Om Holdings Ltd. · ASX:OMH
Om — Shareholder Meeting (May 2006)
26 slides from Om's shareholder meeting presentation, May 26, 2006
Slide 1: OM Holdings Limited AGM Presentation cover letter
OM HOLDINGS LIMITED (ARBN 081 028 337) No. of Pages Lodged: 26 26 May 2006 Company Announcements Office Australian Stock Exchange Limited 4" Floor 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam AGM PRESENTATION Please find attached a copy of a presentation to be delivered by Mr Paul Chapman on beha
Slide 2: Background Profile of OM Holdings Limited
BACKGROUND PROFILE OF OM HOLDINGS LIMITED OMH which was listed on the ASX in March 1998 has its foundations in metals trading — incorporating the sourcing and distribution of manganese ore products and subsequently in processing ores into ferro-manganese intermediate products. In the immediate futur
Slide 3: OMH - An Overview, Annual General Meeting
OM HOLDINGS LTD ASX Code: OMH Website: www.omholdingslitd.com OMH — An Overview Annual General Meeting 26 May 2006
Slide 4: Forward looking statements
This presentation may contain forward looking statements that are subject to risk factors associated with commodities businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions
Slide 5: Overview
* Overview * Marketing * Manganese Operations — Qinzhou Ferro-alloy Smelter — Bootu Creek Manganese Mine * Summary
Slide 6: Singapore based commodity house
* Singapore based commodity house — ASX listing, March 1998 * China focussed marketing division — Ores, alloys, metals * Integrated manganese producer — Qinzhou Ferro-alloy Smelter — Bootu Creek Manganese Mine
Slide 7: Group structure
thootu Greek . Manganese Mine Manufacturing Territory Iron Ltd Qinzhou Ferro-alloy Marketing (t 8.3%) ASXIATFE Singapore Liaoyang Marketing & Logistics Boron Alloy (54%)
Slide 8: Issued Capital
Issued Capital « Listed ordinary 136.3m * Unlisted options 5.6m 141.9m Major Shareholders * Institutions 30% * Strategic partners 5% * Board/management 25% * Top 20 shareholders ~75% Market Capitalisation ~$150m
Slide 9: Revenue, Net Profit After Tax and Dividends
Revenue Net Profit After Tax Dividends BR A$ Millions BNONAHRON 2001 2002 2003 2004 2005 june Half [yy Dec Half Continuous dividends since 1998 2000 2001 2002 2003 2004 2005
Slide 10: Marketing services and core products
Mm shanghal * Services ® tong Kong * Core Products
Slide 11: Services and products
+ Services — Source materials for Chinese buyers — Logistics, credit & product management — Fee for service, not a position taker - Products — Ores: manganese, chrome, iron — Alloys: manganese, chrome, silicon, ferro-silicon / boron — Metals: stainless scrap, zinc ingots ¢ New business — Newrelation
Slide 12: Chrome, iron and manganese ore markets
* Chrome ore — Improved chrome & ferrochrome prices «Iron ore — Territory lron, trial of Indian product — Positive price outlook * Manganese ore — Supply ~ 20% of China’s Mn ore — Destocking, prices soft but steady — Price improvement expected post June — Expected medium term range US$2.50-3.00
Slide 13: Qinzhou smelter: overview, expansion, competitive advantage
mbeling * Overview * Expansion | scr tons * Competitive Advantage
Slide 14: Overview
* Overview — Investment to date ~US$7 million — Significant appreciation in land value , — Three furnaces - 55k tpa ferro alloy — Power constrained until early 2007 * Shanghai Shenjia Joint Venture — Large ferro-alloy smelter & marketer — OMH 70% — Agreement mid 2006, expansion 2007 140k tpa at mini
Slide 15: Significant competitive advantage
Jeean OulE _ RoReA @eeiing * Significant competitive advantage 2 — Power cost & availability ee @ Hong Kong — Inland freight differentials
Slide 16: Overview, Operations, Finance, Growth
* Overview ® lenpant Creek * Operations ® Alice Springs - Finance AUSTRALIA Growth
Slide 17: Bootu Creek Manganese Mine
OM HOLDINGS LIMITED BOOTU CREEK MANGANESE MINE
Slide 18: Mining
Mining - Good consistency & widths - Ore stocks ~2 months - Shekuma pit optimisation underway - Pit sequencing under review
Slide 19: Processing
* Processing — Plant completed — Performing to expectation — Availability improving Excellent product quality (>45% Mn)
Slide 20: Product, logistics and first shipment
550-600k toa @ 45% manganese product « Road, rail, port — All tested ¢ First shipment — Early June 2006 — 245% Mn, 30kt lump
Slide 21: A$ per Tonne costs
A$ Tonne 180 160 140 120 100
Slide 22: EBITDA (Steady State) and sensitivities
¢ EBITDA (Steady State) — US$2.50 Mn unit @ 0.7500 $22m pa — US$2.75 Mn unit @ 0.7500 $30m pa * Manganese Price — +/- US$0.10 $3.4m pa ¢ Diesel Fuel — +/- 10 cents $1.2m pa ¢ Exchange Rate & Hedging — +/- 1 cent $1.1m pa — Options @ 0.7450 (US$8m) — Forwards @ 0.7295 (US$10m) CBA Project Finance A$2
Slide 23: Exploration
* Exploration Target: double resource base, >10year life of mine 20,000 metres / $2 million Shekuma resource ~ T 20% Chugga encouraging drilling Tourag commenced Helicopter EM (27 strike kms)
Slide 24: Expansion option
¢ Expansion option to 1 million tpa — Parallel drum plant, accommodation, logistics — Incremental cost ~A$10 million, requires feasibility study ¢ Timing — Expanded resource base — Market conditions
Slide 25: Summary
* Marketing — China focused, extensive networks * Integrated manganese producer — Bootu Creek in production — Price improvement expected ¢ Growth opportunities — Quinzhou expansion, underway — Exploration program, early successes — Expansion option
Slide 26: OMH - An Overview, Annual General Meeting
OM HOLDINGS LTD ASX Code: OMH Website: www.omholdingslitd.com OMH — An Overview Annual General Meeting 26 May 2006