29 May 2025

Atalaya Mining Copper, S.A.

("Atalaya" or the "Company")

Q1 2025 Financial Results

Strong results including the highest quarterly EBITDA in Atalaya history

Atalaya Mining (LSE: ATYM) is pleased to announce its unaudited first quarter financial results for the period ended 31 March 2025 ("Q1 2025" or "the Period") together with its unaudited condensed consolidated financial statements.

Highlights

·      Copper production of 14.3 kt, the best quarter since Q2 2021

·      Cash Cost of $2.25/lb and AISC of $2.74/lb, well below FY2025 guidance

·      EBITDA of €52.5 million, the highest quarterly figure in Atalaya history

·      Strong balance sheet, with net cash position of €38.1 million and working capital surplus of €68.5 million

·      Proyecto Touro permitting process continues to advance under Galicia's strategic industrial project legislation

·      Atalaya's shares were added to the FTSE UK Index Series following the re-domiciliation to Spain, including the FTSE 250 Index from 7 May 2025

·      San Dionisio was granted the environmental authorisation ("AAU"), which allows for the expansion of mining activities, as announced on 15 May 2025

Q1 2025 Financial Results Summary

(1)      Includes restricted cash and bank borrowings at 31 March 2025 and 31 March 2024.

Alberto Lavandeira, CEO, commented:

"We are pleased to have delivered a strong quarter to begin 2025. Good grades and plant throughput resulted in our best quarter of production in several years. Cash Costs and AISC were well below our full-year guidance, thanks to higher grades and stable site costs. Combined, these helped to deliver the highest quarterly EBITDA in Atalaya's history.      

This year is expected to be rich with catalysts, both at the corporate and asset level. We completed our re-domiciliation and now benefit from inclusion in the FTSE 250. At Riotinto, the San Dionisio deposit was granted the environmental approval as expected, which will allow for an expansion of mining activities. At Touro, the permitting process continues.

We remain very optimistic about the year ahead. We expect to make further progress across our copper growth projects in Spain, at a time when the copper market remains very tight despite global political developments and ongoing sector M&A is reducing options for investors that seek exposure to copper growth stories."

Results Presentations

Analyst and Investor Presentation

Alberto Lavandeira (CEO) and César Sánchez (CFO) will host a webcast for analysts and investors today at 9:00 BST.

To access the SparkLive webcast, please visit:

Atalaya Mining Q1 2025 Results | SparkLive | LSEG

Investor Meet Company Presentation

In addition, the Company will be holding a live presentation via the Investor Meet Company platform today at 11:00 BST.

To access the Investor Meet Company presentation, please visit:

https://www.investormeetcompany.com/atalaya-mining-copper-sa/register-investor

Management will also answer questions that have been submitted via the Investor Meet Company dashboard.

Q1 2025 Operating Results Summary

(1)      Represents the Cerro Colorado pit only.

Mining

Ore mined was 3.7 million tonnes in Q1 2025 (Q1 2024: 3.7 million tonnes).

Waste mined at Cerro Colorado was 11.3 million tonnes in Q1 2025 (Q1 2024: 5.5 million tonnes). In addition, waste stripping activities continued at the San Dionisio area. 

Processing

Ore processed was 4.2 million tonnes in Q1 2025 (Q1 2024: 3.7 million tonnes), which represents strong performance due to minimal downtime. The Company now expects to complete its next SAG mill liner change in Q3 2025.

Copper grade was 0.42% in Q1 2025 (Q1 2024: 0.34%), as a result of pit sequencing.

Copper recovery was 80.98% in Q1 2025 (Q1 2024: 84.74%), as a result of the characteristics of certain ores.

Production

Copper production was 14,291 tonnes in Q1 2025 (Q1 2024: 10,666 tonnes), as a result of strong throughput and higher copper grade.

On-site copper concentrate inventories were 19,031 tonnes at 31 March 2025 (31 December 2024: 21,815 tonnes). Nearly all of the concentrate inventories as at 31 December 2024 were sold during Q1 2025 and the Company expects to reduce the current concentrate inventory balance to normalised levels during Q2 2025.

Copper contained in concentrates sold was 14,687 tonnes in Q1 2025 (Q1 2024: 10,286 tonnes).

Cash Cost and AISC Breakdown

(1)      Represents the Cerro Colorado pit only.

Note: Some figures may not add up due to rounding.

Cash costs were $2.25/lb payable copper in Q1 2025 (Q1 2024: $2.99/lb), with the decrease due to higher copper production, higher silver credits and lower treatment charges.

AISC were $2.74/lb payable copper in Q1 2025 (Q1 2024: $3.17/lb), with the decrease in costs due to the same factors that impacted cash costs, partly offset by higher capitalised stripping, sustaining capital and corporate costs. AISC excludes investments in the tailings dam (consistent with prior reporting) and waste stripping at the San Dionisio area.

Q1 2025 Financial Results Highlights

Income Statement

Revenues were €130.7 million in Q1 2025 (Q1 2024: €69.9 million), as a result of higher copper concentrate sales, higher copper prices and lower offsite costs.

