TIDMATYM
RNS Number : 9906I
Atalaya Mining PLC
07 April 2020
7 April 2020
Atalaya Mining Plc
("Atalaya" and/or the "Group")
Results for the year ended 31 December 2019
Atalaya Mining Plc (AIM: ATYM; TSX: AYM) is pleased to announce
its audited consolidated results for the year ended 31 December
2019 ("FY2019" or the "Period").
The consolidated Financial Statements 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 for the Period
Year ended 31 December 2019 2018 %
Revenues from operations EURk 187,868 189,476 (0.8%)
----------------- ---------- ---------- ---------
Operating costs EURk (115,944) (128,898) (10.0%)
----------------- ---------- ---------- ---------
EBITDA EURk 61,333 53,542 14.6%
----------------- ---------- ---------- ---------
Profit for the year EURk 30,720 34,441 (10.8%)
----------------- ---------- ---------- ---------
Earnings per share EUR cents/share 27.2 25.4 7.0%
----------------- ---------- ---------- ---------
Cash flows from operating
activities EURk 37,934 55,333 (31.4%)
----------------- ---------- ---------- ---------
Cash flows used in
investing activities EURk (62,351) (65,712) (5.1%)
----------------- ---------- ---------- ---------
Cash flows from financing
activities EURk (576) 593 (197.1%)
----------------- ---------- ---------- ---------
Working capital surplus EURk 3,598 8,435 (57.3%)
----------------- ---------- ---------- ---------
Average realised copper
price $/lb 2.73 2.95 (7.5%)
----------------- ---------- ---------- ---------
Copper concentrate
produced (tonnes) 195,072 180,661 8.0%
----------------- ---------- ---------- ---------
Copper production (tonnes) 44,950 42,114 6.7%
----------------- ---------- ---------- ---------
Cash costs $/lb payable 1.80 1.94 (7.2%)
----------------- ---------- ---------- ---------
All-In Sustaining Cost $/lb payable 2.14 2.26 (5.3%)
----------------- ---------- ---------- ---------
-- Revenue of EUR187.9 million (FY2018: EUR189.5 million) from
increased volume of copper concentrates sold at a lower price
compared to prior year.
-- Reduced operating costs of EUR115.9 million (FY2018: EUR128.9 million).
-- EBITDA of EUR61.3 million (FY2018: EUR53.5 million).
-- Profit after tax of EUR30.7 million (FY2018: EUR34.4 million).
-- Copper was sold during the Period under in place off-take
agreements for an average realised price of US$2.73/lb copper,
compared to US$2.95/lb copper in the same period of 2018.
-- Efficiencies in maintenance cost and technical services
reduced cash costs to US$1.80/lb payable copper (FY2018: US$1.94/lb
payable copper).
Proyecto Riotinto Operating Highlights
Mining
-- Copper production of 44,950 tonnes (FY2018: 42,114 tonnes)
reflecting the positive impact of the expansion project at Proyecto
Riotinto which was completed and commissioned on budget at the end
of the Period.
-- Mining operations progressed according to plan and at similar
levels during the quarters. Ore mined during the year decreased
slightly to 10.4 Mtpa compared with 10.8 Mtpa in the previous
year.
Processing
-- 10.5 Mtpa of ore processed (FY2018: 9.8 Mtpa) with an average
copper head grade of 0.49% and a recovery rate of 87.09% (FY2018:
88.30%).
o Throughput increased with recoveries slightly decreasing from
2018 levels owing to the ramp-up of the new SAG Mill.
-- On-site concentrate inventories at 31 December 2019 were
approximately 14,201 tonnes (FY2018: 4,667 tonnes) all of which
were sold in January 2020.
Expansion Project at Proyecto Riotinto
-- The 15Mtpa Expansion Project was completed with the
processing plant fully commissioned and operating at an increased
annualised rate of 15Mtpa since January 2020.
Exploration and Geology
-- Exploration and infill drilling continue in Atalaya pit and Cerro Colorado pit.
-- Results from ongoing exploration drilling in 2019 were
encouraging with 7,238m drilled at San Dionisio (in Atalaya pit)
and 4,959m drilled at Filón Sur (in Cerro Colorado pit).
-- Evaluation of new drill data continues to assist in defining
and validating the historical data from the copper stockwork in the
area.
-- FY2019 exploration costs of EUR3.6 million (FY2018: EUR1.0 million).
Proyecto Touro
-- 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 Company, along with its advisers is continuing to
evaluate potential next steps for Proyecto Touro, which could
include an appeal of the decision made by the Xunta de Galicia,
and/or the clarification of the questions raised by the
reports.
Outlook for 2020
-- The Company provides the following guidance for 2020:
o Production guidance estimated within 55,000 to 58,000 tonnes
of copper, targeting an improvement on 2019 production.
o Cash costs and AISC 2020 guidance to range from US$1.95/lb to
US$2.05/lb and from US$2.20/lb to US$2.30/lb, respectively.
-- The Company is aware that the COVID-19 pandemic may still
further impact how the Company manages 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.
Legal Overview
Proyecto Riotinto - Ruling of Autorizacion Ambiental Unificada
("AAU")
-- Throughout 2019, the Company, together with the Junta de
Andalucía ("JdA") continued to work on remedying the legal standing
of the AAU.
-- On 30 January 2020 the JdA issued a favourable report in
relation to the AAU. The AAU is still in a short legal consultation
period as the JdA has suspended all deadlines of the process as
result of COVID-19 outbreak. After this process is completed, the
JdA is expected to issue the validated AAU.
Astor
-- On 2 March 2020, the Company filed an application in the High
Court to seek clarity on the definition of "Excess Cash". A
preliminary hearing is currently due to take place in May 2020. As
and when a substantive hearing takes place, the Company expects to
have clarity on the definition of Excess Cash and the payment
schedule of the Deferred Consideration and the Loan Assignment.
-- As at 31 December 2019, no consideration has been paid.
COVID-19 Update and Going Concern
-- The Company issued COVID-19 updates on 17 March 2020, 30 March 2020 and 6 April 2020.
-- As announced on 30 March 2020, a Royal Decree of 29 March
2020 excluded mining from essential industries resulting in the
halting of operations at Proyecto Riotinto from 30 March 2020. As
announced on 6 April 2020, further clarifications were received on
the Royal Decree on 3 April 2020 which re-included mining on the
list of permitted activities and accordingly, operations at
Proyecto Riotinto were authorized to recommence.
-- It is Atalaya's priority to protect its workforce and the
local communities surrounding both Proyecto Riotinto 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.
-- In order to mitigate the potential operational and financial
impact of COVID-19 the Company has increased its cash balance from
EUR8.0 million as at 31 December 2019 to EUR41.7 million as at 31
March 2020 by drawing down on existing credit facilities.
-- The Company has evaluated the potential financial and
operational impact of COVID-19 as a result of the uncertainty
surrounding future copper prices and future potential stoppages to
Proyecto Riotinto through detailed scenario analysis.
-- The directors of the Company have a reasonable expectation
that Atalaya has adequate resources to continue operating for the
foreseeable future and have prepared the consolidated financial
statements on a going concern basis (see Note 2.1 (b) of the
Financial Statements below for further detail on the Going
Concern).
-- The auditors have reported on the consolidated financial
statements; their audit opinion was unqualified. They included an
Emphasis of Matter paragraph drawing attention to the disclosures
describing the COVID-19 developments and the impact of these
developments on the Group's operations. Their audit opinion was not
modified in respect of this matter.
Alberto Lavandeira, CEO commented :
"The expansion and successful commissioning of the Riotinto
plant by the end of 2019 is another demonstration of our ability to
develop low capital intensity projects in a timely and cost
effective manner. The Company's financial performance over 2019
withstood decreasing copper prices and minor operational
interruptions caused by the integration of the expansion to deliver
an improved EBITDA on the previous year. The impact of the COVID-19
virus necessitated a short-term shutdown at Proyecto Riotinto which
we expect to make up over the coming months. We shall continue to
monitor the situation in line with Spanish government guidelines as
the wellbeing of our employees is our primary concern. We will also
continue to keep shareholders updated as to the effect of these
guidelines may have on our operations"
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 / Adam Lloyd / + 44 20 3757
Newgate Communications Tom Carnegie 6880
+44 20 3170
4C Communications Carina Corbett 7973
----------------------------------- -------------
Canaccord Genuity
(NOMAD and Joint Henry Fitzgerald-O'Connor / James +44 20 7523
Broker) Asensio 8000
----------------------------------- -------------
BMO Capital Markets Tom Rider / Michael Rechsteiner +44 20 7236
(Joint Broker) / Neil Elliot 1010
----------------------------------- -------------
Peel Hunt LLP +44 20 7418
(Joint Broker) Ross Allister / David McKeown 8900
----------------------------------- -------------
Consolidated and Company Statements of Comprehensive Income
for the year ended 31 December 2019
The Company The Group The Company
The Group
(Euro 000's) Note 2019 2019 2018 2018
=========== ============ ========== ============
Revenue 5 187,868 1,283 189,476 1,323
Operating costs and mine site
administrative expenses (115,325) - (128,707) -
Mine site depreciation, amortisation
and impairment 13,14 (23,025) - (13,430) -
=========== ============ ========== ============
Gross profit 49,518 1,283 47,339 1,323
Administration and other expenses (6,718) (1,540) (5,867) (4,370)
Share based benefits 23 (619) - (216) (10)
Exploration expenses (3,588) - (1,021) -
Impairment loss on other receivables (1,694) (1,694) - -
Care and maintenance expenditure (373) - (281) -
Operating profit/(loss) 7 36,526 (1,951) 39,954 (3,057)
Other income 6 88 124 158 117
Net foreign exchange gain/(loss) 4 350 (3) 1,613 40
Interest income from financial
assets at fair value 9 - 13,607 - 13,615
Interest income from financial
assets at amortised cost 9 52 3,223 71 2,569
Finance costs 10 (89) - (253) -
Profit before tax 36,927 15,000 41,543 13,284
Tax 11 (6,207) (878) (7,102) (1,524)
=========== ============ ========== ============
Profit for the year 30,720 14,122 34,441 11,760
=========== ============ ========== ============
Profit for the year attributable
to:
* Owners of the parent 37,323 14,122 34,715 11,760
* Non-controlling interests (6,603) - (274) -
=========== ============ ========== ============
30,720 14,122 34,441 11,760
=========== ============ ========== ============
Earnings per share from operations
attributable to equity holders
of the parent during the year:
Basic earnings per share (EUR
cents per share) 12 27.2 25.4
=========== ============ ========== ============
Diluted earnings per share
(EUR cents per share) 12 26.8 25.1
=========== ============ ========== ============
Profit for the year 30,720 14,122 34,441 11,760
Other comprehensive income:
Other comprehensive income
that will not be reclassified
to profit or loss in subsequent
periods (net of tax):
Change in fair value of financial
assets through other comprehensive
income 'OCI' 20 (29) (29) (58) (58)
----------- ------------
Total comprehensive profit
for the year 30,691 14,093 34,383 11,702
=========== ============ ========== ============
Total comprehensive profit
for the year attributable to:
* Owners of the parent 37,294 14,093 34,657 11,702
* Non-controlling interests (6,603) - (274) -
=========== ============ ========== ============
30,691 14,093 34,383 11,702
=========== ============ ========== ============
Consolidated and Company Statements of Financial Position
As at 31 December 2019
As at 31 December As at 31 December
The The The The Company
Group Company Group 2018
(Euro 000's) Note 2019 2019 2018
======== ========= ========= ===========
Assets
Non-current assets
Property, plant and equipment 13 307,815 - 257,376 -
Intangible assets 14 63,085 - 71,951 -
Investment in subsidiaries 15 - 4,630 - 3,899
Trade and other receivables 19 500 310,002 249 290,104
Non-current financial asset 20 1,101 - - -
Deferred tax asset 17 6,576 - 7,927 -
======== ========= ========= ===========
379,077 314,632 337,503 294,003
======== ========= ========= ===========
Current assets
Inventories 18 21,330 - 10,822 -
Trade and other receivables 19 32,857 4,043 23,688 6,689
Tax refundable 1,924 - - -
Other financial assets 20 42 42 71 71
Cash and cash equivalents 21 8,077 128 33,070 826
======== ========= ========= ===========
64,230 4,213 67,651 7,586
======== ========= ========= ===========
Total assets 443,307 318,845 405,154 301,589
======== ========= ========= ===========
Equity and liabilities
Equity attributable to
owners of the parent
Share capital 22 13,372 13,372 13,372 13,372
Share premium 22 314,319 314,319 314,319 314,319
Other reserves 23 22,836 6,435 12,791 5,845
Accumulated losses (30,669) (36,535) (58,308) (50,657)
======== ========= ========= ===========
319,858 297,591 282,174 282,879
Non-controlling interests 24 (2,402) - 4,200 -
======== ========= ========= ===========
Total equity 317,456 297,591 286,374 282,879
======== ========= ========= ===========
Liabilities
Non-current liabilities
Trade and other payables 25 13 - 45 -
Provisions 26 6,941 - 6,519 -
Leases 27 5,265 - - -
Deferred consideration 28 53,000 9,117 53,000 9,117
65,219 9,117 59,564 9,117
======== ========= ========= ===========
Current liabilities
Trade and other payables 25 57,537 10,272 57,271 8,069
Leases 27 588 - - -
Current tax liabilities 11 2,507 1,865 1,945 1,524
60,632 12,137 59,216 9,593
======== ========= ========= ===========
Total liabilities 125,851 21,254 118,780 18,710
======== ========= ========= ===========
Total equity and liabilities 443,307 318,845 405,154 301,589
======== ========= ========= ===========
Consolidated Statement of Changes in Equity
for the year ended 31 December 2019
Attributable to owners of the
parent
============================================================
Non-
Note Share Share Other Accumulated controlling Total
capital Premium reserves losses Total interest equity
(Euro 000's) (2) (1)
========= ========== ========== ============= ========== ============= ==========
At 1 January 2018 13,192 309,577 6,137 (86,527) 242,379 4,474 246,853
Profit for the
year - - - 34,715 34,715 (274) 34,441
Change in fair
value of financial
assets through
OCI 20 - - (58) - (58) - (58)
--------- ---------- ---------- ------------- ---------- ------------- ----------
Total comprehensive
income - - (58) 34,715 34,657 (274) 34,383
Transactions with
owners
Issue of share
capital 22 180 4,747 - - 4,927 - 4,927
Share issue costs 22 - (5) - - (5) - (5)
Depletion factor 23 - - 5,050 (5,050) - - -
Recognition of
share-based
payments 23 - - 216 - 216 - 216
Recognition of
non-distributable
reserve 23 - - 1,446 (1,446) - - -
At 31 December
2018 /
1 January 2019 13,372 314,319 12,791 (58,308) 282,174 4,200 286,374
Profit for the
year - - 37,323 37,323 (6,602) 30,721
Change in fair
value of financial
assets through
OCI 20 - - (29) - (29) - (29)
--------- ---------- ---------- ------------- ---------- ------------- ----------
Total comprehensive
income - - (29) 37,323 37,294 (6,602) 30,692
Transactions with
owners
Depletion factor 23 - - 5,378 (5,378) - - -
Recognition of
share-based
payments 23 - - 619 - 619 - 619
Recognition of
non-distributable
reserve 23 - - 1,984 (1,984) - - -
Recognition of
distributable
reserve 23 - - 1,844 (1,844) - - -
Other changes
in equity 23 - - 249 (478) (229) - (229)
At 31 December
2019 13,372 314,319 22,836 (30,669) 319,858 (2,402) 317,456
--------- ---------- ---------- ------------- ---------- ------------- ----------
Company Statement of Changes in Equity
for the year ended 31 December 2019
Share Share Other Accumulated
Note capital premium reserves losses Total
(Euro 000's) (2) (1)
======== ======== ========= =========== ========
At 1 January 2018 13,192 309,577 5,687 (62,417) 266,039
Profit for the year - - - 11,760 11,760
Change in fair value of
financial assets through
OCI 20 - - (58) - (58)
-------- -------- --------- ----------- --------
Total comprehensive income - - (58) 11,760 11,702
Issue of share capital 22 180 4,747 - - 4,927
Share issue costs 22 - (5) - - (5)
Recognition of share-based
payments 23 - - 216 - 216
======== ========
At 31 December 2018/1 January
2019 13,372 314,319 5,845 (50,657) 282,879
Profit for the year - - - 14,122 14,122
Change in fair value of
financial assets through
OCI 20 - - (29) - (29)
-------- -------- --------- ----------- --------
Total comprehensive income - - (29) 14,122 14,093
Recognition of share-based
payments 23 - - 619 - 619
At 31 December 2019 13,372 314,319 6,435 (36,535) 297,591
======== ======== ========= =========== ========
Consolidated Statement of Cash Flows
for the year ended 31 December 2019
(Euro 000's) Note 2019 2018
========= =========
Cash flows from operating activities
Profit before tax 36,927 41,543
Adjustments for:
Depreciation of property, plant and equipment 13 12,575 10,143
Amortisation of intangible assets 14 3,502 3,287
Impairment of intangibles 14 6,948 -
Recognition of share--based payments 23 619 216
Interest income 9 (52) (71)
Interest expense 10 41 214
Unwinding of discounting 10 40 39
Legal provisions 26 261 (86)
Release of prior year provision 6 - (117)
Impairment loss on other receivables 19 1,694 -
Rehabilitation provision (18) -
Loss on disposal of intangibles - 955
Unrealised foreign exchange loss on financing
activities 2 179
Cash inflows from operating activities
before working capital changes 62,539 56,302
Changes in working capital:
Inventories 18 (10,508) 2,852
Trade and other receivables 19 (9,911) 11,697
Trade and other payables 25 1,159 (10,334)
Deferred consideration - 17
========= =========
Cash flows from operations 43,279 60,534
Interest expense on lease liabilities 27 (8) -
Interest paid (41) (214)
Tax paid (5,296) (4,987)
========= =========
Net cash from operating activities 37,934 55,333
========= =========
Cash flows from investing activities
Purchases of property, plant and equipment 13 (56,453) (63,216)
Purchases of intangible assets 14 (5,449) (2,492)
Acquisition of other financial assets 20 (501) -
Disposal of subsidiary 15 - (75)
Interest received 9 52 71
========= =========
Net cash used in investing activities (62,351) (65,712)
========= =========
Cash flows from financing activities
Lease payment 27 (576) -
Proceeds from issue of share capital - 598
Listing and issue costs 22 - (5)
Net cash from financing activities (576) 593
========= =========
Net (decrease) / increase in cash and cash
equivalents (24,993) (9,786)
Cash and cash equivalents:
At beginning of the year 21 33,070 42,856
========= =========
At end of the year 21 8,077 33,070
========= =========
Company Statement of Cash Flows
for the year ended 31 December 2019
(Euro 000's) Note 2019 2018
========= =========
Cash flows from operating activities
Profit/(loss) before tax 15,000 13,284
Adjustments for:
Share--based payments - 10
Interest income 9 (25) (63)
Interest income from interest-bearing intercompany
loans 9 (16,805) (16,121)
Impairment loss on other receivables - -
Release of prior year provision 6 - (117)
Unrealised foreign exchange loss on financing
activities - 209
========= =========
Cash inflows used in operating activities
before working capital changes (1,830) (2,798)
Changes in working capital:
Increase in trade and other receivables 19 (17,252) (53,969)
Increase in trade and other payables 25 2,204 2,077
Cash flows used in operations (16,878) (54,690)
Tax paid (537) -
Net cash used in operating activities (17,415) (54,690)
========= =========
Cash flows from investing activities
Interest received 9 25 63
Investment in subsidiaries (113) -
Interest income from interest-bearing intercompany
loans 9 16,805 16,121
Net cash from investing activities 16,717 16,184
========= =========
Cash flows from financing activities
Proceeds from issue of share capital 22 - 4,927
Listing and issue costs 22 - (5)
Net cash from financing activities - 4,922
========= =========
Net (decrease)/increase in cash and cash
equivalents (698) (33,584)
Cash and cash equivalents:
At beginning of the year 21 826 34,410
========= =========
At end of the year 21 128 826
========= =========
Notes to the Consolidated and Company Financial Statements
Year ended 31 December 2019
1. Incorporation and summary of business
Country of incorporation
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 31 December 2019.
Additional information about Atalaya Mining Plc is available at
www.atalayamining.com as per requirement of AIM rule 26.
Changed on name and share consolidation
Following the Company's EGM on 13 October 2015, the change of
the name 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 GBP0.075 for every 30
existing ordinary shares of nominal value of GBP0.0025.
Principal activities
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.
Atalaya also owns 10% of Proyecto Touro, a brownfield copper
project in northwest Spain.
In November 2019, Atalaya executed the option to acquired 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.
