Mineral Resources Limited · ASX:MIN
Mineral Resources — FY2012 Earnings Presentation
28 slides from Mineral Resources's earnings presentation, Aug 16, 2012
Slide 1: 2012 Full Year Result
For personal use only 2012 Full Year Result Peter Wade, Executive Chairman Bruce Goulds, Chief Financial Officer August 2012
Slide 2: Mineral Resources Limited
Mineral Resources Limited For personal use only Service Provider Minerals Producer Process Minerals Crushing Services PIHA Polaris Metals Mesa Minerals (64% owned) & Minerals and base metals Australia’s largest specialist Pipeline, services, site Specialist Iron Ore Auvex Resources processing, logis
Slide 3: About Mineral Resources
About Mineral Resources For personal use only Mineral Resources Limited is a Western Australian, publicly listed, ASX 200 company (ASX:MIN) with a market cap approximately $1.5 billion (at 14/8/12). Employs in excess of 1,500 people. Largest Australian specialist contract crushing, materials handlin
Slide 4: Strategic positioning
Strategic positioning For personal use only • Contracted business with strong companies (Rio Tinto, BHP, Fortescue, Atlas Iron, Sound Market Newmont, KCGM) provides the core component of revenue Position • Significant barriers to entry for other players to enter sites and begin competing • Leading i
Slide 5: Corporate & operational highlights
Corporate & operational highlights Mining services business For personal use only Crushing operations exceeding target outcomes Christmas Creek 2 construction on track PIHA business strong Strong pipeline of opportunities Commodity business First iron ore sales from Carina Mining commences at Poonda
Slide 6: Safety - our number one value
Safety - our number one value For personal use only MRL Lost Time Injury Frequency Rate (LTIFR) performance compared to like industry average 12 10 8 6 4 2 0 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 De
Slide 7: CSI Plant Experience
CSI Plant Experience For personal use only Growth of operation CSI has a world renowned reputation with a proven ability to design, construct and operate client focussed crushing, screening and processing solutions Organic growth of its contract crushing business through repeat business and new clie
Slide 8: Christmas Creek BOO contract
Christmas Creek BOO contract +19 mtpa state of the art For personal use only production operation Construction complete and plant operations performing to target Capacity increase in progress 8
Slide 9: Christmas Creek
Christmas Creek 2 For personal use only 10 year, $1 billion+ BOO contract awarded 4 July Construction programme, progressive commissioning from July 2012 25 mtpa plant configuration: – Remote primary crushing station – 7 km overland conveyor – Scrubbing & wet screening circuit – 25mtpa crushing & sc
Slide 10: Christmas Creek
For personal use only Christmas Creek 2
Slide 11: Drafting Capability
Drafting Capability For personal use only Advanced 3D review capability Placeholder animation of CC1 Picture of constructed assembly 3D model – design review 11 11
Slide 12: Operational Update – PIHA
Operational Update – PIHA Framework agreements with For personal use only biggest names in the utilities and infrastructure, civil contracting, mining, oil and gas industries State of the art manufacturing facilities at high level of utilisation Traditional work ongoing in Australia and SEA region D
Slide 13: Pipeline operations
Pipeline operations WIP continues at strong For personal use only levels Major local and international companies calling on PIHA expertise to support development projects Contracting opportunities won and being pursued in new industries (CSG, natural gas) Strong mine developments focus for PIHA 13
Slide 14: Operational Update - PMI
Operational Update - PMI For personal use only Phil’s Creek development (iron ore) First tenement developed from purchase of Central Pilbara tenements from Iron Ore Holdings Preliminary pit development mining in progress Construction of site infrastructure well underway Logistics arrangements awaiti
Slide 15: Camp development
