2. 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.
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
3. PROGRESS REPORT PROJECTS PERMITTING SINCE IPO
Construction License granted on August 16, 2006
Leveling and barrage works started on September 26, 2006
Acquisition of 100% of the equipment for the operation
Construction License granted on August 17, 2006
Earth movements and civil works started on August 26, 2006
First blast furnace operating in May 2007
Environmental License granted on August 22, 2006
Authorization for construction and operation granted by ANTAQ
(National Agency of Waterway Transportation) on January 10, 2007
1
4. PROGRESS REPORT PROJECTS PERMITTING SINCE IPO
Operating License granted on August 16, 2006
Renovation of equipment and railway
Environmental License granted on December 27, 2006
Construction License to be granted in March 2007
Construction License granted on January 14, 2007
Comprises sintering plant, steel and rolling mill
2
5. PROGRESS REPORT STRATEGIC PARTNERS
Cleveland-Cliffs agrees to
purchase Centennial
Asset’s 30% stake in MMX
Amapá for US$ 133 million
Final closing expected for
March 2007
3
6. PROGRESS REPORT LONG-TERM SUPPLY AGREEMENTS
Signed:
Gulf Industrial Investment Co.
20-year supply contract signed on November 9, 2006
6.5 Mtpy of iron ore fines from Amapá
Option for additional supply of 6.5 Mtpy of pellet feed from Minas-Rio to be exercised in March 2007
Supply agreement signed in January 2007
100% export production (excludes South America) - 308.000 tons / year of pig iron from Corumba
Final Negotiation:
Advanced negotiations under existing MOU for Minas-Rio
4
7. PROGRESS REPORT LONG-TERM SUPPLY AGREEMENTS
Trial Cargoes:
LUCCHINI (Italy) – Received 40,000 t lump ore from Corumbá which is being tested as 23%
input in the blast furnace burden and has been presenting very good performance
VOESTALPINE (Austria) – 40,000 t lump ore from Corumbá will be sent early February for
testing in the blast furnace
ACEPAR (Paraguay) – Received 13,000 t lump ore from Corumbá which is being tested as
100% input in the charcoal blast furnace burden and has been presenting very good performance
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8. PROGRESS REPORT CAPEX
CAPEX – Distribution by System CAPEX AND PRODUCTION
(in US$ million) (in million t)
1.800 38 38 38 40
1.600 1.538 35
31
6% 1.400
30
1.200 1.158
25
25% 1.000
Corumbá 19
20
Amapá 800
Minas-Rio 15
600
69%
9 440
10
400 308
4 5
200
1 66
25 25 25
- -
2006 2007 2008 2009 2010 2011 2012 2013
TOTAL: US$3,602 million CAPEX Iron Ore Production
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9. PROGRESS REPORT FINANCING
US$ 82 million US$ 200 million US$ 1 Billion
Mine -> US$ 32 million Mine & logistic -> US$ 200 US$ 50 million bridge loan
disbursed @ Libor + 2.7% - million to be signed in mid disbursed
-> increasing debt maturity February
US$ 310 M -> 8-year
Metallics -> US$ 50 million financing for the acquisition
bridge loan disbursed – to of Mining Rights
be converted in long-term
US$ 675 direct credit from
debt totaling US$ 150
Unibanco and Itaú BBA
million
7
10. PROGRESS REPORT MMXM3 IN NOVO MERCADO - BOVESPA
Performance MMXM3 X IBOV (in US$ million) Volume Traded
Price (US$) 60,0
MMXM3: US$246 56,2
270
Market Cap: US$1,870 million IBOV: 43,573pts
250 50,0
230 40,0 38,1
210 31,6
30,0
24,1
190
20,0
170
12,6
10,0
150 5,3
3,9 4,6
08-Aug-06
22-Aug-06
14-Nov-06
28-Nov-06 3,0
25-Jul-06
05-Sep-06
19-Sep-06
03-Oct-06
17-Oct-06
31-Oct-06
12-Dec-06
26-Dec-06
09-Jan-07
23-Jan-07
1,7 1,2 0,6
0,2 0,2
-
Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07
IBOV MMXM3 Total Daily Average
Capital Stock – 7,607,756 common shares Geographic Distribution
Controlling FreeFloat
20% 26%
Shareholder and Brazil
Management
United States
11%
Canada
EU
43%
8
11. PROGRESS REPORT MMX IN THE CAPITAL MARKET
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 20:1 - estimated GDR CAD$14.5 (Jan 29, 2007 prices).
Stock Split Program
Date Ratio
January 2007 2 → 1 share
July 2007 2 → 1 share
January 2008 10 → 1 share
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12. PROGRESS REPORT MMX INTEGRATED SYSTEMS
MMX Integrated Systems develop and operate iron
ore mines, pig iron and semi-finished plants and a
pelletizing plant.
