Doe Run Peru Asset Sale. Cobriza Mine

Transcription

1 Doe Run Peru Asset Sale Cobriza Mine

2 Doe Run Peru Cobriza Mine 2 Cobriza Mine Location: Peru is a leader in global mining with a long history of rich deposits and profitable ventures. Cobriza mine, which has been opera ng for more than 50 years, has been an important contributor to the country s mining legacy as a consolidated producer of copper and silver. This underground mine is highly mechanized and its installa ons provide an op mal pla orm for exploita on and sustained growth. The Cobriza underground mine is located southeast of Lima on the western flank of the Andes and on the le bank of the Mantaro river in the Churcampa province, region of Huancavelica, at the following coordinates: E , N and between 2,100 y 2,700 m.a.s.l. The area s climate is temperate, which facilitates mining ac vity on a year-round basis with few interrup ons. Cobriza Mine Key Data Stage Production Ownership 100 % DRP Mine Type Underground Mine Life (years) ~13 Throughput (tpd) 4,200 Cash cost (US$ /Lb) 1 2 High poten al to increase capacity to 9,100 tpd of ore Average January to September Accesibility : Cobriza s communicability is one of its principal advantages. The mine can be accessed via well-maintained highways and road systems. The routes of access are Lima - Huancayo - Cobriza and Lima - Ayacucho Cobriza.

3 Doe Run Peru Cobriza Mine STRETCH DISTANCE 3 Fine Copper Produc on (tons) ROAD TYPE Lima (Callao) La Oroya 178 km (4 ½ hours) Paved 25,000 La Oroya Huancayo 132 km (2 hours) Paved 20,000 Huancayo Pampas 80 Km (2 hours) Paved and packed dirt Pampas Detour to the mine 100 km (3 ½ hours) Packed dirt Detour to the mine Mine 10 km (1/2 hours) Packed dirt Total 516 km 20,687 18,437 21,201 20,334 19,667 20,327 20,258 19,661 13,199 12,448 15,000 10,000 5,000 0 In terms of shipping, 100 % of Cobriza s products are currently exported through the Port of Callao, one of the La n America s premier mari me transport and service hubs (*) (*) Es mate October, November and December Production: Mineral resources and reserves : The mine has been producing copper since the late 1960s. It currently processes 4,200 tons per day of ore but has high poten al, when opera ng at full capacity, to generate 9,100 tons per day. We are confident that on-going explora on on concession sites has the poten al to significantly increase the current 13-year life span projected for the mine. Cobriza s rock mass is highly competent, which significantly reduces the cost of sustaining the mine s structure. The mineral processing circuit s modular design adapts efficiently to varia ons in produc on requirements, providing the operator with flexibility to respond to changes in the market. Cobriza generates high-quality concentrates that carry low penal es for impuri es and offer good copper content. When working at mineral treatment levels of 6,500 tpd, average yearly copper produc on at the mine was situated at 20,000 tons. The last external audited reserve and resource statement for Cobriza (2014) includes total resources of 46.7 million tons with an average of 0.95% copper and g/t silver million tons of Cobriza s reserves, with levels of 1.08% copper and g/t silver on average, are NI compliant. Reserves (million tons)

4 Doe Run Peru Cobriza Mine 4 Concessions and exploration : Tailings Management Internal and third party explora on studies a est to the fact that our concession areas have considerable poten al. Only 6 concessions (4,800 hectares) are currently mined. Explora on work has been conducted primarily in the Jampato, Pukatoro and Choccec areas. Currently, tailings are deposited on the surface (20%) and inside the mine through hydraulic filling (80%). Construc on of phase IV of the Chacapampa deposit is underway (Capacity IV and V stage, 3.0 MM m3), which will help assure opera onal con nuity at the mine. Studies have been conducted to build deposits with a capacity of 15.7 MM m3 (es mated) in the Parco zone. SITE CONCESSIONS Ha PROJECT ACTIVITY 6 4,800 Cobriza Mine Exploitation / Exploration 15 12,496 Choccec Exploration Pukatoro Exploration Outside of Cobriza Nieve Nieve Exploration Other No projects No activity TOTAL Inside of Cobriza Energy: Cobriza s electric energy supply is from the na onal interconnected power system (SEIN), grid reference: Mantaro 220 KV. Water: The primary sources of Cobriza s water supply are: Huaribamba and Mantaro rivers and the Lucmayo stream.

