Om Holdings Ltd. · ASX:OMH
Om — Euroz Securities 2008 Rottnest Island Conference
37 slides from Om's conference presentation, Mar 12, 2008
Slide 1: Investor Presentation cover letter to ASX
OM HOLDINGS LIMITED (ARBN 081 028 337) For personal use only NO. OF PAGES LODGED: 37 12 March 2008 Company Announcements Office Australian Securities Exchange Limited 4th Floor 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam INVESTOR PRESENTATION Please find attached a copy of a presentation to be d
Slide 2: Background Profile of OM Holdings Limited
BACKGROUND PROFILE OF OM HOLDINGS LIMITED For personal use only OMH listed on the ASX in March 1998 and has its foundations in metals trading – incorporating the sourcing and distribution of manganese ore products and subsequently in processing ores into ferro-manganese intermediate products. The OM
Slide 3: OMH – An Overview, March 2008
For personal use only ASX Code: OMH Website: www.omholdingsltd.com OMH – An Overview March 2008 Slide 1
Slide 4: Disclaimer Notice
Disclaimer Notice This presentation contains certain forward-looking information and forecasts. Such For personal use only forecasts, projections and information are not a guarantee of the Group future performance and include unknown risks and uncertainties. Accordingly, the actual results and devel
Slide 5: Agenda
For personal use only Agenda • Overview • Manganese Operations – Bootu Creek Manganese Mine – Qinzhou Ferro Alloy Smelter • Marketing • Summary 3 Slide 3
Slide 6: Overview
For personal use only Overview • Singapore based commodity house – Listed on ASX since March 1998 • China focussed marketing division – Ores, alloys, metals • Integrated manganese producer – Bootu Creek Manganese Mine – Qinzhou Ferro-alloy Smelter 4 Slide 4
Slide 7: Corporate Structure
For personal use only Corporate Structure OM Holdings Limited Function - Holding Company OM Manganese Limited OM Holdings (BVI) Ltd Territory Resources Ltd Function - Mining and Processing Ore Function - Trading Company Holding Function - Investment 29 mil shares - 11% OM Manufacturing (China) Ltd F
Slide 8: Capital Structure
For personal use only Capital Structure • Fully paid ordinary shares at 31/12/07 227.5 million • Unlisted options at 31/12/07 19.3 million • Market Cap (Undiluted) A$546 million Based on share price of A$2.40/share as at 5 March 08 • Major Shareholders Board/Management ~ 20% HSBC Custody Nominees ~
Slide 9: 2007 Highlights
2007 Highlights NPAT A$ mil Six Months Six Months Full Year Full Year For personal use only Ended Ended Ended Ended 30/6/07 31/12/07 31/12/07 31/12/06 Trading 20.5* 21.7 42.2 3.2 OM Manganese (7.2) 14.9 7.7 (33.0) OM Qinzhou 4.6 7.1 11.7 (1.6) OM Holdings (2.7) (2.0) (4.7) (1.1) Total 15.2 41.7 56.9
Slide 10: Overview - Financial Returns
Overview - Financial Returns Revenue Dividends For personal use only A$ Cents Per Share 350 7.0 300 6.0 A $ M illio ns 250 5.0 200 4.0 3.0 June Half 150 100 2.0 1.0 Dec Half 50 0.0 0 2003 2004 2005 2006 2007 Year 2003 2004 2005 2006 2007 Year Basic earnings/(Loss) per Profit/(Loss) attributable to s
Slide 11: Value Chain
For personal use only Value Chain Chinese Ferro-Alloy Smelters 550kt Mn +350kt Mn Singapore Marketing 400kt Mn Bootu Creek & Logistics Third Party Mines Manganese Mine 700kt Mn +50kt Mn 150kt Mn Asian/World Steel Market Qinzhou Ferro- Alloy 40kt Ferro Alloy Smelter • Existing mine production level –
Slide 12: Manganese - Bootu Creek
For personal use only Manganese - Bootu Creek • Highlights • Overview • Operations • Growth • Exploration 10 Slide 10
Slide 13: FY07 Highlights – Bootu Creek
