Mineral Resources Limited · ASX:MIN
Mineral Resources — Shareholder Meeting (November 2019)
33 slides from Mineral Resources's shareholder meeting presentation, Nov 20, 2019
Slide 1: Annual General Meeting
Annual General Meeting November 2019 1
Slide 2: Contents
01 Key Headlines 3 02 FY19 Performance Highlights 4 03 FY19 Mining Services Performance 8 04 FY19 Commodities Performance 9 CONTENTS 05 FY20 Outlook 10 05 Project Development 16 06 Sustainability 21 07 Innovation & Infrastructure 26 2
Slide 3: FY19 Key Headlines
FY19 Key Headlines • Created one of the World’s top 5 lithium Lithium • Wodgina & Mt Marion construction projects completed businesses • Raised $2.2 billion cash through an Iron Ore unsecured bond & the Wodgina sell down • Koolyanobbing iron ore was successfully re-started • Developing a 10 year Yil
Slide 4: Safety Performance Summary
Safety Performance Summary Lost Time Injury Frequency Rate (LTIFR) Total Recordable Injury Frequency Rate Workforce (TRIFR) 1.32 3,746 14.52 2,558 3.61 0 FY13 FY13 FY13 FY14 FY15 FY16 FY17 Oct FY20 FY14 FY15 FY16 FY17 Oct FY20 FY14 FY15 FY16 FY17 FY19 FY18 FY18 FY18 FY19 7,972,659 3,700+ 0.00 3.61 H
Slide 5: FY19 Financial Performance Summary
FY19 Financial $1,512m $858m Performance Revenue Capex & Summary Investments $433 $269m EBITDA Operating Cash (normalised) Flow $205m ROIC 9.7% NPAT (normalised) Return on Invested Capital 5 5
Slide 6: Creating value for Shareholders
Creating value FY19 for Shareholders 44cps $94m Dividends declared Total Dividends Paid Since listing: • Maintained 50% dividend policy • Distributed $860m (or 169% of FY07-FY19 total equity issued) back to shareholders in form of fully 15% $18.58 franked dividends Earnings per share Total growth Sh
Slide 7: Creating value for our community
Creating value for our community Our Economic Contribution Major 3,700+ contributor Direct jobs Community donations & support Creating value for our economy $124m $265m Taxes, royalties & Total wages & other payments benefits paid Notes: 7 7
Slide 8: FY19 Mining Services Performance
FY19 Mining Services Performance Crushing Processing Contract Mining • Crushing business continued to run well • Mt Marion upgrade project complete - • Mined 44.4Mt on MRL and joint venture operating at steady state production projects • Client retention extremely high – no loss of contracts • Three
Slide 9: FY19 Commodities Performance
FY19 Commodities Performance Mt Marion Wodgina Koolyanobbing Iron Valley • 378Kt spodumene • First ore produced from train 1 • Commenced operating and • Running at steady state: concentrate delivered exported 3.2Mt iron ore 7.4Mt shipped • 13Kt of spodumene • 272Kt of 6% concentrate produced • Curre
Slide 10: FY20 Outlook
FY20 Outlook 10
Slide 11: FY20 Mining Services Outlook
FY20 Mining Services Outlook Aiming to double production & revenue over the next 3 years Crushing Processing Contract Mining • Expect crushing business contract • Mt Marion production expected between • Total tonnes mined will increase in volumes to grow more than 20% this 360Kt and 380Kt excess of
Slide 12: FY20 Commodities Outlook
FY20 Commodities Outlook Mt Marion Wodgina Koolyanobbing Iron Valley Marillana • Increased strip ratio for • Construction and • Focus is on production • Focus on maintaining • 6 month test drilling next 18 months commissioning of all 3 increase to 11Mtpa run production as dewater & programme to furt
Slide 13: FY20 Guidance
FY20 Guidance PROFIT SHARE COMMODITY PROJECTS Koolyanobbing Iron Valley Mt Marion Wodgina Spodumene Spodumene Commodity Iron ore Iron ore concentrate concentrate Ownership 100% 100% 50% 40% 8.5 – 9.0Mt 6.0 – 6.5Mt 360 – 380Kt Exports1 Care & maintenance 40% Lump product 40% Lump product 70% SC6 prod
Slide 14: FY20 Guidance – Capital Expenditure
FY20 Guidance – Capital Expenditure • The partial sale of Wodgina has released US$820 million for Item $m $m reinvestment Sustaining capital • MRL has subsequently allocated additional capital to reduce Deferred strip and other 60 the cost of iron ore operations in the Yilgarn region, and to Iron Va
Slide 15: Investment philosophy
Investment philosophy Capability and track record • 26 year heritage has created a strong culture of accountability and focus on detail • Strong, proven track record in identifying investment opportunities and generating outstanding returns from them Marillana Koolyanobbing Iron Valley • In-house ex
Slide 16: Project Development
Project Development 16
Slide 17: Wodgina Lithium Transaction
