices
The average realised copper price increased by 70% from US$2.51 per pound in Q2 2020 to US$4.27 per pound in Q2 2021.
The average prices of copper for the three months ended 30 June 2021 and 2020 are summarised below:
Three months ended Three months ended Six months ended Six months ended 30 June 2021 30 June 2020 30 June 2021 30 June 2020 ( USD ) Realised copper price per lb 4.27 2.51 3.92 2.54 Market copper price per lb (period average) 4.40 2.42 4.13 2.49
Realised copper prices for the reporting period noted above have been calculated using payable coppe r and including provisional invoices and final settlements of quotation periods ("QPs") together. Lower realised prices than market averages are mainly due to the final settlement of invoices where QP was fixed in the previous quarter due to a short open period when copper prices were lower. Q2 2021 realised price excluding QPs was approximately US$4.40/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. Realised price is consistent with the widely accepted industry standard definition.
Cash cost methodology
During the last quarter of 2020, AISC was recalculated to exclude the one-off investments in the tailings dam project. Further details including the impact on earlier quarters are given in the 2020 audited consolidated financial statements.
6. Liquidity and Capital Resources
Atalaya monitors factors that could impact its liquidity as part of Atalaya'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 and cash flows as at 30 June 2021 and 31 December 2020.
Liquidity information
( Euro 000's ) 30 June 2021 31 December 2020 Unrestricted cash and cash equivalents at Group level 18,788 24,519 Unrestricted cash and cash equivalents at Operation level 73,966 13,248 ------------- ------------ Consolidated cash and cash equivalents 92,754 37,767 ------------- ------------ Net cash / (debt) position (1) 37,777 (15,233) Working capital surplus / (deficit) 90,961 (17,904)
(1) Includes bank borrowings and Deferred Consideration at 31 December 2020.
Unrestricted cash and cash equivalents as at 30 June 2021 increased to EUR92.8 million from EUR37.8 million at 31 December 2020. The increase in cash balances is the result of net cash flow incurred in the period and draw down of credit facilities offset by the payment of the deferred consideration. Cash balances are unrestricted and include balances at the operational and corporate levels.
As of 30 June 2021, Atalaya reported a working capital surplus of EUR90.9 million, compared with a working capital deficit of EUR17.9 million at 31 December 2020. The main liability of the working capital is trade payables related to Proyecto Riotinto contractors to a lesser extent, short-term loans following the drawdown of credit facilities during Q1 2021. The increase in working capital resulted from higher cash balances as well as payment of the Deferred Consideration, which was included in current liabilities at the end of 2020, by utilising long-term credit facilities. At 30 June 2021, trade payables have been decreased by circa 17% compared with 31 December 2020.
Overview of the Group's cash flows
Three months ended Three months ended Six months ended Six months ended 30 June 2021 30 June 2020 30 June 2021 30 June 2020 ( Euro 000's ) Cash flows from operating activities 34,196 7,515 70,999 23,000 Cash flows used in investing activities (6,923) (7,746) (70,853) (13,331) Cash flows from/(used in) financing activities 1,893 (9,415) 54,841 14,631 ------------------- ------------------- ----------------- ----------------- Net increase/(decrease) in cash and cash equivalents 29,166 (9,646) 54,987 24,300 ------------------- ------------------- ----------------- -----------------
Three months cash flows review
Cash and cash equivalents increased by EUR29.2 million during the three months ended 30 June 2021. This was due to the net results of cash from operating activities amounting to EUR34.2 million, the cash used in investing activities amounting to EUR6.9 million and the cash generated from financing activities totalling EUR1.9 million.
Cash generated from operating activities before working capital changes was EUR51.0 million. Atalaya increased its trade receivables in the period by EUR1.7 million, increased its inventory levels by EUR6.8 million and decreased its trade payables by EUR2.1 million.
Investing activities during the quarter consumed EUR6.9 million, relating mainly to the tailing dams Capex and sustaining Capex mostly in enhancements in processing systems of the plant.
Financing activities during the quarter increased by EUR1.9 million as result of the use of existing unsecured credit facilities.
Six months cash flows review
Cash and cash equivalents increased by EUR55.0 million during the six months ended 30 June 2021. This was due to cash from operating activities amounting to EUR71.0 million, cash used in investing activities amounting to EUR70.9 million and cash from financing activities amounting to EUR54.8 million.
Cash generated from operating activities before working capital changes was EUR104.2 million. Atalaya decreased its trade payables in the period by EUR11.7 million, decreased its inventory levels by EUR3.6 million and increased its trade receivable balances by EUR10.7 million.
Investing activities during the six-month period amounted to EUR70.9 million, relating mainly to the early payment of the Deferred Consideration to Astor and the tailings dam project and continuous enhancements to the processing systems of the plant.
Financing activities during the six-month period ended 30 June 2021 increased by EUR54.8 million driven by the use of existing unsecured credit facilities to pay the Deferred Consideration. The payment was financed by unsecured credit lines by four major Spanish banks having a three-year tenure and an average annual interest rate of approximately two per cent.
Foreign exchange
Foreign exchange rate movements can have a significant effect on Atalaya's operations, financial position and results. Atalaya's sales are denominated in U.S. dollars ("USD"), while Atalaya's operating expenses, income taxes and other expenses are mainly denominated in Euros ("EUR") which is the functional currency of the Group, and to a much lesser extent in British Pounds ("GBP").
Accordingly, fluctuations in the exchange rates can potentially impact the results of operations and carrying value of assets and liabilities on the balance sheet.
During the three and six months ended 30 June 2021, Atalaya recognised a foreign exchange loss of EUR0.9 million and profit of EUR2.0 million, respectively. Foreign exchange losses mainly related to changes in the period in EUR and USD conversion rates, as all sales are cashed and occasionally held in USD.
The following table summarises the movement in key currencies versus the EUR:
Three months ended Three months ended Six months ended Six months ended 30 June 2021 30 June 2020 30 June 2021 30 June 2020 Average rates for the periods GBP - EUR 0.8621 0.8874 0.8680 0.8746 USD - EUR 1.2058 1.1014 1.2053 1.1020 Spot rates as at GBP - EUR 0.8581 0.9124 0.8581 0.9124 USD - EUR 1.1884 1.1198 1.1884 1.1198 7. Deferred Consideration
In September 2008, the Group moved to 100% ownership of Atalaya Riotinto Mineral S.L. ("ARM") (and thus full ownership of Proyecto Riotinto) by acquiring the remaining 49% of the issued capital of ARM. At the time of the acquisition, the Group signed a Master Agreement (the "Master Agreement") with Astor Management AG ("Astor") which included a deferred consideration of EUR43.9 million (the "Deferred Consideration") payable as consideration in respect of the acquisition among other items. The Company also entered into a credit assignment agreement at the same time with a related company of Astor, Shorthorn AG, pursuant to which the benefit of outstanding loans was assigned to the Company in consideration for the payment of EUR9.1 million to Shorthorn (the "Loan Assignment").
The Master Agreement has been the subject of litigation in the High Court and the Court of Appeal that has now concluded. As a consequence, ARM must apply any excess cash (after payment of operating expenses, sustaining capital expenditure, any senior debt service requirements and up to US$10 million per annum (for non-Proyecto Riotinto related expenses)) to pay the consideration due to Astor (including the Deferred Consideration and the amount of EUR9.1 million payable under the Loan Assignment). "Excess cash" is not defined in the Master Agreement leaving ambiguity as to how it is to be calculated.
On 2 March 2020, the Company filed an application in the High Court to seek clarity on the definition of "Excess Cash". The Company and Astor have now exchanged statements of case to set out their formal position. The trial is listed to be heard from 21 February 2022 (the "Trial"). Following the filing of the statements of case for the Trial, Astor applied to Court seeking an early determination (without the need for a full trial) of the dispute in relation to the "Excess Cash" (the "Summary Judgment application"). The Summary Judgment application was heard on 14-15 June 2021. The Court dismissed Astor's application and the question as to whether any residual interest is payable to Astor therefore remains to be resolved at Trial.
