Mmx abril - en - vfinal nova


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Mmx abril - en - vfinal nova

  1. 1. MMX MINERAÇÃO Creating choices in seaborne iron ore supply April | 2014
  2. 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. 4 MMX Corumbá Mineração MMX Sudeste 100%94,52% 5,48% EBX CONTROLLING SHAREHOLDERS 59,3% WISCO 10,5% SK NETWORKS 8,8% OTHERS 21,4% Serra Azul Bom Sucesso MMXM3 UMA HISTÓRIA ÚNICA 35% Porto Sudeste do Brasil 65%
  5. 5. 5 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); Production committed with strategic consumers – China and South Korea – through long-term contracts; Brownfield start up in Brazil; Strategic port location. Sudeste System | MG Serra Azul Unit Bom Sucesso Unit Corumbá System | MS Porto Sudeste| RJ Sistema Sudeste High quality mining assets in traditional mining districts MMX INTRODUCTION
  6. 6. 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 Porto Sudeste 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 7 Mtpy (Serra Azul and Corumbá sites). Ingredients for a successful iron ore business MMX INTRODUCTION
  7. 7. 7 A lot has been delivered MMX INTRODUCTION 2012 APRIL 2014 Conclusion of the offshore civil works at the Sudeste Superport; BNDES approves eligibility for a long term financing for Serra Azul; Conclusion of the capital increase in the amount of R$ 1.4 billion; Arrival of 2 Ship Loaders in the Sudeste Superport ; Renewal of the lease contracts for mineral rights with the CEFAR, extending the terms of validity from 2021 to 2034; Conclusion of the contracting of supplementary long term funding for the Sudeste Superport with BNDES, in the sum of R$ 935 million; 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; Sale of all shares in Minera MMX de Chile S.A. to Inversiones Cooper Mining S.A. Definitive agreements executed by the Company with Trafigura and Mubadala; The merger of MMX Porto Sudeste S.A. by MMX Approval of the business plan’s revision of the Company; Reverse stock split of shares of the Company, at a ratio of 6 shares for 1 share. Conclusion of the investment operations of Trafigura and Mubadala in Porto Sudeste do Brasil SA.;
  8. 8. 8 1.036 806 1.041 0 300 600 900 1.200 2011 2012 2013 Net Revenue (R$ million) 630 437 654 0 200 400 600 800 2011 2012 2013 Gross Profit (R$ million) 165 49 -157 15,9% 6,0% -15,0% -20% 0% 20% -200 -100 0 100 200 2011 2012 2013 Adjusted EBITDA (R$ million) Adjusted EBITDA EBITDA Margin MMX INTRODUCTION Financial highlights
  10. 10. SERRA AZUL UNIT2.1
  11. 11. 11 Mine Porto SudesteRailway 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. Since Iron ore is a bulk commodity, an integrated logistic (mine > railway > port) is the key factor for a successful operation. Contract with MRS until 2026 WISCO 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. OFFTAKERS (SHAREHOLDERS) SK NETWORKS UNIQUE INTEGRATED LOGISTICS SK and Wisco will together offtake 64% of total production
  12. 12. QUADRILÁTERO FERRÍFERO Iron ore Quadrangle Minas Gerais
  13. 13. RAILWAY Railway access connecting MRS to the Porto Sudeste
  14. 14. Expansion project with integrated logistic and pellet feed iron ore 14 SERRA AZUL 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%
  15. 15. BR 38 1 Itatiaiuçu Igarapé São Joaquim de Bicas Brumadinho Sarzedo Mario Campos N Growth through consolidation while leveraging existing infrastructure SERRA AZUL 1 2 3 4 5 6 7 8 9 10 11 12 13 14 14 15 15 1 USIMINAS Western 2 3 4 5 6 7 8 9 MRI USIMINAS Central Arcelor Mittal Minerita Ferrous-Santanense USIMINAS Eastern Comisa Emicon 10 11 12 MMX USIMINAS Pau de Vinho Ferrous – Esperança 13 Minera do Brasil 14 Vale Itaminas15 15
  16. 16. Serra azul unit expansion project UNIDADE SERRA AZUL 16 1 Beneficiation Plant 2 Tailings dam, about 40km away from the mine, associated with a tailings pipeline 3 Pipeline with approximately 7km extension 4 Rail terminal connected to the MRS rail network 5 Arch extensions 6 Waste deposit 7 Water supply 8 High voltage power station 9 Access 2 6 9 1 5 7 9 9 8 3 4 Itatiaiuçu Igarapé São Joaquim de Bicas Mario Campos
  17. 17. Serra Azul Expansion Beneficiation Plant
  18. 18. 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. Overview 20 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 Porto Sudeste | Ilha da Madeira, Itaguaí (RJ)
  21. 21. PORTO SUDESTE MRS Railway Connection Macro Region
  22. 22. Pier Tunnel Road Acess & Railway Acess BR-101 - Highway MRS - Railway PORTO SUDESTE Micro region
  23. 23. PORTO SUDESTE Rail and Road Access Viaduct over Rail access and Cação river Rail access
  24. 24. Viaduct over Rail loop Rail access PORTO SUDESTE Rail and Road Access
  25. 25. Control Room of Car Dumpers Car Dumper 1 Car Dumper 2 Train Positioners PORTO SUDESTE Car Dumpers at Stockyard Elevation 6m CHARACTERISTICS: Depth: 21 m Width: 12 m Length: 30m
  26. 26. Stacker Reclaimer Tracks Stockyard 32 Mariquita’s Hill Car Dumpers Transfer House PORTO SUDESTE Stockyard 6m
  27. 27. Stacker Reclaimer Tracks Stockyard 6 Transfer House Tunnel Entrance Electric Substation & Control Center PORTO SUDESTE Stockyard 32m
  28. 28. Conveyor Belt 1st Phase 2nd Phase PORTO SUDESTE Tunnel SECTION FOR 100 MTPY Cross Area: 198 m² Height: 11 m Width: 20.5 m Length: 1.8 km
  29. 29. Tunnel Exit Bridge 430m long Electric Substation Connecting Plataform Transfer House PORTO SUDESTE Bridges and Plataform
  30. 30. 30 PORTO SUDESTE Bridges, Plataform and Pier Pier 766m long Bridge 270m long Shiploaders Bridge 430m long Transfer House PORTO SUDESTE Bridges, Platform and Pier
  31. 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 Pier length: 766 meters Number of berths: 2 100 Mtpy | Future Expansion Pier length: 766 meters Number of berths: 4
  32. 32. PORTO SUDESTE Shiploaders at Pier
  33. 33. CORUMBÁ3.
  34. 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.
  35. 35. 35 Carlos Gonzalez CEO and IRO Adriana Marques Manager Phone + 55 21 2163-6197 + 55 21 2163-6338 E-mail MMX INVESTOR RELATIONS
  36. 36.