Atalaya Mining Regulatory News (ATYM)

Atalaya Mining Plc

("Atalaya" or the "Company")

Half Yearly Financial Statements

Atalaya Mining plc (AIM:ATYM, TSX:AYM), the European mining and development company, announces its unaudited quarterly and interim results for the three and six months to June 30 2016, together with the unaudited, condensed interim consolidated financial statements.

The complete unaudited, condensed half yearly financial statements displayed below, are also available under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.atalayamining.com

Period Highlights

· The Expansion Project was declared mechanically complete during the first week of May 2016, ahead of schedule and under budget.

· The ramp-up process progressed according to plan. Copper production increased by 10% in Q2 2016 to 4,442 tonnes, compared with 4,048 tonnes in Q1 2016. The 10% increase in production during the second quarter was significant considering the plant was temporarily shut down as a result of both the tailings discharge suspension by the Junta de Andalucía and the interruptions required to commission the Expansion Project.

· 1.3 million tonnes of ore were processed, compared with 1.1 million tonnes during Q1 2016, representing a 15% increase. Production levels in June 2016 increased to an annualised rate of 6.8Mtpa, in line with the ramp-up schedule. This trend continued in August 2016 with annualised rate equivalent to 8.3Mtpa.

· Copper grade in the final concentrate was consistent with the previous quarter, reporting 21.43% in Q2 2016 as compared to 21.33% for Q1 2016. Recoveries were lower at 80.46% during Q2 2016, compared with 84.26% during Q1 2016. Recoveries increased back to over 84% during July and August, which is the expected rate of the new flotation circuit.

· Atalaya announced commercial production in February 2016 with revenues of €17.7 million and €22.6 million for the three months and six months period, respectively. Negative EBITDA of €1.1 million and €3.6 million was recorded for the three months and six months period respectively. EBITDA values were significantly impacted by ramp-up of production but have improved in Q2 2016 as compared to Q1 2016 and are expected to improve further in Q3 2016.

· The average market prices of copper for the three and six months ended 30 June 2016 amounted to US$2.21/lb for the second quarter and US$2.16/lb for the six months. The Company's realised copper prices for the same periods were US$2.11/lb and US$2.06/lb respectively. As commercial production was declared in February 2016, no comparative operational data was available for 2015.

· Operating cash costs per pound of payable copper were negatively impacted by the normal ramp-up process and the temporary suspension. Cash costs for Q2 2016 were $2.36/lb whereas for H1 2016 were $2.31/lb. These costs are projected to come down as nameplate capacity is reached and steady state production is achieved.

· Inventories of concentrates at 30 June 2016 amounted to €6.2 million.

· Capital expenditure for the six months ending 30 June 2016 amounted to €17.1 million.

· Astor case - Atalaya continues to work closely with its legal advisors in preparing for trial at the High Court of Justice in London, with the date for the trial having been set for 30 January 2017. Atalaya remains confident of a positive outcome of the upcoming trial and will update shareholders following the trial, or if there are any material developments in the meantime.

Events after the reporting period

· The Company announced the appointment of Cesar Sanchez as Group Chief Financial Officer.

· An updated Reserves and Resources statement was released indicating a 12% increase in contained reserves and extended life of mine to 16.5 years.

· BMO Capital Markets Limited was appointed as Joint Corporate Broker.

· On 5 September 2016, the Company announced the completion of a US$14 million prepayment funding facility with Transamine Trading S.A. The facility covers part of the Group's short term working needs in order to support itself through the ramp-up phase. The Group continues to work on alternative funding solutions to improve its balance sheet and its working capital position during the ramp-up period to full expanded production.

Alberto Lavandeira, CEO commented:

"We continue to be satisfied with the rapid progress of the successful commissioning of the plant expansion. The Company experienced a couple of isolated operational incidences that together with the weak copper price have adversely affected the operations and results. We nevertheless remain confident that with the ramp up of the expansion and with steady throughput being rapidly achieved, the Company is moving to positive cash generation in the coming months. We continue to remain bullish on the long term outlook for copper."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

Contacts:

ATALAYA MINING PLC

MANAGEMENT'S REVIEW AND

CONDENSED INTERIM CONSOLIDATED

FINANCIAL STATEMENTS

30 JUNE 2016

(UNAUDITED)

Notice to Reader

The accompanying unaudited condensed interim consolidated financial statements of Atalaya have been prepared by and are the responsibility of Atalaya's management. The unaudited, condensed interim consolidated financial statements have not been reviewed by Atalaya's auditors.

