Good morning, ladies and gentlemen. Thanks everybody for being here.

We are, today we announce the the results, the Q2 and first half results for 2026, including the financial results. I'm going to go through the through the highlights of this announcement.

Let me first start with a review of of the results during this quarter. We had a good production quarter.

We had announced that already. We produced 13.5 thousand tons of of copper, with all-in sustaining costs of $2.79, which means we are maintaining our guidance and of both for cost and production.

It was a good quarter. We generated record quarterly EBITDA of €78 million, a record half of the year of €126 million, record free cash flow of €58 million, so that's over $60 million.

Of course, we benefited from high copper prices, good silver credits, low treatment charges, and that was very good. Even with the with some higher mining costs and processing costs due to inflation and to higher diesel prices, we had an excellent cash generation.

This is extraordinary cash generation meant that our balance sheet at the end of the quarter was excellent, and we ended up with a net cash position of 300, €318, almost €319 million, which is also again a new record. As a result of that, our board declared dividend, an interim dividend of of 5.5 cent, €0.055 per share, which is also much higher than previous previous interim dividend.

I will go through some of the key points in the next in in the presentation. Okay.

In slide seven, you will see a graph that we typically show with with the evolution of production. The plant continued to perform very well.

The Q2 was strong, it was a good a very big improvement versus first quarter. As you remember, during the late January and almost all February, we had an extraordinarily high rainfall in the south of Spain, and that impacted our production.

During the the second quarter, things were normal, we recovered a lot of the lost production. We had a very strong mill performance, grades went almost to 0.4% copper, and we increased the recovery to 84%, we produced 13.5 thousand tons of copper, which is quite good.

You can see in the graph at the bottom side, a big increase, a large increase versus previous quarter. As a result of that, the financial results were quite good.

EBITDA was €78 million, which is again a new quarter. Of course, the revenues, you can see were a record high, were a result of higher copper prices, higher silver credits, and lower off-site off-site costs.

We made some investments of around €20 million during the quarter, mainly in San Dionisio and capitalized stripping at Cerro Colorado. With everything, the operating cash flow was almost €80 million, and we generated €58 million of free cash flow, which is again a new quarterly record.

That means that our our balance sheet improved a lot, strengthened even further, and we increased our cash position to almost €320 million. Of course, we had a nice increase in the capital placement that we had in in late January.

Even so, after that period, we continued to strengthen our balance sheet and increase our cash position in in this quarter. Going a little bit further in the in the financial results, excuse me, looks like I have I have here some interference.

During the whole year, we had a during the whole first half of the year, we had an EBITDA of of €126 million, which is is again a new a new record. Looking at the the breakdown of our cash costs and all-in sustaining costs, as we always give a full detail of this.

Our cash costs were around 200 $2.40 per pound in Q2 and in in the first half of '26, and they were solid and well beyond below below the guidance that we had expected for the full 2026. All-in sustaining costs were around $2.80 per pound in second quarter and around to just under $3 in the whole '26.

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

Also, we had some not favorable exchange rate during during the quarter. The euro and the US dollar, the euro strengthened a little bit during the quarter.

Of course, even having this kind of bad bad news at operational level, at site level, we most of this increase of in the costs were offset by higher silver credits and low treatment charges, as you can see in the in the lines of the off-site costs. We are we are right now enjoying low treatment charges from the benchmark, but also we are also selling some parcels, some lots with negative treatment charges, which means that at the end we have been able to to have quite low freight, treatment charges, and all other off-site costs.

Going forward, beyond '27, all our legacy offtake agreements will be disappearing, will have expired. If the market conditions still like that, we think we're going to be in a very good position to enjoy very low treatment charges.

As you all know, the evolution of treatment charges was gone from being positive in the range of the $50 to $80 to being negative, even at spot spot sales of of minus $200. With all most of our offtake agreements expiring this year and and all of them next year, we are fully exposed to this good conditions to the for the miners that we believe are going to persist for a while due to the lack of new projects and due to the excess smelter capacity.

Of course, also the the smelters are enjoying the high sulfuric acid prices, high gold prices, and silver, which means that they're not losing money, there's no specific danger for the smelters to close even with this low and negative treatment charges. When we benchmark ourselves with others, we always like to to compare with other pure copper players, we continue to maintain our all-in sustaining costs quite under control.

We continue to be very well positioned compared to the rest. Our all-in sustaining costs have been trending downwards, even even with this inflation that we have been seeing that's general all all over the world.

