Mining Projects Atlântica Minas Sept/19
Disclaimer This presentation by Atlântica Minas Empreendimentos, Participações e Mineração Ltda. Includes "exploratory statements," as the term is defined in the "Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the US Securities Exchange Act 1934 ". By their nature, these "exploratory statements" involve uncertainties, risks and opportunities, both general and specific, based on analyzes made by Atlântica Minas according to its experience, economic environment, market conditions and expected future events, many of which are beyond the control of the company. These "exploratory statements" may be influenced in particular by factors such as the ability to obtain all necessary regulatory approvals in a timely manner, difficulty in converting geological resources into mineral reserves, and changes in market circumstances. This presentation and its contents are information owned by Atlântica Minas and may not be reproduced or disclosed in whole or in part, without the prior written consent of the owner.
Introduction Atlântica Minas, is a small mining company in Brazil. Through this portfolio, the company will present many of it’s projects and market vision with the intent of seeking a partner to help leverage it’s developments. Currently, this development is done by using resources acquired from already operating projects to fund newer and greater ones, expanding the company’s total production and overall reach. By doing this, the company can avoid creating any sorts of debts while still finding itself open for various sorts of partnerships. Although this comes at the cost of time, since the resources are still quite limited. A partnership would help solve this time variable while also granting broader development options. Production Planning 6.000 5.000 4.000 3.000 2.000 1.000 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Current Planning Planning With Partners
Global Economy 5
Global Economic Growth The global economy remains growing quite strong despite the recent monetary policy adopted by some advanced economies, which led certain financing conditions to lose their potential. While oil prices are substantially higher than expected, other commodities prices also slowly rising, not falling too behind. This is happening despite China’s reduced, expected growth. 6
International Iron Ore Market The price of iron ore in the transoceanic market began to show signs of recovery after it reached the lowest point of the last few years in 2015/16. This can be better visualized in the graph below: Fonte: Vale At the moment, we are preparing ourselves for a high in iron ore pricings, making time a precious element. The sooner we are ready, the more we will be able to profit from the next rise. 7
Overview of Atlântica Minas 8 8
Introduction Atlântica Minas was founded in 1998, operating in the civil construction segment. In 2006 its subsidiary Atlântica Minas Mineração was created to operate in the mining segment. Atlântica Minas invests in the development of mining projects in the states of Minas Gerais and Pará, with potential for exploration of various mineral goods like: iron, gold, industrial quartzite, gneiss, kaolin, quartz, graphite, manganese, limestone, phosphate, lithium, titanium and platinoids. Operation Implementation of Projects What will be Environmental Licensing Mineral doing in the Exploration next ten years? 9
Geophysical Anomalies The Projects are located in areas of great magnetic anomalies (purple color), with high geophysical potential of mineralization. 1 – Iron Ore Desterro 2 – Iron Ore Itatiaiaçu 3 – Iron Ore Belo Horizonte 4 – Phosphate and Titanium Triângulo 5 – Quartz and Calcareos Santa Luzia 6 – Iron Ore Caeté 7 – Manganese Diamantina 8 – Manganese Couto de Magalhães 9 – Iron Ore João Monlevade (Seara) 10 – Iron Ore Nova Era 11 – Iron Ore Santa Maria de Itabira 14 12 – Piles Cuitê 13 – Iron Ore Antônio Dias 8 14 – Lithium Jequitinhonha 7 15 – Iron Ore Timóteo 16 – Iron Ore São José do Goiabal 17 – Iron Ore and Manganese Dom Silvério 15 12 13 18 – Quartz and Kaolim Barão de Cocais 11 16 19 – Iron Ore Barão de Cocais 4 17 25 56 20 – Iron Ore and Gold Rio Piracicaba 18 9 10 3 19 20 21 – Iron Ore Bela Vista de Minas 2 22 21 22 – Quartz Santa Bárbara 23 26 29 24 28 23 – Iron Ore Catas Altas 1 24 – Iron Ore Coimbra 25 – Gneiss Santa Luzia 26 – Manganese and Gold Cata Preta 27 – Iron Ore Itabirito 28 – Iron Ore and Graphite Carijós 29 – Iron Ore and Manganese Jeceaba 10
