...First-Quartile Tin Producer: Minsur S.A.'s (Minsur) investment-grade ratings are supported by its position as the world's third-largest tin producer with production of about 26,000 metric tons of refined tin expected in 2015. Minsur's cash cost of production is in the first quartile of the industry as verified by the International Tin Research Institute (ITRI). This low cost of production allows the company to generate positive operating cash flows during periods of low tin prices. Low Net Debt: Minsur has a track record of very low leverage. However, gross leverage increased due to lower tin prices and sales volumes. For the LTM ended Sept. 30, 2015, Minsur's total debt/EBITDA ratio increased to 3.0x while its net debt/EBITDA ratio was neutral when deconsolidating Cementos Melon, an entity in Chile that is ring-fenced from the mining group and accounted for since the first quarter of 2015 under the IFRS equity method. Response to Low Prices: Management implemented an aggressive plan to...
