PROSPECTO DEFINITIVO DE DISTRIBUIÇÃO ... - BTG Pactual

MMX – Brazilian ProjectsAmapa – July 06,2006The conversion cost of the billet caster includes yieldlosses (at about a 97% yield), refractories for the tundish,molds, cooling water, labor, maintenance materials,natural gas for torch cutting, and other costs.Average conversion costs for a continuous billet castersuch as required for the production of rebar and wire rodcan average $US 12 /tonne billet (R$ 28/tonne billet),including a nominal yield loss of approximately 3% ofsteel cast and is shown in the following table. Costsexclude depreciation, amortization and any potentialinterest costs.O custo de conversão do lingotamento contínuo detarugos inclui perdas de rendimento (cerca de 97% derendimento), refratários para distribuidor, moldes, águade resfriamento, mão-de-obra, materiais de manutenção,gás natural para corte a maçarico e outros custos.O custo médio de conversão para lingotamentocontínuos de tarugos considerando a produção devergalhão para construção e fio-máquina é em média deUS$12/tonelada de tarugo (R$28/tonelada de tarugo),incluindo perda nominal de rendimento deaproximadamente 3% de aço e é mostrado na tabelaseguinte. Os custos excluem depreciação, amortização equaisquer despesas potenciais com juros.Table 2-10: Billet Caster Production Cost Estimate (see note 1)Production Units yield Amounttonnes billet per year 0.97 489,850Operating cost estimate Units Unit cost Consumption Cost Cost($US /unit) (units/t billet ($US /t billet) (R$ /t billet)raw materialsliquid steel from ladle furnact liq steel 244.8 1.03 252 593scrap credit t liq steel (175.0) 0.02 (3) (6)other t - - -sub total materials 250 587conversion costslabor 4 9refractories 4 9molds 1 2water, compressed air 1 2maintenance 1 2other costs 1 2subtotal conversion 12 28total caster cost in Corumba 261.8 615transportationMBF Plant Brazil to Port 3 3stockpile and load Panamax ship 5 5Total Pig Iron Transportation Estimate Costs from MBF Brazil 8 8total billet cost FOB MMX Port 269.8 623.1Source : Hatch estimates and analysisNote 1: MMX’s estimated market costs for iron ore are used in the sinter plant operating costs, considering supply bylocal mining companies including Sólida Mineração S.A., Mineração Eldorado S.A., and MMX’s subsidiary operating inAmapá. Iron ore prices provided by MMX quoted before May 15, 2006, price increase.Potential for variation in the total estimated caster operating cost: There is limited potential for the cost of operation of acaster to vary beyond the estimated average. Poor operations and quality could increase costs for yield losses andrefractory repairs.408