Portfolio of Projects It’s mining rights are strategically grouped into 36 mineral projects, allocated based on mineral substance and location. Project Portifolio Grafite; 1 Platinum; 1 Lithium; 1 Gneiss; 1 Calcareos; 2 Quartz; 3 Kaolim; 1 Iron Ore; 19 Phosphate; 2 Gold; 2 Manganese; 3 11
Logistics The projects are located close to the combined railroad / railroad / railroad terminals (MRS, VLI and FVM), integrated to the main export ports of the Southeast region of Brazil, allowing to attend both the domestic market and the external market. 12
Strategic Planning 13
Atlântica’s Position in the Market Despite being at the “base” of the pyramid, Atlântica has enough potential to reach it’s “next level” . Small number of 80% companies with large of Brazilian reserves and high scale High number of companies production. Production with small reserves and/or Vale low scale production. Samarco Medium/Low number of CSN Anglo companies with medium 10% reserves and/or medium of Brazilian Vallourec scale of production. Ferrous Production Gerdau Atlântica Minas Usiminas Arcelor 10% of MMX Atlântica Minas Crusaider Ferro + Brazilian Production Itaminas Minerita Herculano Mineral do Brasil Biogold DNPM 14
Potential for Growth Measured Resources Production Projects in Company Iron Ore (Mt) (Mt/y) Operation Ferrous 581,00 4,0 01 Usiminas 550,00 8,0 01 Gerdau 500,00 11,5 02 Arcelor 400,00 7,0 02 Vallourec 6,0 01 Atlântica Minas 160,00 0,3 01 Potential for Potential for > 550Mt > 4,0Mt/y Atlântica Minas meets the main requirement or prequisite to become a Medium producer of iron ore, which is having reserves great enough to leverage its production. This growth will occur through the implementation of several small mining projects. 15
Strategic Planning – Iron Ore and Manganese The strategic planning of Atlântica Minas for iron ore and manganese aims to, when possible, deploy a mobile, small-scale screening and crushing units with dry processing. These have a lower CAPEX but a rapid environmental licensing. This format of operation generates sufficient monetary resources to invest in the continuity of both it’s own development (mineral exploration, environmental licensing, engineering, land acquisition, implantation works, etc.) and of larger projects with humid operation. The strategy is to classify the projects in either class 2 or 3 of environmental licensing (considered a small project), to obtain the concomitant LP + LI + LO (LAC1) and to start a dry operation via a Utilization Permit (or Guia de Utilização, GU), which limits the maximum production in 300,000t/year. Once the final environmental license is obtained for humid processing, this limitation will be removed. Dry Operation – Small Scale Humid Operation – Large Scale 16
Strategic Planning – Quartz, Calcareos, Gneiss and Kaolim For non-metallic minerals, Atlântica Minas is instead planning to, first, develop the necessary studies for it’s licenses and concessions. Once that is ready, it will verticalize the productive chain, by implanting factories and the like with special partners. By doing this, the project worth will increase exponentially. Cement Factories Construction Factories of Refractory Ceramics Glass Industries Agricultural Products Industries Chemical Industries Steel Industries 17
Strategic Planning – Others Minerals For the other minerals (graphite, gold, lithium, titanium, phosphate and platinoids), Atlântica Minas will develop their projects (mineral research, environmental license and regularization in front of DNPM), for later search for selected partners to operate the business. 18
SWOT Weakeneasses Strenghts ➢ Mining rights in contiguous areas with large geophysical ➢ Need for better geological knowledge (investment); anomalies; ➢ Large territorial extensions (~ 1,100 km²); ➢ Dependence on the generation of own resources for the realization of investments (time); ➢ Projects close to the railway logistics network (including rail terminals); Need for agreements with landlords . ➢ ➢ Projects close to important mines in operation and / or depleted; ➢ Productioon of premium products. Threats Oportunities ➢ Possibilities of partnerships with other mining companies; ➢ Price of iron ore; ➢ Projection of high price in the iron ore market starting 2019; ➢ Difficulty in environmental licensing. ➢ Projects with attractive return rates. 19
Closure Atlântica Minas thanks you for taking interest in it’s various projects. Take care!
Atlântica Minas Empreendimentos, Participação e Mineração LTDA Rua Bernardo Guimarães, 2200 – Lourdes Belo Horizonte - MG Telefone: (31) 2551-5500 www.atlanticaminas.com.br
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