Saudi Arabian Mining Co. · TADAWUL:1211
Saudi Arabian Mining — Q3 2021 Earnings Presentation
37 slides from Saudi Arabian Mining's earnings presentation, Nov 1, 2021
Slide 1: Growing a Saudi Global Mining Giant
Growing a Saudi Global Mining Giant Saudi Arabian Mining Company (Ma’aden) Investor Presentation – Q3 2021 Results 1 st November 2021
Slide 2: Frederik Michaelsen, Senior Investor Relations Advisor
Frederik Michaelsen Senior Investor Relations Advisor 2 of 38
Slide 3: Disclaimer
Disclaimer This presentation contains statements that are, or may be deemed to be, forward looking statements, including statements about the beliefs and expectations of the Saudi Arabian Mining Company Ma’aden (the "Company"). These statements are based on the Company's current plans, estimates and
Slide 4: Abdulaziz A. Al Harbi, Chief Executive Officer
Abdulaziz A. Al Harbi Chief Executive Officer (A) 4 of 38
Slide 5: ESG (Environmental, Social & Governance)
ESG (Environmental, Social & Governance) 5 of 38
Slide 6: ESG Strategy – Key Highlights
ESG Strategy – Key Highlights Aspiration to become a local ESG role model • Become a local industrial role model in KSA contributing to KSA's ESG objectives • Reduce Scope 1 & 2 Greenhouse gas (CO2e) emissions 60% by 2040 • Focus on renewable energy sourcing and consider Scope 3 emissions in future
Slide 7: Q3 2021 Update
Q3 2021 Update 7 of 38
Slide 8: Q3 2021 - Production Update
Q3 2021 - Production Update Ammonia down due to unplanned shut-downs; Gold down due to lower grades • Ammonium Phosphate production was 1,272kt (down 10% both, q-o-q and y-o-y) • Ammonia production was 329kt (down 8% q-o-q and down 45% y-o-y) • Aluminum production was 243kt (down 2% q-o-q and down 3
Slide 9: Unplanned shutdowns in Q3 2021
Unplanned shutdowns in Q3 2021 Avoiding further unplanned shutdowns is a top priority Unscheduled shutdown at MPC (Phosphate) • Seawater line leakage • Duration was 20 days • Repairs completed in September Fire at MPC (Ammonia) on May 20th • Repairs dragged into late Q3 • Duration in Q3 was 87 days
Slide 10: Market Prices & Outlook
Market Prices & Outlook 10 of 38
Slide 11: Phosphate & Ammonia Prices
Phosphate & Ammonia Prices Phosphate price up in Q3, Ammonia price flat $700 $700 $600 $600 $500 $500 $400 $400 $300 $300 $200 $200 $100 $100 $0 $0 DAP (avg. KSA FOB) Ammonia (avg. ME FOB) 11 of 38
Slide 12: Aluminum & Alumina Prices
Aluminum & Alumina Prices Both, Aluminum and Alumina prices increased further $3,000 $700 $600 $2,500 $500 $2,000 $400 $1,500 $300 $1,000 $200 $500 $100 $0 $0 LME Cash Aluminum Price Alumina Price Index (API) 12 of 38
Slide 13: Gold & Copper Prices
Gold & Copper Prices Gold price down in Q3; Copper price flat $2,500 $12,000 $10,000 $2,000 $8,000 $1,500 $6,000 $1,000 $4,000 $500 $2,000 $0 $0 Gold in $/oz Copper in $/kt 13 of 38
Slide 14: Yaser A. Barri, SVP Finance & Chief Financial Officer
Yaser A. Barri SVP, Finance & Chief Financial Officer (A) 14 of 38
Slide 15: Q3 2021 - Financial Performance
Q3 2021 - Financial Performance 15 of 38
Slide 16: Q3 2021 - Consolidated Key Financial Results
Q3 2021 - Consolidated Key Financial Results 16 of 38
Slide 17: Q3 2021 Net Profit – Quarter on Quarter Comparison
Q3 2021 Net Profit – Quarter on Quarter Comparison Net profit up 19%, mainly due to the price effect Movement in net profit by line items (q-o-q) Profit / (Loss) attributed to the shareholders’ of the parent company Profit / (Loss) attributed to minority interest 10 0 -346 587 1,600 1,349 1,272 1,10
Slide 18: Q3 2021 Net Profit – Year on Year Comparison
Q3 2021 Net Profit – Year on Year Comparison A net profit in Q3 2021, compared to net loss in Q3 2020 Movement in net profit by line items (y-o-y) Profit / (Loss) attributed to the shareholders’ of the parent company Profit / (Loss) attributed to minority interest -263 36 -377 1,600 2,303 1,272 328
Slide 19: Q3 2021 - Consolidated Sales and EBITDA by Segment
Q3 2021 - Consolidated Sales and EBITDA by Segment Phosphate accounts for 53% of Group EBITDA, Aluminum for 40%, Gold for 7% Consolidated Phosphate vs. vs. vs. vs. Q3-21 LY Qtr. Prev. Qtr. Q3-21 LY Qtr. Prev. Qtr. Sales (SRmn) 6,699 44% 10% Sales (SRmn) 3,646 60% 16% EBITDA* (SRmn) 3,034 106% 10% EB
