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Mmx abril 2013 - ingles - vfinal
- 1. MMX: CREATING CHOICESIN SEABORNE IRON ORE SUPPLY Rio de Janeiro | April 2013
- 2. This presentation relatingto 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
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- 4. 59.3% Controlling Shareholders 10.5% Wisco 8.8% SKNetworks 21.4% Others MMX Corumbá Mineração MMX Sudeste Superporto Sudeste Serra Azul Bom Sucesso 100% 100%94.52% 5.48% EBX MMXM3: SOLID CONTROLLING SHAREHOLDERS 4
- 5. HIGH QUALITY MININGASSETS IN TRADITIONAL MINING DISTRICTS Sudeste System Serra Azul Unit Bom Sucesso Unit Corumbá System Sudeste Superport Two operating systems: Serra Azul and Corumbá Current Capacity: 10.8 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 5
- 6. SRK certification: 3,1billion tons of mineral resources, and further mineral potential of up to 1,4 billion tons. Reserves of 1 billion tons in Serra Azul. 64% of future production already committed through long-term contracts Experience management team with implementation and operational expertise Installed Capacity of 10 Mtpy (Serra Azul and Corumbá sites) Sudeste Superport at 50 Mtpy, expandable to 100 Mtpy, provides gateway to seaborne markets Long Term Railway Contract with MRS Low stripping ratio Competitive scale – New beneficiation plant Energy supply contract with MPX Infrastructure with integrated logistics Resource Base Secured Off-take Operational Track Record Guaranteed Logistics Competitive Production Cost Structure INGREDIENTS FOR A SUCCESSFUL IRON ORE BUSINESS 6
- 7. Arrival of 2Ship 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 Approval of the merger of PORTX into MMX 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 Installation License authorizing the Serra Azul Unit expansion MMX signs contract for railway services with MRS through 2026 SRK certified 997,4 million tons of mineral reserves at Serra Azul Unit EPCM contract with CNEC Worley Parsons for Serra Azul expansion Contract with MPX for energy supply for expansion of Serra Azul Financial advisory contract with Itaú BBA and Bradesco Deal with Usiminas April 2013 February 2011 A LOT HAS BEEN DELIVERED 7
- 8. FINANCIAL HIGHLIGHTS 8 725 1,036 806 0 200 400 600 800 1,000 1,200 2010 20112012 Net Revenue (R$ million) 427 630 437 0 100 200 300 400 500 600 700 2010 2011 2012 Gross Profit (R$ million) 134 187 49 18.5% 18.0% 6.0% 0% 5% 10% 15% 20% 0 20 40 60 80 100 120 140 160 180 200 2010 2011 2012 EBITDA (R$ million) EBITDA EBITDA Margin
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- 11. UNIQUE INTEGRATED LOGISTICS SinceIron 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 (9%). SK and Wisco will together offtake 64% of total production Long-Term contract (20 years). Wisco will off-take at least 50% of MMX Sudeste production. 11
- 12. QUADRILÁTERO FERRÍFEROIron oreQuadrangle 12
- 13. RAILWAY Railway access connectingMRS to the Sudeste Superport 13
- 14. Contract signed onDecember 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. SERRA AZUL Expansion projectwith 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 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% SiO2: 3.23% Mn: 0.018% AL2O3: 0.54% LOI: 0.75% 15
- 16. SERRA AZUL Growth throughconsolidation while leveraging existing infrastructure 16
- 17. SERRA AZUL Serra AzulUnit Expansion Project New Beneficiation Plant, transmission line and water pipelines, Stockyard and Loading Terminal Pit 17
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- 19. Primary CrusherGrinding Construction Site BeneficiationMain Access Water Storage Tank Grinding Primary Crusher Pump House, Sump and Thickeners Substation Piles Construction Site and Warehouse Water Storage Tank Inc. Administrative Buildings Maintenance Workshop Earthwork SERRA AZUL
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- 22. Nautical Access Offshore Tunnel Stockyard 32 Stockyard06 Railway Access Sudeste Superport Artistic View 22
- 23. SUDESTE SUPERPORT Overview Licensed to50 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) 23 Sudeste Superport - Itaguaí
- 24. USIMINAS AGREEMENT SRK resourcesaudit : 810 million tons plus a potential of an additional 75 million tons Pau de Vinho target production: 8 Mtpy 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: ■ Up to 12 Mtpy 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. Railway Access to ItaguaíPort Road&Railway Access to MMX Sudeste Superport Road&Railway Access
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- 28. Sudeste Superport Stockyard Elevation6 m 28 Stockyard 32 Stockyard 6 Road Access Stacker Reclaimer Rolling Way Car Dumpers Stacker Reclaimer Infrastructure Car Dumpers Control Room
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- 30. 30 Sudeste Superport Car Dumpers CarDumpers Control Room of Car Dumpers Train Positioners
- 31. Sudeste Superport Stockyard Elevation32 m 31 Transfer House Concrete Base Electric Substation Infrastructure Tunnel Entrance
- 32. 11 m 20.5 m SudesteSuperport Tunnel entrance 32
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- 34. 34 Superporto Sudeste Estrutura Offshore 34 SudesteSuperport Offshore Structure 34
- 35. 35 Electric Substation Building Bridge2 (270 m) Bridge 1 (430 m) Platform 2 Tunnel Exit Sudeste Superport Substation Structure on Platform 1
- 36. 36 Superporto Sudeste Estrutura Offshore 36 SudesteSuperport Offshore Structure 36
- 37. 37 Superporto Sudeste Estrutura Offshore 37 Bridge 270m Bridge 430 m Pier 766 m Sudeste Superport Offshore Structure 37
- 38. 38 Superporto Sudeste Estrutura Offshore 38 SudesteSuperport Ship Loader Ship Loader
- 39. 39 Superporto Sudeste Estrutura Offshore 39 SudesteSuperport Ship Loader
- 40. 40 Superporto Sudeste Estrutura Offshore 40 SudesteSuperport Ship Loader
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- 42. CORUMBÁ Highlights Current Capacity: 2.1Mtpy 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 42
- 43. Investor Relations Carlos Gonzalez– CEO and IRO Adriana Marques – Manager Daniella Maia - Analyst Phone + 55 21 2163-6197 +55 21 2163-4366 ri@mmx.com.br