Operating costs were €78.2 million in Q1 2025 (Q1 2024: €59.7 million), as a result of higher mining and processing rates.

EBITDA was €52.5 million in Q1 2025 (Q1 2024: €10.3 million), which represents the highest quarterly figure in Atalaya's history.

Profit after tax was €30.5 million in Q1 2025 (Q1 2024: €1.6 million) or 21.6 cents basic earnings per share (Q1 2024: 1.5 cents).

Cash Flow Statement

Cash flows from operating activities before changes in working capital were €52.8 million in Q1 2025 (Q1 2024: €11.4 million) and €26.0 million after working capital changes (Q1 2024: negative €1.7 million). Working capital changes were impacted by higher trade receivables at Period end, a significant portion of which was settled on 4 April 2025.

Cash flows used in investing activities were €22.4 million in Q1 2025 (Q1 2024: €17.9 million). Key investments in Q1 2025 included €1.6 million in sustaining capex, €7.2 million in capitalised stripping at Cerro Colorado, €3.0 million related to the San Dionisio area, €4.0 million to expand the tailings dam and €0.3 million for the solar plant. In addition, €4.5 million was invested in the E-LIX Phase I Plant, of which €4.0 million was recorded as a loan to Lain Technologies.

Cash flows from financing activities were positive €13.6 million in Q1 2025 (Q1 2024: negative €16.8 million), as a result of credit facility drawdowns.

Balance Sheet

The Company's balance sheet remains strong with consolidated cash and cash equivalents of €69.7 million as at 31 March 2025 (31 December 2024: €52.9 million).

Current and non-current borrowings were €31.5 million, resulting in a net cash position of €38.1 million as at 31 March 2025 (31 December 2024: €35.1 million).

Inventories of concentrate valued at cost were €16.4 million at 31 March 2025 (31 December 2024: €19.7 million). The total working capital surplus was €68.5 million at 31 March 2025  (31 December 2024: €44.7 million).

Outlook for 2025

Full year 2025 guidance is unchanged from the outlook announced as part of the Company's 2024 Annual Results. This includes copper production of 48,000 - 52,000 tonnes (weighted slightly towards H1 2025) and Cash Cost and AISC of $2.70 - 2.90/lb and $3.20 - 3.40/lb copper payable, respectively. Guidance for non-sustaining capital investments and exploration expenditures are also unchanged.

Corporate Activities Update

Re-domiciliation

On 10 January 2025, the Company announced the completion of its re-domiciliation to the Kingdom of Spain and trading under the new registered name of Atalaya Mining Copper, S.A.

Indexation

Following the completion of the re-domiciliation, Atalaya's shares were added to the FTSE UK Index Series effective 24 March 2025, including the FTSE All-Share Index.

Subsequently, Atalaya's shares were added to the FTSE 250 Index effective from 7 May 2025. This milestone is expected to enhance the Company's visibility to institutional investors.

Copper Concentrate Offtake

As a result of the favourable market conditions for producers of copper concentrate, the Company is exploring options to unlock value from its uncommitted future production, including allocations that were subject to legacy offtake agreements which are expiring in the near term.

Asset Portfolio Update

Proyecto Riotinto

Waste stripping activities continued at San Dionisio in order to prepare the area for future mining phases, with total material mined of 1.4 million tonnes in Q1 2025.

Development progress continued in relation to the planned relocation of the A-461 road that currently runs between Cerro Colorado and San Dionisio.

At San Antonio, the polymetallic deposit located immediately east of the Cerro Colorado pit, an infill and step-out drilling programme is expected to begin shortly.

On 15 May 2025, Atalaya announced that the Junta de Andalucía ("JdA") granted the Unified Environmental Authorisation (or in Spanish, Autorización Ambiental Unificada ("AAU")) to the San Dionisio deposit at Proyecto Riotinto, which allows for the expansion of mining activities. San Dionisio represents a key component of Atalaya's strategy to increase copper production by sourcing higher-grade material from deposits throughout the Riotinto District.

E-LIX Phase I Plant

Commissioning and ramp-up activities continued at the E-LIX Phase I plant. During Q1 2025, further progress was made in relation to optimising and debottlenecking the circuits to increase capacity, with the novel leaching section continuing to perform well. Focus remains on leaching the zinc contained within Atalaya's copper concentrates due to the low copper treatment charge environment.

Once fully operational, the E-LIX plant is expected to produce high-purity copper or zinc metals and intermediate products such as metal precipitates on site, allowing the Company to potentially achieve higher metal recoveries from complex polymetallic ores, lower transportation charges and a reduced carbon footprint.

Riotinto District - Proyecto Masa Valverde ("PMV")

At present, four rigs are infill drilling the veining stockwork and massive sulphide type mineralisation at the Masa Valverde deposit.  

The Company expects to start preparatory works related to the access ramp in the coming months once it has completed the purchase of certain surface rights.

PMV has been granted the two key permits required for development - the Unified Environmental Authorisation (or in Spanish, Autorización Ambiental Unificada ("AAU")) and the exploitation permit.

