Mmx setembro 2013 - ingles - vfinal

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Mmx setembro 2013 - ingles - vfinal

  1. 1. MMX: CREATING CHOICES IN SEABORNE IRON ORE SUPPLY Rio de Janeiro | September 2013
  2. 2. 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. DISCLAIMER
  3. 3. MMX INTRODUCTION 1
  4. 4. MMXM3: SOLID CONTROLLING SHAREHOLDERS Superporto Sudeste MMX Corumbá Mineração MMX Sudeste 100% 100%94,52% 5,48% EBX 4 Controlling Shareholders 59,3% Wisco 10,5% SK Networks 8,8% Outros 21,4% Serra Azul Bom Sucesso
  5. 5. HIGH QUALITY MINING ASSETS IN TRADITIONAL MINING DISTRICTS 5 Sudeste System Serra Azul Unit Bom Sucesso Unit Corumbá System Sudeste Superport Two operating systems: Serra Azul and Corumbá; Current Capacity: approximately 8 Mtpy; Mining rights in traditional iron ore districts: Brazil (Minas Gerais and Mato Grosso do Sul); Production committed with strategic consumers – China and South Korea – through long-term contracts; Brownfield start up in Brazil; Expanding up to around 40 Mtpy in Brazil, through fully integrated systems: Private port; Strategic port location.
  6. 6. INGREDIENTS FOR A SUCCESSFUL IRON ORE BUSINESS 6 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 Sudeste Superport at 50 Mtpy, expandable to 100 Mtpy, provides gateway to seaborne markets Long Term Railway Contract with MRS Secured Off- take 64% of future production already committed through long-term contracts Operational Track Record Experience management team with implementation and operational expertise Current Capacity of 8 Mtpy (Serra Azul and Corumbá sites)
  7. 7. Sale of all shares in Minera MMX de Chile S.A. to Inversiones Cooper Mining S.A. Hiring of financial advisors to evaluate business opportunities; 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; Conclusion of the contracting of supplementary long term funding for the Sudeste Superport with BNDES, in the sum of R$ 935 million; Renewal of the lease contracts for mineral rights with the CEFAR, extending the terms of validity from 2021 to 2034; Arrival of 2 Ship Loaders in the Sudeste Superport ; Conclusion of the capital increase in the amount of R$ 1.4 billion; BNDES approves eligibility for a long term financing for Serra Azul; Conclusion of the offshore civil works at the Sudeste Superport; Issuance of debentures at the amount of R$ 600 million; Public hearings in Itaguaí and Mangaratiba for the expansion of the Sudeste Superport to 100 Mtpy; Beginning of construction of the Serra Azul Unit expansion; September 2013 January 2012 A LOT HAS BEEN DELIVERED 7
  8. 8. FINANCIAL HIGHLIGHTS 8 204 237 284 0 50 100 150 200 250 300 2Q12 1Q13 2Q13 Net Revenue (R$ million) 113 140 186 0 50 100 150 200 2Q12 1Q13 2Q13 Gross Profit (R$ million) 7 3 413.6% 1.3% 14.6% 0% 4% 8% 12% 16% 0 10 20 30 40 50 2Q12 1Q13 2Q13 Adjusted EBITDA (R$ million) Adjusted EBITDA EBITDA Margin
  9. 9. SUDESTE SYSTEM 2
  10. 10. SERRA AZUL UNIT 2.1
  11. 11. UNIQUE INTEGRATED LOGISTICS Since Iron ore is a bulk commodity, an integrated logistic (mine  railway  port) is the key factor for a successful operation Mine SuperportRailway Serra Azul unit is near to the MRS railway - 10 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 Sudeste Superport, both located in Itaguaí. Sudeste Superport will have 50Mtpy iron ore shipping capacity. The Superport will have a depth of 20 meters, enough to handle Capesize vessels. Offtakers (Shareholders) 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%). Long-Term contract (20 years). Wisco will off-take at least 50% of MMX Sudeste production. SK and Wisco will together offtake 64% of total production 11
  12. 12. QUADRILÁTERO FERRÍFEROIron ore Quadrangle