The Company's and its subsidiaries' activity are to explore for
and develop metals production operations in Europe, with an initial
focus on copper.
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.
2. Summary of significant accounting policies
The principal accounting policies applied in the preparation of
these consolidated and company financial statements (hereinafter
"financial statements") are set out below. These policies have been
consistently applied to all the years presented, unless otherwise
stated.
2.1 Basis of preparation
(a) Overview
The financial statements of Atalaya Mining Plc have been
prepared in accordance with International Financial Reporting
Standards ("IFRS"). IFRS comprise the standards issued by the
International Accounting Standards Board ("IASB").
The financial statements are presented in EUR and all values are
rounded to the nearest thousand (EUR'000), except where otherwise
indicated.
Additionally, the financial statements have also been prepared
in accordance with the IFRS as adopted by the European Union and
the requirements of the Cyprus Companies Law, Cap.113. For the year
ending 31 December 2019, the standards applicable for IFRS's as
adopted by the EU are aligned with the IFRS's as issued by the
IASB.
The consolidated financial statements have been prepared on a
historical cost basis except for the revaluation of certain
financial instruments that are measured at fair value at the end of
each reporting period, as explained below and in note 3.
The preparation of financial statements in conformity with IFRS
requires the use of certain critical accounting estimates. It also
requires management to exercise its judgment in the process of
applying the Group's accounting policies. The areas involving a
higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial
statements are disclosed in Note 3.4.
(b) Going concern
On 11 March 2020, the World Health Organisation declared the
Coronavirus COVID- 19 outbreak to be a pandemic in recognition of
its rapid spread across the globe. Many governments are taking
increasingly stringent steps to help contain, and in many
jurisdictions, now delay, the spread of the virus, including:
requiring self-isolation/ quarantine by those potentially affected,
implementing social distancing measures, and controlling or closing
borders and "locking-down" cities/regions or even entire
countries.
The crisis and the actions taken by governments have resulted in
significant disruption to business operations, consumption patterns
worldwide, equity markets and significant volatility in commodities
prices, including copper, which prices declined below Company's
ASIC level during March 2020.
Furthermore, in Spain, where the Company has its single
producing asset, the Government issued a Royal Decree on 14 March
2020 to declare the nationwide lockdown to reduce the impact of the
COVID-19 pandemic. On 29 March 2020, the Spanish Government issued
a new Royal Decree implementing enhanced measures to protect the
people from the virus. The new Decree stipulated that only
employees from a short list of essential industries are allowed to
continue working from 30 March 2020. Mining was excluded as an
essential industry and consequently the Proyecto Riotinto site was
required to halt its operations for a short period until 3 April
2020 when mining operations were permitted to restart.
The significant impact on copper prices and the stoppage of
Proyecto Riontinto as a result of the Royal Decree will impact the
revenues for the year ended 31 December 2020. The uncertain
surrounding future copper prices and if Proyecto Riotinto will be
required to be halted again for a longer period makes difficult to
determine and quantify the operational and financial impact there
may be on the business going forward.
The Directors have considered and debated different possible
scenarios on the Company's operations, financial position and
forecast for a period of at least 12 months since the approval of
these financial statements. Possible scenarios range from (i)
further disruption in Proyecto Riotinto; (ii) market volatility in
commodity prices; and (iii) availability of existing credit
facilities.
The Company has increased its cash balance from EUR8.0 million
as at 31 December 2019 to EUR41.7 million as at 31 March 2020 by
drawing down on existing credit facilities (see Note 34).
The Directors, after reviewing these scenarios, the current cash
resources, forecasts and budgets, timing of cash flows, borrowing
facilities, sensitivity analyses and considering the associated
uncertainties to the Group's operations have a reasonable
expectation that the Company has adequate resources to continue
operating in the foreseeable future.
Accordingly, these financial statements have been prepared on
the basis of accounting principles applicable to a going concern
which assumes that the Group and the Company will realise its
assets and discharge its liabilities in the normal course of
business. Management has carried out an assessment of the going
concern assumption and has concluded that the Group and the Company
will generate sufficient cash and cash equivalents to continue
operating for the next twelve months (see Note 34).
2.2 Changes in accounting policy and disclosures
The Group has adopted all the new and revised IFRSs and
International Accounting Standards (IASs) which are relevant to its
operations and are effective for accounting periods commencing on 1
January 2019.
The Group applied IFRS 16 and IFRIC 23 for the first time from 1
January 2019. The nature and effect of the changes as a result of
adoption of this new accounting standard is described below.
Several other amendments and interpretations apply for the first
time in 2019, but do not have a significant impact on the
consolidated financial statements of the Group. The Group has not
early adopted any standards, interpretations or amendments that
have been issued but are not yet effective.
IFRS 16 - Leases
The Group has adopted all of the requirements of IFRS 16 Leases
('IFRS 16') effective 1 January 2019 (initial application). IFRS 16
supersedes IAS 17 Leases ('IAS 17'). IFRIC 4 Determining whether an
Arrangement contains a Lease, SIC-15 Operating Leases-Incentives
and SIC-27 Evaluating the Substance of Transactions Involving the
Legal Form of a Lease. The standard sets out the principles for the
recognition, measurement, presentation and disclosure of leases and
requires lessees to account for most leases under a single
on-balance sheet model.
The Group has applied IFRS 16 using the modified retrospective
approach and therefore the comparative information has not been
restated and continues to be reported in terms of IAS 17 and IFRIC
4: Determining Whether an Arrangement Contains a Lease. The Group
has applied the modified retrospective approach whereby the right
of use asset was set equal to the finance lease liability with no
impact on retained earnings on 1 January 2019.The Group elected to
use the "transition practical expedient" allowing the standard to
be applied only to contracts that were previously identified as
leases applying IAS 17 and IFRIC 4 at the date of initial
application. As a result, the Group has changed its accounting
policy for leases as detailed in the accounting policies (Note
2.2)
Impact of adopting IFRS 16 on the Group's consolidated financial
statements
The following table summarises the impact of adopting IFRS 16 on
the Group's extracted consolidated statement of financial position
at 1 January 2019:
(Euro 000's) As previously Adjustments Balance as
Note reported as at at
31 December 1 January 1 January
2018 2019 2019
Non-current assets
Property, plant
and equipment 13 257,376 6,144 263,520
Deferred tax asset 7,927 - 7,927
Equity and liabilities
Accumulated losses (58,308) - (58,308)
Non-current liabilities
Leases 27 - 5,609 5,609
Current liabilities
Leases 27 - 534 534
a) Comparative accounting policy in terms of IAS 17
In terms of IAS 17, the Group was required to classify its
leases as either finance leases or operating leases and account for
those two types of leases differently (both as a lessor or a
lessee). A lease was classified as a finance lease if it
transferred substantially all the risks and rewards incidental to
ownership. A lease was classified as an operating lease if all the
risks and rewards incidental to ownership did not substantially
transfer.
Finance leases were recognised as assets and liabilities in the
statement of financial position at amounts equal to the fair value
of the leased property or, if lower, the present value of the
minimum lease payments. The corresponding liability to the lessor
was included in the statement of financial position as a finance
lease obligation. The discount rate used in calculating the present
value of the minimum lease payments is the interest rate implicit
in the lease. The lease payments are apportioned between the
finance charge and reduction of the outstanding liability. The
finance charge is allocated to each period during the lease term so
as to produce a constant periodic rate on the remaining balance of
the liability.
Operating lease payments, in the event of the Group operating as
lessee, were recognised as an expense on a straight-line basis over
the lease term. The difference between the amounts recognised as an
expense and the contractual payments were recognised as an
operating lease asset. The liability was not discounted.
b) Accounting policy in terms of IFRS 16
Right-of-use assets
The Group recognises right-of-use assets at the commencement
date of the lease (i.e., the date the underlying asset is available
for use). Right-of-use assets are measured at cost, less any
accumulated depreciation and impairment losses, and adjusted for
any remeasurement of lease liabilities.
The cost of right-of-use assets includes the amount of lease
liabilities recognised, initial direct costs incurred, and lease
payments made at or before the commencement date less any lease
incentives received. Unless the Group is reasonably certain to
obtain ownership of the leased asset at the end of the lease term,
the recognised right-of-use assets are depreciated on a
straight-line basis over the shorter of its estimated useful life
and the lease term. Right-of-use assets are subject to
impairment.
Subsequent to initial measurement, the right-of-use assets are
depreciated from the commencement date using the straight-line
method over the shorter of the estimated useful lives of the
right-of-use assets or the end of lease term. These are as
follows:
Right-of-use asset Depreciation terms in years
Land Based on Units of Production
(UOP)
Motor vehicles Based on straight line depreciation
Laboratory equipment Based on straight line depreciation
After the commencement date, the right-of-use assets are
measured at cost less any accumulated depreciation and any
accumulated impairment losses and adjusted for any remeasurement of
the lease liability.
Lease liabilities
The lease liability is initially measured at the present value
of the lease payments that are not paid at the commencement date,
discounted using the interest rate implicit in the lease or, if
that rate cannot be readily determined, the Group's incremental
borrowing rate. Generally, the Group uses its incremental borrowing
rate as the discount rate. Lease payments included in the
measurement of the lease liability include the following:
-- Fixed payments, less any lease incentives receivable
-- Variable lease payments that depend on an index or rate,
initially measured using the index or rate as at the commencement
date
-- Amounts expected to be payable by the lessee under residual value guarantees
-- The exercise price of a purchase option if the lessee is
reasonably certain to exercise that option
-- Lease payments in an optional renewal period if the Group is
reasonably certain to exercise an extension option
-- Payments of penalties for early terminating the lease, unless
the Group is reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the
effective interest rate method. After the commencement date, the
amount of lease liabilities is increased to reflect the accretion
of interest and reduced for the lease payments made. In addition,
the carrying amount of lease liabilities is re-measured if there is
a modification, a change in the lease term, a change in the
in-substance fixed lease payments or a change in the assessment to
purchase the underlying asset. The result of this re-measurement is
disclosed in a line of the right-of-use assets note as
modifications.
The lease liabilities as at 1 January 2019 can be reconciled to
the operating lease commitments as of 31 December 2018, as
follows:
Assets EUR'000
--------
Operating lease commitments as at 31 December
2018 6,803
Weighted average incremental borrowing rate
as at 1 January 2019 1.50%
--------
Discounted operating lease commitments as at
1 January 2019 6,144
Lease liabilities as at 1 January 2019 6,144
========
When the lease liability is remeasured, a corresponding
adjustment is made to the carrying amount of the right-of-use asset
or is recorded as profit or loss if the carrying amount of the
right-of-use asset has been reduced to zero.
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to
its short-term leases of machinery and equipment (i.e., those
leases that have a lease term of 12 months or less from the
commencement date and do not contain a purchase option). It also
applies the lease of low-value assets recognition exemption to
leases of office equipment that are considered of low value (i.e.,
below EUR5,000). Lease payments on short-term leases and leases of
low-value assets are recognised as expense on a straight-line basis
over the lease term.
Significant judgement in determining the lease term of contracts
with renewal options
The Group determines the lease term as the non-cancellable term
of the lease, together with any periods covered by an option to
extend the lease if it is reasonably certain to be exercised, or
any periods covered by an option to terminate the lease, if it is
reasonably certain not to be exercised.
The Group has the option, under some of its leases to lease the
assets for additional terms of three to five years. The Group
applies judgement in evaluating whether it is reasonably certain to
exercise the option to renew. That is, it considers all relevant
factors that create an economic incentive for it to exercise the
renewal. After the commencement date, the Group reassesses the
lease term if there is a significant event or change in
circumstances that is within its control and affects its ability to
exercise (or not to exercise) the option to renew (e.g., a change
in business strategy). The Group included the renewal period as
part of the lease term for leases of plant and machinery due to the
significance of these assets to its operations. These leases have a
short non-cancellable period (i.e., three to five years) and there
will be a significant negative effect on production if a
replacement is not readily available. The renewal options for
leases of motor vehicles were not included as part of the lease
term because the Group has a policy of leasing motor vehicles for
not more than five years and hence not exercising any renewal
options.
c) Amounts recognised in the statement of financial position and
profit or loss
Set out below are the carrying amounts of the Group's
right-of-use assets and lease liabilities and the movements during
the period:
Right - of-use assets
===========================================
Laboratory Lease liabilities
(Euro 000's) Land Vehicles equipment Total
As at 1 January
2019 6,085 59 - 6,144 6,144
Additions - - 277 277 277
Depreciation expense (335) (15) (40) (390) -
Interest expense - - - - 8
Payments - - - - (576)
------- ----------- ----------- -------- ----------------------
As at 31 December
2019 5,750 44 237 6,031 5,853
------- ----------- ----------- -------- ----------------------
The amounts recognised in profit or loss, are set out below:
Twelve month Twelve month
ended ended
31 Dec 31 Dec
(Euro 000's) 2019 2018
As at 31 December
Depreciation expense of right-of-use (391) -
assets
Interest expense on lease liabilities (8) -
Total amounts recognised in profit or (399) -
loss
------------- ---------------
The Group recognised rent expense from short-term leases.
IFRIC Interpretation 23 Uncertainty over Income Tax
Treatment
The Interpretation addresses the accounting for income taxes
when tax treatments involve uncertainty that affects the
application of IAS 12 Income Taxes. It does not apply to taxes or
levies outside the scope of IAS 12, nor does it specifically
include requirements relating to interest and penalties associated
with uncertain tax treatments. The Interpretation specifically
addresses the following:
-- Whether an entity considers uncertain tax treatments
separately
-- The assumptions an entity makes about the examination of tax
treatments by taxation authorities
-- How an entity determines taxable profit (tax loss), tax
bases, unused tax losses, unused tax credits and tax rates
-- How an entity considers changes in facts and
circumstances
The Group determines whether to consider each uncertain tax
treatment separately or together with one or more other uncertain
tax treatments and uses the approach that better predicts the
resolution of the uncertainty.
The Group applies significant judgement in identifying
uncertainties over income tax treatments. Since the Group operates
in a complex multinational environment, it assessed whether the
Interpretation had an impact on its consolidated financial
statements.
Upon adoption of the Interpretation, the Group considered
whether it has any uncertain tax positions, particularly those
relating to transfer pricing. The Company's and the subsidiaries'
tax filings in different jurisdictions include deductions related
to transfer pricing and the taxation authorities may challenge
those tax treatments. The Group determined, based on its tax
compliance and transfer pricing study, that it is probable that its
tax treatments (including those for the subsidiaries) will be
accepted by the taxation authorities. The Interpretation did not
have an impact on the consolidated financial statements of the
Group.
Amendments to IFRS 9: Prepayment Features with Negative
Compensation
Under IFRS 9, a debt instrument can be measured at amortised
cost or at fair value through other comprehensive income, provided
that the contractual cash flows are 'solely payments of principal
and interest on the principal amount outstanding' (the SPPI
criterion) and the instrument is held within the appropriate
business model for that classification. The amendments to IFRS 9
clarify that a financial asset passes the SPPI criterion regardless
of an event or circumstance that causes the early termination of
the contract and irrespective of which party pays or receives
reasonable compensation for the early termination of the contract.
These amendments had no impact on the consolidated financial
statements of the Group.
IAS 28: Long-term Interests in Associates and Joint Ventures
(Amendments)
The amendments clarify that an entity applies IFRS 9 to
long-term interests in an associate or joint venture to which the
equity method is not applied but that, in substance, form part of
the net investment in the associate or joint venture (long-term
interests). This clarification is relevant because it implies that
the expected credit loss model in IFRS 9 applies to such long-term
interests.
The amendments also clarified that, in applying IFRS 9, an
entity does not take account of any losses of the associate or
joint venture, or any impairment losses on the net investment,
recognised as adjustments to the net investment in the associate or
joint venture that arise from applying IAS 28 Investments in
Associates and Joint Ventures.
These amendments had no impact on the consolidated financial
statements as the Group does not have long term interests in its
associate and joint venture.
Amendments to IAS 19: Plan Amendment, Curtailment or
Settlement
The amendments to IAS 19 address the accounting when a plan
amendment, curtailment or settlement occurs during a reporting
period. The amendments specify that when a plan amendment,
curtailment or settlement occurs during the annual reporting
period, an entity is required to determine the current service cost
for the remainder of the period after the plan amendment,
curtailment or settlement, using the actuarial assumptions used to
remeasure the net defined benefit liability (asset) reflecting the
benefits offered under the plan and the plan assets after that
event. An entity is also required to determine the net interest for
the remainder of the period after the plan amendment, curtailment
or settlement using the net defined benefit liability (asset)
reflecting the benefits offered under the plan and the plan assets
after that event, and the discount rate used to remeasure that net
defined benefit liability (asset). The amendments had no impact on
the consolidated financial statements of the Group as it did not
have any plan amendments, curtailments, or settlements during the
period.
Annual Improvements 2015-2017 Cycle
-- IFRS 3 Business Combinations. The amendments clarify that,
when an entity obtains control of a business that is a joint
operation, it applies the requirements for a business combination
achieved in stages, including remeasuring previously held interests
in the assets and liabilities of the joint operation at fair value.
In doing so, the acquirer remeasures its entire previously held
interest in the joint operation. An entity applies those amendments
to business combinations for which the acquisition date is on or
after the beginning of the first annual reporting period beginning
on or after 1 January 2019, with early application permitted. These
amendments had no impact on the consolidated financial statements
of the Group as there is no transaction where joint control is
obtained.
-- IAS 12 Income Taxes. The amendments clarify that the income
tax consequences of dividends are linked more directly to past
transactions or events that generated distributable profits than to
distributions to owners. Therefore, an entity recognises the income
tax consequences of dividends in profit or loss, other
comprehensive income or equity according to where it originally
recognised those past transactions or events. An entity applies the
amendments for annual reporting periods beginning on or after 1
January 2019, with early application permitted. When the entity
first applies those amendments, it applies them to the income tax
consequences of dividends recognised on or after the beginning of
the earliest comparative period. Since the Group's current practice
is in line with these amendments, they had no impact on the
consolidated financial statements of the Group.
-- IAS 23 Borrowing Costs. The amendments clarify that an entity
treats as part of general borrowings any borrowing originally made
to develop a qualifying asset when substantially all of the
activities necessary to prepare that asset for its intended use or
sale are complete. The entity applies the amendments to borrowing
costs incurred on or after the beginning of the annual reporting
period in which the entity first applies those amendments. An
entity applies those amendments for annual reporting periods
beginning on or after 1 January 2019, with early application
permitted. Since the Group's current practice is in line with these
amendments, they had no impact on the consolidated financial
statements of the Group.
2.2.1 Standards issued but not yet effective
The new and amended standards and interpretations that are
issued, but not yet effective, up to the date of issuance of the
financial statements are disclosed below. Some of them were adopted
by the European Union and others not yet. The Group and the Company
intend to adopt these new and amended standards and
interpretations, if applicable, when they become effective.
Amendment in IFRS 10 Consolidated Financial Statements and IAS
28 Investments in Associates and Joint Ventures: Sale or
Contribution of Assets between an Investor and its Associate or
Joint Venture.
The amendments address an acknowledged inconsistency between the
requirements in IFRS 10 and those in IAS 28, in dealing with the
sale or contribution of assets between an investor and its
associate or joint venture. The main consequence of the amendments
is that a full gain or loss is recognized when a transaction
involves a business (whether it is housed in a subsidiary or not).
A partial gain or loss is recognised when a transaction involves
assets that do not constitute a business, even if these assets are
housed in a subsidiary. In December 2015 the IASB postponed the
effective date of this amendment indefinitely, but an entity that
early adopts the amendments must apply them prospectively. The
amendments have not yet been endorsed by the EU. The Group will
apply these amendments when they become effective.
IFRS 3: Business Combinations (amendments)
The IASB issued amendments in Definition of a Business
(amendments to IFRS 3) aimed at resolving the difficulties that
arise when an entity determines whether it has acquired a business
or a group of assets. These amendments are effective for business
combinations for which the acquisition date is in the first annual
reporting period beginning on or after 1 January 2020 and to asset
acquisitions that occur on or after the beginning of that period,
with earlier application permitted. These Amendments have not yet
been endorsed by the EU. The Group does not expect these amendments
to have a material impact on its profit and financial position.
IAS 1 Presentation of Financial Statements and IAS 8 Accounting
Policies, Changes in Accounting Estimates and Errors: Definition of
'material' (amendments)
The amendments are effective for annual periods beginning on or
after 1 January 2020 with earlier application permitted. They
clarify the definition of material and how it should be applied.
The new definition states that, 'Information is material if
omitting, misstating or obscuring it could reasonably be expected
to influence decisions that the primary users of general purpose
financial statements make on the basis of those financial
statements, which provide financial information about a specific
reporting entity'. In addition, the explanations accompanying the
definition have been improved. The amendments also ensure that the
definition of material is consistent across all IFRS Standards. The
Group does not expect these amendments to have a material impact on
its profit and financial position.