Proyecto Touro

On 24 June 2024, Atalaya announced that Proyecto Touro, via its local entity Cobre San Rafael, was declared a strategic industrial project by the Council of the Xunta de Galicia ("XdG"). Under legislation of the Autonomous Community of Galicia, the status of strategic industrial project (or in Spanish, Proyecto Industrial Estratégico ("PIE")) acts to simplify the administrative procedures associated with the development of industrial projects and intends to substantially reduce permitting timelines.

This declaration highlights the XdG's commitment to promoting new investment that will benefit the region and also support the objectives of the European Union. Copper is considered a strategic raw material by the EU and this project has the potential to become a new source of sustainable European copper production.

The XdG is continuing its review according to the simplified procedures afforded to projects with PIE status. The public information period, which serves to inform the surrounding communities and organisations about the proposed project, concluded on 31 January 2025. Cobre San Rafael has responded to the feedback submitted during the public information period and the vast majority of sectoral reports issued by the various departments of the XdG have been finalised. In relation to the planned power transmission line, good progress has been made, with agreements reached with the majority of landowners.

The Company continues to engage with the many stakeholders in the region and is restoring the water quality of the rivers around Touro by operating its water treatment plant. The Company has also intensified its recruitment initiatives in relation to its potential future workforce.

Plant engineering is ongoing including the definition of final flowsheets and detailed process layout, in order to shorten the timeline to construction start once permits are obtained. Finally, infill and step-out drilling programmes are nearing completion, having focused on areas captured in the initial mine plan and where mineralisation remains open.

Proyecto Ossa Morena

Drilling is expected to start at the Alconchel-Pallares copper-gold project in June. At the Guijarro-Chaparral gold-copper project, drilling is expected to begin in the coming months.

Proyecto Riotinto East

Gravimetric ground surveys and soil geochemistry are being carried out over selected areas to better define future drill targets on the East belt extension. Drilling in expected to begin in the coming months.

Skellefte Belt and Rockliden (Sweden)

In November 2024, Atalaya announced that it had entered into two binding agreements with Mineral Prospektering i Sverige AB ("MPS") pursuant to which Atalaya can earn an initial 75% interest in two separate land packages in Sweden. The Skellefte Belt land package ("Skellefte Belt Project") and the Rockliden land package ("Rockliden Project") are located in two notable districts that host many large-scale volcanogenic massive sulphide ("VMS") deposits and mines owned by Boliden AB. Both regions are underexplored and could increase Atalaya's exposure to critical minerals in Europe.

The winter drilling programmes at both projects completed in March 2025, with final assays pending. In the coming months, focus will be on the geological interpretation and modelling of the data, as well as completing geophysical surveys over certain areas in order to define the next drill targets.

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:

About Atalaya Mining Copper, S.A.

Atalaya is a European copper producer that owns and operates the Proyecto Riotinto complex in southwest Spain. Atalaya's shares trade on the London Stock Exchange's Main Market under the symbol "ATYM" and Atalaya is a FTSE 250 Index constituent.

Atalaya's operations include the Cerro Colorado open pit mine and a modern 15 Mtpa processing plant, which has the potential to become a central processing hub for ore sourced from its wholly owned regional projects around Riotinto, such as Proyecto Masa Valverde and Proyecto Riotinto East. In addition, Atalaya has a phased earn-in agreement for up to 80% ownership of Cobre San Rafael S.L., which fully owns the Proyecto Touro brownfield copper project in the northwest of Spain, as well as a 99.9% interest in Proyecto Ossa Morena. For further information, please visit www.atalayamining.com

ATALAYA MINING COPPER, S.A.

MANAGEMENT'S REVIEW AND

UNAUDITED INTERIM CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

31 March 2025

Notice to Reader

The accompanying unaudited interim condensed consolidated financial statements of Atalaya Mining Copper, S.A. have been prepared by and are the responsibility of Atalaya Mining's management.

Introduction

This report provides an overview and analysis of the financial results of operations of Atalaya Mining Copper, S.A. and its subsidiaries ("Atalaya" and/or "Group"), to enable the reader to assess material changes in the financial position between 31 December 2024 and 31 March 2025 and results of operations for the three months ended 31 March 2025 and 2024.

This report has been prepared as of 28 May 2025. The analysis, hereby included, is intended to supplement and complement the unaudited interim condensed consolidated financial statements and notes thereto ("Financial Statements") as at and for the period ended 31 March 2025. The reader should review the Financial Statements in conjunction with the review of this report and with the audited, consolidated financial statements for the year ended 31 December 2024. These documents can be found on Atalaya's website at www.atalayamining.com.

Atalaya prepares its Annual Financial Statements in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS-EU) and the interpretations of the IFRS Interpretations Committee (IFRS IC) approved by Regulations of the European Commission, and its Unaudited Interim Condensed Consolidated Financial Statements in accordance with International Accounting Standard 34: Interim Financial Reporting. The currency referred to in this document is the Euro, unless otherwise specified.