5 Doe Run Peru Cobriza Mine 5 Environmental Responsibility : Experienced Management and Technical Team: All of the environmental adapta on projects, known as ex Pama projects, have been successfully completed to op mize tailings, solid waste, waste and mine water treatment management. Ministerial resolu on N MEM/DGM cer fies that Cobriza has complied with all norma ve requirements to limit and mi gate contamina on. Cobriza has a commi ed and experienced management and technical team with ample know-how. Corporate Social Responsibility: Cobriza enjoys ample social license in its areas of influence. Over the years the mine has built excellent rela ons with workers and communi es in its opera ng areas and beyond. Our focus is on empowerment rather than assisten alism, which we believe provides the best pla orm for sustainable growth. Cobriza has engaged in numerous successful ini a ves in the educa on, health, forest development and livestock sectors.

6 Doe Run Peru Cobriza Mine 6 Schedule and Prices for the Asset Sale The conven onal price for the auc on is: US$ 146,611, In the first round, this figure is cut by 2/3 to establish the base price. In the second round, the base price is cut by 15%. In the third round, the price set for the second auc on is cut by 15%. Expression of Interest - Process Overview Doe Run Peru will be seeking Expressions of Interest from interested par es to acquire Cobriza Mine (UMC). Par es with an interest in par cipa ng in the process must purchase the Bases and sign a confiden ality agreement. Any ques ons should be directed to the representa ves of Dirige listed below. Under no circumstances should Doe Run Peru or its shareholders, employees, representa ves, customers, creditors or suppliers be contacted directly. Pablo Peschiera Insolvency Administrator ppeschiera@define.com.pe Oscar Zapata Asset Sale Director ozapata@dirige.com.pe Kathleen Gallagher Investor Rela ons gall.kathleen@gmail.com Cobriza: Expansion of Pampa de Coris - Churcampa - Huancavelica.

7 Doe Run Peru Cobriza Mine 7 Disclaimer This document contains informa on pertaining to the business and opera ons of Doe Run Peru. This Document has been prepared by the Company to inform par es that may be interested in execu ng a sales transac on involving the Company. The sole purpose of this Document is to assist recipients in deciding whether they wish to further inves gate a poten al Transac on. This Document is not intended to be used as the basis for any investment decision or any decision rela ve to a Transac on with the Company. This Document does not cons tute an offer or invita on to sell or purchase securi es. This Document is for distribu on only to persons reasonably believed to have the sufficient exper se to understand the risks involved. The informa on in this Document has been provided by the Company. The informa on contained in this Document speaks as of the date hereof (except where otherwise indicated) and does not purport to contain all the informa on that the recipient may require to evaluate whether or not to proceed with a Transac on No representa on or warranty, express or implied, is or will be made, and no responsibility or liability is or will be accepted by the Company in rela on to the accuracy or completeness of the informa on contained in this Document or regarding any other wri en or oral informa on made available to any recipient. The contents of this Document shall not be construed as cons tu ng legal, tax, regulatory, accoun ng or investment advice or as a recommenda on thereof. Recipients should consult their own counsel, tax and financial advisors as to legal and related ma ers concerning any Transac on described herein. This Document does not purport to be all-inclusive or to contain all of the informa on that a poten al purchaser may require. No investment, divestment or other financial decisions or ac ons should be based solely on the informa on in this Document.

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9 Investment Opportunity Doe Run Peru Asset Sale La Oroya Metallurgical Complex 2017

10 2 La Oroya Metallurgical Complex: A uniquely, integrated, polymetalic metallurgical facility in the central Andes that produces 17 high-quality products. The Complex is comprised of four circuits: lead, zinc, copper and precious metals. This facility was specifically designed to process concentrates from the region and is strategically located to benefit from on-going growth in peruvian mining. Doe Run Peru La Oroya Metallurgical Complex Location: La Oroya Metallurgical Complex is strategically located in the central Andes of Peru at 3,700 meters above sea level in the region of Junin. Accesibility: La Oroya Metallurgical Complex is at the crossroads of wellestablished railroads and highway systems. The facility s proximity to Port Callao allows it to export its products around the world with ease. Around 90 % of the facility s products are exported via the Port of Callao, where we have long-standing relations with global shipping companies. Smelter Type Process Value La Oroya Metallurgical Complex Key Data Primary smelting and refining non - ferrous metal from raw materials. Transforms commodities without added-value (concentrates) into commodities (ingots / cathodes) with high value. Treatment and refining charges, penalties, free metal, premiums and by-products are the main sources of profit. Tranche Distance Crossroads Lima (Callao) La Oroya 178 Km Paved road & Railway Pb, Zn and Cu Concentrates Total Properties Concentrate production in the region exceeds the refinery capacity at La Oroya. 3,480 Ha.

