Mmx março - en - vfinal nova


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Mmx março - en - vfinal nova

  1. 1. MMX MINERAÇÃO Creating choices in seaborne iron ore supply March | 2014
  2. 2. DISCLAIMER This presentation relating to MMX Mineração e Metálicos S.A. (“MMX”) includes “forward-looking statements”, as that term is defined in the Private Securities Litigation Reform Act of 1995, in Section 27A of the Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All statements other than statements of historical facts are statements that could be deemed forward-looking statements and are often characterized by the use of words such as “projects”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, “may”, “will”, or “intends”, or by discussions or comments about our objectives, strategy, plans or intentions and results of operations. Forward-looking statements include projections regarding our operating capacity, operating expenditures, capital expenditures and start-up dates. By their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities, both general and specific. The risk exists that these statements may not be fulfilled or, even if they are fulfilled, the results or developments described in such statements may not be indicative of results or developments in future periods. We caution participants of this presentation not to place undue reliance on these forward-looking statements as a number of factors could cause future results to differ materially from these statements. Forward-looking statements may be influenced in particular by factors such as the ability to obtain all required regulatory approvals on a timely basis or at all, exploration for mineral resources and reserves, difficulty in converting geological resources into mineral reserves, and changes in economic, political and regulatory conditions. We caution that the foregoing list is not exhaustive. When relying on forward-looking statements to make decisions, investors should carefully consider these factors as well as other uncertainties and events. MMX does not undertake to update our forward-looking statements unless required by law. This presentation is neither an offer to sell (which can only be made pursuant to definitive offering documents) nor a solicitation of an offer to buy any securities in the United States, or any other jurisdiction. The securities referred to herein have not been registered in any jurisdiction, and in particular, will not be registered under the U.S. Securities Act of 1933, as amended, or any applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without MMX’s prior written consent. 2
  4. 4. UMA HISTÓRIA ÚNICA MMXM3 WISCO 10,5% CONTROLLING SHAREHOLDERS SK NETWORKS 8,8% 59,3% OTHERS 21,4% 5,48% EBX 94,52% MMX Corumbá Mineração 100% 35% MMX Sudeste Porto Sudeste do Brasil 65% Serra Azul Bom Sucesso 4
  5. 5. MMX INTRODUCTION High quality mining assets in traditional mining districts Two operating systems: Serra Azul and Corumbá; Current Capacity: approximately 7 Mtpy; Mining rights in traditional iron ore districts: Brazil (Minas Gerais and Mato Grosso do Sul); Sudeste System | MG Serra Azul Unit Bom Sucesso Unit Production committed with strategic consumers – China and South Korea – through long-term contracts; Brownfield start up in Brazil; Porto Sudeste| RJ Strategic port location. Corumbá System | MS Sistema Sudeste 5