Forward-looking statements

This report may include certain "forward-looking statements" and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitute forward-looking statements. Forward-looking statements are frequently characterised by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Assumptions upon which such forward-looking statements are based include that all required third party regulatory and governmental approvals will be obtained. Many of these assumptions are based on factors and events that are not within the control of Atalaya and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions and other risk factors discussed or referred to in this report and other documents filed with the applicable securities regulatory authorities. Although Atalaya has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Atalaya undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

1.    Incorporation and description of the Business

Atalaya Mining Copper S.A. (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 after the cross-border conversion finished on 10 January 2025 is Paseo de las Delicias, 1, 3, 41001, Sevilla, Spain.

The Company was first listed on the Alternative Investment Market (AIM) of the London Stock Exchange in May 2005, trading under the symbol ATYM. On 29 April 2024, the Company was admitted to the premium listing segment of the Official List maintained by the FCA and to trading on the main market of the London Stock Exchange. After completion of the cross-border conversion, the Company's shares commenced trading under "Atalaya Mining Copper, S.A." on 10 January 2025 and the nominal value of the Company's shares were also adjusted from 7.5p to €0.09 per share.

Atalaya is a European mining and development company. The strategy is to evaluate and prioritise metal production opportunities in several jurisdictions throughout the well-known belts of base and precious metal mineralisation in Spain, elsewhere in Europe and Latin America.

The Group has interests in four mining projects: Proyecto Riotinto, Proyecto Touro, Proyecto Masa Valverde and Proyecto Ossa Morena. In addition, the Group has an earn-in agreement to acquire two investigation permits at Proyecto Riotinto East.

In November 2024, Atalaya entered into earn-in agreements on two exploration projects in Sweden (the Skellefte Belt and Rockliden) located in prospective volcanogenic massive sulphide ("VMS") districts.

Proyecto Riotinto

The Company owns and operates through a wholly owned subsidiary, "Proyecto Riotinto", an open-pit copper mine located in the Iberian Pyrite Belt, in the Andalusia region of Spain, approximately 65 km northwest of Seville. A brownfield expansion of this mine was completed in 2019 and successfully commissioned by Q1 2020.

Proyecto Touro

As described in the Annual Report 2024, the Group initially acquired a 10% stake in Cobre San Rafael, S.L. ("CSR"), the owner of Proyecto Touro, under an earn-in agreement that allowed the Group to acquire up to 80% of the copper project. Proyecto Touro, located in Galicia (north-west Spain), is currently the permitting process at the time.

In July 2017, the Group announced that it had executed the option to acquire 10% of CSR, a wholly owned subsidiary of Explotaciones Gallegas S.L. The earn-in agreement was structured in four phases, enabling the Group to gradually increase its stake in CSR up to 80%:

-    Phase 1 - The Group paid €0.5 million to secure and exclusive right to fund up to a maximum of €5.0 million to support the permitting and financing stages.

-    Phase 2 - Upon receipt of permits, the Group is required to pay €2.0 million to acquire an additional 30% interest in the project (cumulative 40%).

-    Phase 3 - Once development capital is secured and construction commences, the Group is required to pay €5.0 million to acquire an additional 30% interest in the project (cumulative 70%).

-   Phase 4 - Upon declaration of commercial production, the Group purchases an additional 10% interest (cumulative 80%) in consideration for a 0.75% Net Smelter Return royalty, with a buyback option.

The agreement was structured to ensure that payments would be made progressively as the project is de-risked, permitted, and become operational.

On 24 June 2024, Atalaya announced that Proyecto Touro, through CSR, had been declared a Strategic Industrial Project ("Proyecto Industrial Estratégico" or "PIE") by the Council of the Xunta de Galicia ("XdG"). Under Galician legislation, PIE status sought to simplify administrative procedures and aimed to shorten permitting timelines.

This declaration highlighted the XdG's commitment to promoting new investment in the region and aligned with the objectives of the European Union. As copper was considered a strategic raw material by the EU, the project was recognised for its potential to become a sustainable European source of copper production.

The XdG continued its review under the simplified procedures applicable to PIE projects. The public information period, which informed nearby communities and organisations about the proposed project, concluded on 31 January 2025. At that time, CSR was focused on analysing and responding to feedback from the public and assessing sectoral reports issued by various departments of the XdG.

As a result of developments during the year, the Group concluded that it was likely that phases 2, 3 and 4 of the Touro project would be completed. Accordingly, in line with the Group's accounting policy on contingent payments, it recognised an intangible asset of €16.5 million as of year-end, together with the related contingent liabilities.

In accordance with the Group's policy on non-controlling interests, 20% of the newly recognised intangible asset was allocated to non-controlling interests, amounting to €3.3 million.

As also disclosed in the Annual Report 2024, and reflecting the Group's updated expectations regarding the completion of future phases, the Group reversed a previously recorded impairment from 2019 of €6.9 million, which related to capitalised expenses associated with Proyecto Touro.

In parallel, the Company continued to engage with local stakeholders through recruitment initiatives and maintained its water treatment operations to improve water quality in rivers around Touro.

Furthermore, the Company carried out infill and step-out drilling programmes, focused on areas within the initial mine plan where mineralisation remained open.

