Mineral Resources Limited · ASX:MIN
Mineral Resources — H1 2012 Earnings Presentation
24 slides from Mineral Resources's earnings presentation, Feb 16, 2012
Slide 1: 2012 Half Year Result
For personal use only 2012 Half Year Result Peter Wade, Executive Chairman Bruce Goulds, Chief Financial Officer February 2012
Slide 2: Agenda
Agenda For personal use only About Mineral Resources Highlights Operational performance Financial performance Strategy, issues and outlook 2
Slide 3: Mineral Resources
Mineral Resources For personal use only Service Provider Minerals Producer Process Minerals Crushing Services PIHA Polaris Metals Mesa Minerals Minerals and base metals Australia’s largest specialist Pipeline, services, site Specialist Iron Ore (64% owned) processing, logistics, ship BOO crushing, s
Slide 4: 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 5: Financial highlights
Financial highlights For personal use only Record first half year net profit $80.5 million, up 33% Fully franked interim dividend of 16.0 cents declared DRP available for interim dividend Cash balance - $145 million Net cash position - $19 million NTA per share increased to 385 cents from 313 cents
Slide 6: Safety - our number one value
Safety - our number one value For personal use only MRL Lost Time Injury Frequency Rate (LTIFR) 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 Dec-11 LTIFR Industry Average Industry Average S
Slide 7: Carina iron ore project
Carina iron ore project Mining operations progressing For personal use only Pit establishment and ongoing mine planning shows ore grade and volumes as expected Further infrastructure construction nearing completion (air strip, sealed road, permanent crusher, stockyard) Market acceptance of product q
Slide 8: Carina iron ore project
Carina iron ore project For personal use only 8
Slide 9: Kwinana Berth upgrade
Kwinana Berth 2 upgrade For personal use only Major construction activity completed Additional port efficiency measures under construction Logistics chain established Shipping schedules are established and operating 9
Slide 10: 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 10
Slide 11: 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 11
Slide 12: 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 13: Christmas Creek (construction to date)
Christmas Creek 2 (construction to date) For personal use only
Slide 14: 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 14
Slide 15: Export volumes
Export volumes For personal use only ‘000 tonnes Half Year Half Year Half Year FULL Year Dec 2010 Jun 2011 Dec 11 Jun 12 Actual Actual Actual Forecast Iron Ore 1,301 958 1,515 Manganese 224 225 187 TOTAL 1,525 1,183 1,702 4,200 15
Slide 16: Financial performance
Financial performance For personal use only Revenue $403 million, up 19% on corresponding half Record half year result $80.5 million, up 33% on corresponding half Balance sheet enhanced and continues to strengthen Record CAPEX of $212 million, internally funded Additional projects may require extern
Slide 17: Financial history
Financial history For personal use only NPAT 160 140 120 100 $ million 80 60 40 20 - 2006 2007 2008 2009 2010 2011 2012 Half Net Assets Revenue 900 700 800 600 700 500 600 $ million 500 $ million 400 400 300 300 200 200 100 100 - - 2006 2007 2008 2009 2010 2011 2012 Half 2006 2007 2008 2009 2010 201
Slide 18: Financial performance
Financial performance For personal use only $AUD millions HY Dec 11 HY Dec 10 % change Revenue 408.8 344.3 +18.7% NPAT 80.5 60.6 +32.8% EPS 44.4 36.4 +22.0% $AUD millions Dec 11 Dec 10 % change Net Assets 780.1 568.7 Net Cash 18.6 66.2 Funds Employed 761.5 502.5 +51.5% Operational Cash flow 143.0 58
Slide 19: Balance sheet strength
Balance sheet strength For personal use only $AUD millions Dec 11 Jun 11 Jun 10 Jun 09 Jun 08 Total Assets 1,263.2 970.0 844.8 288.9 223.6 Total Liabilities (483.0) (342.6) (359.1) (144.0) (107.6) Net Assets 780.1 627.5 485.7 144.8 116.0 Net Cash Position 18.6 78.4 88.2 (11.6) 21.5 Funds Employed 76
Slide 20: Operational cash flow
Operational cash flow For personal use only $AUD millions HY Dec 11 HY Dec 10 EBITDA 143.1 100.9 CAPEX (including funded items) (212.5) (79.4) Net Interest Payments 0.8 (0.9) Income Taxes Paid (29.8) (12.2) Working Capital and Other 24.1 (35.6) Net Operating and Investing cash (74.3) (27.2) flow Div
Slide 21: 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 22: Growth & market perspective
Growth & market perspective For personal use only Demand and pricing of iron ore continues to be strong, albeit volatile due to outside factors Manganese pricing & volumes to recover, although uncertainty will continue for some time Ongoing AUD / USD impacts revenue and profit for commodities Infras
Slide 23: Summary
Summary For personal use only Record half year result Development projects on time and within budget Completion of major phase of development for Yilgarn mining Exploration programme continues Organic growth across all operations Abundant corporate opportunities Balance sheet and cash position in go
Slide 24: 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