CAP's modest scale compared with global iron producers and its cash generation's dependence on mining activities results in a high correlation between its results and movements in iron ore prices and premiums. Recent supply constraints have strengthened iron ore prices. CAP should benefit from the lower global supply of pellets, combined with increasing demand for high quality iron ore from China, which should support continued high pellet premiums. After low capital expenditures (capex) levels due to unfavorable market conditions, we expect CAP to focus its investments on both a permanent fix of the ship loader at Port Guacolda 2 as well as on asset efficiencies, which should increase the company's iron ore output after this year. The stable outlook reflects