Wodgina Lithium Transaction • Revised Albemarle transaction completed on 1 November 2019 and a joint venture was established: • 60% Albemarle: 40% MRL • MRL transferred 60% interest in Wodgina Lithium Project to Albemarle • Albemarle transferred a cash payment of US$820 million • MRL received 40% in
Slide 18: Wodgina Lithium Project Operation
Wodgina Lithium Project Operation • MARBL JV placed the Wodgina Lithium Project on care and maintenance on 1 November 2019 • Transition to care and maintenance expected to take 4 weeks • Decision made in recognition of challenging global lithium market conditions and to preserve value of world-class
Slide 19: Iron Ore in the Yilgarn
Iron Ore in the Yilgarn Koolyanobbing • Initially took over operation expecting 6Mtpa for 5 years Yilgarn Tenement Portfolio • Developing long life mine based on a production rate of 11Mtpa • Current resource of 108Mt in region with 87Mt of measured indicated resource • Resources of 36.2Mt at Parker
Slide 20: Perth Basin
Perth Basin • 6,600 square kilometers of highly prospective acreage in the Perth Basin • Adjacent to 3 of the largest onshore conventional gas discoveries within Australia in the last 5 years • Red Gully conventional gas production facility on care and maintenance – requires additional wells to brin
Slide 21: Sustainability
Sustainability 21
Slide 22: Sustainability
Sustainability • During FY19, undertook a detailed materiality review and identified 6 key sustainability performance indicators • Applied the Global Reporting Initiative Standards and obtained independent external assurance for the first time • Full sustainability report is available on our website
Slide 23: Innovating towards a lower carbon economy
Sustainability Innovating towards a lower carbon economy FY19 • Solar PV at our Perth facilities avoided 635 tonnes of carbon dioxide equivalent emissions (tCO2e) • Reduced our reliance on diesel by installing gas fired power at our Mt Marion and Wodgina sites and a Battery Energy Storage System (BE
Slide 24: Sustainability: People
Sustainability People • Value all people and ensure all have equal opportunity to be part of us for the long term • Active Diversity and Inclusion Programme • Reviewed parental leave allowances and increased our paid parental leave to 16 weeks • Total of 27 apprentices - largest intake of apprentice
Slide 25: Sustainability: Community
Sustainability Community • We support the local community through a wide range of sponsorships, scholarships and donations • Our focus is on health & wellbeing, education and employment initiatives and people in need • 8 long-term partnerships • Contributed to over 40 organisations in FY19 25
Slide 26: Innovation & Infrastructure
Innovation & Infrastructure 26
Slide 27: Infrastructure: Pilbara Infrastructure Project
Infrastructure Pilbara Infrastructure Project • Next six months, finalise the following: • Line and level for rail system • All approvals • State agreement • Study work for the Port & Stockyard 27
Slide 28: Infrastructure: Bulk Ore Shuttle System (BOSS)
Infrastructure Bulk Ore Shuttle System (BOSS) • BOSS project is progressing – slower rate than anticipated • Still finalising several issues around third party verification and detailed engineering designs • Anticipate 6 months to complete this stage • Can not commence procurement or test track deve
Slide 29: Innovation: Crushing & Processing
Innovation Crushing & Processing • MRL has designed a 15Mt NextGen crushing and screening plant • MRL and Metso have formed a joint venture to develop and market the plant • 8 weeks to mobilise to site & commission • Low capital cost & low operating cost • Aiming to install 1st unit on site Q2 2020
Slide 30: Innovation: Carbon Fibre Technology
Innovation Carbon Fibre Technology • Developed a carbon fibre manufacturing facility producing structural members • Manufactured four 150Mt dump truck trays and field testing on-site • Next 12 months: • Durability trials to understand wear rates • Ongoing optimisation of both tray and workshop • Com
Slide 31: Innovation: Synthetic Graphite
Innovation Synthetic Graphite • Developed a successful synthetic graphite pilot plant • Produced 96% Total Graphitic Content • Product certification process underway • Study to determine most economic size plant to build for commercial production • Hydrogen gas by-product 31
Slide 32: Disclaimer
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 to those securities.
Slide 33: www.mrl.com.au
OFFICE: 1 Sleat Road, Applecross, WA 6153 POSTAL: PO Locked Bag 3, Canning Bridge LPO, Applecross, WA 6153 P +61 8 9329 3600 F +61 8 9329 3601 www.mrl.com.au 33
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