Q2 2026 Atalaya Mining Copper SA Earnings Call

August 11, 2026

Speaker #1: Good day, ladies and gentlemen, and welcome to Atalaya Mining's Q2 and H1 2026 results. At this time, all participants are in a listen-only mode. Later, we will conduct a Q&A session through the phone lines, and instructions will follow at that time.

Operator: Good day, ladies and gentlemen, and welcome to Atalaya Mining Q2 and H1 2026 results. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session through the phone lines, and instructions will follow at that time. I would like to remind all participants that this call is being recorded. I will now hand over to the CEO of Atalaya Mining, Alberto Lavandeira, to open the presentation. Please go ahead.

Speaker #1: I would like to remind all participants that this call is being recorded. I will now hand over to the CEO of Atalaya Mining, Alberto Adan, to open the presentation.

Speaker #1: Please go ahead.

Alberto Lavandeira: Good morning, ladies and gentlemen. Thanks, everybody, for being here. Today, we announce the results, the Q2 and H1 results for 2026, including the financial results. I am going to go through the highlights of this announcement. Let me first start with a review of the results during this quarter. We had a good production quarter. We had announced that already. We produced 13.5 thousand tons of copper with all-in sustaining costs of $2.79, which means we are maintaining our guidance both for cost and production. It was a good quarter. We generated a record quarterly EBITDA of EUR 78 million, a record H1 of EUR 126 million, record free cash flow EUR 58 million, so that is over EUR 60 million. Of course, we benefited from high copper prices, good silver credits, low treatment charges. It was very good.

Speaker #2: Good morning, ladies and gentlemen. Thanks, everybody, for being here. Today, we announce the Q2 and first half results for 2026, including the financial results.

Speaker #2: And I'm going to go through the highlights of this announcement. Let me first start with a review of the results during this quarter. We had a good reduction quarter.

Speaker #2: We had announced that already. We produced 13,500 tons of copper, with all-in sustaining costs of $2.79. Which means we are maintaining our guidance for both cost and production.

Speaker #2: it was a good quarter. We generated a record quarterly EBITDA of 78 billion euros, a record half of the year of 126 million euros, a record free cash flow of 58 million euros, so that's over 60 million.

Speaker #2: And of course, we benefited from high copper prices, good silver credits, low treatment charges, and it was very good. And even with the higher mining costs and processing costs, due to inflation and higher diesel prices, we had excellent cash generation.

Alberto Lavandeira: Even with some higher mining cost and processing cost due to inflation and to higher diesel prices, we had an excellent cash generation. This extraordinary cash generation meant that our balance sheet at the end of the quarter was excellent, and we ended up with a net cash position of 318, almost EUR 319 million, which is also, again, a new record. As a result of that, our board declared dividend, an interim dividend of 5.5 euro cents per share, which is also much higher than previous interim dividend. I will go through some of the key points in the presentation. In slide 7, you will see a graph that we typically show with evolution of production. The plant continued to perform very well. The Q2 was strong. It was a very big improvement versus Q1.

Speaker #2: This extraordinary cash generation meant that our balance sheet at the end of the quarter was excellent. We ended up with a net cash position of €318 million, almost €319 million.

Speaker #2: Euros, which is also again a new record. As a result of that, our board declared an interim dividend of 5.5 euro cents per share, which is also much higher than the previous interim dividend.

Speaker #2: And I will go through some of the key points in the next—in the presentation, okay? In slide 7, you will see a graph that we typically show with the evolution of production.

Speaker #2: The plant continued to perform very well. Q2 was strong; it was a very big improvement versus the first quarter. As you remember, during late January and almost all of February, we had extraordinarily high rainfall in southern Spain, and that impacted our production.

Alberto Lavandeira: As you remember, during late January and almost all February, we had extraordinary high rainfall in the south of Spain, and that impacted our production. But during Q2, things were normal. We recovered out of the lost production. We had a very strong performance. Rates went almost to 0.4% copper, and we increased the recovery to 84%, so we produced 13,500 tons of copper, which is quite good. You can see in the graph at the bottom side, a large increase versus previous quarter. As a result of that, the financial results were quite good. EBITDA was EUR 78 million, which is again new quarter. Of course, the revenues you can see were a record high, were a result of higher copper prices, higher silver credits, and lower offsite costs.

Speaker #2: But during the second quarter, things were normal. We recovered out of the lost production, we had a very strong performance, rates went almost to 0.4% copper, and we increased the recovery to 84%.

Speaker #2: So we produced 13,500 tons of copper, which is quite good, and you can see in the graph, at the bottom side, a big increase—a large increase versus the previous quarter.

Speaker #2: As a result of that, the financial results were quite good. Our EBITDA was €78 million, which is again a new quarterly high. And, of course, the revenues, as you can see, were record high.

Speaker #2: We were a result of higher copper prices, higher silver credits, and lower offsite costs. We made some investments—around $20 million during the quarter—including millions in initial and capitalized stripping after Alvarado.

Alberto Lavandeira: We made some investments of around EUR 20 million during the quarter, mainly in Cerro Colorado and capitalized stripping at Cerro Colorado. With everything, the operating cash flow was almost EUR 80 million. We generated EUR 58 million of free cash flow, which is again a new quarterly record. That means that our balance sheet improved a lot. It strengthened even further, and we increased our cash position to almost EUR 320 million. Of course, we had a nice increase in the capital placement that we had in late January. Even so, after that period, we continued to strengthen our balance sheet and increase our cash position in this quarter. Going a little bit further in the financial results. Let me, because I have here some interference. During the whole H1 of the year, we had an EBITDA of EUR 126 million, which is again, a new record.

Speaker #2: And with everything, the operating cash flow was almost €80 million, and we generated €58 million of free cash flow, which is again a new quarterly record.

Speaker #2: And that means that our balance sheet improved a lot, strengthened even further, and we increased our cash position to almost €320 million.

Speaker #2: Of course, we had a nice increase in the capital placement that we had in late January, but even so, after that period we continued to strengthen our balance sheet and increase our cash position in this quarter.

Speaker #2: Going a little bit further in the financial results, excuse me, because I have I have here some interference. During the whole year we had a during the whole first half of the year we had an EBITDA of 126 million.

Speaker #2: Euros, which is again a new a new record. Looking at the breakdown of our cash costs and all in sustaining costs, as you know we always give a full detail of this, our cash costs were around 240 dollars per pound in Q2, and in the first half of '26.

Alberto Lavandeira: Looking at the breakdown of our cash costs and all-in sustaining costs, as you know, we always give a full detail of this. Our cash costs were around $2.40 per pound in Q2 and in the H1 of 2026, and they were solid and well below the guidance that we had expected for the full 2026. All-in sustaining costs were around $2.80 per pound in Q2 and around, just under $3.00 in the whole 2026. If you look at the details, you will see that mining and processing were higher than the previous quarters. This is mainly due to the impact of diesel in the mining side and also explosives that are affected with the gas prices, which have been affected by the wars in the Middle East. Also, we have some not favorable exchange rate during the quarter. The euro and the US dollar.

