Mmg Ltd. · HKEX:1208

Mmg — Merger or Acquisition (April 2014)

17 slides from Mmg's merger presentation, April 2014

  1. Slide 1: Acquisition of Las Bambas

    Acquisition of Las Bambas April 2014

  2. Slide 2: Important information

    Important information This presentation and the information contained herein are given for general reference only. It is not intended and does not constitute or form part of any information furnished by MMG for the purpose of any shareholders’ meeting or any voting by its shareholders at any such me

  3. Slide 3: Key points

    Key points  MMG led consortium (JV) has entered into an agreement with GlencoreXstrata to acquire the Las Bambas copper project in Peru for US$5.85 billion (100%).  Unique opportunity to acquire a world-class, high quality copper asset with prospective, near mine exploration opportunities.  Fully

  4. Slide 4: Transaction overview

    Transaction overview  JV has entered a Share Purchase Agreement to acquire 100% of Xstrata Peru S.A. Transaction (Las Bambas).  JV structure: MMG (62.5%), and GXIIC (22.5%), CITIC (15.0%). Governance  JV will operate Las Bambas adopting MMG standards, processes and systems.  JV Board – Maximum s

  5. Slide 5: Las Bambas is a world-class, high-quality asset

    Las Bambas is a world-class, high-quality asset …  Located in Cotabambas, Apurimac 2017 Forecast annual production1 Region, Peru. ‘000 tonnes, contained copper Escondida  Advanced stage construction - US$3.5 billion spent as at 31 Cerro Verde December 2013. Las Bambas  Open pit mining methods, co

  6. Slide 6: With prospective, near mine exploration opportunities

    … with prospective, near mine exploration opportunities  Substantial geological potential.  Significant proportion of licence area currently unexplored with limited exploration drilling since 20101.  Focus on extensions to current forecast mine life.  Exploration program planned upon transaction

  7. Slide 7: Establishes a strong platform in a highly prospective mining region

    Establishes a strong platform in a highly prospective mining region Establishing a major and permanent presence in Peru  Apurimac region supportive of mining investment.  MMG will seek to retain and attract a permanent local workforce to operate Las Bambas.  MMG will seek to build long-term partn

  8. Slide 8: MMG has demonstrated operational strength

    MMG has demonstrated operational strength…  Track record of delivering to production MMG attributable production and cost guidance. ‘000 tonnes, Cu Equivalent1  Commitment to continuously improving 600 processes, quality and costs. CAGR 12%  Experienced and responsible operator 450 of large open

  9. Slide 9: Committed to world-class operating standards

    …committed to world-class operating standards  An International Council on Mining and 2013 Total recordable injury frequency rate (TRIFR) Metals member committed to the ICMM Per million hours worked Sustainable Development Framework. 0.9 Sepon  Safety focus and performance core to 0.5 2012 company

  10. Slide 10: Excellent fit with MMG's growth strategy

    Excellent fit with MMG’s growth strategy Commodity  Attractive long-term copper market fundamentals. Scale  Globally significant by production and resource size. Stage  Advanced stage construction project, close to production. Upside  Significant proportion of licence area currently unexplored.

  11. Slide 11: Las Bambas is transformational to MMG

    Las Bambas is transformational to MMG 2017 Forecast annual production – select projects ‘000 tonnes, copper contained metal1 600 500 Las Bambas 400 300 Toromocho Sentinel Sierra Gorda Konkola Nchanga 200 Salobo Pumpkin Oyu Tolgoi Hollow Antapaccay Caserones 100 Rosemont Sepon Frontier Antucoya Lubam

  12. Slide 12: Transforms MMG – creates future opportunities

    Transforms MMG – creates future opportunities  Transaction creates value for MMG MMG Mineral Resource shareholders over the long-term. ‘000,000 tonnes, contained copper metal 10.5  Significantly increases MMG copper 2.7 x production and Mineral Resources and 3.9 Ore Reserves.  Strategic entry int

  13. Slide 13: Summary

    Summary  MMG led consortium (JV) has entered into an agreement with GlencoreXstrata to acquire the Las Bambas copper project in Peru for US$5.85 billion (100%).  Unique opportunity to acquire a world-class, high quality copper asset with prospective, near mine exploration opportunities.  Fully fu

  14. Slide 14: We mine for progress

    WE MINE FOR PROGRESS A

  15. Slide 15: Overview of MMG

    Overview of MMG  Headquartered in Australia, listed on The Stock Exchange of Hong Kong.  Five major operating mines.  Major producer of zinc and copper. Legend: Operating assets Development projects Izok Corridor Sepon Century Kinsevere Dugald River Golden Grove Rosebery 15

  16. Slide 16: MMG's experienced leadership team

    MMG’s experienced leadership team CEO & CFO & EGM – Strategic Planning EGM Executive Director Executive Director & Executive Director Business Development Andrew Michelmore David Lamont Xu Jiqing Michael Nossal • Age 61, appointed 2009 • Age 48, Appointed 2009 • Age 46, appointed 2013 • Age 55, Appo

  17. Slide 17: Key milestones and performance

    Key milestones and performance Key Milestones MMG copper production (‘000 tonnes) Minmetals Resources acquires Minerals and 2010 Metals Group (MMG) 173 188 - 152 186 Minmetals Resources bid for Equinox 99 102 2011 Minerals, but subsequently chose not to pursue the transaction given a higher offer Mi

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