Mineral Resources Limited · ASX:MIN
Mineral Resources — H1 FY2010 Earnings Presentation
19 slides from Mineral Resources's earnings presentation, Feb 23, 2010
Slide 1: Preparing for Future Growth
For personal use only An integrated supplier of goods and services to the Resources Sector Preparing for Future Growth Peter Wade, Chairman Bruce Goulds, Chief Financial Officer
Slide 2: About Mineral Resources
For personal use only ABOUT MINERAL RESOURCES Operating since 1992 Listed on ASX in 2006 ASX 300 listed company A record for superior value for shareholders Specialist mining services contractor Owns and operates crushing, processing and mineral export operation circuits with replacement values grea
Slide 3: Highlights
For personal use only HIGHLIGHTS OPERATIONS Sustained demand for steel making products Continued worlds best practice safety outcomes Decision to develop Nicholas Downs Mn and Poondano Fe projects to commence operations 2010 Strong margins in general infrastructure and infrastructure contracts CSI a
Slide 4: Safety Performance
For personal use only SAFETY PERFORMANCE Group Lost Time Injury Frequency Rate (expressed as injuries per million man hours) 18 16 14 12 10 8 6 4 2 Mineral Resources Industry Average
Slide 5: CSI Wins Rio Tinto Supplier of Excellence Award
For personal use only CSI WINS RIO TINTO SUPPLIER OF EXCELLENCE AWARD
Slide 6: Financial Highlights
For personal use only FINANCIAL HIGHLIGHTS NPAT of $27.4million – increase of 17% over HY Dec 2008 Dividend payout of 6.4cps in half year Net cash positive balance sheet Raising of $52 million to fund construction activities Lines of credit remain in place for future use POLARIS Hold 68.4% on balanc
Slide 7: Financial History
Return on Shareholders Funds (3 year rolling average) For personal use only 35% 30% 25% FINANCIAL HISTORY 20% 15% 10% 5% 0% 2006 2007 2008 2009 2010* MIN has outperformed market since listing in 2006 800 700 All Ordinaries MIN Index (28 July 2006 = 100) 600 500 400 300 200 100 0
Slide 8: Financial Performance
For personal use only FINANCIAL PERFORMANCE $AUD millions Dec 09 Jun 09 Dec 08 half half half Revenue 109.1 116.7 142.9 EBITDA 50.1 32.1 43.8 Depreciation 9.8 9.7 8.7 EBIT 40.3 22.4 35.1 Interest 2.3 2.4 0.9 PBT 38.0 20.0 34.2 Tax Expense 10.6 (0.9) 10.8 NPAT 27.4 20.9 23.4 EBITDA / 45.9% 27.5% 30.6
Slide 9: Financial Performance Analysis
For personal use only FINANCIAL PERFORMANCE ANALYSIS Dec’09 Jun’09 Dec’08 Revenue 109.1 116.7 142.9 Expenses Change in Stock (1.2) (3.2) 6.2 Depreciation (9.8) (9.7) (8.7) Employ’t costs (21.0) (24.0) (21.5) Equip costs (3.1) (9.8) (13.8) Finance Costs (2.3) (2.4) (0.9) Impairment 2.8 (2.4) (2.8) Ra
Slide 10: Balance Sheet Strength
BALANCE SHEET STRENGTH For personal use only $AUD millions Dec 09 Dec 09 Jun 09 Jun 08 (ex POL) Total Assets 567.8 350.3 288.9 223.6 Total Liabilities (201.0) (134.9) (144.0) (107.6) Net Assets 366.8 215.4 144.8 116.0 Net Cash Position 26.5 32.9 (11.6) 21.5 Funds Employed 340.3 248.3 156.4 94.5 ROFE
Slide 11: Operational Cash Flow
For personal use only OPERATIONAL CASH FLOW $AUD millions HY Dec HY Jun HY Dec 09 09 08 EBITDA 50.1 32.1 43.8 CAPEX (including funded (26.4) (15.2) (34.6) items) Net Interest Payments (1.6) (1.9) (0.0) Income Taxes Paid (12.5) (9.6) (14.5) Working Capital and (14.8) (0.4) (1.9) Other Net Operating a
Slide 12: MRL Business Plan 2009-2012 Review
MRL BUSINESS PLAN 2009 -2012 REVIEW For personal use only PLAN Review Maintained all existing operating contracts Grow contracting operations through organic growth of Continued market expansion – significant growth opportunities existing sites and rollover of Strong work in hand levels existing con
Slide 13: MRL Target Areas 2010 – More of the Same
MRL TARGET AREAS 2010 – MORE OF THE SAME 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 Nicholas Downs operation Commence Poondano operations Development
Slide 14: MRL Resource Locations
For personal use only MRL RESOURCE LOCATIONS
Slide 15: Polaris Metals Update
POLARIS METALS UPDATE For personal use only • Compulsory acquisition commenced • Corporate integration commenced and synergies being extracted • Yilgarn development plan in place • Final approvals in preparation • Export availability under negotiation with export terminals • Production commencement
Slide 16: For personal use only
ASD Mineral Resources Limited Kurunurra © KIMBERLEY Dery RON PROVINCE S Poondana PILBARA Calliwinga@® Weelumurra| — jpon PROVINCE Ashburton > WESTERN AUSTRALIA Lee Steere Camarvor Range e F ; . » Milly jameson Milly , ‘wWaune Range Meckatharra ® Mount Magnet YILGARN fe Leonora IRON ® Mt Elvire @ Joh
Slide 17: Current Polaris Metals Profile
CURRENT POLARIS METALS PROFILE For personal use only • Iron Ore resource • JORC resources - 42 million tonnes at 58.5% Fe • Poondano – MIN has Fe rights – 2mtpa direct shipping ore • Yilgarn (YIOP) – 100-150mt @57-59% Fe – direct shipping ore • Mayfield - > 100mt Fe – direct shipping ore and magneti
Slide 18: Windimurra Vanadium Update
WINDIMURRA VANADIUM UPDATE For personal use only • Consortium submitted offer for Midwest Vanadium project • Financial evaluation / Due diligence well progressed • Final decision to proceed due in March 2010 • Current vanadium market will recover with steel production • Choice of products to produce
Slide 19: Outlook 2010
OUTLOOK 2010 For personal use only Continue planning and development work for future processing operations Port export restrictions to continue until Utah Point commences operation in late 2010 Business activity to continue to expand from current healthy levels Increased number of integrated busines