Investor presentation november final

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<ul><li>1.Disclaimer:The contents are not to be reproduced or distributed to any third party, including the public or press. Theinformation contained herein, while obtained from sources which we believe are reliable, is not guaranteedas to its accuracy or completeness. The company is a development stage mineral resource explorationcompany and many of its mineral projects have yet to be proven to be economic. Certain information setout herein in relation to the Companys advanced projects is based on technical reports that are incompliance with NI 43-101 that are not yet final. The reader is cautioned that such information is subject tochange, although management does not anticipate any material deviations.The contents of this presentation is for informational purposes only and does not constitute an offer to sellor a solicitation to purchase any securities referred to herein.Forward looking statementsThis presentation includes certain forward-looking statements about future events and/or financial resultswhich are forward looking in nature and subject to risks and uncertainties. Forward-looking statementsinclude without limitation, statements regarding the companys plans, goals or objectives and futurecompletion of mine feasibility studies, mine development programs, capital and operating costs,production, potential mineralization, resources and reserves, exploration results and future plans andobjectives of MBAC. Forward-looking statements can generally be identified by the use of forward-lookingterminology such as "may," will," "expect," "intend," "estimate," "anticipate," "believe," or "continue" or thenegative thereof or variations thereon or similar terminology. There can be no assurance that suchstatements will prove to be accurate and actual results and future events could differ materially from thoseanticipated in such statements. Important factors that could cause actual results to differ materially fromexpectations include risks associated with mining generally and pre-development stage projects inparticular. Potential investors should conduct their own investigations as to the suitability of investing insecurities of MBAC Fertilizer Corp. 2</li></ul><p>2. To be a significant integrated producer of phosphate and potash fertilizers and related products in the Brazilian and Latin American markets SANTANAPHOSPHATEITAFSAMPAMAHigh grade phosphate depositPHOSPHATE strategically located: near thePIItafs Arraias SSP Project is a border of Para and Mato Grosso TOunique, low capex project located in MT states. Meeting animal feed BAthe centre of Brazils largest Brasiliaphosphate and fertilizer demand inGOthe Center-West Brazil.agricultural region that will providenear-term cash flow, with start-up MGPFS completedexpected in Q4 2012, producing 500SP Rio de Janeiroktpa of SSP. So Paulo ARAXExcellent logistic advantage. PHOSPHATE /REE/NbThe project is funded and currently High grade Phosphate and Rareunder constructionEarth Elements/Niobium deposit.PEA completed BRAZIL New Agricultural Frontier3 3. Current Capital StructureDirectors &amp; Management Symbol/Exchange TSX: MBC Shares Outstanding118.4M Peter Marrone Chairman and DirectorOptions 9.2M Fully Diluted 127.5M Denis Arsenault, CADirector Management &amp; Directors ~14%Alexander Davidson Director Current Share Price$3.25 52 wk High/Low $3.75-$2.50 Brian HaywardDirector Market Capitalization ($ millions)$382.4Ralph JudahDirector Stock Chart 52 Week (MBC.TO)3.3 Hon. David PetersonDirector2.8Leonardo Marques da SilvaDirector2.31.8Antenor Silva CEO and Vice-ChairmanRoberto Busato Belger President and Chief Operating OfficerResearch Coverage Canaccord Genuity Keith CarpenterCarlos BragaVP, Technical