SOURCE:
MMX
2008-08-15 08:26:00
RIO DE JANEIRO, BRAZIL–(EMWNews – August 15, 2008) – MMX Mineração e Metálicos S.A.
(BOVESPA: MMXM3) (TSX: XMM) (“MMX” or “Company”), announces its results for
the second quarter of 2008 (2Q08) and for the first semester of 2008
(1S08). The financial statements presented at the end of this document were
prepared in accordance with the usual accounting practices adopted in
Brazil, based on Brazilian Corporate Law and CVM regulations (“BR GAAP”).
SUMMARY OF THE PERIOD
— MMX’s iron ore production totaled 1.430 thousand tons in the 2Q08, with
sales of 1.163 thousand tons, of which 57% to the domestic market and 43%
to exports markets.
— Net revenue reached R$90.1 million in the quarter reflecting the
increase in sales volume from MMX Sudeste and Corumbá, higher exports and
higher average prices.
— In April 2008, the Extraordinary Shareholders’ Meeting approved the
split of MMX’s common shares, in the proportion of 20 shares for each
existing share.
— At the Extraordinary Shareholders’ Meeting held on June 19, 2008, the
partial split-up of the Company was approved, with the allocation of
portions of its net worth to IronX and to LLX, under the terms of the sale
transaction of certain assets of MMX to Anglo American Participações em
Mineração Ltda (“Anglo American”).
— On June 20, the 30-day withdrawal period for shareholders began, due to
the partial split-up of the Company. The deadline for the withdrawal rights
ended on July 21, with no shareholder exercising its withdrawal rights.
Analysis of the Quarters Consolidated Result
Production
MMX’s iron ore production totaled 1,430 thousand tons in the 2Q08, of which
1,009 thousand tons from MMX Sudeste and 421 thousand tons from MMX
Corumbá. In addition, MMX Corumbá produced 59.2 thousand tons of pig iron
in the period. In the first semester of 2008 the iron ore production
reached 2,656 thousand tons and the pig iron production totaled 112
thousand tons.
MMX Corumbá has carried on its iron ore production plan, aimed at producing
1.9 million tons in 2008. Up to the 2Q08, the iron ore production totaled
817 thousand tons. The pig iron plant reached its nominal production
capacity of 400 thousand tons per year in January 2008, after the operation
startup of its second blast furnace. However, in light of the lack of
certified charcoal supply in the region, MMX has decided to revise the 2008
production to 230 thousand tons, as released in a Public Announcement on
July 24. MMX has decided to adopt even more restrictive criteria than those
imposed by law until higher standards are enforced by all MMX suppliers.
Up to the 2Q08, the MMX Sudeste iron ore production totaled 1,839 thousand
tons. This level of production could have been even higher if it wasn’t for
the delay in the closing of a collective agreement with the employees to
implement 4-shifts in the operations and in the hiring of workforce, which
led MMX to revise its 2008 production to 4.3 million tons. The fourth shift
was implemented in mid-May and MMX Sudeste is carrying on its iron ore
production plan with estimated recovery of its effective production
capacity expected for 2009.
Sales
In the 2Q08, iron ore Sales volume reached 1,163 thousand tons, of which
57% directed to the domestic market and 43% to the export market. Of total
sales, MMX Sudeste contributed with 803 thousand tons and MMX Corumbá with
360 thousand tons. MMX Sudeste’s sales to the export market were negatively
affected by shipment problems at the Itaguaí port, where only 2 vessels
were shipped, out of the 10 scheduled. This situation has been partially
solved with the confirmation of 8 vessels to be shipped in the coming
months. In the first semester of 2008 iron ore sales reached 2,111 thousand
tons, of which 66% directed to the domestic market and 34% to the export
market, and pig iron sales totaled 87 thousand tons.
Net Revenue
Net revenue in the 2Q08 reached R$90.1 million and was positively
influenced by higher sales volume, higher exports volume, as well as higher
average market prices, as a result of the annual iron ore price adjustment.