  6. 6. MMX INTRODUCTION Ingredients for a successful iron ore business RESOURCE BASE SRK and Coffey Mining certifications (Serra Azul, Pau de Vinho e Bom Sucesso): 3,6 billion tons of mineral resources. Reserves of 1 billion tons in Serra Azul. COMPETITIVE PRODUCTION COST STRUCTURE Low stripping ratio; Competitive scale – New beneficiation plant; Energy supply contract with MPX; Infrastructure with integrated logistics. GUARANTEED LOGISTICS Porto Sudeste at 50 Mtpy, expandable to 100 Mtpy, provides gateway to seaborne markets; Long Term Railway Contract with MRS. SECURED OFFTAKE 64% of future production already committed through long-term contracts. OPERATIONAL TRACK RECORD Experience management team with implementation and operational expertise; Current Capacity of 7 Mtpy (Serra Azul and Corumbá sites). 6
  7. 7. MMX INTRODUCTION A lot has been delivered BNDES approves eligibility for a long term financing for Serra Azul; Conclusion of the Arrival of 2 Ship contracting of Loaders in the supplementary long term Sudeste funding for the Sudeste Superport ; Superport with BNDES, in the sum of R$ 935 million; Sale of all shares in Minera MMX de Chile S.A. to Inversiones Cooper Mining S.A. The merger of MMX Porto Sudeste S.A. by MMX Conclusion of the investment Approval of operations of the business plan’s revision Trafigura and Mubadala in of the Porto Sudeste do Company; Brasil SA.; MARCH 2014 2012 Conclusion of the offshore civil works at the Sudeste Superport; Conclusion of the capital increase in the amount of R$ 1.4 billion; Renewal of the lease contracts for mineral rights with the CEFAR, extending the terms of validity from 2021 to 2034; New certification of mineral resources (SRK and Coffey Mining) totaling 3.6 billion tons considering Serra Azul Unit, Mina Pau de Vinho and Bom Sucesso; Hiring of financial advisors to evaluate business opportunities; Definitive agreements executed by the Company with Trafigura and Mubadala; Reverse stock split of shares of the Company, at a ratio of 6 shares for 1 share. 7
  8. 8. MMX INTRODUCTION Financial highlights Net Revenue (R$ million) 400 350 300 250 200 150 100 50 0 Gross Profit (R$ million) 250 200 150 339 284 245 100 148 50 186 231 0 3Q12 2Q13 3Q12 3Q13 2Q13 3Q13 Adjusted EBITDA (R$ million) 100 50 0 19,2% 14,6% 47 41 32% 16% -70 -50 -20,6% -100 3Q12 2Q13 0% -16% -32% 3Q13 8 Adjusted EBITDA EBITDA Margin
  10. 10. 2.1 SERRA AZUL UNIT
  11. 11. UNIQUE INTEGRATED LOGISTICS Since Iron ore is a bulk OFFTAKERS (SHAREHOLDERS) commodity, an integrated WISCO logistic (mine > railway > Long-Term contract (20 years). Wisco will off-take at least 50% of MMX Sudeste production. port) is the key factor for a successful operation. SK NETWORKS Contract with MRS until 2026 Mine Railway Porto Sudeste Long-Term contract (20 years) to trade iron ore. SK will take-off part of the Sudeste System yearly production equivalent to its participation in MMX Capital (14%). SK and Wisco will together offtake 64% of total production Serra Azul unit is near to the MRS railway - 7 km from the mine, a distance currently traversed by trucks. MMX has a long term contract with MRS railway, which connects the mine with the CSN’s port and the Porto Sudeste, both located in Itaguaí. Porto Sudeste will have 50Mtpy iron ore shipping capacity. The Superport will have a depth of 20 meters, enough to handle Capesize vessels. 11
  12. 12. QUADRILÁTERO FERRÍFERO Iron ore Quadrangle Minas Gerais
  13. 13. RAILWAY Railway access connecting MRS to the Porto Sudeste
  14. 14. SERRA AZUL Expansion project with integrated logistic and pellet feed iron ore Highlights Production target: 15 Mtpy waiting of new partner; 64% of production already committed through long-term contracts; 997.4 million tons of reserves already secured by SRK. Execution Update Beginning of construction of Serra Azul Unit expansion; Construction license issued in April, 2012; Expected Quality – Ouro Preto pilot plant test work Fe: 66,65% P: 0,025% AL2O3: 0,54% SiO2: 3,23% Mn: 0,018% LOI: 0,75% 14
