Mineral Resources Limited · ASX:MIN
Mineral Resources — FY2010 Earnings Presentation
33 slides from Mineral Resources's earnings presentation, Aug 19, 2010
Slide 1: Moving Ahead: Real Action
For personal use only An integrated supplier of goods and services to the Resources Sector Moving Ahead: Real Action Peter Wade, Chairman Bruce Goulds, CFO
Slide 2: 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
Slide 3: Presentation Outline
PRESENTATION OUTLINE For personal use only About Mineral Resources Limited Result Highlights and Overview Operational Performance Financial Performance Strategy, Issues and Outlook
Slide 4: About Mineral Resources Limited
ABOUT MINERAL RESOURCES LIMITED For personal use only Operating since 1992, original business founders still manage company Listed on ASX in 2006, advanced to ASX 200 in March 2010 Five subsidiary companies: PIHA Pty Ltd – specialist supplier of piping and general infrastructure Crushing Servi
Slide 5: About Mineral Resources Limited
ABOUT MINERAL RESOURCES LIMITED For personal use only Recognised as the premier contract crushing company in Australia through BOO production model Expanding role in the production and export of manganese and iron ore commodities Targeting development of BOO infrastructure opportunities A pr
Slide 6: Corporate Highlights
For personal use only Corporate Highlights CSI presented with prestigious Rio Tinto “Supplier of Excellence” awards under iron ore supplier recognition programme MRL elevated into ASX 200 Strengthening of Board capability through the appointment of Kelvin Flynn as Non-Executive Director Hanc
Slide 7: Financial Highlights
For personal use only Financial Highlights Headline net profit after tax of $97.2 million, an improvement of 119.4% on the previous year. Normalised net profit after tax (before one off tax adjustment) of $62.5 million, an improvement of 26% on the previous year Final fully franked dividend of
Slide 8: Positioned for growth
For personal use only Positioned for growth Growing through the resource cycle Record revenue and profit Net debt free and strong cash position Balance sheet strength capable of supporting growth projections Internal cash flow to fund capital spend requirements
Slide 9: Safety is our absolute priority
SAFETY IS OUR ABSOLUTE PRIORITY For personal use only Group Lost Time Injury Frequency Rate (expressed as injuries per million man hours) 18 16 14 12 10 8 6 4 2 0 2006 2010 Mineral Resources Industry Average
Slide 10: Export Volumes 2010
For personal use only Export Volumes 2010 2010 Actual 2009 Actual Volume Volume (tonnes) (tonnes) Iron Ore 875,000 375,000 Manganese 428,000 275,000 Total 1,303,000 650,000
Slide 11: Peak Hill Manganese Operation
For personal use only Peak Hill Manganese Operation
Slide 12: Iron ore reclaiming for export
For personal use only Iron ore reclaiming for export
Slide 13: BOO primary crusher under construction
For personal use only BOO primary crusher under construction
Slide 14: YIOP exploration camp
For personal use only YIOP exploration camp
Slide 15: Oversize ore crusher building
For personal use only Oversize ore crusher building
Slide 16: Pipe spooling in workshop
For personal use only Pipe spooling in workshop
Slide 17: Desalination pipework
For personal use only Desalination pipework
Slide 18: Cross country electrical conduit
For personal use only Cross country electrical conduit
Slide 19: Financial History
FINANCIAL HISTORY For personal use only Revenue 350 300 250 $ million 200 150 100 50 - 2006 2007 2008 2009 2010 NPAT 120 100 80 $ million 60 40 20 - 2006 2007 2008 2009 2010
Slide 20: Financial Performance
