Southern Alliance Mining Ltd. · SGX:QNS
Southern Alliance Mining — Investor Presentation (September 2021)
24 slides from Southern Alliance Mining's investor presentation, September 2021
Slide 1: Southern Alliance Mining Ltd. - A Deep Dive into the Iron Ore Suppliers of Tomorrow
SOUTHERN ALLIANCE MINING LTD. A DEEP DIVE INTO THE “IRON ORE SUPPLIERS OF TOMORROW” SEPTEMBER 2021
Slide 2: Corporate Overview
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Slide 3: Company Overview
Company Overview Incorporated in 2001, we have grown to a S$489m iron ore mining company At a Glance FY2021 Financials RM387.4 million Revenue 6.3 million tonnes RM148.1 million Net Profit after Tax Involved in the exploration, mining, Headquartered in Pahang, Malaysia with Total iron ore production
Slide 4: Company Overview: Track Record
Company Overview >20 years of track record in the iron ore mining industry in Southeast Asia Diversified our Incorporation of product portfolio to Contractor upgraded Southern Alliance Entered into a Joint subsidiary, Honest include iron ore their plant to produce Mining Pte. Ltd. was Venture to exp
Slide 5: Experienced Management Team
Company Overview Experienced Management Team Dato’ Teh Teck Tee Dato’ Sri Pek Kok Sam Lim Wei Hung Non-Executive Chief Executive Officer & Chief Financial Officer Non-Independent Chairman Executive Director ç • Co-founder of the Company • Co-founder of the Company • Over 21 years of experience in fi
Slide 6: Iron Ore Mining Assets
Iron Ore Mining Assets Long-term mining leases allow us to expand our exploration activities Operating Open Pit Mine Exploration Projects Chaah Mine Mao’kil Mine Mining lease expiry date Mining leases expiry date 22 March 2024 7 July 2023 27 April 2026 JOHOR Area Area 225.7 hectares 22.3 hectares 15
Slide 7: Mining Process and Products
Mining Process and Products Our mining process allows us to serve both steel & pipe coating companies We are one of the dominant market leader in pipe coating materials Products Customers • Pipe coating • Pipe coating companies materials • Iron ore concentrate • Steel mills in Malaysia (62%-65% Fe)
Slide 8: Mining Equipment Fleet
Mining Equipment Fleet Equipment Model Number Description Excavator Caterpillar 390D 4 Ore and waste movement Excavator Caterpillar 385B 1 Back-up excavator Excavator Caterpillar 349D 2 Ore and waste movement Excavator Caterpillar 336 2 Ore and waste movement Excavator Caterpillar 390F 2 Ore and was
Slide 9: Our Plant Capacity
Our Plant Capacity Operating parameters of both our plants HSM Plant XHM Plant Operating Parameters Unit 1 x shift 2 x shift 1 x shift 2 x shift Processing Rate t/hr 150 150 135 135 Process recovery: Fe % 60.3 60.3 58 58 Head grade % 51 51 43.1 43.1 Concentrate purity % 65 65 62 62 Yield (calculated
Slide 10: Chaah Mine Overview
CHAAH MINE OVERVIEW The Open Pit at Chaah Mine
Slide 11: Reported Reserves & Valuation
Reported Reserves & Valuation Excellent conversion rate from Indicated Mineral Resources to Ore Reserves Total Iron Ore Mineral Resources as at 31 July 2021 Total Iron Ore Reserves as at 31 July 2021 Million Grade (%) Change in Grade (%) Category Million Change in Tonne tonne (%) Category Fe SiO2 Al
Slide 12: Product Reconciliation
Product Reconciliation Excellent reconciliation between resource model and production statistics Source June 2014 to July 2019 August 2019 to July 2020 August 2020 to July 2021 Total Mineral Resource Model (Indicated 3.37 Mt 0.83 Mt 1.06 Mt 5.26 Mt and Inferred) SAM adjusted production statistics 3.
Slide 13: Reliable Resource Models
Reliable Resource Models Our resource estimates are reliable & have translated to actual monetary results Extracted Ores undergoing Crushing and Processing Activities Tailings/Waste: Part of them were sold during FY2021 Reported Resources at Reported Resources at 31/07/2020 31/07/2021 Tonnage: 98,40
Slide 14: Macro Environment in FY2021
MACRO ENVIRONMENT IN FY2021
Slide 15: Iron Ore Price Trend
Iron Ore Price Trend Prices have hit decade highs as demand continues to outweigh supply Iron ore prices fell due to the Chinese government’s tightening of steel output and the closure of a key Price (US$/t) port terminal 230 210 190 Strong demand momentum from China 170 coupled with supply disrupti
Slide 16: Market Enablers for Iron Ore
Market Enablers for Iron Ore Continued supportive macroeconomic conditions for iron ore Continued strong demand from Fiscal stimulus to boost the Increased demand from SEA China commodities market countries and tepid supply • China’s iron ore imports were • Widespread stimulus • Investments on infra
Slide 17: Financial Performance
FINANCIAL PERFORMANCE
Slide 18: FY2021 Group Financial Performance
FY2021 Group Financial Performance Increase in ARSP of iron ore concentrate boosted Group’s revenue In RM millions 400 387.4 Strong growth in revenue driven by the following factors 350 • Higher average realised selling price of iron ore concentrate in 300 FY2021 due to the rally in iron ore price i
Slide 19: FY2021 Group Financial Performance
FY2021 Group Financial Performance Record gross profit and net profit on the back of strong industry fundamentals Gross Profit and Gross Margin Net Profit and Net Profit Margin In RM millions In RM millions 250 53.7% 60% 150 148.1 50% 50% 200 208 40% 38.2% 30% 100 30% 150 20% 10% 100 10% 50 0% -10%
Slide 20: FY2021 Group Financial Performance
FY2021 Group Financial Performance Strong financial position with high cash and bank balances and low borrowings 450 400 85.9 366.6 350 300 227.5 250 200 164.2 67.1 345.4 150 75.9 84.8 93.9 100 188.0 92.3 50 78.4 104.7 43.5 36.0 0 FY2017 FY2018 FY2019 FY2020 FY2021 Current Assets Non-Current Assets
Slide 21: Share Price Performance
Share Price Performance Strong share price performance backed by record high iron prices Sing Cents 1.6 1.4 1.2 0.99 1 0.8 0.6 0.4 0.2 Source: Bloomberg
Slide 22: Business Strategy & Future Plans
BUSINESS STRATEGY & FUTURE PLANS
Slide 23: Business Strategies and Future Plans
Business Strategies and Future Plans Continue to expand our exploration activities and diversify our business Expand exploration Investment into equipment and Acquisition of new mines rights activities infrastructure & diversification of business To carry out further exploration • To purchase more m
Slide 24: Thank You
THANK YOU For more information, please contact: Romil Singh / Shivam Saraf at romil@financialpr.com.sg / shivam@financialpr.com.sg. Tel: +65 6438 2990
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