2. 2
Disclaimer:
The contents are not to be reproduced or distributed to any third party, including the public or press. The
information contained herein, while obtained from sources which we believe are reliable, is not guaranteed
as to its accuracy or completeness. The company is a development stage mineral resource exploration
company and many of its mineral projects have yet to be proven to be economic. Certain information set
out herein in relation to the Company’s advanced projects is based on technical reports that are in
compliance with NI 43-101 that are not yet final. The reader is cautioned that such information is subject to
change, although management does not anticipate any material deviations.
The contents of this presentation is for informational purposes only and does not constitute an offer to sell
or a solicitation to purchase any securities referred to herein.
Forward looking statements
This presentation includes certain forward-looking statements about future events and/or financial results
which are forward looking in nature and subject to risks and uncertainties. Forward-looking statements
include without limitation, statements regarding the company’s plans, goals or objectives and future
completion of mine feasibility studies, mine development programs, capital and operating costs,
production, potential mineralization, resources and reserves, exploration results and future plans and
objectives of MBAC. Forward-looking statements can generally be identified by the use of forward-looking
terminology such as "may," will," "expect," "intend," "estimate," "anticipate," "believe," or "continue" or the
negative thereof or variations thereon or similar terminology. There can be no assurance that such
statements will prove to be accurate and actual results and future events could differ materially from those
anticipated in such statements. Important factors that could cause actual results to differ materially from
expectations include risks associated with mining generally and pre-development stage projects in
particular. Potential investors should conduct their own investigations as to the suitability of investing in
securities of MBAC Fertilizer Corp.
3. 3
To be a significant integrated producer of phosphate and potash fertilizers
and related products in the Brazilian and Latin American markets
BRAZIL
SANTANA
PHOSPHATE
High grade phosphate deposit
strategically located near the
border of Para and Mato Grosso
states. Meeting animal feed
phosphate and fertilizer demand in
the Center-West Brazil.
PFS completed
ITAFÓS
PHOSPHATE
Itafόs Arraias SSP Project is a
unique project located in the centre
of Brazil’s largest agricultural region
that will provide near-term cash flow
Excellent logistical advantage.
Construction 94% complete
ARAXÁ
PHOSPHATE /REE/Nb
High grade Phosphate and Rare
Earth Elements/Niobium deposit.
PEA completed
São Paulo
Rio de Janeiro
PA MA
PI
BA
GO
MT
TO
AM
MG
SP
Brasilia
New Agricultural Frontier
4. 4
2013
Year of transition
2015+
Period of growth
Lessons learned & applied
Itafós – Construction completed
Itafós – First SSP deliveries
Santana – Definitive Feasibility Study
Itafós – 1st full year of commercial production
Itafós – Capacity reached
Itafós – Ongoing production
Santana – Production launched
Integrated, multi-mine producer
2014
Year of value realization
2012
Year of progress
Itafós – Project advancement
Santana – Pre-feasibility Study
Araxá – Prelim Economic Assessment
5. 5
Current Capital Structure
Research Coverage
Symbol/Exchange TSX: MBC
Shares Outstanding 152.0M
Options 9.2M
Fully Diluted 161.2M
Management & Directors ~13%
Current Share Price $2.15
52 wk High/Low $3.94-$1.90
Market Capitalization ($ millions) $326.8
BMO Capital Markets Joel Jackson
Canaccord Genuity Keith Carpenter
Paradigm Capital Spencer Churchill