MMX Amapá System
Iron Ore Fines: 6.5 Mtpy
Pig Iron: 2.0 Mtpy
Semi-finished: 0.5 Mtpy
MMX Minas-Rio System
Iron Ore: 26.6 Mtpy
Pellets: 7.0 Mtpy
MMX Corumbá System
Iron Ore: 4.9 Mtpy
Pig Iron: 0.4 Mtpy Engineer Eliezer Batista
Semi-finished: 0.5 Mtpy Natural Reserve
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13. PROGRESS REPORT MMX CORUMBÁ SYSTEM
Mine currently operating under Federal
Environmental License
Tests performed by Lucchini (Steel Mill, potential
offtaker) – lump ore quality improves blast furnace
operational performance.
Mine 63 – Industrial Plant
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14. PROGRESS REPORT MMX CORUMBÁ SYSTEM
Pig Iron Plant Construction
12
15. PROGRESS REPORT MMX CORUMBÁ SYSTEM
Certified Charcoal Supply Program
Acquisition of two farms in 2006 as the first step
towards self-sufficiency in charcoal production
• Correntes Farm: 8,975 acres for
eucalyptus plantation (CVRD)
• Jatiuca Farm: 500 acres for the
construction of nursery
Hired the most renowned eucalyptus planting
company in Brazil – Plantar- to plant 48,250
acres in 5 years – in own and third-party lands
13
18. PROGRESS REPORT HIGH QUALITY IRON ORE
Additional iron ore resources from Serra do Sapo
Pelletizing tests performed by SGA/Germany
stated:
• high quality direct reduction (DR) grade
pellets can be produced with Minas-Rio
fines
• high potential for the Minas-Rio pellets will
match the requirements for a DR-
feedstock in all aspects as indicated by the
comparison of the chemical, physical and
metallurgical properties of the Minas-Rio-
DR-pellets to the quality of other DR-pellet
grades of the world and to the target data;
• Chemical analysis proves that the Fe
content is high at 68.84%, guangue
contents are low at about 0.9%
(SiO2+Al203)
16
19. PROGRESS REPORT HIGH QUALITY IRON ORE
Tests performed by Outokumpu – Lurgi/Germany
• preliminary test results indicates excellent
chemical, physical and metallurgical
properties as well as excellent productivity
in the pilot plant – final report to be
concluded by mid February
17
20. PROGRESS REPORT MMX MINAS-RIO SYSTEM
Pipeline with approximately 525 km, passing by 32 municipalities;
Environmental impact study in approval process by IBAMA, Preliminary License
expected for 1Q07;
Detailed topography concluded, right of way to be concluded in mid 2007.
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21. SUPER AÇU PORT
PROGRESS REPORT
A CONCEPTUAL PLAN
SIZE OF RETROAREA – 15,000 ACRES
Filtering Iron ore Offshore Pelletizing Petroleum Power Steel Tanking
area storage area support Plants processing Plants Plants facilities
infrastructure plants
30. PROGRESS REPORT RAILWAY INTERCONNECTION
Possibilities to interconnect MMX Systems to the existing railway systems
Option 1
Option 2
To be
constructed
by MMX
45km
31. PROGRESS REPORT ENVIRONMENTAL RESPONSABILITY
Eliezer Batista Natural Reserve – MMX´s commitment with environmental
preservation, 50 thousand acres in the most preserved area in South Pantanal.
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33. PROGRESS REPORT IRON ORE RESOURCES AND RESERVES
MMX Corumbá System
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)
GEOLOGICAL RESOURCES – as of ÁPROJECT
RESOURCES CORUMB 31, 2006
March
MMX Amapá System
Resource
Drilling performed: 28,254 meters as of November 2006 Area AREA Classification Tonnage (MT)
Of the 18 mining rights, 3 were researched and measured
Mine 63 Indicated 65
Taboca and Indicated 220
MMX Minas-Rio System Vila do Meio Inferred 155
Pellet feed production to begin in 2009 Indicated 408
Itapanhoacanga
Inferred 159
Drilling performed: 19,736 meters as of November 2006
Of the 27 mining rights, 12 were researched as of November João Monlevade Inferred 147
2006 (5 measured) TOTAL 1,154
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34. PROGRESS REPORT PRODUCTION CAPACITY BY SYSTEM
CORUMBÁ AMAPÁ
Iron Ore 6.500 6.500
(1000 t)
Pig Iron
Semi Finished
4.870 4.870
4.300
3.260
2.000
AMAPÁ
1.300
1.000
810
375 400 452 490
196 309
56 55
2006 2007 2008 2009 2007 2008 2009 2010
MINAS-RIO
26.600 26.600
20.000
Iron Ore
Pellets
8.000
7.000 7.000
3.000
2009 2010 2011 2012 31