2. Disclaimer
This presentation and its contents are confidential and proprietary of Manabi S.A. and its Subsidiaries (“Manabi”). Upon acceptance of this presentation, each
recipient (as well as its agents, representatives, advisors, directors or employees, as the case may be) agrees that it will not, and shall not permit any third party to
copy, reproduce or distribute to others the content of this presentation, in whole or in part, at any time without the prior written consent of Manabi.
Except as otherwise indicated herein, this presentation provides for information and opinions as of the date hereof, which are subject to change without notice.
This presentation does not purport to be all inclusive or to contain all information that you may desire in evaluating the project (the “Project”). Each recipient
must conduct and rely on its own evaluation, including of the associated risks, in making an investment decision. Manabi strongly recommends to all recipients of
this presentation to obtain appropriate independent legal, tax, financial and other professional advice.
Although certain information and opinions expressed in this presentation were obtained by Manabi from sources believed to be reliable and in good faith, neither
representation nor warranty, express or implied, is made as to its accuracy or completeness.
Nothing contained herein is, or should be relied on as, a promise or representation as to future performance of the Project. Certain information and conclusions
set forth herein are based on projections. These projections were prepared for the limited purpose of analyzing the potential risks and benefits of an investment
in the Project by illustrating under certain limited assumptions projected capital and operating expenditures, installed production capacity and expected
production. In addition, because of the subjective judgments and inherent uncertainties of projections and because the projections are based on a number of
assumptions, which are subject to significant uncertainties and contingencies that are beyond Manabí's control, there can be no assurance that the projections or
conclusions derived therefrom will be realized. Under no circumstances should the projections set forth herein be regarded as a representation, warranty or
prediction that Manabi will achieve or is likely to achieve any particular future result. There can be no assurance that Manabí's future results or projections will not
vary significantly from those set forth herein. In addition, certain of the information and conclusions set forth herein are based on projections. These projections
were prepared for the limited purpose of analyzing the potential risks and benefits of an investment in the securities by illustrating, based on a number of
assumptions, the prospective and contingent resources of Manabi. Although Manabi believes the assumptions underlying such projections are reasonable, the
reasonableness of these assumptions has not been independently passed upon. Manabí's ability to achieve the projected results is dependent upon, among other
factors, the success of its exploration efforts, its ability to obtain necessary governmental authorizations and licenses in order to begin operations, its estimates of
resources, its budget for developing its exploration and production assets and operating those assets, and its forecasts for production and the market for that
production.
This presentation contains forward-looking statements or statements about events and circumstances which have not yet occurred, which may be identified by
such words as "may", "plans", "expects", "believes" and similar expressions, or by their context. These statements are made on the basis of current knowledge
and, by their nature, involve numerous assumptions and uncertainties. Forward-looking statements may be influenced in particular by factors such as the ability to
obtain all required regulatory approvals on a timely basis or at all, exploration for mineral resources and reserves, difficulty in converting geological resources into
mineral reserves, and changes in economic, political and regulatory conditions. We caution that the foregoing list is not exhaustive. When relying on forward-
looking statements to make decisions, investors should carefully consider these factors as well as other uncertainties and events.
Various factors could cause Manabí's actual future results, performance or events to differ materially from those described in this presentation. In no event shall
Manabi or the members of its board, directors, assigns or employees be liable to any third party (including investors) for investment decisions or acts or business
carried out based on the information and statements that appear in this presentation, or for indirect damage, loss of profit or related issues. Neither this
presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.
This presentation was prepared for information purposes only and it should not be construed neither an offer to sell (which can only be made pursuant to
definitive offering documents) nor a solicitation of an offer to buy any securities in the United States, Brazil or any other jurisdiction. Securities of Manabi, IronCo.
LLC and/or any affiliated entity may only be offered or sold in the United States, Brazil or any other jurisdiction pursuant to their registration or an exemption from
registration under the U.S. Securities Act of 1933, as amended, Instrução CVM 400/03, as amended, or other equivalent rules and regulations of any other
jurisdictions.
