CAP Group update – March 2015

CAP Group update – March 2015
Cerro Negro Norte mine
Raúl Gamonal - CFO
Ownership structure
Mitsubishi
Corporation
Pension
Funds
19,3%
6,8%
Invercap
Other
31,3%
42,6%
47,32%
52,68%
75,0%
99,9%
25,0%
Compañía Minera
del Pacífico
Compañía Siderúrgica
Huachipato
Novacero
50,93%
30,56%
11,03%
57,79%
Cintac
Source: CAP, March 2015
Intasa
1
Iron ore mining
2
Mining sites
Punta Totoralillo Port
CAP Mining has three
different areas of operation
in the north of Chile,
located around the cities of:
El Laco
Cerro Negro Norte
Desalination Plant
Copiapó
Magnetite Plant
Copiapó Valley
• Copiapó
• Vallenar
• La Serena
Los Colorados
Guacolda II Port
Cities
Vallenar
Pellets Plant
Mines
El Algarrobo
Huasco Valley
Plants
Cristales
Ports
El Tofo
Elqui Valley
El Romeral
La Serena
Guayacán Port
3
Cerro Negro Norte mine
4
Magnetite plant
5
Los Colorados mine
Iron
ore
El Romeral
mine
7
Mining property
Ranking 2013
Hectares in exploration concessions - Chile
N°
Company
1
BHP Chile Inc
2
Compañía Contractual Minera Los Andes
3
CAP
4
5
6
Teck Exploraciones Mineras Chile Ltda
Antofagasta Minerals S.A.
Codelco
Ranking 2013
Hectares in exploitation concessions - Chile
N°
Company
1
Soquimich S.A.
2
Codelco
3
Minera Escondida Limitada
4
SCM Virginia
5
Enami
6
Antofagasta Minerals S.A.
7
•
•
CAP
Hectares
1.917.100
841.100
%
11,33
4,97
677.700
4,01
629.700
514.500
435.500
3,72
3,04
2,57
Hectares
2.861.157
840.704
363.798
252.532
250.847
231.392
%
20,06
5,89
2,55
1,77
1,76
1,62
205.788
1,44
Top 3 position in exploration concessions
More than 700.000 meters drilled over the period 2008-2013
8
Source: SERNAGEOMIN
Resources and reserves of magnetic ore
As a result of continued successful exploration campaigns, iron ore resources have increased
progressively over the years, reaching 7,250 million tons in 2014
Mineral resources (1)
Mine/Deposits &
Grade (% Fe)
8.000
7.250
7.000
Tofo 27,7%
Reserves (2)
2.278
2.039
Pleito Cristales 32,8%
6.351
Mine/Deposits
& Grade (% Fe)
2.500
2.214
2.040
Tofo 26,1%
2.000
6.000
Los Colorados
Distrito 43,3%
El Laco 49,2%
5.367
4.716
5.000
4.000
3.249
El Algarrobo Distrito
30,3%
El Algarrobo 45,5 %
3.478
3.000
El Laco 56,7%
1.500
1.403
El Algarrobo
Distrito 35,5%
El Algarrobo 49,0%
1.364
1.000
CNN 36,3%
CNN 31,7%
2.000
Candelaria 10,0%
Candelaria 10,0%
500
1.000
Romeral 30,5%
Romeral 28,2%
0
2009
2010
2011
2012
2013
2014
Los Colorados 34,7%
0
2009
2010
2011
2012
2013
2014
Los Colorados
36,5%
(1) Resources: Minerals measured on a geological ore content feasible of being mined. (2) Reserves: Minerals measured on a geological
content feasible of being mined economically. (3) CMP has the contract for processing the tailings of the Candelaria copper mine.
