Om Holdings Ltd. · ASX:OMH
Om — Investor Presentation (February 2012)
16 slides from Om's investor presentation, Feb 8, 2012
Slide 1: Investor Presentation cover letter to ASX
OM HOLDINGS LIMITED (ARBN 081 028 337) For personal use only No. of Pages Lodged: 16 8 February 2012 Company Announcements Office ASX Limited 4th Floor 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam INVESTOR PRESENTATION Please find attached a copy of a presentation to be delivered by the Chief Exe
Slide 2: Background Information on OM Holdings Limited
BACKGROUND INFORMATION ON OM HOLDINGS LIMITED OMH listed on the ASX in March 1998 and has its foundations in metals trading – incorporating the sourcing and distribution of manganese ore products and subsequently in For personal use only processing ores into ferro-manganese intermediate products. Th
Slide 3: February 2012 investor update
For personal use only February 2012 investor update 1
Slide 4: Disclaimer
For personal use only DISCLAIMER IMPORTANT INFORMATION This presentation has been prepared and issued by OM Holdings Limited (“OMH”). This presentation contains summary information about OMH and is dated 8 February 2012. The information in this presentation does not purport to be complete or to prov
Slide 5: Proposed share placement transaction
Proposed share placement transaction For personal use only Boustead Singapore Limited – 50m shares at $0.35/share1 • World class partner with a proven track record • Strong strategic alignment • Operational synergies – downstream processing, engineering, project management • Geographic focus – South
Slide 6: Resource intensive drivers continue to drive China's steel production
Resource intensive drivers continue to drive China’s steel production For personal use only Chinese crude steel production growth continues: • 2010 avg 52Mt/month Chinese New Year • 2011 avg 57Mt/month Growth drivers expected to remain: • Strong underlying domestic steel demand • Industrialisation,
Slide 7: China manganese ore imports
China manganese ore imports For personal use only Key drivers: • 2011 ore imports at record ~ 13m tonnes • Strong underlying demand for high grade ores • High grade/low cost (Tier 1) producer market share expected to increase at the expense of low grade/high cost (Tier 2 and 3) segments • Seaborne h
Slide 8: The evolution of China's Mn ore port inventory
The evolution of China’s Mn ore port inventory Port stock growth ‘justified’ as seaborne ore displaces domestic ore For personal use only Months of port stock - consumption adjusted 6 Emission control measures and smelter closures 3-4 months 2008 5 3-4 months • Port stocks at average 1.8m tonnes • R
Slide 9: Manganese Ore spot price history
Manganese Ore spot price history For personal use only Key drivers: Manganese price trends not correlated with iron ore, coking coal – same demand drivers but own supply side issues Lowest cost seaborne tonnes pricing the market Pressure on high(er) cost (production/ logistics/ currency driven) seab
Slide 10: OMH strategic focus
OMH strategic focus For personal use only Building a world class Manganese company & extracting maximum value across the value chain Manganese Exploration and Mining Ferro Alloy Smelting Marketing & Trading Exploration China Equity sales Bootu Qinzhou – HCFeMn and Marketing agencies sinter for the d
Slide 11: Robust 2012 Operating Strategy
Robust 2012 Operating Strategy For personal use only • Revised 2012 low cost operating strategy Bootu • December 2011 production - 89kt @ A$3.19/dmtu cash cost, January 2012 production (indicative) – 100kt @ below Creek A$3.0/dmtu cash cost • Budgeted positive operating cash flow for 2012 at current
Slide 12: Balance Sheet and Capital Management Strategy
Balance Sheet and Capital Management Strategy For personal use only Debt • Restructuring of current US$90m loan facility • Proposed Boustead and New Institutional Investor share placement Equity • On-going evaluation of a range of equity and debt financing options with respect to the funding of the
Slide 13: Investment Portfolio Review
Investment Portfolio Review For personal use only NFE • NFE’s ‘strategic review’ process in progress (iron ore) • Marketing agency relationship on-going SCR • Exited shareholding in January 2012 (iron ore) SRR • Under review (Mn) MOX/AXE • On-going until end 2012, to be followed by evaluation of exp
Slide 14: 2012 Growth Project Execution
2012 Growth Project Execution For personal use only • Project capital fully funded, project expected to be on time and on budget • Remaining Tshipi capex of approximately A$19m expected to be funded from 2012 operating cash flows Tshipi • H2 2012 first production expected • OMH marketing participati
Slide 15: Tshipi (South Africa) investment case
Tshipi (South Africa) investment case For personal use only • World class mine in the world’s largest manganese field • Planned 2.4mtpa lowest cost quartile production capacity • 60+ year high grade carbonate Manganese ore resource Tshipi • ZAR1.7bn capex (approx. US$200m), fully funded by its share
Slide 16: OM Sarawak (Malaysia) investment case
OM Sarawak (Malaysia) investment case For personal use only • Company and industry transforming project producing 600ktpa of silicon based steelmaking ferro alloys • Lowest cost quartile silicon based ferro alloy producer located close to captive hydro power, input raw materials and end-user markets