Mineral Resources Limited · ASX:MIN
Mineral Resources — FY2019 Earnings Presentation
25 slides from Mineral Resources's earnings presentation, Aug 26, 2019
Slide 1: FY19 Results Investor Presentation
For personal use only FY19 Results Investor Presentation August 2019
Slide 2: Contents
Contents For personal use only 1 FY19 Highlights 2 FY19 Financial Performance 3 FY19 Safety & Environment 4 FY19 Operating & Commodity Performance 5 Where we are going in FY20 6 Project Update 7 Disclaimer 2
Slide 3: FY19 Key Headlines
FY19 Key Headlines • Largest growth period since inception, with capex of $900M this year on lithium, iron ore & mining services equipment For personal use only • Arguably built one of the best lithium portfolios in the world with 30 to 50 year life • Forming a Joint Venture for mining at Wodgina an
Slide 4: FY19 Financial Performance Summary
FY19 Financial Performance Summary For personal use only Revenue Diluted EPS (normalised)1 Capex and investments $1,512m 108cps $858m FY18 ↓ 7% H1 FY18 ↓ 25% FY18 ↑ 140% EBITDA (normalised)1 Dividends declared Net assets $433m 44cps $1,380m FY18 ↓ 14% FY18 ↓ 32% FY18 ↑ 6% NPAT (normalised)1 Operatin
Slide 5: Track record of delivering shareholder value
Track record of delivering shareholder value For personal use only Total Shareholder Cumulative $4.50 / EPS growth p.a. 16% 15% p.a. 35% $18.58 57% Since IPO FY07-19 Return (TSR)1 dividends paid share Fully franked Since IPO FY07-19 Cumulative TSR growth rate2 Management pre tax profits >$2.1bn Sinc
Slide 6: Occupational Health & Safety
Occupational Health & Safety For personal use only TRIFR of 3.99 1 Safety 2 LTIFR of 0.13 • 24% decrease in LTIFR 3 • 21% increase in employees Total employees: 3,746 • 32% increase in the number of hours Recordable Injury Frequency Rates worked 14.52 15.00 1.50 • Increase in TRIFR due to behaviour
Slide 7: Our Mining Services Business
Our Mining Services Business For personal use only MINING SERVICES SUPPLY CHAIN INFRASTRUCTURE INNOVATION • Delivers contracted earnings through: • Strategic port allocations at Utah Point (Port • Delivering innovative projects, focussed on – Open Pit Mining Hedland) and Esperance providing lower co
Slide 8: FY19 Mining Services Performance
FY19 Mining Services Performance Crushing & Processing Construction Energy For personal use only • Koolyanobbing currently running at 7.5Mt • Wodgina Lithium: • Oil & Gas Perth Basin run rate ― Crusher & screening plant complete ― Progressed planning, stakeholder • Mt Marion operating at steady stat
Slide 9: Our Profit Share Commodities Business
Our Profit Share Commodities Business Commodity Profit Share Model Iron Ore Lithium For personal use only • Acquire joint ownership of ore bodies in • Producer of iron ore: • One of the world’s largest owners of hardrock partnership with explorers lithium units: o Yilgarn - Koolyanobbing • MRL funds
Slide 10: FY19 Commodities Performance
FY19 Commodities Performance Lithium Iron Ore For personal use only Mt Marion Koolyanobbing • 378Kt spodumene concentrate delivered • Commenced operating and exported 3.2Mt iron ore ― 272Kt of 6% • Currently running at 7.5Mt run rate ― 106Kt of 4% • Revenue of $117/t achieved • Revenue of $1,044/t a
Slide 11: Where we are going in FY20
For personal use only Where we are going in FY20 11
Slide 12: FY20 Mining Services Outlook
FY20 Mining Services Outlook For personal use only Crushing Mining Supply Chain Logistics • Increase Koolyanobbing by 4Mtpa • Ramp up to 11.5Mtpa operations • Additional rail haulage • Two contracts pending for 18Mtpa at Koolyanobbing, additional ― 390 wagons • Commenced MRL / Metso 4Mtpa production
Slide 13: FY20 Planned Commodities Production