Interest Rate Benchmark Reform - IFRS 9, IAS 39 and IFRS 7
(Amendments)
The amendments are effective for annual periods beginning on or
after 1 January 2020 and must be applied retrospectively. Earlier
application is permitted. In September 2019, the IASB issued
amendments to IFRS 9, IAS 39 and IFRS 7, which concludes phase one
of its work to respond to the effects of Interbank Offered Rates
(IBOR) reform on financial reporting. Phase two will focus on
issues that could affect financial reporting when an existing
interest rate benchmark is replaced with a risk-free interest rate
(an RFR). The amendments published, deal with issues affecting
financial reporting in the period before the replacement of an
existing interest rate benchmark with an alternative interest rate
and address the implications for specific hedge accounting
requirements in IFRS 9 Financial Instruments and IAS 39 Financial
Instruments: Recognition and Measurement, which require
forward-looking analysis. The amendments provided temporary
reliefs, applicable to all hedging relationships that are directly
affected by the interest rate benchmark reform, which enable hedge
accounting to continue during the period of uncertainty before the
replacement of an existing interest rate benchmark with an
alternative nearly risk-free interest rate. There are also
amendments to IFRS 7 Financial Instruments: Disclosures regarding
additional disclosures around uncertainty arising from the interest
rate benchmark reform. The Group does not expect these amendments
to have a material impact on its profit and financial position.
IAS 1 Presentation of Financial Statements: Classification of
Liabilities as Current or Non-current (Amendments)
The amendments are effective for annual reporting periods
beginning on or after January 1, 2022 with earlier application
permitted. The amendments aim to promote consistency in applying
the requirements by helping companies determine whether, in the
statement of financial position, debt and other liabilities with an
uncertain settlement date should be classified as current or
non-current. The amendments affect the presentation of liabilities
in the statement of financial position and do not change existing
requirements around measurement or timing of recognition of any
asset, liability, income or expenses, nor the information that
entities disclose about those items. Also, the amendments clarify
the classification requirements for debt which may be settled by
the company issuing own equity instruments. These Amendments have
not yet been endorsed by the EU. The Group does not expect these
amendments to have a material impact on its profit and financial
position.
Conceptual Framework in IFRS standards
The IASB issued the revised Conceptual Framework for Financial
Reporting on 29 March 2018. The Conceptual Framework sets out a
comprehensive set of concepts for financial reporting, standard
setting, guidance for preparers in developing consistent accounting
policies and assistance to others in their efforts to understand
and interpret the standards. IASB also issued a separate
accompanying document, Amendments to References to the Conceptual
Framework in IFRS Standards, which sets out the amendments to
affected standards in order to update references to the revised
Conceptual Framework. Its objective is to support transition to the
revised Conceptual Framework for companies that develop accounting
policies using the Conceptual Framework when no IFRS Standard
applies to a particular transaction. For preparers who develop
accounting policies based on the Conceptual Framework, it is
effective for annual periods beginning on or after 1 January 2020.
The Group and Company does not expect this framework to have a
material impact on its results and financial position.
2.3 Consolidation
(a) Basis of consolidation
The consolidated financial statements comprise the financial
statements of Atalaya Mining Plc and its subsidiaries.
(b) Subsidiaries
Subsidiaries are all entities (including special purpose
entities) over which the Group and the Company has control. Control
exists when the Group is exposed, or has rights, to variable
returns for its involvement with the investee and has the ability
to affect those returns through its power over the investee. The
existence and effect of potential voting rights that are currently
exercisable or convertible are considered when assessing whether
the Group controls another entity. The Group also assesses
existence of control where it does not have more than 50% of the
voting power but is able to govern the financial and operating
policies by virtue of de-facto control.
De-facto control may arise in circumstances where the size of
the Group's voting rights relative to the size and dispersion of
holdings of other shareholders give the Group the power to govern
the financial and operating policies, etc.
The Group re-assesses whether or not it controls an investee if
facts and circumstances indicate that there are changes to one or
more of the three elements of control. Consolidation of a
subsidiary begins when the Group obtains control over the
subsidiary and ceases when the Group loses control of the
subsidiary. Assets, liabilities, income and expenses of a
subsidiary acquired or disposed of during the year are included in
the consolidated financial statements from the date the Group gains
control until the date the Group ceases to control the
subsidiary.
Profit or loss and each component of OCI are attributed to the
equity holders of the parent of the Group and to the
non-controlling interests, even if this results in the
non-controlling interests having a deficit balance. When necessary,
adjustments are made to the financial statements of subsidiaries to
bring their accounting policies in line with the Group's accounting
policies. All intra-group assets and liabilities, equity, income,
expenses and cash flows relating to transactions between members of
the Group are eliminated in full on consolidation.
A change in the ownership interest of a subsidiary, without a
loss of control, is accounted for as an equity transaction.
Subsidiaries are fully consolidated from the date on which
control is transferred to the Group. If the Group loses control
over a subsidiary, it derecognises the related assets (including
goodwill), liabilities, non-controlling interest and other
components of equity, while any resultant gain or loss is
recognised in profit or loss. Any investment retained is recognised
at fair value'.
The main operating subsidiary of Atalaya Mining Plc is the 100%
owned Atalaya Riotionto Minera, S.L.U. which operates "Proyecto
Riotinto", in the historical site of Huelva, Spain.
The name and shareholding of the entities included in the Group
in these financial statements are:
Entity name Business % (2) Country
Atalaya Mining, Plc Holding n/a Cyprus
EMED Marketing Ltd. Marketing 100% Cyprus
EMED Mining Spain, S.L. Dormant 100% Spain
Atalaya Riotinto Minera, S.L.U. Operating 100% Spain
Recursos Cuenca Minera, S.L. Operating 50% Spain
Atalaya Minasderiotinto Project Holding 100% United Kingdom
(UK), Ltd.
Eastern Mediterranean Exploration Operating 100% Spain
& Development, S.L.U.
Atalaya Touro (UK), Ltd. Holding 100% United Kingdom
Fundación Atalaya Riotinto Trust 100% Spain
Cobre San Rafael, S.L. (1) Development 10% Spain
Atalaya Servicios Mineros, S.L.U. Dormant 100% Spain
Notes
(1) Cobre San Rafael, S.L. is the entity which holds the mining
rights of the Proyecto Touro. The Group has control in the
management of Cobre San Rafael, S.L., including one of the two
Directors, management of the financial books and the capacity to
appoint the key personnel. Refer to Note 31 for details on the
acquisition of Cobre San Rafael, S.L.
(2) The effective proportion of shares held as at 31 December
2019 and 2018 remained unchanged.
The Group applied the acquisition method to account for business
combinations. The consideration transferred for the acquisition of
a subsidiary is the fair value of the transferred assets,
liabilities incurred by the former owners of the acquiree and the
equity interests issued by the Group. The consideration transferred
includes the fair value of any asset or liability resulting from a
contingent consideration arrangement. Identifiable assets acquired,
liabilities and contingent liabilities assumed in a business
combination are measured initially at fair value at the acquisition
date. The Group recognised any non-controlling interest in the
acquiree on an acquisition-by-acquisition basis, either at fair
value or at the non-controlling interest's proportionated share of
the recognised amounts of acquiree's identifiable net assets.
(c) Acquisition-related costs are expensed as incurred.
If the business combination is achieved in stages, the
acquisition date carrying value of the acquirer's previously held
equity interest in the acquire is re-measured to fair value at the
acquisition date; any gains or losses arising from such
re-measurement are recognised in profit or loss.
Any contingent consideration to be transferred by the Group is
recognised at fair value at the acquisition date. Subsequent
changes to the fair value of the contingent consideration that is
deemed to be an asset or liability is recognised in accordance with
IFRS 9 in profit or loss. Contingent consideration that is
classified as equity is not re-measured, and its subsequent
settlement is accounted for within equity.
Inter-company transactions, balances, income and expenses on
transactions between Group companies are eliminated. Gains and
losses resulting from intercompany transactions that are recognised
in assets are also eliminated. Accounting policies of subsidiaries
have been changed where necessary to ensure consistency with the
policies adopted by the Group.
(d) Changes in ownership interests in subsidiaries without
change of control
Transactions with non-controlling interests that do not result
in loss of control are accounted for as equity transactions - that
is, as transactions with the owners in their capacity as owners.
The difference between fair value of any consideration paid and the
relevant share acquired of the carrying value of net assets of the
subsidiary is recorded in equity. Gains or losses on disposals to
non-controlling interests are also recorded in equity.
(e) Disposal of subsidiaries
When the Group ceases to have control any retained interest in
the entity is re-measured to its fair value at the date when
control is lost, with the change in carrying amount recognised in
profit or loss. The fair value is the initial carrying amount for
the purposes of subsequently accounting for the retained interest
as an associate, joint venture or financial asset. In addition, any
amounts previously recognised in other comprehensive income in
respect of that entity are accounted for as if the Group had
directly disposed of the related assets or liabilities. This may
mean that amounts previously recognised in other comprehensive
income are reclassified to profit or loss.
(f) Associates and joint ventures
An associate is an entity over which the Group has significant
influence. Significant influence is the power to participate in the
financial and operating policy decisions of the investee (generally
accompanying a shareholding of between 20% and 50% of the voting
rights) but is not control or joint control over those
policies.
A joint venture is a type of joint arrangement whereby the
parties that have joint control of the arrangement have rights to
the net assets of the joint venture. Joint control is the
contractually agreed sharing of control of an arrangement, which
exists only when decisions about the relevant activities require
the unanimous consent of the parties sharing control.
Investments in associates or joint ventures are accounted for
using the equity method of accounting. Under the equity method, the
investment is initially recognised at cost, and the carrying amount
is increased or decreased to recognise the investor's share of the
profit or loss of the investee after the date of acquisition. The
Group's investment in associates or joint ventures includes
goodwill identified on acquisition.
If the ownership interest in an associate or joint venture is
reduced but significant influence is retained, only a proportionate
share of the amounts previously recognised in other comprehensive
income is reclassified to profit or loss where appropriate.
The Group's share of post-acquisition profit or loss is
recognised in the income statement, and its share of
post-acquisition movements in other comprehensive income is
recognised in other comprehensive income, with a corresponding
adjustment to the carrying amount of the investment. When the Group
share of losses in an associate or a joint venture equals or
exceeds its interest in the associate or joint venture, including
any other unsecured receivables, the Group does not recognise
further losses, unless it has incurred legal or constructive
obligations or made payments on behalf of the associate or the
joint venture.
The Group determines at each reporting date whether there is any
objective evidence that the investment in the associate or the
joint venture is impaired. If this is the case, the Group
calculates the amount of impairment as the difference between the
recoverable amount of the associate or the joint venture and its
carrying value and recognises the amount adjacent to 'share of
profit/(loss) of associates' or joint ventures' in the income
statement.
Profits and losses resulting from upstream and downstream
transactions between the Group and its associate or joint venture
are recognised in the Group's consolidated financial statements
only to the extent of unrelated investors' interests in the
associates or the joint ventures. Unrealised losses are eliminated
unless the transaction provides evidence of an impairment of the
asset transferred. Accounting policies of associates have been
changed where necessary to ensure consistency with the policies
adopted by the Group. Dilution gains and losses arising in
investments in associates or joint ventures are recognised in the
income statement.
(g) Functional currency
Functional and presentation currency items included in the
financial statements of each of the Group's entities are measured
using the currency of the primary economic environment in which the
entity operates ('the functional currency'). The financial
statements are presented in Euro which is the Group and the Company
functional and presentation currency.
Determination of functional currency may involve certain
judgements to determine the primary economic environment and the
parent entity reconsiders the functional currency of its entities
if there is a change in events and conditions which determined the
primary economic environment.
Foreign currency transactions are translated into the functional
currency using the spot exchange rates prevailing at the dates of
the transactions or valuation where items are re-measured. Foreign
exchange gains and losses resulting from the settlement of such
transactions are recognised in the income statement.
Monetary assets and liabilities denominated in foreign
currencies are updated at year-end spot exchange rates.
Non-monetary items that are measured at historical cost in a
foreign currency are translated using the exchange rates at the
dates of the initial transaction. Non-monetary items measured at
fair value in a foreign currency are translated using the exchange
rates at the date when the fair value was determined.
Gains or losses of monetary and non-monetary items are
recognised in the income statement.
Balance sheet items are translated at period-end exchange rates.
Exchange differences on translation of the net assets of such
entities are taken to equity and recorded in a separate currency
translation reserve.
2.4 Investments in subsidiary companies
Investments in subsidiary companies are stated at cost less
provision for impairment in value, which is recognised as an
expense in the period in which the impairment is identified.
2.5 Interest in joint arrangements
A joint arrangement is a contractual arrangement whereby the
Group and other parties undertake an economic activity that is
subject to joint control that is when the strategic, financial and
operating policy decisions relating to the activities the joint
arrangement require the unanimous consent of the parties sharing
control.
Where a Group entity undertakes its activities under joint
arrangements directly, the Group's share of jointly controlled
assets and any liabilities incurred jointly with other ventures are
recognised in the financial statements of the relevant entity and
classified according to their nature. Liabilities and expenses
incurred directly in respect of interests in jointly controlled
assets are accounted for on an accrual basis. Income from the sale
or use of the Group's share of the output of jointly controlled
assets, and its share of joint arrangement expenses, are recognised
when it is probable that the economic benefits associated with the
transactions will flow to/from the Group and their amount can be
measured reliably.
The Group undertakes joint arrangements that involve the
establishment of a separate entity in which each acquiree has an
interest (jointly controlled entity). The Group reports its
interests in jointly controlled entities using the equity method of
accounting.
Where the Group transacts with its jointly controlled entities,
unrealised profits and losses are eliminated to the extent of the
Group's interest in the joint arrangement.
2.6 Segment reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision-maker.
The chief operating decision-maker, who is responsible for
allocating resources and assessing performance of the operating
segments, has been identified as the CEO who makes strategic
decisions.
The Group has only one distinct business segment, being that of
mining operations, mineral exploration and development.
2.7 Inventory
Inventory consists of copper concentrates, ore stockpiles and
metal in circuit and spare parts. Inventory is physically measured
or estimated and valued at the lower of cost or net realisable
value. Net realisable value is the estimated future sales price of
the product the entity expects to realise when the product is
processed and sold, less estimated costs to complete production and
bring the product to sale. Where the time value of money is
material, these future prices and costs to complete are
discounted.
Cost is determined by using the FIFO method and comprises direct
purchase costs and an appropriate portion of fixed and variable
overhead costs, including depreciation and amortisation, incurred
in converting materials into finished goods, based on the normal
production capacity. The cost of production is allocated to joint
products using a ratio of spot prices by volume at each month end.
Separately identifiable costs of conversion of each metal are
specifically allocated.
Materials and supplies are valued at the lower of cost or net
realisable value. Any provision for obsolescence is determined by
reference to specific items of stock. A regular review is
undertaken to determine the extent of any provision for
obsolescence.
2.8 Assets under construction
All subsequent expenditure on the construction, installation or
completion of infrastructure facilities including mine plants and
other necessary works for mining, are capitalised in "Assets under
Construction". Any costs incurred in testing the assets to
determine if they are functioning as intended, are capitalised, net
of any proceeds received from selling any product produced while
testing. Where these proceeds exceed the cost of testing, any
excess is recognised in the statement of profit or loss and other
comprehensive income. After production starts, all assets included
in "Assets under Construction" are then transferred to the relevant
asset categories.
Once a project has been established as commercially viable,
related development expenditure is capitalised. A development
decision is made based upon consideration of project economics,
including future metal prices, reserves and resources, and
estimated operating and capital costs. Capitalisation of costs
incurred and proceeds received during the development phase ceases
when the property is capable of operating at levels intended by
management.
Capitalisation ceases when the mine is capable of commercial
production, with the exception of development costs which give rise
to a future benefit.
Pre-commissioning sales are offset against the cost of assets
under construction. No depreciation is recognised until the assets
are substantially complete and ready for productive use.
2.9 Property, plant and equipment
Property, plant and equipment are stated at historical cost less
accumulated depreciation and any accumulated impairment losses.
Subsequent costs are included in the assets' carrying amount or
recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item
will flow to the Group and the cost of the item can be measured
reliably. The carrying amount of the replaced part is derecognised.
All other repairs and maintenance are charged to the income
statement during the financial period in which they are
incurred.
Property, plant and equipment are depreciated to their estimated
residual value over the estimated useful life of the specific asset
concerned, or the estimated remaining life of the associated mine
("LOM"), field or lease. Depreciation commences when the asset is
available for use.
The major categories of property, plant and equipment are
depreciated/amortised on a Unit of Production ("UOP") and/or
straight-line basis as follows:
Buildings UOP
Mineral rights UOP
Deferred mining costs UOP
Plant and machinery UOP
Motor vehicles 5 years
Furniture/fixtures/office 5 - 10
equipment years
The assets' residual values and useful lives are reviewed, and
adjusted if appropriate, at the end of each reporting period.
An asset's carrying amount is written down immediately to its
recoverable amount if the asset's carrying amount is greater than
its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the
proceeds with the carrying amount and are recognised within "Other
(losses)/gains - net" in the income statement.
(a) Mineral rights
Mineral reserves and resources which can be reasonably valued
are recognised in the assessment of fair values on acquisition.
Mineral rights for which values cannot be reasonably determined are
not recognised. Exploitable mineral rights are amortised using the
UOP basis over the commercially recoverable reserves and, in
certain circumstances, other mineral resources. Mineral resources
are included in amortisation calculations where there is a high
degree of confidence that they will be extracted in an economic
manner.
(b) Deferred mining costs - stripping costs
Mainly comprises of certain capitalised costs related to
pre-production and in-production stripping activities as outlined
below.
Stripping costs incurred in the development phase of a mine (or
pit) before production commences are capitalised as part of the
cost of constructing the mine (or pit) and subsequently amortised
over the life of the mine (or pit) on a UOP basis.
In-production stripping costs related to accessing an
identifiable component of the ore body to realise benefits in the
form of improved access to ore to be mined in the future (stripping
activity asset), are capitalised within deferred mining costs
provided all the following conditions are met:
i. it is probable that the future economic benefit associated
with the stripping activity will be realised;
ii. the component of the ore body for which access has been improved can be identified and;
iii. the costs relating to the stripping activity associated
with the improved access can be reliably measured.
If all of the criteria are not met, the production stripping
costs are charged to the consolidated statement of income as they
are incurred.
The stripping activity asset is initially measured at cost,
which is the accumulation of costs directly incurred to perform the
stripping activity that improves access to the identified component
of ore, plus an allocation of directly attributable overhead
costs.
(c) Exploration costs
Under the Group's accounting policy, exploration expenditure is
not capitalised until the management determines a property will be
developed and point is reached at which there is a high degree of
confidence in the project's viability and it is considered probable
that future economic benefits will flow to the Group. A development
decision is made based upon consideration of project economics,
including future metal prices, reserves and resources, and
estimated operating and capital costs.
Subsequent recovery of the resulting carrying value depends on
successful development or sale of the undeveloped project. If a
project does not prove viable, all irrecoverable costs associated
with the project net of any related impairment provisions are
written off.
(d) Major maintenance and repairs
Expenditure on major maintenance refits or repairs comprises the
cost of replacement assets or parts of assets and overhaul costs.
Where an asset, or part of an asset, that was separately
depreciated and is now written off is replaced, and it is probable
that future economic benefits associated with the item will flow to
the Group through an extended life, the expenditure is
capitalised.
Where part of the asset was not separately considered as a
component and therefore not depreciated separately, the replacement
value is used to estimate the carrying amount of the replaced
asset(s) which is immediately written off. All other day-to-day
maintenance and repairs costs are expensed as incurred.
(e) Borrowing costs
Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or
sale (a qualifying asset) are capitalised as part of the cost of
the respective asset. Where funds are borrowed specifically to
finance a project, the amount capitalised represents the actual
borrowing costs incurred.
(f) Restoration, rehabilitation and decommissioning
Restoration, rehabilitation and decommissioning costs arising
from the installation of plant and other site preparation work,
discounted using a risk adjusted discount rate to their net present
value, are provided for and capitalised at the time such an
obligation arises.
The costs are charged to the consolidated statement of income
over the life of the operation through depreciation of the asset
and the unwinding of the discount on the provision. Costs for
restoration of subsequent site disturbance, which are created on an
ongoing basis during production, are provided for at their net
present values and charged to the consolidated statement of income
as extraction progresses.
