Mmg Ltd. · HKEX:1208

Mmg — BMO Metals and Mining Conference 2013

17 slides from Mmg's conference presentation, Feb 26, 2013

  1. Slide 1: BMO Metals and Mining Conference

    BMO METALS AND MINING CONFERENCE 26 February 2013 ANDREW MICHELMORE, Chief Executive Officer HKEx: 1208 1

  2. Slide 2: Important Information

    Important Information The information contained in this presentation is intended solely for your personal reference and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organisation/firm) or published, in whole or in part,

  3. Slide 3: MMG – part of the Minmetals Group

    MMG – part of the Minmetals Group China Minmetals Corporation  One of the world’s largest metal traders.  Ranked 169 among the Fortune 500 companies.  Close ties with major Chinese and international commercial banks.  Worldwide sales network – 2012 revenue RMB 325 billion, profit RMB 8 billion.

  4. Slide 4: Achievements to date

    Achievements to date Growth  Acquisition of Anvil Mining.  Board Endorsement of Dugald River.  Value focused, disciplined approach to acquisitions.  Established Southern African exploration hub.  Sale of trading and fabrication assets in 2011. Transformation  Successful ramp-up of Kinsevere in

  5. Slide 5: Attractive investment on current valuations

    Attractive investment on current valuations  Current market capitalisation US$2.5 EV / 2013 EBITDA Peer average billion. Other 5.9  Current enterprise value US$4.0 billion. ASX 6.1  Market earnings forecasts represents TSE 9.6 value at current price – lower than all comparable peer groups. HKEx 5

  6. Slide 6: Disciplined approach to financial management

    Disciplined approach to financial management  MMG cost management is non-cyclical. Sepon C1 costs USc / lb copper  C1 cash cost performance and 2013 120 guidance demonstrates prudent 110 approach. 100 90 Current priorities for capital: 2013 guidance: 95 – 105 USc / lb copper 80  Board endorsement

  7. Slide 7: Copper – low cost, high quality assets

    Copper – low cost, high quality assets Outlook Copper inventories 1 LME copper price Stocks, weeks of consumption USc / lb  Solid, well understood long-term 8.0 500 demand fundamentals supported by 6.0 400 Forecast price continuing progress of developing Inventories 300 world. 4.0 200  Real supply

  8. Slide 8: Zinc – continuing to be a major producer

    Zinc – continuing to be a major producer Outlook Refined zinc surplus / (deficit) 1 LME zinc price ‘000 tonnes US$ / tonne 1,250 4,000  Demand growth driven by shift to 1,000 greater galvanising. Current price 3,000 750 2,000  Global zinc supply expected to contract 500 volume 1,000 through closur

  9. Slide 9: Our future aspirations

    Our future aspirations Growth MMG copper equivalent production growth 1  Consistent and sustainable earnings growth. ‘000 tonnes  Strong financial outcomes. 400  Acquisition of base metals assets. CAGR 5%  Realisation of value of the project pipeline. CAGR 7% 300 Transformation  Innovative grow

  10. Slide 10: Growth aspirations are advanced

    Growth aspirations are advanced Projects Dugald River  Delivers 200,000 – 220,000 tonnes per annum zinc in zinc concentrate.  Underground development – with significant progress to date.  Forecast capital expenditure A$1,488 million over the life of the project.  Board endorsement in December 20

  11. Slide 11: Building the next generation's global diversified mining company

    Building the next generation’s global diversified mining company Enterprise value US$ billion 40 30 20 10 0 11 As at 15 February 2013.

  12. Slide 12: We mine for progress

    A WE MINE FOR PROGRESS

  13. Slide 13: Overview of assets

    Overview of assets Izok Corridor copper / lead / silver / zinc Sepon gold / copper Dugald River Mutoshi Kinsevere lead / silver / zinc copper copper Century Golden Grove lead / silver / zinc copper / gold / lead / silver / zinc Legend: Rosebery Operating assets copper / gold / lead / silver / zinc D

  14. Slide 14: International Board and leadership team

    International Board and leadership team Chairman Wang Lixin 王立新 Non-executive Non-executive Director CEO & Executive CFO & Executive Director Xu Jiqing 徐基清 Director Director Jiao Jian 焦健 Andrew Michelmore David Lamont Non-executive Director Independent Independent Independent Gao Xiaoyu 高晓宇 Non-exec

  15. Slide 15: 2013 Production and C1 Cost Guidance

    2013 Production and C1 Cost Guidance Sepon Rosebery Copper – production 83,000 – 88,000 tonnes Zinc – production 75,000 – 80,000 tonnes Copper – C1 costs US$0.95 – US$1.05 / lb Zinc – C1 costs US$0.25 – US$0.30 / lb Gold – production 45,000 – 55,000 ounces Lead – production 20,000 – 22,000 tonnes Go

  16. Slide 16: C1 cost performance

    C1 cost performance Century C1 costs Kinsevere C1 costs USc / lb zinc USc / lb copper 200 65 175 60 55 150 50 125 2013 guidance: 140 - 170 USc / lb copper 2013 guidance: 58 – 62 USc / lb zinc 45 100 2010 2011 2012 2013F 2010 2011 2012 2013F Sepon C1 costs Sepon C1 costs USc / oz gold USc / lb copper

  17. Slide 17: C1 cost performance (continued)

    C1 cost performance (continued) Golden Grove C1 costs Golden Grove C1 costs USc / lb copper USc / lb zinc 330 50 40 2013 guidance: 45 – 55 USc / lb zinc 300 30 20 270 2013 guidance: 280 – 310 USc / lb copper 10 240 0 2010 2011 2012 2013F 2010 2011 2012 2013F Rosebery C1 costs Golden Grove zinc C1 co

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