Investor presentation conference call fye 2013 final
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Transcript of Investor presentation conference call fye 2013 final
Q4 2013 & YEAR END RESULTS
MARCH 27, 2014
TSX: MBC WWW.MBACFERT.COM
MBAC FERTILIZER CORP.
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.
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MBAC FERTILIZER CORP.
ON TODAY’S CALL
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Peter Marrone Chairman of Board
Cristiano Melcher President & Chief Executive Officer
Rodrigo Pinto Chief Financial Officer
Introduction
Operations Overview Production and sales
Financial Overview Results & Financial Initiatives
MBAC FERTILIZER CORP.
This is a changed Company
Successfully advanced the three
focal points:
Production
Sales
Liquidity
Company in much better shape
INTRODUCTION
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FINISHED PRODUCT
MBAC FERTILIZER CORP.
OPERATIONS UPDATE
MBAC FERTILIZER CORP.
Sulphur Yard
Sulphuric Acid
Plant
Fertilizer Plant Beneficiation
Plant
Phosphate Yard
OPERATIONS UPDATE
6
MBAC FERTILIZER CORP.
ITAFÓS OPERATIONS
7
Production at the beneficiation
plant for the year is in line with the
budget and continues to ramp up
confirming robustness of process
The Sulphuric acid plant is
providing all required product for
acidulation as well as excess
sulphuric acid which is being sold
into the market
The acidulation plant has
demonstrated ability to hit targeted
volumes
The granulation plant production
has been controlled according to
the working capital availability
Beneficiation Plant
MBAC FERTILIZER CORP.
SALES UPDATE
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Delivered 21,146 tonnes in
2013
Expect to deliver 335-365
ktonnes in 2014
Have firm sales of 110,000
tonnes through mid -March
2014 SSP prices expected
to be consistent with 2013
PRODUCT DELIVERY
FINANCIAL HIGHLIGHTS
MBAC FERTILIZER CORP.
FY2013 FINANCIAL STATEMENTS
10 10 10
Adjusted net loss of US$17
million or US$0.12 basic and
diluted adjusted loss per share
Debt reclassification to short-
term due to IFRS accounting
rules (different results under
previous Canadian GAAP and
current US GAAP)
Going concern consequence
of the reclassification
Subsequent events supported
the Company’s needs such as
prepayment of receivables,
new short-term working capital
facilities and extension of
existing working capital loans
MBAC FERTILIZER CORP.
NEAR TERM FUNDING AND LT DEBT REPROFILE
11 11 11
Strong support from our financial
partners
Near term needs of the Company
Re-profiling of LT debt
Near-term funding
Received a LOI from IFC for a
working capital facility of up to
$40 million
Announced an equity raise of
C$ 18 million
Long-term solution:
Well advanced negotiations with
our lenders
we are highly confident that a
debt repayment extension of 18
– 30 months will be executed
This extension will reduce the
cash outflows of the Company
$13 million in 2014
$46 million in 2015
MBAC FERTILIZER CORP.
QUESTIONS?