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MBAC Fertilizer Corp is focused on becoming a significant integrated producer of phosphate fertilizers and related products in the Brazilian and Latin American markets. The Company is ramping up sales and production at its flagship phosphate Itafós Operations, which took less than five years to get from concept into production.
With a nameplate capacity of 500,000 tonnes of Single Superphosphate (SSP) per annum, Itafós is strategically located in Brazil’s agricultural frontier.
MBAC’s experienced and knowledgeable management team is also advancing two additional projects, the Santana Phosphate Project and the Araxá Phosphate/REE/Nb Project – each of which has demonstrated the potential for robust economics, high grade and a long mine life.
WHY MBAC?• Flagship Itafós phosphate operations is in production and ramping
up sales• Blue sky exploration-stage asset located in Brazil’s agricultural frontier• Brazil has emerged as the world’s breadbasket, and the fifth largest
exporter of agricultural products• Strategic locations of operations and projects provide competitive
cost advantage• Strong, knowledgeable management team with significant mining and
fertilizer experience in Brazil• Long-term outlook for global fertilizer demand is robust
GROWING ON STRONG AGRICULTURAL FUNDAMENTALS.
MANAGEMENT TEAM
Cristiano Melcher, President & CEO
Carlos Braga, VP Technical Services
Nelson Canato Jr., VP Operations
Rodrigo Pinto, CFO
Stephen Bruleton, VP Corp. Development
BOARD
Peter Marrone, Chairman & Founder
Antenor Silva Jr., Founder & Director
Denis Arsenault, Director
Leonardo Marque da Silva, Director
Alexander Davidson, Director
Brian Haywood, Director
David Nierenberg, Director
David Peterson, Director
ANALYST COVERAGE
Joel Jackson, BMO Capital Markets
Keith Carpenter, Canaccord Genuity
Anoop Prihar, GMP Securities
Greg Colman, National Bank Financial
Spencer Churchill, Paradigm Capital
Steve Hansen, Raymond James
CONTACT
Toronto Office: 120 Adelaide Street West Suite 1900 Toronto, ON, CA, M5H 1T1 (416) 367-2200
Steve Burleton, VP Corp. Development [email protected] (416) 367-2200
Joe Racanelli, TMX Equicom [email protected] (416) 815-0700 ext. 243
TSX: MBC OTCQX: MBCFFRecent Price (February 2014): $1.1552-Week Range: $0.91 – $3.30Average Vol (3months): 137,455Shares Outstanding: 152.0MMarket Capitalization: $164.2M
MT
PA
MA
TO
BA
PI
NEW AGRICULTUREFRONTIER
ARAXÁ
ITAFÓS
SANTANA
WWW.MBACFERT.COM
ITAFÓS ARRAIAS PHOSPHATE PROJECT
SANTANA PHOSPHATE PROJECT
MINERAL RESOURCE GRADE TONNAGE REPORT – 1ST JUNE 2012
Cut-Off (% TREO)
Tonnes (Mt)
TREO % LREO % HREO % P2O5 % Nb2O5 % Al2O3 % Fe2O3 %
Measured and Indicated Mineral Resource (2% Cut-Off TREO)
2 6.34 5.01 4.88 0.13 8.40 1.02 5.19 33.06
Inferred Mineral Resource (2% Cut-Off TREO)
2 21.94 3.99 3.88 0.11 7.86 0.64 4.31 29.59
OUR CURRENT FOCUS
TIMELINE & UPCOMING CATALYSTS
BLUESKY WITHIN OUR REACH (ROOM TO GROW WITH AN ADVANCED PROJECT PIPELINE)
• 100%-owned, located in Brazil’s Tocantins State
• Capital spending completed• Focused on “industrial sales” with
traders, blenders, distributors and large farm co-ops
• Proven and probable reserved of 64.8M tones
• 100%-owned, located in one of Brazil’s largest agricultural markets
• High grade deposit provides flexibility to produce higher value-added products
• Robust economics• NPV of $396M and IRR of 19.9%
ARAXÁ PROJECT
• 100%-owned, located in Minas Gerais State
• Contains phosphate below the high grade rare earths and niobium mineralization, which is shallow and accessible
• Robust Economics• NPV of REE/Nb is $967M and IRR of 30%
WHAT IS SINGLE SUPER PHOSPHATE AND WHY IT IS IMPORTANT IN BRAZIL?SSP is a critical ingredient to Brazil’s continuing success as a growing agricultural powerhouse. SSP is the fertilizer of choice in Brazil’s Cerrado Region, a highly arable land area located in central Brazil. SSP is very important in treating sulphur deficiencies in soils as well as enhancing crop yields at attractive, economic costs to farmers. SSP is produced by reacting phosphate concentrate with sulphuric acid.
Q32013
32years
500ktpa SSP
500ktpa SSP
start of commercial production
mine life expected production in Phase 1
www.mbacfert.com
2013 2014 2015+
Itafós Construction completed First SSP deliveries
1st full year of commercial production and sales ramp-up
Operations at full potential
Santana DFS completed Project advancement Construction/production
