Download - 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
BEREN MINING COMPANY
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BEREN MINING COMPANY
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BEREN MINING COMPANY
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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]