Om Holdings Ltd. · ASX:OMH
Om — Investor Presentation (October 2010)
30 slides from Om's investor presentation, Oct 13, 2010
Slide 1: Record production to be outlined at Bootu Creek investor briefing
OM HOLDINGS LIMITED (ARBN 081 028 337) For personal use only NO. OF PAGES LODGED: 30 13 October 2010 Company Announcements Office ASX Limited 4th Floor 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam RECORD PRODUCTION TO BE OUTLINED AT BOOTU CREEK INVESTOR BRIEFING PRESENTATION Please find attached
Slide 2: Background profile of OM Holdings Limited
BACKGROUND PROFILE OF OM HOLDINGS LIMITED For personal use only 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 processing ores into ferro-manganese intermediate products. The OM
Slide 3: Investor visit to Bootu Creek
For personal use only Investor visit to Bootu Creek Strategy and Production Update – 13 October 2010 1
Slide 4: Disclaimer Notice
Disclaimer Notice For personal use only This presentation contains certain forward-looking information and forecasts. Such forecasts, projections and information are not a guarantee of the Group future performance and include unknown risks and uncertainties. Accordingly, the actual results and devel
Slide 5: OMH Fundamentals
OMH Fundamentals For personal use only 1 A globally integrated pure-play manganese business 2 OMM: A world class resource and optimised production strategy 3 OMQ: A strategically located smelter and sinter plant 4 OMS: A unique marketing capability into China 5 Growth platform: Mining - Participatio
Slide 6: OMH – Q3 Highlights
OMH – Q3 Highlights Operations For personal use only OMM record Q3 2010 production of 228kt ore (87kt in September 2010) OMQ record Q3 2010 production of 18kt alloy and 49kt sinter Strong OMS Q3 2010 shipments and sales, IFE exclusive sales and marketing agreement concluded, long-term NFE marketing
Slide 7: OMH – Q4 Outlook
OMH – Q4 Outlook Operations For personal use only OMM – Q4 2010 production forecast of 250kt and cash cost forecast of ~A$4/dmtu FOB, offset by the impact of strengthening AUD OMQ – alloy and sinter production interruptions are expected during the quarter due to Guangxi power supply restrictions OMS
Slide 8: Our business today – an integrated value chain
Our business today – an integrated value chain For personal use only Third Party Trading and Agencies – Mn Ore and Alloy , Iron Ore , Chrome Bootu Creek Marketing, Trading Asian Manganese Mine & Logistics Steelmaking Raw Australia Singapore Material Customers Qinzhou Alloy Smelter China 6
Slide 9: Changing Market Dynamics and OMH strategic response
Changing Market Dynamics and OMH strategic response For personal use only External environment changes: • robust Chinese steel production forecast underpinned by strong fundamentals • permanent reduction in Chinese manganese alloy exports and steady decline in Chinese domestic manganese ore supply •
Slide 10: Vision and Strategy
Vision and Strategy Long term Short term Medium term For personal use only Strategic supplier of steel Top 3 manganese producer Leading manganese producer making raw materials Operating Projects and Organic Growth OMM – 1Mtpa production + Helen and Renner Springs exploration OMQ – 40kt Mn alloys
Slide 11: Business Plan timetable
Business Plan timetable 2009 2010 2011 For personal use only 2012 Bootu operating strategy Optimised production strategy – 42/38/35% grades 250ktpa SPP plant 1Mtpa ore production capacity Organic + Growth Sinter Plant Phase 1 300kt Sinter Capacity 600ktpa Sinter Capacity 15 year mine life Hel
Slide 12: OM Manganese (Bootu Creek, Australia)
For personal use only OM M anganese (Bootu Creek, Australia) M anganese Ex ploration and M ining
Slide 13: OMM Q3 2010 Production Highlights
OMM Q3 2010 Production Highlights Sept 10 YTD June 10 Sept 09 Unit Qtr 2010 Qtr Qtr For personal use only Mining Q3 2010 – record production 228kt Total Material Mined bcms 3,075,673 8,494,918 2,983,208 3,163,539 Ore Mined - tonnes dt's 588,315 1,528,094 519,471 457,880 July 2010 - 65,667 tonnes
Slide 14: OMM Q3 2010 Production Highlights – unit costs
OMM Q3 2010 Production Highlights For personal use only Q3 2010 cash unit cost - $4.29/dmtu C1 Unit Cost / dmtu A$/dmtu September 2010 cash cost - 7.00 6.00 A$3.91 /dmtu 5.00 4.00 Q4’10 cash cost forecast - 3.00 A$4.00/dmtu 4.74 4.45 4.29 2.00 3.91 <4.00 1.00 Improved plant availability rate