Introduction

This report provides an overview and analysis of the financial results of operations of Atalaya Mining plc and its subsidiaries ("Atalaya" and/or the "Group"), to enable the reader to assess material changes in the financial position between 31 December 2015 and 30 June 2016 and results of operations for the three and six months ended 30 June 2016 and 2015.

This report has been prepared as of 6 September 2016. The analysis, hereby included, is intended to supplement and complement the unaudited, condensed, consolidated financial statements and notes thereto ("Financial Statements") as at and for the three and six months ended 30 June 2016. 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 2015, and the unaudited, condensed consolidated financial statements for the three months ended 31 March 2016. These documents can be found on the Atalaya website at www.atalayamining.com.

Atalaya prepares its Financial Statements in accordance with International Financial Reporting Standards ("IFRSs"). 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 constitutes 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. Highlights - three and six months ended 30 June 2016

Operational performance

· The expansion project was declared mechanically complete during the first week of May 2016, ahead of schedule and under budget.

· Copper production increased by 10% in Q2 2016 to 4,442 tonnes, compared with 4,048 tonnes in Q1 2016. The increase in production was significant considering the plant was temporarily shut down due to the administrative tailings discharge suspension and interruptions required to commission the expansion project.

· 1.3 million tonnes of ore were processed compared with 1.1 million tonnes during Q1 2016, representing a 15% increase.

· Ramp-up of production is continuing as planned, with the plant now running at 8.3 Mtpa with accumulated production for July and August being 26% higher than Q2 2016. Full plant throughput rate of 9.5 Mtpa expected to be achieved by the end of 2016.

· Copper grade in final concentrate remained consistent at 21.43% while recoveries decreased to 80.46% during Q2 2016, compared with 84.26% in Q1 2016. Recoveries increased back and continued to average over 84% in July and August.

· An updated Reserves and Resources statement was released following the end of Q2 2016, indicating a 12% increase in contained reserves and extended life of mine to 16.5 years.

Financial performance

· Atalaya announced commercial production in February 2016 with revenues of €17.7 million and €22.6 million for the three months and six months period, respectively.

· Negative Earnings Before Interest, Taxation, Depreciation and Amortisation ("EBITDA") of €1.1 million and €3.6 million for the three months and six months period respectively. EBITDA values were significantly impacted by ramp-up of production but have improved in Q2 2016 as compared to Q1 2016.

· Inventories of concentrates at 30 June 2016 amounted to €6.2 million.

· Capital expenditure for the six months period ended on 30 June 2016 amounted to €17.1 million.

1. Highlights - three and six months ended 30 June 2016 (continued)

Funding

· On 5 September 2016, Atalaya announced the completion of a US$14 million prepayment funding facility with Transamine Trading S.A. The facility covers part of Atalaya's short term working needs in order to support itself through the ramp-up phase. Atalaya continues to work on alternative funding solutions to improve its balance sheet and its working capital position during the ramp-up period to full expanded production.

2. Overview of operational results

The following table presents a summarised statement of operations for the three and six months ended 30 June 2016. As commercial production was declared in February 2016, no operational data was available for 2015.

Note: The numbers in the above table may slightly differ between them due to roundings.

* Quarterly operation data compared to prior quarter. Commercial production started in February 2016.

** For comparison purposes, the six months figures include pre-commissioning production for January 2016.

*** There were no operations in 2015.

Expansion Project

During the first week of May 2016, the expansion project was declared mechanically complete, ahead of schedule and under budget. Commissioning of the new equipment and subsequent handover to the operations team took place during the latter part of the quarter. Production levels increased to an annualised rate of 6.8 Mtpa in June, in line with the ramp-up schedule. This trend has continued and the annualised rate achieved during August was equivalent to 8.3 Mtpa.

Phase 1 of the plant ramp-up was performing well at the start of the quarter before operations were temporarily suspended by the Junta de Andalucía. During the suspension period, which was lifted on 4 May 2016, the site team integrated the new expansion equipment into the existing Phase 1 section, which then allowed commissioning and ramp-up to move continuously through May.

