Slide 1: Minsur Corporate Presentation
Minsur Corporate Presentation July, 2015
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 2014** Revenues Largest supplier of tin in the Western Hemisphere $914M Owner of San Rafael, the world’s largest and richest tin mine World´s single largest tin deposits: Pitinga mine * EBITDA Divers
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 in terms of size and profitability
Global leading Tin producer in terms of size and profitability Global ranking – Top 10 Tin producers (2014, MT) 75,924 35,152 29,234 27,550 22,900 17,085 12,200 11,806 9,814 7,000 Yunnan Tin Malaysia Minsur PT Timah Yunnan Thaisarco Guangxi EM Vinto Metallo Gejiu Zi-Li Smelting Chengfeng China Tin C
Slide 7: Over years of continuous operations / Revenues evolution
Over 35 years of continuous operations 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 2008 Revenues Pisco (Tin foundry) begins operations (first in the world to us
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$8,910 / MT Average Grade*: 2.16% Operation: Underground mine Pucamarca (Au) Pisco Throughput: 21,000 MT/day San Rafael By P. Cash-cost*: US$274 /oz Pucamarca Average Grade*:
Slide 10: San Rafael - Pisco
San Rafael - Pisco Overview Cost curve position (US$/MT) 2014 cash cost Largest and richest ore grade tin mine in the world, producing around 8% of global tin supply Cost (US$/MT) High grade deposit, average resource grade of 2.2% Mine life: Over 8 years (202k MT contained tin 2014) San Rafael
Slide 11: San Rafael – Pisco 1Q 2015 and FY Guidance
San Rafael – Pisco 1Q 2015 and FY Guidance 1Q – 2015 vs 2014 2015 FY Guidance 7.0 Min Max 24 24 4.8 22 Production (kt Sn) -31% 20 2014 2015 2013 2014 2015 [E] 146 151 126 143 Cash – Cost 140 (US$/tt) +16% 130 2014 2015 2013 2014 2015 [E] 2.2 1.7 21 18 20 Capex -21% (US$M) 15 2014 2015 2013 2014 2015
Slide 12: Pucamarca
Pucamarca Overview Production High quality and rich gold deposit kTM 0.96 % Au grade 0.70 koz Demonstrates Minsur’s ability to develop, ramp up, and operate a 6500 150 new mine 117 5500 106 Gold production began in February 2013, with 116,665 4500 100 ounces of gold produced during the first y
Slide 13: Pucamarca 1Q 2015 and FY Guidance
Pucamarca 1Q 2015 and FY Guidance 1Q – 2015 vs 2014 2015 FY Guidance Min Max 28.4 28.8 117 106 116 Production +1% 105 (koz Au) 2014 2015 2013 2014 2015 [E] 6.7 4.4 7.5 Cash – Cost 6.2 5.5 (US$/tt) -34% 5.0 2014 2015 2013 2014 2015 [E] 1.4 37.1 Capex 16.7 -107% 12 (US$M) 8 2014 2015 2013 2014 2015 [E
Slide 14: Pitinga - Pirapora
Pitinga - Pirapora Overview Cash cost evolution (US$/MT)* World’s single largest tin deposit of contained tin resources as of 2013, Niobium and Tantalum as by- 51,979 products 40,869 Estimated resources of 545K MT of tin with an 22,868 21,365 17,910 average ore grade of 0.13% as of December 2014
Slide 15: Pitinga - Pirapora 1Q 2015 and FY Guidance
Pitinga - Pirapora 1Q 2015 and FY Guidance 1Q – 2015 vs 2014 2015 FY Guidance Min Max 1.1 5.0 6.0 Production 4.2 0.6 (kt Sn) 5.0 +90% 2014 2015 2013 2014 2015 [E] 18.8 17.2 25.6 Cash – Cost 22.7 20.0 (US$/tt) -8% 18.0 2014 2015 2013 2014 2015 [E] 8.4 6.0 32 32 36 Capex -29% (US$M) 30 2014 2015 2013
Slide 16: 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 World class, long life copper project Among the world’s top 10 undeveloped Tin Located at low altitude in Nazca, Peru resources Minsur acquir
Slide 17: Financial Performance
Financial Y O ¢ Lae) & Sum \e) Pa Sum oY e..
Slide 18: Revenues evolution
Revenues evolution Annual Tin sales Volume (‘000 MT) 43 +24% Revenues (US$M) 32 33 32 30 893 914 876 883 739 2010 2011 2012 2013 2014 Average Tin Realization Price (US$/MT) 2010 2011 2012 2013 2014 27,029 YoY % growth +1% 22,568 22,554 -16% 21% +2% 21,680 19,827 2010 2011 2012 2013 2014 17
Slide 19: EBITDA and FFO evolution
EBITDA and FFO evolution EBITDA FFO (US$M) (US$M) Record volume Record prices 587 419 531 353 359 376 328 238 216 167 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 67% 60% 49% 42% 36% Note: FFO = Net income + Depreciation and Amortization EBITDA margin (%) 18
Slide 20: 1Q 2015 Financial Results
1Q 2015 Financial Results Sn Price Revenues (US$/t) (US$M) Minsur’s immediate response to lower 24 tin prices 22,648 5 17 18,392 0 • Elimination of all non production-critical expenses -19% -30% • Postponement/elimination of non-critical Capital Expenditures (capex) 2014 2015 2014 2015 • Complete ev
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 July, 2015