Proyecto Masa Valverde

On 21 October 2020, the Company announced that it had entered into a definitive purchase agreement to acquire 100% of the shares of Cambridge Mineria España, S.L. (since renamed Atalaya Masa Valverde, S.L.U.), a Spanish company which fully owns the Masa Valverde polymetallic project located in Huelva (Spain). Under the terms of the agreement Atalaya will make an aggregate €1.4 million cash payment in two approximately equal instalments. The first payment is to be executed once the project is permitted and the second and final payment when first production is achieved from the concession.

In November 2023, the exploitation permit for the Masa Valverde and Majadales deposits was officially granted. Following this milestone, in January 2024, the Company made a payment of €0.7 million as part of the process associated with the granted permits.

Proyecto Ossa Morena ("POM)

In December 2021, Atalaya announced the acquisition of a 51% interest in Rio Narcea Nickel, S.L., which owned 9 investigation permits. The acquisition also provided a 100% interest in three investigation permits that are also located along the Ossa-Morena Metallogenic Belt. In Q3 2022, Atalaya increased its ownership interest in POM to 99.9%, up from 51%, following completion of a capital increase that will fund exploration activities. During 2022 Atalaya rejected 8 investigation permits.

Atalaya will pay a total of €2.5 million in cash in three instalments and grant a 1% net smelter return ("NSR") royalty over all acquired permits. The first payment of €0.5 million was made following execution of the purchase agreement. The second and third instalments of €1 million each will be made once the environmental impact statement ("EIS") and the final mining permits for any project within any of the investigation permits acquired under the agreement are secured. In accordance with the agreement, these outstanding instalments are disclosed as a non-current payable to the sellers.

Proyecto Riotinto East

In December 2020, Atalaya entered into a Memorandum of Understanding with a local private Spanish company to acquire a 100% beneficial interest in three investigation permits (known as Peñas Blancas, Cerro Negro and Herreros investigation permits), which cover approximately 12,368 hectares and are located immediately east of Proyecto Riotinto. After a short drilling campaign, the Los Herreros investigation permit was rejected in June 2022. Proyecto Riotinto East consists of the remaining two investigation permits, Peñas Blancas and Cerro Negro, totalling 10,016 hectares.

Skellefte Belt Project and Rockliden Project

During 2024, the Group entered into earn-in agreements with Mineral Prospektering i Sverige AB ("MPS") in relation to the Skellefte Belt Project and the Rockliden Project, both situated in well-established volcanogenic massive sulphide districts renowned for their mineral resource potential.

2.    Overview of Operational Results

Proyecto Riotinto

The following table presents a summarised statement of operations of Proyecto Riotinto for the three months ended 31 March 2025 and 2024, respectively.

(*) Refer Section 5 of this Management Review.

(1)   Represents the Cerro Colorado pit only.

Note: Some figures may not add up due to rounding.

Three months operational review

Mining

Ore mined was 3.7 million tonnes in Q1 2025 (Q1 2024: 3.7 million tonnes), compared with 3.5 million tonnes in Q4 2024.

Waste mined was 11.3 million tonnes in Q1 2025 (Q1 2024: 5.5 million tonnes), compared with 10.2 million tonnes in Q4 2024. Separately, waste stripping activities advanced at the San Dionisio area.

Processing

The plant processed 4.2 million tonnes of ore in Q1 2025 (Q1 2024: 3.7 million tonnes) compared to 3.8 million tonnes in Q4 2024 which represents plant performance above its 15 million tonne per annum nameplate capacity.

Copper grade in Q1 2025 was 0.42% (Q1 2024: 0.34%) compared to 0.41% in Q4 2024.

Copper recovery was 80.98% in Q1 2025 (Q1 2024: 84.74%), compared with 78.15% in Q4 2024, the decrease regarding the previous year mainly due to restricted access to ore zones caused by heavy rainfall during the quarter as well as increased mineralogical complexity.

Production

Copper production was 14,291 tonnes in Q1 2025 (Q1 2024: 10,666 tonnes), compared with 12,078 tonnes in Q4 2024. Higher production in Q1 2025 was mainly the result of higher grades and ore processed despite of lower recoveries.

On-site copper concentrate inventories at the end of Q1 2025 were approximately 19,031 tonnes.

Copper contained in concentrates sold was 14,687 tonnes in Q1 2025 (Q1 2024: 10,286 tonnes).

3.    Outlook

The forward-looking information contained in this section is subject to the risk factors and assumptions contained in the cautionary statement on forward-looking statements included in the Basis of Reporting. Should the Company consider the current guidance no longer achievable, then the Company will provide a further update.

Operational guidance

Guidance for Proyecto Riotinto is unchanged from the previously announced outlook.

(1)      Represents the Cerro Colorado pit only.

Production

Copper production guidance for FY2025 remains at 48,000 - 52,000 tonnes. Production in FY2025 is expected to be weighted slightly towards H1 2025 as a result of pit sequencing.

Operating Costs

Cash Cost and AISC guidance for FY2025 is unchanged:

·      Cash Cost range of $2.70 - 2.90/lb copper payable

·      AISC range of $3.20 - 3.40/lb copper payable

AISC guidance excludes investments in the tailings dam and ongoing waste stripping at the San Dionisio area, which are included in the non-sustaining capital investment guidance below.

