Saudi Arabian Mining Co. · TADAWUL:1211
Saudi Arabian Mining — Q1 2023 Earnings Presentation
28 slides from Saudi Arabian Mining's earnings presentation, Jul 22, 2023
Slide 1: Investor Presentation — Q1 FY23 Results
MAADEN > UaLop Saudi Arabian Mining Company (Ma’aden) Investor Presentation — Q1 FY23 Results
Slide 2: 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 Saudi Arabian Mining Company (Ma‘aden) (the "Company"). These statements are based on the Company's current plans, estimates and p
Slide 3: Presenters
PRESENTERS >- Robert Wilt Louis Irvine Abdulaziz Alnaim Chief Executive Officer Chief Financial Officer Investor Relations Director MAADEN Pr uaLen
Slide 4: Q1-FY23 Performance
Q1-FY23 PERFORMANCE 2 =X Q rm Q_ Safety/EHSS (o) VY: @ ie a = Revenue Adj.. EBITDA’ Fatal contractor incident at Ma’aden Aluminium in March 2023 sar8.05bn sar 267 on AIFR 0.12 Q1-FY23 © ; “: Ss o., Operational Resilience Net Profit? EPS —— —— Record Phosphate volumes sarQ.42bn sarO.1 7 100+ km drill
Slide 5: Average Realized Commodity Prices
AVERAGE REALIZED COMMODITY PRICES Prices easing off exceptionally strong period in 2022 Ammonia & DAP Aluminium Gold $1,200 $3,700 $2,100 $1,000 $3,200 $1,900 $800 $1,700 $2,700 $600 $1,500. $2,200 $400 $1,300 $200 $1,700 $1,100 $0 $1,200 $900 2S @ GC CS GG GC GM gw L SS CS SP OP GC oC ww Go w SS 2
Slide 6: Leading Cost Profile: Strong Through-the-Cycle Margins
LEADING COST PROFILE: STRONG THROUGH-THE-CYCLE MARGINS J » We / Phosphate BU Aluminium BU BM&NM BU DAP cost curve" Ammonia cost curve" Aluminium cost curve? Gold cost curve? os. j —— > vatee _ 203-27 WE v _ wee sano os.an ——_ w xaoen @ Usto.n o—O1 e—Q2. o—Q3—ee—Q o—O1 e—Q2- o—Q3—ee—Q. Q'}-— e—_Q2—2
Slide 7: Further Progress on Our Growth Strategy
FURTHER PROGRESS ON OUR GROWTH STRATEGY QG Operational Progress Strategic Updates Ammonia ene Granular Rg 9% YoY rtd 34% YoY Completed investment in Ivanhoe Electric (9.9% of common shares for US$126.4mn)' #100 Olvanhoe Higher fertilizer volumes Drilling at all-time high run-rate in Q1- FY23 Finaliz
Slide 8: Environment, Sustainability, and Governance
ENVIRONMENT, SUSTAINABILITY, AND GOVERNANCE ~3.2M tonnes AnnualCarbon fj Emission [| Avoidance’ GlassPejint ~1 2M m3 Water Recovery / 65 per year? ©) CCU (Gulf Cryo) * Prefeasibility study stage Solar steam (GlassPoint) * Prefeasibility study stage * Small scale pilot under evaluation * Land selecti
Slide 9: 0.4 0.37 0.3 0.22 0.20 0.2 0.13 0.12 0.1 2019 2020 2021 22 Q1
0.4 0.37 0.3 0.22 0.20 0.2 0.13 0.12 0.1 0 2019 2020 2021 2022 Q1 2023
Slide 10: Financial Results
FINANCIAL RESULTS ‘ : Louis Irvine Chief Financial Officer
Slide 11: Q1-FY23 Financial Results
Q1-FY23 FINANCIAL RESULTS Softening commodity prices and one-offs 0.37 QoQ ' YoY 1 (SAR million) Q1-FY23 Q4-FY22 | Q1-FY23 Q1-FY22 i — ~15% \ -10% 1 -33% ' -51% EBITDA i -23% ' -39% \ Adj. EBITDA‘ 1 -59% ! -81% Net profit = ' -59% ' -81% EPS? (sar) ' i 1 -23% \ -58% | Adj. EPS" (sar) i} Highlights *
Slide 12: EBITDA Bridge (Q1-FY22 to Q1-FY23)
EBITDA BRIDGE (Q1-FY22 to Q1-FY23) Lower commodity pricing and one-off adjustments Highlights 4,408 Inventory drawdown: SAR 605 * Lower prices of all products except Gold on * Higher sales volumes except Aluminium due to pot relining & 2.57% _ 2,669 = ———— 784 on na * Inventory drawdown of SAR - : 2
Slide 13: Strong Cash Generation from Operating Activities
STRONG CASH GENERATION FROM OPERATING ACTIVITIES Cash balance up 4% from December 2022 16,373 Cash at Jan 1, 2022 (SAR million) D&A: SAR 1,244 Finance charges accrued: SAR 604 Share in net profit of JV: SAR (102) Income before zakat - Finance cost: SAR 386 - Employee related: SAR 67 ° - Zakat & taxe
Slide 14: Deleveraging Balance Sheet and Reducing Net Debt
DELEVERAGING BALANCE SHEET AND REDUCING NET DEBT Long-term Borrowing Cash & Cash Equiv. FY20 GED 4.5.3 D5” . . Ww FY21 GND 46.8 cau; Highlights - | FY22 GHD 41.2 CED 16. * Financial position strengthened Q1-FY23 GlD.05 GED 17.0 C Pim Tie See SS Net Debt Net Debt/EBITDA * Netdebt down by >: FY20 GED