9
Source: CAP Minería
Mining products
BF and DR Pellets (Fe 65% - 67%)
Lumps (Fe 62%)
Pellet Feed (Fe 67% - 68%)
Fines (Fe 62%)
10
Iron ore shipments and markets
Shipments (Th.MT)
11.469
10.146
10.213
2009
2010
2011
12.246
12.086
2012
2013
12.952
2014
Shipments by markets and products 2014
Lumps Self - fluxing
Sinter feed
4% pellets and DR
7%
pellets
Pellet chips
14%
1%
Fines
2%
Korea Malaysia
1%
1% USA
Bahrein
1%
10%
Japan
7%
Chile
8%
Pellet feed
72%
China
70%
11
Main customers
Deutsche Bank*
Posco
Glencore*
Koch
Cargill*
JFE Steel Corporation
Bahrain Steel
Qingdao Iron and Steel
Xinyu Iron and Steel
Kobelco
Nisshim Steel
Rizhao Iron and Steel
Jinan Iron and Steel
Wanbao Group
RGL Group*
Yaochang Group
CAP Acero
Fangda Iron and Steel
Hangzhou Iron and Steel
12
* Acts as trader
Steel production
13
Steel focus on long products
•
Steel business reorganization in 2H13 to produce 700 kt/y,
with one blast furnace
•
Strong adjustment in its industrial processes and workforce
lowering costs and expenses
•
Sustainable growth in long products demand mainly due to the
need of grinding media supply to the mining sector
Shipments and prices
CAP Acero
Talcahuano
2.000
1.000
883
1.600
737
799
1.400
Th.MT
900
811
699
800
700
700
1.200
600
1.000
500
800
400
600
400
1.113
922
US$/Ton
1.800
300
1.124
859
671
701
200
200
100
0
0
2009
2010
2011
Shipments
2012
2013
2014
Prices
14
Recovery of cash generation (EBITDA)
Net Income and EBITDA evolution
20
14
10
-10
-7
1
2
-9
-12
US$ million
0
-10
-17
Impairment
-20
-30
-22
Net income
-14
-27
EBITDA
-44
-31
-40
-50
-56
-60
1Q13
•
2Q13
3Q13
4Q13
FY2014
Due to the reorganization and adjustment in industrial processes, the steel company has managed to
generate positive cash flow over the last six quarters
15
EBITDA: Gross Margin – S&AE + Depreciation and Amortization, over the last twelve months
Steel processing
16
Steel processing
•
Creates value-added solutions for the construction,
industry and infrastructure sectors in Chile, Peru and
Argentina
•
Chile is LATAM´s most intensive user of steel in
construction
•
Transition to establish new and competitive supply sources
of flat steel
Shipments and prices
Th. MT
500,0
1.167
1.059
370
274
1.119
400
412
Other
12%
1200,0
1.013
400,0
300,0
1400,0
1.252
1000,0
381
800,0
297
600,0
200,0
400,0
100,0
200,0
,0
US$/Ton
1.199
600,0
Sales by Sector December 2014
Industrial
31%
Construction
54%
,0
2009
2010
2011
2012
Shipments
2013
Price
2014
Infrastructure/
Roads
3%
17
Reorganization and assets availability
Steel processing reorganization towards a lighter and lower cost structure
Cintac S.A.
Cintac S.A.
99.99%
Cintac SAIC
99.99%
Inmobiliaria
Cintac S.A.
99.99%
100%
Steel Trading
Company
INC.
Centroacero
S.A.
99.99%
Cintac SAIC
99.99%
Instapanel
S.A.
99.97%
Conjuntos
Estructurales
S.A.
99.99%
Tecnoacero
S.A.
99.99%
Tecnoacero
Uno S.A.
89.48%
Tupemesa S.A.
89.48%
Tupemesa
S.A.
• Assets availability for rental (or sale): Centroacero, 55,600 m2, US$1.3 million yearly
Varco Pruden, 36,000 m2, US$0.8 million yearly
18
Other consolidated assets
19
Desalination plant
Other consolidated assets
20
Power transmission line
Global industry update
21
Global economic scenario
•Real GDP growth expected at 7.0%
in 2015 and 6.75% in 2016
•Real GDP growth expected at 3.1% in
2015 and 2.8% in 2016
• UK real GDP growth expected at 2.6% in 2015 and
2.4% in 2016, whilst Euro Zone GDP growth is
expected at 1.2% in 2015 and 1.6% in 2016
• Real GDP growth expected at
1.1% in 2015 and 1.4% in 2016
•Real GDP growth expected at 0.5% in
2015 and 1.7% in 2016
•Real GDP growth expected at 2.7% in
2015 and 3.5% in 2016
•Real GDP growth expected at 2.6% in
2015 and 3.1% in 2016
22
Source: Bloomberg consensus, February 2015
Seaborne iron ore supply/demand projection
Global oversupply in fines products with grades lower than 62% Fe content