Services Paradigm Capital Spencer ChurchillRodrigo Pinto, CAVP, Finance and CFO Raymond James Steve Hansen BMO Capital MarketsJoel JacksonSteve Burleton VP, Corporate Development GMP Securities Anoop Prihar National Bank Financial Robert Winslow Antnio NagleVP, Administration 4 4. Acquisition ofmining rights, UpdatedoperationsUpdated IFC increasesNI 43-101 M&amp;I(including taxreserves &amp; pre- Constructionloan facility to resources onbenefits) of Itafs feasibility studyDefinitiveLicense issuedUS$65M throughAraxMinerao for the Itafs Feasibility Studyfor Itafs SSP syndication(Phosphate) - Arraias Project for Itafs ArraiasArraias Project process 6.3 MT @ 5% Campos Belos, resource at 24 Project by AMEC TREOGO, BrazilMtOct 2008 Mar 2010Sep 2010 Mar 2011 Sep 2011 Jun 2012 Dec 2009 Jun 2010Feb 2011 Sep 2011Apr 2012Sep 2012 PreliminaryEconomicMBAC went Acquisition andItau BBA approvalIFC to Invest Robust pre- Assessment public on thephosphatefinancing for R$ C$33.6 million in feasibility study (PEA) completed Toronto Stockexploration works205M via BNDES MBAC equity andcompleted for thefor the Arax Exchange in two new areas:provide US$40Santana ProjectProject Santana, PA million in debt resource at66.1 Mt NPV $967 M IRR 30%5 5. Two fundamental trends driving strong fertilizer growth in Brazil Brazilian farmers are applying more fertilizer per hectare to improve yields More hectares are being used for croppingBrazil - Planted Area for AgricultureBrazil - Agribusiness Exports 70,000 100,000 90,000 65,000 80,000 CAGR 3.1%CAGR 14.9% 70,000 1000 Hectares 60,000 US$ Millions 60,000 55,00050,000 40,000 50,000 30,000 45,00020,000 10,000 40,000 0Source: ANDA 00 01 02 03 04 05 06 07 08 09 10 11 Source: MAPA00 01 02 03 04 05 06 07 08 09 10 11 Driven by subtropical climate and land and water availability Agribusiness is one of the main contributors to GDP surplus Brazil Fertilizer Consumption 31,000 29,000 27,000 CAGR 5.1% 1000 Tonnes 25,000 23,000 21,000 19,000 17,000 15,000Source: FAO 0001 020304 05060708 09 10 1112 F6 6. FAO Monthly Food Price Index (2002-2004=100)250.0200.0 Since the early 2000s, food prices have risen significantly150.0100.0 50.0 Significant correlation between grain prices and fertilizer prices0.090 92 94 96 98 0002 04 06 081012Source: FAO Historical Soybeans &amp; Maize Prices Soya and corn are the most 700 important crops in MBACs target 600 regionUS$/ Metric Tonne 500 Soya and corn prices have tripled 400 since 2005 300 200 Increased grain prices combined 100 with the recent weakening of the0Brazilian Real has resulted in90 92 94 96 98 00 020406 081012significantly increased profitabilitySource: FAO, IndexmundiSoybeans Maize (corn) for the Brazilian farmer 7 7. Brazil consumes approximately 5 6 million tonnes of SSP per annum It is estimated that Itafs region consumes approx. 1.2 million tonnes in 2012 This is expected to grow to 1.8 million tonnes by 2020 representing a CAGR of over 4% per year SSP Consumption in Brazil 7,000,000 6,000,000364,541612,072Tonnes 312,533 5,000,000137,069 300,753137,299 225,391 4,000,0005,363,4855,033,885 5,363,485 4,707,320 4,702,201 4,223,098 4,234,959 3,000,00020052006 20072008 2009 20102011ProductionImports550SSP Prices in Itafs target Region(1)500 Current price is in450US$/tonne400the range of US$315350300 DFS US$325 per tonne250200 Price150100 US$250 per tonne 500was used in theMay-12 20042005 200620072008 2009 20102011 Aug-12Mar-12 Jun-12Jul-12Sep-12Jan-12 Feb-12 Apr-12 DFS for ItafsSource:ANDA; MBAC team analysis8(1) Brazil Producer List Prices FOB Araxa (which is about 1000 kms from MBACs target area) 8. SSP TARGETItaqu Port STRATEGIC LOCATIONMARKET Both MBAC phosphate projects, Santana Fortaleza PortOVERVIEWand Itafs, have a significant competitive(BRAZIL)advantage resulting