presentation steel & mining day (deutsche bank)
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CORPORATE PRESENTATION
STEEL & MINING DAY
JANUARY 10, 2007
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.
Investor Relations
Rodolfo Landim – Investor Relations Officer
Elizabeth Cruz – Manager
Gina Pinto - Analyst
Tel. 55 21 2555-5634 / 5558/ 5563
ri@mmx.com.br
http://www.mmx.com.br/ri
DISCLAIMER
COMPANY OVERVIEWCOMPANY PROFILE
1
� MMX was created by a team of mining specialists led by Eike Batista
� Experienced management team
� Majority of members of the Board of Directors are independent
� Independent Audit Committee
� Focus on iron ore and its production chain provided by high-quality products
� Integrated mining operations and metallic plants connected to independent
logistics, structured in self-sufficient systems
� Health, safety, environmental and social responsibility
� Listed in the Novo Mercado - BOVESPA
Rodolfo Landim – Executive President andIR Director
Adriano Vaz – Administrative and HSEC Director
Dalton Nosé – Chief Operating Officer, Metallics
Joaquim Martino – Chief Operating Officer, Mining
Paulo Gouvêa – General Counsel
Ricardo Antunes – Commercial Director
Rudolph Ihns – Chief Financial Officer
Michael Stephen Vitton
Eliezer Batista
Gilberto Sayão
Hans Mende
José Luiz Alqueres
Peter Nathanial
Raphael de Almeida Magalhães
Samir Zraick
Amaury Temporal
Special Advisor:
BOARD OF DIRECTORS & EXECUTIVE OFFICERS
COMPANY PROFILE
Independent Members:
2
Eike Batista – Chairman & CEO
Board of Directors Board of Executive Officers
Samir Zraick
Carlos José da Silva Azevedo
Rivadávia Carsalade Herbster Gusmão
Audit Commitee
MMXMetallics
MMXCorumbá
COMPANY PROFILE CORPORATE STRUCTURE
3
70% 100%70% 70%
MMXAmapá
(Mine+Railway+Port)
MMXMinas-Rio
(Mine+Pipeline+Port)
(30% Centennial AssetCorumbá)
(30% Centennial AssetAmapá)
(30% Centennial AssetMinas-Rio)
Definitive Share Purchase Agreement signed with Cleveland Cliffs, in December 2006,
for the purchase of Centennial Asset´s 30% stake in MMX Amapá for US$ 133 million.
Centennial Asset is negotiating with strategic partners its 30% stake interest in MMX Corumbá and MMX Minas-Rio.
Capital Stock – 3,803,878 common shares
COMPANY PROFILE MMXM3 IN NOVO MERCADO - BOVESPA
Controlling
Shareholder and
Management
FreeFloat
4
� Successful IPO
� R$ 1,119 million (US$ 509 million)
� 1,373,000 subscribed shares
Geographic Distribution
Stock Trading Evolution
(1) Negotiation started on July 24(2) As of January 8(3) In US$ millions
Price Number of Volume Market(US$) Trades Traded (3) Cap. (3)
(daily average) (daily average)July (1) 377 19 5.3 1,433 August 381 1 1.7 1,449 September 375 2 0.2 1,426 October 373 2 0.2 1,420 November 414 4 1.2 1,575 December 430 2 0.6 1,637 January (2) 437 8 2.2 1,663
47%
11%
23%19%Brazil
United States
Canada
EU
COMPANY PROFILE
5
MMX IN THE CAPITAL MARKET
Target Price for MMXM3
Listing in Canada – Toronto Stock Exchange:
� Auditing of MMX Systems´ resources and mineral reserves under way – Canadian
Standard NI-43.101 – disclosure is expected for 1Q07;
� USGAAP Financial Statements to be reported in 1Q07;
� Level I Global Depositary Receipts (GDR) Program approved by CVM in December 2006 -
GDR per Common Share ratio of 40:1 - estimated GDR CAD$12.8 (Jan 8, 2007 prices).
Date Ratio
January 2007 2 → 1 share
July 2007 2 → 1 share
January 2008 10 → 1 share
MMXM3 = price per share, minimum lot of 100 shares.
Stock Split Program
Firm Name Target Price Last Update
ABN Amro $606 Nov 10, 2006
Credit Suisse $756 Nov 29, 2006
Itau Corretora Buy $568 Oct 26, 2006
Macquarie $696 Nov 3, 2006
UBS Pactual $644 Jan 5, 2006
Average $654
Premium To Current 50%
Iron Ore Fines: 6.5 MtpyPig Iron: 2.0 MtpySemi-finished: 0.5 Mtpy
Iron Ore: 4.9 MtpyPig Iron: 0.4 MtpySemi-finished: 0.5 Mtpy
Engineer Eliezer Batista Natural Reserve
MMX Amapá System
MMX Minas-Rio System
MMX Corumbá System
Iron Ore: 26.6 MtpyPellets: 7.0 Mtpy
COMPANY PROFILE MMX INTEGRATED SYSTEMS
MMX Integrated Systems develop and operate iron
ore mines, pig iron and semi-finished plants and a
pelletizing plant.
6
RESOURCES CORUMBÁPROJECT
AREAAreaResource
Classification Tonnage (MT)
Indicated 65
� Long term supply agreement (take-or-pay) with Cargill for the production of pig iron, at market prices
� Mine 63 – lump (85%) and sinter feed (15%) production initiated in 2005
� Drilling performed: 3,611 meters as of November 2006
� Of the 21 mining rights, 3 were researched as of September 2006 (2 measured)
Mine 63
TOTAL 1,154
COMPANY PROFILE IRON ORE RESOURCES AND RESERVES
7
GEOLOGICAL RESOURCES – as of March 31, 2006
IndicatedInferred
220155
Taboca andVila do Meio
Indicated Inferred
408159Itapanhoacanga
Inferred 147João Monlevade
MMX Corumbá System
MMX Amapá System
� Long term (20 years) supply contract with Gulf Industrial
Investment Co. (GIIC) for 6.5 Mtpy
� Drilling performed: 28,254 meters as of November 2006
� Of the 18 mining rights, 3 were researched and measured
MMX Minas-Rio System
� Pellet feed production to begin in 2009
� Drilling performed: 19,736 meters as of November 2006
� Of the 27 mining rights, 12 were researched as of November
2006 (5 measured)
Vertically Integrated High Value-Added Projects
2010
Start-up Pellet PlantMinas-Rio System
2003 2004 2005
Asset acquisition
Start-up CorumbáMine
2009
Start-up Minas -Rio System
Start-up MiniMill Amapá
2006
AmapáRailwayConcession
2008
Start-up MiniMill Corumbá
Start-up PigIron Amapá
Start-upPig Iron Corumbá
2007
Start-upAmapá Mine
Engineering; beginning of drilling
2011
Production of iron ore (Mt)
Production of pig iron (Mt)
14
9
19
3137
0.2 0.7 1.3 1.5 1.5Production of semi-finished (Mt) 0.1 0.5 1.0 1.0
OPERATIONAL STATUS MMX PROJECTS TIMELINE
8
Minas-Rio: drilling of new areas
Beginning of Pipeline and Port construction
MMX Systems
CorumbáMine and processingPig Iron MillMini Mill
AmapáMine and processingPortPig Iron MillMini Mill
Minas-RioMine and processingPipelinePortPellet Plant
2005 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
20102006 2007 2008 2009
� Preliminary License – approves project studies
� Construction License – authorizes infra-structure works
PERMIT GRANTED
PERMIT EXPECTED
Operational Start-up
OPERATIONAL STATUS ENVIRONMENTAL PERMITTING TIMELINE
9
OPERATIONAL STATUS CAPEX DISBURSEMENT TIMETABLE
� As of September 2006, expenditure of US$ 64.5 million.
� Disbursement timetable under review, payments carried over to 2007 (approximately US$129 million).
10
CAPEX – By System (US$ million)
254
828995
283
2,377
54
330
543
297
1,225
2006 2007 2008 2009 - 2013 Total (*)
Mine & logistics Metallics
(*) includes 2005 figures
CAPEX – By Activity (US$ million)2006 2007 2008 2009 - 2013 Total (*)
Corumbá 88 93 23 - 220 Mine 42 13 - - 72 Metallics 46 80 23 - 148
Amapá 87 294 382 153 915 Mine 60 54 38 - 152 Logistics 21 59 40 - 120 Metallics 5 181 304 153 643
Minas-Rio 134 772 1,133 427 2,466 Mine 100 282 348 241 971 Logistics 31 420 569 42 1,062 Pellet Plant 3 70 216 144 433
Total 308 1,158 1,538 580 3,602
US$ millionUS$ million
Status (1)Status
US$50 mmBridge Loan
-
-
Disbursed
Firm CommitmentUS$ 50 mmBridge Loan
OPERATIONAL STATUS FINANCING
2,378
72
273
2,033
1,224
148
643
433
3,602TOTAL
Metallics
Corumbá
Amapá
Minas-Rio (Pellet Plant)
Mine
Corumbá
Amapá
Minas-Rio
CAPEXProject Financing (1)
1,744
26
200
1,518
2,729
985
150
510
325
ABC/Unibanco/Itaú BBA/BNDES
Itaú BBA, ABC
Unibanco/Syndicate/BNDES
Lenders
Credit Suisse
Itaú BBA/BNDES
Itaú BBA/BNDES
Term
3 years
7/10 years
12 years
7 years
10 years
10 years
Financing in progress to carry out execution of Business Plan
11
(1) Expected Weighted Average Cost of Borrowing: Libor + 1,5%, assuming 50% funding by BNDES.
MMX CORUMBÁ SYSTEM
12
MMX SYSTEMS EVOLUTION
� Mine currently operating under Federal EnvironmentalLicense
Mine 63 – Industrial Plant
13
� Construction License granted for pig iron plant, construction of mini blast furnaces initiated in September
MMX CORUMBÁ SYSTEM
Pig Iron Plant Construction
MMX SYSTEMS EVOLUTION
14
� MMX has already initiated charcoal supply program for the pigiron plant.
Eucalyptus Plantation
MMX CORUMBÁ SYSTEMMMX SYSTEMS EVOLUTION
15
� Mine Construction License granted, 80% of
leveling and dam works completed, 100% of
key equipment for the operation under
contract with firm delivery dates.
MMX AMAPÁ SYSTEMMMX SYSTEMS EVOLUTION
16
� Railway Operating License granted,
progress in equipment and railway repairs and
acquisition;
� Santana Port – Preliminary Environmental
License granted, construction to begin at
1Q07.
MMX AMAPÁ SYSTEMMMX SYSTEMS EVOLUTION
17
MMX MINAS-RIO SYSTEM
� Serra do Sapo: additional resources to be measured
MMX SYSTEMS EVOLUTION
18
� Pipeline with approximately 525 km, passing by 32 municipalities;
� Environmental impact study in approval process by IBAMA, Preliminary License
expected dor 1Q07;
� Detailed topography concluded, right of way to be concluded in mid 2007.
MMX MINAS-RIO SYSTEMMMX SYSTEMS EVOLUTION
MMX SYSTEMS EVOLUTION
19
Açu beachAçu Port
AdministrativeServices
Process Area, Filtering Area and Pellet Plant
Storage
Loading capacity: 10.000 t/h
Draft: 21 m
Maximum size of vessels: 220.000 t
Storage capacity: 2.6 million t
Back area: 1.5 million m²
� Preliminary Environmental License granted on December 28, 2006.
MMX MINAS-RIO SYSTEM
AÇU SUPER PORT
ENVIRONMENTAL RESPONSABILITY
20
MMX SYSTEMS
� Eliezer Batista Natural Reserve – MMX´s commitment with environmental
preservation, 20 thousand hectars in the most preserved area in South Pantanal.
High value-added projects, vertically
integrated
High qualityproducts
Low production cost at
competitive capital
expenditure levels
Long term supply
relationships
Integrated and independent
logistics
MULTIPLYING VALUE
Health, Safety, Environmental
and Social Responsibility
COMPANY PROFILE
21
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