Changes in the estimated timing of the rehabilitation or changes
to the estimated future costs are accounted for prospectively by
recognising an adjustment to the rehabilitation liability and a
corresponding adjustment to the asset to which it relates, provided
the reduction in the provision is not greater than the depreciated
capitalised cost of the related asset, in which case the
capitalised cost is reduced to zero and the remaining adjustment
recognised in the consolidated statement of income. In the case of
closed sites, changes to estimated costs are recognised immediately
in the consolidated statement of income.
2.10 Intangible assets
(a) Business combination and goodwill
Goodwill arises on the acquisition of subsidiaries and
represents the excess of the consideration transferred over the
acquired interest in net fair value of the net identifiable assets,
liabilities and contingent liabilities of the acquiree and the fair
value of the non-controlling interest in the acquiree.
The results of businesses acquired during the year are brought
into the consolidated financial statements from the effective date
of acquisition. The identifiable assets, liabilities and contingent
liabilities of a business which can be measured reliably are
recorded at their provisional fair values at the date of
acquisition. Provisional fair values are finalised within 12 months
of the acquisition date. Acquisition-related costs are expensed as
incurred.
Goodwill impairment reviews are undertaken annually or more
frequently if events or changes in circumstances indicate a
potential impairment. The carrying value of goodwill is compared to
the recoverable amount, which is the higher of value in use and the
fair value less costs to sell. Any impairment is recognised
immediately as an expense and is not subsequently reversed.
(b) Permits
Permits are capitalised as intangible assets which relate to
projects that are at the pre-development stage. No amortisation
charge is recognised in respect of these intangible assets. Once
the Group receives those permits, the intangible assets relating to
permits will be depreciated on a UOP basis.
Other intangible assets include computer software.
Intangible assets acquired separately are measured on initial
recognition at cost. The cost of intangible assets acquired in a
business combination is their fair value at the date of
acquisition. Following initial recognition, intangible assets are
carried at cost less any accumulated amortisation (calculated on a
straight-line basis over their useful lives) and accumulated
impairment losses, if any.
The useful lives of intangible assets are assessed as either
finite or indefinite.
Intangible assets with finite lives are amortised over their
useful economic lives and assessed for impairment whenever there is
an indication that the intangible asset may be impaired. The
amortisation period and the amortisation method for an intangible
asset with a finite useful life are reviewed at least at the end of
each reporting period.
Gains or losses arising from derecognition of an intangible
asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognised in
the consolidated and company statements of comprehensive income
when the asset is derecognised.
2.11 Impairment of non-financial assets
Assets that have an indefinite useful life - for example,
goodwill or intangible assets not ready to use - are not subject to
amortisation and are tested annually for impairment. Assets that
are subject to amortisation are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for
the amount by which the asset's carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an
asset's fair value less costs to sell and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash flows
(cash-generating units). Non-financial assets other than goodwill
that suffered impairment are reviewed for possible reversal of the
impairment at each reporting date.
2.12 Financial assets and liabilities
2.12.1 Classification
From 1 January 2018, the Group classifies its financial assets
in the following measurement categories:
-- those to be measured at amortised cost.
-- those to be measured subsequently at fair value through OCI, and.
-- those to be measured subsequently at fair value through profit or loss.
The classification depends on the Group's business model for
managing the financial assets and the contractual terms of the cash
flows.
The classification of financial assets at initial recognition
depends on the financial asset's contractual cash flow
characteristics and the Group's and the Company's business model
for managing them. In order for a financial asset to be classified
and measured at amortised cost, it needs to give rise to cash flows
that are 'solely payments of principal and interest' ('SPPI') on
the principal amount outstanding. This assessment is referred to as
the SPPI test and is performed at an instrument level.
For assets measured at fair value, gains and losses will either
be recorded in profit or loss or OCI. For investments in equity
instruments that are not held for trading, this will depend on
whether the group has made an irrevocable election at the time of
initial recognition to account for the equity investment at fair
value through other comprehensive income (FVOCI).
The Group reclassifies debt investments when and only when its
business model for managing those assets changes.
Regular way purchases and sales of financial assets are
recognised on trade-date, the date on which the Group commits to
purchase or sell the asset.
At initial recognition, the Group measures a financial asset at
its fair value plus, in the case of a financial asset not at fair
value through profit or loss (FVPL), transaction costs that are
directly attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at FVPL are expensed
in profit or loss.
Financial assets with embedded derivatives are considered in
their entirety when determining whether their cash flows are solely
payment of principal and interest.
Subsequent measurement of debt instruments depends on the
Group's business model for managing the asset and the cash flow
characteristics of the asset. There are three measurement
categories into which the Group classifies its debt
instruments:
2.12.2 Amortised cost
Assets that are held for collection of contractual cash flows
where those cash flows represent solely payments of principal and
interest are measured at amortised cost. Interest income from these
financial assets is included in finance income using the effective
interest rate method. Any gain or loss arising on derecognition is
recognised directly in profit or loss and presented in other
gains/(losses) together with foreign exchange gains and losses.
Impairment losses are presented as separate line item in the
statement of profit or loss.
The Group's financial assets at amortised cost include
receivables (other than trade receivables which are measured at
fair value through profit and loss) and cash and cash
equivalents.
The Company's financial assets at amortised cost include current
and non-current receivables (other than trade receivables which are
measured at fair value through profit and loss) and cash and cash
equivalents.
2.12.3 Fair value through other comprehensive income
Financial assets which are debt instruments, that are held for
collection of contractual cash flows and for selling the financial
assets, where the assets' cash flows represent solely payments of
principal and interest, are measured at FVOCI. Movements in the
carrying amount are taken through OCI, except for the recognition
of impairment gains or losses, interest income and foreign exchange
gains and losses which are recognised in profit or loss. When the
financial asset is derecognised, the cumulative gain or loss
previously recognised in OCI is reclassified from equity to profit
or loss and recognised in other gains/(losses). Interest income
from these financial assets is included in finance income using the
effective interest rate method. Foreign exchange gains and losses
are presented in other gains/(losses) and impairment expenses are
presented as separate line item in the statement of profit or
loss.
At transition to IFRS 9, the Group had certain financial asset
that were accounted for as debt instruments at fair value through
other comprehensive income; however, at the reporting date, no such
assets existed.
2.12.4 Equity instruments designated as fair value through other
comprehensive income
Upon initial recognition, the Group can elect to classify
irrevocably its equity investments as equity instruments designated
at fair value through OCI when they meet the definition of equity
under IAS 32 Financial Instruments: Presentation and are not held
for trading. The classification is determined on an
instrument-by-instrument basis.
Gains and losses on these financial assets are never recycled to
profit or loss. Dividends are recognised as other income in the
consolidated and company statements of comprehensive income when
the right of payment has been established, except when the Group
benefits from such proceeds as a recovery of part of the cost of
the financial asset, in which case, such gains are recorded in OCI.
Equity instruments designated at fair value through OCI are not
subject to impairment assessment.
The Group elected to classify irrevocably its listed equity
investments under this category.
2.12.5 Fair value through profit or loss
Assets that do not meet the criteria for amortised cost or FVOCI
are measured at FVPL. A gain or loss on a debt investment that is
subsequently measured at FVPL is recognised as profit or loss and
presented net within other gains/(losses) in the period in which it
arises.
Changes in the fair value of financial assets at FVPL are
recognised in other gains/(losses) in the consolidated and company
statements of comprehensive income as applicable.
2.12.6 De-recognition of financial assets
Financial assets are derecognised when the rights to receive
cash flows from the financial assets have expired or have been
transferred and the Group has transferred substantially all the
risks and rewards of ownership.
2.12.7 Impairment of financial assets
From 1 January 2018, the Group assesses on a forward looking
basis the expected credit losses associated with its debt
instruments carried at amortised cost and FVOCI. Expected credit
losses are based on the difference between the contractual cash
flows due in accordance with the contract and all the cash flows
that the Group expects to receive, discounted at an approximation
of the original effective interest rate. The expected cash flows
will include cash flows from the sale of collateral held or other
credit enhancements that are integral to the contractual terms.
For receivables (other than trade receivables which are measured
at FVPL), the Group applies the simplified approach permitted by
IFRS 9, which requires expected lifetime losses to be recognised
from initial recognition of the receivables.
2.13 Current versus Non-current Classification
The Group presents assets and liabilities in the consolidated
and company statements of financial position based on
current/non-current classification.
(a) An asset is current when it is either:
-- Expected to be realised or intended to be sold or consumed in normal operating cycle;
-- Held primarily for the purpose of trading;
-- Expected to be realised within 12 months after the reporting period
Or
-- Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least 12 months
after the reporting period
All other assets are classified as non-current.
(b) A liability is current when either:
-- It is expected to be settled in the normal operating cycle;
-- It is held primarily for the purpose of trading
-- It is due to be settled within 12 months after the reporting period
Or
-- There is no unconditional right to defer the settlement of
the liability for at least 12 months after the reporting period
The Group classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as
non-current assets and liabilities.
2.14 Cash and cash equivalents
In the consolidated and company statements of cash flows, cash
and cash equivalents includes cash in hand and in bank including
deposits held at call with banks, with a maturity of less than 3
months.
2.15 Provisions
Provisions for environmental restoration, restructuring costs
and legal claims are recognised when: the Group has a present legal
or constructive obligation as a result of past events; it is
probable that an outflow of resources will be required to settle
the obligation; and the amount has been reliably estimated.
Provisions are not recognised for future operating losses.
2.16 Interest-bearing loans and borrowings
Where there are a number of similar obligations, the likelihood
that an outflow will be required in settlement is determined by
considering the class of obligations as a whole. A provision is
recognised even if the likelihood of an outflow with respect to any
one item included in the same class of obligations may be small.
Provisions are measured at the present value of the expenditures
expected to be required to settle the obligation using a pre-tax
rate that reflects current market assessments of the time value of
money and the risks specific to the obligation. The increase in the
provision due to passage of time is recognised as interest
expense.
Borrowings are recognised initially at fair value, net of
transaction costs incurred. Borrowings are subsequently stated at
amortised cost. Any difference between the proceeds (net of
transaction costs) and the redemption value is recognised in profit
or loss over the period of the borrowings, using the effective
interest method, unless they are directly attributable to the
acquisition, construction or production of a qualifying asset, in
which case they are capitalised as part of the cost of that
asset.
Fees paid on the establishment of loan facilities are recognised
as transaction costs of the loan to the extent that it is probable
that some or all of the facility will be drawn down. In this case,
the fee is deferred until the draw-down occurs. To the extent there
is no evidence that it is probable that some or all of the facility
will be drawn down, the fee is capitalised as a prepayment and
amortised over the period of the facility to which it relates.
Borrowing costs are interest and other costs that the Group
incurs in connection with the borrowing of funds, including
interest on borrowings, amortisation of discounts or premium
relating to borrowings, amortisation of ancillary costs incurred in
connection with the arrangement of borrowings, finance lease
charges and exchange differences arising from foreign currency
borrowings to the extent that they are regarded as an adjustment to
interest costs.
Borrowing costs that are directly attributable to the
acquisition, construction or production of a qualifying asset,
being an asset that necessarily takes a substantial period of time
to get ready for its intended use or sale, are capitalised as part
of the cost of that asset, when it is probable that they will
result in future economic benefits to the Group and the costs can
be measured reliably.
Financial liabilities and trade payables
After initial recognition, interest-bearing loans and borrowings
and trade and other payables are subsequently measured at amortised
cost using the EIR method. Gains and losses are recognised in the
consolidated and company statements of comprehensive income when
the liabilities are derecognised, as well as through the EIR
amortisation process.
Amortised cost is calculated by taking any discount or premium
on acquisition and fees or costs that are an integral part of the
EIR, into account. The EIR amortisation is included as finance
costs in the consolidated and company statements of comprehensive
income
2.17 Deferred consideration
Deferred consideration arises when settlement of all or any part
of the cost of an agreement is deferred. It is stated at fair value
at the date of recognition, which is determined by discounting the
amount due to present value at that date. Interest is imputed on
the fair value of non-interest bearing deferred consideration at
the discount rate and expensed within interest pay able and similar
charges. At each balance sheet date deferred consideration
comprises the remaining deferred consideration valued at
acquisition plus interest imputed on such amounts from recognition
to the balance sheet date.
2.18 Share capital
Ordinary shares are classified as equity. The difference between
the fair value of the consideration received by the Company and the
nominal value of the share capital being issued is taken to the
share premium account.
Incremental costs directly attributable to the issue of new
ordinary shares are shown in equity as a deduction, net of tax,
from the proceeds in the share premium account.
2.19 Current and deferred income tax
The tax expense for the period comprises current and deferred
tax. Tax is recognised in the income statement, except to the
extent that it relates to items recognised in other comprehensive
income or directly in equity. In this case, the tax is also
recognised in other comprehensive income or directly in equity,
respectively.
The current income tax charge is calculated on the basis of the
tax laws enacted or substantively enacted at the end of the
reporting period date in the countries where the Company and its
subsidiaries operate and generate taxable income. Management
periodically evaluates positions taken in tax returns with respect
to situations in which applicable tax regulation is subject to
interpretation. It establishes provisions where appropriate on the
basis of amounts expected to be paid to the tax authorities.
Deferred income tax is recognised, using the liability method,
on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the consolidated
financial statements. However, deferred tax liabilities are not
recognised if they arise from the initial recognition of goodwill;
deferred income tax is also not recognised if it arises from
initial recognition of an asset or liability in a transaction other
than a business combination that at the time of the transaction
affects neither accounting nor taxable profit or loss. Income tax
is determined using tax rates (and laws) that have been enacted or
substantively enacted by the end of the reporting period date and
are expected to apply when the related deferred tax asset is
realised or the deferred income tax liability is settled. Deferred
tax assets are recognised only to the extent that it is probable
that future taxable profit will be available against which the
temporary differences can be utilised.
Deferred income tax is provided on temporary differences arising
on investments in subsidiaries and associates, except for deferred
income tax liabilities where the timing of the reversal of the
temporary difference is controlled by the Group and it is probable
that the temporary difference will not reverse in the foreseeable
future.
Deferred tax assets and liabilities are offset when there is a
legally enforceable right to offset current tax assets against
current tax liabilities and when the deferred income tax assets and
liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable
entities where there is an intention to settle the balances on a
net basis.
2.20 Share-based payments
The Group operates a share-based compensation plan, under which
the entity receives services from employees as consideration for
equity instruments (options) of the Group. The fair value of the
employee services received in exchange for the grant of the options
is recognised as an expense. The fair value is measured using the
Black Scholes pricing model. The inputs used in the model are based
on management's best estimates for the effects of
non-transferability, exercise restrictions and behavioural
considerations. Non-market performance and service conditions are
included in assumptions about the number of options that are
expected to vest.
Vesting conditions are: (i) the personnel should be an employee
that provides services to the Group; and (ii) should be in
continuous employment for the whole vesting period of 3 years.
Specific arrangements may exist with senior managers and board
members, whereby their options stay in use until the end.
The total expense is recognised over the vesting period, which
is the period over which all of the specified vesting conditions
are to be satisfied (Note 23).
2.21 Rehabilitation provisions
The Group records the present value of estimated costs of legal
and constructive obligations required to restore operating
locations in the period in which the obligation is incurred. The
nature of these restoration activities includes dismantling and
removing structures, rehabilitating mines and tailings dams,
dismantling operating facilities, closure of plant and waste sites
and restoration, reclamation and re-vegetation of affected areas.
The obligation generally arises when the asset is installed, or the
ground/environment is disturbed at the production location. When
the liability is initially recognised, the present value of the
estimated cost is capitalised by increasing the carrying amount of
the related mining assets to the extent that it was incurred prior
to the production of related ore. Over time, the discounted
liability is increased for the change in present value based on the
discount rates that reflect current market assessments and the
risks specific to the liability. The periodic unwinding of the
discount is recognised in the consolidated income statement as a
finance cost. Additional disturbances or changes in rehabilitation
costs will be recognised as additions or charges to the
corresponding assets and rehabilitation liability when they occur.
For closed sites, changes to estimated costs are recognised
immediately in the consolidated income statement.
The Group assesses its mine rehabilitation provision annually.
Significant estimates and assumptions are made in determining the
provision for mine rehabilitation as there are numerous factors
that will affect the ultimate liability payable. These factors
include estimates of the extent and costs of rehabilitation
activities, technological changes, regulatory changes and changes
in discount rates. Those uncertainties may result in future actual
expenditure differing from the amounts currently provided. The
provision at the consolidated statement of financial position date
represents management's best estimate of the present value of the
future rehabilitation costs required.
2.22 Leases
The determination of whether an arrangement is, or contains a
lease is based on the substance of the arrangement at inception
date including whether the fulfilment of the arrangement is
dependent on the use of a specific asset or assets or the
arrangement conveys a right to use the asset. A reassessment is
made after inception of the lease only if one of the following
applies:
a) There is a change in contractual terms, other than a renewal
or extension of the arrangement;
b) A renewal option is exercised or extension granted, unless
the term of the renewal or extension was initially included in the
lease term;
c) There is a change in the determination of whether fulfilment
is dependent on a specified asset; or
d) There is a substantial change to the asset.
Group as a lessee
The Group assesses at contract inception whether a contract is,
or contains, a lease. That is, if the contract conveys the right to
control the use of an identified asset for a period of time in
exchange for consideration.
Group as a lessee
The Group applies a single recognition and measurement approach
for all leases, except for short-term leases and leases of
low-value assets. The Group recognises lease liabilities to make
lease payments and right-of-use assets representing the right to
use the underlying assets.
2.23 Revenue recognition
(a) Revenue from contracts with customers
Atalaya is principally engaged in the business of producing
copper concentrate and in some instances, provides freight/shipping
services. Revenue from contracts with customers is recognised when
control of the goods or services is transferred to the customer at
an amount that reflects the consideration to which Atalaya expects
to be entitled in exchange for those goods or services. Atalaya has
concluded that it is the principal in its revenue contracts because
it controls the goods or services before transferring them to the
customer.
(b) Copper in concentrate (metal in concentrate) sales
For most copper in concentrate (metal in concentrate) sales, the
enforceable contract is each purchase order, which is an
individual, short-term contract. For the Group's metal in
concentrate sales not sold under CIF Incoterms, the performance
obligations are the delivery of the concentrate. A proportion of
the Group's metal in concentrate sales are sold under CIF
Incoterms, whereby the Group is also responsible for providing
freight services. In these situations, the freight services also
represent separate performance obligation (see paragraph (c)
below).
The majority of the Group's sales of metal in concentrate allow
for price adjustments based on the market price at the end of the
relevant QP stipulated in the contract. These are referred to as
provisional pricing arrangements and are such that the selling
price for metal in concentrate is based on prevailing spot prices
on a specified future date after shipment to the customer.
Adjustments to the sales price occur based on movements in quoted
market prices up to the end of the QP. The period between
provisional invoicing and the end of the QP can be between one and
three months.
Revenue is recognised when control passes to the customer, which
occurs at a point in time when the metal in concentrate is
physically transferred onto a vessel, train, conveyor or other
delivery mechanism. The revenue is measured at the amount to which
the Group expects to be entitled, being the estimate of the price
expected to be received at the end of the QP, i.e., the forward
price, and a corresponding trade receivable is recognised. For
those arrangements subject to CIF shipping terms, a portion of the
transaction price is allocated to the separate freight services
provided (See paragraph (c) below).
For these provisional pricing arrangements, any future changes
that occur over the QP are included within the provisionally priced
trade receivables and are, therefore, within the scope of IFRS 9
and not within the scope of IFRS 15. Given the exposure to the
commodity price, these provisionally priced trade receivables will
fail the cash flow characteristics test within IFRS 9 and will be
required to be measured at fair value through profit or loss up
from initial recognition and until the date of settlement. These
subsequent changes in fair value are recognised as part of revenue
in the statement of profit or loss and other comprehensive income
each period and disclosed separately from revenue from contracts
with customers as part of 'Fair value gains/losses on provisionally
priced trade receivables. Changes in fair value over, and until the
end of, the QP, are estimated by reference to updated forward
market prices for copper as well as taking other relevant fair
value considerations as set out in IFRS 13, into account, including
interest rate and credit risk adjustments.
Final settlement is based on quantities adjusted as required
following the inspection of the product by the customer as well as
applicable commodity prices. IFRS 15 requires that variable
consideration should only be recognised to the extent that it is
highly probable that a significant reversal in the amount of
cumulative revenue recognized will not occur. As the adjustments
relating to the final assay results for the quantity and quality of
concentrate sold are not significant, they do not constrain the
recognition of revenue.
(c) Freight services
As noted above, a proportion of the Group's metal in concentrate
sales are sold under CIF Incoterms, whereby the Group is
responsible for providing freight services (as principal) after the
date that the Group transfers control of the metal in concentrate
to its customers. The Group, therefore, has separate performance
obligation for freight services which are provided solely to
facilitate sale of the commodities it produces.
The revenue from freight services is a separate performance
obligation under IFRS 15 and therefore is recognised as the service
is provided, hence at year end a portion of revenue must be
deferred.