from strategiclocation; AM MA PA Considering a radius of 500 km (target Santana PI areas), estimated 2015 SSP demand isTO500 kt and 1,070 kt, respectively, for Itafos BASantana and Arraias; 1000 MTKm Closest competitor ( ) has to transport its 750 KmGO rock from over 1,000 km to its site, which Aratuis located inside the Itafs target area;MG PortAraxa 500 Other domestic competitors are located Kmat minimum of 700 km away from MBACsites;Legend Closest Ports, Itaqui and Aratu, areSantos PortOther Domestic Closestlocated more than 1,000 km away fromCompetitor CompetitorParanagu Port MBAC sitesDomestic (Main fertilizer Port in BR) Import SupplySupply 1000 2000 Inland transportation costs are New Agricultureapprox. 6 -7 cents per tonne per kmArax Project FrontierScale: in Kilometeres 9 Source:(*) IBGE / MBAgro 9. Q2 2010 Q3 2010Q4 2012PFS DFS Construction Production 10. Resources Exploration AreaItafs NI 43-101 resource (January 2012) M&amp;I Resources of: 75.8 Mt at 5% P2O5 Inferred Resource of: 28 Mt at 5% P2O5 Plant Site Based on 75,000 m of drilling MBAC has only explored approximately 20% of its land package11 11. DOMINGOs TARGET LEGENDWaste PileMine Plan Year 3Access RoadSSP Plant Meters0250 500Date: 17/10/2012Scale: 1:13,794 Map: Charlene Resp: Jesus Vieira12 12. Mill PlantP2O5 Reactive Phosphate 5% of + Water 94 kt @ 15% P2O5MarketRevenuesP2O5 Recovery: 8.4%Mining3 Mt @ Ore Beneficiation5.4% P2O5 P2O5 Concentrate AmmoniaWaste Tailing330,000 t @ 28% P2O5 6 ktP2O5 Recovery: 55-58%SSP PowderGranulated SSP92% of 500,000 t 500,000 t RevenuesSulphuric Acid Plant ImportedSulphuric Acid 170,000 t Sulphur DCDA(1) 74,400 tElectricitySulphuric Acid Surplus3% of8 MW Market 50,000 tRevenues To be used in the process13 Note: (1) Conventional contact process 13. Fully financed project with major institutional lenders including International Finance Corporation(IFC), Ita BBA, the Brazilian Development Bank (BNDES), WestLB and Banco Votorantim DFS completed by AMEC indicated robust economics based on a 58.8 Mt resource Current M&amp;I resource stands at 75.8 Mt Only 20% of the total land package explored to date room to significantly grow resource Physical construction over 70% complete start up expected later Q4 2012DFS ASSUMPTIONS (1)UNIT FIGURESSSP Production (Phase 1)Tonnes 500,000AMMAMine LifeYears 20 PAPI TONPV ( @10%) USD MM 346 BA MT Brasilia GO MGAvg. SSP Price USD/t 325SP Rio de JaneiroAvg. SSP Cost (LOM)USD/t 120So PauloTotal Capex USD MM 258(1) Updated September 201214 14. Panoramic View Of Construction At Itafs Site15 15. Floatation Cells &amp; SAG Mill16 16. Thickener &amp; Turbo Generator17 17. Crusher &amp; Sulphuric Acid Plant 18 18. Water Dam &amp; Tailing Dam Excavation 19 19. Q3 2011 Q2 2012Q1 2013 Q1 2015PEA PFS FS ConstructionProduction 20. Santana contains a high grade phosphate resource that could produce one ormore phosphate based products for fertilizer industry (SSP/TSP) and animalfeed (Di-calcium Phosphate-DCP)Port of ItaquPort of Fortaleza Operation: Production of 500 kt of SSPAMper year, during 30 years of mine lifeMAPA Currently has 30 year LOMPI Market: Project target area is one of the TOlargest agricultural markets in theBAcountry: MT Mato Grosso state is the largest GO Legendfertilizer consumer in Brazil (est.: MGPort ofAratu1.3Mt of SSP plus 1Mt ofSantana ProjectMAP/TSP in 2011)1,000km Radius So Felix do Xingu (PA) is themunicipality with the largest 750km Radiusnumber of cattle in Brazil. 