presentation update of mmx business plan
TRANSCRIPT
Conference call13.12.2010
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Disclaimer
This presentation relating to MMX Mineração e Metálicos S.A. (“MMX”) includes “forward-looking statements”, as that term is defined in thePrivate Securities Litigation Reform Act of 1995, in Section 27A of the Securities Act of 1933 and Section 21E of the U.S. Securities ExchangeAct of 1934. All statements other than statements of historical facts are statements that could be deemed forward-looking statements andare 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 andspecific. The risk exists that these statements may not be fulfilled or, even if they are fulfilled, the results or developments described in suchspecific. The risk exists that these statements may not be fulfilled or, even if they are fulfilled, the results or developments described in suchstatements may not be indicative of results or developments in future periods. We caution participants of this presentation not to placeundue reliance on these forward-looking statements as a number of factors could cause future results to differ materially from thesestatements.
Forward-looking statements may be influenced in particular by factors such as the ability to obtain all required regulatory approvals on atimely basis or at all, exploration for mineral resources and reserves, difficulty in converting geological resources into mineral reserves, andchanges 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 registeredunder the U.S. Securities Act of 1933, as amended, or any applicable state securities laws and may not be offered or sold in the UnitedStates 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 partwithout MMX’s prior written consent.
Investor Relations
Roger Downey – CEO & IRO
Camila Anker– IR Manager
Rafaela Gunzburger – Analyst
Tel. + 55 21 2555-6197/ 6338
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Business Plan
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Serra Azul
2,960
CAPEX (R$ Million)
21.7
25.3 25.3 25.324 24
Production capacity (Mtpy)*
4
* Time adjusted
CAPEX 79 USD/ton
49
539
2010 2011 2012-2016
8.7 8.76.5
0.61.3
1.3
1.3 1.3 1.3 1.3
1.8
20.424 24 24
24 249.3 10 9.6
2011 2012 2013 2014 2015 2016 2017 2018... ...2020
Current Capacity GVA Expansion
Serra Azul ExpansionMilestones
2H10 1H11 2H11 1H12 2H12 1H13 2H13
EIA RIMA
Filed
Environment
al License
Construction
License Start up
Basic
Engineering
Se
rra
Azu
l E
xp
an
sio
n
Construction
5
Engineering
Ordering
Equipment
begins
Development
Construction
Operations
Se
rra
Azu
l E
xp
an
sio
n
Bom Sucesso
1,424
CAPEX (R$ Million)
6.5
9.8 10 10
Production capacity (Mtpy)*
6
CAPEX 81 USD/ton * Time adjusted
5 38
2010 2011 2012-2016
6.5
2015 2016 2017... ...2025
Funding
The syndicate of the financial advisors will fully support theCompany in obtaining third party resources necessary toexecute the Serra Azul project expansion, with approximatelyUS$ 800 million, 56% of the estimated US$ 1.4 billion.
Capital Structure
7
75%
25%
Debt Equity
Sudeste Superport: Iron Ore StorageCapacity Increase
8
Land Acquisition = 150,000 m2
9
Construction Site
10
Oct/2010
Construction Site
11
Dec/2010
THANK YOUTHANK YOU
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