Net revenue in the 1S08 was R$250 million.
Operating Revenue and Expenses
In the 1Q08, administrative expenses totaled R$12.8 million and sales
expenses amounted to R$38.3 million in the 2Q08, and in the 1S08 these
expenses amounted to R$65.7 million and R$69 million, respectively.
The negative other operating expenses of R$8.8 million in the 1Q08 reflect
the goodwill amortization from the Minerminas and AVG acquisitions of
R$14.9 million, which was partially offset by the reversion in the
provision for inventory write-down to market value, in the amount of R$6.1
million. In the 1S08 the negative other operating expenses of R$24 million
is due mainly to the goodwill amortization from the Minerminas and AVG
acquisitions.
EBITDA
The 2Q08 EBITDA was R$56 million, positively affected by the decrease in
administrative expenses. In the 1S08 the accumulated EBITDA was negative
R$21.6 million. This indicator expresses the initial phase of MMX’s
operations, with production volume at a development phase, aimed at
reaching full capacity. The Company expects systematical improvements as
operations develop leading to sales increase.
Financial Result and debt
MMX recorded a net financial income of R$76 million in the 1Q08 and R$83 in
the 1S08 as a result of: (a) R$22.1 million interest income in the quarter,
obtained through the cash investment in marketable securities, and R$61
million interest income in the 1S08; (b) a R$55 million exchange rate
variation gain in the quarter — resulting from the effect of the 9%
appreciation of the Brazilian Real in relation to the US Dollar on the
foreign denominated debt, and R$68.3 million in the 1S08; and (c) R$1.1
million financial expenses in the quarter, mainly from interest payment on
debt, with R$45.9 million financial expenses in the 1S08.
MMX recorded net cash of (R$421) million in the 2Q08:
-- Cash and equivalents balance totaled 528.6 million on June 30, 2008.
-- Gross debt of R$950 million.
Non Operating Result
In the 2Q08, the Company recorded a negative non operating result of
R$252.3 million due to the exclusion of the capital gain obtained as a
result of the sale of a 15% stake in the former subsidiary LLX to Ontario
Teachers Pension Plan (OTPP). As a result of the partial split-up of the
Company’s shareholders equity, this amount is no longer a MMX result. In
the 1S08 this effect is nullified and the non operating result was of R$2.4
million.
Net Loss
The Company recorded a net loss of R$181.6 million in the 2Q08, mainly due
to the negative non operating result which was partially offset by the
positive operating and financial results. The Company recorded a net profit
of R$2.6 million in the 1S08.
Capex
MMX continued its development plan in course, aimed at achieving the
scheduled execution timeline. Total capex in fixed and deferred assets
required in the Corumbá and Sudeste operations was of R$43 million in the
1Q08, and the total amount invested to date in MMX’s operations reached
R$456 million. In the first semester of 2008 investments amounted to R$86
million in MMX’s operations, of which R$66 million in the Corumbá and
Sudeste operations.
MMX’s New Business Plan, disclosed on July 24, 2008, estimates total capex
of US$1.5 billion up to 2015, of which US$62 million for MMX Corumbá
Mining, US$333 million for MMX Corumbá Metallics, mainly in the billets
plant, and US$1.1 billion in the expansion of MMX Sudeste.
Comments regarding the consolidated performance include information
regarding future investments and mineral production volume outlook, which
are not part of the quarterly revision scope, and therefore, were not
revised by KPMG Auditores Independentes.
Parent Company Financial Statements
Listed below are the highlights for the 2Q08 and for the 1S08:
-- Net financial revenue of R$17.9 million in the 2Q08 and R$33.6 million
in the 1S08;
-- General and administrative expenses of R$20.4 million in the 1Q08 and
R$34.1 million in the 1S08;
-- Negative R$252.3 million non operating result in 1Q08 due to the
exclusion of the capital gain obtained as a result of the sale of a 15%
stake in the former subsidiary LLX to Ontario Teachers Pension Plan (OTPP).