Slide 20: Quarterly EBITDA and EBITDA margins
Quarterly EBITDA and EBITDA margins Record EBITDA in Q3 2021; Margins stable 45% 45% 40% 36% 33% 33% 32% 30% 29% 27% 25% 3,034 2,758 2,193 2,003 1,392 1,439 1,416 1,470 1,310 1,091 1,069 Q1-2019 Q2 Q3 Q4 Q1-2020 Q2 Q3 Q4 Q1-2021 Q2 Q3 EBITDA (mn SR) EBITDA Margin 20 of 38
Slide 21: Q3 2021 - Consolidated statement of cash flows
Q3 2021 - Consolidated statement of cash flows Healthy cash flow from operating activities 1,466 8,233 1,720 -265 7,031 -442 -1,027 6,236 5,755 -174 -731 -64 Income Non Change Others Capex / Projects - Debt Lease Cash bal. before cash items in WC Cash Investment AP & acr. Cash movements liability Ca
Slide 22: Financial Ratios
Financial Ratios Net debt to EBITDA ratio continues to decrease 22 of 38
Slide 23: Ma'aden Growth Capex ($Mn)
Ma’aden Growth Capex ($Mn) Ammonia 3 and Mansourah-Massarah to be completed in 2022 1427 1237 917 899 784 361 213 23 2018 2019 2020 2021E 2022E 2023E 2024E 2025E Phosphate Aluminium Gold 23 of 38
Slide 24: Q3 2021 - Operational Performance
Q3 2021 - Operational Performance 24 of 38
Slide 25: Phosphate & Ammonia: Production & Sales in Q3 2021
Phosphate & Ammonia: Production & Sales in Q3 2021 The fire in Q2 affected Q3 numbers Ammonium Phosphate Fertilizer Ammonia 1,600 800 1,407 1,375 1,408 1,353 1,272 1,317 603 1,200 600 800 400 359 329 328 400 200 99 87 0 0 Q3 2021 Q2 2021 Q3 2020 Q3 2021 Q2 2021 Q3 2020 Production (in kmt) Sales (in
Slide 26: Aluminum & Alumina: Production & Sales in Q3 2021
Aluminum & Alumina: Production & Sales in Q3 2021 Both, Alumina and Aluminum production slightly down Aluminum Alumina 300 600 243 241 249 249 251 251 489 472 500 458 250 200 400 150 300 100 200 106 100 67 50 34 0 0 Q3 2021 Q2 2021 Q3 2020 Flat Rolled Products - Coil Q3 2021 Q2 2021 Q3 2020 Producti
Slide 27: Gold & Copper: Production & Sales in Q3 2021
Gold & Copper: Production & Sales in Q3 2021 Gold production down due to lower grade Gold Copper 100 91 91 25.0 80 82 75 75 20.0 19.0 18.8 75 16.5 16.2 16.0 15.9 15.0 50 10.0 25 5.0 0 0.0 Q3 2021 Q2 2021 Q3 2020 Q3 2021 Q2 2021 Q3 2020 Production (in koz) Sales (in koz) Production (in kmt) Sales (in
Slide 28: Abdulaziz A. Al Harbi, Chief Executive Officer
Abdulaziz A. Al Harbi Chief Executive Officer (A) 28 of 38
Slide 29: Updates on Ma'aden's Projects
Updates on Ma’aden’s Projects 29 of 38
Slide 30: Fertilizer Projects
Fertilizer Projects Major capacity expansions are under way Ammonia 3 • Expected to produce 1,1kmt p.a. • US$1,113mn Budget • Completion: Q1 2022 Phosphate 3 • Expected to produce 3,0kmt p.a. • US$4,219mn Budget • Completion: 2025 (Phase 1) 2027 (Phase 2) Remediation at Wa’ad Al-Shamal • Phosphate p
Slide 31: Gold & Base Metal Projects
Gold & Base Metal Projects On track to achieve the long term target of producing 1mn ounces of gold MMGP • Expected to produce 250k ounces p.a. • US$880mn Budget • First gold: Q2 2022 • Project Completion: Q4 2022 Mahd Expansion • Expected to produce 222k ounces p.a. (average over life of mine) • US
Slide 32: Q&A
Q&A 32 of 38
Slide 33: Thank You
Growing a Saudi Global Mining Giant Thank You
Slide 34: Appendix
ma‘aDEN Poston Appendix
Slide 35: EHSS Performance
EHSS Performance Ma’aden compares favorably with peers 1.0 1.0 0.8 0.8 0.6 0.6 0.37 0.4 0.4 0.27 0.30 0.22 0.22 0.18 0.2 0.14 0.2 0.0 0.0 2018 2019 2020 Q1 2021 Q2 2021 Q3 2021 2016 2017 2018 2019 2020 2021 (Rolling) Ma'aden Contractor Combined Ma'aden ICMM Newmont Rio Tinto Barrick BHP 35 of 38
Slide 36: COVID-19 Update
0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 January 01 January 06 January 11 January 16 January 21 January 26 January 31 February 05 February 10 February 15 February 20 February 25 March 02 March 07 Overall March 12 March 17 COVID-19 Update March 22 This is calculated by the following formula: March 27
Slide 37: Debt repayment profile
Debt repayment profile Scheduled debt repayment profile (in USD millions) 2,000 MIC MGBM MWSPC MBAC MRC MAC MPC Pre-Refinance Repayment 1,800 1,600 1,400 1,200 1,000 800 600 400 200 - 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 37 of 38
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