Mmg Ltd. · HKEX:1208
Mmg — Merger or Acquisition (February 2025)
26 slides from Mmg's merger presentation, Feb 18, 2025
Slide 1: Acquisition of Anglo American Níquel Brasil
Acquisition of Anglo American Níquel Brasil Acquisition of 100% Anglo American plc’s (AAL:LSE) Brazilian nickel business 18 February 2025
Slide 2: Disclaimer
Disclaimer Disclaimer Projections The information in this investor presentation (this "Presentation") is prepared by MMG Limited (HKEx stock code: 1208) This Presentation contains projected financial information. Neither MMG nor the Target's independent auditors have ("MMG", together with its subsid
Slide 3: 1. Transaction overview
1. Transaction overview
Slide 4: Transaction summary
Transaction summary • MMG to acquire 100% of Anglo American’s nickel assets in Brazil (“Nickel Brazil”) for an aggregate cash consideration of up to US$500M(1) (the “Transaction”), comprising: - Upfront cash consideration of US$350M Overview - Contingent consideration of up to US$100M linked to the
Slide 5: Strategic Pathways
Executing on our growth strategy Our purpose Our mission Our vision Our ambition Grow and diversify our Strategy We mine to create To create a leading resource, production wealth for our people, international mining and value, by leveraging host communities company for a low carbon Chinese and inter
Slide 6: Nickel Brazil overview
Nickel Brazil overview Nickel Brazil at a glance Operating asset statistics BRAZIL Barro Alto Codemin (Niquelândia) • Operating history of • Flagship operation, +40 years which comprises a Jacaré • Ore is trucked from Barro producing nickel mine Current Alto to feed a 0.6 Mtpa and a 2.4 Mtpa Operati
Slide 7: 2. Investment highlights
2. Investment highlights
Slide 8: Investment highlights
Investment highlights 1 Execution of base metals growth strategy, providing earnings, geographic and commodity diversification 2 Provides entry into Brazil, a Tier-1 mineral-rich and mining-friendly jurisdiction 3 One of the largest ferronickel producers in the world with leading environmental crede
Slide 9: Execution of base metals growth strategy, providing earnings, geographic and commodity diversification
1 Execution of base metals growth strategy, providing earnings, geographic and commodity diversification Execution of MMG’s growth strategy Attractive Acquisition Multiple EBITDA Transaction Value(1) / EBITDA Acquisition of targeted base metal commodity and expansion into new Tier-1 mining 1.8x 1.7x
Slide 10: Entry into Brazil, a Tier-1 mineral-rich mining-friendly jurisdiction
2 Entry into Brazil, a Tier-1 mineral-rich mining-friendly jurisdiction Country snapshot Brazil’s mineral resources Paragominas (PA) • Latin America’s largest country and top investment Presidente Figueiredo Aluminum Carajás (PA) Bahia (BA) destination (AM) Tin Iron, Gold, Bauxite, Iron, Vanadium, C
Slide 11: One of the largest producers in the world of ferronickel with leading ESG credentials
3 One of the largest producers in the world of ferronickel with leading ESG credentials Nickel Brazil is focused on community engagement, operating with a limited footprint and maintaining sustainable and low-carbon intensity operations • Health and safety is a core focus with aim of delivering zero
Slide 12: Stable and profitable operations producing ~40 ktpa of Ni
4 Stable and profitable operations producing ~40 ktpa of Ni…. Stable historical operational performance… …that has generated strong operating earnings and cashflows Payable Nickel Production (Kt Ni) C1 Cash Costs & Realised Nickel Price (US$/lb Ni) C1 Cash Costs(US$/lb Ni) Realised Nickel Price (FOB
Slide 13: Well positioned on the global cost-curve with long mine life
5 …that is well positioned on the global cost-curve with long mine life 2024 2024 (1,2) (1) C1 Cash Cost Ni Production 1st quartile positioning on global cost curve(1,2) (US$/lb Ni) (Mlbs Ni) 1 Nickel Brazil $5.05 (3) 86.9(4) Nickel Brazil (3,4) Global FeNi Operations $12.50 11 2 Pt Ceria $5.51 46.0
Slide 14: Third-largest nickel endowment globally
6 Third-largest nickel endowment globally… Nickel Brazil contains one of the largest portfolios of nickel deposits globally Contained Ni in Reserves and Resources (Mt)(1) Total Reserves and Resources (Mt Ni) Global FeNi Operations Reserves Grade (% Ni) 1.2% 1.9% 1.3% 1.1% 1.2% 0.3% 1.4% 1.0% 1.0% 1.
