MMX Drops After Santander Says Port Start Challenging: Rio Mover

MMX Mineracao & Metalicos SA (MMXM3), the iron-ore producer controlled by Brazilian billionaire Eike Batista, fell to the lowest closing price since 2009 after Banco Santander SA said the company has work to do before its Sudeste port is operational.

MMX, based in Rio de Janeiro, dropped 3.1 percent to 4.70 reais at the close in Sao Paulo, the lowest since April 2, 2009. The stock has fallen 30 percent this year.

MMX’s target of April for the first iron-ore shipment from the Sudeste port “looks challenging,” Santander analysts Felipe Reis and Alex Sciacio in Sao Paulo said in a note to clients today after visiting the terminal located in Rio state.

“We had expected to see more advanced works at the Sudeste port than we actually saw,” the analysts said. “Civil works are still being completed at the port, and equipment assembly is in the very preliminary stages.”

To contact the reporter on this story: Juan Pablo Spinetto in Rio de Janeiro at jspinetto@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

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