Mmx janeiro - en - vfinal
description
Transcript of Mmx janeiro - en - vfinal
MMX MINERAÇÃO Creating choices in seaborne iron ore supply
January | 2014
DISCLAIMER
2
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.
MMX INTRODUCTION 1.
4
Sudeste Superport
MMX Corumbá Mineração MMX Sudeste
100% 100% 94,52%
5,48% EBX
CONTROLLING SHAREHOLDERS
59,3%
WISCO 10,5%
SK NETWORKS
8,8%
OTHERS 21,4%
Serra Azul
Bom Sucesso
MMXM3
UMA HISTÓRIA ÚNICA
5
Two operating systems: Serra Azul and Corumbá;
Current Capacity: approximately 7 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;
Strategic port location.
Sudeste System | MG
Serra Azul Unit
Bom Sucesso Unit
Corumbá System | MS
Sudeste Superport | RJ
Sistema Sudeste
High quality mining assets in traditional mining districts
MMX INTRODUCTION
6
RESOURCE BASE SRK and Coffey Mining certifications (Serra Azul, Pau de Vinho e Bom Sucesso): 3,6 billion tons of mineral resources. Reserves of 1 billion tons in Serra Azul.
COMPETITIVE PRODUCTION
COST STRUCTURE
Low stripping ratio;
Competitive scale – New beneficiation plant;
Energy supply contract with MPX;
Infrastructure with integrated logistics.
GUARANTEED LOGISTICS
Sudeste Superport at 50 Mtpy, expandable to 100 Mtpy, provides gateway to seaborne markets;
Long Term Railway Contract with MRS.
SECURED OFF-TAKE
64% of future production already committed through long-term contracts.
OPERATIONAL TRACK RECORD
Experience management team with implementation and operational expertise;
Current Capacity of 7 Mtpy (Serra Azul and Corumbá sites).
Ingredients for a successful iron ore business
MMX INTRODUCTION
7
A lot has been delivered
MMX INTRODUCTION
JANUARY 2012
JANUARY 2014
Issuance of debentures at the amount of R$ 600 million;
Conclusion of the offshore civil works at the Sudeste Superport;
BNDES approves eligibility for a long term financing for Serra Azul;
Conclusion of the capital increase in the amount of R$ 1.4 billion;
Arrival of 2 Ship Loaders in the Sudeste Superport ;
Renewal of the lease contracts for mineral rights with the CEFAR, extending the terms of validity from 2021 to 2034;
Conclusion of the contracting of supplementary long term funding for the Sudeste Superport with BNDES, in the sum of R$ 935 million;
New certification of mineral resources (SRK and Coffey Mining) totaling 3.6 billion tons considering Serra Azul Unit, Mina Pau de Vinho and Bom Sucesso;
Hiring of financial advisors to evaluate business opportunities;
Sale of all shares in Minera MMX de Chile S.A. to Inversiones Cooper Mining S.A.
Definitive agreements executed by the Company with Trafigura and Mubadala;
The merger of MMX Porto Sudeste S.A. by MMX
Approval of the business plan’s revision of the Company;
8
Financial highlights
MMX INTRODUCTION
245 284
339
0
50
100
150
200
250
300
350
400
3Q12 2Q13 3Q13
Net Revenue (R$ million)
148 186
231
0
50
100
150
200
250
3Q12 2Q13 3Q13
Gross Profit (R$ million)
47 41
-70
19,2% 14,6%
-20,6% -32%
-16%
0%
16%
32%
-100
-50
0
50
100
3Q12 2Q13 3Q13
Adjusted EBITDA (R$ million)
Adjusted EBITDA EBITDA Margin
SUDESTE SYSTEM 2.
SERRA AZUL UNIT 2.1
11
Mine Superport Railway
Serra Azul unit is near to the MRS railway - 7 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.
Since Iron ore is a bulk
commodity, an integrated
logistic (mine > railway >
port) is the key factor for
a successful operation.
WISCO
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%).
Long-Term contract (20 years). Wisco will off-take at least 50% of MMX Sudeste production.
OFFTAKERS (SHAREHOLDERS)
SK NETWORKS
Logística integrada
UNIQUE INTEGRATED LOGISTICS
SK and Wisco will together offtake 64% of total production
QUADRILÁTERO FERRÍFERO
Iron ore Quadrangle
Minas Gerais
RAILWAY
Railway access connecting MRS to the Sudeste Superport
MMX signed a long term contract for railway services
14
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.
