Om Holdings Ltd. · ASX:OMH
Om — Investor Presentation (November 2014)
25 slides from Om's investor presentation, Nov 21, 2014
Slide 1: OM Holdings Limited Presentation (ASX cover letter)
OM HOLDINGS LIMITED For personal use only (ARBN 081 028 337) No. of Pages Lodged: 25 21 November 2014 ASX Market Announcements ASX Limited th 4 Floor 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam OM HOLDINGS LIMITED PRESENTATION Please find attached a copy of the investor presentation to be delive
Slide 2: Background Profile of OM Holdings Limited
BACKGROUND PROFILE OF OM HOLDINGS LIMITED OMH Holdings Limited (OMH) was listed on the ASX in March 1998 and has its foundations in metals trading – incorporating the sourcing and distribution of manganese ore products. For personal use only OMH is involved in mining manganese product in Australia a
Slide 3: Strengthening our Fundamentals
For personal use only 1 OM HOLDINGS LIMITED Strengthening our Fundamentals Strictly Privileged and Confidential
Slide 4: Disclaimer
2 DISCLAIMER For personal use only This presentation has been prepared and issued by OM Holdings Limited ARBN 081 028 337 (“OMH”). This presentation contains summary information about OMH. The information in this presentation does not purport to be complete or to provide all information that an inve
Slide 5: Company Overview / Project Highlights / Rationale / Update / Investment Highlights
For personal use only 3 COMPANY OVERVIEW PROJECT HIGHLIGHTS PROJECT RATIONALE PROJECT UPDATE KEY INVESTMENT HIGHLIGHTS
Slide 6: OMH Profile
4 OMH PROFILE For personal use only OMH, together with its subsidiaries (the OM Group), is engaged in the business of the exploration and mining of manganese ore, production of manganese ferroalloys and sinter ore, and the marketing and trading of ores and ferroalloys. OMH’s primary market is in Eas
Slide 7: Company Overview: A world-class miner and alloy smelter
5 COMPANY OVERVIEW A world-class miner and alloy smelter For personal use only Exploration & Mining Ferroalloy Smelting Marketing & Trading Exploration Smelting (China) Equity Sales (Singapore, ◦ Bootu Creek and Regional ◦ OM Qinzhou: Production China) capacity of 80k MT manganese ◦ Ore, Sinter, All
Slide 8: Company Overview: Globally integrated manganese and ferroalloy company
6 COMPANY OVERVIEW A globally integrated manganese and ferroalloy company listed on the ASX For personal use only AUD Vol OMH ASX (rebased) Million 0.7 14.0 12.0 0.6 10.0 0.5 8.0 6.0 0.4 4.0 0.3 2.0 0.2 0.0 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Major Shareholders % Stake Trading Statistic
Slide 9: Company Overview / Project Highlights / Rationale / Update / Investment Highlights
For personal use only 7 COMPANY OVERVIEW PROJECT HIGHLIGHTS PROJECT RATIONALE PROJECT UPDATE KEY INVESTMENT HIGHLIGHTS
Slide 10: Project Highlights: Strategic Alloy Investment in Malaysia
8 PROJECT HIGHLIGHTS Strategic Alloy Investment in Malaysia For personal use only Raw Materials Power Smelting ◦ Ready access to mature and ◦ 500 MW hydroelectric power ◦ Malaysia’s opportunity to untapped raw material sources supply from Syarikat Sesco Bhd, a become Asia’s new lowest-cost- for quar
Slide 11: Project Highlights: Ferrosilicon and Manganese Alloy Smelter
9 PROJECT HIGHLIGHTS NATURE OF PROJECT Ferrosilicon and Manganese Alloy Smelter For personal use only Phase 1 Ferrosilicon: 16 sets of 25.5 MVA furnaces Phase 2 Manganese alloy: 200k to 300k MT capacity LOCATION Samalaju Industrial Park, Sarawak, Malaysia ECONOMIC CORRIDOR - Sarawak Corridor of Rene
Slide 12: Company Overview / Project Highlights / Rationale / Update / Investment Highlights
For personal use only 10 COMPANY OVERVIEW PROJECT HIGHLIGHTS PROJECT RATIONALE PROJECT UPDATE KEY INVESTMENT HIGHLIGHTS
