Afarak Group Se Class A · OMXHEX:AFAGR
Afarak Group Se Class A — Ruukki Group — Investor Presentation (October 2010)
19 slides from Afarak Group Se Class A's investor presentation, October 2010
Slide 1: Introducing Ruukki Group
Introducing Ruukki Group October 2010 1
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an invitation to subscribe for or otherwise acquire or dispose of Ruukki shares or other securities. This presentation does not constitute, or form any part of, any offer for, or solicitation of any offer for, Chromex securities. The Ruukki offer in r
Slide 3: Who We Are
Who We Are Ruukki is an integrated mining and minerals producer supplying specialist products to the expanding steel and stainless steel industries leveraging off its technological advantages, to fuel sustainable growth. 3
Slide 4: Corporate Information
Corporate Information Highly experienced Board with extensive industry experience across mining and finance Name Experience Dr Jelena Manojlovic Established university lecturer, +35 yrs Shares in issue 248,207,000 (Chairman) experience human resources & public sector management LSE RKKI Dr Chris Poi
Slide 5: Strong, Long Term Fundamentals, Short Term Volatility
Strong, Long Term Fundamentals, Short Term Volatility Stainless steel output, m tonnes, Demand Ferrochrome output, m tonnes, Supply side CRU August 2010 CRU August 2010 China World World South Africa 12 40 35 10 30 8 25 20 6 15 4 10 5 2 0 0 5
Slide 6: Delivering A Clearly Defined Strategy for the Mining & Minerals Business
Delivering A Clearly Defined Strategy for the Mining & Minerals Business Ambition: To be a profitable, integrated mining house, focused on the supply of specialist products to the stainless steel and steel industries, optimising value to shareholders through sustainable growth and efficient manageme
Slide 7: Our Asset Base
Our Asset Base Mining Processing Sales Southern Europe TMS, Turkey EWW, Germany RCS, Malta Southern Africa Chromex Mogale, S.Africa South Africa, Zimbabwe 7
Slide 8: TMS - Turkey
TMS - Turkey TMS mines and processes special grade chromite concentrates and lumpy chrome ore Top 3 chrome ore producers in Turkey Two operations comprising: Open pit & underground mining operations Processing facilities, including recently commissioned new chromite concentrator New processing
Slide 9: EWW - Germany
EWW - Germany EWW is a specialised minerals processing business Overview: 5 year tolling agreement RCS is sole distributor of EWW products – When agreement expires, Ruukki has option to acquire EWW Submerged arc furnace to process TMS & third party chromite concentrates Produces highly speci
Slide 10: Ruukki SA - Mogale Alloys
Ruukki SA - Mogale Alloys Produces: charge chrome ferrochrome, silico manganese, stainless steel alloy Overview: Acquisition of 84.9% stake in May 2009 Currently sourcing local ore supply Products marketed by RCS Produces range of diversified products DC Technology a competitive advantage
Slide 11: Transaction Overview
Transaction Overview Chromex is AIM listed: CHX Recommended all cash offer Total of 41Mt of chromite resources for £37 million New order mining rights BEE partners Logical transaction, achieves all three strategic objectives: Consolidates Ruukki’s completes vertical integration of presence i
Slide 12: Acquisition of Chromex Secures Ruukki's SA Growth Plans
Acquisition of Chromex Secures Ruukki’s SA Growth Plans Logical Transaction South African operations Vertical integration Secures own ore supply, immediately accessible, new order mining rights Sizeable resource of 41Mt offers operational longevity Increase in production volumes with addition of
Slide 13: Vertical Integration & Expansion Potential
Vertical Integration & Expansion Potential The Stellite Mine The Mecklenberg Project New Order Mining Rights Regulatory (includes PGMs and gold) Regulatory New Order Mining Rights Status Mining recommenced in Jan 2010 Status Pre-development Resources (Inc.) 31.9Mt Resources (Inc.) 9.1Mt Reserves – R
Slide 14: Realising Ruukki SA expansion
Realising Ruukki SA expansion Framework Agreements with MCC of China DC Furnaces Total production capacity of 280,000tpa Design & detailed engineering underway, expected to be completed by Q4 2010 Site selection underway, expected to be completed by end 2010 Negotiations for formal contract
Slide 15: Our Products – Chromex Further Diversifies Product Mix
Our Products – Chromex Further Diversifies Product Mix Chromex Chrome ore, Metallurgical grade Potential to produce: Chrome ore Plasma charge Low-carbon, ultra low Silicomanganese Foundry, Refractory ferrochrome and carbon, and specialty and Chemical grade Stainless Steel Alloy low carbon concentrat
Slide 16: Delivering A Clearly Defined Strategy for the Mining & Minerals Business
Delivering A Clearly Defined Strategy for the Mining & Minerals Business Ambition: To be a profitable, integrated mining house, focused on the supply of specialist products to the stainless steel and steel industries, optimising value to shareholders through sustainable growth and efficient manageme
Slide 17: Appendices
RUUKKI | GROUP Appendices October 2010
Slide 18: Securing Direct Ore Supply and Expanding Production Base in SA
Securing Direct Ore Supply and Expanding Production Base in SA Recommended cash offer by JV Synergy Africa (51% Ruukki, 49% Kermas) • 36.5p per share and 16.5p per Chromex Warrant Values Chromex at approx. £37 million and represents: • Premium of 82.5% to closing price of 20p on 14 July • Premiu
Slide 19: Consolidating Ruukki's Presence in Heartland of Southern Africa
Consolidating Ruukki’s Presence in Heartland of Southern Africa Waylox Zimbabwe Lonmin Stellite Mecklenburg Mogale Xstrata Lonmin Johannesburg Durban South Africa Cape Town 19