Mineral Resources Limited · ASX:MIN
Mineral Resources — H1 2013 Earnings Presentation
27 slides from Mineral Resources's earnings presentation, Feb 14, 2013
Slide 1: MRL Group Half Yearly Results
For personal use only MRL Group Half Yearly Results An Integrated Australian Mining Services Company February 2013 www.mineralresources.com.au
Slide 2: Service Provider and Minerals Producer group structure
For personal use only Service Provider Minerals Producer Process Minerals PIHA Crushing Services Polaris Metals Mesa Minerals (64% owned) International & Auvex Resources Mineral and base metals Pipeline, water & Specialist Iron Ore processing, logistics, dewatering services, Australia's largest reso
Slide 3: About Mineral Resources
For personal use only About Mineral Resources • Mineral Resources Limited is a Western Australian, publicly listed, ASX 200 company (ASX:MIN) with a market cap approximately $A2 billion • Employs in excess of 1,300 people • Largest Australian specialist contract crushing, materials handling and mini
Slide 4: Corporate & Operational Highlights
For personal use only Corporate & Operational Highlights • Mining services business • Installed BOO crushing capacity 130 MTPA • Christmas Creek 2 construction complete, ramp-up in progress • PIHA business strong, emerging de-watering business • 3 new BOO crushing contracts in operation, additional
Slide 5: Financial Highlights
For personal use only Financial Highlights • Record first half year EBITDA of $145 million • Strong annual NPAT skewed to second half • Fully franked interim dividend of 16.0 cents declared, supporting full year expectations • DRP available for interim dividend • $608 million syndicated debt and gua
Slide 6: Export Volume Growth
For personal use only Export Volume Growth 8 million tonnes 6 4 2 0 2009 2010 2011 2012 2013F Utah Point KBT2 ‘000 tonnes 2009 2010 2011 2012 H1 2013 Jan 13 Iron Ore . Utah Point 375 875 2,259 2,004 1,015 114 . KBT2 - - - 1,759 1,528 367 . Total 375 875 2,259 3,763 2,543 481 Manganese 275 428 449 26
Slide 7: Phil's Creek Iron Ore Mine
For personal use only Phil’s Creek Iron Ore Mine • Construction and commissioning of mine & plant complete, first ore mined October 2012 • The overall Pilbara iron ore operations re-organised to facilitate introduction of Phil’s Creek ore into the product offering. • Mine infrastructure developed in
Slide 8: Phil's Creek Iron Ore Mine
Phil’s Creek Iron Ore Mine For personal use only
Slide 9: Pilbara Deposits
For personal use only Pilbara Deposits
Slide 10: Poondano Iron Ore Project
For personal use only Poondano Iron Ore Project • Located 30km outside of Port Hedland in the Pilbara Region of WA, the Poondano Mine produces 1.5 million MTPA of the PMI Iron Ore Blend. • Quarry operations located on tenement to service aggregate and fill demand in the region. • Site approved for c
Slide 11: Poondano Iron Ore Project
For personal use only Poondano Iron Ore Project
Slide 12: Carina Iron Ore Mine
For personal use only Carina Iron Ore Mine • 3.7 million tonnes exported from the project since commencement of project in November 2011. • Mine development well advanced and ore supply and mine presents consistent ore grades. • Product gains recognition for quality by Chinese steel producers. • Mov
Slide 13: Carina Iron Ore Mine
For personal use only Carina Iron Ore Mine
Slide 14: Yilgarn Deposits
For personal use only Yilgarn Deposits
Slide 15: Ports: Utah Point, Port Hedland and Kwinana Berth
For personal use only Ports Utah Point, Port Hedland Kwinana Berth Terminal, Fremantle • Recent government announcements regarding Esperance Port development a positive sign of progress Kwinana Berth Terminal, Fremantle 15
Slide 16: Contract Crushing Operations
For personal use only Contract Crushing Operations • Installed crushing capacity increasing across all resource cycles • 62% increase in capacity achieved in 2013 Installed Crushing Capacity (MTPA) 140 120 100 80 60 40 20 0 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 17: New Build Own Operate (BOO) Crushing and Handling Contracts
3 new Build Own Operate (BOO) For personal use only Crushing and Handling Contracts Crushing Plant
Slide 18: CSI BOO plants
For personal use only CSI BOO plants
Slide 19: PIHA Contracting
PIHA For personal use only Contracting Marandoo Agricultural Areas Pipe Cutter Implement in Western Turner Syncline the Field Pipe Cutter Implement in the Field Western Turner Syncline Brockman 4 Eastern Borefield 3
Slide 20: Financial History (Since Listing)
For personal use only Financial History (Since Listing) Revenue EBITDA 350 1000 300 800 250 $ millions $ millions 600 200 150 400 100 200 50 0 0 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013 (half) (half) Net Assets 1000 900 800 700 $ millions 600 500 400 300 200 100 0 2007 2
Slide 21: Financial Performance
For personal use only Financial Performance $AUD millions HY Dec HY Dec • Revenue $500.3 million, up 22% 12 11 on corresponding half Revenue 500.3 408.8 • Record half year EBITDA, up 1% on corresponding half EBITDA 145.1 143.1 • NPAT substantially skewed to NPAT 63.0 80.5 second half • Balance sheet
Slide 22: Operational Cash Flow
Operational Cash Flow For personal use only $AUD millions HY Dec 12 HY Dec 11 EBITDA 145.1 143.1 CAPEX (including funded items) (238.0) (183.5) Net Interest Payments (2.5) 0.8 Income Taxes Paid (19.3) (29.8) Working Capital and Other (30.0) 24.2 Net Operating and Investing cash flow (144.7) (45.2) D
Slide 23: Movement in Profit before tax
Movement in Profit before tax For personal use only Dec half 2011 and Dec half 2012 Note: 60 Analysis demonstrates the change in profit before tax 40 result from H1 2012 to H1 2013. 20 0 Events of note: • New crushing contracts -20 in addition to the -40 expansion of existing work -60 • Carina mine
Slide 24: 2013 performance skewed to second half
For personal use only 2013 performance skewed to second half o Increased BOO contracting tonnes o Increased Fe tonnage for export o Increased port availability o Improved PIHA work in hand o Maintenance of strengthened iron ore pricing o Leading to: o Substantial increase in EBITDA o Substantial inc
Slide 25: Strategy & Basis for Future Growth
For personal use only Strategy & Basis for Future Growth o Sustainable, developed processing, mining services and commodities business. o Development of mine camp and accommodation business. o Increase exploration and drilling programme to establish mine life. o Broaden project delivery options – EP
Slide 26: Summary
Summary For personal use only • Half year result reflects global iron ore price slump • Underlying contract business growing with new projects coming on stream • Development projects on time and within budget • Completion of major phase of development for Phil’s Creek operations • Exploration progra
Slide 27: 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 respe