Southern Alliance Mining Ltd. · SGX:QNS
Southern Alliance Mining — FY2020 Earnings Presentation
31 slides from Southern Alliance Mining's earnings presentation, October 2020
Slide 1: Southern Alliance Mining Ltd. Corporate Presentation
SOUTHERN ALLIANCE MINING LTD. CORPORATE PRESENTATION October 2020
Slide 2: Content
CONTENT I. CORPORATE OVERVIEW II. FINANCIAL INFORMATION III. OUTLOOK & BUSINESS STRATEGY
Slide 3: Important Notice
IMPORTANT NOTICE This presentation has been prepared by Southern Alliance Mining Pte. Ltd. ("SAM" or the "Company") solely for the benefit of you (the "Recipient"). The contents of this presentation may not be copied, reproduced, redistributed, quoted, referred to, or otherwise disclosed, in whole o
Slide 4: Corporate Overview
[!] CORPORATE sit OVERVIEW
Slide 5: Corporate Overview
CORPORATE OVERVIEW Business Principally involved in the exploration, mining, processing and sale of iron ore Location The Group’s headquarter is located in Pahang, Malaysia Its iron ore mine, the Chaah Mine, is located in Johor, Malaysia c History Operation at the Chaah Mine has commenced since 2008
Slide 6: Directors & Key Management
DIRECTORS & KEY MANAGEMENT Dato’ Teh Teck Tee Dato’ Sri Pek Kok Sam Lim Wei Hung Non-Executive Non-Independent Chief Executive Officer & Chief Financial Officer Chairman Executive Director • Over 20 years of experience in • Co-founder of the Company • Co-founder of the Company financial accounting m
Slide 7: Iron Ore Mining Assets
IRON ORE MINING ASSETS Operating open pit mine Mining leases Area expiry date Chaah Mine 22 March 2024 225.7 hectares HSDSB Head Office The state authority has approved the mining leases till March 2039. Exploration projects Mining leases Area expiry date Kota Tinggi (79.2 ha) Mao’kil 7 July 2023 22
Slide 8: Mining Process & Products
MINING PROCESS & PRODUCTS Exploration and Evaluation 1 Extraction of Raw Materials 2 Products Customers Pipe coating companies 3 Pipe coating Crushing and Screening materials Beneficiation 4 Iron ore Steel mills in Malaysia concentrate • Alliance Steel (M) Sdn Bhd, (62%-65% Fe) • Eastern Steel Sdn B
Slide 9: Chaah Mine - Overview
CHAAH MINE - OVERVIEW Location Southwest of the township of Chaah, south- eastern slopes of Bukit Lop in Johor, Malaysia The open pit at Chaah Mine Crushing Facilities 4 fixed crushing plants and 2 lines of mobile crushers Crushing facilities Dumper and excavator
Slide 10: Infrastructure & Equipment
INFRASTRUCTURE & EQUIPMENT Processing Facilities 2 beneficiation plants - both capable of operating on a 24-hour shift 60,000 tonnes - approximate monthly production capacity of iron ore concentrates (not including pipe coating materials) Beneficiation plant Transport Iron ore produced from the Chaa
Slide 11: Reported Reserves and Valuation
REPORTED RESERVES AND VALUATION Total Iron Ore Mineral Resources as at 31 July 2020 Total Iron Ore Reserves as at 31 July 2020 Tonnes Grade (%) Change in Tonnes Grade (%) Change in Category Category (Mt) Fe SiO2 Al2O3 P2O5 tonne (%) (Mt) Fe SiO2 Al2O3 P2O5 tonne (%) Gross attributable to license and
Slide 12: Production Reconciliation
PRODUCTION RECONCILIATON Production Reconciliation Jun 2014 – Jul 2019 Production Reconciliation for FY2020 Million Fe Grade Million Fe Grade Source Material Source Material Tonnes (%) Tonnes (%) Indicated Resources 2.73 55.8 Indicated Resources 0.81 54.8 Inferred Resources 0.63 41.5 Inferred Resour
Slide 13: Financial Information
Slide 14: Historical Revenue Contribution & Trend
HISTORICAL REVENUE CONTRIBUTION & TREND USD/DM REVENUE TREND AGAINST IRON ORE Fe62% REVENUE CONTRIBUTION BY PRODUCTS RM’Mil 140 254.2 Million Iron Ore Concentrate Pipe Coating Iron Ore Tailings 250 120 5.0% 3.8% 3.2% 6.9% 189.1 Million 200 100 14.9% 80 150 60 98.1 Million 100 96.2% 96.8% 95.0% 40 64
Slide 15: Historical Sales
HISTORICAL SALES FY 2017 FY2018 FY2019 FY2020 Sales ASP (2) REV (3) ASP REV ASP REV ASP REV (1) DMT DMT DMT DMT (RM) (RM’000) (RM) (RM’000) (RM) (RM’000) (RM) (RM’000) Iron ore concentrate 305,043 199.3 60,795 466,982 202.05 94,354 525,628 348.4 183,129 556,849 357 198,797 Pipe coating materials 11,
Slide 16: Revenue Tracks Iron Ore Prices Closely
REVENUE TRACKS IRON ORE PRICES CLOSELY FY 2020 FY 2019 Increase / Decrease Sales (RM’000) (RM’000) Sales reported for first half year 141,018 55,239 155% Operating profit (OP) after tax* reported for first half year 33,013 2,948 1,020% Sales reported for second half year 113,227 133,902 (15%) Operat