  15. 15. SERRA AZUL Growth through consolidation while leveraging existing infrastructure N Igarapé 3 13 8 5 3 1 7 6 4 2 9 10 14 14 11 12 Brumadinho Arcelor Mittal Minerita 6 15 USIMINAS Central 4 Mario Campos MRI 5 São Joaquim de Bicas USIMINAS Western 2 Sarzedo 1 Ferrous-Santanense 7 USIMINAS Eastern 8 Comisa 9 Emicon 10 MMX 11 USIMINAS Pau de Vinho Itatiaiuçu BR 38 1 12 Ferrous – Esperança 13 Minera do Brasil 14 Vale 15 Itaminas 15
  16. 16. UNIDADE SERRA AZUL Serra azul unit expansion project 1 2 6 Igarapé Itatiaiuçu 5 1 8 3 4 Mario Campos 7 9 9 4 Rail terminal connected to the MRS rail network Arch extensions 6 9 Pipeline with approximately 7km extension 5 São Joaquim de Bicas Tailings dam, about 40km away from the mine, associated with a tailings pipeline 3 2 Beneficiation Plant Waste deposit 7 Water supply 8 High voltage power station 9 Access 16
  17. 17. Serra Azul Expansion Beneficiation Plant
  18. 18. SERRA AZUL Earthwork 1 Pump House, Sump and Thickeners 5 Substation 2 Construction Site 6 Grinding 10 Tank 3 Beneficiation 7 Piles 11 and Warehouse 4 Grinding 8 Primary Crusher 12 Tank Inc. 9 1 3 2 13 Main Access Water Storage 14 Administrative Buildings Construction Site 5 1 Primary Crusher 15 Maintenance Workshop Water Storage 6 11 4 7 9 8 10 13 14 12 15
  20. 20. PORTO SUDESTE Overview Private port terminal designed exclusively to export iron ore; Licensed to 50 Mtpy, expandable to 100 Mtpy; Navy Approval to 100 Mtpy; Construction works for the tunnel and offshore infrastructure completed; Porto Sudeste | Ilha da Madeira, Itaguaí (RJ) 20
  21. 21. PORTO SUDESTE MRS Railway Connection Macro Region
  22. 22. BR-101 - Highway MRS - Railway Road Acess & Railway Acess Tunnel Pier PORTO SUDESTE Micro region
  23. 23. Viaduct over Rail access and Cação river Rail access PORTO SUDESTE Rail and Road Access
  24. 24. Viaduct over Rail loop Rail access PORTO SUDESTE Rail and Road Access
  25. 25. Control Room of Car Dumpers CHARACTERISTICS: Depth: 21 m Width: 12 m Length: 30m Car Dumper 2 Train Positioners PORTO SUDESTE Car Dumpers at Stockyard Elevation 6m Car Dumper 1
  26. 26. Stockyard 32 Mariquita’s Hill Stacker Reclaimer Tracks Car Dumpers PORTO SUDESTE Stockyard 6m Transfer House
  27. 27. Tunnel Entrance Stockyard 6 Transfer House Stacker Reclaimer Tracks Electric Substation & Control Center PORTO SUDESTE Stockyard 32m
  28. 28. SECTION FOR 100 MTPY Cross Area: 198 m² Height: 11 m Width: 20.5 m Length: 1.8 km 1st Phase 2nd Phase Conveyor Belt PORTO SUDESTE Tunnel
  29. 29. Tunnel Exit Bridge 430m long Electric Substation Transfer House Connecting Plataform PORTO SUDESTE Bridges and Plataform
  30. 30. Shiploaders Pier 766m long Transfer House Bridge 270m long PORTO SUDESTE Bridges, Plataform and Pier PORTO SUDESTE Bridge 430m long Bridges, Platform and Pier 30
  31. 31. PIER Highlights Berth draft: 20 m – Able to load 80,000 to 260,000 ton vessels; Potential expansion to 100 Mtpy. 50 Mtpy 100 Mtpy | Future Expansion Pier length: 766 meters Pier length: 766 meters Number of berths: 2 Number of berths: 4 31
  32. 32. PORTO SUDESTE Shiploaders at Pier
  33. 33. 3. CORUMBÁ
  34. 34. CORUMBÁ Highlights Current Capacity: 2.1 Mtpy; Long-term contracts signed with local and international barge operators; SRK audit resources report: 192 million tons plus a potential of an additional 123 million tons; Sale of assets in progress. 34
  35. 35. INVESTOR RELATIONS MMX Carlos Gonzalez Adriana Marques Phone CEO and IRO Manager + 55 21 2163-6197 + 55 21 2163-6338 E-mail 35
  36. 36.