As a result of the partial split-up of the Company, this amount is no
longer a MMX result. In the first semester of 2008 this effect is
nullified;
-- Shareholders' Equity of R$778 million at the quarter end.
MMX in Novo Mercado
MMX is listed on Bovespa’s Novo Mercado, under the ticker MMXM3. The
Company is included in the Special Corporate Governance Stock Index (IGC),
the differentiated tag along index (“ITAG”) and the Brasil Index
(“IBrX-100”). Shares are priced at unitary price and traded in units.
The capital stock is composed exclusively of common shares and minority
shareholders are entitled to the same treatment given to the controlling
shareholder in the eventuality of a control block trade (100% tag along
rights), as stated in the Company’s Bylaws.
On April 7, 2008, following the Company’s share split program, disclosed on
the IPO memorandum, the third split of the Company’s common shares was
approved, in the proportion of 20 shares for each existing share.
Therefore, the Company’s capital stock is now represented by 304,610
thousand shares.
By the end of the 2Q08 MMX’s free float reached 32.7%, represented by
approximately 2,500 shareholders participating in the Bovespa, of which
2,149 are individual investors.
MMX’s share price reached R$49.50 on June 30, 2008, corresponding to a
4.76% appreciation in the second quarter of 2008, a 5.3% appreciation in
2008 and 93% appreciation in 12 months. The market value reached R$15.1
billion.
In the second quarter of 2008, 45,751 thousand shares were traded in 38,747
transactions. MMX’s shares were present in 100% of the stock exchange’s
trading days, with a daily average of 605 transactions, 392% higher than in
the 1Q08, indicating an increase in the Company’s share liquidity.
MMX’s GDRs on the TSX
MMX is listed at the Toronto Stock Exchange (TSX) with its Level 1 Global
Depositary Receipts (“GDR”), since June 2007, under the ticker XMM. With
this initiative, MMX became the first Brazilian company to be listed in
Canada.
After the share split approved in April 2008, each MMX share, which
previously corresponded to 20 GDRs, now corresponds to 1 (one) GDR. On June
30, 2008, the GDRs represented 10.7% of the Company’s free float,
corresponding to 10,704 thousand common shares.
Subsequent Events
Acquisition of the Bom Sucesso Mining Right
On July 3, 2008, the Company, through an indirect subsidiary of MMX Sudeste
Ltda., concluded the acquisition of the Bom Sucesso mining right for US$193
million, to be paid in four installments, with maturity in January, 2010.
The Bom Sucesso site is a greenfield project to be developed by MMX.
With this acquisition, the MMX Sudeste System is now composed of the Serra
Azul Unit — consisting of the already operationally integrated AVG and
Minerminas companies — and the Bom Sucesso Unit. The Company expects the
MMX Sudeste System to reach an annual iron ore production capacity of 33.7
million tons as of 2013, as disclosed in the New Business Plan released in
a Public Announcement on July 24, 2008.
Result from End of the Withdrawal Rights Period
On July 22, 2008, MMX released a Notice to Shareholders announcing that no
shareholder exercised its withdrawal rights as a result of the partial
split-up (the “Partial Split-up”). The deadline for the above mentioned
withdrawal rights ended on July 21st 2008.
The shares of IronX, LLX and MMX began trading separately in the BOVESPA
Novo Mercado segment on July 28, 2008. The initial share price for each
company was calculated by multiplying the portion of the net worth of MMX
allocated to each company, according to the Appraisal Report prepared by
KPMG Auditores Independentes, by the July 25 closing price of R$43.50. The
trading started with an auction having the following prices as reference:
MMX: 42.78% x R$43.50 = R$18.61 LLX: 9.15% x R$43.50 = R$3.98 IronX: 48.07% x R$43.50 = R$20.91
Federal Police Investigation Process
On July 11, 2008, the Federal Police initiated an investigative process
carried out through a search warrant issued by the 1st Federal Court of
Macapá in MMX Amapá and MMS Logística. On July 23, 2008, MMX Amapá
clarified, through a notice to the market, that:
The Amapá Railroad (“EFA” or the “Railway”) was built in 1957 by Icomi
(part of the Caemi Group) and returned to the State of Amapá in 2004, after
an intense legal dispute that took place after the State of Amapá refused
to assume the operations of the railroad that was running with recurring
monthly losses and with poor maintenance conditions.
