Mmx webcast ingles 2013 vfinal

2013 RESULTS

March | 2014

DISCLAIMER

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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.

2013 HIGHLIGHTS 1.

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MAIN FIGURES

2013 YxY

Production 5.9 million tons -20%

Sales 6.6 million tons -4%

Net Revenues R$ 1,041.2 million 29%

Net Loss R$ -2,057 million 160%

Adjusted Ebitda R$ -156.6 million -131%

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2013 HIGHLIGHTS AND SUBSEQUENT EVENTS

Conclusion of investment operation by Trafigura and Mubadala in Porto Sudeste do Brasil S.A. (formerly MMX Porto Sudeste Ltda.);

Approval by the Board of Directors of the revised business plan;

Financial advisors engaged to evaluate business opportunities;

Review of figures and strategy for the Corumbá unit culminating in recognition of losses relating to realization of assets at this Unit, in the amount of R$153.8 million;

Agreement signed to sell totality of shares of Chile Unit to Inversiones Cooper Mining S.A;

Renewal of mining rights leasing agreements with Companhia de Mineração da Serra da Farofa ("CEFAR"), extending validity terms from 2021 to 2034;

New certification of mineral resources amounting to 3.6 billion tons considering Serra Azul Unit and the Pau de Vinho and Bom Sucesso Mines;

Conclusion of the capital increase process at MMX in the amount of R$1.4 billion, by way of private subscription of new ordinary shares;

Arrival of two ship loaders at Superporto Sudeste, manufactured in China.

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FINANCIAL HIGHLIGHTS

1.036 806

1.041

0

300

600

900

1.200

2011 2012 2013

Net Revenue (R$ million)

630 437

654

0

200

400

600

800

2011 2012 2013

Gross Profit (R$ million)

165 49

-157

15,9% 6,0%

-15,0%

-20%

0%

20%

-200

-100

0

100

200

2011 2012 2013

Adjusted EBITDA (R$ million)

Adjusted EBITDA EBITDA Margin

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CONSOLIDATED DEBT

2.683 2.694

2.791

4Q12 3Q13 4Q13

Net Debt (R$ Million)

42% 44% 48%

58% 56% 52%

0%

20%

40%

60%

80%

100%

4Q12 3Q13 4Q13

Debt profile

Short Term Long Term

2. CURRENT SHAREHOLDERS STRUCTURE

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Porto Sudeste do Brasil

MMX Corumbá Mineração

MMX Sudeste

100%

65%

94,52%

CONTROLLING SHAREHOLDER

59,3%

WISCO 10,5%

SK NETWORKS

8,8%

OUTROS 21,4%

Serra Azul

Bom Sucesso

35%

CORPORATE STRATEGY 2014 - PRODUCTION 2.

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SERRA AZUL - UNITY 2.1

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SERRA AZUL – Resources

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SERRA AZUL - Reserves

Audited Reserves – SRK October 2011

Friable 161 46.2 29.3 2.17 0.18 0.056 56.0 90

Compact 471 35.0 48.5 0.60 0.03 0.024 41.0 193

Subtotal 632 37.9 43.7 1.00 0.07 0.032 44.8 283

Friable 27 41.5 35.6 2.45 0.45 0.079 49.6 13

Compact 338 33.1 51.3 0.66 0.06 0.023 38.4 130

Subtotal 365 33.7 50.1 0.80 0.09 0.027 39.2 143

997 36.3 46.0 0.93 0.08 0.030 42.8 426

RESERVE ORE TYPE ROM PRODUCT

Tonnes Mt

Fe %

SiO2 %

Al2O3 %

Mn %

TOTAL

Recovery %

P %

Tonnes Mt

Proven

Probable

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SERRA AZUL – Current Operation

Resources – General Overview

Operating

Operating

Cut 10 Dry Tailing

IR

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Resources I – Tailing Piles Fine


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Resources I – Fines Dam B2 – Tico-Tico


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Resources I – Fines Dam B2 – Tico-Tico

