Mineral Resources Limited · ASX:MIN
Mineral Resources — Investor Presentation (October 2023)
66 slides from Mineral Resources's investor presentation, Oct 4, 2023
Slide 1: Investor Site Tour Presentations
4 October 2023 Investor Site Tour Presentations Mineral Resources Limited (ASX: MIN) (MinRes or Company) will be hosting an investor and analyst tour on 4 to 6 October 2023, which includes a corporate presentation, live demonstration of the Company’s autonomous road trains and site visits to the Ons
Slide 2: Investor Tour Corporate Presentation
For personal use only INVESTOR TOUR CORPORATE PRESENTATION 4-6 O CTO BER 2023 1
Slide 3: Disclaimer and Important Notices
DISCLAIMER AND IMPORTANT NOTICES For personal use only This presentation should not be considered as an offer or invitation to subscribe for or purchase any securities in Mineral Resources Limited and its subsidiaries (“MinRes” or “Company”) or as an inducement to make an offer or invitation with re
Slide 4: Business Pillars
BUSINESS PILLARS For personal use only Mining Services • Leading pit-to-ship mining services provider • Stable, long-term earnings – diversified customers Lithium • Top five global lithium supplier1 • Portfolio includes two of the world’s largest hard rock lithium deposits Iron Ore • Top five Austra
Slide 5: MinRes Key Management
MINRES KEY MANAGEMENT For personal use only CHRIS ELLISON MARK WILSON Managing Director Chief Financial Officer 40+ years experience 30+ years experience Diversified resources and Financial strategy and mining services company growth MINING SERVICES LITHIUM IRON ORE ENERGY MIKE GREY JOSHUA THURLOW C
Slide 6: Social Responsibility
SOCIAL RESPONSIBILITY For personal use only WORKPLACE WELLBEING ENVIRONMENT COMMUNITY PEOPLE • Mental health and • Transition from diesel to • Financial and social • Over 7,250 employees4 workplace wellbeing natural gas and benefits for Traditional renewables Owners • Diversity focus – female • Reso
Slide 7: Indigenous Engagement
INDIGENOUS For personal use only ENGAGEMENT TRADITIONAL OWNERS Focus on cultural sensitivity and mutually-beneficial relationships BUSINESS PARTNERSHIPS Contributing and sharing in our long-term success COMMUNITY SUPPORT Local programs delivering positive health and social outcomes INVESTOR TOUR – O
Slide 8: Growth Target – Double in Two Years
GROWTH TARGET – DOUBLE IN TWO YEARS For personal use only MINING SERVICES LITHIUM IRON ORE ENERGY • Mt Marion ramp up to 900ktpa1 • Construct and operate 2 years Next • Wodgina ramp up • Increase from 18Mtpa 165-250TJ/d gas plant • Double earnings 3 trains to 1Mtpa1 to 39Mtpa2 • Transition to greene
Slide 9: Mining Services
MINING For personal use only • Leading pit-to-ship mining services provider • Leading Australian crushing contractor SERVICES • Innovations led by in-house expertise
Slide 10: Mining Services Volumes Growth
MINING For personal use only MINING SERVICES VOLUMES GROWTH SERVICES 600 +77% TO FY23 GROWTH Stage 12 3rd party projects Onslow 500 Contracted Tonnes (Mwmt) • Foundation of our business – currently operate 26 mines 2.0 400 2.0 (external and internal) Growth Lithium 1.8 1.8 • Anticipated significant
Slide 11: Onslow Cashflow Modelling
MINING SERVICES For personal use only ONSLOW CASHFLOW MODELLING • Benchmark spot iron ore price = A$131/wmt1 • Expected price realisation in line with the 58% index MINE CO • Operating Costs = A$40/wmt FOB ex-Royalties and inclusive $1.3bn 60.3% MinRes3 of Mining Services & InfraCo Costs EBITDA3 Cap
Slide 12: Mining Services Construction
MINING SERVICES For personal use only CONSTRUCTION Planning, design, engineering and construction In-house expertise provides lowest capital intensity and fastest path to market Workshops supporting fit-for-purpose solutions, supply chain control and economies of scale INVESTOR TOUR – ONSLOW IRON &