In this context, MMX Amapá accepted the burden to operate the Railway on an
emergency basis under a 6-month contract, upon the State of Amapá
committing to carry out a bidding process for the privatization of the
Railway, as determined by a court decision, and to include in the rules of
the tender the obligation of the Railway concessionaire to compensate MMX
Amapá for the investments made under the terms of the emergency contract.
MMX Amapá undertook to invest at least R$3 million in 6 months without any
contractual assurances or additional collateral from the State of Amapá,
and assumed the obligation to continue operating the Railway at a
continuing deficit.
Thereafter, the bidding rules were published by the State of Amapá. In
accordance with the rules the winning bidder would simply be the company
who made the highest offer for the purchase of the EFA concession. Seven
companies declared their interest to participate in the bidding process and
conducted a survey of the Railway’s facilities. However, on the bid date,
January 31, 2006, only one company, of the MMX group posted the required
bid bond at an amount of approximately US$1.6 million.
The bidding process for the EFA concession was twice challenged before
courts, and all challenges were turned down confirming the legality of the
bidding process.
Contrary to what was published by the media — that the bid had been
“influenced” by MMX Amapá — the concession would be awarded to whomever
bid the highest price for the concession, and all requirements and
guaranties demanded from the bidders were proportional to the
responsibilities from the future operator of the Railway, and there clearly
has not been any intention to exclude suitable competitors from the bidding
process.
The company of the MMX group that won the bid paid an acquisition price of
R$814 thousand for the EFA concession. In addition, MMX Logística
committed, as set forth by the bid rules, to make a minimum investment of
R$40.7 million during the first 2 years of the concession. The group’s
investments in the Railways to date have exceeded R$70 million, almost
double the minimum required by State. The EFA operates, until today, with
successive monthly deficits accumulating more than R$60 million of losses
to date.
Besides the investigation on the concession bid, there are investigations
concerning alleged offenses related to the evasion of federal taxes by MPBA
(through the sale of gold) and an “exchange of favors” that MPBA would have
engaged with certain companies indirectly related to the state government.
MPBA does not belong to the same group as MMX since January 2004. At that
time MPBA did not carry out the production of gold in the State.
After revising all documents related to the investigation, Anglo American’s
consultants, that company and Eike Batista, MMX’s and IronX’s controlling
shareholder, concluded the operation which led to Anglo American acquiring
control of IronX, the company that controls the Minas-Rio and Amapá Systems
iron ore projects.
In regards to the ongoing investigation in Brazil, Mr. Batista has offered
a personal indemnity, with no additional obligation on MMX, to cover any
potential losses that may be incurred by Anglo American Participações as a
result of the investigation. Anglo American Participações has accepted the
terms of the indemnity.
Anglo American Acquires the Control of IronX
On August 5, 2008, MMX, IronX Mineração S.A. (“IronX”) and Anglo American
Participações em Mineração Ltda. (“Anglo American”), announced to the
market that Anglo American has acquired all shares of IronX directly owned
by Mr. Eike Batista and certain other selling shareholders related to Mr.
Eike Batista (the “Acquisition”).
As a result of the Acquisition, Anglo American purchased, in cash, from Mr.
Eike Batista and the other selling shareholders 193,462,160 common shares
representing 63.3% of IronX’s capital stock for an amount of approximately
R$5.4 billion, representing a price of R$28.147 per common share of IronX.
