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 – Director of Investor Relations
Elizabeth Cruz – Manager
Gina Pinto - Analyst
Tel. 55 21 2555-5634 / 5558/ 5563
ri@mmx.com.br
http://www.mmx.com.br/ri
2
3. HIGHLIGHTS
A Newborn Company and an option for iron ore
supply from Brazil
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.
3
4. MMX INTEGRATED SYSTEMS
MMX Integrated Systems develop and operate
iron ore mines, pig iron and semi-finished
plants and development of independent
MMX Amapá System
logistics.
Iron Ore Fines: 6.5 Mtpy
Pig Iron: 2.0 Mtpy
Semi-Finished: 0.5 Mtpy
MMX Minas-Rio System
Iron Ore Fines: 26.6 Mtpy
Pellets: 7.0 Mtpy
MMX Corumbá System
Iron Ore Fines: 4.9 Mtpy
Pig Iron: 0.4 Mtpy
Semi-Finished: 0.5 Mtpy Engineer Eliezer Batista
Natural Reserve
4
5. MMX CORUMBÁ SYSTEM
Mine 63 – industrial plant operating since December 2005
Production capacity of 3.1 million tons/year of lump (85%) and
sinter feed (15%).
Tests performed by Lucchini (Steel Mill, potential offtaker) –
lump ore quality improves blast furnace operational
performance
Pig Iron Plant – Construction License granted in August
2006, construction initiated in September 2006
Start-up scheduled for June 2007
Supply agreement signed with Cargill in January 2007
5
6. MMX CORUMBÁ SYSTEM
Acquisition of two farms in 2006 as the first step towards self-
sufficiency in charcoal production
Hired the most renowed eucalyptus planting company in
Brazil – PLANTAR – to plant 48,250 acres in 5 years – in own
and third-party lands
MMX policy: conciliate economic development with
nature preservation
Eliezer Batista Natural Reserve – MMX’s commitment with
environmental preservation, 50 thousand acres in the
most preserved area in South Pantanal
6
7. MMX AMAPÁ SYSTEM
Amapá Mine – Construction License granted in August 2006,
construction initiated in September 2006.
Start-up scheduled for 4T07, production capacity of 6.5
million tons/year of iron ore.
20-year supply contract signed with Gulf Industrial Investment
Co. in November 2006.
Amapá Railway – 20-year concession contract.
Railway under operation connecting the mine to
the port in Santana.
Santana Port Terminal – Preliminary
Environmental License granted in August 2006.
7
8. MMX MINAS-RIO SYSTEM
Additional geologic resources;
Iron ore production of 26.5 million tons/year from
2011;
Off takers – GIIC and Japanese Trading Co. (under
negotiation)
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 be
concluded in September 2007.
8
9. LLX LOGÍSTICA S.A.
AÇU PORT
HOLDING COMPANY FOR
MMX’S LOGISTICS DIVISION
The corporate reorganization created two new
companies: LLX Minas-Rio Logística Sa., which will own
the slurry pipeline and a 300-hectare iron ore port facility
at the Açu Port, and LLX Açu Operações Portuárias S.A.,
which will own the remaining port area (5,700 hectares).
Filtering Area Iron ore Offshore Pelletizing Petroleum Power Plants Steel Plants Tanking
storage area support Plants processing facilities
infrastructure plants
9
10. CAPEX DISTRIBUTION AND SOURCES
Financing advancing according to the Business Plan
CAPEX – Distribution by System CAPEX – Sources
Pelletizing Plant
Debt - Being
US$ 0.4 B
structured
US$ 1.1 B
6%
27%
Corumbá Equity - MMX
Amapá US$ 0.6 B
Minas-Rio
67%
Equity - Strategic
Partners
US$ 0.2 B
Debt - Firm
commitment
US$ 1.4 B
TOTAL: US$3.7 billion
10
11. CORPORATE STRUCTURE Participation of Strategic Partners
70% 70% 51% 100% 100%
MMX Corumbá MMX Amapá MMX Minas-Rio MMX Metálicos LLX Logistics
30% Centennial 30% Cleveland 49% Anglo
Asset Corumbá Cliffs American 51% 70%
LLX Minas-Rio LLX Açu Oper.
Logística SA Portuária SA.
On April 23, 2007, Anglo American and MMX entered into
an agreement for the sale of a 49% interest in MMX
Minas-Rio Iron Ore Project.
49% Anglo American 30% Centennial Asset
11
12. MMX and Anglo American Transaction Overview
Anglo American plc (“Anglo”), MMX Mineração e Metálicos S.A. (“MMX”) and Centennial Asset Mining Fund LLC
(“Centennial Asset”) have entered into an agreement in connection with the following MMX assets (jointly, the “Minas-
Rio Companies”):
• MMX Minas-Rio Mineração Ltda (“MMX Minas-Rio”)
• LLX Minas-Rio Logística Ltda. (“LLX Minas-Rio” – together with MMX Minas-Rio, the “Minas-Rio
Companies”)
According to the agreement:
• Anglo will purchase 100% of Centennial Asset’s shares in the Minas-Rio Companies
• Anglo will subscribe for additional shares of MMX Minas-Rio and LLX Minas-Rio, resulting in Anglo owning
49.0% ownership interest in both assets
Transaction will be divided in two steps:
I. US$ 704mm cash payment to Centennial Asset and US$ 874mm capital contribution to the Minas-Rio
Companies, implying a pre-money valuation of US$ 2,347mm for 100% of the Minas-Rio Companies
II. Earn-out comprising additional cash payment of US$ 346mm to Centennial Asset and additional capital
contribution of US$ 526mm to the Minas-Rio Companies, implying a pre-money valuation of US$ 3,500mm
for 100% of the Minas-Rio Companies and a post-money total valuation of US$4.9mm.