Non-Sustaining Capital Investments

Guidance for FY2025 non-sustaining capital investments is unchanged at €58 - 82 million.

Exploration Expenditures

In FY2025, the Company's exploration expenditure budget remains at €6 - 8 million.

4.    Overview of Financial Results

The following table presents summarised consolidated income statements for the three months ended 31 March 2025, with comparatives for the three months ended 31 March 2024.

Three months financial review

Revenues for the three-month period ended 31 March 2025 amounted to €130.7 million (Q1 2024: €69.9 million). The increase in revenues was mainly due to higher copper concentrate volumes sold with higher realised copper prices and lower offsite costs.

The realised prices excluding QPs was US$4.26/lb copper during Q1 2025 compared with $3.89/lb copper in Q1 2024. The realised price, including QPs was approximately $4.20/lb during the quarter ($3.79/lb in Q1 2024).

Cost of sales for the three-month period ended 31 March 2025 amounted to €72.3 million, compared with €56.8 million in Q1 2024. Higher costs were primarily attributable to higher sales volumes related to higher ore processed and the increase in waste mined in the period.

Cash costs of $2.25/lb payable copper during Q1 2025 compared with $2.99lb payable copper in the same period last year. The reduction in cash costs was mainly due to higher copper production in the quarter, combined with a stronger US Dollar/Euro exchange rate compared to Q1 2024. AISC for Q1 2025 excluding investment in the tailings dam expansion and San Dionisio stripping were $2.74/lb payable copper compared to $3.17/lb payable copper in Q1 2024. The decrease was primarily due to lower cash costs despite an increase in capitalised stripping costs at Cerro Colorado.

Sustaining capex for Q1 2025 amounted to €1.6 million compared with €0.4 million in Q1 2024. Sustaining capex was mainly related to the new crusher and continuous enhancements in the processing systems of the plant. In addition, the Company invested €4.0 million during Q1 2025 to increase tailings dam capacity. Stripping costs capitalised for Cerro Colorado during Q1 2025 amounted to €7.2 million (Q1 2024: €nil million).

Capex associated with the construction of the solar plant amounted to €0.3 million in Q1 2025, while investments in the E-LIX Phase I plant, commissioning and ramp-up totalled €0.5 million and €4.0 million related to the convertible loan. Additionally, a capex of €3.0 million is related to the San Dionisio area.

Corporate expenses amounted to €2.6 million (Q1 2024: €1.9 million) and include non-operating costs of the Cyprus office, corporate legal and consultancy costs, ongoing listing costs, officers' and directors' emoluments, and salaries and related costs of the corporate office.

Exploration costs for the three-month period ended 31 March 2025 amounted to €3.3 million, higher than in Q1 2024 (€0.9 million), mainly due to the Skellefte Belt Project and Rockliden Project in Sweden, which together accounted for €2.4 million during the period.

EBITDA for the three months ended 31 March 2025 amounted to €52.5 million compared with Q1 2024 of €10.3 million. The higher EBITDA was due to higher sales as explained above and lower offsite costs.

The main item below the EBITDA line is depreciation and amortisation of €12.9 million (Q1 2024: €9.6 million).

Net foreign exchange losses of €2.1 million were the result of the depreciation of the Euro against the US Dollar over the quarter.

Net financing costs for Q1 2025 amounted to €0.1 million compared with €0.1 million in Q1 2024.

Copper prices

The average realised copper price (excluding QPs) increased 9.5% from US$3.89 per pound in Q1 2024 to US$4.26 per pound in Q1 2025.

The average price of copper for the three months ended 31 March 2025 and 2024 respectively are summarised below:

Realised copper prices for the reporting period noted above have been calculated using payable copper and exclude both provisional invoices and final settlements of quotation periods (together "QPs"). The realised price during the year, including the QP, was approximately $4.20/lb.

5.    Non-GAAP Measures

Atalaya has included certain non-IFRS measures including "EBITDA", "Cash Cost per pound of payable copper", "All-In Sustaining Costs" ("AISC") "realised prices" and "Net Cash/Debt" in this report. Non-IFRS measures do not have any standardised meaning prescribed under IFRS, and therefore they may not be comparable to similar measures presented by other companies. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for indicators prepared in accordance with IFRS.

EBITDA includes gross sales net of penalties and discounts and all operating costs, excluding finance, tax, impairment, depreciation and amortisation expenses.

Cash Cost per pound of payable copper includes cash operating costs, including treatment and refining charges ("TC/RC"), freight and distribution costs net of by-product credits. Cash Cost per pound of payable copper is consistent with the widely accepted industry standard established by Wood Mackenzie and is also known as the C1 cash cost.

AISC per pound of payable copper includes C1 Cash Costs plus royalties and agency fees, expenditures on rehabilitation, capitalised stripping costs, exploration and geology costs, corporate costs and recurring sustaining capital expenditures but excludes one-off sustaining capital projects, such as the tailings dam project.

Realised price per pound of payable copper is the value of the copper payable included in the concentrate produced including the discounts and other features governed by the offtake agreements of the Group and all discounts or premiums provided in commodity hedge agreements with financial institutions if any, expressed in USD per pound of payable copper. Realised prices do not include period end mark to market adjustments in respect of provisional pricing Realised price is consistent with the widely accepted industry standard definition.