Mining and Processing

Copper production increased by 10% during Q2 2016 to a total of 4,442 tonnes compared with 4,048 tonnes during Q1 2016. The increase was adversely impacted by the temporary operational suspension due to the tailings discharge issue as well as the interruptions required to connect the Expansion of the plant to the Phase 1 Project. Copper grade in the final concentrate was consistent with the previous quarter, reporting 21.43% in Q2 2016 as compared to 21.33% for Q1 2016. Recoveries were lower at 80.46% during Q2 2016, compared with 84.26% during Q1 2016. Recoveries increased back to over 84% during July and August, which is the expected rate of the new flotation circuit.

A total of 1,308,780 tonnes of ore was processed during Q2 2016, compared with 1,133,948 tonnes during Q1 2016. A total of 1,343,400 cubic metres of waste was removed during Q2 2016 compared with 935,452 cubic metres during Q1 2016. The accumulated cash cost per lb of payable copper for the six months period of $2.31/lb was impacted by the cost scale of an expanded plant, but with lower production levels and a temporary stoppage of production in Q2 2016.

Ramp-up of production is progressing as planned, with the plant now running at 8.3 Mtpa annualized capacity and having produced 3,175 tonnes of copper during August. This is approximately a 30% improvement over July`s production of 2,442 tonnes of copper. Accumulated production for July and August 2016 is already 26% higher than the production of the second quarter of 2016, and is an indication of the good progress of the ramp-up of the Expansion Project that is expected to be working at full capacity by the end of 2016.

Exploration and Geology

Following the end of Q2 2016, a Reserves and Resources statement was released on 14 July 2016. Total open-pit mineral reserves have increased from 123 million tonnes at 0.49% Cu to 153 million tonnes averaging 0.45% Cu using variable, declining cut-off grades, representing a 12% increase in contained metal. Total open-pit Measured and Indicated Mineral Resources were estimated at 193 million tonnes averaging 0.43% Cu, compared with the previous estimate of 203 million tonnes at 0.46% Cu. Inferred Mineral Resources increased to 23 million tonnes averaging 0.48% Cu, from 2 million tonnes at 0.50% Cu.

An exploration drilling campaign has been initiated during the quarter to evaluate historical mineral resources around both the Corta Atalaya and Filon Sur pits.

2. 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 Introduction note of this report.

Operations

The Riotinto Project operational guidance for 2016 is as follows:

The average head grade for 2016 is expected to be between 0.48% Cu and 0.50% Cu with a recovery rate of approximately 80%. Cash operating cost is expected to be within $2.05/lb to $2.20/lb of payable copper in the second half of the year.

3. Overview of the financial results

The following table presents a summarised consolidated income statements for the three and six months ended June 2016 with comparatives for the three and six months ended June 2015.

As at 30 June 2016, Atalaya shows revenues amounting to €22.6 million. Revenues include sales of concentrate to off takers during the period. Total operating costs include operating production costs amounting to €22.9 million.

Administrative expenses for the period included head office costs, costs associated with a publicly listed company and any costs incurred by Atalaya not directly linked to production. The cost for the period ended 30 June 2016 amounted to €5.2 million. Exploration costs amounted to €0.7 million.

Realised copper prices

The average prices of copper for the three and six months ended 30 June 2016 are as summarised below. As commercial production was declared in February 2016, no operational data was available for 2015.

4. Non-GAAP Measures

Atalaya has included certain non-IFRS measures including "EBITDA", "Cash Operating Cost per pound of payable copper" and "realisable prices" 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 all operating costs in the operation, excluding finance, tax, depreciation and amortisation expenses. The realised price for copper concentrates is the average price of copper per tonne sold over the period under analysis.

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

5. Liquidity and capital resources

Atalaya monitors factors that could impact its liquidity as part of the 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 costs and administrative costs.

The following is a summary of Atalaya's cash position and cash flows as at 30 June 2016 and 31 December 2015 and for the six months ended 30 June 2016 and year ended 31 December 2015:

Liquidity information

Unrestricted cash and cash equivalents as at 30 June 2016 decreased to €10.2 million from €18.6 million at 31 December 2015. The decrease in the cash balances is the result of capital expenditures incurred in the period related to the finalisation of the expansion project, certain ramp-up inefficiencies and slow revenues cash inflows. Atalaya reported a working capital deficiency of €28.6 million at 30 June 2016 compared with €6.4 million at 31 December 2015.