Speaker #2: And they were solid and well beyond below the guidance that we had expected for the full 2026. All in sustaining costs were around 280 dollars per pound in second quarter, and around 2 yes, under 3 dollars in the whole '26.

Speaker #2: If you look at the details, you will see that mining and processing were higher than the previous quarters, and this is mainly due to the impact of diesel on the mining side, and also explosives, which are affected by gas prices, which have been affected by the wars in the Middle East.

Speaker #2: Also, we had some unfavorable exchange rates during the quarter. The euro and the US dollar—euro strengthened a little bit during the quarter.

Alberto Lavandeira: Euro strengthened a little bit during the quarter. Of course, even having this kind of bad news at the operational level, at a site level, most of this increase in the costs were offset by higher silver credits and low treatment charges, as you can see in the lines of the offsite costs. We are right now enjoying low treatment charges from the benchmark. We are also selling some parcels and lots with negative treatment charges, which means that at the end, we have been able to have quite low rate treatment charges and all other offsite costs. Going forward beyond 2027, all our legacy offtake agreements will be disappearing, will have expired. If the market conditions stay like that, we think we are going to be in a very good position to enjoy very low treatment charges.

Speaker #2: But of course, even having this kind of bad news at the operational level, at a site level, most of this increase in the costs was offset by higher silver credits and low treatment charges, as you can see in the lines of the offsite costs.

Speaker #2: We are we are right now enjoying a low treatment charges from the benchmark, but also we are also selling some parcels, some lots, with negative treatment charges, which means that at the end we had been able to to have quite low freight treatment charges in all other offsite costs.

Speaker #2: Going forward, beyond '27, all our legacy offtake agreements will be disappearing—they will have expired—and if the market conditions stay like that, we think we are going to be in a very good position to enjoy very low treatment charges.

Speaker #2: As you all know, the evolution of treatment charges has gone from being positive, in the range of $50 to $80, to being negative, even at spot sales of minus $200.

Alberto Lavandeira: As you all know, the evolution of treatment charges has gone from being positive, in the range of the 50 to 80, to being negative, even at spot sales of -200. With most of our offtake agreements expiring this year and all of them next year, we are fully exposed to these good conditions for the miners that we believe are going to persist for a while due to the lack of new projects and due to the excess smelting capacity. Of course, also the smelters are enjoying the high sulfuric acid prices, high gold prices and silver, which means that they are not losing money, so there is no specific danger for the smelters to close even with these low and negative treatment charges. When we benchmark ourselves with others, we always like to compare with other pure copper players.

Speaker #2: With all most of our of take agreements expiring this year and all of them next year, we are fully exposed to this good conditions to the for the miners, that we believe are going to persist for a while due to the lack of new projects and due to the excess smelting capacity.

Speaker #2: Of course, also the smelters are enjoying the high sulfuric acid prices, high gold prices, and silver, which means that they are not losing money. So, there's no specific danger for the smelters to close even with these low and negative treatment charges.

Speaker #2: When we benchmark ourselves against others, we always like to compare with other pure copper players. We continue to maintain our all-in sustaining costs quite under control.

Alberto Lavandeira: We continue to maintain our all-in sustaining costs quite under control. We continue to be very well positioned compared to the rest. Our all-in sustaining costs have been trending downwards, even with this inflation that we have been seeing that is general all over the world. With this, how do we see the rest of the year? We have preferred to maintain our prior guidance. We believe we are going to be in the low end of production. Although we will be recovering some of the lost production of the first quarter, we think we are going to be in the low end, even with the good production result of Q2. From the cash cost point of view, we had pressures on diesel and explosives, but we do not think they are going to be worse than this quarter.

Speaker #2: We continue to be very well positioned compared to the rest, and our all-in sustaining costs have been trending downwards, even with the inflation that we have been seeing.

Speaker #2: That's generally the case all over the world. With this in mind, how do we see the rest of the year? We prefer to maintain our prior guidance.

Speaker #2: We believe we are going to be at the low end of production, although we will be recovering some of the lost production from the first quarter. But we think we are going to be at the low end, even with the good production results of the second quarter.

Speaker #2: From a cash cost point of view, we had pressures on diesel and explosives, but we don't think they are going to be worse than this quarter.

Speaker #2: If anything, it looks like diesel is relaxing a little bit, at least from the oil point of view—the oil price point of view. So we prefer to maintain also our guidance.

Alberto Lavandeira: If anything, it looks like diesel is relaxing a little bit, at least from the oil point of view, oil price point of view. We prefer to maintain also our guidance. We have made some small amendments to our operating metrics. We believe that the mill is going to be performing very well, has been doing very well. Actually, we had a record May where the mill stopped only 3 hours in the whole month. It was fantastic. We do have a maintenance program in Q3. Still, we think we are going to be mining, processing in the high end of 16 million tons or more than that at the mill. The grades maybe are going to be slightly lower than were predicted, really just slightly shy of that, but the recovery is going to be slightly better, so one will compensate the other.

Speaker #2: We have made some small amendments to our operating metrics. We believe that the mill is going to perform very well, and it has been doing very well.

Speaker #2: We have some, actually. We had a record May, where the mill stopped only 3 hours in the whole month—it was fantastic. But we do have a maintenance program in the third quarter. Still, we think we are going to be mining and processing at the high end of 16 million tons, or more than that, at the mill.

Speaker #2: The grades maybe are going to be slightly lower than we predicted, really just slightly shy of that, but the recovery is going to be slightly better.

Speaker #2: So, one will compensate the other, so at the end we are maintaining our guidance. The capex — the capex, we have lowered the capex a little bit, around €20 million, €20 million less, and the reason is the delays in starting some of our growth projects, which I will talk about a little bit later.

Alberto Lavandeira: At the end, we are maintaining our guidance. The CapEx, we have lowered the CapEx a little bit, around EUR 20 million less. The reason is the delays in starting some of the projects, our growth projects, which I will talk a little bit later. This is the stripping of San Ignacio was slightly delayed, the movement of the road and the start of the ramp. Basically, it does not mean we are saving CapEx. We are simply pushing that to later in the year and beyond into 2027. Looking at dividends, as I said before, the policy of Atalaya Mining is to give back between 35% and 50% of the free cash flow.

Speaker #2: This is the prescription of Sundanese. It was slightly delayed: the movement of the road, and the start of the ramp. So basically, it doesn't mean we are saving capex; we are simply pushing that to later in the year and beyond, into 2027.

Speaker #2: Looking at dividends, as I said before, the policy of Atalaya is to give back between 35% and 50% of the free cash flow.

