Mineral Resources Limited · ASX:MIN
Mineral Resources — Shareholder Meeting (November 2017)
23 slides from Mineral Resources's shareholder meeting presentation, Nov 22, 2017
Slide 1: Managing Director's Presentation 2017 Mineral Resources AGM
Managing Director’s Presentation 2017 MINERAL RESOURCES AGM 22 November 2017 1
Slide 2: FY17 Results and Highlights
FY17 RESULTS AND HIGHLIGHTS 2
Slide 3: Safety & Environmental Performance
SAFETY & ENVIRONMENTAL PERFORMANCE Total Recordable Injury Frequency Rate (TRIFR) TRIFR 2.32 16 • 62% reduction 14.7 • Top ranked mining and mining services 14 ASX listed company 12 10 Lost Time Injury (LTI) 8 7.2 • 910 days / 12 million man hours LTI 6.01 free 6 5.5 Environmental 4 2.32 Non-Complia
Slide 4: FY17 Financial Performance
FY17 FINANCIAL PERFORMANCE Revenue Diluted EPS * Capex $1.46bn 24% 108cps 91% $228m 37% EBITDA *62% Dividends declared Net Assets $464M 54cps $1.13bn 12% 83% NPAT * Operating cash flow Return on invested 83% $201m $382m ** 8% capital *** 19.5% * Against normalised FY16 result ** Before financing act
Slide 5: Share Price & Financial Outlook
SHARE PRICE & FINANCIAL OUTLOOK SHARE PRICE FY18 OUTLOOK • Maintaining a minimum EBITDA of $500m $17.31 20 • Key drivers include: 18 • 130Mt equivalent crushing capacity 16 • 13.3Mt iron ore exported $10.85 • 4.50 – 4.75Mt lithium DSO exported 14 $8.31 • 450Kt spodumene exported (MRL’s share 43.1%)
Slide 6: FY17 Mining Services Highlights
FY17 MINING SERVICES HIGHLIGHTS Crushing Haulage Customer Retention • 130Mtpa installed capacity • 268 road trains: 12Mt/64,000,000kms • Extremely strong • 30Mtpa new contract • MRL trains: 4.3Mt/584,200kms • Three contracts extended crushing tonnes added • Mining fleet: during year • 11 excavators
Slide 7: FY17 Commodity Shipments
FY17 COMMODITY SHIPMENTS 12.27Mt 0.15Mt Iron Ore Manganese 0.116Mt 0.72Mt Spodumene* DSO Lithium 100% basis *MRL ownership 43.1% 7
Slide 8: Wodgina DSO Lithium
WODGINA DSO LITHIUM DSO Processing Exports • 5 DSO clients taking monthly DSO • 1.8Mt exported Apr to Oct 2017 deliveries • FY18 exports between • 4 DSO plants successfully processing 4.50Mt – 4.75Mt DSO on a continuous basis • 5th DSO plant in start up & commissioning phase Unprecedented Cooperatio
Slide 9: Community Support
COMMUNITY SUPPORT Major Financial Partnerships 9
Slide 10: Community Support Continued
COMMUNITY SUPPORT CONTINUED MRL support the local community through a wide range of sponsorships, scholarships and donations • City to Surf • Esperance CCI Business Awards • Esperance Tjaltjraak Services • Lions Cancer Institute • Moorine Rock Primary School • Rockingham Kwinana Chamber of Commerce
Slide 11: Outlook for FY18 and Beyond
OUTLOOK FOR FY18 AND BEYOND 11
Slide 12: FY18 Mining Services Outlook
FY18 MINING SERVICES OUTLOOK Crushing Haulage • 15-20Mtpa new contract • New mining fleet crushing capacity to be added • 4 new excavators (400t & 600t class) taking total fleet to 15 • 26 new dump trucks (200t class) taking total fleet to 71 • Gradual introduction of carbon fibre trays to MRL minin
Slide 13: FY18 Planned Commodity Production
FY18 PLANNED COMMODITY PRODUCTION Iron Valley Yilgarn • Current run rate of approximately 8Mtpa • Current run rate 5Mtpa • Marginal contributor to MRL business • Awaiting approval for Bungalbin and Jackson 5 – Government decision imminent • Approval will facilitate: • 425 direct & 1500 indirect jobs
Slide 14: Pilbara Logistics Supply Chain Infrastructure
PILBARA LOGISTICS SUPPLY CHAIN INFRASTRUCTURE Creating a Sustainable Iron Ore Business • Install 330km mine to port lightweight, low cost rail system: Bulk Ore Shuttle System (BOSS) • Develop fully automated port receival stockyard • Develop port export infrastructure to support BOSS rail system • 3
Slide 15: Gas and Remote Power
GAS AND REMOTE POWER Securing Low Cost Power • Secure long term, in-ground gas reserves to provide fixed price, low cost power to MRL sites and operations • Develop Perth Basin gas assets and exploration opportunities • Develop in-house upstream gas processing capability • Control energy costs for 2
Slide 16: Innovation
CARBON FIBRE GRAPHITE INNOVATION NEXTGEN CRUSHING BULK ORE SHUTTLE PLANT SYSTEM 16
Slide 17: Overview of Innovation Strategy
OVERVIEW OF INNOVATION STRATEGY • MRL is a specialist mining services contracting company • Our strategic use of innovation: • enables MRL to develop and offer unique mining products and services with high barriers to entry • substantially increases the value add proposition to our clients • provide
Slide 18: Bulk Ore Shuttle System (BOSS)
BULK ORE SHUTTLE SYSTEM (BOSS) Innovation in Motion • Narrow gauge, lightweight rail system • Hybrid Power: electric driven, battery operated with reciprocating diesel gensets • Driverless, fully autonomous shuttles with 120t payload • Operated from Perth based remote operations centre • Extremely l
Slide 19: Carbon Fibre Technology
CARBON FIBRE TECHNOLOGY Industry Changing Innovation • Established a carbon fibre manufacturing foundry • In-house designed and manufactured specialist equipment that produces large scale, lightweight structural beam, tubular and plate components • Components used to produce diverse range of product
Slide 20: NextGen Crushing Plants
NEXTGEN CRUSHING PLANTS Innovative Crushing Technology • Developed 12Mtpa portable & modular crushing plant that is unique to the mining industry • Evolution of 5Mtpa semi-fixed plants that MRL developed in 2010/11 and successfully deployed across a number of sites • Features: • Autonomous: capable
Slide 21: Synthetic Graphite Production
SYNTHETIC GRAPHITE PRODUCTION Partnership with Hazer • MRL is responsible for finalising development of the Hazer process that creates high quality, battery grade synthetic graphite using key ingredients of natural gas and iron ore • MRL granted exclusive worldwide IP license to use Hazer process fo
Slide 22: 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 23: www.mineralresources.com.au
OFFICE: 1 Sleat Road, Applecross, WA 6153 PO. Locked Bag 3, Canning Bridge, www.mineralresources.com.au Applecross, WA 6153 P +61 8 9329 3600 F +61 8 9329 3601 23
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