Om Holdings Ltd. · ASX:OMH
Om — Investor Presentation (August 2012)
38 slides from Om's investor presentation, Aug 16, 2012
Slide 1: Equity Raising Presentation
For personal use only NOT FORNOT FOR DISTRIBUTION DISTRIBUTION ORINRELEASE OR RELEASE IN THE THE UNITED UNITED STATES STATES OR TO OR TO U.S. PERSONS U.S. PERSONS (ARBN 081 028 337) Equity Raising Presentation – Thursday, 16 August 2012
Slide 2: Disclaimer and Important Information
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS DISCLAIMER AND IMPORTANT INFORMATION This presentation has been prepared by OM Holdings Limited (ARBN 081 028 337) (OMH or the Company). For personal use only Summary information This presentation contains summary information ab
Slide 3: Future performance (cont.)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Future performance (cont.) For personal use only Forward-looking statements, which may also include projections, guidance on future earnings and estimates, are provided as a general guide only and should not be relied upon as an
Slide 4: Contents
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Contents For personal use only 1 Summary and Equity Offer 5 2 Overview of OMH 10 3 Sarawak Project 13 4 Sarawak Project Funding 18 5 Key Risks 21 6 Appendices 34 4
Slide 5: Summary
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Summary For personal use only • Equity financing of OMH’s 80% share of the 30% equity project funding • 3 for 10 non-renounceable entitlement offer of new shares in OMH at A$0.40 per share to raise ~A$72.5m Sarawak (Entitlement
Slide 6: Equity Offer Details
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Equity Offer Details For personal use only • 3 for 10 Entitlement Offer at A$0.40 per share to raise ~A$72.5m1 • Up to ~181m new ordinary shares in OMH to be issued (New Shares) to rank equally with existing shares in OMH • Posi
Slide 7: Pro Forma Statement of Financial Position
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Pro Forma Statement of Financial Position1 Full Offer Pro Consolidated statement of financial position As at 30 June Pro Forma Forma as at 30 (all figures A$ ‘000) 20122 adjustments For personal use only June 2012 Current assets
Slide 8: Indicative Entitlement Offer Timetable
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Indicative Entitlement Offer Timetable For personal use only Event Date Announcement of Entitlement Offer Thursday, 16 August 2012 Ex-date: existing shares quoted on an ‘ex-entitlement’ basis Monday, 20 August 2012 Record date:
Slide 9: Overview of OMH
For personal use only NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS 1 Summary and Equity Offer 5 2 Overview of OMH 10 3 Sarawak Project 13 4 Sarawak Project Funding 18 5 Key Risks 21 6 Appendices 34 9
Slide 10: OMH – Corporate Overview
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS OMH – Corporate Overview For personal use only Market and Financial Data1 Metric Pre-Entitlement Offer2 Impact of Entitlement Offer3 Post-Entitlement Offer Last price A$ 0.44 - - Ordinary shares on issue m 604.1 181.23 785.3 Unl
Slide 11: Strategic Focus
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Strategic Focus For personal use only Vertically integrated business leveraged to the manganese value chain Manganese Mining & Exploration Ferroalloy Smelting Marketing & Trading Operational Australia OM Sarawak marketing • Chin
Slide 12: Sarawak Project
For personal use only NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS 1 Summary and Equity Offer 5 2 Overview of OMH 10 3 Sarawak Project 13 4 Sarawak Project Funding 18 5 Key Risks 21 6 Appendices 34 12
Slide 13: Sarawak Project Overview
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Sarawak Project Overview For personal use only • Sarawak Project owned and being developed by OM Materials (Sarawak) Sdn Bhd (OM Sarawak), a joint venture company owned by: • OMH (80%) • Cahya Mata Sarawak Bhd (CMS) (20%) • Expe
Slide 14: Sarawak Project Key Drivers
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Sarawak Project Key Drivers For personal use only • 20 year Power Purchase Agreement for 500 MW per annum: take-or-pay basis for initial term of 20 years, with a competitive fixed tariff subject to agreed rate adjustment for inf
Slide 15: Key Relationships, Project Debt Financing and Offtake
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Key Relationships, Project Debt Financing and Offtake For personal use only • OMH equity partners • Boustead Singapore Limited – SGX1-listed engineering services business • Hanwa Co., Ltd. – TSE1-listed specialist marketer of st
Slide 16: Sarawak Project Indicative Timetable
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Sarawak Project Indicative Timetable1 Completed For personal use only Q1 2012 Q2 2012 Q3 2012 Q4 2012 2013 2014 2015 • Sign Power Purchase Agreement (signed and CPs satisfied) • Receive Detailed Environmental Impact Assessment A
Slide 17: Sarawak Project Funding
For personal use only NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS 1 Summary and Equity Offer 5 2 Overview of OMH 10 3 Sarawak Project 13 4 Sarawak Project Funding 18 5 Key Risks 21 6 Appendices 34 17
Slide 18: Indicative Sarawak Project Funding Overview (100%)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Indicative Sarawak Project Funding Overview (100%) Proposed Uses A$m8 Sources A$m For personal use only Estimated capital expenditure1 564 Total Debt (70%)8 408 Working capital 28 • Project finance3,8 408 Other2 (9) Total Equity
Slide 19: Project Funding
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Project Funding For personal use only • Standard Chartered Bank (SCB) appointed as financial adviser for Sarawak Project Debt Finance • SCB and OMH prepared a detailed Information Memorandum (IM) which was dispatched to prospect
Slide 20: Key Risks