Confidential 2
3. What is Manabi?
“A new player in the high-grade iron ore arena”
3.5 billion tons 1.5 billion tons 2Q 2016 31 Mtpy Integrated
JORC compliant production high-grade (68.5% Fe)
Mineral Resources
resources(1) start up(2) iron ore production logistics
Manabi overview
Brief history
• Manabi was incorporated on March 10th 2011 for the purpose of developing and exploiting iron ore assets in Brazil
• Manabi holds 78 mining rights in the State of Minas Gerais, which include the Morro do Pilar (“Pilar Hill”) and Morro
Escuro (“Dark Hill”) sites already under exploration
• Manabi assembled a highly experienced management team with proven Brazilian iron ore industry expertise
Mineral assets
• Located on the outskirts of the Iron Ore Quadrangle, a region known for its abundance of iron ore resources
Premium Product
• Product: Fe content of 68.5%
• Low impurities
Integrated logistics
• Projected pipeline of approximately 530 km to be built as BOT (build-operate-transfer) or possibly using existing railway
with a much shorter pipeline
• Area for the North Port site secured in the State of Espírito Santo
Total area of approximately 3,000 acres
Natural depth over 15m to be dredged to 19m (initial phase)
(1) Coffey Feasibility Study – March & April, 2012
(2) Only for the Dark Hill project; the Pilar Hill will start in 3Q 2016
Confidential 3
4. Important Developments and Milestones Since Private Placement in June 2011
Mine & Plant
Water rights granted for Pilar Hill mine project
8 additional mineral rights
5% increase in JORC resources after just 4 months of drilling campaign
Development of Dark Hill conceptual project
Conceptual engineering concluded for disposal of tailings (project footprint and CAPEX reduced)
Company contracted for an additional drilling of 45,000 m
Pilot test executed on Pilar Hill and Dark Hill Iron Ore, confirming the premium quality of its Pellet Feed
Preliminary License requested for Pilar Hill mine & plant, with Environment Impact Assessment (“EIA”) filed on March 29th, 2012
Logistics
Pipeline route defined
MOU with Vale ´s Logistics Subsidiary (VLI) signed in March
940 acres(1) of land acquired to develop North Port and additional 2,000 acres under agreement for purchase in advanced stage (2)
General onshore (port) layout concluded
Bathymetric survey confirming competitive location for offshore port
Onshore drilling performed, confirming adequate conditions for ore yard
Company
Experienced management team in place - iron ore project development, implementation and operation
(1) 600 acres fully available for construction.
(2) Subject to confirmatory due diligence
Confidential 4
5. Ownership Structure
Founding Investors
Fabrica Holding S.A. Michael S. Vitton Mathew T. Goldsmith PPM Investors1
19.1% 7.6% 7.0% 66.3%
100%
Morro do Pilar Minerais S.A. (Pilar Hill)
100%
Manabi S.A. Morro Escuro Minerais S.A. (Dark Hill)
100%
Manabi Logística S.A. (Manabi Log)
Ricardo Antunes (Fabrica Holding S.A.) Michael Vitton (M2 Advisors)
Main accomplishments at EBX Main accomplishments
• Founder and Executive Officer (heading business strategy, marketing and • As Bank of Montreal’s Head of US Equities Sales, originated over
sales) of highly successful mining and metals Company MMX US$ 200 billion of investments through public offerings and M&A
• Co-founder and CEO of LLX, developing from scratch two of Brazil’s largest • Co-founder of HRT, MMX and LLX. Board member at HRT, former Board
port projects – Açu and Sudeste member at MMX
Main accomplishments at Vale • Acted as lead / co-lead underwriter and individually placed 25% to 100% of the
• Development, implementation and operation of Carajás iron ore mine (world’s most important deals in the Natural Resource Sector: Arequipa Resources;
largest) Diamond Fields Resources; Meridian Gold; Franco Nevada Corp; Wheaton
River (Goldcorp); Randgold; Urasia; UraMin; Minefinders; Ivanhoe Mines;
• Led acquisition of mines to consolidate Brazil’s iron ore industry Comaplex; Detour Gold; and Osisko, among others
• Marketing and sales at Vale International • Originated and executed the largest natural resource transactions in Brazil,
• Extensive international experience, led Vale’s iron ore price negotiations from placing 50% to 100% of the equity placements for: HRT; OGX; MMX; LLX;
2002 to 2004, which grew nearly 100% in that period Yamana Gold; Santa Elina and TVX Gold
(1) US$ 550 million initial equity raising led by shareholders committed to the long-term success of the Company:
20.6% 12.5% 12.5%
Confidential 5
6. Highly Experienced Management Team
Executive Officers Experience
Ricardo Antunes • Former CEO of LLX Logistica SA (Bovespa LLXL3), an EBX group company that developed the two largest private ports under