As previously announced, during December 2020 the Board had discussions and considered an early payment of the Deferred Consideration and the Loan Assignment provided certain conditions could be met. Conditions included among others the execution of credit facilities agreements to fund the payment.
In March 2021, the Company fulfilled all conditions required by the Board of Directors and made the early payment of EUR53 million to Astor. The payment was fully funded by unsecured credit facilities entered into between December 2020 and February 2021 at interest rates ranging from 1.60% to 2.45% and repayable by 2023 and 2024.
The payment of the Deferred Consideration does not end the ongoing litigation as the issue as to whether any residual interest may or may not be payable remains unresolved. Consequently, on 15 July 2021, the Company transferred EUR15.4 million to a trust account (the "Trust Account") representing the full amount of interest claimed by Astor to 30 June 2022. The holder of the Trust Account has provided an undertaking to hold the full amount until settlement of the claim to interest or judgment following the Trial. The Company understands the monies held in the Trust Account safeguard the maximum outstanding liability to Astor in relation to the Master Agreement. On that basis, and because the Consideration has been paid in full in accordance with the Master Agreement, Atalaya treats itself as free of the obligations set out in the Master Agreement.
The Company is currently working on other court directions in preparation for the Trial and continues to be confident in its case and is of the view that no residual interest will be payable to Astor.
8. Corporate Social Responsibility
Fundación Atalaya Riotinto ("Fundacion") has continued striving to develop initiatives to comply with its social responsibility during the second quarter of the year.
In this regard, the Fundacion has completed the training programme for unemployed people from local communities also supported by Proyecto Riotinto's main contractors. The programme has concluded satisfactorily for both people and companies, and hirings have already started.
During the quarter, the Fundacion has cooperated in several initiatives with the municipality of Minas de Riotinto: i) supporting a Tourism Quality Plan for the town to assess various initiatives towards obtaining relevant qualifications thus improving the competitivity of the town as a tourism destination; ii) funding the improvement of the Via Verde, a local country path and; iii) pavement repairs of streets, and the installation of new urban furniture.
Furthermore, the Company allowed access to Corta Atalaya and its look-out to establish a new tourist attraction.
9. Health and Safety
During the quarter, the most significant actions were focused on Covid-19 prevention measures. The SAR-CoV2 control tests continued to be carried out in the infirmary: antigens, antibodies and PCR, as well as the other measures implemented to prevent the spread of the virus. It should also be noted that Atalaya has joined the Junta de Andalucía's Sumamos Plan to facilitate vaccination to anyone (employee or contractor) interested and within the age range authorised by the regional administration. In June 2021, 80 workers over 35 years old were vaccinated. 46% of them were Atalaya's employees.
On the other hand, drug testing has been in place since April 2021 to prevent work under the influence of psychoactive substances. During Q1 2021 was voluntary and since June 2021 it has been compulsory at the entrances of the facilities and in the event of any accident at work.
Field leadership activities are growing in strength. The aim is to implement a safety culture throughout the entire work line.
10. Environment
During the second quarter of 2021, the environmental department has continued executing the actions of environmental monitoring of the activity, management of the natural environment and the usual historical heritage. Key points of the quarter:
-- A total rainfall of 95.2 l/m(2) was recorded in Q2 2021, which was around 39% less than in the same period of previous year.
-- All the periodic internal controls of non-channelled emissions into the atmosphere have been carried out, and the results of the controls are within the limit values set out in the regulations. In addition, the annual external control of emissions (channelled and non-channelled) was carried out in April 2021. Likewise, all the results obtained are within the applicable limit values.
-- During the second quarter, the additional measures contemplated in the action plan against dust continued to be implemented, intensifying periodic risks, implementing new coordination measures and carrying out exhaustive monitoring of the emissions generated in the operation.
-- In the second quarter of the year, the Environmental Risk Analysis report was drawn up in accordance with the requirements of Law 26/2007 on Environmental Liability, and subsequent amendments, to determine the amount of the Mandatory Financial Guarantee to cover the costs of possible repair measures to be adopted in the event of environmental damage caused by the activity. Given the results obtained in this report and the existence of a certified Environmental Management System in the company (UNE EN ISO 14001), Atalaya is exempted from the obligation to provide this guarantee.
-- Finally, during this second quarter, the Carbon Footprint report for 2019 and 2020 was completed. Subsequently, after validation by an external company, it will be included in the voluntary register of Carbon Footprint and reduction commitment of the Ministry of Ecological Transition and the Demographic Challenge.
11. 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 2020.
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 COVID-19 (refer to point 13 below).
12. Critical accounting policies, estimates, judgements, assumptions and accounting changes
The preparation of Atalaya's Financial Statements in accordance with IFRS requires management to make estimates, judgements and assumptions that affect amounts reported in the Financial Statements and accompanying notes. There is a full discussion and description of Atalaya's critical accounting policies in the audited consolidated financial statements for the year ended 31 December 2020.
As at 30 June 2021, there are no significant changes in critical accounting policies or estimates to those applied in 2020.
13. COVID-19 impact
It is Atalaya's priority to protect its workforce and the local communities surrounding Proyecto Riotinto, Proyecto Masa Valverde and Proyecto Touro. Atalaya is following the requirements and recommendations issued by the Government of Spain and the regional and local health authorities to reduce the risk of COVID-19 exposure and avoid the spread of the virus.
14. Other Information
Additional information about Atalaya Mining Plc. is available at www.atalayamining.com
Unaudited interim condensed consolidated financial statements on pages 13 to 35
By Order of the Board of Directors,
___________________________________
Roger Davey
Chairman
Nicosia, 10 August 2021
REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
TO ATALAYA MINING PLC
Introduction
We have reviewed the interim condensed consolidated financial statements of Atalaya Mining Plc (the "Company"), and its subsidiaries (collectively referred to as "the Group") on pages 13 to 34 contained in the accompanying interim report, which comprise the interim condensed consolidated statement of financial position as at 30 June 2021 and the interim condensed consolidated statements of profit or loss and other comprehensive income, changes in equity and cash flows for the period then ended and selected explanatory notes. Management is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with International Financial Reporting Standard IAS 34 Interim Financial Reporting (IAS 34). Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements do not present fairly, in all material respects, the financial position of the Group as at 30 June 2021 and of its financial performance and its cash flows for the period then ended in accordance with International Financial Reporting Standard IAS 34 Interim Financial Reporting (IAS 34).
