Om Holdings Ltd. · ASX:OMH
Om — Investor Presentation (September 2007)
36 slides from Om's investor presentation, Sep 3, 2007
Slide 1: Investor Presentation – September 2007 (ASX cover letter)
OM HOLDINGS LIMITED (ARBN 081 028 337) For personal use only No. of Pages Lodged: 36 3 September 2007 Company Announcements Office Australian Stock Exchange Limited 4th Floor 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam INVESTOR PRESENTATION – SEPTEMBER 2007 Please find attached a copy of a prese
Slide 2: Background Profile of OM Holdings Limited
BACKGROUND PROFILE OF OM HOLDINGS LIMITED _____________________________________________________________________________ OMH listed on the ASX in March 1998 and has its foundations in metals trading – incorporating For personal use only the sourcing and distribution of manganese ore products and subs
Slide 3: OMH – An Overview, September 2007
For personal use only ASX Code: OMH Website: www.omholdingsltd.com OMH – An Overview September 2007 Slide 1
Slide 4: Disclaimer Notice
Disclaimer Notice For personal use only This presentation contains certain forward-looking information and forecast. Such forecasts, projections and information are not a guarantee of the Group future performance and include unknown risks and uncertainties. Accordingly, the actual results and develo
Slide 5: Overview
Overview For personal use only • Singapore based commodity house – Listed on ASX since March 1998 • China focussed marketing division – Ores, alloys, metals • Integrated manganese producer – Bootu Creek Manganese Mine – Qinzhou Ferro-alloy Smelter 3 Slide 3
Slide 6: First Half Highlights
First Half 07 Highlights For personal use only CORPORATE • Increase in sales revenue by 66% to A$128.3 million. • Increase in profit after tax to A$15.2 million. • Interim dividend of A$0.02 per share declared. • Basic EPS increased to A$0.088. • Cash reserves increased to A$12.7 million excluding c
Slide 7: First Half Highlights
First Half 07 Highlights For personal use only QINZHOU SMELTER • Record production of 16,086 tonnes of High Carbon Ferro Manganese (“HC FeMn”). • Achieved operating profit after tax of A$4.5 million for the half year. TRADING OPERATIONS • Record volume of chrome and manganese ores traded. • The mark
Slide 8: Strategy
STRATEGY For personal use only • Increase profits in existing business units through cost reduction and productivity gains. • Achieve greater economy of scale via capacity expansion. • Develop new businesses independently or in partnership with strategic partners. • Expansion via merger and acquisit
Slide 9: Corporate Structure
Corporate Structure For personal use only OM Holdings Limited Listed on ASX March 1998 Function - Holding Company OM (Manganese) Limited OM Holdings (BVI) Ltd Territory Resources Ltd (Incorporated in Australia - 100%) (Incorporated in British Virgin Islands - 100%) (Incorporated in Australia - 13%)
Slide 10: Value Chain – Existing
Value Chain …Adding value from mine to market Existing For personal use only Third Party Mines Chinese Ferro-Alloy Smelters 400kt Mn 475kt Mn 350kt Mn Bootu Creek Singapore Asian Manganese 550kt Mn Marketing & Steel Logistics Market 75kt Mn 50kt Mn 100% Qinzhou Ferro- 50kt Ferro Alloy Alloy Smelter
Slide 11: Value Chain – Future
Value Chain …Adding value from mine to market Future For personal use only World Ferro-Alloy Smelters Third Party Mines 500kt Mn 550kt Mn 400kt Mn World Steel and Bootu Creek Singapore Marketing stainless steel Manganese with expansion & Logistics Mills 700kt Mn and merger & acquisition 150kt(?) 100
Slide 12: Capital Structure
Capital Structure For personal use only • Fully paid ordinary shares 221.6million • Unlisted options 23.0million • Market Cap A$292million Based on share price of A$1.32/share as at 31 Aug 07 • Major Shareholders Board/Management ~ 20.0% Strategic Partners ~ 14.4% HSBC Custody Nominees ~ 10.6% Zero
Slide 13: Overview - Financial Returns
Overview - Financial Returns For personal use only Revenue Dividends A$ Cents Per Share 250 2.5 200 2.0 A $ M illio ns 150 1.5 June Half 100 1.0 50 0.5 Dec Half 0.0 0 2003 2004 2005 2006 2007 Year 2003 2004 2005 2006 2007 Year Profit/(Loss) attributable to Basic earnings/(Loss) per shareholders shar
Slide 14: Balance Sheet Overview
Balance Sheet Overview For personal use only 31 Dec 2005 31 Dec 2006 30 June 2007 A$ m A$ m A$ m Assets Cash 23.3 11.6 20.6 Inventories 17.9 34.9 23.6 Current Trade Receivables and Other Assets 20.9 15.9 39.1 Total Current Assets 62.1 62.4 83.3 Liabilities Borrowings 7.7 28.7 18.6 Current Trade Paya
Slide 15: Overview - Divisions
Overview - Divisions For personal use only Mining Bootu Creek Manganese Mine Territory Resources Ltd Manufacturing (13%) ASX code: TTY Qinzhou Ferro-alloy Smelter Liaoyang Marketing Boron Alloy (51%) Singapore Marketing & Logistics 13 Slide 13
Slide 16: Manganese - Bootu Creek
Manganese - Bootu Creek For personal use only • Overview • Operations • Exploration • Growth 14 Slide 14
Slide 17: Bootu Creek Location
Bootu Creek Location For personal use only 15 Slide 15