construction in Brazil (Açu Super Port and Port Sudeste, both in Rio de Janeiro)
Chief Executive Officer
• Founding partner and Head of Marketing & Business Development of MMX Mineração e Metálicos SA (Bovespa MMXM3)
• 22 years executive experience in Vale including production, marketing, logistics and business development
• Bachelor's degree in Metallurgical Engineering from PUC - RJ with a Masters degree from The Imperial College of London
Joaquim Martino • Founding partner and former CEO and COO of MMX Mineração e Metálicos SA (Bovespa MMXM3)
Chief Development & • COO of Vale's Northern System which encompasses Carajás (world's largest iron ore mine), a 900 km railway and a 150 Mtpy port
Technical Officer • Worked as engineer for Samarco Mineração and Vale for 20 years
• His deep technical knowledge coupled with his work in scouting new mining opportunities both in Vale and in MMX has made
him one of the country's leading experts in identifying and evaluating new opportunities in Brazil
José Tadeu de Moraes • CEO of Samarco Mineração (Dec-2003 – Dec-2011)
Chief Operating Officer • Was elected Leader of the Year by Business Leader Award 2011 in Espirito Santo/ES
• Industrial and Operations Officer (Oct-2000 – Nov-2003)
• Coordinated the implementation of 2 pipelines in Brazil
• Worked as General Manager of the Ubu unit, accountable for operations and other corporate processes at Ubu
Antonio Castello Branco • Worked at EBX Group from 2007 – 2011, participating in MMX Mineração e Metálicos SA, restructuring its logistics business and
Chief Financial & LLX spin-off. At LLX was responsible for budget and investor relations
Investor Relations • 10 years at Vale responsible for corporate finance and treasury departments and subsequently CFO of Vale's Corporate Venture
Officer Holding and of Vale's subsidiary for Manganese and Ferroalloys
• MBA in Finance from COPPEAD / New York University and graduated in Production Engineering from UFRJ
Ricardo Abramof • 25 years of experience in the iron ore mining industry, including mine planning/operation, beneficiation, plant operation, project
development and implementation, marketing and sales and strategic planning
Chief Sales & Marketing
• 22 years at Vale holding positions as General Manager in the Northern System. In the commercial and marketing areas served
Officer
Vale as Officer of Sales for North America (5 years) and as General Manager for Global Marketing
• Served for 5 years as Commercial and Marketing Officer for iron ore at Companhia Siderúrgica Nacional (Bovespa CSNA3)
• Mining Engineer from UFMG with executive education programs at MIT, IMD, Columbia University and Darden School
Augusto Tannure • Lawyer and Economist, with an MBA in Logistics from COPPEAD-UFRJ
Logistics Officer • Experience in Business Development and Logistics, having worked at the Boston Consulting Group, Vale´s Logistics Department,
and serving as Business Development Manager at MMX and LLX
• Partner at Fabrica Holding S.A. since 2010
Confidential 6
7. Highly Experienced Management Team (Cont’d)
Manager Experience
Alberto Lopes • Mechanical Engineer (MSc) with 13 years of experience in engineering, industrial maintenance and plant operation for Vale
Project General Manager Carajás Mines. Former MMX Amapá Project CEO, MMX Corumbá Project General Manager in charge of engineering,
construction, team development and operations
Camilo Silva • Formerly MMX´s project development General Manager, 25 years of experience in technological development, quality control,
Technology and Process automation, maintenance and plant operation, engineering and project development, mainly for Vale. Holds MBA, MSc and PhD
General Manager degrees
Alex Dias • Geology Engineer with MSc. 18 years of experience in geological research, mining planning, mineral resource and mineral
Geology General Manager reserves estimations, QA/QC and new business. Worked for Vale and Votorantim in iron ore, nickel, bauxite, phosphate,
limestone, and other mineral projects
Luiz Claudio Patrus • 26 years of experience. Joined Anglo American in 2009 as GM for the Minas-Rio Project being responsible for engineering and
Pre Operation implementation of the ore processing plant and filtering. Joined MMX in 2006 as Pre-Engineering and Operation general
General Manager manager. Worked for Vale as Processing general manager for Carajás Plant.
Thaís Oliveira • Attorney graduated from PUC, with experience in Environmental Law. Worked with FIEMG, CSN/NAMISA and Ferrous Resources
Environmental Manager with licensing and environmental management, institutional relations. Representation of the mineral sector in the State Council
for Environmental Policy, Minas Gerais.