Slide 13: Mining Services Crushing
MINING SERVICES For personal use only CRUSHING Build, own, operate NextGen modular crushing plants LOWER DUST AND NOISE EMISSIONS RAPID DEPLOYMENT – PLUG AND PLAY CARBON FIBRE SCREENS LOWER OPERATING & MAINTENANCE COST INVESTOR TOUR – ONSLOW IRON & LITHIUM | 12
Slide 14: Mining Services Haulage
MINING SERVICES For personal use only HAULAGE 330T OFF HIGHWAY TRANSPORT SOLUTION LOW CAPITAL COST VERSUS RAIL COMPETITIVE OPERATING COST VERSUS RAIL PROGRESSING TO AUTONOMOUS
Slide 15: Mining Services Transhipping
MINING SERVICES For personal use only TRANSHIPPING 20,000T FULLY ENCLOSED TRANSPORT SOLUTION TRANSPORTS ORE TO CAPESIZE CARRIERS SHALLOW DRAFT AVOIDS NEED FOR DEEP WATER PORT FLEET OF FIVE TO SUPPORT ONSLOW IRON PROJECT INVESTOR TOUR – ONSLOW IRON & LITHIUM |14
Slide 16: Lithium
LITHIUM For personal use only • Top five global lithium producer • Growing world-class portfolio of hard rock assets • Identifying pathways to downstream production
Slide 17: Lithium Fundamentals: Supply and Demand Outlook
CHEMICAL GRADE SPODUMENE CONCENTRATE SUPPLY AND DEMAND OUTLOOK1 Operating and Base Case Probable & Possible For personal use only Theoretical Demand 1,750 1,500 >530ktpa of chemical grade 1,250 spodumene 1,000 concentrate supply required 750 by 2040 (including 500 Probable and LITHIUM 250 - Possible
Slide 18: Lithium Production Growth
For personal use only LITHIUM PRODUCTION GROWTH Bald Hill3 +122% 1400 TO FY23 LITHIUM Wodgina GROWTH Train 42 Expansion 1200 Mt Marion • Anticipated significant growth SC Production (kdmt) 1000 in the medium term from fully Wodgina funded projects – no Train 3 additional growth capex 800 • Material
Slide 19: Wodgina Lithium
WODGINA LITHIUM For personal use only 50%1 50% RESOURCES 217Mt RESERVES 165Mt CURRENT Trains 1 and 2 250ktpa (SC6 eq.) per train CAPACITY nameplate capacity Train 3 ramp up January – June 2024 GROWTH TRAJECTORY Study for Train 4 + under way 1. Binding agreement will see MinRes’ interest in Wodgina i
Slide 20: Mt Marion Lithium
MT MARION LITHIUM For personal use only 50% 50% RESOURCES 65Mt RESERVES 36Mt MINRES OFFTAKE 51% EXPLORATION 80% POTENTIAL remains unexplored GROWING 600ktpa CAPACITY SC6 equivalent INVESTOR TOUR – ONSLOW IRON & LITHIUM | 19
Slide 21: Iron Ore
IRON ORE For personal use only • Top five Australian producer • Transitioning to low-cost, long-life operations • Sustainable through price cycles
Slide 22: Iron Ore Production Growth
IRON ORE For personal use only IRON ORE PRODUCTION GROWTH South West Creek GROWTH 60 +121% TO FY23 studying • Transitioning to low-cost, long-life iron ore operations 50 Stage 12 Onslow • MinRes’ breakeven cost for Onslow Export tonnes (Mwmt) Iron is in the 1st quartile of the 40 global cost curve O
Slide 23: Onslow Iron Project
ONSLOW IRON For personal use only PROJECT Offtake 50% - 75%1 by Baowu 35Mtpa stage 1 capacity 30+ years mine life Resort style setting a new FIFO standard First ore on ship June 2024 1. MinRes share of iron ore production volume. INVESTOR TOUR – ONSLOW IRON & LITHIUM | 22
Slide 24: Energy
• Natural gas powering our energy transition For personal use only ENERGY • Low-cost, cleaner power for MinRes and partners • Downstream opportunities
Slide 25: Security and Gas Development Opportunity
SECURITY AND GAS DEVELOPMENT For personal use only TIMELINE1 OPPORTUNITY FY24 FY25 FY26 EXPLORATION • Perth Basin – additional prospective targets NED-1 and 3 wells L3 flow test Lockyer • Red Gully well Production • Carnarvon Basin – seismic 2 wells 1 well North Erregulla Red Gully PRODUCTION PERTH
Slide 26: Future Growth
FUTURE GROWTH For personal use only • Significant growth in production • Continuing track record for strong returns • Workforce nearing 10,000 people
Slide 27: Investor Site Tour Questions?