Slide 18: Bootu Creek Site Layout
Bootu Creek Site Layout For personal use only 16 Slide 16
Slide 19: Bootu Creek - Mining
Bootu Creek - Mining For personal use only • Mining - ~ 4 million bcm’s / year - Low strip ratio ~ 6.5t waste:1t ore - Good ore consistency & widths - Multiple mining options - Two – three pits simultaneously - Scraper fleet mobilised to pre-strip pits 17 Slide 17
Slide 20: Bootu Creek – Mn Production
Bootu Creek – Mn Production For personal use only Record 57k tonnes Monthly Manganese Production 60,000 Fines conveyor installed Wet season affected 50,000 40,000 Plant commissioned Dry T's 30,000 20,000 10,000 - 6 6 7 7 7 06 06 06 06 06 07 07 7 07 07 l- 0 l- 0 -0 -0 r -0 -0 n- g- p- v- c- n- n- g-
Slide 21: Bootu Creek - Process
Bootu Creek - Process For personal use only Ore • Process Design Criteria - Annualised Crusher - Ore crushed ~ 1.5 mtpa @ 25% Mn - Production capacity (Lumps & Fines) Stockpile - Design Rates ~ 550kt pa Scrubber - Annualised June 07 Qtr ~ 600kt pa - Availability improvements ~ 650kt <75 mm and >8 mm
Slide 22: Bootu Creek – Rectification
Bootu Creek – Rectification For personal use only • Project Goals – Rectify design defects in the crushed ore handling system – Project scope • New ROM bin • New reclaim bin • Modified conveyor systems – Project budget – A$5.3 million – Commissioning date – Nov 2007 • Progress To Date – Design >95%
Slide 23: Bootu Creek – Production Improvement
Bootu Creek – Production Improvement For personal use only • Production Improvements 100.00 Scrubber Availability – Increase in scrubber (and overall 90.00 80.00 plant) availabilities 70.00 % – Improved maintenance practices 60.00 50.00 – Improved shutdown practices 40.00 – Increased operator plant
Slide 24: Bootu Creek - Logistics
Bootu Creek - Logistics For personal use only • Logistics – Road haulage • Performing well • Spare capacity available – Rail capacity for 700kt under existing service – Port • > 500kt shipped to date • Two ~ 30kt vessels per month • New shiploader commissioned 22 Slide 22
Slide 25: Bootu Creek – Resources
Bootu Creek – Resources For personal use only • Resources/Reserves (As at December 2006) – Resources: 15.9mt @ 25% – Reserves: 7.2mt @ 27% Chugga 4.4Mt 24% – Life of Mine: ~ 8 years Chugga West 0.8Mt 24% – 10 kms near mine potential Gogo 3.1Mt 29% – CY2006 drilling program Tourag 2.4Mt 23% Xhosa 0.3
Slide 26: Bootu Creek - Exploration
Bootu Creek - Exploration For personal use only • Exploration Strategy – Target: double existing resource base to support 1 million tpa production for > 10 year mine life • CY2007 Program – Budget A$3.60 million – 25,000 mtrs RC drilling – 1,500 mtrs diamond drilling for Metallurgical (densimetric)
Slide 27: Bootu Creek – Tenure
Bootu Creek – Tenure For personal use only Renner Springs Helen Springs Bootu Creek Banka Banka 25 Slide 25
Slide 28: Bootu Creek – Expansion Options
Bootu Creek – Expansion Options For personal use only • Production Optimisation – Increase to 700kts based on improved availabilities and operating practices – Cost – minimal/variable operating only – Timing – CY2008 – Logistic capacity available • Expansion option to 1 mil tpa – Parallel drum/cyclo
Slide 29: Smelter - OM Qinzhou
Smelter - OM Qinzhou For personal use only • Overview • Expansion • Competitive Advantage 27 Slide 27
Slide 30: OM Qinzhou Overview
OM Qinzhou For personal use only • Overview – Investment to date - US$8.3 million – Staff strength 250 employees – Awarded ISO9001: 2000 Certificate – Significant appreciation in land value – Three furnaces - 55k tpa ferro alloy – 2007 budget – 42k mt HcFeMn, 50K mt high Mn content slag 28 Slide 28
Slide 31: OM Qinzhou - Expansion Option
OM Qinzhou-Expansion Option For personal use only • Expansion Option – Phase 2 – Approval granted by Government in 2002 to build 6 furnaces with 150,000mt final annual production capacity. – Currently exploring expansion options versus other opportunities including Merger & Acquisition and Joint Ven
Slide 32: OM Qinzhou - Competitive Advantage
OM Qinzhou - Competitive Advantage For personal use only • Significant Competitive Advantage – Low cost producer • high manganese recovery rate • availability of low cost power – Strategic location • enables OMQ to benefit from low logistic cost advantages both export and local sales – Proximity to
Slide 33: Marketing
Marketing For personal use only • Services • Logistics Management 31 Slide 31
Slide 34: Marketing Services
Marketing For personal use only • Services – Source materials for buyers – Logistics, credit & product management – Fee for service, not a position taker • Products – Ores: manganese, chrome, iron – Alloys: manganese, chrome, silicon, ferro-silicon / boron • New business – New relationships/ product
Slide 35: Summary
Summary For personal use only • Supplier to the steelmaking industry • Optimisation • Growth • Diversification 33 Slide 33
Slide 36: ASX Code: OMH – OMH An Overview
For personal use only ASX Code: OMH Website: www.omholdingsltd.com OMH – An Overview September 2007 Slide 34