Jupiter Mines Limited · ASX:JMS
Jupiter Mines — Investor Presentation (April 2018)
32 slides from Jupiter Mines's investor presentation, Apr 18, 2018
Slide 1: Investor Presentation April 2018
For personal use only Investor Presentation April 2018 ASX Code: JMS
Slide 2: Disclaimer
Disclaimer IMPORTANT: Please read the following before continuing. For personal use only This Presentation has been prepared by Jupiter Mines Limited ACN 105 991 740 (Jupiter or the Company) solely for information purposes. This Presentation has not been approved by any regulatory or supervisory aut
Slide 3: Introduction
Introduction For personal use only Capital Structure Ownership Structure Shares on Issue # 1,948 million Ntsimbintle Mining (Pty) Ltd Options on Issue # Nil IPO Issue Price A$ $0.40 100% 74% 26% Market Capitalisation A$ $779 million Jupiter Kalahari S.A Main Street 774 (Pty) Ltd Attributable Cash* A
Slide 4: Board & Management
Board & Management For personal use only Jupiter Team Tshipi Team Brian Gilbertson Non Executive Chairman Ezekiel Lotlhare Chief Executive Officer In 1997, Gencor Limited restructured its non-precious metals interests as Billiton plc. With Mr Gilbertson as Executive Chairman, Billiton plc raised U
Slide 5: History of Delivering Results
History of Delivering Results For personal use only Management delivered a fully operating mine at a cost of c.A$200M (100% of the mine, which is now paid back to shareholders through cash distributions) and is today operating on a debt free basis with strong cash generation capabilities 2018 (FY)
Slide 6: Tshipi
For personal use only Tshipi
Slide 7: Safety – Tshipi's Top Priority
For personal use only Safety – Tshipi’s Top Priority Proud track record of safety Lost Time Injuries No fatalities since Tshipi’s inception 5 # of occurences No section 54 stoppages since 2013 ― proactive engagement with the 4 Department of Mineral Resources Comprehensive framework to mitiga
Slide 8: Tshipi at a Glance
For personal use only Tshipi at a Glance Overview Location Based in the Kalahari Manganese Field, Tshipi Botswana Mafikeng Pretoria Description Borwa is a shallow open-cast mine located on a Johannesburg large and homogenous ore body Hotazel Klerksdorp Durban Resource Total estimated manganese r
Slide 9: One of The Largest and Lowest Cost Manganese Exporters Globally
For personal use only 1 One of The Largest and Lowest Cost Manganese Exporters Globally Large-scale production of c.3.3 Production by Mine (CY 2017E) million tonnes per year (current run rate) from established operations African mines 6 Million tonnes Other mines 5 5.2 FY18 sales 3.34 million to
Slide 10: Abundant and Shallow Resource/Reserve
For personal use only 2 Abundant and Shallow Resource/Reserve Large-scale, c.460 million tonne, resource Resource Base Evolution base as of 31 December 2017 located in the well-established Kalahari Manganese Field Track record of resource growth and resource to reserve conversion Shallow open-
Slide 11: Flexible Onsite and Offsite Infrastructure Capacity
For personal use only 3a Flexible Onsite and Offsite Infrastructure Capacity Allowing for a Rapid Response to Evolving Market Conditions Flexible production base Flexible Infrastructure and logistics allow for efficient ramp-up of production and exports Onsite Infrastructure Crushing Equipment Pro
Slide 12: Flexible Onsite and Offsite Infrastructure Capacity (continued)
For personal use only 3b Flexible Onsite and Offsite Infrastructure Capacity Allowing for a Rapid Response to Evolving Market Conditions Tshipi negotiated a 3-year and 6-month Towns contract with Transnet (MECA II) – effective from September 2015 until March 2019 Gamagara Water Pipeline ― the allo
Slide 13: Recognised and Established Product Quality
For personal use only 4 Recognised and Established Product Quality Branded products with a well-established customer base Rigorous product testing throughout the logistics chain Range of Tshipi’s products includes: ― high grade lumpy, contractual grade 36.5% Mn content ― high grade fines, cont
Slide 14: Exceptional Operating and Financial Performance