Slide 13: Project Rationale: Meeting growing demand on the world market
11 PROJECT RATIONALE Meeting growing demand on the world market For personal use only Ferrosilicon and Manganese industry basics ◦ Ferrosilicon (FeSi) is a raw material used in the steelmaking process to deoxidize molten steel. It is used predominantly in the production of automotive and electrical
Slide 14: Paradigm shift in the global alloy industry
12 PROJECT RATIONALE Meeting growing demand on the world market For personal use only Paradigm shift in the global alloy industry ◦ The alloy industry is experiencing significant power cost increases in all major traditional alloy production centers – China, Russia, India, South Africa, Korea, and B
Slide 15: A cost-efficient supplier: Access to competitive hydro power
13 PROJECT RATIONALE A cost-efficient supplier to the steel industry For personal use only Access to competitive and reliable hydro power ◦ 20 year Power Purchase Agreement: competitive price, fixed price escalation schedule, reliable supply ◦ OM Sarawak’s power supply is largely provided by the alr
Slide 16: Strategic location and logistical advantage
14 PROJECT RATIONALE A cost-efficient supplier to the steel industry For personal use only Strategic location and logistical advantage ◦ Sarawak is strategically located in the middle of the global seaborne steelmaking raw material supply route in Asia, and is in close proximity to the major markets
Slide 17: Strategic location and logistical advantage: Ports
15 PROJECT RATIONALE A cost-efficient supplier to the steel industry For personal use only Strategic location and logistical advantage ◦ The Project is located on the coastline, approximately 7 km away from the new Samalaju port. The new Samalaju port will have a dedicated private berth with a draft
Slide 18: Trending FeSi global imbalance, stability in steel fundamentals
16 PROJECT RATIONALE Trending FeSi global imbalance, stability in steel fundamentals For personal use only Ferrosilicon Production vs Consumption 1 Global Crude Steel Production (‘000 MT) 2 (‘000 MT Si content) 450 1,800 60 1,600 400 40 1,400 20 350 1,200 1,000 0 300 800 -20 250 600 -40 400 200 Q1 Q
Slide 19: Company Overview / Project Highlights / Rationale / Update / Investment Highlights
For personal use only 17 COMPANY OVERVIEW PROJECT HIGHLIGHTS PROJECT RATIONALE PROJECT UPDATE KEY INVESTMENT HIGHLIGHTS
Slide 20: Project Update: Site Plan
18 PROJECT UPDATE Site Plan For personal use only Plant A Workshops: A1 to A3 Plant B Workshops: B1 to B5
Slide 21: Project Update: Site Overview
19 PROJECT UPDATE Site Overview For personal use only
Slide 22: First production achieved on 22nd September
20 PROJECT UPDATE First production achieved on 22nd September For personal use only
Slide 23: Project Update: Phase Timeline
21 PROJECT UPDATE Phase 1 Timeline For personal use only 1Q2012 2Q2012 1Q2013 2Q2013 3Q2013 3Q2014 2Q2015 Signed Power Received Secured project Executed EPC Project Finance Commencement Expected full-scale Purchase Environmental finance of USD215m contract with financial close of first p
Slide 24: Company Overview / Project Highlights / Rationale / Update / Investment Highlights
For personal use only 22 COMPANY OVERVIEW PROJECT HIGHLIGHTS PROJECT RATIONALE PROJECT UPDATE KEY INVESTMENT HIGHLIGHTS
Slide 25: Key Investment Highlights
23 KEY INVESTMENT HIGHLIGHTS For personal use only 1. Attractive market with stable demand growth while supply is constrained 2. A globally integrated manganese and ferroalloy company listed on the ASX Vertically integrated business model across the entire value chain: 3. Exploration → Mining → Smel