Raymond James Steve Hansen
GMP Securities Anoop Prihar
Salman Partners Andrea Rubakovic
National Bank Financial Robert Winslow
Peter Marrone Chairman and Founder
Denis Arsenault, CA Director
Alexander Davidson Director
Brian Hayward Director
Eduardo Ledsham Director
David Nierenberg Director
Hon. David Peterson Director
Leonardo Marques da Silva Director
Antenor Silva CEO, Vice-Chairman and Founder
Roberto Busato Belger President and Chief Operating Officer
Carlos Braga VP, Technical Services
Rodrigo Pinto, CA VP, Finance and CFO
Steve Burleton VP, Corporate Development
Antônio Nagle VP, Administration
Directors & Management
1.8
2.2
2.6
3.0
3.4
3.8
4.2
Stock Chart 52 Week (MBC.TO)
6. 6
Brazil is fast becoming the “bread basket” to the world
Agribusiness sector continues to be major driver of Brazilian economy
Brazil is 4th largest in Agribusiness exports globally
Grain prices remain at high levels relative to historical prices
Key driver of fertilizer prices
Source: ANDA; Ministry of Agriculture; MBAC team analysis
0
100
200
300
400
500
600
700
90 92 94 96 98 00 02 04 06 08 10 12
US$/MetricTonne
Historical Soybeans & Maize Prices
Soybeans Maize (corn)
Land used for cropping in Brazil has increased 2.6% per annum over the past 7 years
7. 7
Fertilizer demand in Brazil continues to grow at a faster pace than developed countries
Consumption has grown at CAGR 5.6% from 20 to 29.5 million tonnes between 2005 and 2012
Imports supply ~70% of the demand
New Agricultural Frontier (MaPiToBa) continues to lead the growth in agriculture in Brazil
Fertilizer consumption grew between 2005 and 2012 at CAGR of 10.4%
Transportation costs continue to rise in Brazil
Due to decreased fuel subsidies and increased regulations
Strengthens logistic advantage for our projects
Source: ANDA; Ministry of Agriculture; MBAC team analysis
0
5
10
15
20
25
30
35
2005 2006 2007 2008 2009 2010 2011 2012
MillionTonnes
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
2005 2006 2007 2008 2009 2010 2011 2012
MillionTonnes
Fertilizer Delivered to Customers in Brazil Fertilizer Delivered to Customers in MaPiToBa Region
8. SSP TARGET
MARKET
OVERVIEW
(BRAZIL)
8
Itaquí Port
Fortaleza Port
GO
Paranaguá Port
(Main fertilizer Port in BR)
Santos Port
Scale: in Kilometeres
1000
PI
PA
MT
TO
AM
MA
Aratu
PortMG
BA
Legend
Other Domestic
Competitor
Closest
Competitor
Domestic
Supply
Import Supply
Araxá Project
New Agriculture
Frontier
Source: MBAgro
Both MBAC phosphate projects
have a significant competitive
advantage resulting from
logistics
Closest competitor ( ) has to
transport its rock from over
1,000 km to its industrial site
Other domestic competitors are
located at minimum of 700 km
away
Closest ports are more than
1,000 km away
Inland transportation costs of
approx. 6 - 7 cents per tonne km
expected to increase – new
regulations / decreased fuel
subsidies
Araxa
2000
Santana
Itafos
500
Km
1000
Km
750
Km
9. 4,702,201
4,234,959
5,033,885 5,363,485 5,067,000
300,753
225,391
312,533
612,072
671,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
2008 2009 2010 2011 2012
Tonnes
SSP Consumption in Brazil
Production Imports
9Source: ANDA; MBAC team analysis
Brazil consumes approximately 5 – 6 million tonnes of SSP per annum
It is estimated that the MBAC target region consumed approx. 1.2 million tonnes in 2012
This is expected to grow to 1.8 million tonnes by 2020 representing a CAGR of over 4% per year
Fertilizer product deliveries in the Company’s target region have lagged year to date
Unusually dry conditions experienced in the first quarter of 2013
SSP prices have weakened in line with global decline in phosphate fertilizer prices
Brazilian soybean production is still forecasted to hit record levels in 2013
Fertilizer will continue to strengthen over the next several months
10.
