mmx janeiro 2013 - ingles
TRANSCRIPT
MMX: CREATING CHOICES IN SEABORNE IRON ORE SUPPLY
Rio de Janeiro | January 2013
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
MMX INTRODUCTION
1
46% Controlling Shareholders
16% Wisco
14% SK Networks
24% Others
MMX Corumbá Mineração
MMX Sudeste Minera MMX
do Chile
Superporto Sudeste
Serra Azul
Bom Sucesso
100% 100% 100% 94.52%
5.48% EBX
MMXM3: SOLID CONTROLLING SHAREHOLDERS
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HIGH QUALITY MINING ASSETS 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 beyond 40 Mtpy in Brazil, through fully integrated systems: Private port
Strategic port location
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SRK certification: 3,1 billion 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
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Beginning of the R$ 1.4 billion capital increase process
BNDES approves allocation of 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
December 2012
February 2011
A LOT HAS BEEN DELIVERED
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FINANCIAL HIGHLIGHTS
273
204245
0
50
100
150
200
250
300
3Q11 2Q12 3Q12
Net Revenue (R$ million)
173
113
148
0
20
40
60
80
100
120
140
160
180
200
3Q11 2Q12 3Q12
Gross Profit (R$ million)
50
14
44
18.4%
6.8%
17.9%
0%
5%
10%
15%
20%
0
10
20
30
40
50
60
3Q11 2Q12 3Q12
EBITDA (R$ million)
EBITDA EBITDA Margin
8
1.51.1 1.3
0.7
0.60.6
0.0
0.5
1.0
1.5
2.0
2.5
3Q11 2Q12 3Q12
Sales (million ton)
Domestic Market Export Market
SUDESTE SYSTEM
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SERRA AZUL UNIT
2.1
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 Superport Railway
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%).
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.
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QUADRILÁTERO FERRÍFERO Iron ore Quadrangle
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RAILWAY
Railway access connecting MRS to the Sudeste Superport
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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.
Tariff: R$ 26.463/ton , net of tax, readjusted annually by a parametric
formula the variation in IGP-DI and in diesel oil.
MRS CONTRACT
MMX signed a long term contract for railway services
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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 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%
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SERRA AZUL
Growth through consolidation while leveraging existing infrastructure
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SERRA AZUL
Serra Azul Unit Expansion Project
New Beneficiation Plant, transmission line and water pipelines, Stockyard and Loading Terminal
Pit
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Serra Azul Expansion
Beneficiation Plant 18
Primary Crushing Grind
Construction Site
Beneficiation Main Access
Water Storage Tank
Grind
Primary Crushing
Pump House, Sump and Thickeners
Substation
Piles Construction Site and Warehouse
Water Storage Tank Inc.
Administrative Buildings
Maintenance Workshop
Earthwork
SERRA AZUL
SUDESTE SUPERPORT
2.2
Sudeste Superport
Location 21
Nautical Access
Offshore
Tunnel
Stockyard 32
Stockyard 06
Railway Access
Sudeste Superport
Artistic View 22
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
Capesizes handling
Loading: 2 ship loaders of 25 Mtpy each
Construction works for the tunnel and
offshore infrastructure completed
Fully funded (BNDES)
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Sudeste Superport - Itaguaí
USIMINAS AGREEMENT
SRK resources audit : 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
Handling fee: USD 12.63/ton adjusted
by US-PPI
Volumes:
■ 12 Mtpy
80% Take-or-Pay
Usiminas can renew the contract for 1
to 5 years
Pau de Vinho Joint Mining Sudeste Superport Handling
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Railway Access to Itaguaí Port
Road&Railway Access to MMX
Sudeste Superport
Road&Railway Access
Sudeste Superport
Stockyard Elevation 6 m 26
Stockyard 32
Stockyard 6
Road Access
Stacker Reclaimer Rolling Way
Car Dumpers
Stacker Reclaimer Infrastructure
Car Dumpers Control Room
27
Sudeste Superport
Car Dumpers
Car Dumpers
Control Room of Car Dumpers
Train Positioners
Sudeste Superport
Stockyard Elevation 32 m 28
Transfer House Concrete Base
Electric Substation Infrastructure
Tunnel Entrance
11 m
20.5 m
Sudeste Superport
Tunnel entrance 29
Sudeste Superport
Bridges and Platform 30
Electric Substation Building Bridge 2 (270 m)
Bridge 1 (430 m)
Platform 2
Tunnel Exit
Sudeste Superport
Platform and
Substation Structure 31
Electric Substation Building
Platform 2
32
Superporto Sudeste
Estrutura Offshore
32
Bridge
270 m
Bridge
430 m
Pier
766 m
Sudeste Superport
Offshore Structure 32
33
Superporto Sudeste
Estrutura Offshore
33
Sudeste Superport
Structure of the Belt
Conveyor
Defense
Belt Conveyor Structure
34 34
Sudeste Superport
Ship Loader
CORUMBÁ
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CORUMBÁ
Highlights
Current Capacity: 2.1 Mtpy
Long-term contracts signed with local and
international barge operators
77% of production already committed
through long-term contracts
SRK audit resources report: 192 million tons
plus a potential of an additional 123 million
tons
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Investor Relations Carlos Gonzalez – CEO and IRO
Adriana Marques – Manager Daniella Maia - Analyst
Phone + 55 21 2163-6197 +55 21 2163-4366