Sunrise Energy Metals Limited · ASX:SRL
Sunrise Energy Metals — Clean TeQ Holdings — H1 FY2008 Earnings Presentation
23 slides from Sunrise Energy Metals's earnings presentation, February 2008
Slide 1: Half Year Report – December 2007
Clean TeQ Holdings Limited ACN 127 457 916 Half Year Report – December 2007
Slide 2: Important information & disclaimer
Important information & disclaimer This presentation has been prepared by the management of Clean TeQ Holdings Limited (the ‘Company’) for the benefit of brokers, analysts and investors and not as specific advice to any particular party or person. Neither the Company, nor any of its officers, employ
Slide 3: Index
Index • Overview • Business Operations – Air Purification – Water Purification LIMITED – Resource Recovery TEQLIMITED • Financial Performance • Cash Flow TEQ • Competitive Advantage CLEAN CLEAN • Our People • Research & Development • Conclusion 3
Slide 4: Overview
Overview • Clean TeQ is a mining services and environmental solutions company CLEAN TEQ LIMITED • Clean TeQ is on track at 31 December 2007 to meet its prospectus targets • Forecast to generate revenue of $15.435m and NPAT of $2.856m in FY08 4
Slide 5: Overview: Established strongly growing and profitable business
Overview Established strongly growing and profitable business • Australian environmental and mining services company servicing high growth markets in: – Air Purification CLEAN TEQ LIMITED – Resource Recovery – Water Purification • Long and successful track record with significant municipal/statutory
Slide 6: Overview: Established strongly growing and profitable business
Overview Established strongly growing and profitable business • Clean TeQ is now a public company with no debt and $5.835 million in cash reserves CLEAN TEQ LIMITED • The operations of the company are cash flow positive • The company remains on track to meet both FY2008 revenue and profit forecasts
Slide 7: Business Operations: Background
Business Operations Background Clean TeQ • Operates in 3 Divisions Air Purification Resource Recovery Water Purification CLEAN TEQ LIMITED • Core business since • Clean-iX technology • Clean-iX technology 1990 separates and purifies and recycles concentrates resources secondary treated • Air purific
Slide 8: Business Operations: Background – Resin Technology
Business Operations Background Clean TeQ • Resin Technology Base Resin Ion Exchange Resin Clean-iX Process CLEAN TEQ LIMITED • Base Resin is a small • Base Resins are • Resins are used in plastic bead around 1 functionalised to specially designed mm in diameter produce ion equipment to perform excha
Slide 9: Business Operations: Revenue Sources
Business Operations Revenue Sources Clean TeQ Air Purification Resource Recovery Water Purification CLEAN TEQ LIMITED • Revenue derived • Generates revenue from • Revenue from design, from design, three sources: construction and construction, installation of water, installation and – Sale of technol
Slide 10: Business Operations: Air Purification
Business Operations Air Purification Clean-TeQ Technology Products & Target Markets in Advantages Air Treatment • Suite of technologies to provide total • Biological Filters for odour, organics CLEAN TEQ LIMITED solution and toxics • Lower environmental burden • Regenerative Thermal Oxidisers for od
Slide 11: Business Operations: Resource Recovery
Business Operations Resource Recovery Clean-iX Products & Target Markets in Advantages Metal Extraction & Purification • Higher recovery rates • Clean-iX Gold cRIP (continuous resin- CLEAN TEQ LIMITED in-pulp) for precious metals such as • Lower capital investment and gold, silver & platinum operati
Slide 12: Business Operations: Resource Recovery
Business Operations Resource Recovery • Sold exclusive rights for Nickel and Cobalt extraction to BHP Billiton and CVRD • Retains rights for application of Clean-iX for all other uses CLEAN TEQ LIMITED • Constructing pilot plant for BHP Billiton for Nickel extraction • This division is positioned fo
Slide 13: Business Operations: Water Purification
Business Operations Water Purification Clean-iX Products & Target Markets in Advantages Water Treatment CLEAN TEQ LIMITED • Multidimensional - filters and purifies • Clean-iX Water for treatment of water secondary effluent to industrial quality water for boilers and cooling • Does not biofoul or bec
Slide 14: Business Operations: Water Purification
Business Operations Water Purification • Commissioned a Pilot Plant in conjunction with Water Corp WA to demonstrate Clean-iX technology for the conversion of secondary treated effluent to high quality industrial water CLEAN TEQ LIMITED • The performance of the Pilot Plant has been reviewed by Worle
Slide 15: Financial Performance
Financial Performance 1H08a 1H07a Growth FY07a FY08f $m $m $m $m Revenue 8.124 1.960 315% 7.000 15.435 EBITDA 2.064 0.563 267% 3.206 4.209 CLEAN TEQ LIMITED EBIT 1.645 0.356 362% 1.941 3.188 NPAT 1.564 0.412 280% 1.898 2.856 • Significant growth compared to 1H07 with all 3 Divisions on track for yea
Slide 16: Financial Performance
Financial Performance Actual Actual Half Forecast Growth $’000 Year Ended Year Ended Year Ending Year on Year 30 June 2007 31 Dec 2007 30 June 2008 Revenue 7,000 8,124 15,435 121% CLEAN TEQ LIMITED Gross Profit 5,262 3,581 7,595 44% EBITDA 3,206 2,064 4,209 31% EBIT 1,941 1,645 3,188 64% Net Profit
Slide 17: Financial Performance: Strong Balance Sheet
Financial Performance The Company has a strong Balance Sheet Actual Actual $m 31 Dec 2007 30 June 2007 Cash 5.8 1.1 CLEAN TEQ LIMITED Other Current Assets 2.7 1.5 Non Current Assets 6.1 5.7 Total Assets 14.6 8.3 Current Liabilities 2.8 2.1 Non Current Liabilities 0.1 0.0 Equity 11.7 6.2 The Company
Slide 18: Cash Flow
Cash Flow Actual Actual $m 31 Dec 2007 31 Dec 2006 Operating cash flow 2.3 0.4 Investing cash flow (0.8) (0.6) CLEAN TEQ LIMITED Financing cash flow 3.2 0.3 Net cash flow for the period 4.7 0.1 • The Company continues to generate free cash flow from its operations • Cash from operations are expected
Slide 19: Competitive Advantage
Competitive Advantage Why is Clean TeQ successful? • Long established • Servicing high growth markets CLEAN TEQ LIMITED • Profitable and cash flow positive • No debt • Suite of owned technologies in air, resources and water applications • On track in each division to achieve forecasts • Blue chip cu
Slide 20: Our People
Our People • Growing professional staff numbers from 19 to 26 since 30 June 2007 with additional professional staff currently being recruited to cater for the increased operational activity • 2 experienced non-executive directors joined the board CLEAN TEQ LIMITED • Low staff turnover with no moveme
Slide 21: Research & Development
Research & Development • Ongoing investment in research and development with an average of 22% of revenue invested over a 6 year period, which has led to increased ongoing profits and free cash flows • Maintain a R&D philosophy where our R&D must add value to our CLEAN TEQ LIMITED business and our c
Slide 22: Conclusion
Conclusion • Clean TeQ is on track to meet our Prospectus forecasts • We will continue to invest in research and development. CLEAN TEQ LIMITED • The Company has no debt and will continue to generate free cash flows from operations • We will continue to invest in our people • The Board expect to be
Slide 23: Questions?
CLEAN TEQ LIMITED 23 Questions?