11. 11
Mine construction and preparation have been completed and is
operational
Ore extraction has started with ~225,000 tonnes stockpiled
(average grade of 8% P2O5)
Beneficiation plant has been commissioned and operations have
commenced
Operating licenses for the mine, water dam, tailings dam, pipelines
and beneficiation plant received
Powerline has been completed and is operational
Water dam has reached the water level necessary for water supply
to the plants
Water/tailings dams have been completed and are operational
All major equipment has been delivered to site
All key personnel needed to operate plants are in place
Physical progress of the construction to date is approximately 94% completed
Work Completed
To Date
12. 12
Updated technical report dated March 27, 2013
47% increase in proven and probable reserves
Proven and probable reserves of 64.8 million tonnes
Average reserve grade of 5.1% P2O5
Revised project economics
Annual production of over 500,000 tonnes per year of SSP
19 year mine life
Capex cost of $323 million
After-tax NPV10% of $254.2 million
− Based on an SSP price of US$280/tonne in 2013, US$325/tonne in
2014 and adjusted for 2% inflation thereafter
After-tax IRR of 21%
After-tax Payback period of 4.5 years
After-Tax NPV10% of
$254 million
64.8 million
tonnes of reserves at
5.1% P2O5
Over 500,000
tonnes of SSP annually
19 years life
13. 13
Current capital cost estimate is $323.1 million (25% increase from September 2012 estimate)
Renegotiation with the primary electro-mechanical erection contractor
Poor engineering work and planning deficiencies
Unexpected transportation costs
Replacement of civil works contractor
Brazil is a developing country and faces significant cost pressures and skill shortages
Project
Capex
Escalation
(%)
Delay
(months)
Serra Sul (Vale, Iron ore) 72 54
Onça Puma (Vale, Nickel) 158 27
Salobo (Vale, Copper) 179 30
Minas Rio (Anglo, Iron Ore) 52 12+
Source: Company information, Anglo American, Broker notes
Cost for civil works, labor, and availability of
labor has led to capex escalation
Most projects have been plagued by severe
delays to cope with the strains of the
Brazilian economy
Itafós Project is toward the lower end of the
increases experienced in Brazil
• Cost overrun ~ 50%
• Delay ~ 10 months
14. 14
Project Risk Mitigation
A number of important measures have been taken to de-risk the project
All detailed engineering including scope
changes has now been completed
All equipment has been delivered to site
Since the renegotiation significant improvements
in the pace of the electro-mechanical erection
works
Firm quotes and delivery dates in place for the
parts and supplies required for completion of
construction (such as pipes, cables, hoists and
steel platforms)
Corporate Risk Mitigation
Executive Committee of Independent Directors
has been formed and will have direct oversight
on all aspects of the Project
Antenor Silva will dedicate all his time and
efforts to the completion of the Itafós Project
and ramp-up
Two new Directors have been added to the
board who add a depth of experience in project
development, strategic oversight and the
Brazilian fertilizer markets
Risk is also mitigated given the project is 94% complete
15. $10 million - sale of interest in non-core exploration ground
in Para state
Asset Sale
$52 million bought deal financing
Board, management and founders committed $10 million
Private Placement
$10 million - working capital loan received from Banco Itaú
BBA
Bank Loan
15
Reviewing “non-dilutive” alternatives to provide additional cash cushion:
MBAC is actively pursuing additional debt financing alternatives
MBAC is looking for sale of non-core assets
16. 16
Roberto Busato Belger will dedicate 100% of his time to work with the sales team
MBAC is focused on “industrial sales” (traders, blenders, distributors, large farm co-ops)
Source: ANDA; MBAC team analysis
Note: (1) States of PA, MA, PI, BA, TO, MT and GO
(2) Western BA; Northern GO; Southern PI and MA; and TO State
Industrial Sales Philosophy - Advantages
Upstream Sales Strategy
Mid-to-long term contracts will guarantee
maximization of production capacity and
minimization of “seasonality“ impact
Low Risk of Credit
Focus on few large customers, providing easier
access and ability to pay cash for products
Lean Sales Team Required
Negotiation will be held by top managers and
will be conducted on specific dates during the
year, increasing product margins
17. 17
Negotiations with large potential customers are well advanced.