Alberto Lavandeira: We believe that we have to keep our dividend even if we know that we are going to have ahead of us a good set of investments, of growth initiatives, especially in Masa Valverde and also at Proyecto Riotinto. But the board decided, due to the good financial position, to increase the interim dividend by around 25% versus the previous year. This is EUR 0.055 per share. This dividend is expected to be paid in September, and as I said, it is an interim dividend, and we hope that we can continue increasing that in the final dividend. This company is operating well, but now where is our growth? What is the situation of our growth projects? For the rest of the year, we will continue developing this. In the slide in the corner, you see San Ignacio. We continue doing the pushbacks, and we are advancing well.

Alberto Lavandeira: We believe that we have to keep our dividend even if we know that we are going to have ahead of us a good set of investments, of growth initiatives, especially in Touro and also at Proyecto Riotinto. But the board decided, due to the good financial position, to increase the interim dividend by around 25% versus the previous year. This is EUR 0.055 per share. This dividend is expected to be paid in September, and as I said, it is an interim dividend, and we hope that we can continue increasing that in the final dividend. This company is operating well, but now where is our growth? What is the situation of our growth projects? For the rest of the year, we will continue developing this. In the slide in the corner, you see San Ignacio. We continue doing the pushbacks, and we are advancing well.

Speaker #2: We believe that we have to keep a dividend, even if we know that we are going to have ahead of us a good set of investments of growth or initiatives, especially in total and also related to—but the Board decided, due to the good financial position, to increase the interim dividend by around 25 percent versus the previous year.

Speaker #2: And this is a 5.5 euro cents per share dividend. This dividend is expected to be paid in September, and as I said, it's an interim dividend, and we hope that we can continue increasing that in the final dividend.

Speaker #2: Now, this company is operating well, but what about our growth? What's the status of our growth projects? For the rest of the year, we will continue developing this.

Speaker #2: In the slide in the corner, you see Sundanese. We continue doing the pushbacks, and we are advancing well. We had a small delay by the electric company removing an electric line that's in our way. That's the reason why there's a small delay in accessing the better grades of Sundanese.

Alberto Lavandeira: We had a small delay by the electric company removing the electric line that is in our way. That is the reason why there is a small delay in accessing the better grades at San Ignacio, something of months, not years. At Masa Valverde, basically, we have continued doing all the works on surface, access roads, explosive magazine, which are quite big, excavation of the preparation for the portal, platforms, and so on, which are almost ready and simply waiting for the final decision to decide to push ahead with the ramp, which is expected sometime later in this quarter. At Riotinto, as you know, we are going to be doing some work to be able to process polymetallic material in our mill. The engineering studies are progressing.

Speaker #2: We're talking about something of months, not years. At Masa Valverde, we have basically continued doing all the work on the surface: access roads, the explosive magazine—which is quite big—the excavation and preparation for the portal, platforms, and so on, which are almost ready.

Speaker #2: And we're simply waiting for the final decision to determine whether to push ahead with the ramp, which is expected sometime later this quarter.

Speaker #2: But, as you know, at Riotinto we are going to be doing some work to be able to process polymetallic material in our mill. The engineering studies are progressing. We have the engineering firms on site this month to optimize the layouts, because although it looks like we have lots of space, we have to remove some of the old installations in order to install the new circuit.

Alberto Lavandeira: We have engineering firms on site this month to optimize the layouts, because although it looks like we have lots of space, we have to remove some of the old installations in order to install the new circuit and try to optimize and have a very flexible circuit that can treat both types of materials, the pure copper we have right now and the polymetallic. In addition to that, we have been doing lots of test works to produce pyrite concentrate from our tailings, due to the strong interest from the market. We have had a lot of inquiries and companies wanting to get access to our pyrite concentrates, because basically our waste is composed by silicates and a little bit of pyrite, and it is ground, it is quite clean, and it is a perfect stream to be sold into the market.

Speaker #2: And try to optimize and have a very flexible circuit that can treat both platform materials: the pure copper that we have right now, and the polymetallic.

Speaker #2: In addition to that, we have been doing lots of test work to produce powder concentrate from our tailings, due to the strong interest from the market.

Speaker #2: We have had lots of inquiries and companies wanting to get access to our powder concentrates because basically, our waste is composed of silicates and a little bit of pyrite. It's ground, it's quite clean, and it's a perfect stream to be sold into the market.

Speaker #2: As you know, the sulfuric market is it looks like it's coming to a point of deficit, and some of the people that produce sulfuric matter acid are looking to diversify and produce some of the sulfuric acid through the burning, through the roasting of pyrite.

Alberto Lavandeira: As you know, the sulfuric market, it looks like it is coming to a point of deficit, and some of the people that produce sulfuric acid are looking to diversify and produce some of the sulfuric acid through the burning, through the roasting of pyrite. Important project in our growth portfolio, as you all know, is Toro. In Toro, we are really hoping to receive the environmental impact declaration soon. We have been expecting this for weeks, if not months. We now know that all the reports have been positive. We have them. We know that the civil servants are preparing the declaration. Unfortunately, we cannot give any additional color on timing because it is out of our control. We know there are no additional steps, no additional papers, nothing, simply in their hands to finalize the drafting.

Speaker #2: The important project in our growth portfolio, as you all know, is Toto. In Toto, we are really hoping to receive the Environmental Impact Declaration soon.

Speaker #2: We have been expecting this for weeks, if not months. We now know that all the reports have been positive; we have them. We know that the civil servants are preparing the declaration. Unfortunately, we cannot give any additional color on timing because it is out of our control.

Speaker #2: We know there's no additional steps, no additional papers, nothing—it's simply in their hands to finalize the drafting. We believe it can be soon, but we all know also the complications that the summer can bring, with fewer people available and so on. But we are quite positive, and actually, we are getting ready for that.

Alberto Lavandeira: We believe it can be soon, but we all know also the complications that the summer can bring with less people available and so on. But we are quite positive and actually we are getting ready for that. We have already completed all the geotechnical studies at the plant site in order to push ahead the moment that we are receiving this final permit of Toro. What is the plan? The plan of Atalaya is basically that we have said before. We are quite positive in the years ahead. We have several attractive projects, a good pipeline of projects in Spain. These projects will take us to around 100,000 tons of copper equivalent. Of course, the big contribution would come from Toro, but also high grades from Masa Valverde and the production of lead zinc concentrates, in addition to the copper concentrates from Riotinto will also contribute to that.

Speaker #2: We have already completed all the geotechnical studies at the plant site, in order to push ahead the moment that we are receiving this final permit at Toto.

Speaker #2: What's the plan? The plan for Atalaya is basically what we have said before: we are quite positive about the years ahead. We have several attractive projects in our pipeline in Spain. These projects could take us to around 100,000 tons of copper equivalent. Of course, the big contribution would come from Touro, but also higher rates from Masa Valverde. The production of lead-zinc concentrates, in addition to the copper concentrates from Riotinto, will also contribute to that.

Speaker #2: Right now we are we have the teams, which is very important, very low rotation in our teams, experienced teams, and we have an excellent balance sheet with well over 300 million net cash in our balance sheet, and no debt, and we will be looking probably to raise some general debt, and of course the team continues to look at new things, to apply their experience, their they have been there in the development of mining projects in Spain in the last years, I would say our teams some of our people have participated in the last mines that were developed in Spain, and some in Africa, and we have the ingredients to grow.

