Kenmare Resources Plc · LSE:KMR
Kenmare Resources — Shareholder Meeting (May 2015)
18 slides from Kenmare Resources's shareholder meeting presentation, May 28, 2015
Slide 1: 2015 Annual General Meeting
2015 Annual General Meeting LISTED Dublin, 28 May 2015 PREMIUM 1
Slide 2: Disclaimer
Disclaimer This Presentation (the “Presentation”) has information or opinions on which it is significant in the context of the been prepared and issued by Kenmare based, or any other written or oral statements, estimates and projections Resources plc (the “Company” or information made available in c
Slide 3: Kenmare Resources – 2014/2015
Kenmare Resources – 2014/2015 Operations improving ➢ Mine production increasing ➢ Cost savings programme continuing ➢ Power issues addressed but more work to do Product market conditions remain challenging Restructured project financing for Moma Mine ➢ Additional US$50m facility ➢ Reduced fixed paym
Slide 4: Key Performance Indicators
Key Performance Indicators Production 2012 - 2014 (Half-Yearly) 000t Revenue & EBITDA 2010 – 2014 US$m 500,000 Zircon Ilmenite 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 H1 2012 H2 2012 H1 2013 H2 2013 H1 2014 H2 20014 ➢ HMC production increased 13% to 1,287,300 tonnes
Slide 5: 2014 Revenue Review
2014 Revenue Review Pricing Movement Focussing on costs in response to pricing and lowering unit costs through higher production and efficiencies 5
Slide 6: 2012 – 2014 Cash Operating Costs
2012 – 2014 Cash Operating Costs ➢ Cost per tonne fell in 2014, as expected from peak in 2013, due to: ➢ Increasing production ➢ Focus driving cost efficiencies ➢ Retrenchment programme in 2015 will deliver further cost efficiencies 6
Slide 7: Cost Efficiency Initiatives
Cost Efficiency Initiatives ➢ Cost efficiencies realised in the following areas: ➢ Labour: Reduced numbers of short-term contracts, catering cost reductions and lower recruitment costs ➢ Engineering: Efficiencies in plant maintenance and reduced dry mining costs ➢ Production Overheads: Reduced machi
Slide 8: Power Solutions
Power Solutions Power stability and reliability issues have been in three core areas: 1 ) Voltage dips and spikes ➢ Installation of Voltage Stabilisation Equipment (Dip Doctor) ➢ Streamlined procedures to restart operations after a stoppage 2 ) Power line transmission capacities ➢ Peak time load ris
Slide 9: Marketing
Marketing ➢ Global pigment production grew by ~4% in 2014 ➢ Pigment production in China grew by ~16% in 2014 and ~8.3% in Q1 2015 ➢ Higher pigment plant operating rates in 2015 to contribute to higher feedstock demand ➢ New titanium slag plants starting production in the Middle East & Asia will cons
Slide 10: April 2015 Loan Amendment
April 2015 Loan Amendment The key terms of the debt restructuring include: ➢ The provision by the lenders of US$50 million in additional standby funding ➢ Extension of debt maturities ➢ Removal of most fixed amortisation requirements to be replaced with a cash sweep leaving a minimum balance of US$3
Slide 11: Iluka Resources Conditional Proposal
Iluka Resources Conditional Proposal ➢ A revised, non-binding proposal was announced on 30th April at a ratio of 0.016 Iluka shares for each Kenmare share ➢ Taking into consideration Kenmare's financial position, prevailing market conditions and the terms of the debt amendment Kenmare believes it is
Slide 12: Kenmare Resources plc contact details
Kenmare Resources plc Kenmare Chatham House │ ChathamResources plc 2 │ Ireland Street │ Dublin Chatham House │ Chatham Street │ Dublin 2 │ Ireland www.kenmareresources.com www.kenmareresources.com
Slide 13: Appendix
(a) Appendix 13
Slide 14: Mozambique Overview
Mozambique Overview Quick facts (2013) Capital Maputo Government type Presidential Democratic Republic S&P (B / Stable) Moma Ratings Fitch (B+ / Positive) Mine Nominal GDP US$15.3bn Total Debt / GDP 46.7% Net FDIs / GDP 10.0% GDP Growth 6.6% Population 24 million International natural resources Key
Slide 15: Operations Review
Operations Review The Moma Mine Operating Characteristics ➢ Kenmare's expanded operating capacity is 1.2mtpa of ➢ >4mt have been shipped to date ilmenite, plus co-products zircon & rutile ➢ Coastal location; no overland transport ➢ Mining performed by three dredges floating in two artificial ➢ Surfa
Slide 16: Kenmare Resources at a Glance
Kenmare Resources at a Glance Location of mine Moma Mine, North-east Coast Mozambique Products (market share)(1) Titanium feedstock (approximately 8% global supply) One of the world’s largest known titanium minerals Mine life deposits with 100+ years at expanded production levels Primary: London Sto
Slide 17: KMAD - Community Relations
KMAD - Community Relations 2013 – 2015 Strategic Plan Agreed, MOU signed with community leaders and District Government Current Projects • Health post started operating in March 2013 & ambulance allocated for community service • 6 new primary schools constructed • MOU with Government for vocational
Slide 18: Reserves & Resources
Reserves & Resources Reserves & resources table as at 31 December 2014 % Ilmenite % Ilmenite % Rutile in % Zircon in THM Ilmenite Rutile Zircon Reserves Category Ore (Mt) % THM* % Slime in THM in ore ore ore (Mt) (Mt) (Mt) (Mt) Namalope Proved 246 4.1 82 3.3 0.077 0.24 8.05 10 8.2 0.19 0.58 Namalope