Other Incoterms commonly used by the Group are FOB, where the
Group has no responsibility for freight or insurance once control
of the products has passed at the loading port, Ex works where
control of the goods passes when the product is picked up at
seller's promises, and CIP where control of the goods passes when
the product is delivered to the agreed destination. For
arrangements which have these Incoterms, the only performance
obligations are the provision of the product at the point where
control passes.
(d) Sales of services
The Group sells services in relation to maintenance of
accounting records, management, technical, administrative support
and other services to other companies. Revenue is recognised in the
accounting period in which the services are rendered.
Contract assets
A contract asset is the right to consideration in exchange for
goods or services transferred to the customer. If the Group
performs by transferring goods or services to a customer before the
customer pays consideration or before payment is due, a contract
asset is recognised for the earned consideration that is
conditional. The Group does not have any contract assets as
performance and a right to consideration occurs within a short
period of time and all rights to consideration are
unconditional.
Contract liabilities
A contract liability is the obligation to transfer goods or
services to a customer for which the Group has received
consideration (or an amount of consideration is due) from the
customer. If a customer pays consideration before the Group
transfers goods or services to the customer, a contract liability
is recognised when the payment is made or the payment is due
(whichever is earlier). Contract liabilities are recognised as
revenue when the Group performs under the contract.
From time to time, the Group recognises contract liabilities in
relation to some metal in concentrate sales which are sold under
CIF Incoterms, whereby a portion of the cash may be received from
the customer before the freight services are provided.
2.24 Interest income
Interest income is recognised using the effective interest
method. When a loan and receivable is impaired, the Group and the
Company reduce the carrying amount to its recoverable amount, the
estimated future cash flow is discounted at the original effective
interest rate of the instrument and the discount continues
unwinding as interest income. Interest income on impaired loan and
receivables is recognised using the original effective interest
rate.
2.25 Dividend income
Dividend income is recognised when the right to receive payment
is established.
2.26 Dividend distribution
Dividend distributions to the Company's shareholders are
recognised as a liability in the Group's financial statements in
the period in which the dividends are approved by the Company's
shareholders. No dividend has been paid by the Company since its
incorporation.
2.27 Earnings per share
Basic earnings per share is calculated by dividing the net
profit for the year by the weighted average number of ordinary
shares outstanding during the year. The basic and diluted earnings
per share are the same as there are no instruments that have a
dilutive effect on earnings.
2.28 Comparatives
Where necessary, comparative figures have been adjusted to
conform to changes in presentation in the current year.
2.29 Amendment of financial statements after issue
The consolidated and company financial statements were
authorised for issue by the Board of Directors on 6 April 2020.
3. Financial Risk Management
3.1 Financial risk factors
The Group manages its exposure to key financial risks in
accordance with its financial risk management policy. The objective
of the policy is to support the delivery of the Group's financial
targets while protecting future financial security. The main risks
that could adversely affect the Group's financial assets,
liabilities or future cash flows are market risks comprising:
commodity price risk, interest rate risk and foreign currency risk;
liquidity risk and credit risk; operational risk, compliance risk
and litigation risk. Management reviews and agrees policies for
managing each of these risks that are summarised below.
The Group's senior management oversees the management of
financial risks. The Group's senior management is supported by the
AFRC that advises on financial risks and the appropriate financial
risk governance framework for the Group. The AFRC provides
assurance to the Group's senior management that the Group's
financial risk-taking activities are governed by appropriate
policies and procedures and that financial risks are identified,
measured and managed in accordance with the Group's policies and
risk objectives. Currently, the Group does not apply any form of
hedge accounting.
(a) Liquidity risk
Liquidity risk is the risk that arises when the maturity of
assets and liabilities does not match. An unmatched position
potentially enhances profitability but can also increase the risk
of losses. The Group has procedures with the object of minimising
such losses such as maintaining sufficient cash to meet liabilities
when due. Cash flow forecasting is performed in the operating
entities of the Group and aggregated by Group finance. Group
finance monitors rolling forecasts of the Group's liquidity
requirements to ensure it has sufficient cash to meet operational
needs.
The following tables detail the Group's remaining contractual
maturity for its financial liabilities. The tables have been drawn
up based on the undiscounted cash flows of financial liabilities
based on the earliest date on which the Group can be required to
pay. The table includes principal cash flows.
THE GROUP
Between
Carrying Contractual Less than Between 1 - 2 Between Over
(Euro 000's) amounts cash flows 3 months 3 - 12 months years 2 - 5 years 5 years
=============== =============== ========== =============== ======== ============= ===========
31 December
2019
Land options
and mortgages 282 282 11 271 - - -
Tax liability 2,507 2,507 - 2,507 - - -
Deferred
consideration 53,000 53,000 - - - 53,000 -
Trade and
other
payables 57,268 57,268 44,554 12,705 9 - -
=============== =============== ========== =============== ======== ============= ===========
113,057 113,057 44,565 15,483 9 53,000 -
=============== =============== ========== =============== ======== ============= ===========
31 December
2018
Land options
and mortgages 823 823 - 791 32 - -
Tax liability 1,945 1,945 - 1,945 - - -
Deferred
consideration 53,000 53,000 - - 53,000 - -
Trade and
other
payables 56,493 56,493 49,710 6,770 13 - -
=============== =============== ========== =============== ======== ============= ===========
112,261 112,261 49,710 9,506 53,045 - -
=============== =============== ========== =============== ======== ============= ===========
THE COMPANY
Between
Carrying Contractual Less than Between 1 - 2 Between Over
(Euro 000's) amounts cash flows 3 months 3 - 12 months years 2 - 5 years 5 years
============== ============== ========== =============== ======== ============= ===========
31 December
2019
Tax liability 1,865 1,865 - 1,865 - - -
Deferred
consideration 9,117 9,117 - - - 9,117 -
Trade and
other
payables 10,272 10,272 - 10,272 - - -
============== ============== ========== =============== ======== ============= ===========
21,254 21,254 - 12,137 - 9,117 -
============== ============== ========== =============== ======== ============= ===========
31 December
2018
Tax liability 1,524 1,524 - 1,524 - - -
Deferred
consideration 9,117 9,117 - - 9,117 - -
Trade and
other
payables 8,069 8,069 6,124 1,945 - - -
============== ============== ========== =============== ======== ============= ===========
18,710 18,710 6,124 3,469 9,117 - -
============== ============== ========== =============== ======== ============= ===========
(b) Currency risk
Currency risk is the risk that the value of financial
instruments will fluctuate due to changes in foreign exchange
rates.
Currency risk arises when future commercial transactions and
recognised assets and liabilities are denominated in a currency
that is not the Group's measurement currency. The Group is exposed
to foreign exchange risk arising from various currency exposures
primarily with respect to the US Dollar and the British Pound. The
Group's management monitors the exchange rate fluctuations on a
continuous basis and acts accordingly.
Foreign currency sensitivity
The following table demonstrates the sensitivity to a reasonably
possible change in the foreign exchange rate, with all other
variables held constant, of the Group's profit before tax due to
changes in the carrying value of monetary assets and liabilities at
reporting date:
Effect on profit before tax for the year ended Effect on profit before tax for the year ended
31 Dec 2019 increase/(decrease) 31 Dec 2018 increase/(decrease)
(Euro 000's)
================================================ =================================================
+5% 9,393 9,474
-5% (9,393) (9,474)
(c) Commodity price risk
Commodity price is the risk that the Group's future earnings
will be adversely impacted by changes in the market prices of
commodities, primarily copper. Management is aware of this impact
on its primary revenue stream but knows that there is little it can
do to influence the price earned apart from a hedging scheme.
Commodity price hedging is governed by the Group's policy which
allows to limit the exposure to prices. The Group may decide to
hedged part of its production during the year.
Commodity price sensitivity
The table below summarises the impact on profit before tax for
changes in commodity prices on the fair value of derivative
financial instruments and trade receivables (subject to provisional
pricing). The impact on equity is the same as the impact on profit
before income tax as these derivative financial instruments have
not been designated as hedges and are classified as
held-for-trading and are therefore fair valued through profit or
loss.
The analysis is based on the assumption that the copper prices
move $0.05/lb with all other variables held constant. Reasonably
possible movements in commodity prices were determined based on a
review of the last two years' historical prices.
Effect on profit before tax for the Effect on profit before tax for the
year ended 31 Dec 2019 year ended 31 Dec 2018
increase/(decrease) increase/(decrease)
===================================== =====================================
Eur 000's Eur 000's
Increase/(decrease) in copper prices
Increase $0.05/lb (2018: $0.05) 4,090 3,845
Decrease $0.05/lb (2018: $0.05) (4,090) (3,845)
(d) Credit risk
Credit risk arises when a failure by counterparties to discharge
their obligations could reduce the amount of future cash inflows
from financial assets on hand at the reporting date. The Group has
no significant concentration of credit risk. The Group has policies
in place to ensure that sales of products and services are made to
customers with an appropriate credit history and monitors on a
continuous basis the ageing profile of its receivables. The Group
has policies to limit the amount of credit exposure to any
financial institution.
Except as detailed in the following table, the carrying amount
of financial assets recorded in the financial statements, which is
net of impairment losses, represents the maximum credit exposure
without taking account of the value of any collateral obtained:
(Euro 000's) 2019 2018
====== ======
Unrestricted cash and cash equivalent at Group 1,730 24,357
Unrestricted cash and cash equivalent at operating entity 6,347 8,463
Restricted cash at the operating entity - 250
====== ======
Cash and cash equivalents 8,077 33,070
====== ======
Restricted cash as of 31 December 2018 has been reclassified to
non-current trade and other receivables in 2019, as the deposit is
considered to be long term (Note 19).
Besides of the above, there are no collaterals held in respect
of these financial instruments and there are no financial assets
that are past due or impaired as at 31 December 2019.
(e) Interest rate risk
Interest rate risk is the risk that the value of financial
instruments will fluctuate due to changes in market interest rates.
Borrowings issued at variable rates expose the Group to cash flow
interest rate risk. Borrowings issued at fixed rates expose the
Group to fair value interest rate risk. The Group's management
monitors the interest rate fluctuations on a continuous basis and
acts accordingly.
At the reporting date the interest rate profile of
interest--bearing financial instruments was:
(Euro 000's) 2019 2018
====== ======
Variable rate instruments
Financial assets 8,077 33,070
====== ======
An increase of 100 basis points in interest rates at 31 December
2019 would have increased / (decreased) equity and profit or loss
by the amounts shown below. This analysis assumes that all other
variables, in particular foreign currency rates, remain constant.
For a decrease of 100 basis points there would be an equal and
opposite impact on the profit and other equity.
Equity Profit or loss
(Euro 000's) 2019 2018 2019 2018
==== ===== ======== =======
Variable rate instruments 808 331 808 331
(f) Operational risk
Operational risk is the risk that derives from the deficiencies
relating to the Group's information technology and control systems
as well as the risk of human error and natural disasters. The
Group's systems are evaluated, maintained and upgraded
continuously.
(g) Compliance risk
Compliance risk is the risk of financial loss, including fines
and other penalties, which arises from non--compliance with laws
and regulations. The Group has systems in place to mitigate this
risk, including seeking advice from external legal and regulatory
advisors in each jurisdiction.
(h) Litigation risk
Litigation risk is the risk of financial loss, interruption of
the Group's operations or any other undesirable situation that
arises from the possibility of non--execution or violation of legal
contracts and consequentially of lawsuits. The risk is restricted
through the contracts used by the Group to execute its
operations.
3.2 Capital risk management
The Group considers its capital structure to consist of share
capital, share premium and share options reserve. The Group's
objectives when managing capital are to safeguard the Group's
ability to continue as a going concern in order to provide returns
for shareholders and benefits for other stakeholders and to
maintain an optimal capital structure to reduce the cost of
capital. The Group is not subject to any externally imposed capital
requirements.
In order to maintain or adjust the capital structure, the Group
issues new shares. The Group manages its capital to ensure that it
will be able to continue as a going concern while maximising the
return to shareholders through the optimisation of the debt and
equity balance. The AFRC reviews the capital structure on a
continuing basis.
The Group's objectives when managing capital are to safeguard
the Group's ability to continue as a going concern and to maintain
an optimal capital structure so as to maximise shareholder value.
In order to maintain or achieve an optimal capital structure, the
Group may adjust the amount of dividend payment, return capital to
shareholders, issue new shares, buy back issued shares, obtain new
borrowings or sell assets to reduce borrowings.
The Group monitors capital on the basis of the gearing ratio.
The gearing ratio is calculated as net debt divided by total
capital. Net debt is calculated as provisions plus deferred
consideration plus trade and other payables less cash and cash
equivalents.
(Euro 000's) 2019 2018
======== =======
Net debt(1) 117,774 85,710
Total equity 319,858 282,174
======== =======
Total capital 437,632 367,884
======== =======
Gearing ratio 26.9% 23.3%
-------- -------
(1) Net debt includes non-current and current liabilities net of
cash and cash equivalent.
The increase in the gearing ratio during 2019 was mainly due to
the undertaken impairments in the year which reduced the total
equity for the year 2019 and the impact of the leases resulting in
a debt increase.
3.3 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 and available--for--sale 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 and
company statement of financial position
The following table provides an analysis of financial
instruments that are measured subsequent to initial recognition at
fair value, Grouped into Levels 1 to 3 based on the degree to which
the fair value is observable.
-- Level 1 fair value measurements are those derived from quoted
prices (unadjusted) in active markets for identical assets or
liabilities.
-- Level 2 fair value measurements are those derived from inputs
other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices).
-- Level 3 fair value measurements are those derived from
valuation techniques that include inputs for the asset or liability
that are not based on observable market data (unobservable
inputs).
THE GROUP
(Euro 000's) Level 1 Level 2 Level 3 Total
31 December 2019
Other financial assets
Financial assets at FV through OCI 42 - 1,101 1,143
Trade and other receivables
Receivables (subject to provisional pricing) - 17,716 - 17,716
Total 42 17,716 1,101 18,859
======== ======== ======== =======
31 December 2018
Other financial assets
Financial assets at FV through OCI 71 - - 71
Trade and other receivables
Receivables (subject to provisional pricing) - 6,959 - 6,959
======== ======== ======== =======
Total 71 6,959 - 7,030
======== ======== ======== =======
THE COMPANY
(Euro 000's) Level 1 Level 2 Level 3 Total
31 December 2019
Non-current receivables
Financial assets at FV through profit and loss - - 229,686 229,686
Other current assets
Financial assets at FV through OCI 42 - - 42
Total 42 - 229,686 229,728
======== ======== ======== ========
31 December 2018
Non-current receivables
Financial assets at FV through profit and loss - - 215,308 215,308
Other current assets
Financial assets at FV through OCI 71 - - 71
======== ======== ======== ========
Total 71 - 215,308 215,379
======== ======== ======== ========
3.4 Critical accounting estimates and judgements
The preparation of the financial statements requires management
to make judgements, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities, and
the accompanying disclosures, and the disclosure of contingent
liabilities at the date of the consolidated financial statements.
Estimates and assumptions are continually evaluated and are based
on management's experience and other factors, including
expectations of future events that are believed to be reasonable
under the circumstances. Uncertainty about these assumptions and
estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected
in future periods.
In particular, the Group has identified a number of areas where
significant judgements, estimates and assumptions are required.
(a) Capitalisation of exploration and evaluation costs
Under the Group's accounting policy, exploration and evaluation
expenditure is not capitalised until the point is reached at which
there is a high degree of confidence in the project's viability and
it is considered probable that future economic benefits will flow
to the Group. Subsequent recovery of the resulting carrying value
depends on successful development or sale of the undeveloped
project. If a project proves to be unviable, all irrecoverable
costs associated with the project net of any related impairment
provisions are written off.
(b) Stripping costs
The Group incurs waste removal costs (stripping costs) during
the development and production phases of its surface mining
operations. Furthermore, during the production phase, stripping
costs are incurred in the production of inventory as well as in the
creation of future benefits by improving access and mining
flexibility in respect of the orebodies to be mined, the latter
being referred to as a stripping activity asset. Judgement is
required to distinguish between the development and production
activities at surface mining operations.
The Group is required to identify the separately identifiable
components or phases of the orebodies for each of its surface
mining operations. Judgement is required to identify and define
these components, and also to determine the expected volumes
(tonnes) of waste to be stripped and ore to be mined in each of
these components. These assessments may vary between mines because
the assessments are undertaken for each individual mine and are
based on a combination of information available in the mine plans,
specific characteristics of the orebody, the milestones relating to
major capital investment decisions and the type and grade of
minerals being mined.
Judgement is also required to identify a suitable production
measure that can be applied in the calculation and allocation of
production stripping costs between inventory and the stripping
activity asset. The Group considers the ratio of expected volume of
waste to be stripped for an expected volume of ore to be mined for
a specific component of the orebody, compared to the current period
ratio of actual volume of waste to the volume of ore to be the most
suitable measure of production.
These judgements and estimates are used to calculate and
allocate the production stripping costs to inventory and/or the
stripping activity asset(s). Furthermore, judgements and estimates
are also used to apply the units of production method in
determining the depreciable lives of the stripping activity
asset(s).
(c) Ore reserve and mineral resource estimates
The Group estimates its ore reserves and mineral resources based
on information compiled by appropriately qualified persons relating
to the geological and technical data on the size, depth, shape and
grade of the ore body and suitable production techniques and
recovery rates.
Such an analysis requires complex geological judgements to
interpret the data. The estimation of recoverable reserves is based
upon factors such as estimates of foreign exchange rates, commodity
prices, future capital requirements and production costs, along
with geological assumptions and judgements made in estimating the
size and grade of the ore body.
The Group uses qualified persons (as defined by the Canadian
Securities Administrators' National Instrument 43-101) to compile
this data. Changes in the judgments surrounding proven and probable
reserves may impact as follows:
-- The carrying value of exploration and evaluation assets, mine
properties, property, plant and equipment, and goodwill may be
affected due to changes in estimated future cash flows;
-- Depreciation and amortisation charges in the consolidated and
company statements of comprehensive income may change where such
charges are determined using the UOP method, or where the useful
life of the related assets change;
-- Capitalised stripping costs recognised in the statement of
financial position as either part of mine properties or inventory
or charged to profit or loss may change due to changes in stripping
ratios;
-- Provisions for rehabilitation and environmental provisions
may change where reserve estimate changes affect expectations about
when such activities will occur and the associated cost of these
activities;
-- The recognition and carrying value of deferred income tax
assets may change due to changes in the judgements regarding the
existence of such assets and in estimates of the likely recovery of
such assets.
(d) Impairment of assets
Events or changes in circumstances can give rise to significant
impairment charges or impairment reversals in a particular year.
The Group assesses each Cash Generating Unit ("CGU") annually to
determine whether any indications of impairment exist. If it was
necessary management could contract independent expert to value the
assets. Where an indicator of impairment exists, a formal estimate
of the recoverable amount is made, which is considered the higher
of the fair value less cost to sell and value-in-use. An impairment
loss is recognised immediately in net earnings. The Group has
determined that each mine location is a CGU.
These assessments require the use of estimates and assumptions
such as commodity prices, discount rates, future capital
requirements, exploration potential and operating performance. Fair
value is determined as the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. Fair value for
mineral assets is generally determined as the present value of
estimated future cash flows arising from the continued use of the
asset, which includes estimates such as the cost of future
expansion plans and eventual disposal, using assumptions that an
independent market participant may take into account. Cash flows
are discounted at an appropriate discount rate to determine the net
present value. For the purpose of calculating the impairment of any
asset, management regards an individual mine or works site as a
CGU.
Although management has made its best estimate of these factors,
it is possible that changes could occur in the near term that could
adversely affect management's estimate of the net cash flow to be
generated from its projects.
(e) Provisions for decommissioning and site restoration
costs
Accounting for restoration provisions requires management to
make estimates of the future costs the Group will incur to complete
the restoration and remediation work required to comply with
existing laws, regulations and agreements in place at each mining
operation and any environmental and social principles the Group is
in compliance with. The calculation of the present value of these
costs also includes assumptions regarding the timing of restoration
and remediation work, applicable risk-free interest rate for
discounting those future cash outflows, inflation and foreign
exchange rates and assumptions relating to probabilities of
alternative estimates of future cash outflows.
Management uses its judgement and experience to provide for and
(in the case of capitalised decommissioning costs) amortise these
estimated costs over the life of the mine. The ultimate cost of
decommissioning and timing is uncertain and cost estimates can vary
in response to many factors including changes to relevant
environmental laws and regulations requirements, the emergence of
new restoration techniques or experience at other mine sites. As a
result, there could be significant adjustments to the provisions
established which would affect
future financial results. Refer to Note 26 for further details.