Alberto Lavandeira: Right now, we have the teams, which is very important, very low rotation in our experienced teams. We have an excellent balance sheet with well over EUR 300 million net cash in our balance sheet and no debt. We will be looking probably to raise some debt. Of course, the team continues to look at new things to apply their experience. They have been there in the development of mining projects in Spain in the last years. I would say our teams, some of our people have participated in the last mines that were developed in Spain and some in Africa. We have the ingredients to grow. I think we are very well positioned that in less than three years, we will be in this almost doubling our production of copper equivalent all in Spain. We continue to look at any other opportunity that can be around.

Speaker #2: So I think we're very well positioned that in less than three years we'll be almost doubling our production of copper equivalent, all in Spain, and we continue to look at any other opportunity that could be around.

Speaker #2: And with that, I think I will open the floor for any questions. Maybe the operator can introduce.

Alberto Lavandeira: With that, I think I will open the floor for any questions. Maybe the operator can introduce.

Speaker #1: Yes, ladies and gentlemen, we will now begin the question and answer session. As a reminder, if you would like to ask a question on the phone lines and are dialed in, please press star followed by the number one on your telephone keypad.

Operator: Yes. Ladies and gentlemen, we will now begin the question and answer session. As a reminder, if you would like to ask a question on the phone lines and are dialed in, please press star followed by the number 1 on your telephone keypad. We will pause for a moment to assemble the queue. Our first question comes from the line of Flora Chan with RBC Capital Markets. Please go ahead.

Speaker #1: We will pause for a moment to assemble the queue. Our first question comes from the line of Laura Chan with RBC Capital Markets. Please go ahead.

Flora Chan: Hi. Can you guys hear me?

Laura Chan: Hi. Can you guys hear me?

Speaker #3: Hi, can you guys hear me?

Speaker #2: Yes.

Alberto Lavandeira: Yes.

Speaker #3: Hi, good morning, thanks so much for the call. My first question is just on the CapEx deferral, which is on Sandinicio. Once you move the electric line, how quickly do you expect to access those higher grade zones, and what's the realistic timeline for that meaningful Sandinicio oil contribution to the mill?

Flora Chan: Hi. Good morning. Thanks so much for the call. My first question is just on the CapEx deferral, which is on San Dionisio. Once you move the electric line, how quickly you expect to access those higher grade zones, and what is the realistic timeline for that meaningful San Dionisio ore contribution to the mill? On Masa Valverde, you have indicated the board decision is expected later this quarter. Can you just confirm what the key remaining gating items are? What is the construction inflows or timeline look like once approval is given?

Laura Chan: Hi. Good morning. Thanks so much for the call. My first question is just on the CapEx deferral, which is on San Dionisio. Once you move the electric line, how quickly you expect to access those higher grade zones, and what is the realistic timeline for that meaningful San Dionisio ore contribution to the mill? On Masa Valverde, you have indicated the board decision is expected later this quarter. Can you just confirm what the key remaining gating items are? What is the construction inflows or timeline look like once approval is given?

Speaker #3: And just on Mass Valverde, you've indicated the board decision is expected later this quarter. Can you just confirm what the key remaining gating items are, and what the construction inflows or timeline look like once approval is given?

Speaker #2: Yeah, the electric line is something that has already been contracted out by Endesa, the big company that owns the line and is the main supplier in the south of Spain.

Alberto Lavandeira: The electric line is something that has already been contracted out by Endesa, the big company that owns the line and is the main supplier in the south of Spain. The timeline, I suppose the only question here is the availability of maybe people or teams during the summer period. As soon as they move it, we can access that immediately. When I mean immediately, it is like days after that. We have equipment that is there. We were mining as close as we were permitted. How this can affect the production, I would say probably late this year or early next year. I do not think it will be weeks. I think it will be months. Probably the Q4. Masa Valverde, really not much left. We continue drilling with two rigs. Mainly concentrating in the copper zones. The contractor has been selected.

Speaker #2: And the timeline—I suppose the only question here is the availability of, maybe, people or teams during the summer period. As soon as they move it, we can access that immediately.

Speaker #2: When I say immediately, I mean within days. After that, we have the equipment—it's there. We were mining as close as we were permitted. So, how can this affect the production?

Speaker #2: I would say probably later this year, or earlier this next year, I don't think it will be I don't think it will be weeks, I think it will be months.

Speaker #2: Probably the third quarter, the fourth quarter. At Masa Valverde, really not much left—we continued drilling with two rigs, mainly concentrating in the copper zones. The contractor has been selected, so as soon as we have that, the decision to go ahead, which, as I say, will likely be August, September, when everything on surface is ready, we can get there.

Alberto Lavandeira: As soon as we have that, the decision to go ahead, which as I say, will likely be August, September. When everything on surface is ready, we can get there. The contractor can, depends on the speed there and the rock conditions, which are expected to be quite good, can take from two years to three years. We say 2.5 years to complete the whole ramp. We can access ore probably earlier than that, around two years, but not earlier than that. We will concentrate directly in the copper zone. We will go through an area of polymetallic with very good grades, but unless we have the circuit of Riotinto already. We would not be mining that. We will go directly into the copper zone with grades between 1.5% and 2% copper.

Speaker #2: The contractor can, depending on the speed there and the rock conditions—which are expected to be quite good—take from two years to three years.

Speaker #2: We say two and a half years to complete the whole ramp. We can access it probably earlier than that, around two years, but not earlier than that.

Speaker #2: We will concentrate directly in the copper zone. We will go through an area of polymetallic with very good grades, but unless we have the circuit off, Rutinto ready, we would not be mining that.

Speaker #2: We will go directly into the copper zone, with grades between one and a half and two percent copper. So, for production of copper, I would say the best estimate is two and a half to three years, to be conservative.

Alberto Lavandeira: Production of copper, I would say the best thing is 2.5 to three years to be conservative. That is probably the time for this new copper production.

Speaker #2: That's probably the timing for this new copper production.

Speaker #3: Tell executive, like you mentioned, what do the kinds of projects you've been seeing look like more broadly, and how are you thinking about staggering those different projects, especially with the Toro permit potentially coming quite not far behind?

Flora Chan: electrowinning circuit, like you mentioned. What is the project sequencing look like more broadly, and how are you thinking about staggering those different projects? Especially with the Toro permit potentially coming not far behind. How are you thinking about construction timelines and labor contractor availability? Do you see any issues there?

Laura Chan: -electrowinning circuit, like you mentioned. What is the project sequencing look like more broadly, and how are you thinking about staggering those different projects? Especially with the Toro permit potentially coming not far behind. How are you thinking about construction timelines and labor contractor availability? Do you see any issues there?

Speaker #3: How are you thinking about construction timelines and labor, contractor availability? Do you see any issues there?

Speaker #2: In our case in Spain, we don't expect any issues. We have already pre-selected the contractor, and there's availability of equipment and people. That's for Toro.

