corporate presentation – june 2007
TRANSCRIPT
CORPORATE PRESENTATION
JUNE 2007
DISCLAIMER
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 ofthe U.S. Securities Exchange Act of 1934. All statements other than statements of historical facts are statements that could bedeemed 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.
SUMMARY – MMX INTEGRATED SYSTEMS
Highlights.......................................................... 01Integrated Systems – Geographic Location...... 02Geological Resources and Reserves............... 03
MMX Corumbá System
Project Timeline................................................ 04Project Progress Update.............................. 05 and 06
MMX Amapá System
Project Timeline................................................ 07Project Progress Update.................................. 08
MMX Minas-Rio System
Project Timeline............................................... 09Project Details.................................................. 10
LLX Logística
Highlights......................................................... 11Açu Port........................................................... 12
MMX Mineração e Metálicos S.A.
Corporate Structure...........................................13MMX and Anglo American.................................14CAPEX..............................................................15MMXM3 in Novo Mercado.................................16Stock Performance............................................17Toronto Stock Exchange...................................18Corporate Governance......................................19Main Events in 2006 and 2007.....................20 and 21Board of Directors & Executive Officers............22
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HIGHLIGHTS
High quality iron ore to be produced in three different regions in Brazil, from three fully integrated independent systems -> 38 million ton/year from 2011.
Successful IPO on July 24, 2006: US$ 509 million, the largest offering held in Brazil.
Experienced management team to carry out and guarantee the execution of all projects on time.
LLX Logística: additional value for MMX’s shareholders and development of opportunities in Brazil.
Anglo American and MMX sign definitive share purchase contract for the 49% interest in MMX Minas-Rio on May 14, 2007.
Committed to the best Corporate Governance practices.
A Newborn Company and an option for iron ore supply from Brazil
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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 BatistaNatural Reserve
Iron Ore Fines: 26.6 MtpyPellets: 7.0 Mtpy
MMX Integrated Systems develop and operate iron ore mines, pig iron and semi-finished plants and development of independent logistics.
MMX INTEGRATED SYSTEMS
MMX Corumbá System
MMX Amapá System
MMX Minas-Rio System
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MMX - Corumbá MMX - Amapá
Itapanhoacanga J. Monlevade Sapo Serro Mina 63 Total
( Mt ) ( Mt ) ( Mt ) ( Mt ) ( Mt ) ( Mt ) ( Mt )
Measured/ Indicated
301.3 - - - 47.2 73.6 422.1
89.0 133.3 - - 14.2 104.5 341.0
225.0 1480.0 422.0 150.0 2277.0
MMX - Minas-Rio Project
Inferred
Conceptual
GEOLOGICAL RESOURCES AND RESERVES
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Of the total 53 mining rights, 10 were researched in the first phase of the geological research programand are now certified, 6 are being researched, and 37 mining rights remains to be researched.
Drilling performed since March 2006: 36,033 meters in 540 drill holes and 4,294 samples.
Note: Data as of March, 2006
MMX CORUMBÁ SYSTEM - TIMELINE
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Start-upPig Iron Corumbá
Vertically Integrated High Value-Added Projects
20102003 2004 2005
Asset acquisitions
Start-up CorumbáMine
20092006 2008
Start-up MiniMill Corumbá
2007Engineering; begin drilling
2011
Production of iron ore (Mt)Production of pig iron (Mt)
0.72.2 2.9
0.1 0.4Production of semi-finished (Mt) 0.2
3.5 4.9
0.5
4.9
0.5
Construction License for Pig Iron Mill
Note: In 2008 Corumbá System reaches full pig iron capacity production of 0.4 Mt, which will be used to feed the semi-finished plant.
0.3
Mine 63 – industrial plant operating since December 2005
Production capacity of 3.1 million tons/year of lump (85%) andsinter feed (15%).