Slide 17: Financial Highlights
FINANCIAL HIGHLIGHTS Financial Highlights FY2020 FY2019 Change Note (RM million) Unaudited Audited Revenue 254.2 189.1 34% Both sales volume and selling price increased Gross Profit 107.1 62.0 73% Cost higher in line with higher production volume but revenue Gross Profit Margin (%) 42.1% 32.8% 9.3 p
Slide 18: Financial Highlights
FINANCIAL HIGHLIGHTS The increase in revenue from Revenue & Gross Profit & Operating Cash Flow (RM’ million) FY2017 to FY2020 was mainly 254.2 due to: 1. Higher volume of iron ore 220.0 concentrate and pipe-coating 189.1 material mainly attributable 170.0 107.1 to sales to new customers 116.6 2. In
Slide 19: Financial Position: Non-Current Assets
FINANCIAL POSITION : NON-CURRENT ASSETS As at As at As at As at RM’000 31 July 2017 31 July 2018 31 July 2019 31 July 2020 (Audited) (Audited) (Audited) (Unaudited) Property, plant and equipment 46,470 38,997 26,298 28,555 Right-of-use assets - - - 8,583 Mine properties 45,565 39,133 30,518 26,059 I
Slide 20: Financial Position: Current Assets
FINANCIAL POSITION : CURRENT ASSETS As at As at As at As at RM’000 31 July 2017 31 July 2018 31 July 2019 31 July 2020 (Audited) (Audited) (Audited) (Unaudited) Inventory 28,997 14,053 13,439 8,847 Trade and other receivables 8,196 7,486 19,977 21,973 Contract assets 762 6,257 15,525 4,248 Prepaymen
Slide 21: Financial Position: Liabilities
FINANCIAL POSITION : LIABILITIES As at As at As at As at RM’000 31 July 2017 31 July 2018 31 July 2019 31 July 2020 (Audited) (Audited) (Audited) (Unaudited) Current Liabilities Loans and borrowings 1,536 2,054 1,399 3,307 Trade and other payables 39,356 34,806 22,420 20,399 Total current liabilitie
Slide 22: Financial Position: Net Current Assets & Net Assets
FINANCIAL POSITION : NET CURRENT ASSETS & NET ASSETS As at As at As at As at RM’000 31 July 2017 31 July 2018 31 July 2019 31 July 2020 (Audited) (Audited) (Audited) (Unaudited) Net Current Assets / (Liabilities) Total current assets 43,453 36,048 104,691 188,001 Total current liabilities 40,892 36,
Slide 23: Prospects & Business Strategy
Slide 24: Prospects: Industry Outlook
PROSPECTS: INDUSTRY OUTLOOK Iron Ore Prices and Demand expected to remain at elevated levels throughout 2020 Iron Ore Prices - September 2019 – September 2020 (USD) ▪ Leading banks such as BOA, Citibank, Credit Suisse and JP Morgan have all upgraded their iron ore price forecast mainly due to the ri
Slide 25: Prospects: Growth Drivers
PROSPECTS: GROWTH DRIVERS • China iron ore imports are expected to rise 3.7% yoy in 2020 to reach 1.12 billion tons and is expected to climb to 1.3 billion tons in 2022 [1] China to drive Iron • PBC has lowered interest rates and cut reserve requirement for banks, which, in Ore Demand turn, has stim
Slide 26: Share Prices of Major Iron Ore Producers Track Iron Ore Price Closely
SHARE PRICES OF MAJOR IRON ORE PRODUCERS TRACK IRON ORE PRICE CLOSELY Source: Bloomberg Source: Bloomberg, 21 September 2020
Slide 27: Business Strategy: Future Plans
BUSINESS STRATEGY: FUTURE PLANS Further exploration activities To carry out further exploration activities, including: • exploration work for mineral deposits at Exploration Assets • exploration work at the Chaah Mine to define extensions to the existing reserves Investment into equipment and infras
Slide 28: Competitive Strengths
COMPETITIVE STRENGTHS 11 years of production and sales track record Extensive knowledge and experience in mining 11 years of operational track records at Chaah Mine Founders and Directors have over 30 years of which is backed by good and long-standing cumulative experience in the exploration and min
Slide 29: Stock Performance
STOCK PERFORMANCE 4.5mm 0.30 0.300 4.0mm 0.295 3.5mm 0.290 3.0mm 0.285 2.5mm 0.280 2.0mm 0.275 1.5mm 0.270 1.0mm 0.265 .5mm 0.260 0 0.255 Southern Alliance Mining Ltd. (Catalist:QNS) - Volume Southern Alliance Mining Ltd. (Catalist:QNS) - Share Pricing
Slide 30: Sponsor's Statement
SPONSOR’S STATEMENT Southern Alliance Mining Ltd. (the “Company”) was listed on Catalist of the Singapore Exchange Securities Trading Limited on 26 June 2020. The initial public offering of the Company was sponsored by PrimePartners Corporate Finance Pte. Ltd. (the “Sponsor”). This announcement has
Slide 31: For more information, please contact
For more information, please contact: Romil Singh / Reyna Mei at romil@financialpr.com.sg / Reyna@financialpr.com.sg. Tel: +65 6438 2990
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