With this, how how do we see the rest of the year? We have preferred that we to maintain our our prior guidance.

We believe we are going to be in the low end of the production, although we will be recovering some of the lost production of the first quarter, but we think we are going to be at the low end, even with the good production result of the of the second quarter. From the cash cost point of view, we had pressures on diesel and explosives, but we don't think they're going to be worse than this quarter.

If anything, looks like diesel is relaxing a little bit, at least from the oil point of view, oil price point of view. We prefer to maintain also our our guidance.

We have made some small amendments to our operating metrics. We believe that the mill is going to be performing very well, has been doing very well.

We had some, actually, we had a record May, where the mill stopped only three hours in the whole the whole month. It was fantastic.

We do have a a maintenance program in in the third quarter. Still, we we think we're going to be mining, processing in the high end of 16 million tons or more than that at the mill.

The grades maybe are going to be slightly lower than were predicted, really just slightly shy of that, but the recovery is going to be slightly better, one will compensate the other, at the end we are maintaining our our guidance. The capex, the capex, we have lowered the capex a little bit, around €20 million, €20 million less.

The reason is the delays in starting some of the projects, our growth projects, which I will will talk a little bit later. This is the the prestripping of of San Dionisio was slightly delayed, the movement of the road, and the start of the ramp.

Basically, it doesn't mean we are saving capex, we are simply pushing that to to later in the year and beyond into 2027. Looking at dividends, as I said before, the policy of Atalaya is to give back between 35% and 50% of the free cash flow.

We believe that we have to keep a dividend, even if we know that we're going to have ahead of us a good set of investments of growth initiatives, especially in Touro and also at Rio Tinto. The the board decided, due to the good financial position, to to increase the the interim dividend by around 25% versus the previous previous year.

This is a 5.5 cents per per share, euro cents per per share. This this dividend is expected to be paid in September.

As I said, it's an interim dividend, and we hope we can continue increasing that in the in the final dividend. Now, this company is operating well, but now where is our growth?

What's the situation of our growth projects? For the rest of the year, we will continue developing this.

In the slide in the corner, you see San Dionisio. We continue doing the pushbacks, and they are advancing well.

We had a a small delay by off by the electric company removing an electric line that's in our way. That's the reason why there's a small delay in the access in the better grades of San Dionisio, something of months, not not years.

At Masa Valverde, we basically we have continued doing all the works on surface, access roads, explosive magazine, which are quite big, excavation of of the preparation for the portal, platforms, and so on, which are almost ready, and simply waiting for the final decision to to decide to push ahead with the ramp, which is expected sometime in in this later in this quarter. At Rio Tinto, as we are going to be doing some work to be able to process polymetallic material in our mill.

The engineering studies are progressing. We have the engineering firms on-site this month to optimize the layouts because we have although it looks like we have lots of space, we have to remove some of the old installations in order to install the the the new circuit, and try to optimize and have a flexible a very flexible circuit that can treat both type of materials: the pure copper that we have right now and the polymetallic.

In addition to that, we have been doing lots of test works to produce pyrite concentrate from our tailings due to the strong interest from the market. We have had a lot of inquiries and and and companies wanting to to get access to our our pyrite concentrates, because basically our waste is composed by silicates and a little bit of pyrite, and it's ground, it's quite clean, and it's a perfect stream to be sold into the market.

As the sulfuric market as as is a it looks like is is coming to a point of deficit, and some of the the people that that produce sulfuric acid are looking to diversify and produce some of the sulfuric acid through through the burning, through the roasting of of pyrite. The important project in our growth portfolio, as you all know, is Touro.

In Touro, we are really hoping to receive the environmental impact declaration soon. We have been expecting this for for weeks, if not months.

We now know that all the the reports have been have been positive, we we have them. We know that the the civil servants are are preparing the the the declaration.

Unfortunately, we cannot give any additional color of on timing, because it's out of our control. We know there's no additional steps, no additional papers, nothing, simply in their in their hands to to to finalize the drafting.

We believe it can be soon, but we all know also the the the complications that the summer can bring with with less people and available and so on, but we are quite positive and actually we are getting ready for that. We have already completed all the geotechnical studies at the plant site in order to push ahead the moment that the moment that that we are receiving this this final permits at Touro.

What's the plan? The plan of of of Atalaya is is basically that we have said before.

We are quite positives in the years ahead. We have several attractive projects, pipeline of projects in Spain.