Alberto Lavandeira: In our case, in Spain, we do not expect any issues. We have already pre-selected the contractor. There is availability of equipment and people. That is for Toro. I am talking about mining contractor. In the construction teams, the project of Toro itself is not very complicated. The key will be the availability of equipment, which we have already a permit from the board to approve it, to purchase the key equipment like the gyratory crusher, the SAG mill, the ball mill, and flotations and filters, which are basically 50 weeks, between 45 and 55 weeks delivery time. We are going to be doing that immediately as soon as we get the environmental permit. So I expect the total project to take 18 months of construction. Maybe it would be 1 month less or whatever for commission and so on, but basically 18 months is typical.

Speaker #2: Both—I mean, talking about mining contractors and the construction teams—the project of Toro itself is not very complicated. The key will be the availability of equipment, for which we already have a permit from the board to approve the purchase of key equipment like the gyratory crusher, the SAG mill, the ball mill, and flotation cells and filters, which are basically 50 weeks—between 45 and 55 weeks—delivery time.

Speaker #2: And we are going to be doing that immediately, as soon as we get the environmental permit. So I expect the Toro project to take 18 months of construction; maybe it could be one month less, or whatever, for commissioning and so on, but basically, 18 months is typical.

Speaker #2: So it could be a little bit less, but not much less. We are looking at other projects—in Spain and in other places. And look, availability of teams is important.

Alberto Lavandeira: Could be a little bit less, but not much less. We are looking at other projects in Spain and in other places. Look, availability of teams is important. There have been cases where we have been offered things in South America where really it would be a big stretch for us, so we would have to rely local, total local contractor suppliers, and that would probably be a problem. But in Spain, Portugal, Europe, it is not a problem.

Speaker #2: There have been cases where we have been offered things in South America where, really, it would be a big stretch for us, so we would have to rely on local total contractors and suppliers, and that would probably be a problem.

Speaker #2: But in Spain, Portugal, and Europe, it's not a problem.

Speaker #3: Okay, understood. Thanks so much. I'll pass it along to someone else.

Flora Chan: Okay, understood. Thanks so much. I will pass it along to someone else.

Laura Chan: Okay, understood. Thanks so much. I will pass it along to someone else.

Speaker #1: Our next question comes from the line of Jason Fairclo with Bank of America. Please go ahead.

Operator: Our next question comes from the line of Jason Fairclough with Bank of America. Please go ahead.

Speaker #4: Yep, good morning, Alberto. Buenos días. Just a little bit of a question about the polymetallic. Can you talk to us a little bit about the capital cost for this?

Jason Fairclough: Yep. Good morning, Alberto. Buenos dias.

Alberto Lavandeira: Good morning.

Jason Fairclough: Just a little bit of a question about the polymetallic. Can you talk to us a little bit about the capital cost for this? When do you actually need to have this ready to take ore? Is this still one or two years away?

Speaker #4: And when do you actually need to have this ready to take ore? Is this still one or two years away?

Speaker #2: Well, it's a good question, because actually, if we didn't mine any of the polymetallic, we would have like ten years ahead of us, or nine years ahead of us.

Alberto Lavandeira: Well, it is a good question. Because actually, if we did not mine any of the polymetallic, we would have 10 years ahead of us or 9 years ahead of us without needing to bring any polymetallic material. The fact of having this polymetallic can allow us to start blending in materials from different places and have a better operation. When I mean a better operation, I mean that some of the future polymetallics are going to be underground. As you know, going underground for a very large plant is very difficult if you do not have an open pit to be blending the large chunk of the material. That is the reason why we want to bring this ahead as soon as possible. When is as soon as possible? I would say 1 and a half years from now. The site is very advanced.

Speaker #2: Without needing to bring in any polymetallic material. So the fact of having this polymetallic can allow us to start blending in materials from different places and have a better operation.

Speaker #2: When I say a better operation, I mean that some of the future polymetallics are going to be underground, and as you know, going underground for a very large plant is very difficult.

Speaker #2: If you don't have an open pit to be blending the large chunk of material, that's the reason why we want to bring this ahead as soon as possible.

Speaker #2: And when is as soon as possible? I would say one and a half years—it's also from now. The design is very advanced. And what does it include in capital cost?

Alberto Lavandeira: What does it include in capital cost? The first pass, we had EUR 88 million, and that included installing finer grinding lines plus all the zinc. Additional grinding lines, all the zinc and lead and filters, in addition, basically to recover in addition to the copper, the lead zinc. Now we are looking, of course, it also required fine grinding with vertical mills or similar ceramic ball mills. We are trying to optimize that a little bit, probably reduce a little bit the CapEx, and we are in the final stages to try to use the excess capacity that we would have in the grinding side because we have excess capacity. Maybe try to reduce that EUR 88 million.

Speaker #2: The first pass, we had €88 million, and that included installing finer grinding lines plus all the sink. So, additional grinding lines, all the sink, and lead and filters in addition—basically to recover, in addition to the copper, the lead sink.

Speaker #2: Now we are looking, and of course it also requires fine grinding with vertical mills or similar ceramic ball mills. One of the things we are trying to optimize a little bit, probably reduce a little bit the capex, and that's why we are in the final stages.

Speaker #2: To try to use the excess capacity that we have on the grinding side, because we have excess capacity, and maybe try to reduce that €88 million.

Speaker #2: That's the way it would work: when we are processing all the polymetallic, we will be processing a higher rate of copper, and of course, lead and zinc.

Alberto Lavandeira: The way it would work is that when we are processing only polymetallic, we will be processing higher rate of copper and, of course, lead and zinc, but we will be reducing the tonnage through the mill. Instead of going at 2,200 tons an hour to the site, we will be going, I think it was 1,200 or something like that. Now we are looking how this excess grinding capacity can be optimized and still be producing the same material. First pass is EUR 88 million. Trying to reduce that a little bit. When? The sooner the better. It is not essential, so if it is delayed 3 years, it would not matter, but it does not make any sense. The sooner we can make it, the more flexible it will be for us in the future.

Speaker #2: But we would be reducing the tonnage through the mill. Instead of going at 2,000 to 2,100 tons an hour to the SAG, we will be going, I think it was 1,200 or something like that.

Speaker #2: So now we're looking at how this excess grinding capacity can be optimized and still be producing the same material. So, first pass is €88 million.

Speaker #2: Trying to reduce that a little bit, and the sooner the better. It's not essential, so if it's delayed three years, it wouldn't matter.

Speaker #2: But it doesn't make any sense. The sooner we can make it, the more flexible it will be for us in the future.

Speaker #4: And just, I assume this has got differential flotation to separate the lead-zinc from the copper.

Jason Fairclough: I assume this has got differential flotation to separate the lead zinc from the.

Jason Fairclough: I assume this has got differential flotation to separate the lead zinc from the-

Alberto Lavandeira: Yes

Alberto Lavandeira: Yes.

Jason Fairclough: from the copper.