  13. 13. RAILWAY Railway access connecting MRS to the Sudeste Superport 13
  14. 14. Contract signed on December 28th 2011; Long term contract through 2026; Provides for a volume of up to 36 million tons of iron ore per year. MRS CONTRACT MMX signed a long term contract for railway services 14
  15. 15. SERRA AZUL Expansion project with integrated logistic and pellet feed iron ore Highlights Production target: 29 Mtpy; 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; Acquisition of stirrers, thickeners, gyratory crushers, ball mills, SAG mills and vertical mills for the new beneficiation plant; Contract with CNEC WorleyParsons; Contract with MPX to supply power for 15 years at a base-price of R$125/MWh. 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% 15
  16. 16. SERRA AZUL Growth through consolidation while leveraging existing infrastructure 16
  17. 17. SERRA AZUL Serra Azul Unit Expansion Project New Beneficiation Plant, transmission line and water pipelines, Stockyard and Loading Terminal Cava 17
  18. 18. Serra Azul Expansion Beneficiation Plant
  19. 19. Earthwork SERRA AZUL 1 Pump House, Sump and Thickeners 2 Construction Site 1 1 3 Beneficiation 2 3 4 Grinding 4 5 Substation 6 Grinding 7 Piles 8 Primary Crusher 5 6 7 8 9 Primary Crusher 10 Water Storage Tank 11 Construction Site and Warehouse 12 Water Storage Tank Inc. 9 10 11 12 13 Main Access 14 Administrative Buildings 15 Maintenance Workshop 13 14 15
  20. 20. SUDESTE SUPERPORT 2.2
  21. 21. Sudeste Superport Location
  22. 22. Nautical Access Offshore Stockyard 32 Stockyard 06 Railway Access Sudeste Superport Artistic View
  23. 23. SUDESTE SUPERPORT Overview Licensed to 50 Mtpy, expandable to 100 Mtpy; Licensing for 100 Mtpy underway, public; Hearing held on May, 2012; Navy Approval to 100 Mtpy; Loading: 2 ship loaders of 25 Mtpy each; Construction works for the tunnel and offshore infrastructure completed; Fully funded (BNDES). Sudeste Superport - Itaguaí 23
  24. 24. USIMINAS AGREEMENT SRK resources audit : 805 million tons; Significant synergies with current mining operations at Serra Azul; 13.5% of production at Pau de Vinho will be delivered to Usiminas; MMX will be responsible for the licensing, CAPEX and operation for 30 years. Volumes: ■ 12 Mpta 80% Take-or-Pay; Usiminas can renew the contract in 2016 for 1 to 5 years. Pau de Vinho Joint Mining Sudeste Superport Handling 24
  25. 25. Sudeste Superport Road&Railway Access Sudeste Superport Road&Railway Access
  26. 26. Sudeste Superport Stockyard Elevation 6 m Road Access Car Dumpers Car Dumpers Control Room Stacker Reclaimer Infrastructure Stockyard 32 Stockyard 6 Stacker Reclaimer Rolling Way
  27. 27. Sudeste Superport Stockyard Elevation 6 m
  28. 28. Sudeste Superport Car Dumpers Train Positioners Control Room of Car Dumpers
  29. 29. Sudeste Superport Car Dumpers
  30. 30. Sudeste Superport Stockyard Elevation 32 m 30 Electric Substation Infrastructure Tunnel Entrance Transfer House Structure
  31. 31. Sudeste Superport Tunnel entrance
  32. 32. 32 Sudeste Superport Tunnel
  33. 33. 3333 Sudeste Superport Offshore Structure
  34. 34. 34 Sudeste Superport Substation Structure Tunnel Exit Bridge 1 (430 m) Electric Substation Building Plataform
  35. 35. Superporto Sudeste Estrutura Offshore Bridge 270 m Bridge 430 m Pier 766 m Sudeste Superport Offshore Structure
  36. 36. 36 Superporto Sudeste Estrutura Offshore 36 Sudeste Superport Ship Loaders
  37. 37. CORUMBÁ 3
  38. 38. 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. 38
  39. 39. Investor Relations | MMX Carlos Gonzalez, CEO and IRO Adriana Marques, Manager Phone: + 55 21 2163-6197 + 55 21 2163-6338 E-mail: ri@mmx.com.br

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