Stavros Pantzaris Certified Public Accountant and Registered Auditor for and on behalf of Ernst & Young Cyprus Limited Certified Public Accountants and Registered Auditors Nicosia 10 August 2021
Unaudited Interim Condensed Consolidated Income Statements
(All amounts in Euro thousands unless otherwise stated)
For the period ended 30 June 2021 and 2020
Three Three Six months Six months months ended months ended ended 30 June ended 30 June 30 June 2021 30 June ( Euro 000's ) Note 2021 2020 2020 Revenue 4 99,724 56,544 197,104 117,733 Operating costs and mine site administrative expenses (45,598) (42,860) (93,470) (91,890) Mine site depreciation and amortization (6,882) (7,101) (15,826) (13,767) ---------- ========== =========== ========== Gross profit 47,244 6,583 87,808 12,076 Administration and other expenses (1,452) (450) (3,025) (2,158) Share-based benefits 13 (155) (160) (309) (321) Impairment loss on other receivables - - - (45) Exploration expenses (279) (202) (399) (1,104) Care and maintenance expenditure (284) (46) (502) (160) Operating profit 45,074 5,725 83,573 8,288
Other income 13 8 13 8 Net foreign exchange (loss)/gain (900) (1,061) 2,031 (616) Net finance costs 5 (247) (138) (330) (149) ---------- ---------- Profit before tax 43,940 4,534 85,287 7,531 Tax 6 (11,649) (1,499) (19,294) (1,565) ---------- ---------- =========== ========== Profit for the period 32,291 3,035 65,993 5,966 ---------- ---------- =========== ========== Profit for the period attributable to: * Owners of the parent 32,583 3,217 66,441 6,392 * Non-controlling interests (292) (182) (448) (426) ---------- 32,291 3,035 65,993 5,966 ---------- ========== =========== ========== Earnings per share from operations attributable to equity holders of the parent during the period: Basic earnings per share (EUR cents per share) 7 23.3 2.3 48.1 4.6 ---------- ========== =========== ========== Fully diluted earnings per share (EUR cents per share) 7 22.9 2.3 47.1 4.5 ---------- ========== =========== ========== Profit for the period 32,291 3,035 65,993 5,966 Other comprehensive income: Change in fair value of financial assets through other comprehensive income 'OCI' (7) 10 2 (9) ---------- Total comprehensive income for the period 32,284 3,045 65,995 5,957 ---------- ========== =========== ========== Total comprehensive income for the period attributable to: * Owners of the parent 32,576 3,227 66,443 6,383 * Non-controlling interests (292) (182) (448) (426) ---------- ----------- 32,284 3,045 65,995 5,957 ---------- ========== ----------- ==========
The notes on pages 17 to 35 are an integral part of these Unaudited Interim Condensed Consolidated Financial Statements.
Unaudited Interim Condensed Consolidated Statement of Financial Position
(All amounts in Euro thousands unless otherwise stated)
As at 30 June 2021 and 2020
30 June 31 December (Euro 000's) Note 2021 2020 Assets Unaudited Audited Non-current assets Property, plant and equipment 8 332,139 327,174 Intangible assets 9 57,653 59,816 Trade and other receivables 11 2,860 2,715 Non-current financial assets 1,101 1,101 Deferred tax asset 8,601 8,805 ========== =========== 402,354 399,611 ========== =========== Current assets Inventories 10 27,145 23,576 Trade and other receivables 11 54,451 43,191 Tax refundable 98 815 Other financial assets 88 86 Cash and cash equivalents 92,754 37,767 ========== =========== 174,536 105,435 ========== =========== Total assets 576,890 505,046 ========== =========== Equity and liabilities Equity attributable to owners of the parent Share capital 12 13,445 13,439 Share premium 12 315,865 315,714 Other reserves 13 52,149 40,049 Accumulated profits/(losses) 38,862 (15,512) ========== =========== 420,321 353,690 Non-controlling interests (3,939) (3,491) ---------- ----------- Total equity 416,382 350,199 ---------- ----------- Liabilities Non-current liabilities Trade and other payables 14 1,463 1,448 Provisions 15 28,163 25,264 Lease liabilities 17 4,997 4,796 Borrowings 16 42,242 - ========== =========== 76,865 31,508 ========== =========== Current liabilities Trade and other payables 14 56,854 68,437 Lease liabilities 17 602 592 Borrowings 16 12,735 - Deferred consideration 18 - 53,000 Current tax liabilities 13,452 1,310 83,643 123,339 ========== =========== Total liabilities 160,508 154,847 ========== =========== Total equity and liabilities 576,890 505,046 ========== ===========
The notes on pages 17 to 35 are an integral part of these Unaudited Interim Condensed Consolidated Financial Statements. The unaudited interim condensed consolidated financial statements were authorised for issue by the Board of Directors on 10 August 2021 and were signed on its behalf.
Roger Davey Alberto Lavandeira Chairman Managing Director
Unaudited Interim Condensed Consolidated Statements of Changes in Equity
(All amounts in Euro thousands unless otherwise stated)
For the period ended 30 June 2021 and 2020
Non-controlling Note Share Share Other Accum. interest Total (Euro 000's) capital premium(1) reserves Profits Total equity ---------------- At 1 January 2021 13,439 315,714 40,049 (15,512) 353,690 (3,491) 350,199 Profit for the period - - - 66,441 66,441 (448) 65,993 Change in fair value of financial assets through OCI - - 2 - 2 - 2 ---------- ------------- ---------- --------- -------- ---------------- --------- Total comprehensive income - - 2 66,441 66,443 (448) 65,995 Transactions with owners Issuance of share capital 12 6 151 - - 157 - 157 Recognition of depletion factor 13 - - 6,100 (6,100) - - - Recognition of share-based payments 13 - - 309 - 309 - 309 Recognition of non-distributable reserve 13 - - 2,372 (2,372) - - - Recognition of distributable reserve 13 - - 3,317 (3,317) - - - Other changes in equity - - - (278) (278) - (278) At 30 June 2021 13,445 315,865 52,149 38,862 420,321 (3,939) 416,382 ========== ============= ========== ========= ======== ================ =========
Non-controlling Note Share Share Other Accum. interest Total (Euro 000's) capital premium(1) reserves losses Total equity ----------------- At 1 January 2020 13,372 314,319 22,836 (30,669) 319,858 (2,402) 317,456 Profit for the period - - - 6,392 6,392 (426) 5,966 Change in fair value of financial assets through OCI - - (9) - (9) - (9) ---------- ------------- ---------- --------- -------- ----------------- --------- Total comprehensive income - - (9) 6,392 6,383 (426) 5,957 Transactions with owners Recognition of share-based payments 13 - - 321 - 321 - 321 Recognition of depletion factor 13 - - 8,000 (8,000) - - - Recognition of non-distributable reserve 13 - - 2,198 (2,198) - - - Other changes in equity - - - 26 26 - 26 ========== ============= ========== ========= ======== ================= ========= At 30 June 2020 13,372 314,319 33,346 (34,449) 326,588 (2,828) 323,760 ========== ============= ========== ========= ======== ================= ========= Non-controlling Note interest (Euro 000's) Share Share Other Accum. Total Audited capital premium(1) reserves losses Total equity ---------------- At 1 January 2020 13,372 314,319 22,836 (30,669) 319,858 (2,402) 317,456 Profit for the period - - - 31,479 31,479 (1,089) 30,390 Change in fair value of financial assets through OCI - - 44 - 44 - 44 ---------- ------------- ---------- --------- -------- ---------------- --------- Total comprehensive income - - 44 31,479 31,523 (1,089) 30,434 Transactions with owners Issuance of share capital 12 67 1,395 1,462 1,462 Recognition of depletion factor 13 14,155 (14,155) - - - Recognition of share-based payments 13 - - 816 816 - 816 Recognition of non-distributable reserve 13 - - 2,198 (2,198) - - - Other changes in equity - - - 31 31 - 31 ========== ============= ========== ========= ======== ================ ========= At 31 December 2020 13,439 315,714 40,049 (15,512) 353,690 (3,491) 350,199 ========== ============= ========== ========= ======== ================ =========
(1) The share premium reserve is not available for distribution
The notes on pages 17 to 35 are an integral part of these Unaudited Interim Condensed Consolidated Financial
Unaudited Interim Condensed Consolidated Statement of Cash Flows
(All amounts in Euro thousands unless otherwise stated)
For to the period ended 30 June 2021 and 2020
Three Three Six months Six months months ended months ended ended 30 June ended (Euro 000's) Note 30 June 30 June 2021 30 June 2021 2020 2020 Cash flows from operating activities Profit before tax 43,940 4,534 85,287 7,531 Adjustments for: Depreciation of property, plant and equipment 8 5,882 5,911 13,493 11,434 Amortisation of intangibles 9 1,000 1,190 2,333 2,333 Recognition of share-based payments 13 155 160 309 321 Interest income 5 (5) (2) (5) (4) Interest expense 5 171 45 247 53 Unwinding of discounting on mine rehabilitation provision 5 83 92 83 92 Impairment loss on other receivables - - - 45 Other provisions 15 2,617 - 2,617 - Legal provisions 15 (2,807) - (278) 33 Unrealised foreign exchange loss on financing activities (72) 9 11 71 --------- --------- =========== ========= Cash inflows from operating activities before working capital changes 50,964 11,939 104,097 21,909 Changes in working capital: Inventories 10 (6,849) 589 (3,569) 5,761 Trade and other receivables 11 (1,734) (8,890) (10,688) (11,127) Trade and other payables 14 (2,065) 3,926 (11,582) 7,797 Cash flows from operations 40,316 7,564 78,258 24,340 Interest on leases liabilities 5 2 (4) (5) (8) Interest paid 5 (171) (45) (247) (53) Tax paid (5,951) - (7,007) (1,279) --------- --------- Net cash from operating activities 34,196 7,515 70,999 23,000 --------- --------- =========== ========= Cash flows from investing activities Purchase of property, plant and equipment 8 (6,841) (7,748) (17,688) (13,335) Purchase of intangible assets 9 (87) - (170) - Payment of deferred consideration 18 - - (53,000) - Interest received 5 5 2 5 4 --------- --------- =========== ========= Net cash used in investing activities (6,923) (7,746) (70,853) (13,331) --------- --------- =========== ========= Cash flows from financing activities Lease payments 17 (148) (152) (309) (303) Net proceeds/(repayment) from borrowings 16 1,977 (9,263) 54,992 14,934 Proceeds from issuance of shares 12 64 - 158 - Net cash from / (used in) financing activities 1,893 (9,415) 54,841 14,631 --------- --------- Net increase/(decrease) in cash and cash equivalents 29,166 (9,646) 54,987 24,300 Cash and cash equivalents : At beginning of the period 63,588 42,023 37,767 8,077 --------- --------- =========== ========= At end of the period 92,754 32,377 92,754 32,377 --------- --------- =========== =========
The notes on pages 17 to 35 are an integral part of these Unaudited Interim Condensed Consolidated Financial
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
(All amounts in Euro thousands unless otherwise stated)
For the period ended 30 June 2021 and 2020
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 and on the TSX on 20 December 2010 under the symbol AYM. The Company continued to be listed on AIM and the TSX as at 30 June 2021.
