Mineral Resources Limited · ASX:MIN
Mineral Resources — FY2015 Earnings Presentation
25 slides from Mineral Resources's earnings presentation, Aug 20, 2015
Slide 1: MRL 2015 Full-Year Results Presentation
Mineral Resources Limited (ASX:MIN) Integrated Mining Services For personal use only MRL 2015 FULL-YEAR RESULTS PRESENTATION August 2015 August 2015 | www.mrl.com.au | Slide No. 1
Slide 2: Corporate Profile
For personal use only CORPORATE PROFILE SERVICES PROVIDER MINERALS PRODUCER PROCESS MINERALS CRUSHING SERVICES PIHA MINERAL SERVICES POLARIS METALS MESA MINERALS * • Mineral Processing • Crushing & • Services • External hire of diesel • Iron Ore Exploration • Manganese Technology • Logistics Screeni
Slide 3: Corporate Governance
For personal use only CORPORATE GOVERNANCE • Small, effective board with selected skill sets for MRL Board Structure performance and culture. • Board members committed to Peter Wade Non-Executive Chairman represent all stakeholders Chris Ellison Managing Director • Board independence and governance
Slide 4: 2015 Highlights
For personal use only 2015 HIGHLIGHTS • Underlying net profit of $109m – 7% above consensus estimates • Core mining services business meets all performance targets • Major EPC work completed and sets new contracting benchmarks • Record commodity exports achieved • Significant cost reductions and pro
Slide 5: Operational Highlights
For personal use only OPERATIONAL HIGHLIGHTS Safety • 12 month TRIFR down 23% from 7.1 in FY 14 to 5.5 in FY 15 Mining Services • 25mtpa Nammuldi Below Water Table process plant EPC project completed on to achieve all client metrics • Significant new work secured as a result of outstanding EPC perfo
Slide 6: Financial Highlights
For personal use only FINANCIAL HIGHLIGHTS • Revenue $1.3billion • EBITDA - $283m • Underlying net profit - $109m Net (Debt)/Cash 150 • Balance sheet further strengthened 100 118 • Debt reduced by $34m 50 81 98 - • Cash on hand > $200m (50) H1FY13 H2FY13 (59) H1FY14 H2FY14 H1FY15 H2FY15 • Net Cash -
Slide 7: Net Cash Movement FY14 to FY15
For personal use only NET CASH MOVEMENT FY14 to FY15 $400 8 (109) * 283 * Working capital timing difference $350 $300 (65) 42 (15) $250 (95) $200 179 (11) (64) $150 (120) 118 4 $100 81 $50 $0 Net Cash EBITDA Spinifex NBWT Trade Manganese Trade Taxation CAPEX AQA Investments Dividends Other Net Cash
Slide 8: MRL Safety Performance
For personal use only MRL SAFETY PERFORMANCE The Journey – Our Way of Working: • Roll out of ‘Crossroads’ Safety Intervention Program - program outlines business strategy to improve Safety, Performance and Culture across the wider group which is shared with all employees • OHM Management System over
Slide 9: Mining Services Business
For personal use only MINING SERVICES BUSINESS August 2015 | www.mrl.com.au | Slide No. 9
Slide 10: CSI / Construction
For personal use only CSI /CONSTRUCTION • Current economic cycle has resulted in: • Continuing focus on costs and productivity • Weakening of some of MRL’s competition • MRL’s EPC (fixed lump sum) model and off balance sheet BOO $/tonne solution well suited to this stage of business cycle • Pursuing
Slide 11: PIHA
For personal use only PIHA • PIHA’s traditional business continues to make a solid contribution to earnings • PIHA progressively moving to extend integrated manufacturing in the areas of: • Steel piles and heavy wall pipe • Valves and fittings • HDPE Fittings • Vent Master and Spiral Pipe acquisitio
Slide 12: PMI (Supply Chain Logistics)
For personal use only PMI (Supply Chain Logistics) • Camps – Continue to leverage accommodation facilities at our own operations to provide services for external customers • Design/Construct – Focus remains on smaller specialty process and beneficiation plants • Supply chain management supports • Ca
Slide 13: Mt Marion Lithium Project