Eric Julian • Former MMX rail and port manager responsible for project implementation. 12 years of experience in planning, budgeting,
Planning Manager construction, plant management and project development for Vale. Technical Administrator with emphasis in management, with
an academic degree in building technology
Antônio Augusto Seabra
• Geology Engineer from UFOP. 11 years of experience at Vale as geologist in Itabira and Carajas mines and iron ore exploration
Geology Manager
programs - Carajás, Urucum, Iron Ore Quadrangle, including Serra da Serpentina project
Rosângela Ferreira • More than 20 years of experience with strategic performance management initiatives in Corporate Social Responsibility and
Community Relations and Communication. Served the last 5 years in Samarco Mining, responsible for developing policies and projects. MBA in
PR Manager Management and Social Entrepreneurship from FIA / USP
7
Confidential
9. Location of Mineral Assets in the State of Minas Gerais
(Outskirts of the Iron Ore Quadrangle)
Pilar Hill and Dark Hill
MG
N
Km
0 15 30
Confidential 9
10. Location of Ports and Pipelines
(project)
Ubu Port
Ferrous Port
Açu Port
(project)
Iron Ore Rivers
Manabi Vale Ferrous Samarco Quadrangle
Anglo American Serra Azul Railroads
(Minas Rio) (MMX, Usiminas) CSN Port
Confidential Pipelines 10
11. Resources Overview
Manabi holds 78 mining rights in the state of MG encompassing 3.5 Bi tons of resources (drilled only 6% of the total area)
Total – Preliminary Resources (Bt)
MG
Aeromagnetic anomalies survey and drilled areas (1)
Drilling Campaign (meters)
,
45.000
,
66.123
,
21.123
(1)
(2)
Nov-2011 Additional drilling Sep-2012
Source: Coffey Feasibility Study – March, 2012 and SRK Dark Hill Report – March, 2012
Note: (1) Drilling campaign in Pilar Hill and Dark Hill areas highlighted above
(2) Geosol was contracted in November 2011 to perform additional drilling
Confidential 11
12. Manabi Pellet Feed: a Premium Product
“In situ” resource characteristics allowing… … the production of a premium pellet feed at low costs
Product % Fe SiO2 Al2O3 P Mn LOI
ROM % Mt Fe SiO2 Al2O3 Mn P LOI
Manabi 68.5 1.0 0.6 0.02 0.05 0.7
Pilar Hill 2,837 30.23 52.47 1.84 0.07 0.06 0.59
Premium pellet feed:
• High grade product: 68.5% Fe
Dark Hill 670 31.61 53.76 0.66 0.05 0.03 0.11
• Low impurities: SiO2 + Al2O3 ~1.6%; P ~0,02%
Manabi Iron Ore quality in comparison to other projects - Seaborne iron ore grades (lump, sinter and pellet Feed)
12
10 Mtpy
10 Mt pa
10 Australia 8
Alumina + Silica Content (%)
Sílica + Alumina (%)
Australia 1 Australia 6
8 India 1
Australia 3 South Africa 1
South Africa 2
6 Australia 5
Australia 2 Australia 7 Brazil 1
Australia 4 Australia 9
4 Brazil 3
Brazil Brazil 5
Australia Brazil 4
2 South Africa
Manabi 2016
India Brazil 2
Manabi Brazil 6
0
54 56 58 60 62 64 66 68 70
Iron Content (%)
Source: Manabi S.A., based on publicly available information from Anglo American reports; each number represents a project of a Company or a group of Companies in the location indicated.