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 GBP0.075 for every 30 existing ordinary shares of nominal value Stg GBP0.0025.
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 and the Eastern European region.
The Group currently owns three mining projects: Proyecto Riotinto, Proyecto Touro and Proyecto Masa Valverde. In addition, the Company has an earn-in agreement to acquire three investigation permits at Proyecto Riotinto Este.
Proyecto Riotinto
The Company owns and operates through a wholly owned subsidiary, "Proyecto Riotinto", an open-pit copper mine located in the Pyritic belt, in the Andalusia region of Spain, approximately 65 km northwest of Seville. A brownfield expansion of this mine was completed in 2019.
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 EUR1.4 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. Proyecto Masa Valverde is currently in the permitting process.
Proyecto Riotinto Este
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. Basis of preparation and accounting policies
2.1 Basis of preparation
(a) Overview
The unaudited interim condensed consolidated financial statements for the period ended 30 June 2021 have been prepared in accordance with International Accounting Standards 34: Interim Financial Reporting. IFRS comprise the standard issued by the International Accounting Standard Board ("IASB"), and IFRS Interpretations Committee ("IFRICs") as issued by the IASB. Additionally, the unaudited interim condensed consolidated financial statements have also been prepared in accordance with the IFRS as adopted by the European Union (EU), using the historical cost convention.
These unaudited interim condensed consolidated financial statements are unaudited but reviewed and include the financial statements of the Company and its subsidiary undertakings. They have been prepared using accounting bases and policies consistent with those used in the preparation of the consolidated financial statements of the Company and the Group for the year ended 31 December 2020. These unaudited interim condensed consolidated financial statements do not include all of the disclosures required for annual financial statements, and accordingly, should be read in conjunction with the consolidated financial statements and other information set out in the Group's 31 December 2020 Annual Report. The accounting policies are unchanged from those disclosed in the annual consolidated financial statements for the year ended 31 December 2020. These unaudited interim condensed consolidated financial statements for the period ended 30 June 2021 have been reviewed in accordance with the International Standard on Review Engagements 2410 'Review of Interim Financial Information performed by the Independent Auditor of the Entity' by the Group's external auditors, not audited.
(b) Going concern
These unaudited condensed interim consolidated financial statements have been prepared based on accounting principles applicable to a going concern which assumes that the Group will realise its assets and discharge its liabilities in the normal course of business. Management has carried out an assessment of the going concern assumption and has concluded that the Group will generate sufficient cash and cash equivalents to continue operating for the next twelve months.
2.2 New standards, interpretations and amendments adopted by the Group
The accounting policies adopted in the preparation of the unaudited condensed interim consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2020, except for the adoption of new standards effective as of 1 January 2021. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.
Several amendments and interpretations apply for the first time in 2021, but do not have a material impact on the unaudited condensed interim consolidated financial statements of the Group.
Interest Rate Benchmark Reform - Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR).
The amendments include the following practical expedients:
-- A practical expedient to require contractual changes, or changes to cash flows that are directly required by the reform, to be treated as changes to a floating interest rate, equivalent to a movement in a market rate of interest
-- Permit changes required by IBOR reform to be made to hedge designations and hedge documentation without the hedging relationship being discontinued
-- Provide temporary relief to entities from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component
These amendments had no impact on the unaudited interim condensed consolidated financial statements of the Group. The Group intends to use the practical expedients in future periods if they become applicable.
2.3 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 trading and other financial 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 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).
Financial assets or liabilities (Euro 000's) Level 1 Level 2 Level 3 Total 30 June 2021 Other financial assets Financial assets at FV through OCI 88 - 1,101 1,189 Trade and other receivables Receivables (subject to provisional pricing) - 27,128 - 27,128 Total 88 27,128 1,101 28,317 -------- -------- -------- ------- 31 December 2020 Other financial assets Financial assets at FV through OCI 86 - 1,101 1,187 Trade and other receivables Receivables (subject to provisional pricing) - 24,250 - 24,250 -------- -------- -------- ------- Total 86 24,250 1,101 25,437 -------- -------- -------- -------
2.4 Critical accounting estimates and judgements
The preparation of the unaudited interim condensed consolidated financial statements require 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.
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 a reliable estimate of the amount can be made. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
A full analysis of critical accounting estimates and judgements is set out in Note 3.3 to the 2020 audited financial statements.
3. Business and geographical segments
Business segments
The Group has only one distinct business segment, being that of mining operations, which include mineral exploration and development.
Copper concentrates produced by the Group are sold to three off-takers as per the relevant offtake agreements (Note 21.3)
Geographical segments
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.