Tests performed by Lucchini (Steel Mill, potential offtaker) –lump ore quality improves blast furnace operationalperformance
Pig Iron Plant – Construction License granted in August 2006, construction initiated in September 2006
Start-up scheduled for July 2007
Supply agreement signed with Cargill in January 2007
Semi-finished Plant – Construction License granted in December 2006
MMX CORUMBÁ SYSTEM
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Acquisition of two farms in 2006 and due in 2007 as the firststep towards self-sufficiency in charcoal production (total area of 6004 ha)
Hired the most renowned eucalyptus planting company in Brazil – PLANTAR – to plant 48,250 acres in 5 years – in ownand third-party lands
Eliezer Batista Natural Reserve – MMX’s commitment withenvironmental preservation, 50 thousand acres in themost preserved area in South Pantanal
MMX CORUMBÁ SYSTEM
MMX policy: conciliate economic development withnature preservation
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MMX AMAPÁ SYSTEM - TIMELINE
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Vertically Integrated High Value-Added Projects
20102003 2004 2005
Asset acquisitions
2009
Start-up MiniMill Amapá
2006
AmapáRailwayConcession
2008Start-up PigIron Amapá
2007Start-upAmapá Mine
Engineering; begin drilling
2011
Production of iron ore (Mt)Production of pig iron (Mt)
0.44.8
6.5 6.5 6.5
0.3 1.3Production of semi-finished (Mt)
ConstructionLicense for Amapá Mine
PreliminaryLicense for Santana Port
2012
1.50.50.1
6.5
Note: In 2012 Amapá System reaches full pig iron capacity production of 2 Mt. Part of this output will be used to feed the semi-finished plant.
Amapá Mine – Construction License granted in August 2006, construction initiated in September 2006.
Start-up scheduled for 4Q07, production capacity of 6.5 million tons/year of iron ore.
20-year supply contract signed with Gulf Industrial InvestmentCo. in November 2006.
Amapá Railway – 20-year concession contract.
Railway under operation connecting the mine to the port in Santana.
Santana Private Port Terminal - ANTAQ grantsauthorization for construction and operation in January 2007.
Santana Private Port Terminal – OperatingLicense granted in April 2007.
MMX AMAPÁ SYSTEM
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MMX MINAS-RIO SYSTEM - TIMELINE
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Beginning of pipeline, port and pellet plant construction
Vertically Integrated High Value-Added Projects
20102003 2004 2005
Asset acquisitions
2009Start-up Minas -Rio System
2006 20082007Begin drilling
2011
Production of iron ore (Mt)Production of pellet (Mt)
8.0
20.0
26.6
Engineering and drilling of new areas
Note: Beginning in 2011, part of the iron ore production will be used to feed the pellet plant.
2012
26.6
7.0
3.0
Start-up Pellet PlantMinas-Rio System
Additional geologic resources;
Iron ore production of 26.5 million tons/year from2011;
Off takers – GIIC and Japanese Trading Co. (undernegotiation)
Pelletizing tests performed by SGA andOutokumpu – Lurgi confirms high quality of thepellets.
Pipeline with approximately 525 km, crossing 32 municipalities;
Public hearings concluded on April 20, 2007;
Detailed topography concluded, right of way to beconcluded in September 2007.
Negotiations with 50% of the landowners (out of a total 1,017) in the course of the pipeline have beenconcluded.
MMX MINAS-RIO SYSTEM
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LLX LOGÍSTICA S.A. - HIGHLIGHTS
Sound economic fundamentals will underpin Brazil’s next high growth cycle
Trade will play a key role in the process, raising substantially the demand for logistics system
Brazil is underinvested in its infrastructure and provides outstanding opportunities for companies to invest in this sector
Isolation of logistics assets allows a better perception of its value, thus attracting a more focusedanalyst community and new investors
Independent management
Management focused in finding new opportunities in logistics
Key Elements considered in the creation of LLX:
LLX Logística S.A. holding company for MMX’s logistics division.
LLX Minas-Rio Logística S.A. slurry pipeline and a 300-hectare iron ore port facility at the Açu Port.
LLX Açu Operações Portuárias S.A. remaining port area (5,700 hectares).
Filtering Area Iron ore storage area
Offshoresupportinfrastructure
PelletizingPlants
Petroleumprocessingplants
Power Plants Steel Plants
LLX LOGÍSTICA S.A.
