Slide 1: Minsur Corporate Presentation
Minsur Corporate Presentation March, 2017
Slide 2: Agenda
AGENDA 1. General Overview 2. Portfolio of world-class and profitable assets 3. Financial Performance 4. Closing Remarks Pucamarca, 2012 1
Slide 3: General Overview
1 General Overview 2
Slide 4: Minsur at a glance
Minsur at a glance Leading Peruvian mining company with +35 years of continuous operations 2016 Largest supplier of tin in the Western Hemisphere Revenues Owner of San Rafael, the world’s largest and richest tin mine US$ 617 M World´s single largest tin deposits: Pitinga mine * EBITDA Dive
Slide 5: Focused Strategy
Focused Strategy Maintaining the low-cost nature of our world-class mining assets Control Efficiency Continuing to improve operating efficiencies Focus on Cost- Maintain the profitability of our operations and Operational Excellence Secure sustainability of our assets: commitment to world cl
Slide 6: Global leading Tin Producer
Global leading Tin Producer Global ranking – Top 10 Tin producers (2016, MT) 76,000 26,802 25,445 23,756 20,100 13,111 11,088 10,984 8,541 8,200 Yunnan Tin Malaysia Minsur PT Timah Yunnan EM Vinto Thaisarco Guangxi Metallo Gejiu Zi-Li Smelting Chengfeng China Tin Chimique Corp Source: ITRI 5
Slide 7: Over years of continuous operations
Over 35 years of continuous operations Minsur consolidates 100% of Marcobre – Mina Justa (Copper) for US$85M 2016 Pucamarca (Gold) begins operations (US$222M capex) 2013 Minsur acquires 70% of Marcobre – Mina Justa (Copper) for US$506M 2012 Minsur acquires the Taboca mining unit in Brazil US$395M Re
Slide 8: Our Portfolio
2 Our Portfolio
Slide 9: Portfolio of world-class and profitable assets
Portfolio of world-class and profitable assets Tin San Rafael (Sn) Gold Throughput: 2,900 MT/day Peru Smelters Cash-cost*: US$8,139 / MT Average Grade*: 1.97% Operation: Underground mine Pucamarca (Au) Pisco Throughput: 21,000 MT/day San Rafael By P. Cash-cost*: US$313 /oz Pucamarca Average Grade*:
Slide 10: San Rafael - Pisco
San Rafael - Pisco Overview Cost curve position (US$/MT) 2015 NBP cash cost Largest and richest ore grade tin mine in the world, producing around 6% of global tin supply High grade deposit, estimated resources of 10 million MT of Cost (US$/MT) ore with an average tin grade of 2.05% as of Decembe
Slide 11: San Rafael – Pisco 4Q16 results and 2017 Guidance
San Rafael – Pisco 4Q16 results and 2017 Guidance 4Q16 vs 4Q15 2016 FY & 2017 Guidance Min Max 6.3 24 5.0 20 20 17.5 Production (kt Sn) -20% 16.5 4Q16 4Q15 2014 2015 2016 2017 [E] 119 143 127 Cash – Cost 68 82 80 (US$/tt) -43% 70 4Q16 4Q15 2014 2015 2016 2017 [E] 12.9 40 22 29 Capex 5.2 18 30 (US$M)
Slide 12: The Ore Sorting Project
The Ore Sorting Project Project Highlights: • Definition: Construction of a pre concentration plant that uses an X-Ray technology to select and segregate higher grade ore from the ore that is not economically viable. • Grade increase: From 0.7% to 2.7% • Output: 3,000 tons of refined tin per year •
Slide 13: Pucamarca
Pucamarca Overview Production % Au grade High quality and rich gold deposit kTM koz Demonstrates Minsur’s ability to develop, ramp up, and operate a 0.96 0.70 0.60 0.70 0.50 0.70 new mine 8500 0.70 150 Gold production began in February 2013, with 116,665 117 121 106 106 ounces of gold produced
Slide 14: Pucamarca 4Q16 results and 2017 Guidance
Pucamarca 4Q16 results and 2017 Guidance 4Q16 vs 4Q15 2016 FY & 2017 Guidance Min Max 19.6 27.1 121 106 106 100 Production -28% 90 (koz Au) 4Q16 4Q15 2014 2015 2016 2017 [E] 6.2 4.7 Cash – Cost 6.2 4.2 4.3 5.0 (US$/tt) 32% 4.5 4Q16 4Q15 2014 2015 2016 2017 [E] 4.6 25 16.7 Capex 1.6 7.1 7.4 20 (US$M)
Slide 15: Pitinga - Pirapora
Pitinga - Pirapora Overview Cash cost evolution (US$/MT)* World’s single largest tin deposit of contained tin 51,979 resources as of 2013, Niobium and Tantalum as by- 40,869 products 22,868 21,365 Estimated resources of 331 million MT of ore 17,910 15,130 17,604 with an average tin grade of 0.13
Slide 16: Pitinga - Pirapora 4Q16 results and 2017 Guidance
Pitinga - Pirapora 4Q16 results and 2017 Guidance 4Q16 vs 4Q15 2016 FY & 2017 Guidance Min Max 7.5 5.5 5.9 Production 1.7 5.0 1.4 (kt Sn) 6.5 +22% 4Q16 4Q15 2014 2015 2016 2017[E] 18.6 16.9 22.7 18.1 18.6 19.0 Cash – Cost (US$/tt) 17.0 +11% 4Q16 4Q15 2014 2015 2016 2017[E] 24.9 67 50 Capex 32 30 (US
Slide 17: Expansion and Exploration Projects
Expansion and Exploration Projects B2 - San Rafael Tailings Mina Justa - Marcobre Advanced Explorations Process San Rafael’s old high grade tailings LOM: 9 years World class, long life copper project Among the world’s top 10 undeveloped Tin 100% owned by Minsur resources 4 Resource Marta B
Slide 18: Financial Performance
3 Financial Performance 17
Slide 19: Revenues evolution
Revenues evolution Annual Tin sales Volume (‘000 MT) 43 32 33 30 32 Revenues (US$M) 26 25 876 883 893 914 739 619 617 2010 2011 2012 2013 2014 2015 2016 Average Tin Price (US$/MT) 2010 2011 2012 2013 2014 2015 2016 27.0 21.7 22.6 22.6 19.8 18.0 +1% -16% 21% +2% -32% -0% 16.1 YoY % growth 2010 2011 2
Slide 20: EBITDA and FFO evolution
EBITDA and FFO evolution EBITDA FFO (US$M) (US$M) Record volume Record prices 419 587 531 353 359 376 328 238 216 167 207 149 121 107 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016 67% 60% 49% 42% 36% 24% 39% Note: FFO = Adjusted Net income + Depreciation and Amortization EBIT
Slide 21: Closing Remarks
Clo 4 Closing Remarks 20
Slide 22: Closing Remarks
Closing Remarks 1 Global leading Tin producer 2 Portfolio of world-class and diversified assets 3 Investing in long-term growth and competitiveness 4 Strongly commited to maintaining profitability despite the challenging context 21
Slide 23: Minsur
Minsur Corporate Presentation March, 2017