B2 1040 2 734.38 53.65 16.75 2.37 0.086 0.020 3.06

1050 13 671.88 51.46 18.36 3.51 0.091 0.030 3.68

1060 58 398.44 55.21 12.27 3.69 0.101 0.045 3.58

1070 73 437.50 49.40 17.12 5.91 0.091 0.058 4.41

1080 95 117.19 59.27 10.36 1.86 0.087 0.014 2.00

1090 257 812.50 55.04 15.43 2.60 0.077 0.016 2.29

1100 225 390.63 57.01 12.96 2.47 0.084 0.014 2.42

1110 252 343.75 56.16 13.51 2.88 0.088 0.021 2.81

1120 110 351.56 39.69 34.07 4.95 0.075 0.020 3.28

1130 8 984.38 38.61 35.74 5.05 0.070 0.020 2.99

1140 195.31 38.19 36.66 4.97 0.070 0.020 2.72

B2 Total 1 098 437.50 53.97 16.07 3.12 0.084 0.021 2.75

Material Benc

h Volume (m3) Fe (%) SiO2 (%)

Al2O3

(%) P (%) Mn (%) PPC (%)


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Resources II – PDE CUT 10 (Friable + Compact)


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Resources II – PDE Grota das Cobras (Friable + Compact)

Fe SiO2 Al2O3 P Mn PPC

55,53 12,90 3,15 0,09 0,03 3,60


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Resources III – Dry Tailing Feed Plant IR - IPÊ


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Proposal of leasing this plant and the current own team for:

Upgrade and operational improvements;

Operation and Maintenance;

Excavation, loading, transportation and feeding plant;

Providing Tab Mag High Intensity.

Proposal for the expansion of this plant:

Feeding with fine tailings of Mineral cava;

Having an independent new line with new sep. Mag;

Reach a production capacity of 1Mtpa concentrate;

In plants will be contemplated installing filtering and dewatering to stack almost 100% of the products and recover process water.


Resources III – Dry Tailing Feed Plant IR - IPÊ

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ACHIEVED

7 Mtpy of current operation;

1 bn tonnes of certified reserves by SRK (10% friable @ 54% Fe and 90% compact @ 36%

Fe);

Installation License (LI) granted for beneficiation plant, pipeline, railway terminal, power

system, Paraopeba river pipeline, waste disposal areas, accesses and infrastructure;

Public Utility Decree (DUP) and Mining Easement granted;

Mine to port logistics guaranteed;

~ US$ 700 M of equity already injected. ~ US$ 260 M in mine equipment committed for

future expansion;

100% of required land already purchased;

Earthmoving and partial civil works already concluded;

Contract signed with MPX for energy supply;

SERRA AZUL - Expansion

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TO BE ACHIEVED

Installation License (LI) for pit expansion, waste dump, tailings dam and

tailings pipeline;

Conclusion of civil works;

Assembling of beneficiation plant, pipeline, new railway terminal;

Expansion of existing pit;

Conclusion of water intake / transmission line systems;

Operation License;

Remaining CAPEX estimated in US$1,4 Bn;

SERRA AZUL - Expansion

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Primary Crusher

Pump House, Sump and Thickeners

Piles

Beneficiation

Grinding

Substation

Restaurant

Administrative Buildings

Construction Site and Warehouse

SERRA AZUL – Advanced Earthwork

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SUDESTE PORT

Porto Sudeste - Itaguaí

35% partnership with Trafigura and Mubadala, with significant

operational track record and extensive financial capacity;

Long term contract with MMX Sudeste for port handling services

of 7 Mtpy with na expandable option to increase to 13 Mtpy until

2015;

In case of Port expansion to up to 100 Mtpy, MMX’s shipping right

can also be increased by 13% of extended Port capacity;

The whole internal trading of iron ore will be made through the

Porto Sudeste.

ADMINISTRATIVE STRATEGY 2.2

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Adapting the organizational structure to the new size of the Company

INTERNAL RESTRUCTURING

CARLOS GONZALEZ

CEO

RICARDO ASSEF

CFO

RICARDO WERNECK COO / CSO

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REVISION - Headcount

www.mmx.com.br

Mmx webcast ingles 2013 vfinal

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