Slide 15: …with potential for material growth via development projects
6 …with potential for material growth via development projects Jacaré and MSB could transform Nickel Brazil into a leading global nickel producer in the longer term Greenfield project development supports production expansion (ktpa Ni) Illustrative expansion potential Top 10 mined nickel production
Slide 16: 3. Nickel market overview
3. Nickel market overview
Slide 17: Nickel overview
Nickel overview Nickel market overview Global Nickel Demand (by product type) • Stainless steel industry has driven historical demand for nickel Nickel in stainless Battery precursors for EV/ESS Alloy Steel Non-Ferrous Alloys • This demand is met by supply of nickel pig iron (“NPI”) and 6000 Plating
Slide 18: Ferronickel overview
Ferronickel overview Ferronickel market overview Ferronickel pricing overview • FeNi competes directly with NPI to supply the stainless steel • Historically, FeNi and NPI (“Class 2 Nickel”) prices closely industry tracked the Class 1 Nickel price quoted on the LME, with FeNi receiving a premium over
Slide 19: Thank you
Thank you
Slide 20: Appendix
Update picture from CIM / MP Appendix 20
Slide 21: Snapshot of expanded MMG portfolio
Snapshot of expanded MMG portfolio Nickel Brazil is a strategic expansion into a Tier-1 mining friendly jurisdiction Khoemacau Kinsevere Location: Botswana Location: DR Resource: 6.4Mt Cu, 260Moz Ag Resource: 1.6Mt Cu, 50kt Co High-grade, low-cost mine with Growing to be a ~100ktpa copper ~130ktpa c
Slide 22: Transaction details
Transaction details • Total consideration payable by MMG of up to US$500M in cash comprising: i. Upfront cash consideration of US$350M payable on completion ii. Contingent Realised Nickel Price Consideration of up to US$100M, payable if the average realised nickel price is greater than US$7.10/lb (“
Slide 23: Brasilia Fold Belt
Brasilia Fold Belt Deposits are part of the Meso-Neoproterozoic mafic-ultramafic layered complexes, situated within the internal zone of the Brasília Fold Belt Barro Alto mine Phanerozoic Cover Amazonian Craton Araguaia e Paraguaia belts • Deposit is situated in the Barro Alto mafic-ultramafic compl
Slide 24: Snapshot of Operating Assets
Snapshot of Operating Assets Map of current operations Overview of current operations Barro Alto Codemin (Niquelândia) COLOMBIA • Open pit mining covering a 40km Mining strike length • Ore sourced from Barro Alto and Vila do Conde Port • 3 types of ore stockpiles formed to truck hauled ECUADOR feed
Slide 25: Snapshot of Development Projects
Snapshot of Development Projects Map of development projects Overview of development projects National Morro Sem Boné Jacaré Grid • High-grade FeNi project with two • One of the largest Ni laterite deposits deposits, Morro Sem Boné and Mining in the world Morro Do Leme Vila do Conde Itaqui Port • 40
Slide 26: Nickel Brazil - Ore Reserves & Mineral Resources
Nickel Brazil - Ore Reserves & Mineral Resources Total Ore Reserves Total Mineral Resources Proven Probable Measured and Indicated Inferred Tonnes Grade Cont. Ni Tonnes Grade Cont. Ni Tonnes Grade Cont. Ni Tonnes Grade Cont. Ni Barro Alto (Mt) (% Ni) (Kt) (Mt) (% Ni) (Kt) (Mt) (% Ni) (Kt) (Mt) (% Ni