11 Doe Run Peru La Oroya Metallurgical Complex 3 Major Mines Located near La Oroya: La Oroya is strategically located in the Central Andes with easy access to most polymetallic peruvian mines. Energy: Antamina (BHP) Huanzala (Mitsui) Atacocha (Milpo) Huaron (Pan American) Casapalca Pacific Ocean La Oroya Cobriza La Oroya Metallurgical Complex s electric energy supply is from the national interconnected power system (SEIN), grid reference: Mantaro 220 KV. Water: Lima Yauli (Volcan) Cerro Lindo (Milpo) Morococha El Brocal Chungar Huarón Cerro de Pasco Toromocho (Chinalco) San Vicente (SIMSA) Yauricocha (Sierra Metals) The primary sources of La Oroya Metallurgiical Complex s water supply are: Thisgo and Mantaro rivers. Production: During its last full year of operations (2008), the complex produced approximately 54 kt of copper, 116 kt of lead, 43 kt of zinc and 34.5 Moz of silver (in addition to a number of other by-products). When operating at full capacity, La Oroya Metallurgical Complex refined approximately 33% of Peru's silver production. Production Capacity and Quality Metal Mt / Year Quality (%) Copper 72, Lead 122, Zinc 43, Silver 1, Gold bullion Bismuth 1, Selenium Tellurium Antimony Crude Indium By - Product Mt / Year Zinc Dust 3,600 Copper Sulphate 4,500 Arsenic Trioxide 4,400 Zn-Ag Concentrates 3,300 Zinc Sulphate 3,800 Sulphuric Acid - Zinc Circuit 64,000 Suplphuric Acid- Lead Circuit 125,000

12 4 Doe Run Peru La Oroya Metallurgical Complex Environmental Responsability: Eight of the nine Ex PAMA (Environmental Adaptation Program) projects required by the regulatory entity have been completed, representing US$300 MM in capex. The final project pending conclusion (copper circuit) is approximately 50% complete. The company has a monitoring network for air and water quality that follows a strict process for control and quality assurance. All SO 2 results are validated by authorized third-party laboratories. Corporate Social Responsability: La Oroya enjoys ample social license in its areas of influence. Over the years the company has built excellent relations with workers and communities in its operating areas and beyond. Our focus is on empowerment rather than assistentialism, which we believe provides the best platform for sustainable growth. La Oroya Metallurgical Complex has engaged in numerous successful initiatives in the education, health, forest development and livestock sectors. Experienced Management and Technical Team: La Oroya Metalurgical Complex has a committed and experienced management and technical team with solid technical know-how and more than 20 years of experience in the metal and refinery industries.

13 Doe Run Peru La Oroya Metallurgical Complex 5 Schedule and Prices for the Asset Sale La Oroya Metallurgical Complex Public Auction st Round 08 March (US$ MM) 2nd Round 22 March (US$ MM) 3th Round 09 April (US$ MM) Expression of Interest - Process Overview Doe Run Peru will be seeking Expressions of Interest from interested parties to acquire La Oroya Metallurgical Complex (LOMC). Parties with an interest in participating in the process must purchase the Bases and sign a Confidentiality Agreement. Any questions should be directed to the representatives of DIRIGE (company in charge of the asset sale) listed below. Under no circumstances should Doe Run Peru or its shareholders, employees, representatives, customers, creditors or suppliers be contacted directly. Pablo Peschiera Insolvency Administrator ppesquiera@define.com.pe Oscar Zapata Asset Sale Director ozapata@dirige.com.pe Kathleen Gallagher Investor Relations Gall.kathleen@gmail.com La Oroya Metallurgical Complex

14 6 Doe Run Peru La Oroya Metallurgical Complex Disclaimer This document contains information pertaining to the business and operations of Doe Run Peru. This Document has been prepared by the Company to inform parties that may be interested in executing a sales transaction involving the Company. The sole purpose of this Document is to assist recipients in deciding whether they wish to further investigate a potential Transaction. This Document is not intended to be used as the basis for any investment decision or any decision relative to a Transaction with the Company. This Document does not constitute an offer or invitation to sell or purchase securities. This Document is for distribution only to persons reasonably believed to have the sufficient expertise to understand the risks involved. The information in this Document has been provided by the Company. The information contained in this Document speaks as of the date hereof (except where otherwise indicated) and does not purport to contain all the information that the recipient may require to evaluate whether or not to proceed with a Transaction No representation or warranty, express or implied, is or will be made, and no responsibility or liability is or will be accepted by the Company in relation to the accuracy or completeness of the information contained in this Document or regarding any other written or oral information made available to any recipient. The contents of this Document shall not be construed as constituting legal, tax, regulatory, accounting or investment advice or as a recommendation thereof. Recipients should consult their own counsel, tax and financial advisors as to legal and related matters concerning any Transaction described herein. This Document does not purport to be all-inclusive or to contain all of the information that a potential purchaser may require. No investment, divestment or other financial decisions or actions should be based solely on the information in this Document.

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