Confidential 12
13. Strong Demand for Manabi’s High-quality Iron Ore
Europe
USA / Mexico
China / Korea /
Japan / Taiwan
Middle East
and North
Africa India
Trinidad &Tobago
Brazil
Europe MENA / T&T / India China / Korea / Japan / Taiwan
• Very dependent on a sole supplier • Direct Reduction steel producers • Need premium iron ore to balance with
• Needs “premium” iron ore to balance requires low contaminants iron ore low quality/lower cost Australian iron ore
quality deterioration • Fast growing market • High quality steel requires low P-content
• High quality steel requires low P-content iron ore (Japan, Korea, Taiwan)
iron ore
USA / Mexico Brazil
• Cheaper natural gas is attracting new • Needs new source of “premium” iron
capacity in DR steel facilities which ore to balance quality deterioration
require high grade iron ores • Growing consumption
Confidential 13
15. Pilar Hill Project Overview
Project highlights A Logistics alternative A
• Premium product with high global demand • Pipeline to be built on BOT
Governador
(build-operate-transfer) basis
• 25 Mtpy of very high-quality iron ore Pilar Hill Valadares • Extension: ~530km
concentrate (68.5% Fe, low impurity) Conceição do
Mato Dentro
• 20 years of production, starting in
3Q16 North
Dark Hill
Port
• Sizeable certified and potential resources
Itabira
Belo
• 65 mineral rights in Minas Gerais, next Horizonte Private
to Anglo American Minas Rio project mixed-use
ES port terminal
• Inferred: 1,216 Mton JORC Certified
Vitória • Port site in
MG Espirito
• Potential: 1,621 Mton
Santo
• Total: 2,837 Mton
• Significant drilling campaign
B Logistics alternative B
• 147 drill holes; 16,071 meters drilled • Pipeline of around 170km connecting the
Pilar Hill mine to the EFVM (to be built as BOT)
• Only 6% of area covered, indicating • Rail spur of around 80km connecting the
high potential for increasing resources EFVM to the North Port, flat terrain
• Fully integrated logistics alternatives:
RJ
A Dedicated pipeline to be built on BOT
A)
(built-operate-transfer) basis
Lines represent: Colors represent:
Railroads Alternative A
B)
B Vitória-Minas railroad Rio de Janeiro
Pipelines Alternative B
Confidential 15
16. North Port
BR 101 Area: ~3,000 acres
ES
ES 358
ES 245
ES 248
Rio Doce
North Port
Depth: -19 m
Serra
Vitória
Vila Velha
BR 101
Port Terminal Offshore Facilities (initial phase) Distances
• Natural depth over 15m @ 5 km from coast • Access Bridge: up to 5.0 km Pilar Hill North Port 531 km
• Dredging to 19m (initial phase) • Berths: Ships up to 180,000 tons
• Port site with a total area of approximately • Iron Ore – 1 Shiploader EFVM North Port 80 km
3,000 acres (Main ES port: 4,400 acres) • 1 Conveyor belt Vitória North Port 120 km
Confidential 16
17. Macro Project Timetable – Pilar Hill(1)
Timetable
Permitting
Environmental Impact Licensing
Assessment • Preliminary Operation License
• Mine, Plant and Utility Environmental License Construction License • Port (1Q 2016)
(1Q 2012) • Mine and Port (1Q 2013) • Mine and Port (3Q 2013) • Mine (2Q 2016)
• Pipeline and Port (3Q 2012) • Pipeline (3Q 2013) • Pipeline (1Q 2014) • Pipeline (3Q 2016)
1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 1Q17 3Q17
2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17
2012 2013 2014 2015 2016 2017
Mine Production start-up (3Q 2016)
Port
Pipeline
Execution
Production Schedule (Mtpy)
Pilar Hill 25 25 25 25 25 25
6
2016 2017 2018 2019 2020 2021 2022
(1) Timetables and production schedule are based on current estimates and are subject to change 17
Confidential
19. Dark Hill Project Overview
Project highlights
• Low-cost production of 6.0 Mtpy high- Conceição do Governador Valadares
quality iron ore concentrate (68.5% Fe, Mato Dentro
low impurity) Dark Hill
Pilar Hill
• Starting in 2Q 2016
Usiminas
• Strategically located to supply the
3rd Parties
growing iron ore domestic consumption Belo Arcelor Mittal
in the region Horizonte Itabira
• 30 km from Vale’s Itabira mines ES
• 120 km from steel works nearby MG
Vitória
Ipatinga region (MG)
• Considerable amount of resources
should allow production for at least 18 Lines represent:
years Roads
Railroads
• 5 mineral rights in Minas Gerais
• Inferred: 251 Mton JORC Certified Dark Hill business model
• Potential: 419 Mton Mining Beneficiation unit trucks/railway Domestic market
• Total: 670 Mton
• Logistics via existing highway and/or
