MBAC Q3 2014 Presentation
- 1. Q3 2014 UPDATE AND RESULTS NOVEMBER 13, 2014 TSX: MBC WWW.MBACFERT.COM
- 2. SAFE HARBOUR Disclaimer: The contents are not to be reproduced or distributed to any third party, including the public or press. The information contained herein, while obtained from sources which we believe are reliable, is not guaranteed as to its accuracy or completeness. The company is a development stage mineral resource exploration company and many of its mineral projects have yet to be proven to be economic. Certain information set out herein in relation to the Company’s advanced projects is based on technical reports that are in compliance with NI 43-101 that are not yet final. The reader is cautioned that such information is subject to change, although management does not anticipate any material deviations. The contents of this presentation is for informational purposes only and does not constitute an offer to sell or a or a solicitation to purchase any securities referred to herein Forward looking statements This presentation includes certain forward-looking statements about future events and/or financial results which are forward looking in nature and subject to risks and uncertainties. Forward-looking statements include without limitation, statements regarding the company’s plans, goals or objectives and future completion of mine feasibility studies, mine development programs, capital and operating costs, production, potential mineralization, resources and reserves, exploration results and future plans and objectives of MBAC. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may," will," "expect," "intend," "estimate," "anticipate," "believe," or "continue" or the negative thereof or variations thereon or similar terminology. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from expectations include risks associated with mining generally and pre-development stage projects in particular. Potential investors should conduct their own investigations as to the suitability of investing in securities of MBAC Fertilizer Corp. MBAC FERTILIZER CORP. 2
- 3. ON TODAY’S CALL MBAC FERTILIZER CORP. 3 Cristiano Melcher Operations Overview President & Chief Executive Officer Production and Sales Rodrigo Pinto Financial Overview Chief Financial Officer Results & Financial Initiatives
- 4. MARKET FUNDAMENTALS MBAC FERTILIZER CORP. 35 30 25 20 15 10 5 1000.0 900.0 800.0 700.0 600.0 500.0 400.0 300.0 200.0 100.0 0.0 2013 2014E Thousand Tonnes SSP Imports in Brazil 4 Brazil continues to enjoy a very strong agricultural market ANDA is forecasting yet another record year in fertilizer consumption SSP imports expected to decrease to more normal levels leading to reduced competition in target region SSP prices increased over the first quarter 0 2009 2010 2011 2012 2013 2014E Million Tonnes Fertilizer Consumption in Brazil 5 Year Average
- 5. Q3 PERFORMANCE Daily record production of 1,700 tonnes 22,000 tonnes in September $6.3MM in pre-commercial Brazil’s planting season MBAC FERTILIZER CORP. 5 Itafós Production 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 SSP Sulphuric Acid revenue IMPACTED BY LIQUIDITY CONSTRAINTS
- 6. LIQUIDITY INITIATIVES MBAC FERTILIZER CORP. 6 Q3: Proposal for debt extension $10.6MM new working capital facility $4MM in cost-cutting measures Q4 Debt extension agreements executed 2yr deferral of principal and interest payments $5.4MM in new disbursements Purchase of 3rd party phos rock STRONGER WORKING CAPITAL POSITION
- 7. UPDATE ON ACTION PLAN 1. Put the Balance Sheet on Solid Footing 2. Optimize the Ramp-up 3. Operational Excellence 4. Position MBAC as a Supplier of Choice 5. Position MBAC for Future Growth MBAC FERTILIZER CORP. 7 CONTINUED PROGRESS
- 8. MBAC FERTILIZER CORP. FINANCIAL OVERVIEW
- 9. Q3 FINANCIAL HIGHLIGHTS MBAC FERTILIZER CORP. 9 in ‘000s except P/S - $US Q3 2014 Q3 2013 Pre-Commercial Revenue $6,300 $157 Operating Loss $3,049 $2,878 Net Loss $18,744 $6,580 Adjusted net loss $2,163 $4,508 Net Loss per share $0.10 $0.04 Adjusted net loss per share $0.01 $0.03 - Pre-Commercial Stage Company - Impact of FOREX - Re-classification of debt
- 10. DEBT EXTENSION Project Finance 1 $139.8 million Nov.15, 2020 Project Finance 2 $18.7 million March15, 2018 Working Capital Loans 1 $18.9A million June 15, 2018 Working Capital Loans 2 $2.8 million Sept 15, 2016 MBAC FERTILIZER CORP. Principal Amounts Amended Maturity 10 Principal and Interest payments deferred for up to two years A - Includes a working capital loan with Itaú, for which subsequent to quarter end, the lender agreed to extend the maturity date to 2018; this extension is expected to be executed upon maturity of the original loan in March 2015.
- 11. NEAR-TERM FOCUS Working capital preservation Low selling season Financial Advisor Strategic partner or sale of non-core assets MBAC FERTILIZER CORP. ‘000s of Tonnes 2014 2015 SSP 95-104 325-350 Sulphuric acid 15-17 15-17 11 STRONG MARKET FUNDAMENTALS
- 12. MBAC FERTILIZER CORP. QUESTIONS?
Editor's Notes
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