For personal use only FY07 Highlights – Bootu Creek • Record production of 516,448 t @ 42.2% Mn • Full year profit A$7.7 mil; second half A$14.9 mil • Strong cashflows allowed A$18.83 mil repayment of debt • Further A$5.00 mil repaid in January 2008; project debt free • Rectification works completed
Slide 14: Bootu Creek Flyover
For personal use only Bootu Creek Flyover 12 Slide 12
Slide 15: Bootu Creek – Mn Production
For personal use only Bootu Creek – Mn Production Record Monthly Manganese Production Production 70,000 59,404 t Rectification 60,000 Works Tie In Temp Reclaim Wet Season Bin Installed Effected 50,000 40,000 Dry T's 30,000 20,000 10,000 - 6 7 7 6 7 7 6 7 06 07 07 7 6 7 08 07 06 06 07 07 08 -0 -0 -0
Slide 16: Bootu Creek - Mining
Bootu Creek - Mining - FY2007 4.4 mil bcm’s For personal use only - Increasing to +8 mil bcm’s / year - Low strip ratio ~ 10.0t waste:1t ore - Good ore consistency & widths - Multiple mining options - Two – three pits simultaneously - Scraper fleet mobilised to pre-strip new pits - Macmahon’s mobili
Slide 17: Bootu Creek - Process
For personal use only Bootu Creek - Process Ore Crusher - Ore crushed ~ 2.0 mtpa @ 24% Mn - Production capacity (Lumps & Fines) Stockpile - Design Rates ~ 550kt pa Scrubber - Annualised Jan08 +700kt pa - Product grade 43% Mn <75 mm and >8 mm <8 mm and >0.6 >0.5 mm <0.5 mm <0.6 Drum Cyclone Tailings
Slide 18: Bootu Creek – Rectification Complete
Bootu Creek – Rectification Complete Project Highlights For personal use only – Project Aim: Rectify design defects in the crushed ore handling system – Project scope: • New ROM bin • New reclaim bin • Modified conveyor systems • Scrubber Trommel - Deferred – Project budget: A$5.3 million – Complete
Slide 19: Bootu Creek – Logistics Upgrades
Bootu Creek – Logistics Upgrades Road haulage For personal use only – 3rd triple road train mobilised; spare capacity available Rail haulage – Capacity for 700kt pa under existing service – Commitment to extend rail siding length to accommodate triple loco trains – 1 million tpa haulage capacity Por
Slide 20: Bootu Creek – Expansion Options
Bootu Creek – Expansion Options • Baseline Production: 700ktpa For personal use only – 700kts based on improved availabilities and operating practices • Rejects Retreatment: ~ 780 ktpa – Recrush and retreatment of rejects material to produce 40% fines product – Timing – scoping study Q2 2008 – Capex
Slide 21: Bootu Creek – Tenements
For personal use only Bootu Creek – Tenements 2872 km2 Tenement Holding Helen Springs Project Renner Springs Project 19 Slide 19
Slide 22: Bootu Creek – Resource Base
For personal use only Bootu Creek – Resource Base 2007 RC Drilling Bootu Creek Manganese Project EL10412 23.0km delineation 6.6km exploration Chugga North 2.9Mt @ 25.1% Resource/Reserve Chugga South 3.1Mt @ 24.5% (as at December 2007, >18%Mn) Gogo 2.9Mt @ 28.2% Shekuma 2.9Mt @ 27.6% Resource: 17.75m
Slide 23: Bootu Creek – 2007 Reconnaissance
Bootu Creek – 2007 Reconnaissance Reconnaissance Drill Sections For personal use only Sect. Prospect Depth Mn Mineralisation From (m) Length Mn% L02_1 Nose 36 24 6 20.6 L02_2 Nose 84 39 2 25.2 L02_3 Nose 78 62 3 23.1 L03_1 Nose 30 15 2 19.8 L03_2 Nose 78 61 5 26.5 Chugga L04_1 Nose 72 26 8 15.0 Tour
Slide 24: Bootu Creek – 2008 Drill Targets
For personal use only Bootu Creek – 2008 Drill Targets – 45,000m RC drilling to expand resources and reserves at Bootu Creek Cu Chugga North – 7,500m RC drilling at Renner and Helen Springs – 2,500m RC drilling to test extents 2008 Drilling Cu and delineate an inferred Cu Muckaty Shekuma resource To
Slide 25: Bootu Creek – Copper Prospects
