Mineral Resources Limited · ASX:MIN
Mineral Resources — FY2008 Earnings Presentation
21 slides from Mineral Resources's earnings presentation, Aug 21, 2008
Slide 1: Full Year 2008 Results: On Target for Future Growth
For personal use only An integrated supplier of goods and services to the Resources Sector FULL YEAR 2008 RESULTS “ON TARGET FOR FUTURE GROWTH” Peter Wade, Managing Director Bruce Goulds, Chief Financial Officer
Slide 2: About Mineral Resources
For personal use only ABOUT MINERAL RESOURCES PIHA • Pipeline & site infrastructure specialist Crushing Services International • Australia’s largest specialist crushing contractor Process Mineral International • Minerals processing & marketing
Slide 3: Group Structure
For personal use only GROUP STRUCTURE Board of Directors – Peter Wade (Executive Chairman & Managing Director) – Chris Ellison (Executive Director) – Joe Ricciardo (Non-Executive Director) – Mark Dutton (Non-Executive Director) Senior Management – Bob Gavranich (General Manager PIHA) – Steve Wyatt (
Slide 4: Operational Highlights
OPERATIONAL HIGHLIGHTS For personal use only • Strong organic growth across all business sectors • Safety and performance record maintained • Staff turnover managed • Operating cost growth under control • Mineral processing & crushing contracts exceed production targets • Contract extensions on two
Slide 5: Collaborative Agreement Balfour Downs Manganese
COLLABORATIVE AGREEMENT For personal use only BALFOUR DOWNS MANGANESE • Collaborative Agreement between Hancock Prospecting (HPPL) and PMI for a 7 year contract plus options to mine, process, transport and ship manganese ore from Balfour Downs formally signed on 14 August, 2008 • Balfour Downs is lo
Slide 6: Financial Highlights
For personal use only FINANCIAL HIGHLIGHTS • NPAT of $47.1 million –an increase of 134% over FY2007 • Windimurra capital expenditure covered from internal cash flow • 50% dividend payout policy confirmed • Net cash positive position provided by strong cash generation • Strong growth in manganese pri
Slide 7: Financial Comparison Year on Year Performance
FINANCIAL COMPARISON For personal use only YEAR ON YEAR PERFORMANCE FY 2008 FY 2007 Variance Actual Actual % Revenue 245.0 148.8 65% EBITDA 88.8 37.8 135% NPAT 47.1 20.2 134%
Slide 8: Revenue Performance
For personal use only REVENUE PERFORMANCE (in $ millions) 300 250 200 150 100 50 0 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008
Slide 9: EBITDA Performance
For personal use only EBITDA PERFORMANCE (in $ millions) 100 90 80 70 60 50 40 30 20 10 0 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008
Slide 10: Financial Performance
FINANCIAL PERFORMANCE For personal use only $AUD millions FY 2007 FY 2008 Revenue 148.8 245.0 EBITDA 37.8 88.8 Depreciation 10.7 19.6 EBIT 27.1 69.2 Interest 1.5 2.2 PBT 25.6 67.0 Tax Expense 5.4 19.9 NPAT 20.2 47.1 EBITDA / Revenue 25.4% 36.2% EPS (cents) 16.9 38.7
Slide 11: Balance Sheet Strength to Facilitate Growth
BALANCE SHEET STRENGTH TO FACILITATE For personal use only GROWTH $AUD millions June 2007 June 2008 $ Change % Change Total Assets 157.7 223.6 65.9 +42% Total Liabilities (82.0) (107.6) (25.6) -31% Net Assets 75.7 116.0 40.3 +53% Net Cash Position (8.8) 21.5 30.3 Funds Employed 84.5 94.5 10.0 +12% J
Slide 12: Strong Operational Cash Flows
STRONG OPERATIONAL CASH FLOWS For personal use only $AUD millions 12 months to June 2008 EBITDA 88.8 CAPEX (including funded items) (50.6) Net Interest Payments (0.4) Working Capital and Other 5.8 Net Operating and Investing Cashflow 43.6 Financing Cashflow (13.5) Total Increase in Cash 30.1
Slide 13: Operational Review of FY2008 Performance
OPERATIONAL REVIEW OF For personal use only FY2008 PERFORMANCE • Successful integration of operating units into consolidated company • Contracting and crushing operations growing solidly by managing skills shortages and cost increases • Resources and mineral processing sectors continue strong demand
Slide 14: Strategic Focus
For personal use only STRATEGIC FOCUS • Investment in strong management and operating team and structured succession plan • Core business focused • Forging enduring partnership links with major mining houses • Expand long term BOO contract base • Grow corporate brand value • Geographic and commodity
Slide 15: Operational Outlook
OPERATIONAL OUTLOOK For personal use only • Maintenance of world class safety performance • Increased pipeline of project opportunities • Expansion of manganese recovery operations • Expansion of pipelining and HDPE contracts • Progression of project definition for Philippine iron sands project • Pr
Slide 16: Market Outlook
MARKET OUTLOOK For personal use only • ‘China story’ to remain expansive in the long term with strong global demand for steel making commodities • Port and transport capacity to control supply growth • AUD has peaked against USD • Windimurra BOO plant on target for start up in October 2008 • Balfour
Slide 17: Future Trends & Opportunities
FUTURE TRENDS & OPPORTUNITIES For personal use only • The China story continues • Cash is like oxygen • Supply < Demand in steel making minerals • Client/contractor partnerships requires adding value for both parties • Port, transport and shipping availability to control export growth opportunities
Slide 18: Business Model
BUSINESS MODEL For personal use only Integrated supplier of + goods and services to the + Market Opportunities resources sector Focus Areas HSE performance Contract crushing Margins and Mineral profitability processing Cost control Infrastructure and Client relationships mining sector Risk managemen
Slide 19: For personal use only
For personal use only Brunei Lined Water injection Pipeline Windimurra Stacker
Slide 20: For personal use only
For personal use only Brunei Lined Water injection Peak HillPipeline Windimurra Manganese Stacker
Slide 21: For personal use only
For personal use only Windimurra Stacker