Jason Fairclough: -from the copper.

Speaker #2: Yes, yes.

Speaker #4: Does that mean that you're now giving up on Helix?

Alberto Lavandeira: Yes.

Jason Fairclough: Does that mean that you are now giving up on Elex?

Jason Fairclough: Does that mean that you are now giving up on E-LIX?

Speaker #2: Actually, that's a very good question, because we are not. I mean, actually, we are going to go as we are doing differential flotation. That's absolutely to go for the safe bet.

Alberto Lavandeira: Actually, it is a very good question because we are not. Actually, we are going to go like we are doing differential flotation. That is absolutely to go for a safe bet. But in Elex, we have been working now for 100 days continuously without stopping the plant, really, without stopping. The problem is that it is only running three, four tons an hour. So basically, it is running, let us say, 90 tons per day of concentrate, and it is processing right now. We made some bulk flotation of several zones specifically to feed the plant, which had good copper grade, but also contained lots of zinc. So we are feeding with material that has around 13% copper and around 15% zinc, and the Elex is removing the zinc very well and leaving it in around 2% or even less.

Alberto Lavandeira: Actually, it is a very good question because we are not. Actually, we are going to go like we are doing differential flotation. That is absolutely to go for a safe bet. But in E-LIX, we have been working now for 100 days continuously without stopping the plant, really, without stopping. The problem is that it is only running three, four tons an hour. So basically, it is running, let us say, 90 tons per day of concentrate, and it is processing right now. We made some bulk flotation of several zones specifically to feed the plant, which had good copper grade, but also contained lots of zinc. So we are feeding with material that has around 13% copper and around 15% zinc, and the E-LIX is removing the zinc very well and leaving it in around 2% or even less.

Speaker #2: But in Helix, we have been working now for 100 days continuously without stopping the plant—really without stopping. The problem is that it's only running three or four tons an hour.

Speaker #2: So basically, it's running, let's say, 90 tons per day of concentrate, and it's processing right now. We made some bulk flotation of several zones specifically to feed the plant.

Speaker #2: Which had a good copper grade, but also contained lots of zinc. So we are feeding with material that has around 13% copper and around 15% zinc.

Speaker #2: And the helix is removing the sink very well and leaving it at around 2% or even less. And then the copper grade goes to around 16%, which we blend with our normal material.

Alberto Lavandeira: The copper grade goes to around 16%, which we blend with our normal material. It also recovers silver, and both the silver precipitate and the zinc precipitate, which is a coverate of zinc with around 45% to 47% zinc, is blended with zinc precipitates to the trader, and we get paid for it like a concentrate. So right now this is working already, but I would call it a big pilot plant, like an industrial-scale pilot plant. So are we giving up? We will go with a safe bet, and if we can debottleneck, which we are seeing what are the bottlenecks to be able to treat more tons. We know it works, so what is the bottleneck to treat more tons? We see energy is one of the things, filtering capacity, settling capacity of the precipitates, things that can be sorted out very well.

Speaker #2: It also recovers silver, and both the silver precipitate and the sink precipitate—which is a cover rate of sink with around 45% to 47% sink—are blended with sink precipitates to a trader, and we get paid for it like a concentrate.

Speaker #2: So right now, this is working already, but I would call it a big pilot plant—like an industrial-scale pilot plant. So, are we giving back, giving up?

Speaker #2: We will go with the safe bet, and if we can de-bottleneck—which we are seeing, what is the bottleneck—to be able to treat more tons.

Speaker #2: We know it works, so what is the bottleneck to treat more tons? We see energy is one of the things—filtering capacity, settling capacity of the precipitates—things that can be sorted out very well.

Speaker #2: So that's what we are studying. But right now, we are sticking with the safe bet. And the other one is running to make sure it doesn't cost us money.

Alberto Lavandeira: That is what we are studying. But right now, we are keeping with the safe bet, and the other one is running to make sure it does not cost us money.

Speaker #4: In terms of the polymetallic ores, those are mainly coming, then, from Sandía and ECO, and Massive Belverde?

Jason Fairclough: In terms of the polymetallic ores, those are mainly coming then from San Dionisio and Masa Valverde?

Speaker #2: Sandy and ECO, San Antonio and massive Belverde, yeah. San Antonio, we have almost completed the drilling; it's just east of Rio Tinto. Sandy and ECO, most of it is open pit, and we are looking at how we can increase the open pit and extract much more open pit before going underground.

Alberto Lavandeira: San Dionisio, San Antonio, and Masa Valverde. San Antonio, we have almost completed the drilling. It is just east of Riotinto. San Dionisio, most of it is open pit, and we are looking how we can increase the open pit and extract much more open pit underground. Masa Valverde, in addition to the copper zone, there are areas around good lead, zinc, and copper grades. We have a few other deposits called Mojarra, Campanario, whatever, which are not even in the resource, let us say blocks, kind of drilled, but we are still evaluating, which are also polymetallic. Main material, which is the only one we are accounting for this project, is San Dionisio open pit and underground, San Antonio underground, and Valverde underground. Combined with-

Speaker #2: And at Massive Belverde, in addition to the copper zone, there are areas around with good lead, zinc, and copper grades. We have a few other deposits called Mojarra, Campanario, and others, which are not even in the resource, let's say, blocks.

Speaker #2: Kind of drilled, but we're still evaluating, which are also polymetallic. Main material which is the only one we are counting for this project is Sandy and ECO open pit and underground, San Antonio underground, and Belverde underground.

Speaker #2: Combined with the leftover of the copper stockwork.

Jason Fairclough: Okay. Thank you.

Alberto Lavandeira: with the leftover of the copper stockwork at Cerro Colorado.

Alberto Lavandeira: -with the leftover of the copper stockwork at Cerro Colorado.

Speaker #4: Okay. All right, thanks. I'll let somebody else ask a question. Thank you, sir.

Jason Fairclough: Okay. Vale. All right, thanks. I will let somebody else ask a question. Thank you, sir.

Speaker #2: Thanks, Jason.

Alberto Lavandeira: Thanks, Jason.

Speaker #1: Once again, as a reminder, if you are dialed into the conference and would like to ask a question, please press star, followed by the number 1 on your telephone keypad.

Operator: Once again, as a reminder, if you are dialed into the conference and would like to ask a question, please press star, followed by the number 1 on your telephone keypad. Our next question comes from the line of Jasper Mainwaring with Berenberg. Please go ahead.

Speaker #1: Our next question comes from the line of Jasper Mainwaring with Berenberg. Please go ahead.

Speaker #3: Oh, thanks for taking my questions. Just on the guidance to lower copper grades into H2, following this period, could you please just provide some more color on how we should be thinking about the grade profile into early next year?

Jasper Mainwaring: Thanks for taking my question. Just on the guidance to lower copper grades into H2. Following this period, could you please just provide some more color on how we should be thinking about the grade profile into early next year? Do we expect some pickup in grades after H2? Thanks.