6.    Liquidity and Capital Resources

Atalaya monitors factors that could impact its liquidity as part of Atalaya's overall capital management strategy. Factors that are monitored include, but are not limited to, the market price of copper, foreign currency rates, production levels, operating costs, capital and administrative costs.

The following is a summary of Atalaya's cash position as at 31 March 2025 and 31 December 2024 and cash flows for Q1 2025 and 2024.

Liquidity information

⁽¹⁾           Includes borrowings

Unrestricted cash and cash equivalents, which include balances at both Group and Operation levels, increased to €69.7 million as at 31 March 2025, up from €52.9 million at 31 December 2024. This increase was primarily driven by cash inflows from operating activities, partially offset by continued investments and debt repayments. The increase in consolidated cash was particularly notable at the operational level, where balances rose to €25.6 million from €9.7 million, while Group-level cash remained broadly stable at around €44.0 million.

Despite positive operating cash flows, negative working capital movements, mainly due to increases in trade receivables and inventories, acted to reduce liquidity. Investment outflows also increased, reflecting ongoing capital expenditure in areas such as San Dionisio, the E-LIX project, and enhancements to processing systems. Financing activities contributed positively to the cash position during the period, driven by new borrowings exceeding repayments. All cash balances remain unrestricted and are available for general use at both operational and corporate levels.

As of 31 March 2025, Atalaya reported a working capital surplus of €68.5 million, compared with €44.7 million at 31 December 2024. The improvement in working capital reflects a stronger cash position and an increase in short-term receivables, offsetting a modest decrease in inventories and relatively stable short-term payables. The Group also maintained a net cash position of €38.1 million, up from €35.1 million at year-end 2024, underscoring its solid liquidity profile.

Overview of the Group's cash flows

Three months cash flows review

Cash and cash equivalents were €69.7 million at 31 March 2025. This was due to the net results of cash generated from operating activities amounting to €26.0 million, the cash used in investing activities amounting to €22.4 million, the cash generated from financing activities totalling €13.6 million, and net foreign exchange differences of negative €0.5 million.

Cash generated from operating activities before working capital changes was €52.8 million. Trade receivables in the period increased by €29.3 million, inventory levels increased by €5.2 million and trade payables decreased by €0.6 million.

Investing activities during the quarter consumed €22.4 million, relating mainly to capitalised stripping at Cerro Colorado, the tailings dams project, E-LIX, San Dionisio area and continuous enhancements in the processing systems of the plant.

Financing activities during the quarter generated €13.6 million, driven by proceeds from borrowings of €16.6 million, partially offset by repayments of existing unsecured credit facilities of €2.9 million.

Foreign exchange

Foreign exchange rate movements can have a significant effect on Atalaya's operations, financial position and results. Atalaya's sales are denominated in U.S. dollars ("USD"), while Atalaya's operating expenses, income taxes and other expenses are mainly denominated in Euros ("EUR") which is the functional currency of the Group, and to a much lesser extent in British Pounds ("GBP").

Accordingly, fluctuations in these exchange rates can potentially impact the results of operations and carrying value of assets and liabilities on the balance sheet.

During the three months ended 31 March 2025, Atalaya recognised a foreign exchange loss of €2.1 million (€1.6 million foreign exchange gain in Q1 2024). Foreign exchange loss mainly related to the devaluation of the EUR against the USD, as sales proceeds are generally held in USD.

The following table summarises the movement in key currencies versus the EUR:

7.    Sustainability

Corporate Social Responsibility

Atalaya reaffirmed its commitment to community development in the Cuenca Minera region through Fundación Atalaya's initiatives during the first quarter of 2025. The foundation focused on education, tourism, culture, sports, and local services, strengthening the region's social and economic fabric.

A highlight this quarter was the consolidation of the Riotinto Experience, in collaboration with Fundación Río Tinto. Tourists can now visit the mining operation through a specially equipped vehicle, gaining firsthand insight into modern mining. The initiative has been well-received and attracted visits from key institutional figures, including the Delegate of Mines of Huelva and the Minister of Tourism for Andalusia.

In education and employment areas, Fundación Atalaya supported IES Cuenca Minera with "Proyecto Slalom," promoting road safety and inclusion. The Mining Operator Training Course completed its theoretical and technical phases, and students have begun internships in local companies. The foundation also partnered with ADR Cuenca Minera, providing classroom space for training and community use. In support of local infrastructure, a renewed agreement with the Ayuntamiento de El Campillo helped fund the purchase of a new street sweeper, continuing efforts to improve municipal services.

Cultural activities this quarter included sponsorship of Época, to organize a poetry gathering led by Carmelo Rufo, and continued support for Carlos Javier Pascual's book on the Bella Vista English Club. Fundación Atalaya also backed the El Campillo carnival through an agreement with local group Los Esponjas, promoting community tradition. In sports and recreation, the foundation sponsored the Mina Bike Marathon, supported by the Andalusian Cycling Federation, and the newly merged CD Trail Runners Cuenca Minera. It also contributed to the Hermandad Santa Cruz El Pino to support their traditional romería, preserving local cultural heritage.