1800,0
1800,0
1600,0
1600,0
1400,0
1400,0
1200,0
1200,0
1000,0
1000,0
800,0
800,0
600,0
600,0
400,0
400,0
200,0
200,0
,0
Million tonnes
Million tonnes
•
,0
2009
2010
2011
2012
Australia
Source: Goldman Sachs, September 2014
2013
Brazil
2014E
2015E
2016E
RoW
Seaborne demand
2017E
2018E
23
Iron ore price evolution
Platts IODEX and 1% diff vs Platts IO fines 65%
($/dmt)
180,00
Platts IO fines 65% Fe
IODEX CFR CHINA 62% Fe plus 3* Mid Range Diff
160,00
140,00
120,00
100,00
80,00
60,00
Source: Platts, March 2015
24
Supply additions is forcing displacement of higher-cost tonnes
•
Displacement has occurred both in China and among non-major seaborne
suppliers
Source: GTIS, Macquarie Research, February 2015
25
Iron ore production cuts: 170 Mtpy in 2014
Cliffs
Northland Resources
Feb – 14, US$ 121 per ton
Canada
Sweden
Price/cost related mine
closure
Kimberley Metals
Price related production
cut
1.5 Mtpy
Australia
2.0 Mtpy
IRC
Price related production cut
1.7 Mtpy
JSW/Minera Santa Fe
Chile
Price related mine closure
2.0 Mtpy
Noble Resources
Sierra Leone
Price related, lack of finance
Russia
Australia
Lack of finance
Placed into administration
– likely closure
1.0 Mtpy
1.6 Mtpy
Australia
Price related mine closure
MMX
1.5 Mtpy
Jun – 14, US$ 93 per ton
Jul – 14, US$ 96 per ton
London Mining
IMX Resources
Labrador Iron Mines
Shree Minerals
Brazil
Australia
Price related mine closure
Price related, lack of
finance
0.1 Mtpy
6.0 Mtpy
Canada
Price related mine closure
1.7 Mtpy
Bellzone
Aug – 14, US$ 92 per ton
Guinea
5.0 Mtpy
Lack of finance
0.5 Mtpy
Sep – 14, US$ 83 per ton
Mt. Gibson
Australia
W Desert Resources
Australia
Oct – 14, US$ 81 per ton
Price related mine closure
Technical failure
2.0 Mtpy
4.0 Mtpy
Pluton Resources
African Minerals
Australia
Sierra Leone
Price related mine
closure
Lack of finance, price
related
Nov – 14, US$ 73 per ton
0.8 Mtpy
20 Mtpy
Dic – 14, US$ 69 per ton
Dannemora
Sweden
Lack of finance
Jan – 15, US$ 67 per ton
1.2 Mtpy
Arrium
Cliffs
Australia
Canada
Price related mine
closure
Price related mine
closure
3.6 Mtpy
6.0 Mtpy
Others
CITIC
Iron Valley
China, India, Others*
Australia
Australia
Price related closures
Technical,
commissioning issues
Price related mine
closure
4.0 Mtpy
0.2 Mtpy
99 Mtpy
Source: Platts and The Commodity Manual, Morgan Stanley, February 2, 2015
* Others include Iran, Canada, Malaysia, Peru, Mongolia, Indonesia, Mexico, Russia, Venezuela, USA, New Zealand, Kazakhstan, Serbia
Further cuts ex-China in 2015…?
Country
Company
Asset
Prod’n (Mtpy)
At high risk of closure: 12.4 Mtpy
Sierra Leone
Timis Corporation
Marampa
5.0
Australia
Mineral Resources
Carina
4.2
Norway
Northern Iron
Sydvaranger
2.2
Sweden
Dannemora Mining
Dannemora
1.0
At moderate risk of closure: 98.5 Mtpy
Australia
FMG
Cloudbreak
40.0
Australia
Arrium
Middleback ranges
13.0
Australia
Atlas Iron
Pilbara assets
12.0
Ukraine
Ferrexpo
Poltava/Yeristovo
11.5
Australia
Cliffs
Koolyanobbing
11.0
Australia
BC Iron
Nullagine JV
5.5
Chile
CAP Minería
El Romeral
3.0
Australia
Grange Resources
Savage River
2.5
Source: “Iron Ore: what to look for in 2015”, Wood Mackenzie, January 2015; The Commodity Manual, Morgan Stanley, February 2, 2015
2014’s international iron ore price adjustment and CMP’s cost reduction
Premium for higher grades ... but most concentrate producers are struggling …
Source: Platts, December 2014
CMP’s cash cost (US$/t)
2013
2014
57,4
49,2
28
Further reduction in 2015’s cash cost
US$/t
Magnetite plant
39.5
Cerro Negro Norte mine
41.8
Los Colorados mine
45.5
El Romeral mine
56.1
Average cash cost
44.4
29
High quality pellet feed - a market with big potential
•
Pellet feed imports will almost double over the next
five years, reaching 110Mt by 2020, taking China’s
import dependency for pellet feed from 35% to 50%.
