MMG Ltd. · HKEX:1208
MMG — 121 Mining Conference 2014
12 slides from MMG's conference presentation, Oct 16, 2014
Slide 1: Management Strategies for 'Transformational' M&A
Management Strategies for ‘Transformational’ M&A 16 October 2014 Michael Nossal Executive General Manager – Business Development HKEx: 1208
Slide 2: Important Information
Important Information The information contained in this presentation is intended solely for your personal reference and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organisation/firm) or published, in whole or in part,
Slide 3: MMG – the story so far
MMG - the story so far AA wena IMIIVIG OO +*MMG is formed following *Trading, fabrication China Minmetals Non- and cownsea “MG ed into ferrous acquisition of the W . - an ag enter nt to majority of OZ Minerals teebeams bac March 2012 purchase the Las ass _ . ” ' December | metals assets. | acquired
Slide 4: East West: Formation – a unique model
Formation – a unique model Insights on the largest metals market EAST Access to long term patient capital Outward looking culture International management team WEST Aiming for best practice operations ICMM membership 4
Slide 5: Big Ambitions: Mandate and Method
Big Ambitions Vehicle for CMN offshore base metals Mandate A leading mid-tier within 3-5 years Eventually a major resources house Best out of existing assets Method Exploration and project development Transformational M&A 5
Slide 6: MMG's growth strategy (from 2009)
MMG’s growth strategy (from 2009) Our growth strategy is focused on: Identifying opportunities to extract potential from our existing assets. Pursuing organic growth opportunities through our projects and exploration pipelines. Pursuing external growth such as targeting value-focused acquisiti
Slide 7: 'Transformational' M&A Success factors
‘Transformational’ M&A Strategy Success Targeting/ideas factors Team (internal and external) Proactive Transaction Event driven Types Opportunistic 7
Slide 8: 2011 Bid for Equinox – did not succeed
2011 Bid for Equinox – did not succeed Targeted since 2009 Proactive Built stake over one year Catalyst of market activity Dangers of unwelcome bid Lessons Importance of price discipline $150m profit 8
Slide 9: Kinsevere – Event Driven
Kinsevere — Event Driven nse ANA
Slide 10: Las Bambas - Opportunistic
Las Bambas - Opportunistic 10
Slide 11: Earning the right to grow
Earning the right to grow Safety Production Results 8 Copper production EBITDA US$ TRIFR per one million hours ‘000 tonnes 6 188 114% 751 56 4 2009 2013 Zinc production 6.3 ‘000 tonnes 4.8 350 4.1 2 3.0 2.4 600 2009 2013 267 0 2009 2010 2011 2012 2013 TRIFR is total recordable injury frequency rate.
Slide 12: We Mine for Progress
WE MINE FOR PROGRESS A