2. DISCLAIMER
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.
4. 4
MAIN FIGURES
2013 YxY
Production 5.9 million tons -20%
Sales 6.6 million tons -4%
Net Revenues R$ 1,041.2 million 29%
Net Loss R$ -2,057 million 160%
Adjusted Ebitda R$ -156.6 million -131%
5. 5
2013 HIGHLIGHTS AND
SUBSEQUENT EVENTS
Conclusion of investment operation by Trafigura and Mubadala in Porto Sudeste do Brasil S.A. (formerly
MMX Porto Sudeste Ltda.);
Approval by the Board of Directors of the revised business plan;
Financial advisors engaged to evaluate business opportunities;
Review of figures and strategy for the Corumbá unit culminating in recognition of losses relating to
realization of assets at this Unit, in the amount of R$153.8 million;
Agreement signed to sell totality of shares of Chile Unit to Inversiones Cooper Mining S.A;
Renewal of mining rights leasing agreements with Companhia de Mineração da Serra da Farofa ("CEFAR"),
extending validity terms from 2021 to 2034;
New certification of mineral resources amounting to 3.6 billion tons considering Serra Azul Unit and the Pau
de Vinho and Bom Sucesso Mines;
Conclusion of the capital increase process at MMX in the amount of R$1.4 billion, by way of private
subscription of new ordinary shares;
Arrival of two ship loaders at Superporto Sudeste, manufactured in China.
9. 9
Porto Sudeste
do Brasil
MMX Corumbá
Mineração
MMX Sudeste
100%
65%
94,52%
CONTROLLING
SHAREHOLDER
59,3%
WISCO
10,5%
SK
NETWORKS
8,8%
OUTROS
21,4%
Serra
Azul
Bom
Sucesso
35%
18. Resources II – PDE CUT 10 (Friable + Compact)
SERRA AZUL – Current Operation
18
19. Resources II – PDE Grota das Cobras (Friable + Compact)
Fe SiO2 Al2O3 P Mn PPC
55,53 12,90 3,15 0,09 0,03 3,60
SERRA AZUL – Current Operation
19
20. Resources III – Dry Tailing Feed Plant IR - IPÊ
SERRA AZUL – Current Operation
20
21. Proposal of leasing this plant and the current own
team for:
Upgrade and operational improvements;
Operation and Maintenance;
Excavation, loading, transportation and
feeding plant;
Providing Tab Mag High Intensity.
Proposal for the expansion of this plant:
Feeding with fine tailings of Mineral cava;
Having an independent new line with new sep.
Mag;
Reach a production capacity of 1Mtpa
concentrate;
In plants will be contemplated installing
filtering and dewatering to stack almost 100%
of the products and recover process water.
SERRA AZUL – Current Operation
Resources III – Dry Tailing Feed Plant IR - IPÊ
21
22. ACHIEVED
7 Mtpy of current operation;
1 bn tonnes of certified reserves by SRK (10% friable @ 54% Fe and 90% compact @ 36%
Fe);
Installation License (LI) granted for beneficiation plant, pipeline, railway terminal, power
system, Paraopeba river pipeline, waste disposal areas, accesses and infrastructure;
Public Utility Decree (DUP) and Mining Easement granted;
Mine to port logistics guaranteed;
~ US$ 700 M of equity already injected. ~ US$ 260 M in mine equipment committed for
future expansion;
100% of required land already purchased;
Earthmoving and partial civil works already concluded;
Contract signed with MPX for energy supply;
SERRA AZUL - Expansion
22
23. TO BE
ACHIEVED
Installation License (LI) for pit expansion, waste dump, tailings dam and
tailings pipeline;
Conclusion of civil works;
Assembling of beneficiation plant, pipeline, new railway terminal;
Expansion of existing pit;
Conclusion of water intake / transmission line systems;
Operation License;
Remaining CAPEX estimated in US$1,4 Bn;
SERRA AZUL - Expansion
23
24. Primary Crusher
Pump House,
Sump and
Thickeners
Piles
Beneficiation
Grinding
Substation
Restaurant
Administrative
Buildings
Construction
Site and Warehouse
SERRA AZUL – Advanced Earthwork
24
25. SUDESTE PORT
Porto Sudeste - Itaguaí
35% partnership with Trafigura and Mubadala, with significant
operational track record and extensive financial capacity;
Long term contract with MMX Sudeste for port handling services
of 7 Mtpy with na expandable option to increase to 13 Mtpy until
2015;
In case of Port expansion to up to 100 Mtpy, MMX’s shipping right
can also be increased by 13% of extended Port capacity;
The whole internal trading of iron ore will be made through the
Porto Sudeste.
27. 27
Adapting the organizational structure to the new size of the Company
INTERNAL RESTRUCTURING
CARLOS
GONZALEZ
CEO
RICARDO
ASSEF
CFO
RICARDO
WERNECK
COO / CSO