(f) Income tax
Significant judgment is required in determining the provision
for income taxes. There are transactions and calculations for which
the ultimate tax determination is uncertain during the ordinary
course of business. The Group and Company recognise liabilities for
anticipated tax audit issues based on estimates of whether
additional taxes will be due. Where the final tax outcome of these
matters is different from the amounts that were initially recorded,
such differences will impact the income tax and deferred tax
provisions in the period in which such determination is made.
Judgement is also required to determine whether deferred tax
assets are recognised in the consolidated statements of financial
position. Deferred tax assets, including those arising from
unutilised tax losses, require the Group to assess the probability
that the Group will generate sufficient taxable earnings in future
periods, in order to utilise recognised deferred tax assets.
Assumptions about the generation of future taxable profits
depend on management's estimates of future cash flows. These
estimates of future taxable income are based on forecast cash flows
from operations (which are impacted by production and sales
volumes, commodity prices, reserves, operating costs, closure and
rehabilitation costs, capital expenditure, dividends and other
capital management transactions). To the extent that future cash
flows and taxable income differ significantly from estimates, the
ability of the Group to realise the net deferred tax assets could
be impacted.
In addition, future changes in tax laws in the jurisdictions in
which the Group operates could limit the ability of the Group to
obtain tax deductions in future periods.
(g) Inventory
Net realisable value tests are performed at each reporting date
and represent the estimated future sales price of the product the
entity expects to realise when the product is processed and sold,
less estimated costs to complete production and bring the product
to sale. Where the time value of money is material, these future
prices and costs to complete are discounted.
(h) Leases - Estimating the incremental borrowing rate
The Group cannot readily determine the interest rate implicit in
the lease, therefore, it uses its incremental borrowing rate (IBR)
to measure lease liabilities. The IBR is the rate of interest that
the Group would have to pay to borrow over a similar term, and with
a similar security, the funds necessary to obtain an asset of a
similar value to the right-of-use asset in a similar economic
environment. The IBR therefore reflects what the Group 'would have
to pay', which requires estimation when no observable rates are
available (such as for subsidiaries that do not enter into
financing transactions) or when they need to be adjusted to reflect
the terms and conditions of the lease (for example, when leases are
not in the subsidiary's functional currency). The Group estimates
the IBR using observable inputs (such as market interest rates)
when available and is required to make certain entity-specific
estimates (such as the subsidiary's stand-alone credit rating).
(h) Contingent liabilities
A contingent liability arises where a past event has taken place
for which the outcome will be confirmed only by the occurrence or
non-occurrence of one or more uncertain events outside of the
control of the Group, or a present obligation exists but is not
recognised because it is not probable that an outflow of resources
will be required to settle the obligation.
A provision is made when a loss to the Group is likely to
crystallise. The assessment of the existence of a contingency and
its likely outcome, particularly if it is considered that a
provision might be necessary, involves significant judgment taking
all relevant factors into account.
(i) Deferred consideration
As disclosed in Note 28, the Group has recorded a deferred
consideration liability in relation to the obligation to pay Astor
up to EUR53.0 million out of excess cash from operations at the
Proyecto Riotinto.
In 2018 the discount rate used to value the liability for the
deferred consideration was re-assessed to apply a risk free rate as
required by IAS 37. The discounted amount, when applying this
discount rate, was not considered significant and the Group has
measured the liability for the deferred consideration on an
undiscounted basis.
The actual timing of any payments to Astor of the consideration
involves significant judgment as it depends on certain factors
which are out of control of management.
(j) Share-based compensation benefits
Share based compensation benefits are accounted for in
accordance with the fair value recognition provisions of IFRS 2
"Share-based Payment". As such, share-based compensation expense
for equity-settled share-based payments is measured at the grant
date based on the fair value of the award and is recognised as an
expense over the vesting period. The fair value of such share-based
awards at the grant date is measured using the Black Scholes
pricing model. The inputs used in the model are based on
management's best estimates for the effects of non-transferability,
exercise restrictions, behavioural considerations and expected
volatility. Please refer to Note 23.
(k) Consolidation of Cobre San Rafael
Cobre San Rafael, S.L. is the entity which holds the mining
rights of Proyecto Touro. The Group controls Cobre San Rafael, S.L.
as it is exposed to variable returns from its involvement with the
subsidiary and has the ability to affect those returns through its
power over the subsidiary. The control is proven as: one of the two
Directors belongs to the Group and management of the financial
books and the capacity to appoint the key personnel is controlled
by Atalaya.
(l) Classification of financial assets
The Group and Company exercises judgement upon determining the
classification of its financial assets upon considering whether
contractual features including interest rate could significantly
affect future cash flows. Furthermore, judgment is required when
assessing whether compensation paid or received on early
termination of lending arrangements results in cash flows that are
not SPPI.
4. Business and geographical segments
Business segments
The Group has only one distinct business segment, that being
mining operations, which include mineral exploration and
development.
Copper concentrates produced by the Group are sold to three
offtakers as per the relevant offtake agreement (Note 30.3)
Geographical 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.
2019
(Euro 000's ) Cyprus Spain Other Total
========= ========== ======== ==========
Revenue 10,335 177,533 - 187,868
========= ========== ======== ==========
Earnings/(loss)before Interest, Tax, Depreciation and Amortisation 4,195 58,209 (1,071) 61,333
Depreciation/amortisation charge (1) (23,024) - (23,025)
Net foreign exchange gain/(loss) 126 224 - 350
Impairment of other receivables (1,694) - - (1,694)
Finance income 25 27 - 52
Finance cost (1) (88) - (89)
======== ==========
Profit/(loss) before tax 2,650 35,348 (1,071) 36,927
========= ========== ======== ==========
Tax (1,459) (4,748) - (6,207)
==========
Profit for the year 30,720
==========
Total assets 19,515 422,316 1,476 443,307
========= ========== ======== ==========
Total liabilities (13,823) (111,461) (567) (125,851)
========= ========== ======== ==========
Depreciation of property, plant and equipment 1 12,574 - 12,575
========= ========== ======== ==========
Amortisation of intangible assets - 3,502 - 3,502
========= ========== ======== ==========
Total additions of non-current assets 1 63,498 - 63,499
========= ========== ======== ==========
2018
(Euro 000's ) Cyprus Spain Other Total
========= ========== ======== ==========
Revenue 12,938 176,538 - 189,476
========= ========== ======== ==========
Earnings/(loss)before Interest, Tax, Depreciation and Amortisation 1,839 52,110 (407) 53,542
Depreciation/amortisation charge - (13,430) - (13,430)
Net foreign exchange gain/(loss) 999 615 (1) 1,613
Finance income 63 8 - 71
Finance cost (2) (251) - (253)
--------- ---------- -------- ----------
Profit/(loss) before tax 2,899 39,052 (408) 41,543
======== ==========
Tax (7,102)
========= ========== ======== ==========
Profit for the year 34,441
==========
Total assets 31,721 372,790 643 405,154
Total liabilities (13,672) (104,931) (177) (118,780)
========= ========== ======== ==========
Depreciation of property, plant and equipment - 10,143 - 10,143
========= ========== ======== ==========
Amortisation of intangible assets - 3,287 - 3,287
========= ========== ======== ==========
Total additions of non-current assets - 69,086 - 69,086
========= ========== ======== ==========
Revenue represents the sales value of goods supplied to
customers; net of value added tax. The following table summarises
sales to customers with whom transactions have individually
exceeded 10.0% of the Group's revenues.
(Euro 000's) 2019 2018
Segment EUR'000 Segment EUR'000
------------------------ ------- ------- -------
Offtaker 1 Copper 35,766 Copper 25,900
Offtaker 2 Copper 53,147 Copper 99,703
Offtaker 3 Copper 98,955 Copper 63,873
5. Revenue
THE GROUP
(Euro 000's ) 2019 2018
======== =======
Revenue from contracts with customers(1) 188,019 195,891
Fair value gain/losses relating to provisional pricing within sales (2) (152) (6,415)
======== =======
Total revenue 187,868 189,476
======== =======
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 2019 revenue there is a transaction price of
EUR0.2 million (EUR1.0 million in 2018) related to the freight
services provided by the Group to the customers arising from the
sales of copper concentrate under CIF incoterm.
(2) Provisional pricing impact represented the change in fair
value of the embedded derivative arising on sales of
concentrate.
THE COMPANY
(Euro 000's ) 2019 2018
====== =====
Sales of services to related companies (Note 30.3) 1,283 1,323
1,283 1,323
====== =====
6. Other income
THE GROUP
(Euro 000's ) 2019 2018
==== ====
Gain on disposal of associate 50 -
Release of prior year provision - 117
Other income 38 41
==== ====
88 158
==== ====
THE COMPANY
(Euro 000's ) 2019 2018
==== ====
Gain on disposal of associate 50 -
Release of prior year provision - 117
Sales of services to related parties (Note 30.3) 74 -
==== ====
124 117
==== ====
7. Expenses by nature
THE GROUP
(Euro 000's ) 2019 2018
========== =========
Operating costs 96,739 110,140
Care and maintenance expenditure 240 281
Exploration expenses 3,588 1,021
Employee benefit expense (Note 8) 20,153 17,248
Compensation of key management personnel 2,105 2,061
Auditors' remuneration - audit 215 196
* Other services 31 8
Other accountants' remuneration 152 85
Consultants' remuneration 1,026 881
Depreciation of property, plant and equipment
(Note 13) 12,575 10,143
Amortisation of intangible assets (Note 14) 3,502 3,287
Travel costs 371 329
Share option-based employee benefits 619 125
Shareholders' communication expense - 172
On-going listing costs 369 163
Legal costs 448 450
Public relations and communication development 567 640
Impairment of intangible assets (Note 14) 6,948 -
Impairment loss on other receivables (Note
19) 1,694 -
Other expenses and provisions - 2,292
========== =========
Total cost of operation, corporate, share based
benefits, care and maintenance,
and exploration expenses 151,342 149,522
========== =========
THE COMPANY
(Euro 000's ) 2019 2018
====== =====
Employee benefit expense (Note 8) 122 144
Key management remuneration 386 864
Auditors' remuneration - audit 116 102
* Other services 31 6
Other accountants' remuneration 134 80
Consultants' remuneration 159 114
Management fees (Note 30.3) 42 213
Travel costs 13 31
Shareholders' communication expense 181 172
On-going listing costs 188 163
Legal costs 420 423
Impairment loss on other receivables (Note
19) 1,694 -
Other expenses and provisions (252) 2,068
Total cost of corporate, share based benefits
and impairment 3,234 4,380
====== =====
8. Employee benefit expense
THE GROUP
(Euro 000's ) 2019 2018
======= ======
Wages and salaries 14,599 13,357
Social security and social contributions 4,997 3,622
Employees' other allowances 21 28
Bonus to employees 536 241
20,153 17,248
======= ======
The average number of employees and the number of employees at
year end by office are:
Average At year end
========== =============
Number of employees 2019 2018 2019 2018
==== ==== ====== =====
Spain - Full time 441 379 446 409
Spain - Part time 6 5 7 5
Cyprus - Full time 3 3 2 3
==== ==== ====== =====
Total 450 387 455 417
==== ==== ====== =====
THE COMPANY
(Euro 000's ) 2019 2018
==== ====
Wages and salaries 109 131
Social security and social contributions 13 13
122 144
==== ====
The average number of employees and the number of employees at
year end by office are:
Average At year end
========== =============
Number of employees 2019 2018 2019 2018
==== ==== ======= ====
Cyprus - Full time 3 3 - 3
==== ==== ======= ====
Total 3 3 - 3
==== ==== ======= ====
9. Finance income
THE GROUP
(Euro 000's ) 2019 2018
====== ====
Interest income 52 71
52 71
====== ====
THE COMPANY
(Euro 000's ) 2019 2018
========= ======
Interest income from interest-bearing intercompany
loans at fair value through profit and loss
(Note 30.3) 13,607 13,615
Interest income from interest-bearing intercompany
loans at amortised cost (Note 30.3) 3,198 2,506
Interest income 25 63
========= ======
16,830 16,184
========= ======
Interest income relates to interest received on bank
balances.
10. Finance costs
THE GROUP
(Euro 000's ) 2019 2018
==== ====
Interest expense:
Other interest 40 214
Interest expense on lease liabilities 8 -
Unwinding of discount on mine rehabilitation
provision (Note 26) 41 39
89 253
==== ====
11. Tax
THE GROUP
(Euro 000's ) 2019 2018
===== =====
Current income tax charge 5,158 4,899
(Over)/under provision previous years (302) -
Deferred tax related to utilization of losses
for the year (Note 17) 256 975
Deferred tax income relating to the origination
of temporary differences (Note 17) 874 1,020
Deferred tax expense relating to reversal of
temporary differences (Note 17) 221 208
6,207 7,102
===== =====
The tax on the Group's results before tax differs from the
theoretical amount that would arise using the applicable tax rates
as follows:
(Euro 000's ) 2019 2018
======== =======
Accounting profit before tax 36,927 41,543
======== =======
Tax calculated at the applicable tax rates
of the Company - 12.5% 4,616 5,193
Tax effect of expenses not deductible for tax
purposes 1,103 2,212
Tax effect of tax loss for the year 4,021 86
Tax effect of allowances and income not subject
to tax (7,123) (4,501)
Over provision for prior year taxes (302) -
Effect of higher tax rates in other jurisdictions
of the group 2,797 2,710
Tax effect of tax losses brought forward (256) (975)
Additional tax - 174
Deferred tax (Note 17) 1,351 2,203
Tax charge 6,207 7,102
======== =======
THE COMPANY
(Euro 000's ) 2019 2018
===== =====
Current income tax charge 1,152 1,524
(Over)/under provision previous years (274) -
878 1,524
===== =====
Tax losses carried forward
As at 31 December 2019, the Group had tax losses carried forward
amounting to EUR18.5 million from the Spanish subsidiary for the
period 2008 to 2015.
Cyprus
The corporation tax rate is 12.5%. Under certain conditions
interest income may be subject to defence contribution at the rate
of 30%. In such cases this interest will be exempt from corporation
tax. In certain cases, dividends received from abroad may be
subject to defence contribution at the rate of 17% for 2014 and
thereafter. Under current legislation, tax losses may be carried
forward and be set off against taxable income of the five
succeeding years.
Companies which do not distribute 70% of their profits after
tax, as defined by the relevant tax law, within two years after the
end of the relevant tax year, will be deemed to have distributed as
dividends 70% of these profits. Special contribution for defence at
20% for the tax years 2012 and 2013 and 17% for 2014 and thereafter
will be payable on such deemed dividends to the extent that the
shareholders (companies and individuals) are Cyprus tax residents
and Cyprus domiciled. The amount of deemed distribution is reduced
by any actual dividends paid out of the profits of the relevant
year at any time. This special contribution for defence is payable
by the Company for the account of the shareholders.
Spain
The corporation tax rate for 2019 and 2018 is 25%. The recent
Spanish tax reform approved in 2014 reduced the general corporation
tax rate from 30% to 28% in 2015 and to 25% in 2016, and
introduced, among other changes, a 10% reduction in the tax base
subject to equity increase and other requirements. Under current
legislation, tax losses may be carried forward and be set off
against taxable income with no limitation.
12. Earnings per share
The calculation of the basic and diluted earnings per share
attributable to the ordinary equity holders of the Company is based
on the following data:
(Euro 000's ) 2019 2018
======== ========
Parent company (3,997) (5,587)
Subsidiaries 41,320 40,302
======== ========
Profit attributable to equity holders of the parent 37,323 34,715
======== ========
Weighted number of ordinary shares for the purposes of basic earnings per share ('000) 137,339 136,755
======== ========
Basic profit per share (EUR cents/share) 27.2 25.4
======== ========
Weighted number of ordinary shares for the purposes of diluted earnings per share ('000) 139,236 138,110
========== ==========
Diluted profit per share (EUR cents/share) 26.8 25.1
========== ==========
At 31 December 2019, there are 2,505,250 options (Note 23) and
nil warrants (Note 22) (At 31 December 2018: 1,313,000 options and
nil warrants) which have been included when calculating the
weighted average number of shares for FY2019.
13. Property, plant and equipment
Right of use Deferred
Land and assets (6) Plant and Assets under mining Other assets
buildings equipment construction costs (3) (2) Total
(Euro 000's ) (4)
============= ============= =========== ============= ============ ============= ==========
2019
Cost
At 1 January 2019 45,853 6,144 152,820 62,010 27,537 785 295,149
Additions 210 277 1,171 48,737 6,476 1 56,872
Reclassifications - - 94,230 (5) (94,230) - - -
Disposals - - - - - (5) (5)
At 31 December
2019 46,063 6,421 248,221 16,517 34,013 781 352,016
============= ============= =========== ============= ============ ============= ==========
Depreciation
At 1 January 2019 6,072 - 20,315 - 4,681 561 31,629
Charge for the
year 2,185 391 8,557 - 1,380 62 12,575
Disposals - - - - - (3) (3)
At 31 December
2019 8,257 391 28,872 - 6,061 620 44,201
============= ============= =========== ============= ============ ============= ==========
Net book value at
31 December 2019 37,806 6,030 219,349 16,517 27,952 161 307,815
============= ============= =========== ============= ============ ============= ==========
2018
Cost
At 1 January 2018 40,995 - 145,402 11,445 22,317 785 220,944
Additions 4,858(1) - 2,324 55,659 5,220 - 68,061
Reclassifications - - 5,094 (5,094) - - -
At 31 December
2018 45,853 - 152,820 62,010 27,537 785 289,005
============= ============= =========== ============= ============ ============= ==========
Depreciation
At 1 January 2018 4,076 - 13,465 - 3,469 476 21,486
Charge for the
year 1,996 - 6,850 - 1,212 85 10,143
At 31 December
2018 6,072 - 20,315 - 4,681 561 31,629
============= ============= =========== ============= ============ ============= ==========
Net book value at
31 December 2018 39,781 - 132,505 62,010 22,856 224 257,376
============= ============= =========== ============= ============ ============= ==========
THE GROUP
(1) Mine rehabilitation assets and Rumbo Royalty Buyout. On 5
April 2018, the Company entered into an agreement with Rumbo to
purchase the whole royalty agreement for a total consideration of
US$4,750,000 to be paid through the issuance of 1,600,907 new
ordinary shares of GBP0.075 at a price of GBP2.118 per share. After
this transaction the share premium increased by EUR3,887,128. On 13
April 2018, the new ordinary shares were issued to Rumbo.
(2) Includes motor vehicles, furniture, fixtures and office
equipment which are depreciated over 5-10 years.
(3) Stripping costs
(4) Assets under construction at 31 December 2019 amounted to
EUR16.5 million (2018: EUR62.0 million). It includes the
capitalisation of costs related to the Expansion Project and
sustaining capital expenses.
(5) Transfers related to the completion of the Expansion Project
(circa. EUR90 million) and the Tailing Dam Project (circa. EUR4
million).
(6) See leases in Note 27.
The above fixed assets are mainly located in Spain.
THE COMPANY
Other
(Euro 000's ) assets (1) Total
=========== =======
2019
Cost
At 1 January 2019 15 15
Disposals - -
At 31 December 2019 15 15
=========== =======
Depreciation
At 1 January 2019 15 15
Charge for the year - -
At 31 December 2019 15 15
=========== =======
Net book value at 31 December 2019 - -
=========== =======
2018
Cost
At 1 January 2018 15 15
Disposals - -
At 31 December 2018 15 15
=========== =======
Depreciation
At 1 January 2018 15 15
Charge for the year - -
Disposals - -
At 31 December 2018 15 15
=========== =======
Net book value at 31 December 2018 - -
=========== =======
(1) Includes furniture, fixtures and office equipment which are
depreciated over 5-10 years.
The Group
In 2017 the BoD approved an Expansion Project to increase the
plant capacity to 15Mtpa. During 2019, the Expansion Project was
completed with the processing plant fully commissioned and
operating at an increased annualised rate of 15 Mtpa since January
2020.
During FY2019, the Group capitalised personnel costs amounting
to EUR953k (2018: EUR756k).
14. Intangible assets
The Group
Permits (1) Licences, R&D and
Software
(Euro 000's ) T otal
============ ================= ========
2019
Cost
On 1 January 2019 76,538 6,026 82,564
Additions - 5,449 5,449
Disposals - (3,865) (3,865)
At 31 December 2019 76,538 7,610 84,148
============ ================= ==========
Amortisation
On 1 January 2019 10,370 243 10,613
Charge for the year 3,438 64 3,502
Impairment charge (Note 7) - 6,948 6,948
At 31 December 2019 13,808 7,255 21,063
============ ================= ==========
Net book value at 31 December 2019 62,730 355 63,085
============ ================= ==========
2018
Cost
On 1 January 2018 76,521 4,505 81,026
Additions from acquisition of subsidiary 17 2,476 2,493
Additions - (955) (955)
At 31 December 2018 76,538 6,026 82,564
============ ================= ==========
Amortisation
On 1 January 2018 7,145 181 7,326
Charge for the year 3,225 62 3,287
At 31 December 2018 10,370 243 10,613
============ ================= ==========
Net book value at 31 December 2018 66,168 5,783 71,951
============ ================= ==========
(1) Permits include an amount of EUR5.0 million that relate to
the Proyecto Touro mining rights.