(Euro 000's) Cyprus Spain Other Total Three months ended 30 June 2021 Revenue - from external customers 6,784 92,940 - 99,724 ======= ========= ====== ========= Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) 4,056 47,906 7 51,969 Depreciation/amortisation charge - (6,882) - (6,882) Net foreign exchange loss (160) (740) - (900) Finance income - 5 - 5 Finance cost - (252) - (252) ========= Profit before tax 3,896 40,037 7 43,940 ======= ========= ====== ========= Tax (11,649) ========= Profit for the period 32,291 ========= Six months ended 30 June 2021 Revenue - from external customers 21,738 175,366 - 197,104 ======= ========= ====== ========= Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) 16,646 82,775 (9) 99,412 Depreciation/amortisation charge - (15,826) - (15,826) Net foreign exchange gain 395 1,634 2 2,031 Finance income - 5 - 5 Finance cost - (335) - (335) ========= Profit/(loss) before tax 17,041 68,253 (7) 85,287 ======= ========= ====== ========= Tax (19,294) ========= Profit for the period 65,993 ========= Total assets 46,101 529,645 1,144 576,890 ======= ========= ====== ========= Total liabilities (2,969) (157,540) - (160,509) ======= ========= ====== ========= Depreciation of property, plant and equipment - 13,493 - 13,493 ======= ========= ====== ========= Amortisation of intangible assets - 2,333 - 2,333 ======= ========= ====== ========= Total net additions of non-current assets - 25,139 - 25,139 ======= ========= ====== ========= (Euro 000's) Cyprus Spain Other Total Three months ended 30 June 2020 Revenue - from external customers 3,458 53,086 - 56,544 ========= ========== ======= =========== Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) 2,275 10,627 (68) 12,834 Depreciation/amortisation charge - (7,101) - (7,101) Net foreign exchange (loss)/gain (258) (808) 5 (1,061) Finance income - 2 - 2 Finance cost (1) (139) - (140) =========== Profit/(loss) before tax 2,016 2,581 (63) 4,534 ========= ========== ======= =========== Tax (1,499) ----------- Profit for the period 3,035 ----------- Six months ended 30 June 2020 Revenue - from external customers 7,584 110,149 - 117,733 ========= ========== ======= =========== Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) 4,349 17,860 (101) 22,108 Depreciation/amortisation charge - (13,767) - (13,767) Net foreign exchange (loss)/gain (56) (564) 4 (616) Impairment of other receivables (45) - - (45) Finance income - 4 - 4 Finance cost (1) (152) - (153) =========== Profit/(loss) before tax 4,247 3,381 (97) 7,531 ========= ========== ======= =========== Tax (1,565) =========== Profit for the period 5,966 =========== Total assets 32,365 439,142 1,168 472,675 ========= ========== ======= =========== Total liabilities (12,989) (135,890) (36) (148,915)
========= ========== ======= =========== Depreciation of property, plant and equipment - 11,434 - 11,434 ========= ========== ======= =========== Amortisation of intangible assets - 2,333 - 2,333 ========= ========== ======= =========== Total net additions of non-current assets - 19,969 - 19,969 ========= ========== ======= ===========
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.
Six months Six months ended ended 30 June 30 June (Euro 000's) 2021 2020 Segment EUR'000 Segment EUR'000 ------------------------ ------- ------- ------- Offtaker 1 Copper 49,280 Copper 14,248 Offtaker 2 Copper 40,538 Copper 45,681 Offtaker 3 Copper 98,021 Copper 57,804
4. Revenue
Three months ended Three months ended Six months ended Six months ended 30 June 2021 30 June 2020 30 June 2021 30 June 2020 (Euro 000's ) ================== ================== ================ ================ Revenue from contracts with customers (1) 94,488 55,865 187,188 120,026 Fair value gains/(losses) relating to provisional pricing within sales (2) 5,236 679 9,916 (2,293) ================== ================== ================ ================ Total revenue 99,724 56,544 197,104 117,733 ================== ================== ================ ================
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 H1 2021 revenue, there is a transaction price of EUR1.7 million (EUR2.0 million in H1 2020) 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 represents the change in fair value of the embedded derivative arising on sales of concentrate.
5. Net finance cost
Three Three Six months Six months months months ended ended ended ended 30 June 30 June 30 June 30 June 2021 2020 (Euro 000's) 2021 2020 Interest expense: Other interest 83 44 83 53 Interest on lease liabilities (2) 4 5 8 Unwinding of discount on mine rehabilitation provision (Note 15) 171 92 247 92 Interest income (1) (5) (2) (5) (4) --------- --------- ----------- ----------- 247 138 330 149 --------- --------- ----------- -----------
(1) Interest income relates to interest received on bank balances
6. Tax
The Group calculates the period income tax expense using the tax rate that would be applicable to the expected total annual earnings. The major components of income tax expense in the unaudited interim condensed consolidated statement of profit or loss are:
Three Three Six months Six months months months ended ended ended ended 30 June 30 June 30 30 June 2021 2020 (Euro 000's) June 2020 2021 Income taxes Current income tax expense (11,649) (1,499) (19,294) (1,565) Income tax expense recognised in statement of profit and loss (11,649) (1,499) (19,294) (1,565) --------- --------- ----------- -----------
7. Earnings per share
The calculation of the basic and fully diluted loss per share attributable to the ordinary equity holders of the Company is based on the following data:
Three Three Six months Six months months months ended ended ended ended 30 June 30 June 30 June 30 June 2021 2020 (Euro 000's) 2021 2020 Profit attributable to equity holders of the parent 32,583 3,217 66,441 6,392 ---------- ---------- ----------- ----------- Weighted number of ordinary shares for the purposes of basic earnings per share (000's) 139,730 137,339 138,179 138,102 ---------- ---------- ----------- ----------- Basic profit per share (EUR cents/share) 23.3 2.3 48.1 4.6 ---------- ---------- ----------- ----------- Weighted number of ordinary shares for the purposes of fully diluted earnings per share (000's) 142,527 139,858 140,966 140,627 ---------- ---------- ----------- ----------- Fully diluted profit per share (EUR cents/share) 22.9 2.3 47.1 4.5 ---------- ---------- ----------- -----------
At 30 June 2021 there are nil warrants (Note 12) and 3,866,250 options (Note 12) (2020: nil warrants and 3,555,250 options) which have been included when calculating the weighted average number of shares for 2021.
8. Property, plant and equipment
Assets Deferred (Euro 000's) under mining Other Land Right-of-use Plant construction costs assets and buildings assets and machinery (1) (2) (3) Total Cost At 1 January 2020 46,063 6,421 248,221 16,517 34,013 781 352,016 Additions 371 - 439 9,682 3,197 - 13,689 Reclassifications - - 1,924 (1,924) - - - At 30 June 2020 46,434 6,421 250,584 24,275 37,210 781 365,705 Additions (354) 148 1,839 7,181 4,658 20 13,492 Increase in rehab. provision 17,954(4) - - - - - 17,954 Reclassifications - - 15,628 (15,628) - - - At 31 December 2020 64,034 6,569 268,051 15,828 41,868 801 397,151 Additions 477 293 1,511 10,453 5,724 - 18,458 Reclassifications - - 807 (807) - - - At 30 June 2021 64,511 6,862 270,369 25,474 47,592 801 415,609 -------------- ------------- --------------- -------------- ----------- -------- --------- Depreciation At 1 January 2020 8,257 391 28,872 - 6,061 620 44,201 Charge for the period 1,453 255 8,650 - 1,049 27 11,434 At 30 June 2020 9,710 646 37,522 - 7,110 647 55,635 Charge for the period 1,961 310 10,607 - 1,418 36 14,332 Disposals - - 5 - - 5 10 At 31 December 2020 11,671 956 48,134 - 8,528 688 69,977 Charge for the
period 2,219 289 9,680 - 1,292 13 13,493 At 30 June 2021 13,890 1,245 57,814 - 9,820 701 83,470 -------------- ------------- --------------- -------------- ----------- -------- --------- Net book value At 30 June 2021 50,621 5,617 212,555 25,474 37,772 100 332,139 -------------- ------------- --------------- -------------- ----------- -------- --------- At 31 December 2020 52,363 5,613 219,917 15,828 33,340 113 327,174 -------------- ------------- --------------- -------------- ----------- -------- ---------
(1) Assets under construction at 30 June 2021 were EUR25.5 million (2020: EUR24.3 million) which include sustaining capital expenditures and tailings dams project.
(2) Stripping costs
(3) Includes motor vehicles, furniture, fixtures and office equipment which are depreciated over 5-10 years.
(4) Increase in lands related to the rehabilitation provision
The above fixed assets are mainly located in Spain.
