CAP S.A.

Overview Key strengths Key risks Well positioned in the high-grade iron ore pellet market. High exposure to commodity prices, generating volatility in credit metrics. Strong balance sheet with negative net financial debt and 76% of maturities in the long term. Limited product and asset diversification, as well as sales concentration to China. Long life of reserves (about 50 years). A smaller scale of operations than those of global peers. Very favorable prices. Risk of policy changes in Chile and uncertainty over the new royalty payment scheme. Global iron ore prices have reached record-high levels during 2021 and remain high during 2022, boosting CAP S.A.?s profitability and EBITDA. High prices and the production normalization more than compensate for inflationary pressures across

...Soaring metal prices and record-high EBITDA in 2021. Global iron ore prices have reached record-high levels during 2021 and remain high during 2022, boosting CAP S.A.'s profitability and EBITDA. High prices and the production normalization more than compensate for inflationary pressures across the supply chain (logistic bottlenecks and weather issues). Although the company is exposed to the volatility of its commodity-based business, which we factor into our financial risk assessment through its capacity to maintain...

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