These projects could take us to around 100,000 tons of copper equivalent. Of course, the big contribution would come from Touro, but also high grades from Masa Valverde, and the production of lead-zinc concentrates in addition to the copper concentrates from Rio Tinto will also contribute to that.

Right now, we are we have the teams, which is very important, very low rotation in our in our teams, experienced teams. We have an excellent balance sheet with well over €300 million net cash in in our balance sheet and no debt, and we will be looking for it to raise some natural debt.

Of course, the the team continues to to to look at new things, to apply their experience. They have been there in the development of mining projects in Spain in the last years.

I would say our teams, some of our people have participated in the the last mines that were developed in Spain and some in Africa, and we have the ingredients to grow. I think we are very well positioned that in in less than three years, we'll be in this almost doubling our our production of copper equivalent in in all in Spain.

We continue to look at at any other opportunity that can be around. With that, I think I will I will open the floor for any questions, maybe the operator can introduce.

Hi. Can you guys hear me?

Yes.

Hi. Good morning.

Thanks so much for the call. My first question is just on the capex deferral, just on San Dionisio.

Once you've moved that electric line, how quickly do you expect to access those higher-grade zones, and what's a realistic timeline for that meaningful San Dionisio ore contribution to the mill? Just on Masa Valverde, you've indicated the board decision is expected later this quarter.

Can you just confirm what the key remaining gating items are? What's the construction and first ore timeline look like once approval is given?

The electric line is something that has already been constructed out by Endesa, the big company that owns the line and is the main supplier in the south of Spain. The timeline, I suppose the only question here is the availability of maybe people or teams during the summer period.

As soon as they remove it, we can access that immediately. When I mean immediately, it's days.

After that, we have equipment, it's there. We were mining as close as we were permitted.

How can this affect the production, I would say probably late this year or early next year. I don't think it will be weeks, I think it will be months.

Probably fourth quarter. At Masa Valverde, really not much left.

We continue drilling with two rigs, mainly concentrating in the copper zones. The contractor has been selected.

As soon as we have the decision to go ahead, which as I say will likely be August, September, with everything on surface is ready, we can get there. The contractor can, depends on the speed there and the rock conditions, which are expected to be quite good, can take from 2 years to 3 years.

We say 2.5 years to complete the whole ramp. We can access ore probably earlier than that, around 2 years, but not earlier than that.

We will concentrate directly in the copper zone. We will go through an area of polymetallic with very good grades, but unless we have the circuit of Rio Tinto ready, we would not be mining that, we'll go directly into the copper zone with grades between 1.5% to 2% copper.

Production of copper, I would say the best thing is 2.5 to 3 years to be conservative. That's probably the time for this new copper production.

That looks very, very clear. What's the kind of project sequencing look like more broadly, and how are you thinking about staggering those different projects, especially with the Touro permit potentially coming quite not far behind?

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

In our case in Spain, we don't expect any issues. We have already preselected the contractor, and there's availability of equipment and people.

That's for Touro, both. Talking about mining contractor and the construction teams.

The project of Touro itself is not very complicated. The key will be the availability of equipment, which we have already a permit from the board to purchase the key equipment like the gyro crusher, the SAG mill, the ball mill, and flotations and filters, which are basically 50 weeks, between 45 and 55 weeks delivery time.

We are going to be doing that immediately as soon as we get the environmental permit. I expect the Touro project to take 18 months of construction.

Maybe it could be 1 month less or whatever for commissioning and so on, but basically 18 months is typical. Could be a little bit less, but not much less.

We are looking at other projects in Spain, in other places. Look, availability of teams is important.

There have been cases where we have been offered things in South America where really it would be a big stretch for us, we would have to rely total local contractors, suppliers, and that would probably be a problem. In Spain, Portugal, Europe, it's not a problem.

Perfect. Understand.

Thanks so much, and I'll pass it along to someone else.

Yep. Good morning, Alberto.

Buenos dias. Just a little bit of a question about the polymetallic.

Can you talk to us a little bit about the capital costs for this, and when do you actually need to have this ready to take ore? Is this still one or two years away?

That's a good question because actually if we didn't mine any of the polymetallic, we would have 10 years ahead of us or 9 years ahead of us without needing to bring any polymetallic material. The fact of having this polymetallic can allow us to start blending in materials from different places and have a better operation.

When I mean a better operation, I mean that some of the future polymetallics are going to be underground. As going underground for a very large plant is very difficult if you don't have an open pit to be blending the large chunk of the material.

That's the reason why we want to bring this ahead as soon as possible. When is as soon as possible?