Slide 15: OM Materials (Singapore)
For personal use only OM M aterials (Singapore) M arketing, Trading, Distribution 13
Slide 16: OMS strategic and tactical focus
OMS strategic and tactical focus For personal use only Equity product marketing and third party trading: • Bootu ore sales • Third party manganese ore, manganese alloys, iron ore and chrome • Managing the China logistics and distribution network Key China/Asia agencies: • NFE – agency and principal
Slide 17: OMS China Mn Distribution Network
OMS China Mn Distribution Network For personal use only Jilin Inner Mongolia Tianjin Port Hebei Ningxia Shanxi Gansu Henan Jiangsu Sichuan Hunan Guizhou Yunnan Guangxi Qinzhou Port
Slide 18: OM Materials (Qinzhou) China
For personal use only OM M aterials (Qinzhou) China Sm elting/ Sintering/ Dom estic distribution
Slide 19: OMQ Production Update - Alloy
OMQ Production Update - Alloy For personal use only H1 2010 alloy production Q1 2010 alloy production – 4,196 tonnes Q2 2010 alloy production – 9,958 tonnes Q3 2010 alloy production record alloy production of 17,719 tonnes, two furnaces running on full capacity Q4 2010 alloy production f
Slide 20: OMQ Production Update - Sinter
OMQ Production Update - Sinter For personal use only Sinter Plant Phase 1 300,000mt completed in December 2009 and commissioned in March 2010 with internally funded capex of US$18m H1 2010 production 5,649 tonnes in Q1 2010 and 34,352 tonnes in Q2 2010 Q3 2010 sinter production 48,625 to
Slide 21: Connecting the dots – the OMH 'flow'
Connecting the dots – the OMH ‘flow’ Alloy Alloy For personal use only Agency Spot sales trading production sales OMQ own Third Party Trading consumption OMQ Sinter Sinter Alloy production and sales + ore distribution production sales South China Stockpile ore sales OMM OMS North China Ore productio
Slide 22: Tshipi Manganese Project
For personal use only ´ Tshipi M anganese P roject
Slide 23: Tshipi Manganese project
Tshipi Manganese project For personal use only In March 2010 OM Holdings successfully concluded a 26% A$64m investment in Ntsimbintle which is the owner of 50.1% of the Tshipi Manganese Project Jupiter Mines (JMS) 49.9% OM Holdings Tshipi é Ntle 26% Other investors Ntsimbintle 74% 50.1%
Slide 24: Tshipi Manganese project – The Facts
Tshipi Manganese project – The Facts For personal use only Located in South Africa’s Kalahari basin, home of 80% of the world’s high grade manganese ore resource 163 million tonne resource (compliant under SAMREC (2007) Code) of carbonaceous high grade ore, over 60 year mine life at 2mtpa production
Slide 25: Tshipi Manganese Project – Progress to date
Tshipi Manganese Project – Progress to date For personal use only Tshipi Borwa (previously Tshipi) and Tshipi Bokone (previously Wessels) Section 11 applications to transfer the respective mining rights to Tshipi e Ntle (from Ntsimbintle) have been approved by the Minister of Mineral Resources Conti
Slide 26: The SEA Smelting Feasibility
For personal use only The SEA Sm elting Feasibility 24
Slide 27: Changing Manganese industry dynamics in China
Changing Manganese industry dynamics in China For personal use only China a net importer of alloys for the first time China’s decreasing domestic manganese ore production 70 150% 60 125% China share of global production (%) 50 100% 46 Production (Mt) 40 39 44 46 75% 38 30 46% 41% 50% 36% 30% 20 36%
Slide 28: The next generation of Manganese smelters and refineries
The next generation of Manganese smelters and refineries For personal use only Investigating an integrated low-cost alloy production centre in SEA to support the growing Asian steel industry Manganese Ore Power Smelting + Sintering + Bootu Creek (Australia) Power 2nd major cost in SEA’s opport
Slide 29: Why consider a smelting plant in SEA?
Why consider a smelting plant in SEA? For personal use only 1. Rapidly changing market dynamics and production economics in traditional alloy exporting countries - especially China 2. Competitively priced and reliable power supply 3. Zero import duty and export tax on Manganese ores and alloys 4. We
Slide 30: OMH – a unique investment proposition
OMH – a unique investment proposition For personal use only Mining Marketing Benefitiation Australia Cash Flow China and Dividends SEA South Africa Balance Sheet 28