Tankingfacilities
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AÇU PORT
Construction License granted on May 14, 2007
Size of retroarea: 15,000 acres
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MMX Corumbá
30% CentennialAsset Corumbá
70%
MMX Amapá
30% ClevelandCliffs
70%
MMX Minas-Rio
49% Anglo American
51%
MMX Metálicos
LLX Minas-Rio Logística SA
100%
51%
LLX Logistica
LLX Açu Oper. Portuária SA.
100%
70%
30% Centennial Asset49% Anglo American
MMX Amapá – transaction with Cleveland Cliffs closedon March 5, 2007.
MMX Minas-Rio – definitive share purchase contract withAnglo American signed on May 14,2007.
CORPORATE STRUCTURE Participation of Strategic Partners
Minas-Rio Project
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MMX and Anglo American - A Compelling Transaction
Agreement with blue-chip Anglo American confirms MMX’s status as the best development-stage iron ore asset outside the majors
Powerful combination of MMX’s skill sets in Brazil with Anglo American’s globally renowned capabilities to develop and operate premium assets
Perfect strategic fit, given Anglo American’s future growth strategy and long standing experience in Brazil
Joins two successful teams with experienced professionals
Significant reduction in MMX Minas-Rio’s future capital requirements
Earn-out structure fully aligned with shareholder’s interests
Unlocks value for MMX shareholders
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CAPEX INFORMATION
Debt - Firm Commitment
US$ 2.5 B
Debt - to be defined
US$ 0.5 B
Equity US$ 0.9 B
742
2,038
2,945
248
679
982
16555
Corumbá Amapá Minas-Rio Total
Debt Equity
220
990
2,717
3,927
TOTAL: US$3.9 billion
CAPEX - Sources CAPEX Composition
Total funding for MMX Minas-Rio project concluded.
Firm commitment with major banks in Brazil and with BNDES.
MMX Amapá: US$467 million
MMX Corumbá: US$15 million
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ControllingShareholder and
Management
FreeFloat
68%
32%
Capital Stock – 7,607,756 common shares FreeFloat - Geographic Distribution
1,0%
41%16%
26%16%
BrazilUnited StatesCanadaEUOther
MMXM3 is included in the Differentiated Corporate Governance Stock Index
Stock split program initiated in January 2007 – second stock split scheduled for July 2007; third stock
split in January 2008
MMXM3 IN NOVO MERCADO - BOVESPA
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Positive progress is being recognized by the capital market: market cap reached US$ 4.4 billion
MMXM3 X IBOVESPA
MMXM3 IN NOVO MERCADO - BOVESPA
20.00
100.00
180.00
260.00
340.00
420.00
500.00
580.00
24-Ju
l1-A
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-Aug
6-Sep
20-S
ep28
-Sep
11-O
ct26
-Oct
7-Nov
22-N
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-Dec
28-D
ec10
-Jan
18-Ja
n29
-Jan
6-Feb
15-F
eb27
-Feb
7-Mar
15-M
ar23
-Mar
2-Apr
11-A
pr19
-Apr
27-A
pr8-M
ay16
-May
24-M
ay
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00Price (US$) Volume (US$ million)
MMXM3 195.5%IBOVESPA 63.7%
IBOVESPA
MMXM3
20.00
100.00
180.00
260.00
340.00
420.00
500.00
580.00
24-Ju
l1-A
ug22
-Aug
6-Sep
20-S
ep28
-Sep
11-O
ct26
-Oct
7-Nov
22-N
ov4-D
ec15
-Dec
28-D
ec10
-Jan
18-Ja
n29
-Jan
6-Feb
15-F
eb27
-Feb
7-Mar
15-M
ar23
-Mar
2-Apr
11-A
pr19
-Apr
27-A
pr8-M
ay16
-May
24-M
ay
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00Price (US$) Volume (US$ million)
MMXM3 195.5%IBOVESPA 63.7%
IBOVESPA
18
Level I GDR Program initiates in the Toronto Stock Exchange on June 6, 2007
GDR per share ratio of 20:1
Ticker Symbol: XMM
CUSIP: 60688E102