For personal use only NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS 1 Summary and Equity Offer 5 2 Overview of OMH 10 3 Sarawak Project 13 4 Sarawak Project Funding 18 5 Key Risks 21 6 Appendices 34 20
Slide 21: Key Risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Key Risks For personal use only GENERAL RISKS There are various risks associated with investing in OMH, as with any stock market investment and, specifically, because of the nature of OMH Group's investments, mineral exploration
Slide 22: Key Risks – Commodity prices
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Key Risks For personal use only SPECIFIC RISKS (cont.) Dependence on commodity prices, particularly manganese and ferroalloy prices (cont.) The factors which affect the price of manganese ore and ferromanganese intermediate prod
Slide 23: Key Risks – Funding and indebtedness
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Key Risks For personal use only SPECIFIC RISKS (cont.) Funding (including for the Sarawak Project) and indebtedness (cont.) As the OMH Group has other existing external borrowings, there is a risk that it may not be able to serv
Slide 24: Key Risks – Construction and operational
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Key Risks For personal use only SPECIFIC RISKS (cont.) Construction and other operational risks While the current capital expenditure and cost estimates of the development activities at the Sarawak Project are the best estimates
Slide 25: Key Risks – Production risk
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Key Risks For personal use only SPECIFIC RISKS (cont.) Production risk Current production levels and stated production targets from, and exploration and exploration potential of, the Bootu Creek Manganese Mine may not be maintai
Slide 26: Key Risks – Transportation of manganese ore
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Key Risks For personal use only SPECIFIC RISKS (cont.) Transportation of manganese ore The manganese product produced at the Bootu Creek Manganese Mine is required to be bulk transported by truck, rail and sea to both end users
Slide 27: Key Risks – Environmental regulation
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Key Risks For personal use only SPECIFIC RISKS (cont.) Environmental regulation Environmental regulations both in Australia and overseas imposes significant obligations on companies that conduct the exploration for and mining of
Slide 28: Key Risks – Climate change
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Key Risks For personal use only SPECIFIC RISKS (cont.) Climate change (cont.) The Australian Productivity Commission has been commissioned by the Australian Government to review arrangements for emissions-intensive trade exposed
Slide 29: Key Risks – Health and safety, currency
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Key Risks For personal use only SPECIFIC RISKS (cont.) Health and safety Health and safety regulation affects the OMH Group's activities. Exploration and mining are potentially hazardous activities. If any injuries or accidents
Slide 30: Key Risks – Competition
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Key Risks For personal use only SPECIFIC RISKS (cont.) Competition Competition from Australian and international mineral producers may affect the cash flow and earnings which the OMH Group will realise from its operations. For e
Slide 31: Key Risks – Regulatory risk
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Key Risks For personal use only SPECIFIC RISKS (cont.) Regulatory risk The OMH Group's businesses are subject, in each of the countries in which it operates, to various national and local laws and regulations relating to the exp
Slide 32: Key Risks – Political risk
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Key Risks For personal use only SPECIFIC RISKS (cont.) Political risk, war, terrorism and natural disasters The OMH Group’s operations could be affected by political instability in Australia, Malaysia, the People’s Republic of C
Slide 33: Appendices
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Contents For personal use only 1 Summary and Equity Offer 5 2 Overview of OMH 10 3 Sarawak Project 13 4 Sarawak Project Funding 18 5 Key Risks 21 6 Appendices 34 33
Slide 34: Pro forma Statements of Financial Position
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Pro forma Statements of Financial Position1 Pro Forma Full Entitlement Pro Forma Pre-Committed Consolidated statement of financial position As at 30 adjustments Offer Pro Forma adjustments Pro Forma For personal use only (all fi
Slide 35: OMH – Corporate Overview
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS OMH – Corporate Overview Market and Financial Data1 For personal use only Impact of Entitlement Offer assuming full takeup Pre-Entitlement Impact of Post-Entitlement Offer2 Entitlement Offer Offer Last price A$ 0.44 - - Ordinary
Slide 36: Foreign Selling Restrictions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Foreign Selling Restrictions For personal use only China The information in this document does not constitute a public offer of the New Shares, whether by way of sale or subscription, in the People’s Republic of China (PRC) (exc
Slide 37: Foreign Selling Restrictions (cont.)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Foreign Selling Restrictions (cont.) For personal use only Japan The New Shares have not been and will not be registered under Article 4, paragraph 1 of the Financial Instruments and Exchange Law of Japan (Law No. 25 of 1948), a
Slide 38: Foreign Selling Restrictions (cont.)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Foreign Selling Restrictions (cont.) For personal use only United Kingdom Neither the information in this document nor any other document relating to the Entitlement Offer has been delivered for approval to the Financial Service