•
The spread between pellet feed and sinter fines
switched from a discount to a premium. This
premium has averaged almost US$3/t during 2014.
30
Source: Wood Mackenzie, December 2014
China has yet to reach peak steel per capita
•
Steel intensity stabilizes or starts to decline
at around US$15,000 to US$20,000
GDP per capita
•
China GDP per capita as well as its
comparison with peak steel per capita use,
especially with the US, shows upside from
current levels
Source: World Steel association, IMF, EY, ArcelorMittal
•
Drivers of steel intensive growth
31
SOURCE: Metal Bulletin Events, Drivers of Chinese steel demand, Peter Markey, February 2015
Source: CRUspi, March 2015
ene 2015
sep 2014
may 2014
ene 2014
sep 2013
may 2013
ene 2013
sep 2012
may 2012
ene 2012
sep 2011
may 2011
ene 2011
sep 2010
may 2010
ene 2010
sep 2009
may 2009
ene 2009
sep 2008
may 2008
ene 2008
sep 2007
may 2007
ene 2007
US$per ton
ene 2015
sep 2014
may 2014
ene 2014
sep 2013
may 2013
ene 2013
sep 2012
may 2012
ene 2012
sep 2011
may 2011
ene 2011
sep 2010
may 2010
ene 2010
sep 2009
may 2009
ene 2009
sep 2008
may 2008
ene 2008
sep 2007
may 2007
ene 2007
US$ per ton
Steel price evolution
350
300
250
200
150
CRUspi North America
CRUspi Europe
100
CRUspi Asia
50
00
600
500
400
300
CRUspi Flats
200
CRUspi Longs
CRUmpi
100
00
32
Freight rates to China monthly average
33
Source: SSY Consultancy & Research, Seaborne Iron Ore & the Freight Market, China Iron Ore 2015
Financial performance
34
CAP – Consolidated financial evolution
USD Million
2010
2011
2012
2013
2014
Sales
1.994
2.787
2.470
2.297
1.790
740
1.184
764
708
381
37,1%
42,5%
30,9%
30,8%
21,3%
Net Income
590
442
234
184
56
Cash
981
883
711
309
348
1.001
628
719
932
1.270
20
(255)
8
623
922
207
282
777
975
450
-
-
-
0,88
2,42
Iron Ore Shipments (Th tons)
10.213
11.469
12.246
12.086
12.952
Platts 62% Fe CFR China (US$/t)
146,82
169,37
130,08
135,13
EBITDA
EBITDA Margin
Gross Financial debt
Net Financial debt
Capex
Net Financial Debt/EBITDA
96,77 35
CMP – Financial evolution
USD Million
2010
2011
2012
2013
2014
Sales
1.271
1.770
1.406
1.431
942
782
1116
720
678
309
61,5%
63,1%
51,2%
47,4%
32,8%
Net Income
902
700
355
402
113
Cash
558
501
205
46
50
-
-
-
159
483
(558)
(501)
(205)
113
433
121
222
655
911
299
-
-
-
0,17
1,40
Iron Ore Shipments
10.213
11.469
12.246
12.086
12.952
Platts 62% Fe CFR China
146,82
169,37
130,08
135,13
96,77
EBITDA
EBITDA Margin
Gross Financial debt
Net Financial debt
Capex
Net Financial Debt /EBITDA
36
EBITDA contribution by business
97%
100%
80%
94%
98%
94%
89%
77%
60%
40%
20%
18%
6%
5%
8%
6%
4%
0%
4%
7%
0%
2009
2010
-3%
2011
2012
-2%
2013
-2%
2014
-20%
Iron
Steel
Steel Processing
37
(1) EBITDA: Gross Margin – S&AE + Depreciation and Amortization + Dividends received in cash, over the last twelve months
Credit agencies last review
2013
2014
2015
Fitch Ratings
BBB/Stable
outlook
BBB/Stable
outlook
BBB/Negative
outlook
S&P
BBB-/Stable
outlook
BBB-/Stable
outlook
BB+/Negative
outlook
38
Business outlook
39
Seeking higher margins in CAP Mining
Reorientation of product mix
•
Shipments for around 16 million MT in 2015 consider an increase in pellets, to a total of 4 million MT
•
The change in the mix should enhance margins, as pellets have a premium over the pellet feed
2014
2015(P)
Others; 14%
Pellet feed;
72%
Self-fluxing
and DR
pellets; 14%
Others; 10%
Pellet feed;
65%
Self-fluxing
and DR
pellets; 25%
Continued efforts in reducing costs and expenses, combined with a weaker Chilean
Peso, lower oil prices and idle capacity in the mining services industry in Chile will
reduce the average 2014 FOB cash cost of US$ 49.2 per ton to approximately
US$ 44.0 per ton in 2015
40
External factors could bring benefits to CAP Steel
Lower prices of raw materials for steel production, and a depreciated Chilean Peso