MRS CONTRACT
Expansion project with integrated logistic and pellet feed iron ore
15
SERRA AZUL
Highlights
Production target: 15 Mtpy waiting of new partner;
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;
Expected Quality – Ouro Preto pilot plant test work
Fe: 66,65% P: 0,025% AL2O3: 0,54%
SiO2: 3,23% Mn: 0,018% LOI: 0,75%
BR 381
Itatiaiuçu
Igarapé
São Joaquim de Bicas
Brumadinho
Sarzedo
Mario Campos
N
Growth through consolidation while leveraging existing infrastructure
SERRA AZUL
1 2
3 4
5
6
7
8 9
10 11
12
13
14
14
15
15
1 USIMINAS Western
2
3
4
5
6
7
8
9
MRI
USIMINAS Central
Arcelor Mittal
Minerita
Ferrous-Santanense
USIMINAS Eastern
Comisa
Emicon
10
11
12
MMX
USIMINAS Pau de Vinho
Ferrous – Esperança
13 Minera do Brasil
14 Vale
Itaminas 15 16
Serra azul unit expansion project
UNIDADE SERRA AZUL
17
1 Beneficiation Plant
2 Tailings dam, about 40km away from the mine, associated with a tailings pipeline
3 Pipeline with approximately 7km extension
4 Rail terminal connected to the MRS rail network
5 Arch extensions
6 Waste deposit
7 Water supply
8 High voltage power station
9 Access
2 6
9
1 5
7
9 9
8
3 4
Itatiaiuçu Igarapé
São Joaquim de Bicas
Mario Campos
Serra Azul Expansion
Beneficiation Plant
Earthwork
SERRA AZUL
1 Pump House, Sump and Thickeners
2 Construction Site
1 1
3 Beneficiation
2
3
4 Grinding
4
5 Substation
6 Grinding
7 Piles
8 Primary Crusher
5 6
7
8
9 Primary Crusher
10 Water Storage Tank
11 Construction Site and Warehouse
12 Water Storage Tank Inc.
9 10
11
12
13 Main Access
14 Administrative Buildings
15 Maintenance Workshop
13 14
15
SUDESTE SUPERPORT 2.2
21
Sudeste Superport
Location
Nautical Access
Offshore
Stockyard 32
Stockyard 06
Railway Access
Sudeste Superport
Artistic View
Overview
23
Licensed to 50 Mtpy, expandable to 100 Mtpy;
Licensing for 100 Mtpy underway, public Hearing held on May, 2012;
Navy Approval to 100 Mtpy;
Construction works for the tunnel and offshore infrastructure completed;
Fully funded (BNDES);
Definitive agreements executed with Trafigura and Mubadala to sell 65% of the Sudeste Superport.
SUDESTE SUPERPORT
Sudeste Superport - Itaguaí
24
USIMINAS AGREEMENT
Pau de Vinho Joint Mining
SRK resources audit : 805 million tons;
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.
Sudeste Superport Handling
Volumes: 12 Mpta;
80% Take-or-Pay;
Usiminas can renew the contract in 2016 for 1 to 5 years.
Sudeste Superport
Road & Railway Access
Road Access
Car Dumpers
Car Dumpers Control Room
Stacker Reclaimer Infrastructure
Stockyard 32
Stockyard 6
Stacker Reclaimer Rolling Way
Sudeste Superport
Stockyard Elevation 6 m
Sudeste Superport
Stockyard Elevation 6 m
Train Positioners
Control Room of Car Dumpers
Sudeste Superport
Car Dumpers
Sudeste Superport
Car Dumpers
Sudeste Superport
Stockyard Elevation 32 m
Electric Substation Infrastructure
Tunnel Entrance
Transfer House Structure
Sudeste Superport
Stockyard Elevation 32 m
32
Sudeste Superport
Tunnel
Superporto Sudeste
Estrutura Offshore Sudeste Superport
Tunnel Exit
Superporto Sudeste
Estrutura Offshore Sudeste Superport
Offshore Structure
Electric Substation Building
Plataform
Sudeste Superport
Plataform and Substation Structure
Bridge 270 m
Bridge 430 m
Pier 766 m
Sudeste Superport
Offshore Structure
Superporto Sudeste
Estrutura Offshore Sudeste Superport
Ship Loaders
CORUMBÁ 3.
39
CORUMBÁ
Highlights
Current Capacity: 2.1 Mtpy;
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;
Sale of assets in progress.
40
Carlos Gonzalez CEO and IRO
Adriana Marques Manager
Phone + 55 21 2163-6197
+ 55 21 2163-6338
E-mail [email protected]
MMX
INVESTOR RELATIONS
www.mmx.com.br