Mineral Resources Limited · ASX:MIN
Mineral Resources — Shareholder Meeting (November 2018)
28 slides from Mineral Resources's shareholder meeting presentation, Nov 22, 2018
Slide 1: 2018 Annual General Meeting Managing Director's Presentation
For personal use only 2018 Annual General Meeting Managing Director’s Presentation 22 November 2018
Slide 2: FY18 Results and Highlights
For personal use only FY18 Results and Highlights
Slide 3: Occupational Health & Safety
Occupational Health & Safety For personal use only Safety is embedded in our culture and is fundamental to our future success – delivery 1of our safety objectives is a core value and a clear expectation from our senior management Total Recordable Injury Frequency Rate (TRIFR) TRIFR 2.491 16.00 14.52
Slide 4: FY18 Financial Performance
FY18 Financial Performance For personal use only Revenue 16% Diluted EPS 35% Capex 57% $1.7bn 145.3cps $357.0m EBITDA 1 Dividends Net Assets 9% 20% 15% $506.7m declared 65cps $1.30bn NPAT Operating Return on 3 35% 41% 2 $271.8m cash flow invested 18.3% $538.7m capital Notes: 1. FY17 Normalised EBITD
Slide 5: FY18 Mining Services Performance
FY18 Mining Services Performance Crushing Construction Energy For personal use only • 134Mt crushing capacity • Wodgina – spodumene concentrate • 2,700 solar panels installed across Perth ― Turned off Mining Area C plant construction commenced offices & workshops ― Switched Carina to Koolyanobbing •
Slide 6: Mining Services Business Model
Mining Services Business Model For personal use only Traditional Business Model Profit Share Business Model Drill Blast and Mining, 38% Port Costs, 2% Crushing, 9% Mining Services, 91% Mine to Port Haulage, 8% Shipping, 5% Management and Site Services, 7% Processing, 31% FY18 Crushing Revenue $AU193
Slide 7: Track Record of Growth
Track Record of Growth Mining Services Business Model Trend For personal use only 100% % of Mining Services Revenue 80% 60% Traditional Crushing Contracts 40% Profit Share Projects 20% 0% FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Commodity exports (million tonnes per annum) 20.00 15.00 13.30
Slide 8: FY18 Commodity Performance
FY18 Commodity Performance For personal use only Iron Ore Lithium (DSO) Lithium (Spod) Iron Valley & Carina Wodgina Mt Marion JV4 • Exported: 9.3Mt • Exported: 3.5Mt DSO • Exported: 382Kt spodumene • Avg Revenue: US$50.1/t • Avg Revenue: US$110.3/t ― 209Kt of 6% • CFR Costs: AUD$63.9/t • Costs: AUD$
Slide 9: FY19 Outlook and Beyond
For personal use only FY19 Outlook and Beyond
Slide 10: 2018 Annual General Meeting
2018 Annual General Meeting For personal use only 1 • FY19 looks to be the most important year in the history of MRL • Setting Wodgina Lithium for the next 30+ years • Positioning the business with pillars that have 20-30 year time horizons • Strengthened succession planning • Bringing online a rang
Slide 11: FY19 Mining Services Outlook
FY19 Mining Services Outlook Crushing Construction Energy For personal use only • 14Mtpa new contract crushing • Wodgina spodumene concentrate • Energy Resources heavy focus on finding gas in capacity confirmed plant – Train 1, 2 & 3 Perth Basin. Drilling to commence CY19 ― Wodgina 5.6Mtpa commissio
Slide 12: FY19 Planned Commodity Production
FY19 Planned Commodity Production Iron Valley Iron Ore Koolyanobbing Iron Ore For personal use only • Export: approx. 7Mt • Export: >3.5Mt ― Lump: 1.5Mt ― Lump: 3.9Mt ― Fines: 2.0Mt ― Fines: 3.1Mt • High discounts as well as penalties • Annual run rate: 6Mtpa for impurities • Delayed approvals will
Slide 13: FY19 Guidance
FY19 Guidance For personal use only EBITDA MINING SERVICES $280 – $320 million Mining Services EBITDA expected to be $240- $260 million CAPITAL SPEND Approx. $490 million [Wodgina, Mt Marion, Koolyanobbing, Yellow Goods] KEY ASSUMPTIONS 1. Excludes potential benefits from part disposal of Wodgina 2.
Slide 14: Wodgina Agreement with Albemarle
Wodgina Agreement with Albemarle For personal use only • Entered into a non-binding Exclusivity Agreement with Albemarle Corporation to buy 50% of Wodgina Lithium with an enterprise value of US$2.3 billion (100% terms) • The marriage of Albemarle and Mineral Resources creates an outstanding business
Slide 15: Future Direction and Developments
For personal use only Future Direction and Developments
Slide 16: Pilbara Infrastructure Project
Pilbara Infrastructure Project An economic transport system mine-site to port for MRL operations and third party users For personal use only • Progressing development of the Pilbara Infrastructure initiative UTAH POINT BERTH 1/2 ― Innovative, low-cost, light-weight rail system ― Fully automated port
Slide 17: Kumina Iron Ore Acquisition
Kumina Iron Ore Acquisition For personal use only • Recently secured the asset from BCI and progressing to closing out the transaction • Currently progressing all documentation for approval to mine • The project is a natural fit to our existing Pilbara commodities business and we expect it to provid
Slide 18: Graphite – McIntosh Project
Graphite – McIntosh Project For personal use only • Made good progress with our partners, Hexagon, on all fronts for the McIntosh project: ― Finalised JV agreement1 ― Completed drilling programme prior to wet season and results will be published once they come to hand ― We continue to see this as a
Slide 19: Transitioning to a Lower Carbon World – Clean Energy
Transitioning to a Lower Carbon World – Clean Energy Working to reduce reliance on fossil fuels For personal use only • Connecting to natural gas by pipeline where possible • For remote sites through trucked LNG • Exploring use of hydrogen, solar panels and battery technology Mount Marion power stat
Slide 20: Gas Energy Solutions
Gas Energy Solutions For personal use only • Secured all Empire Oil & Gas assets1 • Government has extended our tenure by 2-3 years to give us the opportunity to properly explore acreage • 8,000 square kilometres of exploration tenements in the Perth Basin • Red Gully Processing Plant put on care an
Slide 21: Innovation
For personal use only Innovation
Slide 22: Bulk Ore Shuttle System – (BOSS)
Bulk Ore Shuttle System – (BOSS) A low-cost, lightweight rail system designed to unlock stranded deposits and reduce transport costs from ore body to processing hub or coastal port facility For personal use only • BOSS will be a long-term revenue generator • It will unlock a range of stranded and un
Slide 23: Carbon Fibre Dump Trays
Carbon Fibre Dump Trays The benefits are substantial with more than a 10% payload increase for a 150t truck For personal use only • The final tray design is complete and we can now make economic units • The 150t capacity carbon fibre tray will provide a payload increase of approximately 11% over a s
Slide 24: Synthetic Graphite
Synthetic Graphite For personal use only • MRL is in partnership with Hazer1 • Our agreement allows us to take the graphite technology through to commercial production • We are about to commission the pilot plant which will be a continuous feed operation • Once proven we will finalise the design of
Slide 25: Community
For personal use only Community
Slide 26: Community Support
Community Support We support the local community through a wide range of sponsorships, scholarships and donations For personal use only Long-term Partnerships Donations • City to Surf • Duncraig school students • Everyday Hero • Kalgoorlie-Boulder Chamber & Industry • Kimberly Kids Project • Kwinana
Slide 27: 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 with respec
Slide 28: 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 www.mineralresources.com.au 28
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