Mineral Resources Limited · ASX:MIN
Mineral Resources — FY2009 Earnings Presentation
28 slides from Mineral Resources's earnings presentation, Aug 24, 2009
Slide 1: An integrated supplier of goods and services to the Resources Sector
For personal use only An integrated supplier of goods and services to the Resources Sector Peter Wade, Managing Director Bruce Goulds, Chief Financial Officer
Slide 2: Operating since 1992
For personal use only Operating since 1992 PIHA Listed on ASX in 2006 Pipeline & site infrastructure specialist ASX 300 listed company A record for superior value for Crushing Services shareholders International Specialist mining services Australia’s largest specialist crushing contractor contractor
Slide 3: Operations and Financial Highlights
For personal use only OPERATIONS Mineral processing & crushing contracts exceed production targets 2 additional BOO contracts commenced operations Contract extensions on two crushing contracts Significant pipelining contracts awarded Volatile manganese and iron ore prices FINANCIAL Normalised NPAT 3
Slide 4: Group Lost Time Injury Frequency Rate
For personal use only Group Lost Time Injury Frequency Rate (expressed as injuries per million man hours) 18 16 14 12 10 8 6 4 2 0 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Mineral Resources Industry Average
Slide 5: Normalised NPAT and dividend highlights
For personal use only Normalised NPAT of $49.6 million – increase of 3% over FY2008 54% dividend payout of 19.35 cps for the year Low gearing - debt to equity 8% Net interest cover 32 times Lines of credit available for future anticipated capital requirements Balance sheet strength complements conti
Slide 6: Revenue
For personal use only Revenue 300 250 200 150 100 50 0 05/06 06/07 07/08 08/09
Slide 7: Normalised NPAT
For personal use only Normalised NPAT 60 50 40 30 20 10 0 05/06 06/07 07/08 08/09
Slide 8: Net Tangible Asset Backing (cents per share)
For personal use only Net Tangible Asset Backing (cents per share) 120 100 80 60 40 20 0 05/06 06/07 07/08 08/09
Slide 9: Financial Comparison
FINANCIAL COMPARISON For personal use only FY 2009 FY 2008 Actual Actual Revenue 259.6 245.0 Normalised NPAT 49.6 48.1 NPAT 44.3 47.1
Slide 10: Financial Performance
FINANCIAL PERFORMANCE For personal use only $AUD millions FY 2009 FY 2008 Revenue 259.6 245.0 EBITDA 75.9 88.8 Depreciation 18.4 19.6 EBIT 57.5 69.2 Interest 3.3 2.2 PBT 54.2 67.0 Tax Expense 9.9 19.9 NPAT 44.3 47.1 Norm NPAT 49.6 48.1 EBITDA / Revenue 29.2% 36.2% EPS (cents) 35.8 38.7
Slide 11: Balance Sheet Strength
BALANCE SHEET STRENGTH For personal use only $AUD millions June 2009 June 2008 $ Change % Change Total Assets 288.9 223.6 65.3 +29% Total Liabilities (144.0) (107.6) (36.4) +34% Net Assets 144.8 116.0 28.8 +25% Net Cash Position (11.6) 21.5 (33.1) Funds Employed 156.4 94.5 61.9 +66% June 2009 ROFE %
Slide 12: Operational Cash Flow
OPERATIONAL CASH FLOW For personal use only $AUD millions 12 months to June 2009 EBITDA 75.9 CAPEX (including funded items) (53.3) Net Interest Payments (1.8) Working Capital and Other (23.0) Net Operating and Investing Cashflow (2.2) Financing Cashflow 7.5 Total Increase in Cash 5.3
Slide 13: For personal use only
For personal use only • Core business focused – cost • Take advantage of current and cash management market conditions • Volume based bulk minerals • Enhance business through producer current cycle • Forging enduring • Manage the challenges of partnership links with major global economy mining house
Slide 14: For personal use only
For personal use only • Secure access to additional • Maintain links with BHP & resources within Australia Rio Tinto in new JV • Maintain status as low cost • World class safety producer of manganese and performance iron ore • Management of costs and • Access to export wharf product recovery develop
Slide 15: For personal use only
For personal use only Grow contracting operations through organic growth of existing sites and rollover of existing contracts Expand logistics chain for product haulage and export, develop stockyard infrastructure and operations Become a volume based bulk materials producer in iron ore and manganese
Slide 16: For personal use only
For personal use only Organic growth of current successful business Grow bulk mineral volume in contracting and processing operations Increase manganese product grade for export Commencement of Balfour Downs operation Development of infrastructure based BOO operations Off market takeover offer for P
Slide 17: MRL Resource Locations
Mineral Resources Limited MRL Resource LOCATIONS LEGEND A Mining Areas . Port . Town . Deposit a Mine —— Major Pilbara Highways Major Pilbara Roads Railway
Slide 18: Port Hedland Aerial Photograph
RSI Port Hedland Aerial Photograph For personal use only FMG Utah Point Finucane Island Nelson Point
Slide 19: Polaris Metals off-market takeover offer
For personal use only • Off-market takeover offer • 1 MIN share for each 12.5 POL share • Premium to POL recent traded price • Positive POL board recommendation • 50.1% Minimum take-up condition • Pre-bid agreement with Heron Resources • Separate offer for share options on identical ratio
Slide 20: Iron ore projects map
Mineral Resources Limited Propest Leeaten 7 1 "Pert Hectand 4 Kununurra VA KIMBERLEY ‘heals an, oeby IRON PROVINCE Broome . } INDIAN OCEAN rats | ( hemo Meee Port Hediand = } Carey Poondana Onslow 3 (~ PILBARA | Calliwinga®@ ® Weelumurra\ — ipoN PROVINCE t - t Newman . | Ashburton s | WESTERN AUSTRA
Slide 21: Iron Ore resource
For personal use only • Iron Ore resource • JORC resources - 42 million tonnes at 58.5% Fe • Poondano – MIN has Fe rights • Yilgarn (YIOP) – 100-150mt @57-59% Fe – direct shipping ore • Mayfield - > 100mt Fe – direct shipping ore and magnetite potential • Weelumurra – early indications 250-300mt @ 5
Slide 22: Cloudbreak Operation
For personal use only CLOUDBREAK OPERATION
Slide 23: Peak Hill Operation
For personal use only PEAK HILL OPERATION
Slide 24: Peak Hill Operation
PEAK HILL OPERATION For personal use only 24
Slide 25: Manganese Processing Operation
For personal use only Manganese Processing Operation
Slide 26: For personal use only
For personal use only
Slide 27: Outlook
For personal use only • World growth – emerging “green shoots” • Improved confidence in Australia and West Australian economic position • Resources regain positive view • Funding availability improving to underpin growth projects • AUD volatility likely to continue • China continues to take signific
Slide 28: For personal use only
For personal use only • Utah Point export terminal under construction • Stabilized sale prices for Iron Ore • Further strengthening of Manganese prices • Windimurra BOO plant in future operations planning • Balfour Downs production in early 2010