i. Earn-out will be dependent upon the confirmation of the projected capacity expansion of the Minas-Rio
Companies, starting in 2012
Transaction is still dependent on Anglo, MMX and Centennial Asset agreeing on the final terms of the purchase
12
13. Step I – 49% in MMX Minas-Rio and LLX Minas-Rio
Centennial
Centennial
Asset
Asset 1
70% 30%
US$ 704,081,671
Transaction 1
cash payment
Structure
2 US$ 874,349,787
capital contribution
Minas-Rio
Minas-Rio
Companies
Companies 2
Implied pre-money valuation of
Pro-Forma 51% 49% US$ 1,150,000,063 for 49% stake
or
Structure US$ 2,346,938,904 for 100% stake
Minas-Rio
Minas-Rio
Companies
Companies
13
14. Step II – Earn-Out Dependent on Phase II (1)
Leading to 50% Ownership Interest
Centennial
Centennial
Asset
Asset
1
51% 49%
Transaction
Structure US$ 345,918,367
1
additional cash payment
US$ 525,650,262
Minas-Rio
Minas-Rio 2
additional capital contribution
Companies
Companies 2
Implied new pre-money valuation of
Pro-Forma 50% 50%
US$ 3,500,000,126 for 100.0% stake
Structure and US$4.9 million, post-money, i.e.,
after giving effect to the capital
contributions.
Minas-Rio
Minas-Rio
Companies
Companies
(1) Phase II refers to the envisioned expansion with the doubling of the Minas-Rio Companies capacity, subject to certain conditions, including Minas-Rio Companies confirming sufficient
reserves and obtaining the relevant environmental permits.
14
15. Transaction Details
– Implied value for 49.0% of Minas-Rio Companies (pre-money): US$ 1,150,000,063
– Pre-Money Valuation for 100.0% of Minas-Rio Companies = US$ 2,346,938,904
– Calculation for the capital contribution:
Payment to Centennial Asset + Capital Contribution
Step I = 49%
Pre-Money Valuation + Capital Contribution
– Payment to Centennial Asset = 30.0% * Pre-Money Valuation = US$ 704,081,671
– Capital Contribution = US$ 874,349,787
– Implied value for 100.0% of Minas-Rio Companies (pre-money): US$ 3,500,000,126
US$ 1,150,000,063 + Earn-out of US$ 600,000,000
= 3,500,000,126
50%
– Implied value for Centennial Asset’s stake = 30.0% * New Pre-Money Valuation = US$ 1,050,000,038
– Additional value to be received by Centennial Asset = 1,050,000,038 - 704,081,671 = US$ 345,918,367
Step II – Calculation for the capital contribution:
Total Payments to Centennial Asset + Total Capital Contributions
= 50%
New Pre-Money Valuation + Total Capital Contributions
– Total Capital Contributions = US$ 1,400,000,049
– Additional Capital Contribution = 1,400,000,049 - 874,349,787 = US$ 525,650,262
– Total Post-Money valuation = US$4.9 million
15
16. 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
16
17. MMX CORPORATE GOVERNANCE
Commited to following 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 of 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
Arbitrage for solving corporate issues
17
18. MMX - BOARD OF DIRECTORS & EXECUTIVE OFFICERS
Eike Batista
Chairman & CEO
Board of Directors Board of Executive Officers
Michael Raphael de Rodolfo Landim Executive President
Eliezer
Stephen Almeida Investor Relations
Batista
Vitton Magalhães
Adriano Vaz Administrative &
Independent Members HSEC
Gilberto Hans José Luiz Peter Samir Chief Operating
Dalton Nosé
Sayão Mende Alqueres Nathanial Zraick Officer, Metallics
Joaquim Martino Chief Operating
Special Advisor Officer, Mining
Amaury
Temporal Nelson Guitti Chief Financial
Officer
Audit Commitee Paulo Gouvêa General Counsel
Samir José Luiz Peter Ricardo Antunes Commercial
Zraick Alqueres Nathanial Director
18
19. MMXM3 IN NOVO MERCADO - BOVESPA
Capital Stock – 7,607,756 common shares Geographic Distribution
1,0%
Controlling
Shareholder and
16%
Management 26%
68% Brazil
United States
Canada
EU
32%
Other
16%
FreeFloat 41%
MMXM3 composes the Diferentiated Corporate Governance Stock Index
Level I GDR Program initiated on February 5, 2007 – GDR per share ratio of 20:1
Toronto Stock Exchange: listing in Canada expected for May 2007
Stock split program initiated in January 2007
19
20. MMXM3 IN NOVO MERCADO - BOVESPA
Positive progress is being recognized by the capital market: market cap reached US$ 3.4 billion
Price (R$)
1040
MMXM3 X IBOVESPA Volume (R$ million)
80.00
940 MMXM3 121.50% 70.00
IBOVESPA 38.8%
840 MMXM3
60.00
740
50.00
640
IBOVESPA
540 40.00
440
30.00
340
20.00
240
10.00
140
40 0.00
22 ov
ay
1- l
15 ar
23 ar
ar
11 r
19 r
27 r
8- r
22 g
ug
20 p
28 p
11 p
4- v
15 ec
28 ec
10 c
18 n
29 n
an
15 b
26 ct
7- t
27 b
eb
Ju
c
Ap
p
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Au
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-F
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24
7-
6-
6-
20
21. MMX MULTIPLYING VALUE
Experienced
management
team
Integrated and Long term
Independent supply
logistics relationships
Health, Safety,
Environmental
And Social
Responsibility
Low production
High value-added
cost at
projects, vertically
competitive
integrated
capital
expenditure
levels Mineral Resources
with characteristics
that enable
high quality
ptoducts
21