Once the Acquisition has resulted in the transfer of control of IronX,
Anglo American will launch a tender offer for the common shares held by the
remaining IronX shareholders, in accordance with the terms and conditions
of article 254-A of the Brazilian Corporate Law, CVM Instruction No. 361
and item 8.1 of the Rules of the Novo Mercado issued by Bovespa (the
“Tag-Along Offer”), at the same IronX price-per-share paid to Mr. Eike
Batista and the other selling shareholders. The total purchase, including
the Acquisition, for 100% of the outstanding shares of IronX, if the
Tag-Along Offer is successful, will amount to approximately R$8.6 billion.
Furthermore, according to a formal communication filed by Anglo American at
the headquarters of the Company on March 31st, 2008, Anglo American intends
to implement, concurrently to the Tag-Along Offer, a public offer to delist
IronX and to withdraw IronX from the Novo Mercado segment of the Bovespa
(the “Delisting Offer”). If the valuation made according to the laws and
regulations applicable to the Delisting Offer reaches an amount per-share
that is higher than the per-share price paid to Mr. Eike Batista and the
other selling shareholders, Anglo American will decide whether or not to
proceed with the Delisting Offer. If Anglo American decides not to proceed
with the Delisting Offer it will nevertheless maintain and implement the
Tag-Along Offer.
To this extent, the current management of IronX has called an extraordinary
shareholders’ meeting to be held on August 18th, 2008, which will decide
upon, amongst other things, the (i) delisting of IronX from the Novo
Mercado segment, and the (ii) engagement of the financial institution or
specialized firm responsible for the preparation of the valuation report of
the economic value of the shares of the Company.
Comments regarding parent company performance include information regarding
future investments and mineral production volume outlook, which are not
part of the quarterly revision scope, and therefore, were not revised by
KPMG Auditores Independentes.
MMX Mineração e Metálicos S.A.
(Public Company)
Balance Sheet
as of June 30, 2008 and December 31, 2007
(In R$ '000)
Parent Company Consolidated
----------------------- -----------------------
Assets
6/30/08 12/31/07 6/30/08 12/31/07
Current
Cash and equivalents 393,235 368,931 528,579 1,424,938
Accounts Receivable - - 61,104 40,510
Inventories - - 140,826 153,968
Sundry advances 3,756 5,715 18,028 41,147
Recoverable taxes 31,102 23,118 43,606 36,479
Restricted Deposits 4,848 6,375 4,848 6,375
Contractual retention 11,438 42,992 11,438 42,992
Prepaid expenses 58 58 742 1,924
Accounts Receivable -
transfer of fixed
assets - 13,359 - -
Other receivables 140 6 577 1,368
----------- ----------- ----------- -----------
444,577 460,554 809,748 1,749,701
----------- ----------- ----------- -----------
Non Current
Long Term
Sundry advances - - 11,230 41,621
Recoverable taxes 223 124 23,891 47,877
Prepaid expenses 179 203 233 257
Judicial deposits 8 8 306 611
Subsidiaries and
associated companies 168,950 316,417 3,455 4,449
Loans to third party - - 2,887 2,774
Inventories - - 2,872 -
----------- ----------- ----------- -----------
169,360 316,752 44,874 97,589
----------- ----------- ----------- -----------
Permanent Assets
Investments 242,141 1,077,377 1,214 3,396
Intangible 604 810 619,014 744,746
Provision for
investment losses (9780) (9780) (9780) (9780)
Goodwill from the
acquisition of
subsidiaries 9,784 9,990 571,826 457,499
Mining rights and
concessions 600 600 52,013 285,156
Obligations related to
withdrawal of assets - - 4,955 10,101
Right of Way - - - 1,770
Fixed 39,155 16,698 370,618 1,115,104
Deferred - - 49,166 278,953
----------- ----------- ----------- -----------
281,900 1,094,885 1,040,012 2,142,199
----------- ----------- ----------- -----------
895,837 1,872,191 1,894,634 3,989,489
=========== =========== =========== ===========
MMX Mineração e Metálicos S.A.
