Mineral Resources Limited · ASX:MIN
Mineral Resources — H1 2018 Earnings Presentation
16 slides from Mineral Resources's earnings presentation, Feb 8, 2018
Slide 1: FY18 Half Year Results Investor Presentation
For personal use only FY18 Half Year Results Investor presentation Chris Ellison Managing Director 8 February 2018 MINERAL RESOURCES LIMITED 1
Slide 2: Agenda
Agenda For personal use only 1 Financial performance 1H FY18 2 Track record of delivering shareholder value 3 World-class safety performance 4 Operational performance 1H FY18 5 Where we are going 2H FY18 6 Long-term pipeline of projects and business development MINERAL RESOURCES LIMITED 2
Slide 3: Financial performance 1H FY18
Financial performance 1H FY18 For personal use only Revenue Diluted EPS Net assets $962m 22% ~70cps*** 25% $1.24bn 9% EBITDA Dividends Return on invested 8% declared 19% capital $250m*** 25cps* 21%*** NPAT Operating FY18 financial 26% cash flow 69% guidance confirmed $131m*** $221m** EBITDA >$500m *
Slide 4: Track record of delivering shareholder value
Track record of delivering shareholder value For personal use only Total Shareholder Return (cumulative) ($/share) Superior shareholder returns since 2006 listing $23.96 32% compound annual growth rate* | Total dividend per share $3.97** Consistently maintained strong balance sheet Net cash positive
Slide 5: World-class safety performance
World-class safety performance For personal use only Quantum improvement in safety TRIFR 2.95* Searched the world for leaders in safety | DuPont best fit Top 5% ASX 100 companies MRL safety transformation program Culture | Senior & frontline leaders | Leadership & safety qualifications Zero LTIFR**
Slide 6: Operational performance in 1H FY18
Operational performance in 1H FY18 For personal use only Mining services Iron Ore • Crushing and processing tonnes – 63mt • Export volumes 4.84mt • Strong customer retention average contract term 6-7 years • Achieved price A$72.6/wmt (88% of Platts index price) • Building 3 Nextgen crushers for inst
Slide 7: Where we are going in 2H FY18: mining services
Where we are going in 2H FY18: mining services For personal use only Track record of operational excellence Proven performer |Strong customer relationships Safe and low-cost mining services Safest mining services business | Low cost operations Actions: Innovation unlocking further value • Minimum of
Slide 8: Where we are going in 2H FY18: iron ore
Where we are going in 2H FY18: iron ore For personal use only Challenging market conditions likely to continue Discounting of low quality ore | Record stockpiles China ports MRL has a clear strategy going forward Confident in long-term value creation opportunity in iron ore Actions: • Continue at cu
Slide 9: Where we are going in 2H FY18: lithium
Where we are going in 2H FY18: lithium For personal use only Actions: Wodgina Now world’s largest exporter of lithium units • Construction of 750kt spodumene plants (3 x 250kt Wodgina and Mt Marion: 30+ year mine life, low cost & high quality trains) well under way • First product from train 1 due S
Slide 10: Long-term opportunity in lithium supply chain
Long-term opportunity in lithium supply chain For personal use only Lithium market MRL lithium assets Develop Wodgina and shareholding in Mt Marion as far • Large and growing demand – grown faster than forecast downstream as we can to extract the best value possible • Demand for lithium to grow ahea
Slide 11: Pilbara infrastructure business
Pilbara infrastructure business For personal use only • World-class 50mtpa supply chain: Pilbara iron ore mines to Port Hedland 330km lightweight, narrow gauge BOSS rail system Fully autonomous shuttles run remotely from Perth Automated port stockyard and cape size export infrastructure • Mult
Slide 12: Carbon fibre business
Carbon fibre business For personal use only • Designed and built carbon fibre manufacturing facility in-house • Large scale production of light weight structural components: beams, tubes and plates • Components assembled to produce equipment for mining industry: dump truck trays and rail wagons • Pr
Slide 13: Synthetic graphite business
Synthetic graphite business For personal use only Partnership with Hazer Limited Attractive product with long-term future • Signed agreement to have world-wide rights for use of Hazer synthetic graphite Product value at top of battery grade graphite market technology • MRL fund and finalise developm
Slide 14: Benefits of securing long-life, low cost energy
Benefits of securing long-life, low cost energy For personal use only MRL strategy to secure long-life, low cost energy Support power requirements for our mining and mining services business Provide all energy needed for downstream processing Expand mining services offering to include power supply A
Slide 15: Disclaimer
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 w
Slide 16: For personal use only
For personal use only Office: 1 Sleat Road Applecross, WA 6153 PO Locked Bag 3 Canning Bridge Applecross, WA 6153 P +61 8 9329 3600 F +61 8 9329 3601 mineralresources.com.au