For personal use only INVESTOR SITE TOUR QUESTIONS?
Slide 28: Day One: Autonomous Road Train Demonstration
For personal use only INVESTOR TOUR DAY ONE AUTONOMOUS ROAD TRAIN DEMONSTRATION 4 O CTO BER 2023
Slide 29: The Opportunity
THE OPPORTUNITY For personal use only • Stranded ore deposits • Developed strong offering in road haulage • Competitive versus rail and conveyor haulage 28
Slide 30: Innovation
INNOVATION For personal use only • Partnering with Hexagon Mining • Delivering world first Autonomous Road Train (ART) • Hauling product from Mine Gate to Port • ART fleet of 120 operational assets • Hauling 330 tonne payloads • 150km MinRes dedicated haul road 29
Slide 31: Point of Difference
POINT OF For personal use only DIFFERENCE • Rapidly deploy to remote areas o Use of modular communication access points o Peer to peer communication capability • Allows decisions to be made by road trains rather than central server o Enables autonomous operations without full communication coverage
Slide 32: Service Offering
SERVICE OFFERING For personal use only • Operational savings & efficiency benefits o Enables long distance road train haulage on private roads at competitive rate with lower overhead costs o Less travel, accommodation and management costs • Improved efficiency delivered through consistent operation
Slide 33: Labour Risks
LABOUR RISKS For personal use only • Road train operators becoming scarce • More than 20,900 vacant position for truck drivers • Number of factors – demographics of an aging workforce • Industry worker’s average age is 45+ years • Aging rate was 2.2 times faster than all other industries 32
Slide 34: Safety First
SAFETY FIRST For personal use only • Safety is paramount • Removing drivers takes people out of harm’s way and likelihood of driver fatigue • Road trains operate in dedicated and separated Autonomous Operating Zone o Only accessible to trained personnel o Safety systems deployed o Allows for detecti
Slide 35: Investor Tour Day One: Mt Marion
For personal use only INVESTOR TOUR DAY ONE MT MARION 4 O CTO BER 2023
Slide 36: Mt Marion Regional Map
For personal use only MT MARION REGIONAL MAP INVESTOR TOUR – MT MARION | 35
Slide 37: For personal use only
For personal use only INVESTOR TOUR – MT MARION | 36
Slide 38: Mt Marion Lithium
Capacity doubling post recent completion of plant expansion Historical lithium spodumene concentrate exports (kdmt) MT MARION For personal use only 400 LITHIUM Exports (kdmt, 100% 300 MinRes (50%) and Ganfeng (50%) basis) Ownership MinRes operator and mining services contractor 200 40km south west o
Slide 39: Mt Marion Overview
MT MARION OVERVIEW For personal use only MINING PROCESSING INFRASTRUCTURE EXPLORATION • FY23 TMM 45.6Mt • 3.5Mtpa plant • 400 room village • Significant Resource • LOM strip ratio – 14.0:1 • Upgrades complete and (140 room expansion) Development program • Open cut mining commissioning / ramp-up • Wa
Slide 40: Mt Marion Cross Section
MT MARION CROSS SECTION For personal use only SUMMARY • Significant drilling invested in growing both OP and UG Resource • UG targets been identified below both North and Potential to merge Central Pit UG target Central Pits both UG targets • Possible continuity between North Pit North and Central U
Slide 41: Mt Marion Resource and Reserve
