Mgx Resources Limited · ASX:MGX
Mgx Resources — Metalloinvest Group — Investor Presentation (October 2006)
19 slides from Mgx Resources's investor presentation, October 2006
Slide 1: Metalloinvest Group Information Memorandum
Metalloinvest Group A flagship company shaping the development of Russia ’s mining and steel industry Information Memorandum October 2006
Slide 2: Table of Contents
TABLE OF CONTENTS Executive summary ..................... I Group overview .......................... II Group performance ..................... III Value addition............................. IV 2
Slide 3: Executive Summary
EXECUTIVE SUMMARY Introduction The Presentation (information memorandum) provides an introduction to the Metall oinvest Group, its main producing companies, management, asset base, performanc e, and corporate background In December 2004, Mr. Alisher Usmanov and Mr. Vasily Anisimov, t wo Group’s shar
Slide 4: Group Structure
GROUP OVERVIEW Group Structure Iron Ore Division 98% 99% Steel Division 100% 95% 35% Manufacturing Division 100% Ormeto-YUMZ Transportation Division 100% 100% Metalloinvest Trans RudMet Trans 4
Slide 5: Group Structure
GROUP OVERVIEW Group Structure LGOK is the centerpiece of the Group and is the leading iron ore producer in Russia with a 21% share of the domestic market. LGOK owns the second largest r eserves domestically and is a recognized producer of high quality iron concentrate, pelle ts and the only produce
Slide 6: Group Structure (continued)
GROUP OVERVIEW Group Structure (continued) MMZ is located in Moldova. It has an annual production almost of 1 mln tonnes of high quality EAF steel. It is a member of the International Iron and Steel In stitute and its Quality Management System was approved by Lloyd ’s Register Quality Assurance unde
Slide 7: Group Performance
GROUP OVERVIEW Group Performance In 2005 the Metalloinvest Group ’s consolidated revenues reached USD 5.0 billion according to the IFRS accounting statements. The Group has separ ate IFRS audited reports for all its producing assets Steel Production in 2005 mln tonnes Product Ural Steel OEMK MMZ Tot
Slide 8: Corporate History
GROUP OVERVIEW Corporate History Mikhailovsky GOK (MGOK) was established upon the wealth of the Mikhailovsky iron ore de posits in the European part of Russia. The total proven reserves of the company contain more than 11 billion tonnes of crude iron ore In December 2004 Mr. Alisher Usmanov and
Slide 9: Geographical Presence in CIS
GROUP OVERVIEW Geographical Presence in CIS Metalloinvest Мikhailovsky GOK Мoldavsky MZ Lebedinsky GOK Iron ore (mining) Oskolsky EMK Ural Steel ОRMETO-YUMZ Steel (metals) Mechanical Engineering Management Company 9
Slide 10: Market Share: Russian Iron Ore Mining Industry, 2005
GROUP OVERVIEW Market Share Russian Iron Ore Mining Industry, 2005 Production, Company % ‘000 tonnes Lebedinsky GOK (LGOK) 20, 20,564 564 21% Mikhailovsky GOK (MGOK) 16,902 17% 21% Stoylensky GOK (StGOK) 11,891 12% Karelsky Okatysh ( KarOkatysh) 9,123 9% Kachkanarsky GOK 8,649 9% Evrazruda 7,502 8%
Slide 11: Market Share: Ural Steel & OEMK, 2005
GROUP OVERVIEW Market Share Ural Steel & OEMK, 2005 Production, % of Russia Totally, Segment Company ‘000 tonnes Russia ‘000 tonnes EAF Steel OEMK, Ural Steel 3,400 24% 13,511 Steel for Machinery Ural Steel 262 25% 1005 Pipe Billets OEMK, Ural Steel 628 44% 1,516 Strip Ural Steel 372 42% 898 Bridge
Slide 12: Principal Shareholders
GROUP OVERVIEW Principal Shareholders Alisher Usmanov • Holds a BSc in International Law from MGIMO and a degree in Bank ing from the Financial Academy, Ph.D. in Sociology • From 1994 to 1997 he was the Senior Advisor of MAPO, the state -owned aviation holding, where he became the Advisor of CEO in
Slide 13: Board of Directors
GROUP OVERVIEW Board of Directors Farhad Moshiri – Chairman of the Board • Holds a BSc (honours) degree in Economics and Statistics from London U niversity and is a fellow of the Chartered Association of Certified Accountants • Farhad worked for Ernst&Young and Deloitte&Touche from 1979 to 1 993 whe
Slide 14: Board of Directors
GROUP OVERVIEW Board of Directors Maxim Basov – First Deputy to CEO • Graduated from New York University with a degree in Economics an d Finance, International Business and Philosophy • M.Basov started his career at CitiBank, next held a position of senior analyst at MFK Renaissance, later shifted t
Slide 15: Performance: Iron Ore Division
GROUP PERFORMANCE Iron Ore Division Lebedinsky GOK: • Russia’s largest iron ore producer representing 21% of the market with 20.5 mln tonnes in 2005 • Russia’s second largest reserves with over 5.3 bn tonnes proven • Highest quality concentrate in Russia, 69.5% of iron • The only CIS mining company
Slide 16: Performance: Steel Division
GROUP PERFORMANCE Steel Division Ural Steel: • Russia’s 7th largest steel producer with 3.6 mln tonnes of crude steel in 2005 • Controls niche of bridge and strip products on the Russian marke t with 64% and 42% respectively • The main mill – OHMK-Ural Steel, with a production capacity of over 4 mln
Slide 17: Value Addition: Experience in the Investment Group
VALUE ADDITION Experience in the Investment Group Experienced Investor: The investor group would benefit from a well -funded and experienced partner active in the industry into which they are investing. LG OK and MGOK and its affiliates have a long-term and successful track record in Mining and Me
Slide 18: Value Addition: Industry Know-How in Mining and Metals
VALUE ADDITION Industry Know-How in Mining and Metals Know-How: The Group controls Russia ’s largest Iron Ore mines and has an experienced management team. Our comprehensive knowledge of this industry is a valuable asset Technologies and Processes: The Group focuses on CAPEX in technologies that
Slide 19: Value Addition: Hot Briquette Iron (HBI) Production
VALUE ADDITION Hot Briquette Iron (HBI) production HBI Potential: The growing global demand for HBI is largely connected with the decrease in scrap availability across the world. Scrap and HBI are the main source s for the EAF steel production which proportion has risen and will continue to grow
Metalloinvest Group — Investor Presentation (October 2006) on 6ix