I would say 1.5 years. It's also from now.

The site is very advanced. What does it include in capital costs?

The first pass, we had €88 million, and that included installing a finer grinding lines, plus all the zinc. Additional grinding lines, all the zinc and lead and filters in addition basically to recover, in addition to the copper, the lead-zinc.

Look, and of course it also required fine grinding with vertical mills or similar ceramic ball mills. We are trying to optimize that a little bit, probably reduce a little bit the capex, and we are in the final stages to try to use the excess capacity that we would have in the grinding side, because we have excess capacity, and maybe try to reduce that €88 million.

That's the way it would work is that when we are processing only polymetallic, we would be processing higher rate of copper, and of course lead and zinc, but we would be reducing the tonnage through the mill. Instead of going at 2,200 tons an hour through the SAG, we will be going, I think it was 1,200 or something like that.

Now we're looking how this excess grinding capacity can be optimized, and still be producing the same material. First pass is €88 million, trying to reduce that a little bit.

When? The sooner the better.

It's not essential, if it's delayed 3 years it wouldn't matter, but it doesn't make any sense. The sooner we can make it, the more flexible it will be for us in the future.

Just

I assume this has got differential flotation to separate the lead-zinc from the copper. Does that mean that you're now giving up on E-LIX?

Actually, it's a very good question because we are not. Actually we are going to go like we are doing differential flotation.

That's absolutely to go for the safe bet. In E-LIX, we have been working now for 100 days continuously without stopping the plant.

Really is without stopping. The problem is that it's only running 3, 4 tons an hour.

Basically, it's running, let's say, 90 tons per day of concentrate. It's processing right now, we made some bulk flotation of several zones specifically to feed the plant, which had good copper grade, but also contained lots of zinc.

We are feeding with material that has around 13% copper and around 15% zinc. The E-LIX is removing the zinc very well, and leaving it in around 2% or even less.

Then the copper grade goes to around 16%, which we blend with our normal material. It also recovers silver, and both the silver precipitate and the zinc precipitate, which is a carbonate of zinc with around 45% to 47% zinc, is blended with zinc precipitates through a trader, and we get paid for it like a concentrate.

Right now this is working already, but I would call it a big pilot plant, like an industrial-scale pilot plant. Are we giving up?

We will go with the safe bet, and if we can debottleneck, which we are seeing what are the bottlenecks to be able to treat more tons. We know it works.

What's the bottleneck to treat more tons? We see energy is one of the things, filtering capacity, settling capacity of the precipitates, things that can be sorted out very well.

That's what we are studying. Right now, we are keeping with the safe bet, and the other one is running to make sure it doesn't cost us money.

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

San Dionisio, San Antonio, and Masa Valverde, yeah. San Antonio, we have almost completed the drilling.

It's just east of Rio Tinto. San Dionisio, most of it is open pit, and we are looking how we can increase the open pit and extract much more open pit than underground.

Masa Valverde, in addition to the copper zone, there are areas around good lead-zinc and copper grades. We have a few other deposits called Mojarra, Campanario, whatever, which are not even in the resource let's say blocks, kind of drilled, but we're still evaluating, which are also polymetallic.

Main material, which is the only one we are counting for this project, is San Dionisio open pit and underground, San Antonio underground, and Valverde underground, combined with the leftover of the copper stockwork at Cerro Colorado.

Okay. Vale.

All right. Thanks.

I'll let somebody else ask a question. Thank you, sir.

Thanks, Jason.

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

Do we expect some pickup in grades sort of after H2? Thanks.

Yes, we expect a little bit of higher grades next year, especially when we get some of the material coming from the upper part of San Dionisio kicking in. I think this next year you should be expecting grades in the range of 0.4%.

I don't have the plan up here, but I think yes, you will see better grades next year.

Okay. Great.

Thank you. Just to follow up on the earlier question around E-LIX, in the text of the release you have this statement saying uncertainty remains regarding the recoverability of the related assets.

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

The thing is that, as we made an impairment in the investment due to the very bad financial situation of the company that runs E-LIX, and we had doubts that our investment, which basically we had loans into E-LIX, could be recovered. We were careful to include this sentence saying that although the plant is working, there's no assurance yet to reverse this impairment.

It's simply saying, look, it's working and the process is working fine, it's breaking even, but is this enough to change our impairment that we decided in the first part of the year? We are not yet sure.

Simply to be conservative.

Okay. Makes sense.

Thanks.

Alberto, just to come back on Touro. I think with the last set of results, you were making some very positive noises.