The Company has received commitments for 35,000 tonnes of SSP for July/Aug delivery from
two buyers (both include option to increase)
• Received payment for 15,000 tonnes
The Company has received non-binding LOI’s for up to 200,000 tonnes
Overview of Customers
• Significant Potential Customers
Yara, Bunge, Heringer (2nd largest blender in
Brazil) and Fertilizantes Tocantins (largest blender
in TO State)
• Customer Locations
In negotiation with potential customers who have
their blending plants and/or their warehouses
located close to the Itafós site ( )
18. 18
Completion of electro mechanical erection
Ramp up mineral processing plant (processing/beneficiating ore)
Obtain final operating licenses for chemical plants
Commissioning of chemical plants
Start of operations
Focus on operations management with an objective of efficient use of working capital
Focus on sales – specifically 2014
22. 22
Santana contains one of the highest grade phosphate resources in Brazil
Flexibility to produce higher value-added products (TSP, MAP and DCP)
Project target area is one of the largest agricultural
markets in the country
Mato Grosso state is the largest fertilizer
consumer in Brazil
The municipality of São Felix do Xingu (PA)
has the largest number of cattle in Brazil
Prefeasibility Study completed in June 2012:
Reserves: 44.9 Mt (12.1% P2O5)
Production: 500,000 t SSP
Capex $393 million
NPV: $407 million
IRR: 22%
Project Location
PA
MA
MT
TO
GO
Brasilia
23. 23
Completion of Definitive Feasibility Study in mid-2013
Executive Committee will carry out a detailed review of the project
Will undertake detailed engineering prior to giving its formal approval of the project
• Reduce scope changes
• Provide greater certainty on capex
• Better evaluate funding options
Board will provide construction decision after detailed review
Discussions with lenders and financial institutions for project financing will be finalized
24. 24
CBMM
MINE
Araxá Project
VALE
Mine
Araxá,
MG
Project Location
REE Deposit
Itafos
Santana
A high grade REE/Niobium/Phosphate project
M&I of 6.3 Mt @ 5.0% TREO and 1.02%
Nb2O5
One of the highest grade REO deposits in the
world
Advantaged location
Area is surrounded by two large operations:
• Vale fertilizer mine/plant
• CBMM Niobium mine/plant
Developed infrastructure
PEA completed in October, 2012
Production
Phase I 8,500 tonnes per year
Phase II 17,500 tonnes per year
Capex $406 million
NPV $967 million
IRR 30%
25. 25
Phase 2 pilot plant tests for bulk concentrate expected to be completed by mid-2013
Have produced a 98% REO bulk concentrate
Continued discussions with potential off-take partners
Will start Phase 3 pilot plant tests for REO separation H2 2013
DFS is expected to be completed in H1 2014
The asset has been determined to be “non-core”
Company is reviewing options to sell all or part of the asset
29. Mining
3 Mt @
5.4% P2O5
Mill Plant
Sulphuric Acid Plant
Beneficiation
P2O5 Concentrate
330,000 t @ 28% P2O5
P2O5 Recovery: 55-58%
Sulphur
74,400 t
P2O5 Reactive Phosphate
94 kt @ 15% P2O5
P2O5 Recovery: 8.4%
Sulphuric Acid
170,000 t
Sulphuric Acid Surplus
50,000 t
Electricity
6 MW
SSP Powder
500,000 t
Market
To be used in the process
+ Water
Tailing
Ore
Waste
Imported
Ammonia
6 kt
5% of
Revenues
92% of
Revenues
Market
3% of
Revenues
Granulated SSP
500,000 t
DCDA(1)
Note: (1) Conventional contact process
29
30. 30Note: (1) Neutral Ammonium Citrate
Al3+ Aluminum Toxicity
Source: (*) Sinprifert/ANDA
SSP is the most applied fertilizer for the Brazilian soil, especially in the Cerrado
region, MBAC’s target area:
IMPROVED ROOT DEPTH
Because of the lack of Ca and the presence of Al3+ in Brazilian soils, the development of roots is
compromised, affecting crops productivity, especially, in a dry season (common in the Cerrado).
The Calcium Sulphate in the SSP solves these soil concerns, improving root depth
REDUCES COSTS
Calcium Sulphate is the component required for the supplement of S deficiency in the soil and it is
presented in the gypsum and SSP formulas (1 tonne of SSP = 500 kg of Calcium Sulphate)
Using a other sources of P, farmers will incur in extra costs due to the purchase and
application of gypsum
$$$
FORMULA COMPOSITION
Most of Brazilian soils, especially those located in the Cerrado region, are very poor in P, Ca and S.
