Om Holdings Ltd. · ASX:OMH
Om — Investor Presentation (February 2021)
24 slides from Om's investor presentation, February 2021
Slide 1: OM Holdings Limited
1 OM HOLDINGS LIMITED Australia • China • Japan • Malaysia • Singapore • South Africa February 2021 • Investor Update Presentation • ASX:OMH
Slide 2: Disclaimer
2 DISCLAIMER 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 investor should consider w
Slide 3: A Manganese Ore & Ferroalloy Company
3 A MANGANESE ORE & FERROALLOY COMPANY Vertically integrated manganese ore and ferroalloy company, involved in mining, smelting, and trading Powered by sustainable hydro-power, pursuing growth and natural diversification into new commodities like silicon metal 23 years on the ASX, OMH offers unique
Slide 4: Company Snapshot
4 COMPANY SNAPSHOT Balancing debt reduction with sustainable dividends, refinancing a priority Issued Shares 738.6 million shares $2.00 Share Price Performance Share Share Price A$ 0.84 Metrics $1.50 (as at 1st 52 weeks Low / High A$ 0.25 / A$ 0.87 $1.00 Feb 2021) Market Capitalization A$ 620.4 mill
Slide 5: Our Operations
5 OUR OPERATIONS Exploration & Mining Smelting & Sintering Marketing & Trading Bootu Creek - Australia Qinzhou - China (100%) Singapore/China (100%) (100%) Mn alloy: 80-95kpta Global sales and procurement Manganese ore: 0.8 Mtpa Sinter ore: 300ktpa Manganese ore, Ferrosilicon, Silicomanganese, Ferro
Slide 6: Our Products
6 OUR PRODUCTS Critical alloying element to steel - a product essential to basic industries and modern infrastructure Manganese Ore Manganese Alloys Silicon Alloys Manganese is the 4th most consumed Main alloying element – Manganese Main alloying element – Silicon metal behind iron, aluminium and co
Slide 7: Smelting: Raw Materials to Critical Additives
7 SMELTING: RAW MATERIALS TO CRITICAL ADDITIVES Manganese Ore - Mn High Purity Quartz - Si Products Ferro-Manganese Silico-Manganese Ferrosilicon Metallic Silicon Under Development Customers Steel Mills Foundries Chemicals / Solar / Electronics Some of our Customers: China Steel Corporation (Taiwan)
Slide 8: The Proverbial Value Chain
8 THE PROVERBIAL VALUE CHAIN OMH is a low cost integrated miner + smelter, not a pure play Mn mining company Notional size of OMH value flows in an average year Diagram Scale Bootu Creek 100 million AUD Total Mn Mn Ore Sales Mn Ore Mining Ore Book 200 million AUD Tshipi / Purchases Other Mines ◦ Ore
Slide 9: Our Materials: Mining - Smelting - Trading
9 OUR MATERIALS MINING - SMELTING - TRADING
Slide 10: Bootu Creek, Northern Territory, Australia
10 BOOTU CREEK, NORTHERN TERRITORY, AUSTRALIA An owner operated mine, wholly owned by the Group since 2007 OM Manganese Ltd (“OMM”) - 100% Owned Mine: Bootu Creek Location: Northern Territory, Australia Product: Siliceous Manganese Ore Capacity: Ore production 0.8 million mt per annum, Ultra fines 0
Slide 11: Greenfield In-House Developed Smelting Plants
11 GREENFIELD IN-HOUSE DEVELOPED SMELTING PLANTS OM Qinzhou – 100% Owned Location: Guangxi, China Product: Manganese alloys (SiMn, HCFeMn), Sinter ore Furnaces: 1 x 16.5 and 1 x 25.5 MVA furnaces Capacity: 80-95ktpa of manganese alloys, 300ktpa of Sinter ore OM Sarawak – 75% Owned Location: Sarawak,
Slide 12: Samalaju Industrial Park: Asia's New Smelting Hub
12 SAMALAJU INDUSTRIAL PARK: ASIA’S NEW SMELTING HUB Sarawak, Malaysia ◦ Culturally diverse state, unique demographics ◦ Low population density ◦ Stable operating environment Sarawak Corridor of Renewable Energy (SCORE) ◦ Samalaju Industrial Park - supported by 3.3GW* of hydropower OM SARAWAK Samala
Slide 13: Sarawak's Hydro-Electric Plants
