Mmg Ltd. · HKEX:1208

Mmg — Minmetals Resources — Merger or Acquisition (April 2011)

20 slides from Mmg's merger presentation, Apr 4, 2011

  1. Slide 1: HKEX announcement: Investor Presentation

    Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in relia

  2. Slide 2: Media contacts

    Media – Hong Kong and Beijing Kreab Gavin Anderson Phone : +852 2523 7189 Richard Barton / Grace Zhang Phone: +852 9308 1056 / +852 6746 8971 Email: [email protected] / [email protected] Media – North America Hill & Knowlton Canada Lindsay Mack Phone: +1 416 413 4771 Mobile:

  3. Slide 3: Proposed Offer for Equinox Minerals Limited

    Minmetals Resources Limited (HK: 1208) Proposed Offer for Equinox Minerals Limited

  4. Slide 4: Disclaimer

    Disclaimer The information contained in this presentation is intended solely for your personal reference and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organisation/firm) or published, in whole or in part, for any pu

  5. Slide 5: Summary of the proposed Offer

    Summary of the proposed Offer MMR has announced that it intends to make an attractive all cash takeover bid for Equinox Allcash ƒƒ All cashoffer offerof ofC$7.00 C$7.00per perEquinox EquinoxMinerals MineralsLimited Limited(“Equinox”) (“Equinox”)share share -- Substantial Substantial33% 33%premium pr

  6. Slide 6: Agenda

    Agenda 01 WHY WHY EQUINOX EQUINOX SHAREHOLDERS SHAREHOLDERS SHOULD SHOULD ACCEPT ACCEPT THE THE OFFER OFFER 02 ATTRACTIVE ATTRACTIVE OPPORTUNITY OPPORTUNITY FOR FOR MMR MMR SHAREHOLDERS SHAREHOLDERS 03 OFFER OFFER CONDITIONS CONDITIONS AND AND EXPECTED EXPECTED KEY KEY DATES DATES 4

  7. Slide 7: Why Equinox shareholders should accept the Offer: substantial premium

    Why Equinox shareholders should accept the Offer Receive a substantial premium for Equinox shares 33% 23% premium premium C$7.00 C$5.71 C$5.27 Proposed Offer value 20 trading day VWAP Last close Note: Equinox 20 trading day VWAP to 1 April 2011 on the TSX. Equinox’s closing price on 1 April 2011 on

  8. Slide 8: Why Equinox shareholders should accept the Offer: attractive valuation multiples

    Why Equinox shareholders should accept the Offer The Offer represents attractive valuation multiples for Equinox 2010 EV/EBITDA EV/resources (US$/lb) 32% increase 32% increase 12.5x 0.38 9.5x 0.29 Proposed Offer multiple Pre-announcement multiple Proposed Offer multiple Pre-announcement multiple Not

  9. Slide 9: Superior alternative to Equinox's offer for Lundin

    Why Equinox shareholders should accept the Offer The proposed Offer provides a compelling premium to Equinox shareholders and a superior alternative to Equinox’s offer for Lundin MMR Offer for Equinox Equinox offer for Lundin 9 All cash Offer of C$7.00 per share 8 Dilutes your Equinox shareholding 9

  10. Slide 10: MMR's acquisition rationale

    Attractive opportunity for MMR shareholders MMR’s acquisition rationale 1 Building a leading international diversified upstream base metals company Excellent fit with MMR’s strategy to grow its upstream base metals 2 business 3 Globally significant copper producer 4 Expands production and extends cu

  11. Slide 11: Building a leading international diversified upstream base metals company

    Attractive opportunity for MMR shareholders 1 Building a leading international diversified upstream base metals company 100% Izok Lake Copper, zinc, lead, silver 100% High Lake E Copper, zinc, E lead, silver 90% Sepon Copper, gold 100% Century 100% Jabal Sayid Zinc, lead, silver Copper, gold, silver

  12. Slide 12: Excellent fit with MMR's strategy to grow upstream base metals

    Attractive opportunity for MMR shareholders 2 Excellent fit with MMR’s strategy to grow its upstream base metals business MMR criteria Equinox Commodities ƒ Copper, zinc, lead, nickel, bauxite 9 Pure copper asset Geographies ƒ Careful analysis of political and 9 Saudi Arabia and Zambia are considere

  13. Slide 13: Attractive copper market fundamentals

    Attractive opportunity for MMR shareholders 2 Consistent with MMR’s strategy to grow its upstream base metals business 24 Global copper supply / demand balance 22 2017 potential demand and 20 base case supply gap of 18 4.2Mt of copper Mt copper 16 14 12 10 2008 2009 2010 2011 2012 2013 2014 2015 201

  14. Slide 14: Increases MMR's exposure to copper

    Attractive opportunity for MMR shareholders 2 Consistent with MMR’s strategy to grow its upstream base metals business Expected FY15 copper equivalent production Pre-acquisition (FY15) Post-acquisition (FY15) Lead 3% Silver 3% Silver 5% Gold 1% Lead 6% Gold 1% Zinc 34% Copper 25% Zinc 63% Copper 60%

  15. Slide 15: Globally significant copper producer

    Attractive opportunity for MMR shareholders 3 Globally significant copper producer 1,800 Global copper production - 2013 estimates (kt) 1,600 1,400 1,200 1,000 14 18 30 800 600 2013 estimated production (kt) 400 200 0 Vale Teck MMR ZCCM UGMK Asarco Xstrata Equinox Codelco Rio Tinto Glencore Marubeni

  16. Slide 16: Expands production and extends current mine life

    Attractive opportunity for MMR shareholders 4 Expands production and extends current mine life Current expected asset mine lives based on current reserves / resources Century 4 Rosebery 10 Golden Grove 7 Sepon 11 Dugald 23 Lumwana 37 Jabal Sayid 10 2011 2016 2021 2026 2031 2036 2041 2046 Source: Pub

  17. Slide 17: Major projects development pipeline

    Attractive opportunity for MMR shareholders 5 MMR’s management and technical expertise will enhance existing operations and deliver on Equinox’s stated expansion plans Major projects development pipeline Exploration Scoping Pre-feasibility Feasibility Execution Operations Rosebery Open Pit GG Xantho

  18. Slide 18: Unique access to secure long-term financing supported by China

    Attractive opportunity for MMR shareholders 6 MMR has unique access to secure long-term financing supported by China Minmetals Corporation ƒ Proposed Offer expected to be financed through a combination of the following sources: – Existing cash reserves – Long-term credit facilities from Chinese bank

  19. Slide 19: Offer conditions and expected key dates

    Offer conditions and expected key dates Terminationof ƒƒ Termination ofthe theproposed proposedoffer offerby byEquinox Equinoxfor forLundin Lundinwithout withoutany anyLundin Lundin shares sharesbeing beingtaken takenup up Simplemajority ƒƒ Simple majorityapproval approvalby byMMR MMRshareholders sh

  20. Slide 20: Highlights of our proposed Offer

    Highlights of our proposed Offer A compelling offer for Equinox shareholders and attractive opportunity for MMR shareholders Equinox shareholders MMR shareholders 9 All cash offer of C$7.00 per share for Equinox 9 Consistent with MMR’s strategy to transform itself into a leading international divers

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