Slide 1: Half Year 2017 Results Presentation
HALF YEAR 2017 RESULTS PRESENTATION 16 FEBRUARY 2017
Slide 2: Agenda
AGENDA 1 Highlights 2 Operational Performance 3 Financial Performance 4 Growth Priorities and Innovation 5 Guidance Update
Slide 3: Highlights
HIGHLIGHTS • Revenue of A$783m up 36% on previous corresponding period (pcp) Financial • EBITDA of A$282m up 112% on pcp • Cash balance of A$389m, and net cash position of A$86m • Strong balance sheet and excess of A$400m finance facilities to support further growth • Fully franked interim dividend
Slide 4: Operational Trends
OPERATIONAL TRENDS Installed Crushing Capacity (millions tonnes per annum) 135 120 105 106 94 90 75 60 45 30 15 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F ex. FMG FMG Actual data Forecast Commodity Commodityexports exports data (millions (millions tonnesper tonnes perannum) annum) 1414 13.
Slide 5: Financial Trends
FINANCIAL TRENDS MRL share price movement since July 2015 Financial Summary 2013 2014 2015 2016 1H2017 ($millions) Total Revenue 1,097 1,899 1,299 1,178 783 EBITDA 383 554 283 286 282 NPAT 180 243 109 110 140 Return on Revenue 16.4% 12.8% 8.4% 9.3% 17.9% Return on Equity 17.7% 21.3% 10.1% 10.9% 25.0
Slide 6: Mining Services
MINING SERVICES Annuity style earnings Transactional earnings • Completed works on Nammuldi Below Water • Increased equivalent crushing capacity Table Expansion Phase 2 (EPC construction by 13% pcp to 106Mt (94Mt in 1H contract) FY16) • Expand growth strategy from EPC model to • Strong customer rete
Slide 7: Commodity Business
COMMODITY BUSINESS Profit share earnings Platts 62% Fe Index by month Iron Ore Month Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 • Iron Ore export volumes increased 14% pcp to record 6.7Mt A$/wmt • Average achieved revenue increased per tonne to A$79.30/wmt Platts 62% Fe 72.0 75.7 71.2 72.8 91.7 103.2
Slide 8: Safety & Environment
SAFETY & ENVIRONMENT Best practice safety and environmental performance Safety • We have achieved outstanding safety performance over the past 5 years • Our in-house designed programs have seen us develop over 500 of our people with the skills required to be effective safety professionals • The Lost
Slide 9: Profit and Loss
Profit and loss statement PROFIT AND LOSS Profit & Loss ($ million) 1H FY16 1H FY17 • Revenues of $783m up 36% and EBITDA of $282m up Revenue 577.2 782.7 112% on pcp as a result of: Other income 11.2 1.7 • increased commodity exports, • higher iron ore prices, Operating Costs (445.6) (502.9) • incre
Slide 10: Cash Flow
CASH FLOW Cash Flow 1H FY16 1H FY17 • Temporary working capital outflow of ($ million) $100m in the half year from: EBITDA 132.8 281.6 • Price driven increases in iron ore PLS shares issued - (50.0) receivables ($72m) from Dec increase in Movt in working capital (ex. Construction) 28.9 (100.6) Platt
Slide 11: Balance Sheet
BALANCE SHEET Balance Sheet 30-Jun-16 31-Dec-16 ($ million) Current assets Cash and cash equivalents 407.3 388.7 Trade and other receivables 83.3 176.4 • Cash balance of $388m plus substantial Inventories 80.0 90.1 portion of $400m of syndicated debt facilities Other current assets 15.9 13.5 availab
Slide 12: Growth Priorities and Innovation
GROWTH PRIORITIES AND INNOVATION 1 Growth of existing business Mining services Profit share projects Mt Marion (profit share) Wodgina (profit share) • 20% growth in build own • Multiple opportunities at • First export completed. • Site acquired in FY16 operate contract capacity various stages of eva
Slide 13: Growth Priorities and Innovation: Innovation in supply chain
GROWTH PRIORITIES AND INNOVATION 2 Innovation in supply chain Remote Power Carbon Fibre • MRL’s remote power • On target for first tray by solution successfully April 2017. Commercial installed and operating at manufacturing planned at Mt Marion with cost rate to be determined savings realised • Inc
Slide 14: Growth Priorities and Innovation: Innovation in supply chain continued
GROWTH PRIORITIES AND INNOVATION 2 Innovation in supply chain continued BOTS / BOSS Road Transport • Ready to trial suitable • Super quad haulage project application in iron configuration now in place ore operations delivering $5/tonne cost and efficiency • Project development improvements slowed wi
Slide 15: FY17 Financial Guidance
FY17 FINANCIAL GUIDANCE • EBITDA guidance for FY17 of between A$480m and A$520m (increased 25% from previous guidance of A$380m to A$420m) • Key assumptions 62% CFR iron ore to average US$70 per dry tonne Average AUD/USD of 0.75 Lower grade iron ore will continue to attract substantial discoun
Slide 16: Appendix – Business Overview
APPENDIX – BUSINESS OVERVIEW 16
Slide 17: MRL Overview
Profit and loss statement MRL OVERVIEW Founded in 1993, Mineral Resources (MRL) is a leading and highly Innovative mining innovative full-service provider of mining infrastructure services in services provider Australia MRL provides innovative and low cost Pit to Port solutions across Unique value t
Slide 18: Mining Services
Profit and loss statement MINING SERVICES MRL delivers integrated infrastructure services across the mining supply chain Mining supply chain Port Site services Mining Processing Transport Sales services • Remote, mine-site • Mine scheduling • Crushing and mineral • Road & rail logistics • Port logis
Slide 19: Unique Value Proposition
Profit UNIQUE VALUE and loss statement PROPOSITION “Partner with selected clients to deliver innovative high quality and cost efficient mineral processing and mining infrastructure Pit to Port solutions” Global leader in design and technology • Proven track record of innovative designs for crushing,
Slide 20: Profit Share Model
Profit PROFIT SHARE MODELand loss statement MRL is uniquely positioned to benefit from profit share partnerships MRL’s profit share model - stages in the cycle Benefits of profit share model • MRL targets undeveloped resource assets 1. Attractive financial returns over the cycle Acquire / joint that
Slide 21: Disclaimer / Competent Person's Statement
Disclaimer This presentation has been prepared by Mineral Resources Limited (“MRL” or “the Company”).It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. N