500km Radius500 kt of SSPPort of SantosScaleParanagu Port500 Km 21 21. New resource estimate completed in February 2012 shows 66.1 Mt of Indicated resources at10.6% P2O5 and 21.8 Mt Inferred at 7.9% P2O5 Resource North-East view with drill holesNew mineralized holes Resource Estimate Details Based upon 114 diamond holes (5,894.7m) andIndicated274 RC holes (12,936m); Vast majority of the drillingInferred completed at a spacing ofNapproximately 100m by 100m; 22 22. MBAC along with PegasusTSI (Florida, USA) issued a preliminary financial model for the Santana Project based on RESERVES: 44.9 Mt @ 12.1% on a 3% cut off and 114 diamond holes (5,895m) and 274 reverse circulation (RC) holes (12,936m) drilled at a spacing of approximately 100m by 100m CAPEX: Based on PegasusTSI estimates taking into account current Itafs capex with additional costs for infrastructure OPEX: Based on PegasusTSI estimatesMODEL RESULTS UNIT FIGURES Santana Drilling AreaBRL/USDRate 1.75Mine LifeYears 30NPV ( @10%) USD MM407IRR % 22%Avg. SSP Price USD/t 349 (1)Avg. SSP Cost (LOM)USD/t 131 (1)Total Capex USD MM393(1) Constant exchange rate US$ 2012 without inflation 23 23. The Project construction is schedule to start in Q2 2013 - Licensing isundergoing and production shall commence by late 2015 2012 20132014 2015Definitive Feasibility StudyConstruction LicenseFinancingConstructionCommissioning &amp; Operation24 24. Q3 2012 Q2 2013Q1 2014 Q4 2015PEA PFS FS ConstructionProduction 25. MBAC holds 214 hectares of mining claims in Project Location Minas Gerais State (near Fertilizer Cluster)Santana Area contains phosphate, rare earth elementsItafos (REE) and Niobium at or near surface Arax, MG The historical data shows excellent potential MBAC had performed confirmatory and detailing drillingREE DepositArax Project Area is close to two large operations: Vale (phosphate) and CBMM (niobium) productionVALE Mine CBMM Mine Project located in an area with highly(Phosphate)(Niobium) developed infrastructure MBAC is performing comprehensive metallurgical tests with excellent results 26 26. High grade ore results in a greater quantity of LREEs and HREEscomparable to leading global REE producersCategory Measured Indicated CategoryMeasuredIndicatedCut-Off %TREO 22Cut-Off % TREO 2% 2%Eu2O3 182158La2O3 1.5% 1.4% Gd2O3 371322 Tb4O7 38 33Ce2O3 2.8% 2.4% Dy2O3 153129Ho2O322 18Pr2O3 0.3% 0.2% ppmEr2O344 36Nd2O3 0.8% 0.7%Tm2O332 Yb2O3 23 18Sm2O3 0.1% 0.1% Lu2O3 11 Y2O3 622502LREO5.5% 4.7% HREO(ppm)1463 1217 AraxREOREO La2O3CeO2Pr6O11 Nd2O3 Sm2O3 Eu2O3Gd2O3 Tb4O7Dy2O3 Y2O3Nb2O5 Basket Value $/Kg FOB China (Sep$19 $19$105$100$53 $2,020 $92 $1,800 $920 $75 $45 2012) %27.80% 49.80% 4.60% 13.90% 1.40% 0.30% 0.70% 0.10% 0.30% 1.10%US$$5.28 $9.46 $4.83 $13.90 $0.74 $6.06 $0.64 $1.80 $2.76 $0.83 $46.3127 27. M&amp;I resource of 6.34 Mt @ 5.0% TREO and Inferred resource of 21.9 Mt @ 4.0% TREO One of the highest grade REO deposits in the world Heavy rare earth oxides (HREO) represent 2.6% of the TREO M&amp;I includes 8.40% P2O5 and 1.02% Nb2O5 2% cut-off grade MODEL RESULTSUNITFIGURES BRL/USDRate2.0 Mine LifeYears 40 NPV ( @10%)USD MM 967 IRR%30% Avg. Araxa Basket REO PriceUSD/Kg29.19 Avg. Araxa Basket REO Cost (1) USD/Kg10.50 Total Capex (1)USD MM 406(1) Only Phase I , Phase 2&amp;3 capex is estimated at $ 214.5 Million. Estimated operating cost for phase 2 is $9.60/kg and phase 3 is $12.16/kg28 28. MBAC has already defined a process route (acid bake) using acid leachingand solvent extraction for the production of separated RE oxidesOre preparation Laboratory test work for REO extraction has been Nb2O5underway since September 2011 circuit Acid MBAC has successfully produced a bulk concentratewith 99% RE oxides forecasted cost for the bulkoxides is in the range of $8 to $9 per kgAcid leaching Insoluble Test work will also be conducted at labs in Canada, DCPChina and Japan to demonstrate and improve currentOrganic acidcircuittechnologies. MBAC has already started the sample preparation forREO Precipitation Solublethe pilot plant campaign in Brazil for the...</p>


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