South32 Ltd. · ASX:S32
South32 — Investor Presentation (October 2016)
13 slides from South32's investor presentation, Oct 31, 2016
Slide 1: Marketing Update
MARKETING UPDATE • 31 OCTOBER 2016
Slide 2: Important Notices
• IMPORTANT NOTICES • THIS PRESENTATION SHOULD BE READ IN CONJUNCTION WITH THE “FINANCIAL RESULTS AND OUTLOOK – YEAR ENDED 30 JUNE 2016” ANNOUNCEMENT RELEASED ON 25 AUGUST 2016, WHICH IS AVAILABLE ON SOUTH32’S WEBSITE (WWW.SOUTH32.NET). • FORWARD LOOKING STATEMENTS • This presentation contains forwa
Slide 3: A Global Marketing Team Serving Diversified Markets
• A GLOBAL MARKETING TEAM SERVING DIVERSIFIED MARKETS Americas 4% Australia 9% Southern Africa 14% Marketing Centre London Europe 28% From TEMCO MRN Other Asia 11% Cerro Matoso Bauxite Nickel Alumar Alumina From Singapore 11% To Cerro Matoso China To USA South Korea 5% GEMCO Global Marketing Centre
Slide 4: Actively Pursuing Value for Our Product
ACTIVELY PURSUING VALUE FOR OUR PRODUCT Passive Active Equity Optimisation Hybrid Model Traders Integrated Agent Marketing Marketing Optimisation Third Party Product Proprietary Trader Short Term Optimiser Marketing operates along the spectrum to create value for South32 South32 marketing is • South
Slide 5: Manganese Ore Market Overview
MANGANESE ORE MARKET OVERVIEW • Manganese ore price and China port stocks1 • Manganese ore trade flows2 • (US$/dmtu; Mt) • (Mt, Mn content unadjusted) CY14 Mn Ore Port Stocks CY15 Increasing ore supply tightness due Mn ore 44% Mn, CIF China to rail disruptions in South Africa, CY16 YTD³ Exports Impo
Slide 6: Manganese Ore Marketing
• MANGANESE ORE MARKETING FY16 sales revenue by region1 3% 2% 2% • Internal consumption (Temco and Metalloys) Where we sell our products • Exports predominately to China, South Korea, India 8% and Europe • Gemco and Wessels produce high grade oxide ore 9% 39% (> 44%Mn), Mamatwan produces semi carbon
Slide 7: Metallurgical Coal Market Overview
• METALLURGICAL COAL MARKET OVERVIEW Monthly average HCC price1 • Metallurgical coal trade flows2 (US$/t) • (Mt) CY14 CY15 Exports Imports 250 CY16 YTD³ China supply impacted by 200 276 day rule, Australia supply impacted by 200 production disruptions 160 Increased Chinese US supply begins Reduced N
Slide 8: Metallurgical Coal Marketing
• METALLURGICAL COAL MARKETING FY16 sales revenue by region 1% • Domestic steelmakers (BlueScope and Arrium) Where we sell our products • Exports predominately to India, Japan, South Korea, Taiwan and Europe 17% 38% • Illawarra Metallurgical Coal produces a premium hard Product types coking coal and
Slide 9: Alumina Market Overview
• ALUMINA MARKET OVERVIEW Alumina monthly price1,2 China bauxite imports3 (US$/t) • (Mt annualised) South-West China domestic price (US$/t) Indonesia India Australia Malaysia Guinea Other Australia FOB price (US$/t) 500 100 Start of Indonesian Decreasing Chinese ban on ore exports prices prompted by
Slide 10: Alumina Marketing
• ALUMINA MARKETING FY16 sales revenue by region 3% 2% • Internal consumption (Hillside and Mozal smelters) Where we sell our products • Exports predominately to Middle East, Asia and 10% Europe 26% 13% • Smelter grade alumina that may attract a premium for Product types its value in use characteris
Slide 11: Nickel Market Overview
NICKEL MARKET OVERVIEW LME nickel price and exchange Stocks1 China nickel ore imports and NPI supply2 (LHS: US$/t, RHS: kt) (LHS: Mt ore, RHS: kt) SHFE Stocks (RHS) Indonesia Ore Imports (LHS) LME Stocks (RHS) Philippines Ore Imports (LHS) LME Nickel Price (LHS) Amid falling prices, Chinese China NP
Slide 12: Ferronickel Marketing
• FERRONICKEL MARKETING FY16 sales revenue by region 2% 4% • Exports mainly to Asia 7% Where we sell our products • Small amount of off-specification product sales made 37% • Ferronickel (an alloy of nickel and iron) 18% Product types • 29% nickel content • Sold predominately to stainless steel prod
Slide 13: South32
SOUTH32