RE:Vale Fertilizantes: Business Overview, October 2015 Excellent presentation by Vale who is a by far the biggest supplier of phosphate fertilizers in Brazil and became an even bigger player in 2010 when they bought out U.S. based agribusiness giant, Bunges, nutrient assets in Brazil. They paid $3.8 billion cash for 2 phosphate mines and 4 phosphate fertilizer plants with total production capacity of 3 million tonnes per year. That would equate to $603 million for the MBAC Itafos plant based on 500,000 tonnes per year capacity. However, perhaps even more interesting is Vales recognition of the northern part of the Cerrado region as the region with the highest growth prospects in the country in the coming years. (see slide 18) Thats exactly where the Itafos plant is and the future Santana plant would be. However, all of Vales phosphate production facilities (and mines) are in the south (also slide 18) and nowhere near this area of greatest future growth. They even suggest an extension of a rail line in the south for several hundred km northward to reach this region (slide 19). Thats the potential they see here but it is doubtful such a railroad would be built sooner than 10 years out. The only way the fertilizer gets there now is the 1000 km trek from the northeast port during which it deteriorates in quality (absorbs moisture and clumps). Further, as the presentation conveys, imports are going to cost you an additional $101 - $121U.S. for seaway, port, and trucking charges (slide 15) but also consider the Brazilian Real has dropped in half in the last few years so you can double that price in Real terms. For this reason, the Vale presentation recognizes the, significant cost advantages to the local fertilizer producer and based on the land availability (slide 13) and Brazils phosphate fertilizer demand CAGR (slide 14) identifies Brazil as the worlds most attractive fertilizer market. Yet MBAC has another advantage over all this location, location, location as they say. They are in the middle of the area of greatest future growth. It is for this reason I believe one of the original bidders will yet come in (after the severance cases settlement) with a complete buyout offer or another hostile bid appear. There is just too much potential here for this to be allowed to go down a road of dilutive disaster with this management. AIMHO. Greg