Speaker #3: Should we expect some pickup in grades after H2? Thanks.

Speaker #2: Yes, we expect a little bit higher grades next year, especially when we get some of the material coming from the upper part of Sandy and ECO.

Alberto Lavandeira: Yes, we expect a little bit of higher grades next year, especially when we get some of the material coming from the upper part of San Dionisio kicking in. I think next year you should be expecting grades in the range of 0.4. I do not have the plan up here, but I think yes, we will see better grades next year.

Speaker #2: Kick it in. So, I think this next year you should be expecting grades in the range of 0.4. I don't have the plan up here, but I think yes, you will see better grades next year.

Speaker #3: Okay, great. Thank you. And just to follow up on the earlier question around Helix, in the text of the release, you have this statement saying uncertainty remains regarding the recoverability of the related assets.

Jasper Mainwaring: Okay, great. Thank you. Just to follow up on the earlier question around Elex. In the text of the release, you have this statement saying, "Uncertainty remains regarding the recoverability of the related assets." Can you please just explain what you mean by this, or is that what you were talking about earlier?

Speaker #3: Can you please just sort of explain what you mean by this, or is that what you were talking about earlier?

Speaker #2: Well, the thing is that we, as you know, we, as you know, we made an impairment in the investment due to the very bad financial situation of the company that runs Helix.

Alberto Lavandeira: Well, the thing is that we, as you know, we made an impairment in the investment due to the very bad financial situation of the company that runs Elex. We have doubts that our investment, which basically we had loans into Elex, could be recovered. So we were careful to include this sentence saying that although the plant is working, there is no assurance yet to reverse this impairment. It is simply saying, "Look, it is working and the process is working fine. It is breaking even. But is this enough to change our impairment that we decided in the first part of the year? We are not yet sure." So simply to be conservative.

Speaker #2: And we have doubts that our investment, which basically we had—we had loans into Helix—could be recovered. So we were careful to include this sentence saying that although the plant is working, there's no assurance yet that this would—that to reverse this impairment.

Speaker #2: It's simply saying, look, it's working, and the process is working fine—it's breaking even. But is this enough to change our impairment that we decided in the first part of the year?

Speaker #2: We are not yet sure, so simply, to be conservative.

Speaker #3: Okay, makes sense. Thanks.

Jasper Mainwaring: Okay. Makes sense. Thanks.

Speaker #1: And it seems that we have a follow-up from the line of Jason Serko with Bank of America. Please go ahead.

Operator: It seems that we have a follow-up from the line of Jason Fairclough with Bank of America. Please go ahead.

Jason Fairclough: Alberto, just to come back on Toro. I think with the last set of results, you were making some very positive noises, Toro any day now. I do not think those were the exact words, but something like that. Now it seems to be taking longer again. So what is the hold up?

Speaker #4: Alberto, just to come back on Toro, I think with the last set of results you were making some very positive noises: Toro any day now.

Speaker #4: I don't think those were the exact words, but something like that. But now it seems to be taking longer again. So, what's the holdup?

Speaker #2: Look, I don't know. You're right. I've been wrong so many times that I almost feel embarrassed here—well, I do feel embarrassed. What I have to say is because I'm from the region.

Alberto Lavandeira: Well, I do not know. You are right. I have been wrong so many times that I almost feel embarrassed here. Well, I feel embarrassed. What I have to say because I am from the region. Last quarter, the reports, they were ready. They said that they would send us any time. Finally, we received them in, I think it was in July or early July, totally signed. Then they asked us for, "Okay, can you make a summary of the project, like a compendium of the project?" We said, "Well, why did you not ask this before?" Because it is like 20,000 pages, and they needed that to finalize the EIA. We prepared that, sent it to them with meetings and clarifications, basically to prepare the DIA. Why I think now there is no more work, simply because they are working already on it.

Speaker #2: Last quarter, the reports were ready. They said that they could send them to us anytime. And finally, we received them, I think it was in July or early July.

Speaker #2: Totally signed. And then they asked us, "Okay, can you make a summary for the project? Like a compendium of the project?" We said, "Well, why didn't you ask this before?"

Speaker #2: Because it's like 20,000 pages, and they needed that to kind of finalize the IAA. We prepared that, sent it to them with meetings and clarifications.

Speaker #2: Basically, to prepare the IAA, the DIA. Why I think now there's no more work is simply because they are already working on it. They told us, we know the person that's preparing this.

Alberto Lavandeira: They told us, we know the person that is preparing this. What is holding up? I suppose there are civil servants that politicians cannot go and ask them to work. If they have a planned holiday on 15 July or 15 August, it does not matter what they say, they will go out for holidays. I suppose this is what is holding up. Really nothing else. There is no more, send me a new summary, a new project, or a new whatever. So right now, it is final. Also, we also have other signs that are indirect to justify this, which is they gave us the permit to do all the geotechnical work, including trenching, including drilling at plant site and tailings, which we completed already, which in theory should be waiting for the final DIA. So there are lots of signs going on there. But when the DIA finalizes.

Speaker #2: What's holding up? I suppose there are civil servants that politicians cannot go and ask to work if they have a planned holiday on the 15th of July or the 15th of August.

Speaker #2: It doesn't matter what they say, they will go out for holidays. I suppose this is what's holding up—really nothing else. But there's no more, "Send me a new summary, a new project, or a new whatever."

Speaker #2: So right now, it's final. Also, we have other signs that are indirect to justify this, which is that they gave us the permit to do all the geotechnical work, including trenching and drilling, at the plant site and tailings, which we have already completed. In theory, we should be waiting for the final DIA.

Speaker #2: So, there are lots of signs going on there, but when the guy finalizes, we always believed it was going to be in summer. Once they passed a certain point, it was going to be in the summer because, if they are scared—the politicians sometimes are scared or worried about the noise—probably summer is a quieter period.

Alberto Lavandeira: We always believed it was going to be in summer. Once they pass certain point, it was going to be in summer because if they are scared, the politicians sometimes are scared or worried about the noise. Probably summer is a quieter period, but we have had positive environmental impact declarations in lots of places in Spain in any month of the year. So I think it can happen any time. Could it be in September? Could it be in August? I expect so. Could it be early September? Yes. Certainly not going to go much more than that because there is no excuse.

Speaker #2: But we have had positive environmental pack declarations in lots of places in Spain, any month of the year. So, I think it can happen anytime, but could it be in September?

Speaker #2: Could it be in August? I said so, but could it be early September? Yes. Certainly not going to go much more than that because there's no excuse.

Speaker #2: No excuse.

Speaker #4: Okay, okay. Just a question on the exploration in Sweden. We don't want to get too excited about drill results and intercepts, but it still smells kind of interesting.

Jason Fairclough: Okay. Just a question on the exploration in Sweden. We do not want to get too excited about drill results and intercepts, but still smells kind of interesting. How are you thinking about a timeline to a resource in Sweden?

Speaker #4: How are you thinking about a timeline to a resource in Sweden?

