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CORPORATE PRESENTATION AUGUST 2007
CORPORATE PRESENTATION
AUGUST 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 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.
SUMMARY – MMX INTEGRATED SYSTEMS
Highlights.......................................................... 01Board of Directors & Executive Officers............ 02Integrated Systems – Geographic Location...... 03Geological Resources and Reserves............... 04
MMX Corumbá System
Project Timeline................................................ 05Project Progress Update.............................. 06 and 07
MMX Amapá System
Project Timeline................................................ 08Project Progress Update.................................. 09
MMX Minas-Rio System
Project Timeline............................................... 10Project Details.................................................. 11
LLX Logística
Açu Port........................................................... 12Highlights........................................................ 13LLX and OTPP................................................ 14
MMX Mineração e Metálicos S.A.
Corporate Structure...........................................15CAPEX...............................................................16Cash and Debt... ... ... ... ... ... ... ... ... ... ... ... ...17MMXM3 in Novo Mercado.................................18Stock Performance............................................19Toronto Stock Exchange...................................20Corporate Governance......................................21Main Events in 2006 and 2007.....................22 and 23
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HIGHLIGHTS
Experienced management team to carry out all projects on time.
High quality iron ore produced in three different regions in Brazil.
Vertically integrated projects with diversified and high value-added products .
LLX Logística: additional value for MMX’s shareholders and development of opportunities in logistics.
Anglo American and Cleveland Cliffs: strategic partners with renowned technical and financial abilities.
1st. Brazilian company listed on Toronto Stock Exchange: GDRscommenced trading in June 2007.
Environmental & Social Responsibility and committed to the bestCorporate Governance practices.
1
An option for iron ore supply from Brazil and new opportunities in logistics
2
Board of Directors
EliezerBatista
Chairman & CEO
Eike Batista
Michael StephenVitton
Gilberto Sayão
Hans Mende
Peter Nathanial
Raphael de Almeida
Magalhães
Samir Zraick
Amaury Temporal
Independent Members
Board of Executive Officers
Executive PresidentInvestor RelationsRodolfo Landim
Adriano Vaz
Audit Commitee
Samir Zraick
Luiz de França Pereira
Special Advisor
Luiz de França Pereira
Dalton Nosé
Joaquim Martino
Nelson Guitti
Paulo Gouvêa Peter
Nathanial
Chief CommercialOficcer
Ricardo Antunes
General Counsel
Chief Financial Officer
Chief OperatingOfficer, Mining
Chief OperatingOfficer, Metallics
Administrative & HSEC Officer
BOARD OF DIRECTORS & EXECUTIVE OFFICERS
JoséLuiz AmaranteExecutive
Commercial Director
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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Vertically Integrated High Value-Added Projects
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
89.8 133.3 - - 14.2 104.5 341.8
225.0 1480.0 422.0 150.0 2277.0
MMX - Minas-Rio Project
Inferred
Conceptual
GEOLOGICAL RESOURCES
4
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, 2006Source: NI 43-101 reports
Re-certification of resources and reserves planned for the end of 2007 with database up to July 2007.
MMX CORUMBÁ SYSTEM - TIMELINE
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Start-upPig Iron Corumbá
20102003 2004 2005
Asset acquisitions
Start-up CorumbáMine
20092006 2008
Start-up Semi-FinishedCorumbá
2007
Engineering; 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.
Iron Ore: 4.9 MtpyPig Iron: 0.4 MtpySemi-Finished: 0.5 Mtpy
MMX Corumbá System
Start-up second iron ore plant
Total estimated capex: US$234 million
Corumbá mines – total capex : US$72 million
Pig Iron Plant – revised capex expected to amount US$86.1 million
0.4 0.4 0.4
Mine 63 – industrial plant operating since December 2005
Production capacity of 2.7 million tons/year of lump (85%) and sinter feed (15%).