would lead CSH to positive results during 2015
Iron Ore
450
180
400
350
300
250
200
150
100
50
0
160
140
US$/Mt
120
100
80
60
40
Jan-15
Nov-14
Sep-14
Jul-14
May-14
Mar-14
Jan-14
41
USD/CLP
650
600
550
500
450
400
350
Nov-14
Aug-14
May-14
Feb-14
Nov-13
Aug-13
May-13
Feb-13
Nov-12
Aug-12
May-12
Feb-12
Nov-11
Aug-11
May-11
Feb-11
Nov-10
Aug-10
May-10
300
Feb-10
CLP per US$
A weaker Chilean Peso adds
competitiveness to domestic
production, as imports become more
expensive
Nov-13
Sep-13
Jul-13
May-13
Mar-13
Jan-13
Jul-14
0
Oct-14
Apr-14
Jan-14
Oct-13
Jul-13
Apr-13
Jan-13
Oct-12
Jul-12
Apr-12
Jan-12
Oct-11
Jul-11
Apr-11
20
Jan-11
US$/Mt
Metallurgical Coal
Reorganization and adjustments in Steel Processing
Reorganization of the company
•
The reorganization of the company to achieve a simpler organizational structure decreased SG&A
expenses in 18.2% as of December 2014, YoY
•
It also resulted in the availability of assets for sale or rental:
• Centroacero: 55,600 m2, US$1.3 million yearly
• Varco Pruden: 36,000 m2, US$0.8 million yearly
Working capital adjustments
•
Inventories will be reduced during 2015, to free up cash
Positive economic outlook for Peru
•
Through its business in Peru, Tupemesa S.A., the steel processing group will benefit from good levels
of GDP growth expected for the Peruvian economy
2015 (f)
2016 (f)
4.3
5.0
2.7
3.5
Peru
GDP growth
Chile
GDP growth
Source: Bloomberg consensus, February 2015
42
New EBITDA from CAP infrastructure in 2015
•
Cleanairtech (desalination plant) and Tecnocap (electric transmission line) started their operations
during 2014 and are projected to contribute to the consolidated 2015 EBITDA and net income as
follows:
US$ million
Cleanairtech
Tecnocap
EBITDA (E)
43,6
7,4
Net income (E)
7,1
3,0
43
Protecting CAP’s cash flow and liquidity levels
Current investment plan reached its
final stage
•
The period within 2011 and 2014 was
strong in terms of capital expenditure, due
to the capacity increase in Los Colorados
mine (brownfield) and the development of
Cerro Negro Norte (greenfield)
There are no relevant investments
planned for the short-term, therefore
pressure on cash disbursements will be
diminished
975
1.000
US$ million
•
1.200
777
800
600
450
400
200
282
142
207
150
100
0
2009
2010
2011
2012
2013
2014
2015 (E) 2016 (E)
CAPEX for 2015 will not exceed US$ 150 million, of which US$ 60 million
correspond to consolidated maintenance CAPEX
44
Further actions to face more bearish scenarios
• CAPEX reduction
US$ million
Potencial cut on CAPEX related
mainly to future development in the
mining business
200
150
100
50
0
2015 (E)
2016 (E)
Maintenance capex
• Drilling and exploration
expenses reduction
Growth capex
70
60
60
Expenses have averaged US$ 41
million per year during the last 5
years. This concept could be reduced
US$ million
50
43
40
30
20
40
33
29
19
10
0
2009
2010
2011
2012
2013
2014
45
Future maximization of EBITDA contribution from our ports
Total capacity CAP ports: 34.8 Mt/y
Punta Totoralillo:
Guayacán:
• 29 km north of Caldera
• Herradura bay, Coquimbo
• Iron ore shipping
• Iron ore shipping
• 200,000 dwt
• 165,000 dwt
• Max capacity: 12 million t/y
• Max capacity: 6 million t/y
• Effective utilization: 4.5 million t/y
• Effective utilization: 2.7 million t/y
Guacolda II:
Huachipato:
• Located in Huasco City
• San Vicente bay
• Iron ore shipping
• Unloading coal, limestone an iron
ore & finished steel shipping
• 300,000 dwt
• Max capacity: 12 million t/y
• Max capacity: 2 million t/y
• Effective utilization: 7.2 million t/y
• Effective utilization: 1 million t/y
Las Losas:
Guarello:
• Located in Huasco City
• Guarello island, south
• Multi purpose port
• Limestone shipping
• Max capacity: 2 million t/y
• 800 kt/y
• Effective utilization: 0.4 million t/y
• Max capacity: 0.8 million t/y
• Effective utilization: 0.5 million t/y
46