SSP formula contains Calcium Sulphate (Ca and S) and P
Ca(H2PO4)2.H2O
+ S
PHOSPHATE SOLUBILITY
The agronomic efficiency of phosphate products is associated with the solubility of P in NAC(1) + H2O
From the total P contained in SSP formula, approximately, 90% is soluble making it very
efficient
NAC+H2O
P
PP
P
P
P
31. 31
Source: UN Population Division http://esa.un.org/unpp/index.aspl
Source: Looking ahead in world food and agriculture perspective to 2050
Population Expansion: History And Projection
Source: UN Population Division http://esa.un.org/unpp/index.aspl
Source: FAO- Looking ahead in world food and agriculture perspective to 2050
GDP Growth Scenario
0 1,000 2,000 3,000 4,000
2003-2005
2015
2030
2050
Kcal/person/day
Per Capita Food Consumption
Industrial countries Developing countries World
Source: FAO- Looking ahead in world food and agriculture perspective to 2050Source: FAO, OECD
World Cereal Consumption And Future Projection
33. 33
Arable Land Per Capita
Source: FAOSTAT
Developing Countries With The Highest Land Balance
Source: FAO- Looking ahead in world food and agriculture perspective to 2050
Developing Countries Using More Than 10 Million Ha. Of Arable Land
Source: FAO- Looking ahead in world food and agriculture perspective to 2050
Accounts for 75% of all arable land in developing countries
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
BillionCu.M/Yr
Top 10 Countries With Renewable Water Resources
Source: FAOSTAT
34. 0 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000
USA
Netherlands
Germany
Brazil
France
Belgium
China
Italy
Spain
Canada
US$ Millions
Export Value (2010)
Brazil is a leading producer of agricultural commodities:
coffee (#1), oranges (#1), sugarcane (#1), beef (#2) and
soya (#2)
Agribusiness is a significant part (~25%) of the Brazilian economy
0%
5%
10%
15%
20%
25%
30%
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
MillionsR$
Agribusiness % of GDP
Agribusiness GDP Brazil %
Source: CEPEA
34
Source: FAOSTAT
Brazil Agribusiness is the Fourth Largest in the World
Source: FAOSTAT
Brazil’s is a leading exporter of agriculture goods and commodities
0 100,000 200,000 300,000 400,000 500,000 600,000
China
USA
India
Brazil
Japan
Nigeria
Turkey
France
Russia
Indonesia
US$ Millions
Gross Production Value (2011)
35. 0
1,000
2,000
3,000
4,000
5,000
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Nutirentsin000Tonnes(P2O5)
Historic Brazil Phosphate Data
Production Imports Consumption
35
Source: ANDA, IFA
Source: ANDA
0%
50%
100%
150%
200%
250%
300%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Historic Global vs Brazil Phosphate Consumption
Global BrazilSource: ANDA, IFA
15,000,000
17,000,000
19,000,000
21,000,000
23,000,000
25,000,000
27,000,000
29,000,000
31,000,000
2001 2003 2005 2007 2009 2011
Tonnes
Fertilizer Consumption in Brazil
Fertilizer Consumption
Source: ANDA
Currently imports 70% of its NPK fertilizers, Phosphate> 50%
0%
20%
40%
60%
80%
100%
120%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Phosphate Fertilizer Imports
Production % Imports %
36. 36
Current capital cost estimate is $323.1 million (25% increase from June 2012 estimate)
Renegotiation with the primary electro-mechanical erection contractor
Poor engineering work and planning deficiencies
Unexpected transportation costs
Replacement of civil works contractor
$225
$258 $276
$323
$33 $3 $5
$10 $4 $8
$15
$20
CAPEX
(Feb-2011)
Construction
Labour/
Inflation
CAPEX
(June-2012)
Owner Cost Pre-operating
Cost
Erection
Labour
CAPEX
(Jan-2013)
Logistics of
moving
Equipment to
site
Termination of
Civil Contract
Renegotiation
with Erection
Contractor
Additional
Parts and
Supplies
CAPEX
(Apr-2013)
Itafós Arraias SSP Project CAPEX Escalation