MT MARION RESOURCE AND RESERVE1 For personal use only RESERVE Mineralisation Proved Reserves Probable Reserves Total Reserves Deposit Cut-off Tonnes Li2O Tonnes Li2O Tonnes Li2O Type Li2O (%) (Mt) (%) (Mt) (%) (Mt) (%) Mt Marion Open Pit 0.75 - - 35.4 1.42 35.4 1.42 Stockpiles – ROM, Yard & Stockpil
Slide 42: Mt Marion Process Flow
MT MARION PROCESS FLOW For personal use only Open pit Ore crusher Crushed ore ROM stockpile mining (CSI Mining Services) MT MARION 2.4 increasing Crusher Capacity to 3.5Mtpa Processing feed Crushed size -6mm Dense medium hopper Regrind separation circuits Processing feed 340 increasing hopper rate t
Slide 43: Investor Tour: Onslow Iron
For personal use only INVESTOR TOUR DAY 2 ONSLOW IRON 5 O CTO BER 2023
Slide 44: Iron Ore Fundamentals: Historical Pricing
IRON ORE HISTORICAL IRON ORE PRICING (CFR, REAL 2023 BASIS)1 For personal use only FUNDAMENTALS Spot (58% Fe, year average) 15-year average (62%) STRONG AND 250 10-year average (58%) Wood Mackenzie long-term price (62% Fe, real) STABLE 225 Prices have returned to at or 200 below historical averages
Slide 45: Onslow Iron Project Highlights
ONSLOW IRON For personal use only PROJECT HIGHLIGHTS Stage 1 – 35Mtpa capacity1 30 year project life2 Low operating cost Low risk jurisdiction Low capital intensity – US$65 per tonne capacity First ore targeted by June 2024 LOM offtake secured with Baowu MINING SERVICES INFRASTRUCTURE
Slide 46: Onslow Iron Ownership Structure
ONSLOW IRON OWNERSHIP STRUCTURE2 For personal use only MINE CO Baosteel Resources Australia Pty Ltd AMCI Investments Pty Ltd POSCO WA Pty Ltd MINE CO (RHIOJV) Assets • Red Hill Iron Ore (RHIOJV) tenements 15% 15% Aquila Steel Pty Ltd (wholly owned subsidiary AMCI (IO) • Ore Reserves 465 Mt at 57.6%
Slide 47: Onslow Iron: The MinRes Model
ONSLOW IRON For personal use only THE MINRES MODEL MINING SERVICES AND INFRASTRUCTURE – 100% MINRES • NextGen crushing NextGen crushing Assets • Autonomous 330T road trains • 5 x 20kt transhippers • MinRes charges a $/t to Mine Co under a Revenue MINING life-of-mine contract SERVICES • Total Contrac
Slide 48: Onslow Iron Resort Village
ONSLOW IRON For personal use only RESORT VILLAGE Setting a new industry standard CONSTRUCTION UPDATE • Pre-construction works starting this month • Civil works commencing in October • Fencing being installed in October ACCOMMOCATION • Three times the size of traditional accommodation • Double bed wi
Slide 49: Onslow Iron Mine Site Update
ONSLOW IRON For personal use only MINE SITE UPDATE KEN’S BORE MINE SITE • Drill and blast of ore body progressing • Processing facility earthworks and inground services under way Mine resort MINE AIRPORT • Airstrip complete • Aerodrome to be operational this month • Limited to operations only MINE R
Slide 50: Onslow Iron Haul Road Update
ONSLOW IRON For personal use only HAUL ROAD UPDATE PLANNING & LOGISTICS • All major procurement and fabrication is at advance stages • Piles on site, bridge girders arriving October PEOPLE AND VILLAGE • 300-room camp now accommodating haul road construction workers ROAD CONSTRUCTION • Works progress
Slide 51: Onslow Iron Port Update
ONSLOW IRON For personal use only PORT UPDATE WAREHOUSE AND WORKSHOP • Steelwork complete PRODUCT STORAGE SHED • Steelwork progressing well MARINE WORKS • Close to completion HAUL ROAD • Construction within PPA boundary is at final stages Port jetty INVESTOR TOUR – ONSLOW | 50
Slide 52: Onslow Iron Transhippers