The useful life of the intangible assets is estimated to be not
less than fourteen years from the start of production (the revised
Reserves and Resources statement which was announced in July 2016
increased the life of mine to 16 1/2 years). In July 2018, the
Company announced an updated technical report on the mineral
resources and reserves of the Proyecto Riotinto. The Report
increased the open pit mineral reserves by 29% and stated the life
of mine as 13.8 years, considering the on-going expansion of the
processing plant.
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.
Atalaya assessed its assets concluding that there are no indicators
of impairment for Proyecto Riotinto as of 31 December 2019.
Management has decided to impair all the investment (EUR6,948k)
referred to exploration and other related expenses of Proyecto
Touro due to the existence of substantial evidence of impairment
based on the negative Environmental Impact Statement notified by
the Xunta de Galicia. Mining rights relating to Proyecto Touro
continue to be carried at their book value of EUR5.0 million in
Permits as their market value is considered to be in excess of the
carrying value.
Goodwill of EUR9,333,000 arose on the acquisition of the
remaining 49% of the issued share capital of Atalaya Riotinto
Minera S.L.U. back in September 2008. This amount was fully
impaired on acquisition, in the absence of the mining licence back
in 2008.
15. Investment in subsidiaries
(Euro 000's ) 2019 2018
====== ======
The Company
Opening amount at cost minus provision for impairment 3,899 3,693
Incorporation (1) - -
Increase of investment (2) 731 206
Disposal of investment (4) - -
Closing amount at cost less provision for impairment 4,630 3,899
====== ======
The subsidiaries of the Group, the percentage of equity owned
and the main country of operation are set out below. These
interests are consolidated within these financial statements.
Effective Effective
proportion of proportion of
Date of Principal Country of shares held in shares held in
Subsidiary incorporation/ activity incorporation 2019 (5) 2018 (5)
companies acquisition
================== =================== =================== ================== ================= =================
Atalaya Touro
(UK) Ltd(1) 10 March 2017 Holding United Kingdom 100% 100%
Atalaya
Minasderiotinto
Project (UK)
Ltd(2) 10 Sep 2008 Holding United Kingdom 100% 100%
EMED Marketing
Ltd 08 Sep 2008 Trading Cyprus 100% 100%
EMED Mining Spain
SLU(3) 12 April 2007 Exploration Spain 100% 100%
As security for the obligation on ARM to pay consideration to
Astor under the Master Agreement and the Loan Assignment Agreement,
Atalaya Minasderiotinto Project (UK) Ltd has granted pledges to
Astor Resources AG over the issued capital of ARM and granted a
pledge to Astor over the issued share capital of Eastern
Mediterranean Exploration and Development S.L.U. and the Company
has provided a parent company guarantee (Note 28).
(1) On 10 March 2017, Atalaya Touro (UK) Limited was
incorporated. Atalaya Mining Plc is its sole shareholder.
(2) During the year 2019 there was an increase amounting to
EUR731k in the investment mainly related to the employee benefit
expenses (2018: EUR206k).
(3) In December 2017, EMED Mining Spain S.L.U. increased its
capital by EUR300k from its sole shareholder. This investment
increase was fully impaired in the year.
(4) On 15 May 2018, the Group sold Eastern Mediterranean
Resources (Caucasus) Ltd., which was fully impaired, by
transferring all issued shares. Following the sale the Company
recognised a gain in the net amount of EUR117k as a result of the
release of a prior year provision in the amount of EUR250k relating
to the subsidiary's liabilities and the costs incurred of the sale
in the total cost of EUR133k (Note 6).
(5) The effective proportion of shares held as at 31 December
2019 and 2018 remained unchanged excluding Eastern Mediterranean
Resources (Caucasus) Ltd which was sold in 2018.
16. Investment in joint venture
Country of incorporation Effective proportion of
C ompany name Principal activities shares
held at 31 December 2015
============================= ============================= ========================== ============================
Exploitation of tailing dams
Recursos Cuenca Minera S.L. and waste areas resources Spain 50%
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 The Proyecto Riotinto. Under the
joint venture agreement, ARM will be the operator of the joint
venture and will reimburse Rumbo for the costs associated with the
application for classification of the Class B resources. ARM 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.
The Group's significant aggregate amounts in respect of the
joint venture are as follows:
(Euro 000's ) 2019 2018
====== =====
Intangible assets 94 94
Trade and other receivables 2 4
Cash and cash equivalents 21 22
Trade and other payables (115) (115)
====== =====
Net assets 2 5
====== =====
Revenue - -
Expenses - -
====== =====
Net loss after tax - -
====== =====
17. Deferred tax
Consolidated Consolidated
statement of income statement
financial position
(Euro 000's) 2019 2018 2019 2018
---------- ---------- -------- ----------
The Group
Deferred tax asset
At 1 January 7,927 10,130 - -
Deferred tax asset due to losses
available against future taxable - - - -
income (Note 11)
Deferred tax related to utilization
of losses for the year (Note
11) (256) (975) 256 975
Deferred tax asset due to losses
available against future taxable - - - -
income overprovision previous
years (Note 11)
Deferred tax income relating
to the origination of temporary
differences (Note 11) (874) (1,020) 874 1,020
Deferred tax expense relating
to reversal of temporary differences
(Note 11) (221) (208) 221 208
========== ==========
At 31 December 6,576 7,927
Deferred tax income (Note 11) 1,351 2,203
-------- ----------
Deferred tax assets are recognised for the carry-forward of
unused tax losses and unused tax credits to the extent that it is
probable that taxable profits will be available in the future
against which the unused tax losses/credits can be utilised.
In addition to recognised deferred income tax asset, the Group
has unrecognised tax losses in Cyprus that are available to carry
forward for 5 years against future taxable income of the Group
companies in which the losses arose, and in Spain EUR18.5 million
(2018: EUR24.9 million) which are available to carry forward
indefinitely against future profits. Deferred tax assets have not
been recognised in respect of losses in Cyprus as they may not be
used to offset taxable profits elsewhere in the Group, and due to
the uncertainty in profitability in the near future to support
(either partially or in full) the recognition of the losses as
deferred income tax assets.
18. Inventories
(Euro 000's ) 2019 2018
======= ======
The Group
Finished products 11,024 2,955
Materials and supplies 9,266 7,381
Work in progress 1,040 486
21,330 10,822
======= ======
As at 31 December 2019, copper concentrate produced and not sold
amounted to 14,201 tonnes (FY2018: 4,667 tonnes). Accordingly, the
inventory for copper concentrate was EUR11.0 million (FY2018:
EUR3.0 million). During the year 2019 the Group recorded cost of
sales amounting to EUR115.3 million (FY2018: EUR140.5 million).
Materials and supplies relate mainly to machinery spare parts.
Work in progress represents ore stockpiles, which is ore that has
been extracted and is available for further processing.
19. Trade and other receivables
(Euro 000's ) 2019 2018
========== =========
The Group
Non-current trade and other receivables
Deposits 500 249
500 249
========== =========
Current trade and other receivables
Trade receivables at fair value - subject
to provisional pricing 8,798 4,498
Trade receivables from shareholders at
fair value - subject to provisional pricing
(Note 30.5) 8,918 2,461
Other receivables from related parties
at amortised cost (Note 30.3) 56 56
Deposits 26 26
VAT receivable 14,380 13,691
Tax advances 7 1,208
Prepayments 616 688
Other current assets 56 1,060
========== =========
32,857 23,688
Allowance for expected credit losses - -
========== =========
Total trade and other receivables 33,357 23,937
========== =========
(Euro 000's ) 2019 2018
========== =========
The Company
Non-current trade and other receivables
Receivables from own subsidiaries at
amortised cost (Note 30.4) 80,316 74,796
Receivables from own subsidiaries at
fair value through profit and loss (Note
30.4) 229,686 215,308
310,002 290,104
========== =========
Current trade and other receivables
Deposits and prepayments - -
VAT receivable 47 161
Receivables from own subsidiaries at amortised
cost (Note 30.4) 3,996 6,328
Other receivables - 200
=============
Total current trade and other receivables 4,043 6,689
========== =============
Trade receivables are shown net of any interest applied to
prepayments. Payment terms are aligned with offtake agreements and
market standards and generally are 7 days on 90% of the invoice and
the remaining 10% at the settlement date which can vary between 1
to 5 months. The fair value of trade and other receivables
approximate their book values.
Increase in deposits relates to the restricted cash of EUR250k
reclassified from cash and cash equivalents (note 21) in
non-current deposits in 2019 since the deposit is considered to be
long term.
In 2018, the Company recognised EUR200k prepayment from an
option to acquire a portion of an investment on a company which
held mining rights of a land. In 2019, the Company signed an
agreement to acquire an option over a portion of investment in
another entity. The total amount paid in as prepayment for these
two investments in 2019 was EUR1,494k. After the exploration
processed performed by the Company on both lands, management
decided not to pursue with the execution of both options and
therefore to fully impaired the prepayments.
Set out below are the movements of the impairment:
(Euro 000's ) 2019 2018
======== ====
The GROUP
1 January 200 -
Additions 1,494 200
Impairment (1,694) -
At 31 December - 200
======== ====
20. Other Financial assets
The Group
(Euro 000's ) 2019 2018
====== ====
Financial asset at fair value through OCI
(see (a)) below) 1,143 71
Total current 42 71
====== ====
Total non-current 1,101 -
====== ====
THE COMPANY
(Euro 000's ) 2019 2018
===== ====
Financial asset at fair value through OCI
(see (a)) below) 42 71
Total current 42 71
===== ====
a) Financial asset at fair value through OCI
The Group
(Euro 000's ) 2019 2018
====== ====
At 1 January (1) 71 129
Additions (3) 1,101 -
Fair value change recorded in equity (Note
23) (29) (58)
Reversal of previously impaired 50 -
Disposals (2) (50) -
At 31 December 1,143 71
====== ====
THE COMPANY
(Euro 000's ) 2019 2018
===== ====
At 1 January (1) 71 129
Fair value change recorded in equity (Note
23) (29) (58)
Reversal of previously impaired 50 -
Disposals (2) (50) -
At 31 December 42 71
===== ====
Country Effective proportion
C ompany name Principal activities of incorporation of shares
held at 31 December
2019
===================== ======================== =================== ====================
Explotaciones
Gallegas del Cobre
SL Exploration company Spain 12.5%
Exploration and
development mining
KEFI Minerals company listed on
Plc AIM UK 1.80%
Prospech Limited Exploration company Australia 0.65%
(1) The Group decided to recognise changes in the fair value of
available-for-sale investments in Other Comprehensive Income
('OCI'), as explained in Note 2.12.
(2) On 20 March 2019, the Board of Directors approved the
disposal of the 10% free-carried investment of Atalaya in Eastern
Mediterranean Minerals (Cyprus) Limited, an exploration company
with interest in Cyprus.
(3) 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.
21. Cash and cash equivalents
The Group
(Euro 000's ) 2019 2018
===== ======
Cash at bank and in hand 8,077 33,070
===== ======
As at 31 December 2019, the Group's operating subsidiary held
EUR250k (FY2018: EUR250k) as a collateral for bank guarantees,
which has been reclassified as restricted cash (or deposit). In
2019 restricted cash were reclassified to non-current trade and
other receivables (Note 19) since the deposit is considered to be
long term.
Cash and cash equivalents denominated in the following
currencies:
(Euro 000's ) 2019 2018
------ ------
Euro - functional and presentation currency 2,059 7,649
Great Britain Pound 374 255
United States Dollar 5,644 25,166
====== ======
8,077 33,070
====== ======
The Company
(Euro 000's) 2019 2018
Cash at bank and on hand 128 826
==== ====
Cash and cash equivalents denominated in the following
currencies:
Euro - functional and presentation currency 97 774
Great Britain Pound 29 3
United States Dollar 2 49
==== ====
128 826
==== ====
22. Share capital
Nr. Share Share
Authorised of Shares capital Premium Total
'000' GBP GBP 000's GBP
s 000's 000's
Ordinary shares of GBP0.075
each 200,000 15,000 - 15,000
===========
Issued and fully paid
000's Euro Euro 000's Euro
000's 000's
1 January 2018 135,254 13,192 309,577 322,769
Issue Price (GBP) Details
Date
13 Feb Shares issued
2018 1.87 to Rumbo (a) 193 16 410 426
13 Feb Exercised share
2018 1.44 options (b) 29 3 45 48
13 April Rumbo buyout
2018 2.118 (c) 1,601 139 3,887 4,026
1 June Exercised warrants
2018 1.425 (d) 263 22 405 427
Costs of Issued
Shares - - (5) (5)
31 December 2018/1
January 2019 137,340 13,372 314,319 327,691
31 December 2019 137,340 13,372 314,319 327,691
Authorised capital
The Company's authorised share capital is 200,000,000 ordinary
shares of GBP0.075 each.
Issued capital
FY2019
No issuances during the twelve months period ended 31 December
2019.
FY2018
a) On 13 February 2018, the Company issued 192,540 new ordinary
shares of GBP0.075 to Rumbo at a price of GBP1.867, thus creating a
share premium of EUR410,146.
b) On 13 February 2018, the Company was notified that certain
employees exercised options over 29,000 ordinary shares of GBP0.075
at a price of GBP1.44, thus creating a share premium of
EUR44,576.
c) On 5 April 2018, the Company entered into an agreement with
Rumbo to purchase the whole royalty agreement for a total
consideration of US$4,750,000 to be paid through the issuance of
1,600,907 new ordinary shares of GBP0.075 at a price of GBP2.118
per share. After this transaction the share premium increased by
EUR3,887,128. On 13 April 2018, the new ordinary shares were issued
to Rumbo.
d) On 1 June 2018, 262,569 warrants were exercised at GBP1.425
per ordinary share. Hence, 262,569 new ordinary shares of GBP0.075
were issued, thus creating a share premium of EUR405,087.
Warrants
The Company has issued warrants to advisers to the Group.
Warrants expired three years after the grant date and had exercise
price GBP1.425. At 31 December 2019 there are nil warrants.
On 1 June 2018, all warrants were exercised.
Details of share warrants at 31 December 2018:
Number of warrants
Outstanding warrants at 1 January 2018 262,569
- Exercised during the reporting period (262,569)
Outstanding warrants at 31 December 2018 -
On 1 June 2018, the Company received notification for the
exercise of warrants over 262,569 ordinary shares of GBP0.075 in
the Company at an exercise price of GBP1.425 per share. As a
result, the Company received proceeds of GBP374,160.83 (as (d))
above).
23. Other reserves
THE GROUP
(Euro 000's
) Fair
value
reserve
of financial
assets Non-distributable Distributable
Depletion at FVOCI reserve reserve
Share Bonus factor (2) (3) (4)
option share (1) Total
At 1 January
2018 6,536 208 450 (1,057) - - 6,137
Recognition
of depletion
factor - - 5,050 - - - 5,050
Recognition
of non-distributable
reserve - - - - 1,446 - 1,446
Recognition
of share
based payments 216 - - - - - 216
Change in
fair value
of financial
assets at
fair value
through OCI
(Note 20) - - - (58) - - (58)
At 31 December
2018 6,752 208 5,500 (1,115) 1,446 - 12,791
----------- --------------
Recognition
of depletion
factor - - 5,378 - - - 5,378
Recognition
of non-distributable
reserve - - - - 1,984 - 1,984
Recognition
of distributable
reserve - - - - - 1,844 1,844
Recognition
of share
based payments 619 - - - - - 619
Change in
fair value
of financial
assets at
fair value
through OCI
(Note 20) - - - (29) - - (29)
Other changes
in reserves - - - - - 249 249
At 31 December
2019 7,371 208 10,878 (1,144) 3,430 2,093 22,836
the Company
Fair value
reserve of
financial
(Euro 000's ) Share Bonus assets at
option share FVOCI (2) Total
At 1 January 2018 6,536 208 (1,057) 5,687
Recognition of share based
payments 216 - - 216
Change in fair value of
financial assets at fair
value through OCI (Note
20) - - (58) (58)
At 31 December 2018 6,752 208 (1,115) 5,845
Adjustment for initial - - - -
application of IFRS 9
Recognition of share based
payments 619 - - 619
Change in fair value of
financial assets at fair
value through OCI (Note
20) - - (29) (29)
=======
At 31 December 2019 7,371 208 (1,144) 6,435
=======
(1) Depletion factor reserve
During the twelve month period ended 31 December 2019, the Group
has disposed EUR5.4 million (FY2018: EUR5.0 million) as a depletion
factor reserve as per the Spanish Corporate Tax Act.
(2) Fair value reserve of financial assets at FVOCI
The Group decided to recognise changes in the fair value of
certain investments in equity securities in OCI. These changes are
accumulated within the FVOCI reserve under equity. The Group
transfers amounts from this reserve to retained earnings when the
relevant equity securities are derecognised.
(3) Non-distributable reserve
As required by the Spanish Corporate Tax Act, the Group
classified a non-distributable reserve of 10% of the profits
generated by the Spanish subsidiaries until the reserve is 20% of
share capital of the subsidiary.
(4) Distributable reserve
As result of the 2018 profit generated in ARM, the Group decided
to record a distributable reserve in order to comply with the
Spanish Corporate Tax Act.
Details of share options outstanding as at 31 December 2019:
Grant date Expiry date Exercise price GBP Share options
23 Feb 2017 22 Feb 2022 1.44 813,000
29 May 2019 28-May-2024 2.015 1,292,250
8 July 2019 7 July 2024 2.045 400,000
Total 2,505,250
Weighted average
exercise price GBP Share options
At 1 January 2019 2.19 1,313,000
Granted during the reporting period 2.015 1,500,000
Granted during the reporting period 2.045 400,000
Less options cancelled during the year 2.015 (707,750)
31 December 2019 2.08 2,505,250
On 13 February 2018, the Company was notified that certain
employees exercised options over 29,000 ordinary shares of GBP0.075
at a price of GBP1.44 (Note 22 (b)).
On 30 May 2019, the Company announced a grant of 1,500,000 share
options (the "Options") to Persons Discharging Managerial
Responsibilities ("PDMRs") and management, in accordance with the
Company's approved Share Option Plan 2013 (the "Option Plan"). The
Options expire five years from the date of grant (29 May 2019),
have an exercise price of 201.5 pence per ordinary share, based on
the minimum share price in the five days preceding the grant date,
and vest in two equal tranches, half on grant and half on the first
anniversary of the granting date.
On 10 July 2019, the Company announced a grant of 400,000 share
options (the "Options") to Person Discharging Managerial
Responsibilities ("PDMRs") in accordance with the Company's
approved Share Option Plan 2013 (the "Option Plan"). The Options
expire five years from the date of grant (8 July 2019), have an
exercise price of 204.5 pence per ordinary share, based on the
minimum share price in the five days preceding the grant date, and
vest in two equal tranches, half on grant and half on the first
anniversary of the granting date.
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 sub division or consolidation of the ordinary
shares, a reduction of share capital and offers or invitations
(whether by way of rights issue or otherwise) to the holders of
ordinary shares.
The estimated fair values of the options were calculated using
the Black Scholes option pricing model. The inputs into the model
and the results are as follows:
Weighted Weighted Estimated
average average Expected Risk Expected Fair
Grant share price exercise Expected life Free dividend Value
Date GBP price GBP volatility (years) rate yield GBP
23 Feb 2017 1.440 1.440 51.8% 5 0.6% Nil 0.666
29 May 2019 2.015 2.015 46.9% 5 0.8% Nil 0.66
8 July 2019 2.045 2.045 46.9% 5 0.8% Nil 0.66
The volatility has been estimated based on the underlying
volatility of the price of the Company's shares in the preceding
twelve months.
24. Non-controlling interest
(Euro 000's ) 2019 2018
Opening balance 4,200 4,474
On acquisition of a subsidiary - -
Share of results for the year (6,602) (274)
Closing balance (2,402) 4,200
The Group has a 10% interest in Cobre San Rafael, S.L. acquired
in July 2017 while the remaining 90% is held by a non-controlling
interest (Note 2.3 (b) ( 1)). The significant financial information
with respect to the subsidiary before intercompany eliminations as
at and for the year ended 31 December 2019 is as follows:
(Euro 000's ) 2019 2018
Non-current assets 5,096 7,024
Current assets 580 456
Non-current liabilities - -
Current liabilities 8,345 2,813
Equity (2,669) 4,667
Revenue - -
Loss for the year and total comprehensive income (7,336) (304)
Cobre San Rafael, S.L. was established on 13 June 2016.