FY20 Planned Commodities Production Lithium Iron Ore For personal use only Mt Marion Koolyanobbing • Focus is on cost management during a period of high • Focus is on production increase to 11.5Mtpa by end of Q2 strip ratio • Expected to produce and export between 8Mt and 9Mt, with • Expected to pro
Slide 14: Environment - Wodgina Tailings Storage Facility (TSF)
Environment - Wodgina Tailings Storage Facility (TSF) For personal use only Engaged independent hydrogeology company, AQ2, to assess the Recent Activity tailings facility • Since end June, TSF has approached design operation AQ2 Findings conditions: • Performing as expected during the ramp up stage
Slide 15: Wodgina Lithium JV Update
Wodgina Lithium JV Update Joint Venture Lithium Hydroxide For personal use only • August 2019 signed a revised agreement with Albemarle1 • The Kemerton modules, when complete, will be able to process • Albemarle to acquire 60% ownership of Wodgina mine site to form a Wodgina’s spodumene concentrate
Slide 16: Iron Ore Project Update
Iron Ore Project Update Marillana Iron Ore Project For personal use only • Farm-in and Joint Venture Agreement unconditional1; farm-in period commenced & extended2 • Timeframe for rail & port construction and operation extended by 12 months2 Kumina Iron Ore Project • Completed the acquisition of Kum
Slide 17: Energy Initiatives
Energy Initiatives For personal use only We remain focussed on reducing our reliance on diesel fuel: Oil & Gas • Natural gas • Perth Basin: Continue exploration work and obtaining approvals • LNG to commence drilling • Battery storage • Solar Lower Carbon Energy Initiatives Achieved FY19 Mt Marion:
Slide 18: Innovation
For personal use only Innovation 1 Pilbara Infrastructure Project 2 Carbon Fibre Dump Truck Trays 3 Synthetic Graphite 4 NextGen Crushing & Screening Plant 18
Slide 19: Innovation Strategy
Innovation Strategy For personal use only • Enables us to develop and offer unique mining products and services with high barriers to entry • Increases the value-add proposition to our clients • Provides a competitive advantage • Retains our position as a leader in the mining services industry • Sus
Slide 20: Pilbara Infrastructure Project
Pilbara Infrastructure Project For personal use only • Progressing development of Pilbara Infrastructure Project: ― Light rail system: continue work on finalising design and right of way approvals ― Port stockyard and capesize carrier berth: progressing with approvals • Anticipate construction comme
Slide 21: Carbon Fibre Technology
Carbon Fibre Technology For personal use only • Developed a carbon fibre manufacturing facility producing structural members –with the capability of making equipment & products for the mining industry • Currently 2 dump trucks operational with carbon fibre trays at Koolyanobbing; 3 more to be fitted
Slide 22: Synthetic Graphite Plant
Synthetic Graphite Plant For personal use only Synthetic Graphite Plant • Pilot plant commissioned and operational • First graphite produced June 2019 • Initial results, better than expected, exceeded 96% TGC1 vs target 92% • Product certification process takes 12 months • Optimising process to scal
Slide 23: 15Mt NextGen Portable Crushing & Screening Plant
15Mt NextGen Portable Crushing & Screening Plant For personal use only • New partnership with Metso to supply 15Mtpa NextGen portable crushing and screening plants: ― Low capital cost ― About 12 weeks install ― MRL will market under a Build-Own-Operate in Australia ― Metso to provide global marketin
Slide 24: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Mineral Resources Limited (“MRL” or “the Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect
Slide 25: For personal use only
For personal use only OFFICE: 1 Sleat Road, Applecross, WA 6153 PO. Locked Bag 3, Canning Bridge LPO, Applecross, WA 6153 P +61 8 9329 3600 F +61 8 9329 3601 www.mrl.com.au