For personal use only MT MARION LITHIUM PROJECT • MRL and Neo Metals have formal MOU with Jiangxi Ganfeng Lithium Co Ltd for: • Sale of 25% equity investment • Off-take Agreement for 100% of production at market price with floor • MOU implementation subject to completion of due diligence and approva
Slide 14: Commodities Business
For personal use only COMMODITIES BUSINESS August 2015 | www.mrl.com.au | Slide No. 14
Slide 15: Commodities Business Overview
For personal use only COMMODITIES BUSINESS OVERVIEW Commodity Export Sales Yilgarn • Record exports of 4.9mt from the Carina mine ‘000 WMT H1 -14 H2-14 FY-14 H1-15 H2 -15 FY-15 • Improved product delivery with purpose built Iron Valley 0 0 0 823 2,153 2,976 rolling stock • Product stockpile size inc
Slide 16: Achieved Prices vs Cash Costs
For personal use only ACHIEVED PRICES vrs CASH COSTS • Average of Platts price and achieved price during FY 2015 A$/WMT H1 H2 H1 H2 H1 H2 • Successful cost reduction and production FY13 FY13 FY14 FY14 FY15 FY15 enhancement programs at both sites • Mining cash costs reduced by 23% lower or Platts 102
Slide 17: Yilgarn Iron Ore
For personal use only YILGARN IRON ORE • Satellite mines will leverage Carina central processing infrastructure hub • J4 – construction of incremental site infrastructure underway • First ore from J4 in Q3 FY 2016 • Mining applications for J5 and Bungalbin East subject to Public Environmental Review
Slide 18: Pilbara Iron Ore
For personal use only PILBARA IRON ORE • Iron Valley mine site infrastructure finalised • Existing operations currently able to produce ~ 6mtpa of exports • Opportunities to increase output, improve fines product quality and improve the financial returns are being progressed. • Test work has confirm
Slide 19: MRL Strategic Focus
For personal use only MRL STRATEGIC FOCUS • Strengthened mining services and infrastructure company with a focus on continuing a service culture that continues to provide long term value add to clients and sustainable 20 year long term revenues across all economic cycles • Two key elements of this s
Slide 20: Carbon Fibre Products
For personal use only Carbon Fibre Products • Innovation remains at the forefront of MRL’s strategic focus • A key initiative of MRL is the development of carbon fibre manufacturing for a range of mining industry components • Prime, initial focus is the manufacture of a mining truck tray sub structu
Slide 21: Development of BOTS
For personal use only DEVELOPMENT OF BOTS • Progressing as planned – comprehensive review of elevated track and rolling stock design completed. • Review identified modifications to incorporate standard rail componentry that significantly reduces operational and approval risk. It reduce elevated trac
Slide 22: BOTS - Commercialisation
For personal use only BOTS - COMMERCIALISATION • The first application of BOTS is planned for the Iron Valley operation in the Pilbara • Iron Valley is a viable mining operation in its own right with the capacity to grow and underwrite the BOTS technology • MRL has control of the operation and provi
Slide 23: Transhipping
For personal use only TRANSHIPPING • MRL pursuing a multi-user port/ transhipping facility of 22 mtpa expandable to 50 mtpa within the Port Hedland harbour • Exclusive, long term partnership with world leader in transhipping, Canadian Steamship Lines (CSL), to deliver bulk logistics and transhipping
Slide 24: Growth & Outlook
For personal use only GROWTH & OUTLOOK • MRL’s underlying strengths remain as a mining services provider of cost effective and highly efficient equipment, infrastructure and processes • MRL is well placed to leverage this core expertise to deliver strategic infrastructure solutions which add value f
Slide 25: Disclaimer
For personal use only DISCLAIMER 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 respect