Bootu Creek – Copper Prospects Bootu Creek - Selected Copper Intersections For personal use only Prospect Hole ID from (m) length (m) %Cu Looa Bore Tourag SE BCRC1030 63 4 0.53 BCRC1034 21 4 1.17 BCRC1060 24 4 0.66 Chugga Fold BCRC1086 24 5 0.78 Chugga North BCRC1173 18 9 0.55 32 4 0.71 BCRC1174 29
Slide 26: Bootu Creek – Spend Rate
For personal use only Bootu Creek – Spend Rate Reserve / Resource Comparison 30 $7.0 mil planned spend 25 $3.6 mil $2.2 mil spend 20 spend Milion t's 15 10 5 - (5) 2005 2006 2007 2008 Reserve Resource Ore Mined Exploration “Bang for Buck”: approx 1 t Mn ore per $1 spent. 2008 Budget $7 million Mediu
Slide 27: Smelter - OM Qinzhou
For personal use only Smelter - OM Qinzhou • Highlights • Competitive Advantage • Expansion 25 Slide 25
Slide 28: FY07 Highlights - Qinzhou
For personal use only FY07 Highlights - Qinzhou Full Year 2007 • Record production of 38,101 tonnes of High Carbon Ferro Manganese (“HC FeMn”). • Record operating profit after tax of A$11.7 million for the full year; A$7.1 million in second half. 26 Slide 26
Slide 29: OM Qinzhou
OM Qinzhou – Investment to date - US$8.3 million For personal use only – Staff numbers - 250 employees – Three furnaces - 55k tpa ferro alloy – Low cost producer – Debt free – Strategic location – Proximity to New Integrated Steel Mill – Expansion Option – Fines Sinter Plant – Expansion Option – Six
Slide 30: Trading and Marketing
For personal use only Trading and Marketing • Highlights • Manganese Ore price • Manganese Demand 28 Slide 28
Slide 31: FY07 Highlights - Trading
For personal use only FY07 Highlights - Trading • Increase in full year profit after tax to A$42.2 million • Record volumes of chrome and manganese ores traded; 20% higher than preceding year • Increases in ore and alloy prices greatly enhanced margins; particularly in second half • Consistent produ
Slide 32: Manganese Ore Price 2007
For personal use only Manganese Ore Price 2007 Manganese Price - CIF China 43-45% Mn 12.00 11.00 10.00 9.00 8.00 US$dmtu 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 7 07 07 7 07 7 07 7 7 08 8 8 7 7 8 7 -0 -0 -0 -0 -0 -0 r-0 l-0 -0 r-0 -0 n- n- g- p- n- ay ov ec ar b ar b ct Ju Ap Ap Ja Ju Au Se Ja Fe Fe
Slide 33: Crude Steel & Mn Alloy Demand
Crude Steel & Mn Alloy Demand World Crude Steel Production For personal use only 1,800 Forecast Annual Growth 4.9% • Global steel production forecast 1,600 1,400 to grow at 4.9% to 2012 1,200 970 • Chinese steel production Million Metric t's 1,000 800 784 849 forecast to grow at 8.4% to 2012 600 400
Slide 34: Manganese Ore Market
Manganese Ore Market Company Country 2004 2005 2006 2007 2008 2009 2010 2011 2012 % Prod'n Of CY08 For personal use only Existing Mn Ore Producers Chiatura Georgia 113 228 220 300 450 500 500 500 500 1.1% ENRC Kazakhstan 750 829 832 1,000 1,000 900 900 900 900 2.5% OGOK Ukraine 1,302 1,300 1,350 1,3
Slide 35: Manganese Ore Balance
Manganese Ore Balance • Global Mn ore consumption For personal use only Manganese Ore Market Balance And Price rose by 12% in 2007 1,500 16.00 • Ore shortages and supply 14.00 consolidation are expected 1,000 Market Balance (Contained Mn ts) to keep market in deficit for 12.00 at least 3 years 500 1
Slide 36: Summary
Summary • Manganese investment vehicle For personal use only • High and rising prices as market shortages continue • Integrated producer from mine to steel manufacturing market • Long life potential at Bootu and further upside at Renner and Helen Springs • Growth potential in production at Bootu and
Slide 37: OMH – An Overview
For personal use only ASX Code: OMH Website: www.omholdingsltd.com OMH – An Overview March 2008 Slide 35
OM Holdings — Euroz Securities 2008 Rottnest Island Conference on 6ix