Touro any day now. I don't think those were the exact words, but something like that.

Now it seems to be taking longer again, what's the hold-up?

Look, I don't know. You're right.

I've been wrong so many times that I almost feel embarrassed here. I feel embarrassed.

I have to say because I'm from the region. Last quarter, the reports were ready.

They said that they could send us anytime. Finally, we received them in I think it was in July or early July, totally signed.

Then they ask us for, okay, can you make a summary of the project, like a compendium of the project? We said, well, why didn't you ask this before?

Because it's 20,000 pages, and they needed that to kind of finalize the DIA. We prepared that, sent it to them with meetings and clarifications, basically to prepare the DIA.

Why I think now there's no more work, simply because they are working already on it. They told us.

We know the person that's preparing this. What's holding up?

I suppose there are civil servants that politicians cannot go and ask them to work if they have a planned holiday on the 15th of July or the 15th of August. It doesn't matter what they say, they will go out for holidays.

I suppose this is what's holding up. Really nothing else, but there's no more send me a new summary, a new project, or a new whatever.

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

There're lots of signs going on there. When?

When the guy finally finalizes. We always believed it was going to be in summer.

When was the past certain point, it was going to be in summer because if they're scared, the politicians sometimes are scared or worried or about the noise, probably summer is a quieter period. We have had positive environmental impact declarations in lots of places in Spain in any month of the year.

I think it can happen anytime. Could it be in September?

Could it be in August? I hope so.

Could it be early September? Yes.

Certainly not going to go much more than that, because there's no excuse. No excuse.

Okay. Just a question on the exploration in Sweden.

Don't want to get too excited about drill results and intercepts, but still smells kind of interesting. How are you thinking about a timeline to a resource in Sweden?

Oh, timeline is difficult to say. I think exploration is difficult because now we have good results, but it would be a few million tons, it would be not enough to have a project to be developed.

There are two zones, the Skellefte and the Rockliden areas. I think this winter campaign will provide us a little bit more color because until now, we were going very conservative following up intercepts and anomalies, while now this year we expect to do some step-outs to show is there something big there, or is it better to look at different options to farm it out or to explore different alternatives?

I think this winter season, which is starting, we are already mobilizing rigs in the North Belt, will be essential to understand if we have a deposit there that are worth mining by themselves or to do anything with them. It's early days.

In the other belt in Rockliden, it's still a little bit early. Skellefte has a few good areas.

Okay. Perfect.

Thanks for that, sir.

Thanks.

Hi. Good morning, everyone.

My question is just a follow-up to the polymetallic question. I'm just wondering, does this mean that you're thinking about publishing an update to the 2023 PEA?

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

You obviously mentioned a kind of a little bit about the plant potential capital, but from memory, there's a lot of mine development as well that went with that. Any sort of color on that would be very helpful.

That's a very good question. We will have to at certain time update the PEA, yes.

When? I would say next year, certainly not this year.

You are 100% right that what has changed from that year, which is a little bit, as you say, already outdated, is the timing. Things have slipped, which means the the timing of the blends are different, I would say that's that's the first adjustment.

Otherwise, in principle, it's still the same. It's it's basically having a a some material being mined from San Antonio.

It there is we already have the the designs of of access ramps, of of mining, and and and even preliminary mining designs. The access to San Antonio is through a ramp of around 1.2 kilometers from one of the sides of the Cerro Colorado pit, in the in the east side.

We already have where it's going, the rock conditions, and so on. We were basically waiting to finalize the infill drilling, which is it's about to be finished, there should be only three or four holes remaining.

That's that basically what it includes is is a ramp, access ramp in connection with a raise shaft there for emergency exit and ventilation. That's one thing.

In the case of San Dionisio, most of it is open pit, we want to optimize that open pit to try to do as much open pit as possible. That includes the final results of geotechnical campaign, because the one of the sides, most of most of the rock is very good, but there's one side that has some shales that require a much slower slope, and we have to to finalize the geotechnical study, which has been carried out.

When is going to be this update? I would say next year.

I don't think we'll have time to do it this year. The scope itself is is similar to what it was previous year.

Not not big difference. The only thing is what changes is the timing.

Okay. All right.

No, that's very helpful. Thank you.

I'll pass it on.

Okay. Thank you very much.

Only to thank you everybody to be here this morning with us. Thanks for your continued support.

We look forward to an excellent second part of the year and finally getting Touro, which we are all looking for that. Thanks a lot.

Thanks a lot.