MMX posts US$28.1mn profit for 2010, ups production by 48%

Brazilian iron ore company MMX (Bovespa: MMXM3) posted a net profit of 46.6mn reais (US$28.1mn) in 2010, reversing a net loss of 185mn reais in 2009. Gross revenues increased 132% to 785mn reais on iron ore sales that grew 53% to 7.18Mt last year. Ebitda totaled 121mn reais, compared to a negative Ebitda of 464mn reais in 2009. MMX's iron ore production increased 48% in 2010 to 7.68Mt. Output in the Sudeste system rose 43% to 5.87Mt, while the Corumbá system produced 69% more with 1.81Mt. "We have never performed so well. Today, MMX can resume its growth path to become a 46Mt/y iron ore producer, integrated and competitive in the export market, with strong cash flow generation," president Roger Downey said. The company is currently in the process of acquiring the Sudeste port, controlled by PortX, for US$2.2bn. The port is being designed to handle 50Mt/y of iron ore initially, but capacity can be expanded to 100Mt/y in a second phase. MMX is part of Brazilian magnate Eike Batista's EBX group. To read the full statement, in Portuguese, go to this link