6. 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 denominated in Euros ("EUR") and to a much lesser extent in British Pounds ("GBP") and USD. Accordingly, fluctuations in the 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 30 June 2016, Atalaya recognised a foreign exchange loss of €183,000 whilst for the six months ended 30 June 2016, Atalaya recognised a foreign exchange loss of €277,000.

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

During Q2 2016, Atalaya signed certain short term hedging agreements to ensure a competitive rate to USD. Further information on the hedging agreements is disclosed in the Financial Statements (Note 14).

7. Contingencies

Astor

Following the announcements on 2 November 2015 and 26 May 2016, Atalaya continues to work closely with its legal advisors in preparing for trial at the High Court of Justice in London. The date for the trial has been set for 30 January 2017. Atalaya remains confident of a positive outcome of the upcoming trial and will update shareholders following the trial, or if there are any material developments in the meantime.

More details on contingencies are included in Note 17 of the Financial Statements that follow.

8. Off-balance sheet arrangements

Atalaya has no off-balance sheet arrangements.

9. Risk factors

Due to the nature of Atalaya's business in the mining industry it is subject to various risks that could materially impact the future operating results of Atalaya 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 2015.

10. Critical accounting policies, estimates and accounting changes

The preparation of Atalaya's Financial Statements in accordance with IFRS requires management to make estimates 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 2015.

11. Other information

Additional information about Atalaya Mining Plc is available at www.atalayamining.com

Atalaya Mining Plc

(All amounts in Euro thousands unless otherwise stated)

Condensed interim consolidated income statements

(unaudited)

Condensed interim consolidated statements of financial position

(unaudited)

Condensed interim consolidated statements of changes in equity

(unaudited)

Condensed interim consolidated statements of cash flows

(unaudited)

Atalaya Mining Plc

 (All amounts in Euro thousands unless otherwise stated)

Notes to the condensed interim consolidated financial statements

For the three and six months to 30 June 2016 and 2015 - (Unaudited)

1. General information

Country of incorporation

Atalaya Mining Plc ("Atalaya Mining" and/or the "Company"), and its subsidiaries ("Atalaya" and/or the "Group"), 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 Group has offices in Minas de Riotinto in Spain and in Nicosia, Cyprus. The Company was listed on AIM of the London Stock Exchange in May 2005 and on the TSX on 20 December 2010.

Change of name and share consolidation

Following the Company's Extraordinary General Meeting ("EGM") on 13 October 2015, the change of name from 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 Stg £0.075 for every 30 existing ordinary shares of nominal value Stg £0.0025.

Principal activities

The principal activity of the Company and its subsidiaries is to operate the recently commissioned Rio Tinto Copper Project ("Proyecto Riotinto") and to explore and develop metal 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 metals mineralisation in the European region.

2. Basis of preparation and accounting policies

Basis of preparation

The condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) including International Accounting Standard 34 "Interim Financial Reporting" and IFRIC interpretations as adopted by the European Union (EU), using the historical cost convention.

These condensed interim consolidated financial statements are unaudited and include the financial statements of the Company and its subsidiary undertakings. They have been prepared using accounting bases and policies consistent with those used in the preparation of the consolidated financial statements of the Company and the Group for the year ended 31 December 2015. These condensed interim consolidated financial statements do not include all of the disclosures required for annual financial statements, and accordingly, should be read in conjunction with the consolidated financial statements and other information set out in the Company's 31 December 2015 Annual Report. The accounting policies are unchanged from those disclosed in the annual consolidated financial statements.

The Directors have formed a judgment at the time of approving the financial statements that there is a reasonable expectation that the Company and the Group have adequate available resources to continue in operational existence for the foreseeable future. 

The condensed interim consolidated financial statements have been prepared on the basis of accounting principles applicable to a going concern which assumes that the Company will realise its assets and discharge its liabilities in the normal course of business. These condensed interim consolidated financial statements do not give effect to any adjustment, which would be necessary should the Company be unable to continue as a going concern and, therefore, be required to realise its assets and discharge its liabilities in other than the normal course of business and at amounts different than those reflected in the consolidated financial statements.

Fair value estimation

The fair values of the Company'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 trading 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 Company 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 Company 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 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).