Tests performed by Lucchini (Steel Mill, offtaker) – lumpore quality improves blast furnace operationalperformance
Pig Iron Plant – Operation License granted in August 2006
Start-up in August 2007
Supply agreement signed with Cargill in January 2007
Semi-finished Plant – Construction License granted in December2006
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 6,004 ha)
Hired the most renowned eucalyptus planting company in Brazil – PLANTAR – to plant 48,250 acres (19,300 ha) in 5 years – in own and third-party lands
Eliezer Batista Natural Reserve – MMX’s commitment withenvironmental preservation, 50 thousand acres ( 20 thousand ha ) in the most preserved area in SouthPantanal
MMX CORUMBÁ SYSTEM
MMX policy: conciliate economic development withnature preservation
7
MMX AMAPÁ SYSTEM - TIMELINE
8
20102003 2004 2005
Asset acquisitions
2009
Start-up MiniMill Amapá
2006
AmapáRailwayConcession
2008
Start-up PigIron Plant
2007
Start-upAmapá Mine
Engineering; begin drilling
2011
Production of iron ore (Mt)
Production of pig iron (Mt)0.4
4.8
6.5 6.5 6.5
0.31.5
Production of semi-finished (Mt)
ConstructionLicense for Amapá Mine
PreliminaryLicense for Santana Port
2012
2.0
0.50.1
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.
Iron Ore Fines: 6.5 MtpyPig Iron: 2.0 MtpySemi-Finished: 0.5 Mtpy
MMX Amapá System
Total estimated capex: US$1.0 billion
Amapá Mine – revised capex expected to amount US$357 million
Amapá Metallics – US$643 million
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 Investment Co.( GIIC) in November 2006.
Amapá Railway – 20-year concession contract.
Railway under operation connecting the mine to theport in Santana.
Santana Private Port Terminal – Permit for construction and operation received from ANTAQ in January 2007; Operating License granted in April2007.
MMX AMAPÁ SYSTEM
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MMX MINAS-RIO SYSTEM - TIMELINE
10
Beginning construction of pipeline and port
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
Iron Ore Fines: 26.6 MtpyPellets: 7.0 Mtpy
MMX Minas-Rio System
Beginning pellet plant construction
Total estimated capex: US$2.7 billion
Mine + pipeline + port = revised capex expected to amount US$2,354 million
Duplication of the iron ore production under analyses
Additional geologic resources to be confirmed.
Iron ore production in phase I of 26.5 Mtpy from 2011;
Off takers with long term contracts – GIIC (8,3 Mtpy) and Sojitz Corporation (13,2 Mtpy);
Pelletizing tests performed by SGA and Outokumpu –Lurgi confirms high quality of the pellets.
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 80% of the landowners (out of a total 1,060) in the course of the pipeline have been concluded.
MMX MINAS-RIO SYSTEM
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Filtering Area Iron ore storage area
Offshoresupportinfrastructure
PelletizingPlants
Petroleumprocessingplants
Power Plants Steel Plants
LLX LOGÍSTICA S.A.
Tankingfacilities 12
AÇU PORT Industrial area in the southeast of Brazil, region thatconcentrates 65% of Brazil’s GDP
Construction License granted on May 14, 2007
Permit for construction and operation received from ANTAQ on June 20, 2007
Mixed-used private port facility featuring a deep draft portwith minimum need for dredging
Able to berth large vessels of over 160,000 tons (cape size)
The facilities have been designed to comply with ISPS (International Ship and Port Facility Security Code) regulations
Main access of the Minas-Rio Logistics System,
contributing to the development of a new and modern export center
AÇU PORT
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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 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. 300-hectare iron ore port facility at the Açu Port.
LLX Açu Operações Portuárias S.A. remaining port area (5,700 hectares – 14,250 acres ).
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LLX and Ontario Teachers Pension Plan Board
The Ontario Teachers` Pension Plan Board (OTPP) and LLX have entered into a memorandum of understanding to subscribe 15% of preferred shares of LLX for US$185 million.
The investment is subject to the negotiation of definitive agreements, a shareholders agreement of LLX, conclusion of due diligence and corporate approvals.
The investment implies a valuation of MMX’s remaining 85% common share interest in LLX of approximatelyUS$1.05 billion.
Minas-Rio Mineração
51%51%
15%
LLX Minas-Rio LLX Açu
70%
30%49%
49%
CentennialLogística
85%
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MMX Corumbá
30% CentennialAsset Corumbá
70%
MMX Amapá
30% ClevelandCliffs
70%
MMX Amapá – partnership with Cleveland Cliffs signedin March 2007.