Slide 15: Phosphates
PHOSPHATES Contributed circa 67% of sales Financial performance 0 YoY “ ” m3 * “ 2,436 3,246 EBITDA 2,436 3,145 PETE Anat 45% 50% 45% 57% Production performance QoQ u YoY Q1-FY23 Q4-FY22 Variance Q1-FY23 Q1-FY22 Variance 1,534 1,272 +21% 1,534 1,143 +34% 774 838 774 711 +9% Sales volumes 1,477 1,289
Slide 16: Phosphate EBITDA Bridge (YoY)
PHOSPHATE EBITDA BRIDGE (YoY) Higher volumes offsetting softer pricing environment Inventory drawdown: SAR 300 a Highlights - Bites) 1,377 * Lower prices of DAP and Ammonia, offset by higher 27 2,436 sales volumes. ~687 * Lower price of Molten Sulfur F due to normalization of 95 479 market | | “6 1,
Slide 17: Aluminium
ALUMINIUM Contributed circa 26% of sales Financial performance QoQ YoY (SAR million) FY23 | Q4-FY22 23 | QU-FY22 Jy, iance 2,080 2,313 2,080 2,797 Production performance Q1-FY23 | Q4-FY22 QoQ 1 Variance e 2 so | -10x_| 185 220 | -t6x_| | 23x -<_| za Sales volumes Cs. «» BB» x Ce : » EE: ». =a FRB 7
Slide 18: Aluminium EBITDA Bridge (YoY)
ALUMINIUM EBITDA BRIDGE (YoY) Softer commodity prices, higher raw material costs, and one-offs 4116 Inventory ™ drawdown: “305 || a4 SAR 235 127 45 212 “ne Zz ~105 493, -281 EBITDA Price Major raw Sub-total Volume Cost of sales* —Others** Adj, EBITDA One-off & EBITDA 1-22 effect material costs effec
Slide 19: Base Metals & New Minerals
BASE METALS & NEW MINERALS Contributed circa 7% of sales Financial performance AAT a 09 YoY Highlights - — j sates | 541 599 Ea 541 581 * Higher average realized prices QoQ and YoY * Mansourah-Massarah on track for commercial 215 259 -17% production and full year guidance maintained | sp | * Lower p
Slide 20: Base Metals & New Minerals EBITDA Bridge (YoY)
BASE METALS & NEW MINERALS EBITDA BRIDGE (YoY) Decrease of 17% YoY due to lower production, partially offset by higher realized price wo rr) 20 22 Highlights - * Gold prices maintain up trend - as Se a) a iad * Negative volume effect due to lower mine grades from some older mines EBITDA Price Others
Slide 21: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Strategically deploying and investing capital for long-term sustainable growth Alignment with Vision 2030 Strengthen KSA's presence in the global supply chain, contribute to economic diversification and growth, and solidify its position in the metals of the future Commit
Slide 22: Outlook
OUTLOOK Robert Wilt Chief Executive Officer
Slide 23: Near-Term Growth Projects
NEAR-TERM GROWTH PROJECTS =e co Mahd Ad Dhahab Expansion = 200k ounces per annum 2026 2027 Mansourah-Massarah . ® 250k ounces per annum + _EPCM awarded for Aluminium Phase 1 i + Line 1&2 expansion + Ma’aden’s largest gold project H ino Phosphate 3 = 90 KMT per annum Phase 1 - 2025 _— + Inaugural gol
Slide 24: First-Class Asset Base with Strong Exploration Focus
FIRST-CLASS ASSET BASE WITH STRONG EXPLORATION FOCUS Saudi Mining Champion - extensive diversified license portfolio presents a unique opportunity, building on existing assets and infrastructure with selected partners to explore the whole Kingdom Increased intensity of exploration adding resources [
Slide 25: Production and Capex Guidance
PRODUCTION AND CAPEX GUIDANCE Guidance maintained for 2023 PRODUCTION FORECAST 2023 CAPEX GUIDANCE* Lower Upper Lower Upper DAP Equivalent KM 4,900 5,600 Sustaining CAPEX = sarin) 1,400 1,700 Ammonia kM 3,100 3,500 Growth CAPEX sarima) 1,350 1,600 Alumina kM 1,600 1,825 “excludes exploration CAPEX o
Slide 26: 2023 Outlook
2023 OUTLOOK Low-cost profile and exploration focus to deliver resilience through commodity cycles Markets Ma’aden Positioning i ® & Ammonia * Lower demand due to lower industrial production * Lower gas prices in Europe Phosphates Granulated Fertilizer * High inventory levels and lower affordability
Slide 27: Q&A
Q&A f Robert Wilt Louis Irvine Chief Executive Officer Chief Financial Officer MAADEN Pr uaLen 27
Slide 28: MAADEN rr usleo
MAADEN rr usleo wRBAGI ALIS. ' ite scare parma TS meres invest@maaden.com.sa
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