Use and revision of accounting estimates

The preparation of the condensed interim consolidated financial statements requires the making of estimations and assumptions that affect the recognised amounts of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Adoption of new and revised International Financial Reporting Standards (IFRSs)

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 2016. The adoption of these Standards did not have a material effect on the condensed interim consolidated financial statements.

Critical accounting estimates and judgements

The fair values of the Group's financial assets and liabilities approximate their carrying amounts at the reporting date. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are unchanged from those disclosed in the annual consolidated financial statements.

Provisions 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 a reliable estimate of the amount can be made. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

3. Business and geographical segments

Business segments

The Group has only one distinct business segment, being that of mining operations, mineral exploration and development.

Geographical segments

The Group's mining and exploration activities are located in Spain and its administration is based in Cyprus.

4. Net finance cost

5. Basic and fully diluted loss per share

The calculation of the basic and fully diluted loss per share attributable to the ordinary equity holders of the parent is based on the following data:

* Adjusted for the 30:1 share consolidation which took place in October 2015

6. Property, plant and equipment

(1) Rehabilitation provision

(2) Stripping costs

(3) Includes motor vehicles, furniture, fixtures and office equipment which are depreciated over 5-10 years.

The above property, plant and equipment is located in Cyprus and Spain.

7. Intangible assets

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 has increased the life of mine to 16 ½ years). The ultimate recoupment 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 sale of the respective areas. The Group conducts impairment testing on an annual basis unless indicators of impairment are present at the reporting date. In considering the carrying value of the assets at Proyecto Riotinto, including the intangible assets and any impairment thereof, the Group assessed the carrying values having regard to (a) the current recovery value (less costs to sell) and (b) the net present value of potential cash flows from operations. In both cases, the estimated net realisable values exceeded current carrying values and thus no impairment has been recognised. Goodwill of €9,333,000 arose on the acquisition of the remaining 49% of the issued share capital of Atalaya Riotinto Minera S.L.U. ("ARM") back in September 2008. This amount was fully impaired on acquisition, in the absence of the mining license back in 2008.

8. Inventories

9. Trade and other receivables

The fair values of trade and other receivables approximate to their carrying amounts as presented above.

10. Share capital and share premium

Authorised capital

2015

*Following the Company's EGM on 13 October 2015, the consolidation of ordinary shares came into effect on 21 October 2015, whereby all shareholders received one new ordinary share of nominal value Stg £0.075 for every 30 existing ordinary shares of nominal value Stg £0.0025.

2016

The Company's authorised share capital is 200,000,000 ordinary shares of Stg £0.075 each.

Issued capital

2016

No shares were issued in the period from 1 January 2016 to 30 June 2016.

Warrants

The Company has issued warrants to advisers to the Group. Warrants, noted below, expire three or five years after the grant date and have exercise prices ranging from Stg £1.425 to Stg £3.150.

Details of share warrants outstanding as at 30 June 2016:

11. Other reserves

Share options

No share options were issued in the period from 1 January 2016 to 30 June 2016. Details of share options outstanding as at 30 June 2016:

12. Trade and other payables

The fair values of trade and other payables due within one year approximate to their carrying amounts as presented above.

* On 25 May 2010 ARM recognised a debt with the Social Security's General Treasury in Spain amounting to €16.9 million that was incurred by a previous owner in order to stop the execution process by Public Auction of the land over which Social Security had a lien. €13.5 million has been repaid to date. Originally payable over 5 years, the repayment schedule was subsequently extended until June 2017.

13. Provisions

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.

14. Derivative instruments

As at 30 June 2016, Atalaya had certain short term foreign exchange contracts. The contracts were in an unrealised gain position which was recorded as a foreign exchange gain in the income statements (30 June 2016 - €54,000), as part of net foreign exchange loss, the corresponding receivable amount recorded in other receivables. The relevant information of the contracts is as follows:

Foreign exchange contracts - Euro/USD

The counter parties of the foreign exchange agreements are third parties.

15. Acquisition and disposal of subsidiaries

There were no acquisitions in the six months ended 30 June 2016.

16. Related party transactions

The following transactions were carried out with related parties:

16.1 Compensation of key management personnel

The total remuneration and fees of Directors (including Executive Directors) and other key management personnel was as follows: