corporate presentation – march 2010
TRANSCRIPT
Corporate Presentation
MMX MMX The only one of its kindThe only one of its kindThe only one of its kindThe only one of its kind
Disclaimer
This presentation relating to MMX Mineração e Metálicos S.A. (“MMX”) includes “forward-looking statements”, as that term is defined in the PrivateSecurities 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 characterizedby the use of words such as “projects”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, “may”, “will”, or “intends”, or by discussionsor comments about our objectives, strategy, plans or intentions and results of operations. Forward-looking statements include projections regardingour 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. Therisk exists that these statements may not be fulfilled or, even if they are fulfilled, the results or developments described in such statements may notbe 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 basisor 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 makepolitical and regulatory conditions. We caution that the foregoing list is not exhaustive. When relying on forward-looking statements to makedecisions, 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 canonly be made pursuant to definitive offering documents) nor a solicitation of an offer to buy any securities in the United States, or any otherjurisdiction. 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 oran 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 withoutMMX’s prior written consent.
Investor Relations
Roger Downey – CEO & IRO
Matheus Rosa – IR Manager
Tel. + 55 21 2555-6197
2
Iron Ore Market
3
Seaborne Iron Ore Supply/Demand
1050
1100
1150
1200
1250
1300
Mil
lio
n T
on
nes
Forecast
SUPPLY
DEMAND � Seaborne market already at
record levels. September is
now very near the peak levels
of June 2008.
� Iron Ore Markets are tight and
700
750
800
850
900
950
1000
2006 2007 2008 2009 2010E 2011E 2012E 2013E
Mil
lio
n T
on
nes
Source: Credit Suisse Estimates
� Iron Ore Markets are tight and
should be even tighter in
2010 and 2011.
� Shipments-to-capacity could
reach ~ 98%.
4
Crude Steel Production
1,045
1,113
1,228
1,3271,303
1,189
1,371
1,494
1,581
1,654
1,724
1,798
1,874
1.100
1.200
1.300
1.400
1.500
1.600
1.700
1.800
1.900
Millio
n T
on
nes
China ROW World
Forecast
� Chinese crude steel
production has rebounded
and is forecast to grow at
least 6.0 (CAGR).
127151
182220
280
354
424
493 499580
640
685733
777
901 925 948
720 699722 725
765 760804
833805
609
730
809848
877
824
875926
848 850904
945
0
100
200
300
400
500
600
700
800
900
1.000
1.100
Millio
n T
on
nes
Source: Credit Suisse Estimates
least 6.0 (CAGR).
� The world crude steel output
is expected to recover back
to pre-crisis levels by 2010.
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An EBX Group Company
6
EBX´s publicly held companies
All companies are listed in BOVESPA´s Novo Mercado Corporate Governance segment, consolidating a
market capitalization close to US$ 39.7 Bi*.
Core Business: Logistics
Market Cap:
US$ 4.0 Bi*
Controlling Shareholder:
54%
Core Business: Power Generation
Market Cap: US$ 1. Bi*
Controlling Shareholder:
76%
Core Business: Oil & Gas
Market Cap: US$ 31.7 Bi*
Controlling Shareholder:
62%
Core Business: Mining
Market Cap:
US$ 2.1 Bi*
Controlling Shareholder:
65%
* Source: Broadcast as of December, 30 2009; BRL 1,7412/USD (BACEN)
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A unique storyA unique story
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Since IPO (July’06), a lot has been delivered…
� MMX Amapá System, mine, railroad and port: operational in a 14-month record time;
� MMX Corumbá iron ore mine: operational in 8 months;
� MMX Corumbá pig iron furnaces: implemented in 12 months;
� Partnership with Anglo American and Cleveland Cliffs;
� Spin off of LLX;
July 2006
� Sale of assets to Anglo American: MMX Minas-Rio and MMX Amapá;
� Development of MMX Sudeste System: acquisition of assets, logistics secured and expansion
plans to 33.7 million tons per year of iron ore;
� Minera MMX de Chile: acquisition of mining rights and logistics already identified;
� MoU with Wuhan: supply of iron ore and sale of stake in MMX;
� Sale of Corumba’s pig iron facility to Vetorial;
� Wisco’s Investment in MMX and Iron Ore offtake from MMX Sudeste.Dec2009
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MMX structure
100%70% 100%
Free Float
34.93%
Controlling Shareholders
65.07%
Minera MMX
de Chile
30% Centennial Asset Corumbá
MMX Corumbá
Mineração
MMX Corumbá
Mineração
Bom Sucesso under basic engineering studies
Assets acquired by MMX (AVG: dec-07; Minerminas: jan-08)
Bom SucessoBom Sucesso
100%
Serra AzulSerra Azul
MMX SudesteMMX Sudeste
100%
Corumbá System started-up in 2005 (Mining)
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MMX Sudeste
The only one of its kind
MMX uniqueness:
� High quality iron ore;
� Low cash cost, due to the high in situ ore content
and high productivity;Corumbá
System� Secured logistics, through long-term agreements
with rail, barges and port services providers,
including LLX Sudeste Port, its sister company;
� The unique independent operating Brazilian junior
mining company;
� Experienced Management in selecting high value
mining assets, implementing and operating mining
projects;
� Proven ability in delivering value to shareholders.
SystemSudeste
System
MMX de
Chile
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Sudeste System
Serra Azul & Bom Sucesso
Sudeste System
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MMX Sudeste System: high grade iron ore, low cost
and secured logistics
� Environmental and Construction
� MRS has potential for ~ 300 tons/year.
BOM SUCESSO TENEMENT
licenses obtained;
� Long term financing under negotiation;
� 50 million ton/year of iron ore can be
expanded to 100 million tons;
� Start-up: second half 2011.
� Consolidation opportunity: mines in Serra
Azul can produce 60-80 million tons/year of
iron ore.
SUDESTE PORT13
Serra Azul overview
Magnetic Concentration Plant
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� Assets acquisition concluded in Jan./2008;
� Construction of Magnetic Concentration Plant and
operational enhancements: 8.7 Mtpy as annual
installed production capacity in Oct./2008.
Serra Azul site: 8.7 Mtpy of capacity reached on Oct’08
� Railway capacity secured through long-term
agreement with MRS up to 15 Mtpy;
� Port capacity from mid-2011 untill 2032 secured
through long-term agreement with LLX Sudeste
Port;
� Long-term Off-take agreements with domestic
Operations Sales & Logistics
� Long-term Off-take agreements with domestic
miners and steel makers;
� Wuhan will be the main off-taker of MMX Sudeste
production.
Magnetic Concentration Plant – Start-up Oct./2008
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MMX Sudeste System: High Grade Iron Ore, low cost
and secured logistics.
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Bom Sucesso: outstanding magnetite content and
logistics
Expected Quality:
Fe: 67.2%
SiO2: 2.5%
AL2O3: 0.5%
P: 0.033%
PPC: 0.6%
FeO: 8.8%
View from the west hillside of the Bom Sucesso mountain ridge
� Acquisition of mining rights concluded in July/2008;
� Unique magnetite content (close to 30%);
� The closest iron ore asset to the shore – 240km (lower rail tariff);
� Greenfield basic engineering studies and environmental licensing under
development;
� Rail capacity under negotiation with MRS to extend current contract for
additional 17 mt up to 2032.
Tests
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MMX Sudeste: Connected to Sudeste Super Port by MRS
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MMX Sudeste will export 32 million tons per year through
Sudeste Super Port
Sudeste Super Port can be expanded
to 100 million tons per year19
ChileChile
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Iron Ore in Chile: quality & logistics
Patrícia
Bella
� 4 mining rights
(2 purchase and options agreements);
� USD 44.5 million;
� 50km distant from the Chilean coast,
approx 1,760 hectares;
� Pellet feed with high magnetite
Preliminary tests in
Ouro Preto pilot plant:
� Fe: 67.50%
� SiO2: 2.5%
� Al2O3: 0.85%
� P: 0.015%
Fortuna-
Fierro
Teatinos
� Pellet feed with high magnetite
content;
� Existing railroad (FERRONOR).
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� EBX has 240,000 ha property in the Atacama
region;
� Permits to develop the urban, industrial and
port zones;
� Water availability with permits;
� Guaranteed site contract for:
� 89 ha of premium area (port);
Logistics: Puerto Punta Cachos
� 89 ha of premium area (port);
� 782 ha of retro-area;
� Unlimited scalability for a long-term
development;
� Located close to mining players;
� Opportunities for industrial businesses:
� Port / Thermo.
Puerto
Punta Cachos
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Corumbá SystemCorumbá System
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MMX Corumbá Mineração
� High Quality Lump yield;
� Current Capacity: 2.1 Mtpy.
� MMX has Long Term Supply Agreements – 5
years, in average - with traditional steel makers in
South America and Europe;
� Transport barges down the Paraguay River to
Ladário Port
� Transport barges down the Paraguay River to
Rosario Port;
� MMX has long-term contracts with local and
international barge operators;
� Rosario Port in Argentina: Handymax vessels to
Europe;
� Pig Iron operation sold on September 2009 to
Vetorial for R$ 100 million: 84% was already paid.
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Recent EventsRecent Events
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Closing of the deal with Wisco
� Wisco acquired newly issued common
shares of MMX;
� Total subscription of US$ 400 million;
� Equity participation in MMX of 21.52%;
� Offtake by WISCO of at least
50% of the iron ore from Serra
Azul Mines;
� Possibility to extend the offtake
to at least 50% from Bom
� Cooperation Agreement between EBX
and WISCO for the construction of an
integrated steel plant at LLX’s Açu Super
Port;
� WISCO will hold 70% and EBX
(directly or through affiliates) will hold
30% of the joint venture;
Equity investment in MMX Iron Ore offtake by Wisco Steel Plant at Açu Super Port
� Proceeds will be fully directed to the
development of Sudeste System;
� MMX shares issued at a per-share
price in reais1 equivalent to US$3.93;
� MMX issued 167,849,906 common
shares and minority shareholders
were granted preemptive rights in the
share issue at a rate of 0.55.
to at least 50% from Bom
Sucesso Mines;
� Combined exports of at least 16
millions tons per year of iron ore
from MMX Sudeste System,
once it is fully ramped-up;
� The Iron Ore Purchase and Sale
Contract shall be valid for 20
years as from April 1st, 2010.
30% of the joint venture;
� The minimum annual capacity of the
steel plant will not be less than 5 million
tons, with the possibility of increasing
significantly;
� Funding can be raised from China
Development Bank, Brazilian National
Development Bank (BNDES) and
through capital markets transactions;
� EBX and WISCO will seek to obtain all
necessary approvals for construction
before May 31, 2010.
1 - at the date of the Meeting of the Board of Directors that will approve the new issue of shares26
Who is WISCO
� The Chinese Wuhan Iron and Steel Corporation (WISCO) was created in 1955;
� WISCO is the first giant iron and steel complex established after the founding of the People’s
Republic of China;
� WISCO has an annual production capacity of 31 million tons, ranking the third in China and the 7th
largest steel producer in the world;
� WISCO plans to expand its steel production capacity to 50 million tons per year, what would
require a supply of approximately 80 million tons per year of iron ore;
� The CEO of Wuhan happens to be also the President of CISA (China Iron and Steel Association);
� WISCO is making great efforts to enter into the rank of the 500 top enterprises in the world and
become an important automobile sheets producer in China by 2010.
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