Note: Weighted average of port utilization: 47%
CAP is in a long
term business
47
Mining future prospects
Project
Production
Mt
Punta Totoralillo Port
Est. Capex
MUS$
Cerro Negro Norte
Desalination Plant
Magnetite Plant
Expansion
1
Tofo
6,5
13,5
Alcaparra
PF
PF
PF
6
PF
135 Kt Conc-Cu
El Laco
Copiapó
110
Magnetite Plant
1,700
2,900
1,600
300
Los Colorados
Guacolda II Port
Vallenar
Pellets Plant
Alcaparra
El Algarrobo
Productora
Cristales
Pajonales
Cruz Grande Port
Tofo North
Sierra Tofo + Chupete
El Romeral
La Serena
Guayacán Port
48
El Tofo
Geological Projection
Investment (E) : 1,700 – 2,900 MUS$
• Greenfield
Production: 6.5-13,5 Mt/y of pellet feed
Stage:
Conceptual engineering
Volume
[Mt]
Measured
946
Indicated
455
Inferred
190
Total
1,591
Resources
Fe
[%]
25.5
23.4
22.5
24.5
Pit Design
Cross Section
LEGEND
Fe% ≥ 25
15≤Fe%<25
10≤Fe%<15
Fe%<10
Drill Hole
49
Alcaparra (iron/copper)
Investment (E): 1,600 + 300 MUS$
Production:
Iron ore body
6 Mt/y of pellet feed
135 kt/y of copper concentrate
Simbology
Topography
Stage:
Advanced exploration
Drilling
Exploratory metallurgy
Fe% ≥ 45
25 ≥ Fe% < 45
Volume
Resources
[Mt]
Iron
674
Copper
423
Fe/Cu
[%]
24.5
0.26
Pit Design
15 ≥ Fe% < 25
10 ≥ Fe% < 15
Núcleos Estéril
Iron & Copper intersection
Simbology
Topography
Drilling
Cu% ≥ 0.6
0.3 ≥ Cu% < 0.6
0.1 ≥ Cu% < 0.3
0.05≥ Cu% < 0.1
Cu% < 0.05
50
Conclusions
Under current market conditions, the protection of the company’s cash flow
and liquidity levels are of the utmost importance
Cost reduction initiatives and productivity improvements are at the center
of management efforts
• CAP Mining
• Ample portfolio of future prospects based on abundant reserves
• Projects under study are being analyzed considering current market conditions
• Global environmental constraints support the growing need for magnetite concentrate
• CAP Steel
• Focus on long steel products that distinguishes from competitors through technology and/or logistics
• Positive cash generation attained, continuous cost cutting efforts geared towards profitability
• CAP Steel Processing
• Largest flat steel processor in the Pacific coast of South America
• Leader in innovative solutions for industrial and residential construction
51
This information material may include certain forward-looking statements and projections provided by CAP S.A. (the “Company“)
with respect to the financial condition, results of operations, cash flows, plans, objectives, future performance, and business of
the Company. Any such statements and projections reflect various estimates and assumptions by the Company concerning
anticipated results and are based on the Company’s expectations and beliefs concerning future events and, therefore, involve risks
and uncertainties. Such statements and projections are neither predictions nor guarantees of future events or circumstances,
which may never occur, and actual results may differ materially from those contemplated (expressed or implied) by such forwardlooking statements and projections. No representations or warranties are made by the Company or any of its affiliates as to the
accuracy of any such statements or projections. Whether or not any such forward looking-statements or projections are in fact
achieved will depend upon future events, some of which are not within the control of the Company. Accordingly, the recipient of
this material should not place undue reliance on such statements. Any such statements and projections speak only as of the date
on which they are made, and the Company does not undertake any obligation, and expressly disclaims any obligation, to update
or revise any such statements or projections as a result of new information, future events, or otherwise
52
CAP Group update – March 2015
Cerro Negro Norte mine

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