ONSLOW IRON For personal use only TRANSHIPPERS • Designated as ATB – Articulated Tug and Barge • Connected by Articouple System • Tugs Interchangeable • Combined Length 161m (Tugs 45m-52m) • ATB when connected is controlled from Barge • Barge is a Self Loader from a Single point • Specifically desig
Slide 53: Transhipper Design
TRANSHIPPER DESIGN For personal use only INVESTOR TOUR – ONSLOW | 52
Slide 54: Transhipper Design (Mooring Layout)
For personal use only TRANSHIPPER DESIGN (MOORING LAYOUT) INVESTOR TOUR – ONSLOW | 53
Slide 55: Anchorage Transhipment Routing Port
ANCHORAGE For personal use only TRANSHIPMENT ROUTING PORT INVESTOR TOUR – ONSLOW | 54
Slide 56: Onslow Iron Loading Jetty
ONSLOW IRON For personal use only LOADING JETTY • Remote controlled gangway from Barge • Remote controlled automatic mooring system >90% of time • Remote mooring hooks for high weather • Finger crane fitted to wharf • Bunker hose / fresh water fitted to gangway • Loading arm is unmanned at the wharf
Slide 57: Successful Launch – First Two Barges
SUCCESSFUL LAUNCH – FIRST TWO BARGES For personal use only INVESTOR TOUR – ONSLOW | 56
Slide 58: Unlocking Stranded Deposits in the West Pilbara Region
For personal use only ONSLOW IRON UNLOCKING STRANDED DEPOSITS IN THE WEST PILBARA REGION INVESTOR TOUR – ONSLOW | 57
Slide 59: Investor Tour Day Three: Wodgina
For personal use only INVESTOR TOUR DAY THREE WODGINA 6 O CTO BER 2023
Slide 60: For personal use only
For personal use only INVESTOR TOUR – WODGINA | 59
Slide 61: Wodgina Lithium
Ramping-up one of the largest hard-rock assets in the world, having begun recommissioning in mid-2022 Historical shipped lithium spodumene concentrate 6% (kdmt) WODGINA For personal use only LITHIUM 100 Shipped (kdmt, 100% basis) 80 Wodgina Trains 1 & 2 resume MinRes (50%) and Albemarle (50%) 1 prod
Slide 62: Wodgina Overview
WODGINA OVERVIEW For personal use only MINING PROCESSING INFRASTRUCTURE EXPLORATION • FY23 TMM 12.2Mt • 5.6Mtpa – 3 processing trains • 700 room camp • Resource open in all (140 room expansion) directions • LOM Strip ratio – 4.3:1 • 3 stage crushing circuit • Water bore field • Resource definition d
Slide 63: Wodgina Cross Section
WODGINA CROSS SECTION For personal use only SUMMARY • RC drilling confirming pegmatite outside current pit designs • These updates will be included in a December 2023 model update • This pegmatite has a total strike length of ~1km and varies from 5 to 40m in thickness • As drilling progresses the ex
Slide 64: Wodgina Resource and Reserve
WODGINA RESOURCE AND RESERVE1 For personal use only RESERVE Mineralisation Proved Reserves Probable Reserves Total Reserves Cut-off Tonnes Li2O Tonnes Li2O Tonnes Li2O Deposit Type Li2O (%) (Mt) (%) (Mt) (%) (Mt) (%) Wodgina Open Pit 0.5 - - 148.3 1.17 148.3 1.17 Stockpiles – ROM, Yard & Port Stockp
Slide 65: Wodgina Process Flow
WODGINA PROCESS FLOW For personal use only Open Pit Ore Crusher Crushed Ore Mining ROM (CSI Mining Services) Stockpile WODGINA Crusher Capacity 5.7Mtpa WHIMS LIMS Deslime Grinding Processing Crushed size -3mm Flotation feed hopper Processing feed 3 x 230 tph Fine tailings hopper rate Ta Ta Filter Pl
Slide 66: Investor Relations
For personal use only INVESTOR RELATIONS Chris Chong Investor Relations Manager T: +61 8 9315 0213 E: chris.chong@mrl.com.au OFFICE: 20 Walters Drive, Osborne Park, WA 6017 POSTAL: Locked Bag 13, Osborne Park DC, WA 6916 P +61 8 9329 3600 www.mrl.com.au ASXMIN
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