Om Holdings Ltd. · ASX:OMH
Om — Investor Presentation (March 2018)
23 slides from Om's investor presentation, Mar 5, 2018
Slide 1: OM Holdings Limited Investor Presentation March 2018
For personal use only 1 OM HOLDINGS LIMITED Investor Presentation March 2018
Slide 2: Disclaimer
2 DISCLAIMER For personal use only This presentation has been prepared and issued by OM Holdings Limited ARBN 081 028 337 (“OMH”). This presentation contains summary information about OMH. The information in this presentation does not purport to be complete or to provide all information that an inve
Slide 3: For personal use only
For personal use only 3 GROUP OVERVIEW MINING OVERVIEW SMELTING OVERVIEW FINANCIAL HIGHLIGHTS FUNDAMENTALS
Slide 4: Group Overview
4 GROUP OVERVIEW For personal use only OM Holdings Limited with its subsidiaries, is a vertically integrated commodity player engaged in the business of mining, smelting, trading, and marketing of ores and ferroalloys. With an established history of over 20 years in the industry, the Group is listed
Slide 5: Group Snapshot
5 GROUP SNAPSHOT Integrated mining and smelting Group, one of major producers of bulk ferroalloys For personal use only Share Issued Shares: 734.44 million shares Balance Total Assets: A$1.18 billion Metrics Sheet (as at 1st Share Price: A$1.47 (Financial Shareholder’s Funds: A$228.0 million Mar 201
Slide 6: What We Do
6 WHAT WE DO Raw Materials For personal use only Manganese Ore Quartz Products Ferromanganese Silicomanganese Ferrosilicon (incl. Refined Grade) Customers Steel Mills Foundries Magnesium Production Crude Steel High-tech Steels Cast Products • Flat products Stainless Steel • Electrical steels • Machi
Slide 7: What We Do
7 WHAT WE DO One-stop source of crucial ferroalloys to top regional and global steel-makers For personal use only ◦ Manganese ferroalloys (Silicomanganese and Ferromanganese) are smelted from manganese ore, and are essential to the production of steel with no known substitutes. Manganese ferroalloys
Slide 8: Operational Divisions
8 OPERATIONAL DIVISIONS For personal use only Exploration & Mining Ferroalloy Smelting Marketing & Trading Mining - Australia Smelting - Malaysia Equity Sales, Marketing ◦ Bootu Creek: Manganese ore ◦ OM Sarawak: Ferrosilicon and Agency, Third Party Trading production target of 0.8 million manganese
Slide 9: Group Overview: OMH's Board of Directors
9 GROUP OVERVIEW OMH’s Board of Directors For personal use only o A qualified mechanical engineer, having graduated from the National University of Singapore Low Ngee Tong o Has over 38 years of experience in the steel, ferroalloy and building materials industries in Asia (Executive Chairman & CEO)
Slide 10: Share Price Performance
10 SHARE PRICE PERFORMANCE A globally integrated manganese and ferroalloy company listed on the ASX For personal use only AUD Share Price Million Shares $1.60 5.0 Daily Share Volume Traded (Right) 4.5 $1.40 Price (Left) 4.0 $1.20 3.5 $1.00 3.0 $0.80 2.5 2.0 $0.60 1.5 $0.40 1.0 $0.20 0.5 $0.00 0.0 Fe
Slide 11: For personal use only
For personal use only 11 GROUP OVERVIEW MINING OVERVIEW SMELTING OVERVIEW FINANCIAL HIGHLIGHTS FUNDAMENTALS
Slide 12: Mining Overview
12 MINING OVERVIEW Revenue contribution of A$136.4m in 2017, a significant turn around from 2016 For personal use only OM Manganese Ltd (“OMM”) Brief History Mine: Bootu Creek ◦ Exploration commenced in 2001 Location: Northern Territory, Australia ◦ Commenced mining at end of 2005, with first Produc
Slide 13: For personal use only
For personal use only 13 GROUP OVERVIEW MINING OVERVIEW SMELTING OVERVIEW FINANCIAL HIGHLIGHTS FUNDAMENTALS
Slide 14: Smelting Overview
14 SMELTING OVERVIEW Green field projects developed in-house, organically grown revenue of A$545.6m in 2017 For personal use only OM Materials (Sarawak) Sdn Bhd (“OMSA”) OM (Qinzhou) Co Ltd (“OMQ”) 75% owned, J/V with Cahya Mata Sarawak Berhad, a Location: Guangxi, China leading industrial conglomer
Slide 15: Smelting – OM Sarawak Fundamentals
15 SMELTING – OM SARAWAK FUNDAMENTALS Project rests on strong fundamental pillars For personal use only Cahya Mata Sarawak Berhad (“CMSB”) OM Holdings Limited (“OMH”) • Conglomerate listed on Bursa Malaysia CMS • Major presence in Sarawak Experience, operational track record 25% • Wide portfolio ran
Slide 16: Smelting – OM Sarawak Aerial View
16 SMELTING – OM SARAWAK Aerial View For personal use only SUBSTATION FILTRATION SYSTEM B05 B04 RAW MATERIAL YARD B03 B02 B01 A03 PRODUCT WAREHOUSE A02 A01 PRODUCT WAREHOUSE FOR FUTURE RAW MATERIAL YARD DEVELOPMENT
Slide 17: For personal use only
For personal use only 17 GROUP OVERVIEW MINING OVERVIEW SMELTING OVERVIEW FINANCIAL HIGHLIGHTS FUNDAMENTALS
Slide 18: Financial Highlights
18 FINANCIAL HIGHLIGHTS A$’million 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H2 2017 For personal use only Revenue 574.1 280.3 307.5 389.7 408.2 423.7 532.7 338.5 414.2 988.2 725.1 Gross Profit 261.5 112.8 117.4 59.6 50.6 34.4 36.1 6.1 60.1 209.6 160.0 GP Margin (%) 45.6 40.2 38.2 15.3 12.4
Slide 19: For personal use only
For personal use only 19 GROUP OVERVIEW MINING OVERVIEW SMELTING OVERVIEW FINANCIAL HIGHLIGHTS FUNDAMENTALS
Slide 20: Sarawak's Structural Competitiveness
20 SARAWAK’S STRUCTURAL COMPETITIVENESS OM Sarawak enjoys structural cost competitiveness against Chinese marginal producers For personal use only FeSi Production Cost Comparison Competitive Advantage ◦ Marginal producers in China operate on higher power costs (main cost component) ◦ OM Sarawak has
Slide 21: Ferrosilicon Market Fundamentals
21 FERROSILICON MARKET FUNDAMENTALS Chinese inventory run-down in last three years. After 2017 price spikes, 2018 markets expected to be healthy For personal use only Chinese Ferrosilicon Market Balance 600,000 $1812 $1487 $1590 ◦ Sustained period of low production 500,000 $1368 led to inventory run
Slide 22: Future Organic Growth
22 FUTURE ORGANIC GROWTH Creating value by doing simple things right For personal use only 1. OM Manganese - Ore concentrate project ◦ Beneficiation of existing fines stockpile using proven technology ◦ Cost effective production, with ~2 million tons of ore fines product expected ◦ Pilot plant test
Slide 23: OM Holdings Limited
For personal use only 23 OM HOLDINGS LIMITED AUSTRALIA • CHINA • JAPAN • MALAYSIA • SINGAPORE • SOUTH AFRICA