9. Intangible assets
(Euro 000's) Licences, Permits R&D and (1) software Total Cost At 1 January 2020 76,538 7,610 84,148 Additions - - - At 30 June 2020 Additions 1,672(2) 1,312 2,984 Disposals - (327) (327) At 31 December 2020 78,210 8,595 86,805 Additions - 170 170 At 30 June 2021 78,210 8,765 86,975 --------- ------------ -------- Amortisation On 1 January 2020 13,808 7,255 21,063 Charge for the period 2,300 33 2,333 At 30 June 2020 16,108 7,288 23,396 Charge for the period 2,575 33 2,608 Impairment charge - 985 985 At 31 December 2020 18,683 8,306 26,989 Charge for the period 2,300 33 2,333 At 30 June 2021 20,983 8,339 29,322 --------- ------------ -------- Net book value At 30 June 2021 57,227 426 57,653 --------- ------------ -------- At 31 December 2020 59,527 289 59,816 --------- ------------ --------
(1) Permits include an amount of EUR5.0 million related to Proyecto Touro mining rights.
(2) Addition resulting from the acquisition of Atalaya Masa Valverde SLU.
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 on an annual basis unless indicators of impairment are not present at the reporting date. In considering the carrying value of the assets at Proyecto Riotinto, including the intangible assets and any impairment thereof, the Group assessed that no indicators were present as at 30 June 2021 and thus no impairment has been recognised.
10. Inventories
(Euro 000's) 30 Jun 31 Dec 2021 2020 Finished products 11,847 8,642 Materials and supplies 14,788 13,764 Work in progress 510 1,170 ------- ------- 27,145 23,576 ------- -------
As of 30 June 2021, copper concentrate produced and not sold amounted to 15,103 tonnes (31 Dec 2020: 12,180 tonnes). Accordingly, the inventory for copper concentrate was EUR11.8 million (31 Dec 2020: EUR8.6 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.
11. Trade and other receivables
(Euro 000's) 30 Jun 31 Dec 2021 2020 Non-current Deposits 545 48 Loans 2,315 2,667 -------- -------- 2,860 2,715 -------- -------- Current Trade receivables at fair value - subject to provisional pricing 23,750 20,304 Trade receivables from shareholders at fair value - subject to provisional pricing (Note 21.3) 3,378 3,946 Other receivables from related parties at amortised cost (Note 21.3) 56 56 Deposits 21 21 VAT receivables 23,110 15,816 Tax advances - 9 Prepayments 4,044 2,507 Other current assets 92 522 -------- -------- 54,451 43,191 Allowance for expected credit losses - - -------- -------- Total trade and other receivables 57,311 45,906 -------- --------
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 values of trade and other receivables approximate to their book values.
Loans are related to an agreement entered by the Group and Lain Technologies Ltd in relation to the construction of the pilot plan to develop the E-LIX System. The Loan is secured with the pilot plant, has a grace period of up to four years and repayment terms depending on future investments on the system. Amounts withdrawn bears interest at 2%.
12. Share capital and share premium
Shares Share Share premium Total 000's Capital StgGBP'000 StgGBP'000 StgGBP'000 Authorised Ordinary shares of Stg GBP0.075 each* 200,000 15,000 - 15,000 ------------------- ------------ ---------------------- ------------ Issued and fully paid 000's Euro 000's Euro Euro 000's 000's Issue Date Price Details (GBP) 31 December 2019/1 January 2020 137,340 13,372 314,319 327,691 Balance at 31 March 2020 137,340 13,372 314,319 327,691 Exercised share 22 Dec 2020 2.015 options (c) 228 19 491 510 Exercised share 22 Dec 2020 1.475 options (c) 41 3 65 68 Exercised share 22 Dec 2020 1.440 options (c) 499 42 758 800 Bonus share to former Key management 22 Dec 2020 2.302 (d) 33 3 81 84 000's Euro 000's Euro 000's Euro 000's ======== =========== =========== ======== 31 December 2020/1 January 2021 138,141 13,439 315,714 329,153 Exercised share 12 Feb 2021 2.015 options(b) 41 4 91 95 Exercised share 18 May 2021 2.015 options(a) 20 1 45 46 Exercised share 18 May 2021 1.475 options(a) 10 1 15 16 30 June 2021 138,212 13,445 315,865 329,310 ======== =========== =========== ==========
Authorised capital
The Company's authorised share capital is 200,000,000 ordinary shares of Stg GBP0.075 each.
Issued capital
(a) On 18 May 2021, the Company was notified that certain employees exercised options over 30,000 ordinary shares of GBP0.075 at a price between GBP1.475 and GBP2.015, thus creating a share premium of EUR61k.
(b) On 12 February 2021, the Company was notified that certain employees exercised options over 40,750 ordinary shares of GBP0.075 at a price of GBP2.015, thus creating a share premium of EUR91k.
(c) On 22 December 2020, the Company was notified that certain employees exercised options over 768,250 ordinary shares of GBP0.075 at a price between GBP1.44 to GBP2.015, thus creating a share premium of EUR1,314k.
(d) On 22 December 2020, the Company granted a bonus share to a former Key management of 33,333 ordinary shares of GBP0.075 at a price GBP2.302.
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.
Details of share options outstanding as at 30 June 2021:
Grant date Expiry date Exercise price GBP Share options =================================== ====================== =================== ============== 23 Feb 2017 22 Feb 2022 1.44 314,000 29 May 2019 28-May-2024 2.015 1,003,750 8 July 2019 7 July 2024 2.045 400,000 30 June 2020 29 June 2030 1.475 998,500 24 June 2021 23 June 2031 3.090 1,150,000 ============== Total 3,866,250 ============== Weighted average exercise price GBP Share options ==================== =================================== At 1 January 2021 1.759 2,787,000 Options executed during the year 2.015 (60,750) Options executed during the year 1.475 (10,000) Granted during the year 3.090 1,150,000 30 June 2021 1.754 3,866,250 ===================================
Warrants
As at 30 June 2021 and 2020 there were no warrants.
13. Other reserves
Fair value (Euro 000's) reserve of financial Depletion assets Non-Distributable Distributable Share Bonus factor at FVOCI reserve reserve option share (1) (2) (3) (4) Total -------------- ------------------- --------------- At 1 January 2020 7,371 208 10,878 (1,144) 3,430 2,093 22,836 Recognition of share- based payments 321 - - - - - 321 Recognition of depletion factor - - 8,000 - - - 8,000 Recognition of non-distributable reserve - - - - 2,198 - 2,198 Change in fair value of financial assets at fair value through OCI - - - (9) - - (9) -------- ------- ------------ -------------- ------------------- --------------- -------- At 30 June 2020 7,692 208 18,878 (1,153) 5,628 2,093 33,346 Recognition of share-based payments 495 - 6,155 - - - 6,650 Change in fair value of financial assets at fair value through OCI - - - 53 - - 53 At 31 December 2020 8,187 208 25,033 (1,100) 5,628 2,093 40,049 Recognition of share-based payments 309 - - - - - 309 Recognition of depletion factor - - (55) - - 6,155 6,100 Recognition of non-distributable reserve - - - - 2,372 - 2,372 Recognition of distributable reserve - - - - - 3,317 3,317 Change in fair value of financial assets at fair value through OCI - - - 2 - - 2 At 30 June 2021 8,496 208 24,978 (1,098) 8,000 11,565 52,149 -------- ------- ------------ -------------- ------------------- --------------- --------
(1) Depletion factor reserve
At 30 June 2021, the Group has disposed EUR6.1 million (H1 2020: EUR8.0 million) as a depletion factor reserve as per the Spanish Corporate Tax Act.
(2) Fair value reserve of financial assets at FVOCI
The Group has elected to recognise changes in the fair value of certain investments in equity securities in OCI, as explained in (1) above. These changes are accumulated within the FVOCI reserve within equity. The Group transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.
(3) Non-distributable reserve
To comply with Spanish Law, the Group needed to record a reserve of profits generated equal to a 10% of profit/(loss) for the year until 20% of share capital is reached.
