Cap S.a. · BCS:CAP
Cap — Investor Presentation (November 2013)
22 slides from Cap's investor presentation, Nov 28, 2013
Slide 1: November 28th, 2013
November 28th, 2013
Slide 2: Corporate structure
Corporate structure Corporate structure Mitsubishi Pension Invercap Other Corporation Funds 19,3% 8,1% 31,3% 41,3% 47,32% 52,68% 75,0% 99,9% 25,0% Compañía Minera Compañía Siderúrgica Novacero del Pacífico Huachipato 50,93% 50,93% Cintac Intasa 11,03% 29,70% Iron Ore Mining Steel Production Steel Pr
Slide 3: Iron ore mining operations
Iron ore mining operations El Laco The mining company has three different Punta Totoralillo Port and independent areas of operation Cerro Negro Norte (1) located around the cities of La Serena, Desalination Plant (1) Copiapó Vallenar and Copiapó, in the north of Chile Magnetite Plant Cities Los Colo
Slide 4: Resources and reserves of magnetite ore
Resources and reserves of magnetite ore Mine / Deposit Total Mineral Resources (1) Reserves (2) MTM Grade (% Fe) MTM Grade (% Fe) Existing operations Los Colorados (under expansion) 986 34,8% 244 46,4% El Romeral 459 28,3% 105 30,2% El Algarrobo 133 45,9% 46 49,3% Hierro Atacama I - Candelaria (3) 2
Slide 5: Development program underway
Development program underway Los Colorados (brownfield expansion) Current production: 5.2 million tonnes / Pellets and pellet feed Projected increase: 2.0 million tonnes / Pellet Feed Start-up process initiated in August 2013 CAPEX: US$ 442 million Cerro Negro Norte (greenfield expansion)
Slide 6: Iron ore production ramp-up
Iron ore production ramp-up Production (Th. tonnes) 20000,0 17.757 18.000 18000,0 15.608 16000,0 14000,0 12.433 12.055 12000,0 10000,0 8000,0 6000,0 4000,0 2000,0 ,0 2012 2013 (E) 2014 (P) 2015 (P) 2016 (P) o In 2012 the average cash cost per ton was US$ 48,76 (FOB) o Construction of a Desalination
Slide 7: Shipments and markets
Shipments and markets Shipments Shipments by markets and products Sep-2013 14000,0 12.246 12.032 4% 1% 12000,0 11.469 8% 10.145 9% 10000,0 10.213 13% 65% 8000,0 Th. MT 7.251 6000,0 8.134 4000,0 2000,0 3Q13 China Chile Japan Bahrein Indonesia USA ,0 2008 2009 2010 2011 2012 2013 (E) 8% 16% Self - flu
Slide 8: Iron ore spot prices
Iron ore spot prices Iron ore Fines 62% CFR North China (US$/t) 200 180 160 2010 140 2011 2012 2013 120 100 80 Source: CAP 8
Slide 9: Cash cost year 2013
Global production costs Cash cost year 2013 CMP Global production (Mdmt) FOB cash cost does not include royalties and depreciation Source: Wood Mackenzie Iron Ore Cost Service 9
Slide 10: Cash cost year 2013 - pellet feed
Pellet feed global production costs Cash cost year 2013 Niche market: pellet feed CMP Pellet feed global production (Mdmt) FOB cash cost does not include royalties and depreciation Source: Wood Mackenzie Iron Ore Cost Service 10
Slide 11: Cash cost year 2013 - magnetic pellet feed
Magnetic pellet feed global production costs Cash cost year 2013 Niche sub market: magnetic pellet feed CMP Magnetic pellet feed global production (Mdmt) FOB cash cost does not include royalties and depreciation Source: Wood Mackenzie Iron Ore Cost Service 11
Slide 12: Evolution of steel prices
Evolution of steel prices 350 300 250 200 CRUspi North America 150 CRUspi Europe 100 CRUspi Asia 50 00 600 500 400 300 CRUspi Flats CRUspi Longs 200 CRUmpi 100 00 Source: www.crugroup.com, November2013 12
Slide 13: Evolution of key raw materials
50 0 100 150 200 250 300 350 400 450 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Source: CAP and The Baltic Exchange, November 2013 Nov-12 Jan-13 Metallurgical Coal (US$/TM) Mar-13 May-13 Jul-13 Sep-13 Nov-13 0 1.000 1.500 2.000 2.500 3.000 3.500 4.000
Slide 14: Global steel overcapacity and utilization rates
Global steel overcapacity and utilization rates Global crude steel production vs. capacity • Global steel capacity utilization currently at a level of 76% North America – crude steel production vs. capacity • In North America capacity utilization is reaching full capacity level 14
Slide 15: Steel production
Steel production Shipments and prices 2500,0 1.117 1200,0 2000,0 883 1000,0 799 811 699 755 800,0 US$/Ton 1500,0 Th. MT 1.161 1.113 1.124 1.149 600,0 922 1000,0 671 400,0 698 500,0 200,0 ,0 3Q13 ,0 2008 2009 2010 2011 2012 2013E Shipments Prices • Reorganization of the plant to produce with one blas
Slide 16: Steel processing business
Steel processing business o Creates value-added solutions for the construction, industry and infrastructure sectors in Chile, Peru and Argentina o Chile is Latinamerica’s most advanced user of steel in construction o Seeks to promote steel consumption Shipments and prices 1300,0 1.252 600,0 1250,0 S
Slide 17: Steel processing structure
Steel processing structure 17
Slide 18: Steel processing challenges
Steel processing challenges • Chile, Peru, Colombia and Mexico, countries with market economic orientation and located in the Pacific Basin , are for its growing stability of interest for the development of CAP COLOMBIA ECUADOR CHINA Material + productos BRASIL PERÚ • However, Brazil for its size an
Slide 19: Financial evolution
Financial evolution USD Million 2008 2009 2010 2011 2012 3Q13 Sales 1.972 1.375 1.994 2.787 2.470 1.646 EBITDA 534 128 740 1.184 764 465 EBITDA Margin 27,1% 9,3% 37,1% 42,5% 30,9% 28,3% Net Income 291 25 590 442 231 146* Cash 379 393 981 883 711 334 Gross Financial debt 880 907 1.001 628 719 830 Net
Slide 20: Conclusions
Conclusions Mining Steel Processing o Final stages of its expansion efforts in Los o Main focus is to supply the construction, industry Colorados and Cerro Negro Norte to reach 18 and infrastructure sectors million tons capacity o Chile is Latin America’s most advanced user of o Potential further ex
Slide 21: Forward-looking statements disclaimer
This information material may include certain forward-looking statements and projections provided by CAP S.A. (the “Company“) with respect to the financial condition, results of operations, cash flows, plans, objectives, future performance, and business of the Company. Any such statements and projec
Slide 22: www.cap.cl
www.cap.cl