Mmg Ltd. · HKEX:1208
Mmg — Minmetals Resources — Merger or Acquisition (September 2011)
18 slides from Mmg's merger presentation, Sep 30, 2011
Slide 1: Agreement to make recommended offer to acquire all common shares in Anvil Mining Limited
Agreement to make recommended offer to acquire all common shares in Anvil Mining Limited
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is intended solely for your personal reference and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organisation/firm) or published, in whole or in part, for any pu
Slide 3: Offer highlights
Offer highlights Anvil shareholders realise compelling value All cash offer of C$8.00 per share provides certainty in volatile markets 30% premium based on Anvil’s 20 day trading VWAP on the TSX up to September 29, 2011 Total offer value approximately C$1,330 million Support and lock up agreem
Slide 4: Anvil overview
Anvil overview Assets Map of Kinsevere mine site and snapshot of operation 1. Kinsevere Mine (DRC) (95%) – 60ktpa cathode copper – Commissioning and ramp up 2. Mutoshi Project (DRC) (70%) – Copper and cobalt exploration project – 33,000m drilling program underway – Potential for large scale open pit
Slide 5: Kinsevere key attributes
Kinsevere Owner : Anvil Mining 95% Mining Company of Katanga (MCK) 5% 25+ year lease agreement with Gecamines Location : 30km north of Lubumbashi Product : Copper Cathode Status : Currently commissioning SX-EW (Kinsevere Stage II) Life : 14 years (oxides) Mining: Open pit (3 sequential pits) Product
Slide 6: Summary of the Proposed Offer
Summary of the Proposed Offer MMR has entered a support agreement with Anvil to make a compelling all cash takeover offer to Anvil shareholders Proposed Offer All Allcash cashoffer offerof ofC$8.00 C$8.00per perAnvil AnvilMining MiningLimited Limitedshare share Finance Financeininplace placeth
Slide 7: Why Anvil shareholders should accept the Offer
Why Anvil shareholders should accept the Offer The Proposed Offer provides compelling value to Anvil shareholders Offer represents a substantial premium for Anvil shares 30% All cash Offer of C$8.00 per share premium Substantial premium Certainty of value in an uncertain environment C$8.00 C
Slide 8: MMR's acquisition rationale
Attractive investment for MMR shareholders MMR’s acquisition rationale Excellent fit with MMR’s strategy to grow its upstream base metals 1 business 2 Attractive copper market fundamentals Expands MMR copper output, material uplift in MMR copper reserves, high 3 margin addition 4 MMR’s Sepon experie
Slide 9: Excellent fit with MMR's strategy to grow its upstream base metals business
Attractive investment for MMR shareholders 1 Excellent fit with MMR’s strategy to grow its upstream base metals business 100% Izok Lake Copper, zinc, lead, silver 100% High Lake D Copper, zinc, D lead, silver 90% Sepon Copper, gold 100% Century Zinc, lead, silver O 100% Dugald River Zinc, lead, silv
Slide 10: Excellent fit with MMR's strategy: criteria versus Anvil
Attractive investment for MMR shareholders 1 Excellent fit with MMR’s strategy to grow its upstream base metals business MMR criteria Anvil Commodities Copper, zinc, lead, nickel, bauxite Pure copper asset Geographies Careful analysis of political and DRC has acceptable political risk operat
Slide 11: Attractive copper market fundamentals
Attractive investment for MMR shareholders 2 Attractive copper market fundamentals 25,000 Global copper supply / demand balance 22,500 2020 potential demand and base 20,000 case supply gap of 6.1Mt of copper 17,500 15,000 12,500 10,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Base
Slide 12: Expands MMR copper output
Attractive investment for MMR shareholders 3 Expands MMR copper output Expected FY12 copper equivalent production Pre-acquisition (FY12) Post-acquisition (FY12) Silver Gold 3% 8% Silver Lead Gold 4% 4% 9% Lead Zinc 5% 41% Zinc 49% Copper 33% Copper 44% Note: Copper equivalent conversion based on spo
Slide 13: High margin operation
Attractive investment for MMR shareholders 3 High margin operation USD/lb Margin 5.0 90% 4.5 80% 4.0 70% 3.5 60% 3.0 50% 2.5 40% 2.0 30% 1.5 1.0 20% 0.5 10% - - 2011e 2012e 2013e 2014e 2015e Cu price C1 cost Margin Source: consensus forecast of 6 brokers issuing research on Anvil, consensus broker C
Slide 14: Material uplift in copper reserves
Attractive investment for MMR shareholders 3 Material uplift in copper reserves Copper reserves Million tonnes Source: MMR, Anvil 2010 reserve statements Anvil would increases MMR copper reserves by ~75% 14
Slide 15: MMR's Sepon experience will assist in full ramp up of Kinsevere mine
Attractive investment for MMR shareholders 4 MMR’s Sepon experience will assist in full ramp up of Kinsevere mine MMR’s Sepon Anvil’s Kinsevere Geology High grade copper oxide ore High grade copper oxide ore Mining Shallow open pit mining Shallow open pit mining – similar fleet Processing Crushi
Slide 16: Provides MMR with platform and experience to grow in Southern Africa
Attractive investment for MMR shareholders 5 Provides MMR with platform and experience to grow in Southern Africa CAMEROON Kibali • The 450km Katanga copper belt DEMOCRATIC REPUBLIC OF Mongbwalu UGANDA stretching across Zambia and into CONGO CONGO (DRC) KENYA Buhemba GABON DRC contains more than a t
Slide 17: Key messages
Key messages Compelling all cash offer C$8.00 per share – a 30% premium to 20 Day VWAP on TSX to September 29, 2011, unanimously recommended by Anvil Board 40% of Anvil shares committed under lock up agreement Flagship Kinsevere mine would materially increase MMR’s copper exposure (60ktpa), su
Slide 18: Questions?
Questions? A) Dik AR AIR a
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