Om Holdings Ltd. · ASX:OMH
Om — Euroz Securities 2012 Rottnest Island Conference
23 slides from Om's conference presentation, Mar 7, 2012
Slide 1: Investor Presentation cover letter to ASX
OM HOLDINGS LIMITED (ARBN 081 028 337) For personal use only No. of Pages Lodged: 23 7 March 2012 Company Announcements Office ASX Limited 4th Floor 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam INVESTOR PRESENTATION Please find attached a copy of a presentation to be delivered by Mr Peter Toth, C
Slide 2: Background Information on OM Holdings Limited
BACKGROUND INFORMATION ON OM HOLDINGS LIMITED 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 For personal use only processing ores into ferro-manganese intermediate products. Th
Slide 3: Euroz Investor Conference - March 2012
For personal use only Euroz Investor Conference - March 2012 1
Slide 4: Disclaimer
For personal use only DISCLAIMER IMPORTANT INFORMATION This presentation has been prepared and issued by OM Holdings Limited (“OMH”). This presentation contains summary information about OMH and is dated 7 March 2012. The information in this presentation does not purport to be complete or to provide
Slide 5: Underlying Market Trends and Drivers
Underlying Market Trends and Drivers For personal use only Chinese crude steel production growth continues while recent monetary easing can support 700+m tonnes of steel production in 2012 Steel Growth continues to be driven by underlying domestic steel demand, industrialisation, urbanisation, infra
Slide 6: Demand drivers continue to support China's steel production
Demand drivers continue to support China’s steel production For personal use only Chinese New Year Source: World Steel Association 4
Slide 7: China manganese ore imports and port stocks
China manganese ore imports and port stocks For personal use only 4,500 Imported Ore Port Stock 3.9Mt 4,000 3,500 3,000 3.2Mt 2,500 ‘000 tonnes 2,000 2011 - 13 million tonnes of total ore imports 1,500 1,000 500 0 Source: International Manganese Institute / The TEX Report 5
Slide 8: The evolution of China's Mn ore port inventory
The evolution of China’s Mn ore port inventory For personal use only Months of port stock - consumption adjusted 2008 • 2008 port stocks average ~ End 2010 emission control measures 6 1.8Mt, representing 3-4 months and smelter closures of stock 5 2011 3-4 months 3-4 months • Seaborne imports and con
Slide 9: Manganese Ore spot price history
Manganese Ore spot price history For personal use only Key drivers: Lowest cost seaborne tonnes pricing the market Pressure on high cost seaborne and Chinese domestic ore supply High grade seaborne ores gaining market share at the expense of the low grade segment Seaborne imports displacing Chinese
Slide 10: OMH strategic focus
OMH strategic focus For personal use only Building a world class Manganese company and extracting maximum value across the value chain Exploration and Mining Ferro Alloy Smelting Marketing & Trading Exploration China Equity sales Bootu + Helen and Renner Qinzhou – 60kt HCFeMn + Marketing agencies Sp
Slide 11: FY 2011 – Summary of Key Financials
FY 2011 – Summary of Key Financials For personal use only A$ million 2011 2010 Total Sales 389.7 307.5 EBITDA (adjusted for non-cash items) 15.4 63.9 NPAT (11.5) 47.2 Operating Cash Flow 19.0 23.3 Cash at Year End 31.9 42.1 9
Slide 12: Robust 2012 Operating Strategy
Robust 2012 Operating Strategy For personal use only • 2011 • record production of 902kt, cash cost of A$4.25/dmtu FOB, mining fleet scaled down from 3 to 2 during 2011 and from 2 to 1 in Q1 2012 Bootu Creek • 2012 • single pit mining operation, re-optimised mine plan targeting low strip ratio, low
Slide 13: Mine and Smelter Operating Performance 2005 to 2011
Mine and Smelter Operating Performance 2005 to 2011 For personal use only Bootu Creek Manganese Mine Ore Production Performance 1,000 902.1 831.4 800 672.6 648.1 600 516.4 kt 400 243.4 200 [-] 0 2005 2006 2007 2008 2009 2010 2011 Qinzhou Manganese Alloy Smelter HCFeMn Production Performance 60 74 45
Slide 14: Bootu Creek Resource & Reserves as at Dec 2011
Bootu Creek Resource & Reserves as at 31 Dec 2011 For personal use only Bootu Creek: Mineral Resource Summary for 31st December 2011 $2.4 million spent on Bootu exploration in 2011 At 15% Mn cutoff Measured Indicated Inferred Combined* RC drilling, 282 holes (15,699m) drilled at Bootu and 168 ho
Slide 15: Balance Sheet and Capital Management Strategy
Balance Sheet and Capital Management Strategy For personal use only • Restructuring of current US$90m loan facility in progress and near finalisation Debt • A$16m Malaysia long-term (10yr) land financing • A$61 short term trade financing at end 2011 backed by trade receivables (bank drafts) and inve
Slide 16: Investment Portfolio Review
Investment Portfolio Review For personal use only NFE • NFE’s ‘strategic review’ process in progress (iron ore) • Marketing agency relationship on-going SCR • Exited shareholding in January 2012 (iron ore) SRR • Under review (Mn) MOX/AXE • On-going until end 2012, to be followed by evaluation of exp
Slide 17: 2012 Growth Project Execution
2012 Growth Project Execution For personal use only • H1 2012 • 20 year Power Purchase Agreement signed on 2 February 2012 • Project Finance Information Memorandum to interested lenders expected in March 2012 • Engineering and Design work completion expected by April 2012 Sarawak • Environmental Imp
Slide 18: OM Sarawak (Malaysia) investment case
OM Sarawak (Malaysia) investment case For personal use only • Company and industry transforming project producing 600ktpa of silicon based steelmaking ferro alloys • Capex ~US$500m, Project NPV ~US$670m, Project IRR of 30% • Key competitive advantages include: • 500MW of competitively priced long te
Slide 19: The Bakun Dam, Sarawak, Malaysia
The Bakun Dam, Sarawak, Malaysia For personal use only 17
Slide 20: OM Sarawak, Malaysia
OM Sarawak, Malaysia For personal use only 18
Slide 21: Tshipi (South Africa) investment case
Tshipi (South Africa) investment case For personal use only • World class mine in the world’s largest manganese field • OMH a 26% investor in majority 50.1% BEE shareholder Ntsimbintle • Planned 2.4mtpa lowest cost quartile production capacity Tshipi • 60+ year high grade carbonate Manganese ore res
Slide 22: Tshipi Borwa, South Africa
Tshipi Borwa, South Africa For personal use only 20
Slide 23: OMM Resource & Reserves as at Dec 2011
For personal use only OMM Resource & Reserves as at 31 Dec 2011 The information in this report which relates to Reporting of Exploration Results, Mineral Resources and Ore Reserves estimation is based on information compiled and checked by Mr Craig Reddell a full time employee of OM (Manganese) Ltd
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