Speaker #2: Oh, timeline is difficult to say. I think exploration is difficult because, yeah, we have good results, but it will be a few million tons.

Alberto Lavandeira: Well, timeline is difficult to say. I think exploration is difficult because, yeah, we have good results, but it will be few million tons. It will be not enough to have a project to be developed. There are two zones, the Skellefte and the Rävliden areas. I think this winter campaign will provide us a little bit more color because until now, we were going very conservative, following up interception anomalies, while now we are going to do a little bit, this year we expect to do some step outs to show is there something big there or is it better to look at different options to farm it out or to explore different alternatives.

Speaker #2: It will not be enough to have a project to be developed. There are two zones—the Skellefteå and the Ropliden areas. I think this winter campaign will provide us a little bit more cover because, until now, we were going very conservatively, following up intercepts and anomalies.

Speaker #2: Well, now we are going to do a little bit this year. We expect to do some step-outs to show if there is something big there, or if it is better to look at different options to farm it out, or to explore different alternatives.

Speaker #2: So, I think this winter season, which is already starting with mobilizing rigs in the north belt, will be essential to understand if we have deposits there that are worth mining by themselves or doing anything with them.

Alberto Lavandeira: This winter season, which is starting, already mobilizing rigs in the North belt, will be essential to understand if we have deposits there that are worth mining by themselves or do anything with them. It is early days.

Speaker #2: Yeah, it's early days. And in the other belt in Ropliden, it's still a little bit early. But Skellefteå has a few good areas.

Jason Fairclough: Okay.

Alberto Lavandeira: In the other belt, in Rävliden, it is still a little bit early.

Jason Fairclough: Okay

Jason Fairclough: Okay.

Alberto Lavandeira: But Skellefte has a few good areas.

Alberto Lavandeira: But Skellefteå has a few good areas.

Speaker #4: Okay, perfect. Okay, thanks for that, sir.

Jason Fairclough: Okay, perfect. Okay, thanks for that, sir.

Speaker #2: Thanks.

Alberto Lavandeira: Thanks.

Speaker #1: Our next question comes from the line of David Radcliffe with Global Mining Research. Please go ahead.

Operator: Our next question comes from the line of David Radclyffe with Global Mining Research. Please go ahead.

David Radclyffe: Hi. Good morning, everyone. My question is just a follow-up to the polymetallic question. I am just wondering, does this mean that you are thinking about publishing an update to the 2023 PEA? If so, when would that be? I guess to what level would that study actually be? I am just wondering, in the work you have been doing, has there been any change to the scope of that study from obviously quite a few years ago now? You obviously mentioned a little bit about the plant potential capital, but from memory, there was a lot of mine development as well that went with that. Any sort of color on that would be very helpful.

Speaker #5: Hi, good morning everyone. My question is just a follow-up to the polymetallic question. I'm just wondering, does this mean that you're thinking about publishing an update to the 2023 PEA?

Speaker #5: If so, when would that be? And I guess, to what level would that study actually be? And then just wondering, in the work you've been doing, has there been any change to the scope of that study from, obviously, quite a few years ago now?

Speaker #5: You obviously mentioned, kind of a little bit, about the plant potential capital. But from memory, there was a lot of mine development as well that went with that.

Speaker #5: So, any sort of color on that would be very helpful.

Speaker #2: That's a very good question. We will have to, at a certain time, update the PEA, yes. When? I would say next year—certainly not this year.

Alberto Lavandeira: That is a very good question. We will have to, at a certain time, update the PEA. Yes. When? I would say next year. Certainly not this year. You are 100% right that what has changed from that year, which is, as you say, already outdated, is the timing. Things have slipped, which means the timing of the blends are different. I would say that is the first adjustment. Otherwise, in principle, it is still the same. It is basically having some material being mined from San Antonio. We already have the designs of access ramps, of mining, and even preliminary mining designs. The access to San Antonio is through a ramp of around 1.2 kilometers from one of the sides of the Cerro Colorado pit, the east side. We already have where it is going, the rock conditions and so on.

Speaker #2: You are 100% right that what has changed from that year—which is a little bit, as you say, already outdated—is the timing. Things have slipped, which means the timing of the blends is different.

Speaker #2: So I would say that's the first adjustment. Otherwise, in principle, this is still the same. It's basically having someone who will be in mind from San Antonio. There, we already have the signs of access ramps of mining and even preliminary mining designs.

Speaker #2: The access to San Antonio is through a ramp of around 1.2 kilometers. From one of the sites of the Cerro Colorado pit, the east side, we already have work going.

Speaker #2: The rock conditions and so on. And we were basically waiting to finalize the infield ring, which is about to be finished. There should be only three or four holes remaining.

Alberto Lavandeira: We were basically waiting to finalize the infield ring, which is about to be finished. There should be only three or four holes remaining. That is basically what it includes, is access ramp in connection with there is a shaft there for emergency exit and ventilation. That is one thing. In the case of San Dionisio, most of it is open pit. We want to optimize that open pit to try to do as much open pit as possible. That includes the final results of the geotechnical campaign. Because most of the rock is very good, but there is one side that has some shales that require a much lower slope, and we have to finalize the geotechnical study, which is being carried out. When is it going to be this update? I would say next year. I do not think we have time to do it this year.

Speaker #2: So that's basically what it includes: a ramp, access ramp, and connection. There is a shaft there for emergency exit and ventilation. So that's one thing.

Speaker #2: In the case of San Dionisio, most of it is open pit. We want to optimize that open pit to try to do as much open pit as possible.

Speaker #2: And that includes the final results of the geotechnical campaign, because at most of the sites, the rock is very good. But there's one site that has some shells and requires a much lower slope, and we have to finalize the geotechnical study, which has been carried out.

Speaker #2: When is it going to be, this update? I would say next year. I don't think we'll have time to do it this year. The scope itself is similar to what it was the previous year.

Alberto Lavandeira: The scope itself is similar to what it was previous year. Not big difference. The only thing what changes is the timing.

Speaker #2: Not a big difference. The only thing that changes is the timing.

Speaker #4: Okay. All right.

David Radclyffe: Okay. All right. No, that is very helpful. Thank you. I will pass it on.

Speaker #5: No, that's very helpful. Thank you all. I'll pass it on.

Speaker #1: Thank you. At this time, we have no further questions on the conference line. I will now turn the call back over to the management team for closing remarks.

Operator: Thank you. At this time, we have no further questions on the conference line. I will now turn the call back over to the management team for closing remarks.

Speaker #2: Okay, thank you very much. Well, I just want to thank everybody for being here this morning with us, and thanks for your continued support. We look forward to an excellent second part of the year and finally getting to 'towed,' which is what we are all looking for.

Alberto Lavandeira: Well, only to thank you everybody to be here this morning with us. Thanks for your continued support. We look forward to an excellent second part of the year and finally getting to production, which we are all looking forward for that. Thanks a lot.

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Q2 2026 Atalaya Mining Copper SA Earnings Call

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Atalaya Mining Copper

Earnings