(4) Distributable reserve
The Group reclassified at least 10% of the profit of 2020 to distributable reserves.
14. Trade and other payables
(Euro 000's) 30 Jun 2021 31 Dec 2020 Non-current Government grant 28 13 Other non-current payables 1,435 1,435 ------------ ------------ 1,463 1,448 ------------ ------------ Current Trade payables 52,490 63,946 Accruals 4,288 4,355 VAT payables - 60 Other 76 76 56,854 68,437 ------------ ------------
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. Trade payables are non-interest-bearing and are normally settled on 60-day terms.
15. Provisions
Rehabilitation costs (Euro 000's) Other tax costs Legal costs Total costs ------------------ 1 January 2020 - 388 6,553 6,941 Additions - 33 354 387 Finance cost - - 92 92 ------------------ At 30 June 2020 - 421 6,999 7,420 Additions - 278 - 278 (Reduction) / addition of provision - (73) 17,495 17,422 Finance cost - - 144 144 ------------------ -------------- --------------------- -------------- At 31 December 2020 - 626 24,638 25,264 Additions 2,617 - 477 3,094 Reduction of provision - (278) - (278) Finance cost - - 83 83 ------------------ At 30 June 2021 2,617 348 25,198 28,163 ------------------ -------------- --------------------- -------------- (Euro 000's) 30 Jun 2021 31 Dec 2020 Non-current 28,163 25,264 Total 28,163 25,264
------------ -------
Rehabilitation provision
Rehabilitation provision represents the accrued cost required to provide 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.
The discount rate used in the calculation of the net present value of the provision as at 30 June 2021 was 1.36%, which is the average 15-year Spain Government Bond rate from 2016-2020 (31 December 2020: 1.36%, which is the 15-year Spain Government Bond rate). An inflation rate of 1% is applied on annual basis.
Other tax provision
Other tax costs include taxes on (i) construction, installation and works provision and (ii) other local taxes provision amounting to EUR2.4 million and EUR0.2 million, respectively.
Legal provision
The Group has been named a defendant in several legal actions in Spain, the outcome of which is not determinable as at 30 June 2021.
16. Borrowings (Euro 000's) 30 June 31 Dec 2021 2020 Non-current borrowings Credit facilities 42,242 - -------- ------- 42,242 - -------- ------- Current borrowings Credit facilities 12,735 - 12,735 - -------- -------
The Group had uncommitted credit risks totalling EUR121.5 million. During Q1 2021, Atalaya drawdown some of its existing credit facilities to pay the Deferred Consideration (Note 18). Interest rates of existing credit facilities, including facilities used to pay the Deferred Consideration, range from 1.60% to 2.45% and the average interest rate on all facilities used and unused is 1.79%. The maximum term of the facilities is three years. In addition, as at 30 June 2021, the Company had used EUR2.0 million in existing credit facilities.
All borrowings are unsecured.
17. Lease liabilities
(Euro 000's) 30 Jun 2021 31 Dec 2020 Non-current Lease liabilities 4,997 4,796 4,997 4,796 ------------ ------------ Current Lease liabilities 602 592 602 592 ------------ ------------
Lease liabilities
The Group entered into lease arrangements for the renting of land, laboratory equipment and vehicles which are subject to the adoption of all requirements of IFRS 16 Leases. 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. Depreciation expense regarding leases amounts to EUR0.3 million (2020: EUR0.2 million) for the six month period ended 30 June 2021. The duration of the land lease is for a period of thirteen years, payments are due at the beginning of the month escalating annually on average by 1.5%. At 30 June 2021, the remaining term of this lease is eleven years and a half.
The duration of the motor vehicle and laboratory equipment lease is for a period of four years, payments are due at the beginning of the month escalating annually on average by 1.5%. At 30 June 2021, the remaining term of this motor vehicle and laboratory equipment lease is one year and a half, and two years, respectively.
Since the Company acquired 100% of the shares of Cambridge Mineria Espana, S.L. (renamed to Atalaya Masa Valverde, S.L.U.) in October 2020, a lease arrangement for a warehouse rent was included. The duration of the warehouse lease is for a period of thirteen years, payments are due at the beginning of the month escalating based on the yearly Spanish consumer price index. At 30 June 2021, the remaining term of this lease is eleven years and a half.
(Euro 000's) 30 Jun 2021 31 Dec 2020 Minimum lease payments due: * Within one year 602 592 * Two to five years 1,827 2,068 * Over five years 3,170 2,728 Present value of minimum lease payments due 5,599 5,388 ------------ ------------ (Euro 000's) Lease liabilities Balance 1 January 2021 5,388 Additions 515 Interest expense 5 Lease payments (309) Balance at 30 June 2021 5,599 ------------------ Balance at 30 June 2021 * Non-current liabilities 4,997 * Current liabilities 602 ------------------ 5,599 ------------------
18. Deferred consideration
In September 2008, the Group moved to 100% ownership of Atalaya Riotinto Mineral S.L. ("ARM") (and thus full ownership of Proyecto Riotinto) by acquiring the remaining 49% of the issued capital of ARM. At the time of the acquisition, the Group signed a Master Agreement (the "Master Agreement") with Astor Management AG ("Astor") which included a deferred consideration of EUR43.9 million (the "Deferred Consideration") payable as consideration in respect of the acquisition among other items. The Company also entered into a credit assignment agreement at the same time with a related company of Astor, Shorthorn AG, pursuant to which the benefit of outstanding loans was assigned to the Company in consideration for the payment of EUR9.1 million to Shorthorn (the "Loan Assignment").
The Master Agreement has been the subject of litigation in the High Court and the Court of Appeal that has now concluded. As a consequence, ARM must apply any excess cash (after payment of operating expenses, sustaining capital expenditure, any senior debt service requirements and up to US$10 million per annum (for non-Proyecto Riotinto related expenses)) to pay the consideration due to Astor (including the Deferred Consideration and the amount of EUR9.1 million payable under the Loan Assignment). "Excess cash" is not defined in the Master Agreement leaving ambiguity as to how it is to be calculated.
On 2 March 2020, the Company filed an application in the High Court to seek clarity on the definition of "Excess Cash". The Company and Astor have now exchanged statements of case to set out their formal position. The trial is listed to be heard from 21 February 2022 (the "Trial"). Following the filing of the statements of case for the Trial, Astor applied to Court seeking an early determination (without the need for a full trial) of the dispute in relation to the "Excess Cash" (the "Summary Judgment application"). The Summary Judgment application was heard on 14-15 June 2021. The Court dismissed Astor's application and the question as to whether any residual interest is payable to Astor therefore remains to be resolved at Trial.
As previously announced, during December 2020 the Board had discussions and considered an early payment of the Deferred Consideration and the Loan Assignment provided certain conditions could be met. Conditions included among others the execution of credit facilities agreements to fund the payment.
In March 2021, the Company fulfilled all conditions required by the Board of Directors and made the early payment of EUR53 million to Astor. The payment was fully funded by unsecured credit facilities entered into between December 2020 and February 2021 at interest rates ranging from 1.60% to 2.45% and repayable by 2023 and 2024.
The payment of the Deferred Consideration does not end the ongoing litigation as the issue as to whether any residual interest may or may not be payable remains unresolved. Consequently, on 15 July 2021, the Company transferred EUR15.4 million to a trust account (the "Trust Account") representing the full amount of interest claimed by Astor to 30 June 2022. The holder of the Trust Account has provided an undertaking to hold the full amount until settlement of the claim to interest or judgment following the Trial. The Company understands the monies held in the Trust Account safeguard the maximum outstanding liability to Astor in relation to the Master Agreement. On that basis, and because the Consideration has been paid in full in accordance with the Master Agreement, Atalaya treats itself as free of the obligations set out in the Master Agreement.