railway system
Confidential 19
20. Sizable Local Demand
VALE (Itabira)
• Only 30 km from Dark Hill Project
• VALE has been a major buyer of iron ore for the past decade
• VALE’s purchases range from 10 to 20 Mtpy and complement, both quantitatively and qualitatively, its portfolio of products
Usiminas
• Largest steel producer in the State of Minas Gerais
• Production capacity of more than 5.0 Mtpy of steel products
• It is also the largest consumer of ore in the Vale do Aço region, consuming up to 8.0 Mtpy of iron ore
• USIMINAS obtains its supply from the market, of which VALE is the main supplier, and offers pellet and sinter feed
• The Intendente Câmara mill is 124 km from Dark Hill, thus enabling highway transportation under adequate conditions
Arcelor Mittal (Monlevade)
• Traditional manufacturer of steel products for construction, the Monlevade mill has a production capacity of 1.1 Mtpy of steel
and consumes up to 1.6 Mtpy of iron ore
• ARCELOR-MITTAL obtains its supply of iron ore preferably from its own mine, but since it needs to make adjustments to the
quality of its mix of ores, it also buys products from other sources
• Close to Dark Hill, which makes this client a firm buyer in view of the differentiated quality of the Manabi’s product
Acesita
• Largest manufacturer of specialty steel in Latin America, with a production capacity of 700,000 tons of finished product
• Acesita/Aperam has two lines of products, stainless steel and steel for the consumer electronics industry, both with special
quality requirements, which requires Acesita to search for high-quality raw materials, which makes it an attractive target for the
ore of Dark Hill
• ACESITA purchases 1.0 Mtpy and has sought alternative sources to the traditional suppliers in the market
Confidential 20
21. Macro Project Timetable – Dark Hill (1)
Timetable
Permitting
Preliminary License
Environmental Impact Assessment
• Mine, Plant and Utility Construction License Operation License
1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 1Q17 3Q17
2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17
2012 2013 2014 2015 2016 2017
Mine Expansion
Production start up (2Q 2016)
Execution
Production Schedule (Mtpy)
Dark Hill 6 6 6 6
4
2
1
2016 2017 2018 2019 2020 2021 2022
(1) Timetables and production schedule are based on current estimates and are subject to change
Confidential Studies for Dark Hill project are currently under development
21
23. Financial and Operating Snapshot
Pilar Hill Dark Hill
Year of Steady State 2017 2019
Steady State Production (Mtpy) 25 6
EBITDA @ Steady State US$ 1,825 million US$ 298 million
Total Capex US$ 3,375 million US$ 721 million
Capex/ton (US$/ton) 135.0 120.1
NPV @10.6% WACC US$ 5,265 million US$ 692 million
Unleveraged IRR (%) (1) 29.3% 25.1%
1,283 243
1,157
181
Project Capex Disbursement 140
Schedule 576
92
(US$ million) 258 41
101 24
2012 2013 2014 2015 2016 2013 2014 2015 2016 2017 2018
Source: Coffey Feasibility Study – March & April, 2012
Notes: (1) No financing considered
Confidential 23
24. Key Operating and Financial Metrics
FOB iron ore price build-up (US$/t)
10.20
22.50 29.30
34.20
120.00 126.80 116.60
97.50 82.40
CIF Price China
CIF Price China Freight FOB Price Brazil Premium FOB Price Pilar Wet basis FOB Price Pilar Domestic Market FOB Dark Hill
(62.0%,dry basis)
(62% Fe, dry basis) (Avg. (62.0% Fe, dry for 68.5% Fe Hill conversion Hill Adjustment (68.5% Fe, wet
Brazil/China) basis) (US$ 4.5 / % Fe) (68.5% Fe, dry (68.5% Fe, wet basis)
basis) basis)
Production Schedule (Mtpy)
Dark Hill Pilar Hill
31 31 31 31
29
27
25 25 25 25
25
25
7
6 6 6 6 6
2 4
1
2016 2017 2018 2019 2020 2021 2022 +
Source: Coffey Feasibility Study – March & April 2012.
Confidential 24
25. Key Operating and Financial Metrics
CAPEX (US$ MM) PILAR HILL DARK HILL OPEX (US$/ton) (Average) PILAR HILL DARK HILL
Mine 142 64 Mine 8.2 6.4
Infrastructure 63 103
Plant 11.7 12.6
Plant 1,376 289
Pipeline (OPEX + tariff) 14.4 N/A
Pipeline 0 0
Filtering 1.2 0.9
Port + Filtering 770 0
Port 1.9 N/A
Feasibility + Land 270 89
SG&A 1.5 0.7
Contingencies 586 130
Pre-Operational 167 45 Environment 0.5 0.5
TOTAL 3,375 721 TOTAL 39.3 21.2
Source: Coffey Feasibility Study – March & April 2012
Confidential 25
26. Thank you
Rua Humaitá, 275 – 10th floor
22261-005 Rio de Janeiro – RJ – Brazil
Tel. / Fax 55 21 2538-4900
26
ri@manabibrasil.com.br
Confidential
