Mineral Resources Limited · ASX:MIN
Mineral Resources — FY2017 Earnings Presentation
15 slides from Mineral Resources's earnings presentation, Aug 21, 2017
Slide 1: FY2017 Results Presentation Pack
For personal use only FY2017 RESULTS PRESENTATION PACK 1
Slide 2: The MRL Business
THE MRL BUSINESS For personal use only Innovative Mining Unique Value Focus on Increasing Services Provider Proposition Annuity Earnings S Experienced Track Record of Management Team Delivering High and Board Returns on Capital 2
Slide 3: The MRL Business: Mining Services and Commodity Projects
THE MRL BUSINESS For personal use only MINING SERVICES COMMODITY PROJECTS Mine Site Yilgarn Iron Valley Mt Marion Wodgina Commodity Iron Ore Iron Ore Spodumene DSO Production 5-6Mtpa 8Mtpa 400Ktpa 4-5Mtpa SITE SERVICES PROCESSING PORT SERVICES Ownership 100% 100% 43.1% 100% MINING TRANSPORT SALES EN
Slide 4: Commodity Profit Share Model
COMMODITY PROFIT SHARE MODEL For personal use only 1. Acquire/ Joint Venture 2. Development/ Build Own Operate 3. Optimise 4. Monetise 5. Services Contract 4
Slide 5: Safety Performance
SAFETY PERFORMANCE For personal use only 16 14.7 Total Recordable Injury Frequency Rate 14 12 10 8 7.2 5.97 6 5.5 4 2.32 2 0 FY13 FY14 FY15 FY16 FY17 5
Slide 6: FY17 Highlights
FY17 HIGHLIGHTS For personal use only Mining Services Commodities Iron Ore Iron Valley & Yilgarn • Equivalent crushing capacity 126Mt • Exports stable at 12.3Mt up 34% • Average achieved revenue $75.1/t • Strong customer retention • Second half impacted by increased • New external crushing plants in
Slide 7: FY17 Highlights: Lithium, Mt Marion and Wodgina
FY17 HIGHLIGHTS For personal use only Commodities Lithium Commodities Lithium Mt Marion Wodgina • Current JORC resources of 78Mt at • Current JORC resources of 198Mt: 1.37% Li • Hard rock : 176Mt at 1.20% Li • 156Kt 6% and 4% spodumene • Tailings : 22Mt at 0.98% Li produced • Atlas Iron operations c
Slide 8: FY17 Financial Performance
FY17 FINANCIAL PERFORMANCE For personal use only Revenue $1.46bn 24% EBITDA $464m 62% * NPAT $201m 83% * Diluted EPS 108 cps 91% * Dividends declared 54 cps 83% Operating cash flow before financing activities and tax $382m 8% Capex $228m 37% Cash in hand $378m 7% Net assets $1.13bn 12% Return on Inv
Slide 9: Strategic Priorities
STRATEGIC PRIORITIES For personal use only Grow Mining Services Sustainable Iron Ore Business • Growth target of 20% per annum Pilbara – 30 year horizon • All-6% Mt Marion plant modifications • Australia’s lowest cost producer: • Wodgina services contract • BOSS : 80% reduction haulage costs • DSO •
Slide 10: Strategic Priorities: Optimise and Monetise
STRATEGIC PRIORITIES For personal use only Optimise and Monetise Optimise and Monetise Mt Marion Wodgina • Continued optimisation of operations • DSO expected to continue at 4-5Mtpa • Upgrades to deliver 400Kt All-6% • Construct 500Kt 6% spodumene plant spodumene plant (currently 200Kt 6% with commi
Slide 11: Strategic Priorities: New Commodity Projects and Innovation
STRATEGIC PRIORITIES For personal use only New Commodity Projects Innovation Next round of development • Coking coal QLD • BOSS • Strategic partner with MRL-like • Gas / remote power culture • Carbon fibre structural components • Geographic location to introduce manufacturing facility: MRL supply ch
Slide 12: FY18 Outlook
FY18 OUTLOOK For personal use only EBITDA Minimum $500m Equivalent crushing capacity 130Mt Iron ore exported 13.3Mt Lithium DSO exported 4.25Mt Spodumene exported (MRL's share 43.1%) 400Kt 62% iron ore price US$65/dmt 6% spodumene price US$841/dmt FX 0.78 Capex (inc 500Kt Wodgina spodumene plant) $2
Slide 13: Questions
For personal use only QUESTIONS 13
Slide 14: Disclaimer
For personal use only 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
Slide 15: Office and contact details
For personal use only OFFICE: 1 Sleat Road, Applecross, WA 6153 PO. Locked Bag 3, Canning Bridge, www.mineralresources.com.au Applecross, WA 6153 P +61 8 9329 3600 F +61 8 9329 3601 15