FINANCIAL PERFORMANCE For personal use only $AUD millions Jun 10 full Jun 09 % year full year change Revenue 322.4 259.6 +24% NPAT 97.2 44.3 +119.4% EPS (shares on 58.3 35.8 +62.8% issue at 18/8/10) Net Assets 485.7 144.8 +235.4% Net Cash 88.2 (11.6) Funds Employed 397.5 156.4 +154.2% Net Cashflow 1
Slide 21: EBIT Profit Performance
EBIT PROFIT PERFORMANCE For personal use only 120 100 80 60 $ millions 40 20 - -20 -40 2010 Operating 2010 2009 Tax Finance Costs NPAT
Slide 22: Balance Sheet Strength
BALANCE SHEET STRENGTH For personal use only $AUD millions Jun 10 Jun 09 Jun 08 Total Assets 844.8 288.9 223.6 Total Liabilities (359.1) (144.0) (107.6) Net Assets 485.7 144.8 116.0 Net Cash Position 88.2 (11.6) 21.5 Funds Employed 397.5 156.4 94.5 Recommended fully franked dividend of 13.6 cents fo
Slide 23: Operational Cash Flow
OPERATIONAL CASH FLOW For personal use only $AUD millions FY Jun 10 FY Jun 09 EBITDA 103.7 74.4 CAPEX (including funded (88.0) (56.6) items) Net Interest Payments (2.7) (1.8) Income Taxes Paid (17.3) (24.1) Working Capital and Other 94.0 5.9 Net Operating and Investing 89.7 (2.2) Cashflow Financing
Slide 24: 2010 Cashflow Movements
2010 CASHFLOW MOVEMENTS For personal use only 200 150 100 $ million 50 - -50 -100 Opening Operations Finance & CAPEX Investments Shares Borrowings Dividend Closing Tax issued
Slide 25: Financial History
For personal use only - 1,000 1,200 200 400 600 800 28/07/2006 28/08/2006 28/09/2006 28/10/2006 28/11/2006 28/12/2006 28/01/2007 28/02/2007 31/03/2007 30/04/2007 31/05/2007 30/06/2007 31/07/2007 31/08/2007 30/09/2007 31/10/2007 30/11/2007 31/12/2007 31/01/2008 29/02/2008 FINANCIAL HISTORY 31/03/2008
Slide 26: Strategy and Basis of Future Growth
STRATEGY AND BASIS OF FUTURE GROWTH For personal use only Continue to build a sustainable diversified processing and mineral services and commodities business that satisfies the requirements of all stakeholders through: Successfully winning and undertaking profitable contracts Adding value to ou
Slide 27: Issues Relevant to Future Growth
ISSUES RELEVANT TO FUTURE GROWTH For personal use only Strength of AUD versus USD Demand and pricing of iron ore and manganese commodities Strength of world economy and particularly expansion of Chinese requirement for steel making minerals Implementation of Mineral Resource Rental Tax – timing
Slide 28: Outlook & Operational Targets FY 2011
OUTLOOK & OPERATIONAL TARGETS FY 2011 For personal use only Commence export of iron ore and manganese through Utah Point berth - Q2 Move into production at Christmas Creek Iron operation with BOO crushing contract - Q3 Develop Mt Marion lithium operation and export product – Q3 Production of
Slide 29: Contract Crushing Target
CONTRACT CRUSHING TARGET For personal use only Growth in Annual Installed Crusher Capacity Tonnes Forecast Forecast Forecast 2005 2006 2007 2008 2009 2010 2011 2012 Calendar Year
Slide 30: China is forecast to double iron ore imports
ID Mineral Resources Limited For personal use only China is forecast to double iron ore imports in the next 6 years Seabome iron ore imporis Soutoe Actual ea - G16, CBI F Bota - Pas Tow wstirates Forecast
Slide 31: Economic Outlook
ECONOMIC OUTLOOK For personal use only IMF World Economic Outlook
Slide 32: Commodity Price Forecast
COMMODITY PRICE FORECAST For personal use only •Commodity prices remaining above long term trend •Continuing growth in China expected to support iron ore price •Recovering global economy under stress but iron ore and manganese prices to remain solid •China growth both risk and opportunity to commodi
Slide 33: Summary Position
SUMMMARY POSITION For personal use only MRL results for the FY 2010 are outstanding The ongoing pipeline of projects and opportunities is significant and the business is well placed to gain from continued growth in the resource sector The balance sheet, cash position and projected cash flow ar