The Company is currently working on other court directions in preparation for the Trial and continues to be confident in its case and is of the view that no interest will be payable to Astor.
19. Acquisition, incorporation and disposal of subsidiaries
There were neither acquisition nor incorporation of subsidiaries during the six month period to 30 June 2021.
20. Winding-up of subsidiaries
There were no subsidiaries wound-up during the six month period to 30 June 2021.
21. Related party transactions
The following transactions were carried out with related parties:
21.1 Compensation of key management personnel
The total remuneration and fees of Directors (including Executive Directors) and other key management personnel was as follows:
Three Three Six months Six months months months ended ended (Euro 000's) ended ended 30 June 30 June 30 June 30 June 2021 2020 2021 2020 Directors' remuneration and fees 240 247 505 512 Directors' bonus (1) 438 - 438 - Share option-based benefits and other benefits to directors 55 56 111 112 Key management personnel fees 136 125 260 249 Key management bonus (1) 265 - 265 - Share option-based and other benefits to key management personnel 51 79 130 158 -------- -------- ---------- ---------- 1,185 507 1,709 1,031 -------- -------- ---------- ----------
(1) These amounts related to the performance bonus for 2020 approved by the Board of Directors of the Company during H1 2021. Director's bonus relates to the amount approved for the CEO as an executive director and key management bonus relates to the amount approved for other key management personnel which are not directors of Atalaya Mining plc. Bonuses for 2019 were approved and paid in H2 2020, and hence no amounts are disclosed for the comparative H1 2020 period.
21.2 Share-based benefits
On 25 June 2021, the Company announced that in accordance with the Company's Long Term Inventive Plan 2020 which was approved by shareholders at the Annual General Meeting on 25 June 2020, it has granted 1,150,000 share options to Persons Discharging Managerial Responsibilities and other management.
21.3 Transactions with related parties/shareholders
i) Transaction with shareholders
Three months Three Six months Six months ended months ended ended 30 June ended 30 June 30 June (Euro 000's ) 2021 30 June 2021 2020 2020 ============= ======== =========== ========== Trafigura- Revenue from contracts 29,055 4,555 50,930 12,948 29,055 4,555 50,930 12,948 (Losses)/gain relating provisional pricing within sales (1,380) 1,704 (1,650) 1,299 ------------- -------- ----------- ---------- Trafigura - Total revenue from contracts 27,675 6,259 49,280 14,247 ============= ======== =========== ==========
ii) Period-end balances with related parties
(Euro 000's) 30 Jun 2021 31 Dec 2020 Receivables from related parties: Recursos Cuenca Minera S.L. 56 56 Total (Note11) 56 56 ------------- -------------
The above balances bear no interest and are repayable on demand.
iii) Period-end balances with shareholders
(Euro 000's ) 30 Jun 2021 31 Dec 2020 Trafigura - Debtor balance- subject to provisional pricing 3,378 3,946 Total (Note 11) 3,378 3,946 -------------- --------------
The above debtor balance arising from sales of goods and other balances bear no interest and is repayable on demand.
22. 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.
23. Commitments
There are no minimum exploration requirements at Proyecto Riotinto. However, the Group is obliged to pay local land taxes which currently are approximately EUR235,000 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 EUR2.0 million. Costs are then borne by the joint venture partners in accordance with their respective ownership interests.
24. Significant events
The "Dirección Xeral de Calidade Ambiental e Cambio Climático", (the General Directorate for the Environment and Climate Change of Galicia), announced on 28 January 2020 that a negative Environmental Impact Statement for Proyecto Touro (Declaración de Impacto Ambiental) had been signed.
The short release stated that the decision was based on two reports which form part of a wider evaluation consisting of fifteen reports produced by different departments of the Xunta de Galicia. These two reports challenge the ability of the Company to guarantee that there will be no environmental impact of the Project on the Ulla River and related protected ecosystems which are located downstream.
On 1 March 2021, Atalaya received the formal communication from Xunta de Galicia of the negative Environmental Impact Declaration on Proyecto Touro.
On 10 February 2021, the Company announced that its Board of Directors had appointed Mr. Neil Gregson as an independent Non-Executive Director of the Company.
On 12 February 2021, the Company was notified that certain employees exercised options over 40,750 ordinary shares of GBP0.075.
On 15 March 2021, Atalaya announced that it has made the payment of the EUR53 million (the "Deferred Consideration") to Astor Management following the approval of its Board of Directors. This amount arises from arrangements entered with Astor in 2008 in relation to Proyecto Riotinto. The payment was financed with unsecured credit lines by four major Spanish banks having a three-year tenure and an average annual interest rate of approximately two per cent.
On 25 March 2021, the Company announced that Dr. José Nicolas Sierra who retired as an Independent Non-Executive Director and the Chair of the Physical Risk Committee of Atalaya, with an effective date of 31 March 2021.
On 12 April 2021, the Company announced that Mr. Damon Barber stepped down as a Non-Executive Director of the Company with immediate effect.
On 17 May 2021, the Company was notified that Harry Liu, Director of the Company, sold 5,000 ordinary shares in Atalaya at an average price of 356.0 pence per share.
On 18 May 2021, the Company was notified that Harry Liu, Director of the Company, sold 3,698 ordinary shares in Atalaya at an average price of 358.0 pence per share.
On 26 May 2021, Liberty Metals & Mining Holdings, LLC, shareholder of the Company, reduced its % of voting rights from 14.17% to 12.97%.
On 25 June 2021, the Company announced that in accordance with the Company's Long Term Inventive Plan 2020 which was approved by shareholders at the Annual General Meeting on 25 June 2020, it has granted 1,150,000 share options to Persons Discharging Managerial Responsibilities and other management.
The Options expire ten years from the deemed date of grant (24 June 2021), have an exercise price of 309.0 pence per ordinary share, based on the average of the mid-market closing prices for the five dealing days immediately preceding the grant date, and vest in two equal tranches, half on grant and half on the first anniversary of the granting date.
On 29 June 2021, the Company was notified that Harry Liu, Director of the Company, sold 5,000 ordinary shares in Atalaya at an average price of 310.0 pence per share.
25. Events after the Reporting Period
On 1 July 2021 the Company announced that it was notified that Harry Liu, Director of the Company, sold 192 ordinary shares in Atalaya at an average price of 308.0 pence per share.
On 5 July 2021, the Company announced that it was notified, that Alberto Lavandeira, Chief Executive Officer and Managing Director of the Company, purchased 40,000 ordinary shares at an average price of 310.0 pence per share. The Company was also notified on 3 July 2021, that Harry Liu, Director of the Company, sold, on 1 July 2021, 170 ordinary shares in Atalaya at an average price of 309.0 pence per share.
Following the above transactions Mr Lavandeira and Mr. Liu are interested in an aggregate of 280,000 and 386,019 ordinary shares of the Company representing 0.20% and 0.28% of the current issued share capital, respectively.
On 4 August 2021, Liberty Metals & Mining Holdings, LLC, shareholder of the Company, reduced its % of voting rights from 11.79% to 10.94%.
On 15 July 2021, the Company transferred EUR15.4 million to a trust account (the "Trust Account") representing the full amount of interest claimed by Astor to 30 June 2022. The holder of the Trust Account has provided an undertaking to hold the full amount until settlement of the claim to interest or judgment following the trial in February 2022. The Company understands the monies held in the Trust Account safeguard the maximum outstanding liability to Astor in relation to the Master Agreement. On that basis, and because the Consideration has been paid in full in accordance with the Master Agreement, Atalaya treats itself as free of the obligations set out in the Master Agreements (refer to Note 18). The Company is currently working on other court directions in preparation for the Trial and continues to be confident in its case and is of the view that no residual intertest should be payable to Astor.
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IR URRKRANUWAAR
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August 11, 2021 02:00 ET (06:00 GMT)
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