MMX Minas-Rio – partnership with Anglo Americansigned in July 2007.
MMX Corumbá – under negotiation for strategicpartner.
AVG Mineração – agreement for the acquisitionsigned in July 2007 – Minas-Rio has the right to replace MMX as a buyer.
49% Anglo American
51%
MMX MetálicosMMX Minas-Rio
49% Anglo American
LLX Logistica
100%
30% Centennial Asset
LLX Açu
70%
LLX Minas-Rio
51%
100% / 51%
AVG
100%
CORPORATE STRUCTURE Participation of Strategic Partners
Minas-Rio Project
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CAPEX & FINANCING
Debt - Firm Commitment
US$ 2.2 B
Debt - to be defined
US$ 0.8 B
Equity US$ 0.9 B
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 Minas-Rio: US$270 million
MMX Corumbá: US$15 million
175752
2038
2965
248
679
985
58
Corumbá Amapá Minas-Rio Total
Debt Equity
234
1,000
2,717
3,950
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CASH & DEBT
Strong Cash position – IPO and capital contribution from Anglo American – along with the funding already
approved and under negotiation guarantee the execution of the projects.
As of July, 31 2007 – US$ million
-
16785 83
334334
15 11-
895
1,337
977
74152
1,003
MMX S.A. Corumbá Amapá Minas-Rio Consolidated
Debt Cash Net Debt Net Cash
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ControllingShareholder and
Management
FreeFloat
68%
32%
Capital Stock – 15,215,512 common shares FreeFloat - Geographic Distribution
MMXM3 is included in the Differentiated Corporate Governance Stock Index
Stock split program initiated in January 2007 – second stock split concluded in July, 2007(2:1) ;
third stock split scheduled for January 2008 (10:1)
Successful IPO on July 24, 2006: US$ 509 million, the largest offering held in Brazil then.
MMXM3 IN NOVO MERCADO - BOVESPA
3%1%6%
36%
16%
24%
14%BrazilUnited StatesCanadaEUGDRsAsiaOther
MMXM3 IN NOVO MERCADO - BOVESPA
Market cap: US$ 3.4 billion
MMXM3 140.5 %IBOVESPA 46.1 %
MMXM3
IBOV
MMXM3 X IBOVESPA
20.00
100.00
180.00
260.00
340.00
24-Jul
22-Aug20-Sep11-Oct7-Nov
4-Dec
28-Dec18-Jan
6-Feb
27-Feb
15-Mar
2-Apr
19-Apr8-M
ay
24-May
12-Jun
28-Jun
17-Jul
2-Aug
20-Aug
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
Price (US$) Volume (US$) ilhõ )
19
20
MMX’s GDRs commenced trading on the Toronto Stock Exchange on June 27, 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)
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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CORPORATE GOVERNANCE
Commited to the best corporate governance practices:
Board of Directors composed of 9 members, 5 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
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MMX entersNovo Mercado
MMX AmapáConstructionLicense (Mining)
MMX AmapáCleveland Cliffsproposes to buy30% stake
MMX AmapáPreliminary License(Port)
Minas-Rio SystemSGA concludes ironore 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-RioCorporatereorganizationcreation 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/year
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 American Closing
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 (TSX)
MMX’s Mineral Resources and Reserves obtainNI43-101 certification
MAIN EVENTS IN 2006 AND 2007
06/20/07
MMX Minas-Rio receives permit for construction and operation fromANTAQ (Açu Port)
GDRs commencetrading on TSX
06/27/07
07/05/07
MMX executes contract for theacquisition of AVG Mineração S.A.
07/16/07
07/23/07
MMX Minas-Rio Companies & Anglo AmericanClosing
Second StockSplit 2 for 1
LLX and OTPP enterinto a MOU for theacquisition of a 15% stake in LLX
07/30/07
MMX Minas-Rio MMX and SojitzCorp. settle long-term supplycontracts for 12 million tons/yearof pellet feed
08/06/07
MMX CorumbáOperation License(Pig Iron Plant)
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
Elizabeth Cruz – ManagerGina Pinto - Analyst
Tel. 55 21 2555-5634 / 5558/ [email protected]
