Atalaya Mining Copper SA

Atalaya Mining Copper SA is a junior copper producer headquartered in London, United Kingdom, operating primarily in Europe. The company's portfolio consists of 4 projects, comprising 1 operating mine, 2 development, and 1 advanced exploration project. Key assets include Riotinto and Masa Valverde. The business model centers on operating a large-scale mining complex featuring an open-pit mine and a modern, high-capacity processing plant. This plant is positioned to serve as a central hub for material sourced from wholly-owned regional projects, creating operational synergies. A key technological differentiator is the ongoing development and commissioning of an innovative electrochemical extraction process designed for complex polymetallic ores. This proprietary technology aims to produce high-purity metals directly on-site, which is expected to enhance metal recoveries, reduce logistical costs, and lower the overall carbon footprint. The operational approach emphasizes maximizing throughput, having achieved a new annual processing record. The company's competitive strategy involves leveraging this technological advantage and maintaining rigorous control over absolute costs to position itself as a leader in sustainable and efficient mineral processing. Diversification of production sources is a core strategic objective to enhance operational resilience and maximize asset optionality.

The organization's strategy is built on 5 core objectives: increasing production output, diversifying supply sources, extending operational life, achieving structural cost reductions, and maximizing asset optionality. Growth is pursued through a multi-faceted approach that includes phased earn-in agreements for brownfield projects and disciplined investment in early-stage exploration across various mineral belts. A key component of the long-term strategy involves new earn-in agreements to increase exposure to critical minerals. Operational priorities emphasize enhancing plant feed with higher-grade material and securing cost stability through long-term power purchase agreements and the development of a 50 MW solar facility. The capital allocation framework balances shareholder returns, evidenced by a consistent dividend policy, with significant non-sustaining capital investments. These investments are directed towards waste stripping, dewatering, access ramp construction, a proprietary processing plant, and tailings facility expansion, all aimed at supporting long-term growth. A dedicated exploration budget supports resource expansion and upgrading at existing sites and drill testing new targets.

Executive leadership, under CEO Alberto Lavandeira, guided the company through a significant corporate transition in 2024. The governance framework was substantially enhanced through a move to the Main Market and a re-domiciliation, which facilitated inclusion in the FTSE All-Share and FTSE SmallCap indices effective March 2025. This strategic initiative was designed to expand the investor base and increase visibility to institutional investors. The Board of Directors underwent significant succession planning during 2024 and early 2025. Key changes included the appointment of Neil Gregson as the new Chair, Kate Harcourt as Senior Independent Director, and the addition of Carole Whittall and Coriseo González-Izquierdo as Independent Non-Executive Directors. These appointments led to a restructuring of the Board's committees. It is also intended that Coriseo González-Izquierdo will assume the role of Chair of the Remuneration Committee no later than the 2025 Annual General Meeting, ensuring a smooth leadership transition and alignment with governance best practices.

The organization demonstrated improving sustainability performance in 2024, achieving a notable reduction in its lost time injury frequency rate from 3.94 to 3.33. Environmental stewardship efforts resulted in lower operational water and electricity consumption rates per tonne processed. A key initiative in decarbonization was the connection of a 50 MW solar plant to the grid, which is projected to supply approximately 22% of a core operation's electricity needs. This facility, combined with a 10-year power purchase agreement, will secure over 50% of the company's current electricity requirements at favorable rates, contributing to a reduced carbon footprint and cost stability. Community engagement includes active restoration of local river water quality through a dedicated water treatment plant. The commitment to local economic development is evidenced by an increase in procurement from national suppliers, rising from 89% to 93%. The company continues to advance its sustainability agenda, with further details to be provided in its forthcoming 2024 Sustainability Report.

The corporate structure underwent significant changes, including a re-domiciliation completed in January 2025 and a move to the London Stock Exchange's Main Market in April 2024 to enhance investor access. The group operates through several key subsidiaries, including Atalaya Riotinto Minera, S.L.U., which manages core production activities. Strategic growth is pursued via earn-in agreements and acquisitions. A phased earn-in agreement is in place to acquire up to 80% of Cobre San Rafael S.L., the entity holding a key development project. In 2020, the company acquired 100% of Cambridge Mineria España, S.L. (renamed Atalaya Masa Valverde, S.L.U.). In 2021, it acquired an initial 51% interest in Rio Narcea Nickel, S.L. (renamed Atalaya Ossa Morena, S.L.U.), which was increased to 99.9% in 2022. In November 2024, the company entered into two agreements with Mineral Prospektering i Sverige AB to earn an initial 75% interest in two exploration land packages. A long-standing 50/50 joint venture with Rumbo, established in 2012, focuses on evaluating resources in historical tailings and waste areas. Major shareholders include Trafigura Pte Ltd, with whom the company has offtake agreements, and Cobas Asset Management SGIIC, S.A., which increased its voting rights to 15.04% in July 2024.