Procedure for purchasing: contact broker or The Bank of New York (XMM’s Depositary Bank)
GDRs are also negotiated in the US OTC exchange under the ticker MMXMY
TORONTO STOCK EXCHANGE GDR LISTING
The Bank of New YorkShareholder Relations DepartmentP.O. Box 11258Church Street StationNew York, New York 10286-1258US: 1-888-BNY-ADRSIntl. Callers: [email protected]
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MMX CORPORATE GOVERNANCE
Commited to the best corporate governance practices:
Board of Directors composed of 9 members, 6 independent with 1-year mandate
Audit Committee composed of 3 members, all independent
Hiring independent auditors according to internationally accepted criteria
Capital stock composed entirely of common shares, with 100% tag along
Free float greater than 25%
Stock Option program for the executives, with no dilution for minority shareholders
Corporate Policy for disclosing information to the public
Ethics Code
Arbitration for solving corporate issues
20
MMX entersNovo Mercado
MMX AmapáConstructionLicense (Mining)
MMX AmapáCleveland Cliffsproposes to buy 30% stake
MMX AmapáPreliminary License(Port)
Minas-Rio SystemSGA concludesiron ore tests
CVM authorizesLevel I GDR Program
Minas-Rio SystemPreliminaryLicense (Açu Port)
Amapá SystemReceivedauthorization for private portconstruction
Corumbá SystemConstructionLicense (Semi-finished plant)
First Stock Split2 for 1
MMX AmapáCleveland CliffsClosing & CAPEX increase
MMX Minas-RioCorporatereaorganizationcreation of LLX
MMX Minas-Rio IBAMA establishespublic hearingsprogram for pipeline
07/25/06 08/23/06
08/16/06
10/20/06
09/21/06
12/27/06 01/25/07 03/22/07 03/27/07
12/01/06 01/15/07 03/05/07 03/26/07
GIIC increases pellet feed supply contractto 13 million tons
MMX MAIN EVENTS IN 2006 AND 2007
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MMX CorumbáInjuction stopspig iron plantconstuction
04/11/07 05/08/07 05/14/07
MMX CorumbáInjunction is revoked, pig ironplant constructionresumes
MMX Minas – Rio & Anglo AmericanClosing
04/23/07 05/09/07 05/30/2007
MMX & Anglo American agree onsale of 49% interestin MMX Minas-Rio iron ore project
CorporateReorganizationcreation of twosubsidiariesunder LLX
MMX Minas- Rio ConstructionLicense(Açu Port)
GDRs listingapproved byToronto StockExchange
MMX’s Mineral Resources andReserves obtainNI43-101 certification
MMX MAIN EVENTS IN 2006 AND 2007
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Board of Directors
EliezerBatista
Chairman & CEO
Eike Batista
Michael Stephen
Vitton
Gilberto Sayão
Hans Mende
Peter Nathanial
Raphael de Almeida
Magalhães
Samir Zraick
Amaury Temporal
Independent Members
Board of Executive Officers
Executive PresidentInvestor Relations
Rodolfo Landim
Adriano Vaz
Audit Commitee
Samir Zraick
José Luiz Alqueres
Special Advisor
José Luiz Alqueres Dalton Nosé
Joaquim Martino
Nelson Guitti
Paulo Gouvêa
Peter Nathanial
CommercialDirector
Ricardo Antunes
General Counsel
Chief Financial Officer
Chief OperatingOfficer, Mining
Chief OperatingOfficer, Metallics
Administrative & HSEC
MMX - BOARD OF DIRECTORS & EXECUTIVE OFFICERS
Integrated andIndependent
logistics
High value-addedprojects, vertically
integrated
Mineral Resourceswith characteristics
that enablehigh quality
ptoducts
Health, Safety,Environmental
And SocialResponsibility
Experiencedmanagement
team
Long termsupply
relationships
Low productioncost at
competitivecapital
expenditurelevels
WWW.MMX.COM.BR
MMX MULTIPLYING VALUE
Investor RelationsRodolfo Landim – Director
of Investor RelationsElizabeth Cruz – Manager
Gina Pinto - AnalystTel. 55 21 2555-5634 / 5558/ 5563