Camp development For personal use only Camp development Existing MRL owned and operated camp accommodation at Carina, Phil’s Creek, Nicholas Downs, Ant Hill, with total in excess of 450 beds under management. 500 bed accommodation village at Port Hedland planned for commencement in 2013 Increased de
Slide 16: Pilbara iron ore tenements
Pilbara iron ore tenements Phils Creek mining proposal For personal use only approval imminent Planning in advanced stages for early production Long lead equipment sourced Logistics arrangements developed awaiting approvals 16
Slide 17: Mining Operations
Mining Operations Polaris Metals “POL” For personal use only A junior iron ore mine operator and exploration company Key milestones: Portfolio of iron ore assets including 6,000 km2 of tenements in WA Operating asset at Carina in Western Australia, commenced operation in November 2011, mining and pr
Slide 18: Export volume growth
Export volume growth For personal use only 8 7 6 million tonnes 5 4 3 2 1 0 2009 2010 2011 2012 2013F Utah Point KBT2 ‘000 tonnes 2009 2010 2011 2012 Iron Ore . Utah Point 375 875 2,259 2,004 . KBT2 - - - 1,759 . Total 375 875 2,259 3,763 Manganese 275 428 449 269 TOTAL 650 1,303 2,708 4,032 % incre
Slide 19: Operational Update – Carina Iron Ore Project
Operational Update – Carina Iron Ore Project For personal use only Infrastructure construction complete $44 million upgrade of existing port (permanent crusher & stockyard) facilities, June quarter shipments of 797,431 Increased shiploading capacity from tonnes, up 6% from previous quarter 500tph to
Slide 20: Carina Iron Ore Project
Carina Iron Ore Project For personal use only 20
Slide 21: Exploration programme
Exploration programme For personal use only • Exploration within the greater Yilgarn area to schedule mine development • North West tenements drilling programme in 2012/13 • Mine development programme is focus of operational drilling • Touch all tenements in FY2013 21
Slide 22: Financial history (since listing)
Financial history (since listing) Revenue EBITDA For personal use only 1000 350 900 300 800 700 250 $ millions $ millions 600 200 500 400 150 300 100 200 50 100 0 0 2007 2008 2009 2010 2011 2012 FC 2007 2008 2009 2010 2011 2012 FC Net Assets Operational Cash Flow 1000 300 900 800 250 700 200 $ milli
Slide 23: FY 2012 Financial Highlights
FY 2012 Financial Highlights For personal use only Revenue and EBITDA growth; Strong results in PMI, CSI and PIHA contracting earnings with all areas Strong Financial benefiting from new and existing business growth performance Increased iron ore export volumes (2.7mt in FY11 compared to 4.0mt in FY
Slide 24: Financial performance
Financial performance $AUD millions 2012 2011 % change For personal use only Revenue 925.9 609.5 +52% EBITDA 294.3 235.5 +25% NPAT 242.2 150.5 +61% NPAT (normalised) 177.1 137.2 +29% EPS 132.2 89.7 +47% Net Assets 916.8 627.5 Net Cash (110.8) 78.6 Funds Employed 1,027.6 549.1 Operational Cash flow 2
Slide 25: Cash flow
Cash flow For personal use only $AUD millions 2012 2011 EBITDA 294.3 235.5 CAPEX (including funded items) (427.6) (198.4) Net Interest Payments (1.4) (0.3) Income Taxes Paid (48.0) (1.6) Working Capital and Other 46.4 (2.6) Net Operating and Investing cash flow (136.3) 32.6 Dividends paid (75.3) (46
Slide 26: Strategy & Basis For Future Growth
Strategy & Basis For Future Growth For personal use only Affirm the strategy To build sustainable diversified processing and mining services and commodities businesses, through, Providing a safe work environment for our people Success in winning and undertaking profitable contracts Expansion of comm
Slide 27: Growth & market perspective
Growth & market perspective For personal use only Demand and pricing of iron ore continues to be volatile due to outside factors Manganese pricing & volumes to recover, although uncertainty continues Ongoing AUD / USD impacts revenue and profit for commodities Infrastructure a key element of product
Slide 28: Disclaimer
Disclaimer For personal use only 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