Health and Safety

In the first quarter of 2025, health and safety performance remained consistent with the previous year's trend. However, there was a slight uptick in absolute figures due to one additional lost-time injury recorded among contractor companies in the quarter. This development is reflected in the key performance indicators, with the Frequency Rate (FR) ending the quarter at 6.68 and the Severity Rate (SR) at 0.09.

In terms of accident reduction targets, the Severity Rate objective was achieved, while the Frequency Rate exceeded the target set for 2025 and was therefore not met.

During the quarter, the Company completed the annual reports for the technical disciplines of occupational risk prevention, the 2025 Prevention Plan, and the Health and Safety Document - the latter forming part of the statutory Mining Operations Plan. Additionally, the Preventive Activity Plan for 2025 was finalised and launched.

With regard to Industrial Hygiene, nearly all planned measurements for the first four-month period were carried out as scheduled. Training activities for the First Response Brigade were also delivered in accordance with the Company's annual safety training plan.

The first annual meeting of the Joint Health and Safety Committee was held, serving as the key consultation and participation forum with workforce representatives.

The Company also continued to implement controls for psychoactive substances at entry points and within the onsite medical unit. The AI-based random testing system, introduced last year, remains in place and continues to improve the integrity of testing by selecting individuals or vehicles for alcohol and drug screening based on intelligent algorithms.

Finally, Phase II of the "Zero Harm Challenge" project is progressing, with active involvement from cross-functional working groups. These teams are developing the ten most prevalent and widely supported proposals identified during Phase I. The initiative has achieved strong engagement and commitment from participants and remains central to the Company's strategy to foster a robust preventive safety culture across all operations.

Environment

During the first quarter of 2025, the Environmental Department continued to implement its programme of environmental monitoring and natural resource management. This period was marked by several key developments.

There were no environmental incidents reported during the quarter. Total rainfall recorded was 582.2 litres per square metre, representing an increase of approximately 21% compared to the same period in the previous year. For the current hydrological year, from October 2024 to March 2025, cumulative rainfall reached 930.8 litres per square metre, which is 18% higher than that recorded over the same period in the prior hydrological year.

On 10 January 2025, the Company submitted an application for a non-substantial modification of the Unified Environmental Authorisation (AAU), related to planned improvements to dust collection in the crushing area. This modification was approved in February.

In addition, on 13 March 2025, a response document was filed addressing feedback to the environmental report for the substantial modification of the environmental permit concerning the expansion of the San Dionisio deposit. The Environmental Authorisation was granted in May.

All mandatory annual reports were submitted to the Environmental Administration. These included the Annual Waste Reports for both hazardous and non-hazardous waste, the E-PRTR report concerning pollutant emissions, and the management reports for protected species such as Erica andevalensis and bats.

The measures outlined in the Dust Action Plan continued to be actively implemented. These measures included increased frequency of watering, improved coordination across departments, and strengthened monitoring of dust emissions generated by operations. In parallel, the Environmental Department remained actively involved in the Restoration Plan, covering both operational and historical areas of activity.

All scheduled internal monitoring of non-channelled atmospheric emissions was carried out, with results remaining within regulatory thresholds. Additionally, all other periodic and mandatory controls were performed as planned, without incident. Several regulatory reports were also submitted to the relevant environmental authorities over the course of the quarter.

Daily environmental inspections were conducted with a primary focus on chemical storage and handling, site housekeeping, waste management, prevention of uncontrolled discharges, and encouraging environmentally responsible behaviour among ARM personnel and contractors. These inspections also included regular reviews of dust control systems and drainage infrastructure. A total of 51 inspections were carried out across the plant, mining areas, and contractor camps during the first quarter.

8.    Risk Factors

Due to the nature of Atalaya's business in the mining industry, the Group is subject to various risks that could materially impact the future operating results and could cause actual events to differ materially from those described in forward-looking statements relating to Atalaya. Readers are encouraged to read and consider the risk factors detailed in Atalaya's audited, consolidated financial statements for the year ended 31 December 2024.

The Company continues to monitor the principal risks and uncertainties that could materially impact the Company's results and operations, including the areas of increasing uncertainty such as inflationary pressure on goods and services required for the business and geopolitical developments worldwide.

9.    Critical accounting policies, estimates, judgements, assumptions and accounting changes

The preparation of Atalaya's Financial Statements in accordance with IFRS requires management to make estimates, judgements and assumptions that affect amounts reported in the Financial Statements and accompanying notes. There is a full discussion and description of Atalaya's critical accounting policies in the audited consolidated financial statements for the year ended 31 December 2024.

As at 31 March 2025, there are no significant changes in critical accounting policies or estimates to those applied in 2024.

10. Other Information

Additional information about Atalaya Mining Copper, S.A. is available at www.atalayamining.com

Unaudited interim condensed consolidated financial statements on subsequent pages.

By Order of the Board of Directors,

___________________________________

Neil Gregson

Chair, Atalaya Mining Copper, S.A.

Seville, 28 May 2025