(Public Company)
Balance Sheet
as of June 30, 2008 and December 31, 2007
(In R$ '000)
Parent Company Consolidated
----------------------- -----------------------
Liabilities
6/30/08 12/31/07 6/30/08 12/31/07
Current
Suppliers 8,987 15,351 40,593 129,116
Loans and Financing 754 548 333,263 701,900
Taxes and contributions
payable 4,106 13,594 27,580 61,420
Salaries and payroll 274 4,528 2,621 17,564
Provision for losses
from derivaties - - - 20,495
Investment acquisition
liabilities - - 144,549 149,192
Fixed assets
acquisition
liabilities - - - 12,004
Subsidiaries and
associated companies 1,211 682 544 2,851
Income tax and social
contribution payable - - 2,948 84,859
Provision for uncovered
liabilities 14,824 12,959 - -
Third party payables 78,906 78,906
Other liabilities 1,560 2,948 7,917 41,360
----------- ----------- ----------- -----------
110,622 50,610 638,921 1,220,761
----------- ----------- ----------- -----------
Non current
Long Term
Loans and Financing 6,823 7,909 108,069 388,239
Taxes and contributions
payable - - 511 972
Investment acquisition
liabilities - - 364,109 437,038
Obligation related to
withdrawal of assets
and reforestation - - 5,758 12,431
Provision for
contingencies - - 4,042 242
Fixed assets
acquisition
liabilities - 0
Results for future
years - - - 68,774
Other liabilities - - 804 3,776
----------- ----------- ----------- -----------
6,823 7,909 483,293 911,472
----------- ----------- ----------- -----------
Minority Interest - - (5,972) 43,584
----------- ----------- ----------- -----------
Shareholders' Equity
Capital stock 775,799 1,142,804 775,799 1,142,804
Profit Reserve - 670,868 - 670,868
Accumulated losses 2,593 - 2,593 -
----------- ----------- ----------- -----------
778,392 1,813,672 778,392 1,813,672
----------- ----------- ----------- -----------
895,837 1,872,191 1,894,634 3,989,489
=========== =========== =========== ===========
MMX Mineração e Metálicos S.A.
(Public Company)
Income of Statement
as of June 30, 2008 and 2007
(In R$ '000)
Parent Company Consolidated
----------------------- -----------------------
06/30/08 06/30/07 06/30/08 06/30/07
Gross operating revenue - - 269,862 50,551
Deductions - - (19,704) (601)
----------- ----------- ----------- -----------
Net operating revenue - - 250,158 49,950
Cost of goods sold and
services rendered - - (167,401) (38,486)
----------- ----------- ----------- -----------
Gross income (lost) - - 82,757 11,464
----------- ----------- ----------- -----------
Other operating revenue
(expenses)
Administrative and
general (34,128) (20,318) (65,738) (29,590)
Selling - - (69,031) (35,666)
Financial revenues 35,011 58,792 60,989 61,000
Financial expenses (552) (1,147) (45,898) (16,712)
Exchange rate variation,
net (889) 225 68,298 13,171
Equity result 14,566 (9,575) - -
Provision for uncovered
liabilities (11,415) - - -
Provision for the booking
of inventories at market
value - - 3,647 -
Goodwill amortization (27,827)
Other operating revenue
(expenses) - (12,174) 181 2,823
----------- ----------- ----------- -----------
Operating income (loss) 2,593 15,803 7,378 6,490
Non operating result - - 2,357 -
----------- ----------- ----------- -----------
Income (loss) before income
tax and social
contribution 2,593 15,803 9,735 6,490
----------- ----------- ----------- -----------
Income tax and social
contribution - (7,732) (10,621) (7,732)
Income (loss) before
minority interest 2,593 8,071 (886) (1,242)
----------- ----------- ----------- -----------
Minority interest - - 3,479 9,313
----------- ----------- ----------- -----------
Net income (loss) for the
period 2,593 8,071 2,593 8,071
----------- ----------- ----------- -----------
Net income (loss) per '000
shares - R$ - 1
=========== ===========
Number of shares at the end
of the period (per '000
shares) 7,608
=========== ===========
MMX Mineração e Metálicos S.A.