* 10% interest in Cobre San Rafael, S.L. was acquired by the
Group in July 2017.
25. Trade and other payables
THE GROUP
(Euro 000's ) 2019 2018
Non-current trade and other payables
Land options - 32
Government grant 13 13
13 45
Current trade and other payables
Trade payables 52,395 53,098
Land options and mortgage 282 791
Accruals 4,860 3,382
57,537 57,271
THE COMPANY
(Euro 000's ) 2019 2018
Current trade and other payables
Accruals 1,744 2,200
Payable to own subsidiaries (Note 30.4) 8,507 5,851
Other 21 18
10,272 8,069
Trade payables are mainly for the acquisition of materials,
supplies and other services. These payables do not accrue interest
and no guarantees have been granted. The fair value of trade and
other payables approximate their book values.
The Group's exposure to currency and liquidity risk related to
liabilities is disclosed in Note 3.
Trade payables are non-interest-bearing and are normally settled
on 60-day terms.
26. Provisions
THE GROUP
(Euro 000's ) Legal Rehabilitation Total
1 January 2018 213 5,514 5,727
Additions 6 972 978
Revision of provision (92) (133) (225)
Finance cost (Note 10) - 39 39
31 December 2018/1 January 2019 127 6,392 6,519
Additions 284 138 422
Revision of provision (23) (18) (41)
Finance cost (Note 10) - 41 41
31 December 2019 388 6,553 6,941
(Euro 000's ) 2019 2018
Non-Current 6,941 6,519
Current - -
Total 6,941 6,519
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 31 December 2019 was 1.87%, which is
the 15-year Spain Government Bond rate (2018: 1.87%). An inflation
rate of 1.5% is applied on annual basis.
The expected payments for the rehabilitation work are as
follows:
(Euro 000's) Between Between Between
1 - 5 Years 6 - 10 Years 10 - 15 Years
Expected payments for rehabilitation of the mining site 401 2,069 4,083
Legal provision
The Group has been named as defendant in several legal actions
in Spain, the outcome of which is not determinable as at 31
December 2019. Management has reviewed individually each case and
made a provision of EUR388k (EUR127k in 2018) for these claims,
which has been reflected in these consolidated financial
statements. (Note 32)
27. Leases
(Euro 000's) 31 Dec 2019 31 Dec 2018
Non-current
Leases 5,265 -
5,265 -
Current
Leases 588 -
588 -
Finance leases
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 (Note 2.2). The
Group has elected not to recognise right-of-use assets and lease
liabilities for short-term leases that have a lease term of 12
months or less and leases of low-value assets. Depreciation expense
regarding leases amounts to EUR0.3 million (2018: EURnil) for the
twelve month period ended 31 December 2019. 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 31 December 2019, the remaining term of this lease is twelve
years. (Note 2)
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 31 December
2019, the remaining term of this motor vehicle and laboratory
equipment lease is three years and three and half years
respectively.
(Euro 000's) 31 Dec 2019 31 Dec
2018
Minimum lease payments due:
* Within one year 588 -
* Two to five years 2,134 -
* Over five years 3,131 -
Less future finance charges - -
Present value of minimum lease payments
due 5,853 -
Present value of minimum lease payments
due:
* Within one year 588 -
* Two to five years 2,134 -
* Over five years 3,131 -
5,853 -
(Euro 000's) Lease liability
Balance 1 January 2019 6,144
Additions 277
Interest expense 8
Lease payments (576)
Balance at 31 Dec 2019 5,853
Balance at 31 Dec 2019
* Non-current liabilities 5,265
* Current liabilities 588
5,853
28. 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". A
preliminary hearing is due to take place on 22 May 2020. As and
when a substantive hearing takes place, the Company expects to have
clarity on the definition of Excess Cash and the payment schedule
of the Deferred Consideration and the Loan Assignment.
As at 31 December 2019, no consideration has been paid.
The amount of the liability recognised by the Group and Company
is EUR53 million (EUR43.9 million + EUR9.1 million) and EUR9.1
million respectively. The effect of discounting remains
insignificant, in line with prior year's assessment, and therefore
the Group has measured the liability for the Astor deferred
consideration on an undiscounted basis.
29. Acquisition, incorporation and disposals of subsidiaries
2019
Acquisition and incorporation of subsidiaries
There were no acquisition nor incorporation of subsidiaries
during the year.
Disposals of subsidiaries
There were no disposals of subsidiaries during the year.
2018
Acquisition and incorporation of subsidiaries
There were no acquisition nor incorporation of subsidiaries
during the year.
Disposals of subsidiaries
On 15 May 2018, the Group sold Eastern Mediterranean Resources
(Caucasus) Ltd. which was fully impaired, by transferring all
issued shares. The net effect of the gain in the income statement
arose from the release of the prior year provision of EUR250k
(Georgian Tax liability). The total costs for the sale were EUR75k,
paid to the buyer in addition to EUR58k relating consulting costs
(Note 6).
Wind-up of subsidiaries
There were no operations wound-up during FY2019 and FY2018.
30. Group information and related party disclosures
30.1 Information about subsidiaries
These audited consolidated financial statements include:
Effective proportion
of shares held
Parent Principal activity Country of
Subsidiary companies incorporation
Atalaya Touro (UK) Ltd Atalaya Mining Plc Holding United Kingdom 100%
Atalaya
MinasdeRiotinto
Project (UK) Limited Atalaya Mining Plc Holding United Kingdom 100%
EMED Marketing Ltd Atalaya Mining Plc Trading Cyprus 100%
EMED Mining Spain
S.L.U. Atalaya Mining Plc Exploration Spain 100%
Atalaya
Atalaya Riotinto MinasdeRiotinto
Minera S.L.U. Project (UK) Limited Production Spain 100%
Eastern Mediterranean Atalaya
Exploration and MinasdeRiotinto
Development S.L.U. Project (UK) Limited Exploration Spain 100%
Cobre San Rafael, S.L. Atalaya Touro (UK)
(1) Limited Exploration Spain 10%
Recursos Cuenca Minera Atalaya Riotinto Exploration Spain J-V
S.L.U. Minera SLU
Fundacion Atalaya Atalaya Riotinto
Riotinto Minera SLU Trust Spain 100%
Atalaya
Atalaya Servicios MinasdeRiotinto
Mineros, S.L.U. Project (UK) Limited Dormant Spain 100%
(1) Cobre San Rafael, S.L. is the entity which holds the mining
rights of The Proyecto Touro. The Group has control in the
management of Cobre San Rafael, S.L., including one of the two
Directors, management of the financial books and the capacity of
appointment the key personnel (Note 2.3 (b) (1)).
The following transactions were carried out with related
parties:
30.2 Compensation of key management personnel
The total remuneration and fees of Directors (including
executive Directors) and other key management personnel was as
follows:
The Group The Company
(Euro 000's ) 2019 2018 2019 2018
Directors' remuneration and fees 1,319 922 536 454
Director's bonus (1) 325 280 - -
Share option-based benefits to
Directors 173 39 - -
Key management personnel fees 765 462 - 116
Key management bonus (1) 740 235 - 150
Share option-based and other benefits
to key management personnel 267 88 - 10
======
3,589 2,026 536 730
======
(1) These amounts related to the approved performance bonus for
2018 by the Board of Directors following the proposal of the CGNC
Committee. The 2019 estimates recorded are not included in the
table above as this is yet to be approved by the Board of
Directors. There is no certainty or guarantee that the Board of
Directors will approve a similar amount for 2019 performance.
At 31 December 2019 amounts due to Directors, as from the Group,
are EURnil (EUR0.5 million at 31 December 2018) and EUR0.5 million
(EUR0.3 million at 31 December 2018) to key management.
At 31 December 2019 amounts due to Directors, as from the
Company, are EURnil (EURnil at 31 December 2018) and EURnil (EUR0.2
million at 31 December 2018) to key management.
Share-based benefits
In 2019, the Directors and key management personnel have granted
1,650,000 options (2018: nil options) (see note 23).
During 2019 the Directors and key management personnel have not
been granted any bonus shares (2018: nil).
30.3 Transactions with shareholders and related parties
THE GROUP
(Euro 000's ) 2019 2018
Trafigura- Revenue from contracts 33,179 26,234
Freight services - -
33,179 26,234
Gains/(losses) relating provisional pricing
within sales 2,587 (334)
Trafigura - Total revenue from contracts 35,766 25,900
35,766 25,900
THE COMPANY
(Euro 000's ) 2019 2018
Sales of services (Note 5):
* EMED Marketing Limited 690 749
* Atalaya MinasdeRiotinto Project (UK) Limited 593 574
======
1,283 1,323
======
Other income services (Note 6):
* EMED Marketing Limited 74 -
Purchase of services (Note 7):
* Atalaya Riotinto Minera SLU 42 213
Finance income (Note 9):
Atalaya MinasdeRiotinto Project (UK) Limited
- Finance income from interest-bearing loan
:
* Credit agreement - at amortised cost 1,644 1,760
* Participative loan - at fair value through profit and
loss 13,607 13,615
* Credit facility - at amortised cost 1,554 746
16,805 16,121
======
THE GROUP
(Euro 000's ) 2019 2018
Current assets - Receivable from related
parties (Note 19):
Recursos Cuenca Minera S.L. 56 56
56 56
The above balances bear no interest and are repayable on
demand.
30.4 Year-end balances with related parties
THE COMPANY
(Euro 000's ) 2019 2018
Non-current assets - Loan from related parties
at FV through profit and loss (Note 19):
Atalaya MinasdeRiotinto Project (UK) Limited
- Participative Loan (1) 229,686 215,308
Total (5) 290,104 - 229,686 215,308
Non-current assets - Loans and receivables
from related parties at amortised cost (Note
19):
Atalaya MinasdeRiotinto Project (UK) Limited
- Credit Expansion Loan (2) 43,591 38,743
Atalaya MinasdeRiotinto Project (UK) Limited
- Credit agreement (3) 26,442 24,798
Atalaya Riotinto Minera SLU (4) 9,117 9,117
EMED Marketing Limited (4) - 1,563
Atalaya MinasdeRiotinto Project (UK) Limited
(4) 1,166 575
Total (5) 80,316 74,796
Current assets - Loans and receivables from
related parties at amortised cost (Note 19):
Atalaya MinasdeRiotinto Project (UK) Limited
(4) - 5,230
Atalaya MinasdeRiotinto Project (UK) Limited - -
- Credit agreement (3)
Atalaya Riotinto Minera SLU (4) - -
Atalaya Touro (UK) Limited (4) 1,611 1,098
EMED Mining Spain SL (4) - -
EMED Marketing Limited (4) 2,385 -
Total (5) 3,996 6,328
(1) This balance bears interest of 6.75% (2018: 6.75%).
(2) This balance bears interest of EURIBOR 6m plus 4% (2018:
LIBOR 6month + 3.25% ).
(3) This balance bears interest of EURIBOR 12month plus 4%
(2018: nil). The Note Facility Agreement expired on 29 September
2019. The Group signed on 30 September 2019 a new Credit Agreement
for the amount due of the Note Facility Agreement bearing a EURIBOR
12month plus 4% interest and maturing on 30 September 2024
(4) These receivables bear no interest These balances are
repayable on demand. However, management will not claim any
repayment in the following twelve months period after the release
of the current consolidated financial statements.
THE COMPANY
(Euro 000's ) 2019 2018
Payable to related party (Note 25):
EMED Marketing Limited 7,990 5,376
EMED Mining Spain S.L. 262 262
Atalaya Riotinto Minera SLU 255 213
8,507 5,851
The above balances bear no interest and are repayable on
demand.
30.5 Year-end balances with shareholders
(Euro 000's ) 2019 2018
Receivable from shareholders (Note 19):
Trafigura - Debtor balance -subject to
provisional pricing 8,918 2,461
8,918 2,461
The above debtor balance arising from the pre-commissioning
sales of goods bear no interest and is repayable on demand.
31. Contingent liabilities
Judicial and administrative cases
In the normal course of business, the Group may be involved in
legal proceedings, claims and assessments. Such matters are subject
to many uncertainties, and outcomes are not predictable with
assurance. Legal fees for such matters are expensed as incurred and
the Group accrues for adverse outcomes as they become probable and
estimable.
The Junta de Andalucía notified the Group of another
disciplinary proceeding for unauthorised discharge in 2014. The
Group submitted the relevant defence arguments on 10 March 2015 but
has had no response or feedback from the Junta de Andalucía since
the submissions. Based on the time that has lapsed without a
response, it is expected that the outcome of this proceedings will
also be favourable for the Group. Once the necessary time has
lapsed, the Group will ask for the Administrative File to be
dismissed.
Receipt of ruling of claim made by an environmental Group
On 26 September 2018, Atalaya received notice from the Tribunal
Superior de Justicia de Andalucía ruling in favour of certain
claims made by environmental group Ecologistas en Accion ("EeA")
against the government of Andalucía ("Junta de Andalucía" or "JdA")
and Atalaya, as co-defendant in the case.
In July 2014, EeA had filed a legal claim to JdA with a request
to declare null the Unified Environmental declaration (in Spanish,
Authorization Ambiental Unificada, or "AAU") granted to Atalaya
Riotinto Minera, S.L.U. dated 27 March 2014, which was required in
order to secure the required mining permits for Proyecto Riotinto.
The judgment, in spite of annulling the AAU on procedural grounds,
made very clear that the AAU was correct and therefore, rejected
the issues raised by EeA and confirmed the decision of JdA not to
suspend the AAU.
The JdA filed for appeal to the Supreme Court. Although the
claim was against the JdA, Atalaya, being an interested party in
the process, voluntarily joined as co-defendant to ask for
permission to appeal to the Supreme Court in Spain.
On 29 March 2019, Atalaya announced the receipt of notification
from the Supreme Court in Spain stating that it does not have
jurisdiction over the appeal made by the Junta de Andalucía and the
Company, which voluntary joined the appeal as con-defendant.
The main legal consequence of the Supreme Court rejection is the
ruling of the Tribunal Superior de Justicia de la Junta de
Andalucía dated 26 September 2018 is now final and enforceable and
the environmental authority must repair the faultiness in the
process. The Company is currently in discussions to the Junta de
Andalucía to resolve the formal defects identified by the Tribunal
Superior de Justicia de Andalucía.
The Company continues operating the mine normally as the ruling
does not state the operation at Proyecto Riotinto is to be ceased,
not even temporarily and it is still confident that the ruling will
not impact its operations at Proyecto Riotinto.
32. Commitments
There are no minimum exploration requirements at Proyecto
Riotinto. However, the Group is obliged to pay local land taxes
which currently are approximately 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.
33. Significant events
On 30 May 2019, the Company announced a grant of 1,500,000 share
options (the "Options") to Persons Discharging Managerial
Responsibilities ("PDMRs") and management, in accordance with the
Company's approved Share Option Plan 2013 (the "Option Plan"). The
Options expire five years from the date of grant (29 May 2019),
have an exercise price of 201.5 pence per ordinary share, based on
the minimum share price in the five days preceding the grant date,
and vest in two equal tranches, half on grant and half on the first
anniversary of the granting date.
On 10 July 2019, the Company announced a grant of 400,000 share
options (the "Options") to Person Discharging Managerial
Responsibilities ("PDMRs") in accordance with the Company's
approved Share Option Plan 2013 (the "Option Plan"). The Options
expire five years from the date of grant (8 July 2019), have an
exercise price of 204.5 pence per ordinary share, based on the
minimum share price in the five days preceding the grant date, and
vest in two equal tranches, half on grant and half on the first
anniversary of the granting date.
In May 2019 the Board of Directors appointed a new Operational
General Manager of Proyecto Riotinto.
34. Events after the reporting period
COVID-19 outbreak
On 11 March 2020, the World Health Organization raised the
public health emergency caused by the coronavirus outbreak
(COVID-19) to an international pandemic. The rapid national and
international developments represent an unprecedented health
crisis, which will impact the macroeconomic environment and
business developments. To address this situation, among other
measures, the Spanish Government declared a state of emergency by
publishing Royal Decree 463/2020 of 14 March and approved a series
of extraordinary urgent measures to address the economic and social
impact of COVID-19 by Royal Decree Law 8/2020 of 17 March. On 17
March 2020, the Company released an update on the measures taken to
manage and respond to the pandemic to protect its workforce and
local communities surrounding its projects.
In addition, a new Royal Decree was released on 29 March 2020
(the "Royal Decree") implementing enhanced measures to protect the
people from the virus. The Royal Decree stipulated that only
employees from a short list of essential industries were allowed to
continued working from 30 March 2020. Mining was excluded as an
essential industry and consequently the Company's Proyecto Riotinto
site was required to halt its operations for a period until 3 April
2020 when mining operations were permitted to restart.
COVID-19 crisis is considered as a non-adjusting event and is
therefore not reflected in the recognition and measurement of the
assets and liabilities in the financial statements as at 31
December 2019.
Due to the complexity of the situation and its fast evolution,
it is not possible at this time to make a reliable quantified
estimate of the potential impact on the Group, which will be
recognised prospectively in the 2020 financial statements. (see
Note 2.1 (b)). The Company has increased its cash balance from
EUR8.0 million as at 31 December 2019 to EUR41.7 million as at 31
March 2020 by drawing down on existing credit facilities.
The Directors continue monitoring the business and taking
appropriate steps to address the situation and reduce its
operational and financial impact. After reviewing alternative
scenarios, the current cash resources, forecasts and budgets,
timing of cash flows, borrowing facilities, sensitivity analyses on
alternative commodities prices and considering the associated
uncertainties to the Group's operations, the Directors have a
reasonable expectation that the Company has adequate resources to
continue operating in the foreseeable future. Accordingly, the
consolidated financial statements continue to be prepared on a
going concern basis (see Note 2.1 (b)).
The Company continues carrying out several measures and
implemented an exceptional plan developed for the purpose of
protecting its workforce and the people of the surrounding
communities to manage the crisis. The main key risk, its impact and
the response plans to protect its workforce are: Spread of COVID-19
at the mine site may cause disruption in the production and
additional costs. The Group is implementing emergency response
plans. Only critical employees for the operation are allowed to
enter on site. There are severe distance and hygienical mandatory
rules, mandatory body temperature controls, and facilitate systems
and tools to work from home for all remaining employees.
Additionally, the Group, up to the date of approval of these
financial statements, assessed the existence of any impairment
indicators and the sensitivity analysis to volatility of commodity
prices about its key assets being the mining rights, the property
plant and equipment, the intangible assets, deferred taxes, trade
receivables and inventories corresponding above 95% of its total
assets (excluding cash and cash equivalents). The Directors have
considered and debated different possible scenarios on the
Company's operations, financial position and forecast for a period
of at least 12 months since the approval of these financial
statements. Possible scenarios range from (i) further disruption in
Proyecto Riotinto; (ii) market volatility in commodity prices; and
(iii) availability of existing credit facilities and have
considered the capacity of the Group and its single asset Proyecto
Riontinto to generate cash, the Group concluded that no impairment
indicators are in place.
All the above were considered in the assessment of the impact of
COVID-19 in the 2020 operations for which an inherent uncertainty
exists given the current facts and circumstances at the date of
preparation of these financial statements. Although an impact is
anticipated in certain projects due to delays, the overall
conclusion is that such an impact given the current facts and
circumstances does not cast a material uncertainty about the
ability of the Group to continue as a going concern which is the
assumption used for the preparation of these financial statements
as per Note 2.1 (b).
AAU Permits
The Junta de Andalucía issued a favourable report in relation to
the Unified Environmental Authorisation (the "AAU") of Proyecto
Riotinto in January 2020. The AAU is now on a short legal
consultation period exclusively with parties involved in the
process, as all deadlines of the process have been suspended by the
Junta de Andalucía as result of COVID-19 outbreak. The validation
of the AAU is a required step towards the automatic re-validation
of the mining permit for Proyecto Riotinto.
Negative Environmental Impact Statement on Proyecto Touro
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 7 February 2020 the formal communication from the Xunta de
Galicia was published in Galicia's official journal. In the
meantime, the Company along with its advisers, is evaluating
potential next steps for the Project, which could include an appeal
of the decision made by the Xunta de Galicia, and/or the
clarification of the questions raised by the reports.
New group entity
In 2020, the Company has initiated the process to establish in
Cyprus a new subsidiary under the name of Atalaya Financing,
Limited. The activity of this new company will be financing.
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. 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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR UNVORRRUSRUR
(END) Dow Jones Newswires
April 07, 2020 02:00 ET (06:00 GMT)
Atalaya Mining (LSE:ATYM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Atalaya Mining (LSE:ATYM)
Historical Stock Chart
From Apr 2023 to Apr 2024