MMX’s Financing Plans Won’t Change as New CEO Takes Charge
MMX Mineracao & Metalicos SA, the iron-ore producer controlled by Brazilian billionaire Eike Batista, said the company’s financing plans won’t change after Guilherme Escalhao was named to replace Roger Downey as chief executive officer.
MMX, based in Rio de Janeiro, is working to get funding for its Serra Azul project and expects to use credit lines from Brazil’s BNDES and other development banks, Escalhao said on a conference call with analysts late yesterday.
“We have a good chance of passing through this process without dramatic changes,” Escalhao said. He will go to South Korea to hold talks with banks, he said.
MMX will have $1.8 billion in loans for its Serra Azul project completed before year-end, Downey said in an interview Aug. 11. Downey, 44, a former mining equity analyst at Credit Suisse Group AG, has been MMX’s CEO since August 2009. Guido Germani was named to replace Escalhao as chief financial officer, MMX said yesterday.
The reason for his resignation is “exclusively personal,” Downey said during the same conference call. He said he wants to “live life a little bit slower, closer to my family.” He plans to remain a shareholder in the company.
A former executive of Vale SA (VALE5), Escalhao has been CFO of MMX since January. He trained in business administration at the Rio de Janeiro-based Getulio Vargas Foundation and has more than 25 years of experience in the mining industry, MMX said in a press release yesterday.
MMX rose 3.5 percent to 7.10 reais in Sao Paulo yesterday. The stock has dropped 37 percent this year, almost double the 20 percent decline of Vale, the world’s largest iron-ore producer.
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