CAP S.A.

Overview Key strengths Key risks Well-positioned in the high-grade iron ore pellet market High exposure to commodity prices adding volatility to credit metrics Low leverage and adequate liquidity Limited product and asset diversification, as well as sales concentration to China Long life of reserves (about 50 years) Smaller scale of operations than those of global peers Favorable iron ore prices Underperformance of the steel business unit In 2022, working capital needs increased to around $200 million due to overstocking and the price of iron ore falling to $122 per ton from $157 per ton in 2021. At the same time, outstanding results in 2021 generated high tax payments of around $475 million and CAP distributed around $600 million in dividends.

...CAP's leverage increased given weaker prices and high working capital, taxes, and dividends. In 2022, working capital needs increased to around $200 million due to overstocking and the price of iron ore falling to $122 per ton from $157 per ton in 2021. At the same time, outstanding results in 2021 generated high tax payments of around $475 million and CAP distributed around...

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