(Public Company)
Statements of Cash Flow
As of June 30, 2008 and 2007
(In R$ '000)
Parent Company Consolidated
----------------------- -----------------------
06/30/08 06/30/07 06/30/08 06/30/07
Cash flow from operating
activities
Net income (loss) for
the period 2,593 8,071 2,593 8,071
Items not affecting
working capital
Depreciation and
amortization 837 82 44,472 4,906
Equity result 14,566 9,575 - -
Provision for
uncovered
liabilities 1,865 12,174 - -
Monetary variation
and interest 11,047 (9,560) (36,449) (30,083)
Minority interest - - 131,389 49,780
Gain from change in
percentage of
interest held in
subsidiraries - - - -
Residual cost on
disposal of fixed
assets 15 - 45,762 3,804
Changes in assets and
liabilities
Increase in
contractual
retentions 31,554 104,539 31,554 104,539
Increase (decrease)
in restricted
deposits 1,528 (146) 1,527 (146)
Increase (decrease)
in inventories - - (1,959) (84,539)
Increase (decrease)
in accounts
receivable - (8,984) (36,190) (71,256)
Subsidiaries and
associated companies - - 561 -
Increase in other
credits 7,125 - (110,851) -
Increase (decrease)
in suppliers (6,365) (674) (28,206) 30,300
Increase in payable
income tax and
social contributions - - 42,852 -
Increase in payable
taxes and
contributions (9,488) - 8,098 -
Investment
acquisition
liabilities - - 39,169 -
Increase (decrease)
in other liabilities 73,263 10,812 (312) 540,006
Increase in
investment
acqusition
liabilities - - 39,116 -
Increase in future
results - - 288,502 -
----------- ----------- ----------- -----------
Net cash generated by
(used in) operating
activities 128,540 125,889 461,628 69,382
Cash flow from investing
activities
Credit from related parties
Acquiried loans (173,422) (204,517) - -
Settled loans 311,507 170,817 - -
Provision for losses with
derivatives - - (20,495) -
Acquisition for permanent
investments in other
companies (333,887) (147,222) (204,152) (9,780)
Decrease in the amount for
investment acquisition - - - (76,967)
Obligation related to
withdrawal of assets - - (1,360) -
Acquisition of permanent
assets (23,309) (557) (607,169) (361,985)
Write-off rights - - - 525
Acquisition of mining
rights - - 17,383 (11,027)
Additions to deferrred
assets - - (264,464) 51,764
----------- ----------- ----------- -----------
Net cash generated by
(used in) investing
activities (219,111) (181,479) (1,080,257) (407,470)
----------- ----------- ----------- -----------
Cash flow from financing
activities
Capital decrease, net (367,005) - - -
Decrease in profit
reserves (670,868) - - -
Loans and financing
Acquired loans - - 704,077 464,711
Settled loans (334) (10,038) (416,342) (158,033)
Debits with related parties
Acquired loans 57,230 - - -
Settled loans (58,911) - - -
----------- ----------- ----------- -----------
Net cash generated by
(used in) financing
activities (1,039,888) (10,038) 287,735 306,678
Net effect from split-up 1,154,763 - (565,465) -
----------- ----------- ----------- -----------
Statement of increase
(decrease) in the cash and
equivalents
At the beggining of the
period 368,931 727,843 1,424,938 779,212
At the end of the period 393,235 662,215 528,579 747,802
----------- ----------- ----------- -----------
Increase (decrease) in
cash and equivalents 24,304 (65,628) (896,359) (31,410)
=========== =========== =========== ===========