13 SARAWAK’S HYDRO-ELECTRIC PLANTS Bakun Dam, image courtesy of Sarawak Energy Bhd. ~2.2 million tonnes of CO2 per annum Emissions avoided by smelting with hydropower* *Notional power capacity x Median lifecycle emission differential between coal and hydropower. CO2 emissions falls under Scope 2 Ind
Slide 14: Smelting – At the Heart of What We Do
14 SMELTING – AT THE HEART OF WHAT WE DO FeSi Production Cost Comparison Electricity Reductant Ore Other raw material Labour & other Export tax Delivery to Japan • Sustainable producer, first-quartile of cost curve • 350MW of competitively priced, reliable power, locked in for 20 years • Hands on ma
Slide 15: Recorded A$53.1M EBITDA in 1H 2020
15 RECORDED A$53.1M EBITDA IN 1H 2020 Revenue and GP Margin 1H 2020 Revenue and EBITDA declined due to: • Slower global economic activity due to COVID-19 pandemic and subsequent lockdowns $2,000 23.4% 25% 21.2% 19.9% • Significantly lower demand for crude steel led to Revenue A$ million $1,500 14.9%
Slide 16: Operational Performance and FY21 Guidance
16 OPERATIONAL PERFORMANCE AND FY21 GUIDANCE Mn Ore Production Volume (kmt) Mining Segment (Mn Ore) 200 • FY2020 production volume normalized after mining halt in FY2019 Base 1,000 570 ~29% 738 Case • Lump product grade strategy focused to target 26% Mn in line with increasing plant yields FY2019 FY
Slide 17: Ferrosilicon Market Review
17 FERROSILICON MARKET REVIEW Weak prices expected to impact 2H 2020 earnings, price recovery underway with economic recovery 1 2 3 Feb 2020 Q2 - Q3 2020 Q4 2020 FeSi price surged to Bearish sentiment intensifies, Steel production recovered faster than ~$1200 due to supply two major demand centres,
Slide 18: Manganese Ore and Alloy Market Review
18 MANGANESE ORE AND ALLOY MARKET REVIEW Manganese smelting generated relatively stable earnings in FY2020 1 2 Q2 2020 Q3 – Q4 2020 Overall 2020 South Africa and India lockdowns cause Chinese demand remains robust, SiMn prices relatively concerns over Mn ore and SiMn supply however ore supply concer
Slide 19: Financial Highlights
19 FINANCIAL HIGHLIGHTS A$’million 2015 2016 2017 2018 2019 1H 2020 Revenue 338.5 414.2 988.2 1,510.4 1,026.5 386.5 Gross Profit 6.1 60.1 209.6 353.3 152.5 53.3 GP Margin (%) 1.8 14.5 21.2 23.4 14.9 13.8 Adjusted EBITDA* (37.6) 35.0 186.1 339.7 141.2 53.1 Profit Before Tax (131.6) (8.1) 72.6 236.9 5
Slide 20: Growth of Steel in Southeast Asia (SEA)
20 GROWTH OF STEEL IN SOUTHEAST ASIA (SEA) Regional steel demand remains positive in the long run South East Asia Addition of steel capacity in SEA • Surge of foreign investments in SEA steel mills since steel capacities: 89.4m MT 2 2015 (~25 million MT) 1 • Additional capacity of 61.5 million MT 2
Slide 21: Normalize Operations Impacted by COVID to Pre-Pandemic Levels
21 NORMALIZE OPERATIONS IMPACTED BY COVID TO PRE-PANDEMIC LEVELS Envisage full operation of smelting segment by end 2021 through: • Conversion of 2 FeSi furnaces to produce SiMn in progress, commissioning originally planned for Q2 2021 • Commenced hot commissioning and performance testing of sinter
Slide 22: Future Organic Growth
22 FUTURE ORGANIC GROWTH Key fundamentals remain unchanged, well positioned for industry recovery BURSA Bryah 14 FeSi MALAYSIA Resources Si Silicon Element 25 SiMetal Dual Listing on Raw Material Higher Value Add Expanding Capacity Bursa Malaysia Development (~Capex A$30 mil) (~Capex A$100-150 mil)
Slide 23: A Manganese Ore & Ferroalloy Company
23 A MANGANESE ORE & FERROALLOY COMPANY Vertically Integrated manganese ore and ferroalloy company, involved in mining, smelting, and trading Unique exposure to the niche Manganese alloy and Ferrosilicon space (estimated US$27.5bn market in 2019), essential to steel and the modern world Regional lea
Slide 24: OM Holdings Limited
24 OM HOLDINGS LIMITED AUSTRALIA • CHINA • JAPAN • MALAYSIA • SINGAPORE • SOUTH AFRICA