beren mining

7/31/2019 Beren Mining

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BEREN MINING COMPANY

IPO:Summary

Largest Initial Public Offering ToDate on the Mongolian StockExchange

2012Underwriter

Member of Mongolian Stock Exchange

BDSEC JSC


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THE INITIAL PUBLIC OFFERING

Name of security: Beren Mining

Type of shares: Common

Form of shares: Intangible

Nominal value: 157.35MNT

/0.11 USD/

Total number of shares: 1,740,813,320

Number of shares that can be retained by current shareholders: 1,218,569,324

Percentage of shares that can be retained by current shareholders: 70%

Number of shares offered to public: 522,243,996

Percentage of shares offered to public: 30%

The offer price: 250 MNT

/0.18USD/

Total amount raising: 130,560,999,000 MNT

/96,513,820 USD/

Placement in primary market: The shares will be mostly offered to

institutional investors and other investors

on the Mongolian Stock Exchange.


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QUICK FACTS ABOUT THE COMPANY

INCORPORATED IN 2005

MINING PERMTIS ON WORLD CLASS IRON ORE DEPOSITS500 MILLION TONS; ARKHANGAI WIDE UP TO 1.3 BILLION TONS

MININING OPERATIONS SINCE 2007, EXPORTS TO CHINA

THE ONLY IRON ORE COMPANY IN MONGOLIA TO ADOPTCOMPREHENSIVE WET PROCESSING TECHNOLOGY

THE SOLE MANUFACTURER OF INDUSTRY STANDARD IRON ORE FINESWITH 65% TFE IN MONGOLIA


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PROJECT TO SUPPLY THE WORLDS BIGGEST IRON ORE MARKET

CHINASNORTHEASTERN STEEL

INDUSTRY

BEREN MINNIGCOMPANY

CURRENT MAJORSUPPLY ROUTES


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Iron OreBeneficiation Plant

Beren Mining

Camp SiteBeren MiningIron Ore Mine

Pit #1

Beren MiningIron Ore Mine

Pit #2

BEREN MINING COMPANYCURRENT STATE


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MINING CRUSHING GRINDING CLASSIFICATIONMAGNETIC

GRAVITATIONAL

SEPARATION

DEWATERING

Fe 42%

>200

Fe 42%

30-3

Fe 42%

77>

Fe 42%

77>

Fe 65%

77>

Fe 65%

77>

MANUFACTURING FLOWSHEET



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BEREN MINING COMPANY PRODUCTS


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EXPORT TO CHINA AND OTHER COUNTRIES

- Integrated Steelmakers- Blast furnaces, Agglomeration & Sinter plants- Minimills & Direct reduction plants

IRON ORE CONCENTRATE FINES

~65% TFE, S0.01, P0.1

BEREN MINING PRODUCT


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10551Tsenkher

9772Tamiryn Gol

11595Khadat Tolgoi

11619Ulziit

Scale:1:500,000

Name of thedeposit

Resource

amount

Measured

Iron ore depositof Tamiryn Gol

4,541,156

Iron ore depositof Tsenkher

21,218,300

Iron ore depositof Ulziit

16,701,200

Iron ore depositof Khadat tolgoi

42,180,000

Total indicatedreserve

84,640,656

- Beren Group LLC have 4 Iron ore deposits in Arkhangai Province. Total reserve of the 4 deposits are 84million tons- Deposit operation period is 100 years

-Beren Mining LLC holds 9513 hectare land with 9774X, and 6736 hectare land with 11472X explorationlicenses in Tsenkher, Khotont and Tuvshruulekh soums of Arkhangai province. 11

Iron ore deposits in possession ofBeren Mining LLC


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BEREN MINING

CURRENT STATE

- In operation since 2007

- Manufacturing capacity; 250,000 tons per year

- The indicated iron ore reserves of the company is 84 million tons.The inferred resources is approximately 500 million.

THE PURPOSE OF THE IPO

- Increase the capacity to 0.5 million tons per year

- Increase the capacity of DRI plant to 300,000 tons per year


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# Matter Value

1500 thousand tons concentrator, 300thousand tons direct reduced iron plantsbusiness value

$ 310,617,348.92

2 Total number of shares 1,740,813,320.00

3 Per share to be allotted $ 0.18

BEREN MINING VALUATION

Value Of The IPO Based only on the future cash-flow

Resource value not included in the evaluation84.64 million metric tons of INDICATED resources

Possible 500 million tons of inferred resourceWhen calculated from the 84.64 million tons, the resource evaluationas per commonly practiced routines amounts to over 800 million USD

Prospective value: in excess of 1.1 billion USD


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By the end of year 2014, iron ore beneficiation plant will engage full capacitywhich is 500,000 tons annually. Furthermore, DRI plant located next to iron ore

beneficiation plant will also emerge full capacity production at the same time.

Revenue Appreciation

Year 2012 2013 2014 2015

Iron ore beneficiation plant 250,000 202,500 300,000 500,000

Targeted capacity usage percentage, % 40% 41% 60% 100%

Direct reduced iron plant 10,000 100,000 160,000 300,000

Targeted capacity usage percentage, % 3% 33% 53% 100%

Construction of plantConstruction of plants, trial

period

Alignment,

Production

Commencing

production with full

capacity


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Estimated Income Statement

2012 2013 2014 2015

1 Revenue

1.4 Net sales 11,860,567.41 43,058,725.45 69,478,667.86 128,261,236.61

2 COGS 4,355,736.96 15,885,177.24 24,681,280.18 44,842,722.13

3 Gross profit 7,504,830.45 27,173,548.21 44,797,387.68 83,418,514.48

4 Operational expenses 6,205,832.05 11,411,158.32 17,088,559.41 30,768,791.57

5 Operational income /loss/ 1,298,998.40 15,762,389.89 27,708,828.26 52,649,722.91

8 Surplus or deficit from ordinary activities 1,298,998.41 15,762,389.88 27,708,828.26 52,649,722.91

12 Income before tax/Loss/ 1,298,998.41 15,762,389.88 27,708,828.26 52,649,722.91

13 Income tax 129,899.84 3,619,168.90 6,605,778.49 12,841,002.16

14 Net income during balance report /Loss/ 1,169,098.56 12,143,220.98 21,103,049.77 39,808,720.75

15 EPS /loss/ 0.6 0.7 1.22 2.2916 Non-cash expenses 7,669,870.77 7,669,870.77 7,669,870.77 7,669,870.77

17 Main financing charges (40,078,855.54) (50,397,572.11) (927,142.86) (927,142.86)

20 Net cash flow (31,239,886.21) (30,584,480.36) 27,845,777.69 46,551,448.66


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ENDTHANK YOU

Beren Group

Ulaanbaatar, Mongolia

Tel: +976 55151715

Email: [email protected]

Website: www.beren.mn
mailto:[email protected]:[email protected]

beren mining

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