For personal use only 5 Exceptional Operating and Financial Performance TSHIPI PERFORMANCE SINCE START-UP 100% TSHIPI (Note: Jupiter 49.9%) FY14 FY15 FY16 FY17 FY18 Million Manganese ore sales 0.94 2.11 1.54 2.27 tonnes Revenue US$m 136 265 128 270 EBITDA US$m 33 47 (4) 98 See slide 19 Net Profit /
Slide 15: Strategy to Enhance Cash Flow Through Optimisation Initiatives
For personal use only 6 Strategy to Enhance Cash Flow Through Optimisation Initiatives Targeted Savings (per Financial Year) From Current Operating Initiatives Total savings of Production related savings of Infrastructure and logistics related c.R 206m – R 279m+ c.R 121m p.a. savings of p.a. c.R 83m
Slide 16: Regional Consolidation and Co-Development Opportunities
For personal use only 7 Regional Consolidation and Co-Development Opportunities The Kalahari Manganese Field is a premium manganese basin Kalahari Manganese Field(3) where a number of manganese mines are currently operating 8 Given the close proximity of various active sites, potential 7 opportu
Slide 17: Key Asset Highlights
For personal use only Key Asset Highlights 1 One of the Largest and Lowest Cost Manganese Exporters Globally 2 Abundant and Shallow Resource Flexible Onsite and Offsite Infrastructure Capacity Allowing for a 3 Rapid Response to Evolving Market Conditions 4 Recognised and Established Product Quality
Slide 18: Financials & Outlook
For personal use only Financials & Outlook
Slide 19: Tshipi Production & Financials at a Glance
For personal use only Tshipi Production & Financials at a Glance Tshipi 100% basis1 (note JMS 49.9%) FY17 FY18 Manganese ore sales Million tonnes 2.27 3.34 The production and financial history of Tshipi Revenue ZAR m 3,777 7,334 has been impressive and it continues to EBITDA ZAR m 1,354 3,104 demons
Slide 20: Tshipi Earnings Outlook
For personal use only Tshipi Earnings Outlook Tshipi (100% basis) FY18 (End Feb 2018) FY19 Current run rate of 3.3mtpa Manganese ore sales 3.34Mt Targeted life of mine production of 3.0mtpa – 3.6mtpa FOB cash costs US$2.09 / dmtu1 2% 7% 7% No guidance provided 41% 10% Approximate (FY2017) Re
Slide 21: Jupiter's Marketing Business
For personal use only Jupiter’s Marketing Business Jupiter Mines S.A. is responsible for the marketing of the Jupiter’s portion of Manganese ore from Tshipi Jupiter considers there to be significant value attributable to the marketing business undertaken by Jupiter Mines S.A. as principal to the
Slide 22: Offer Information
For personal use only Offer Information
Slide 23: The Investment Proposition
For personal use only The Investment Proposition Steel Exposure on ASX. Exposure to crude Key Investment Statistics steel production market plus evolving battery technologies IPO Issue Price A$0.40 Track Record. Both Tshipi and Jupiter are Shares on Issue 1,948 million debt free, have repaid all
Slide 24: IPO Details
IPO Details For personal use only Company Jupiter Mines Limited Selling Shareholders include: ― Pallinghurst Steel Feed (Dutch) BV ― POSCO Australia ― EMG Jupiter L.P. Selling Shareholders ― HJM Jupiter L.P. ― FRK Jupiter L.P. ― Red Rock Resources PLC Selling shareholders to be escrowed (see Prosp
Slide 25: Appendices
For personal use only Appendices
Slide 26: Overview of the Manganese Market
For personal use only Overview of the Manganese Market Key Considerations Illustration The global manganese market is rebalancing towards equilibrium after recent Manganese ore exports by jurisdiction, 2015-2017 production cuts ― Globally, around 12 million tonnes of ore capacity cuts were announc
Slide 27: Strong Recent Price Driven by Market Rebalancing
For personal use only Strong Recent Price Driven by Market Rebalancing Manganese Ore Index 37% Mn, FOB Port Elizabeth $ per dmtu of contained metal 2 3 January 2016 December 2015 ConsMin suspends operations of Woodie Woodie US$ / dmtu UMK cuts its manganese ore production by 50% 9 manganese mine
Slide 28: Onsite Transportation Snapshot
For personal use only Onsite Transportation Snapshot Commentary Illustration Tshipi constructed an 8km rail loop connecting the Transnet Freight Rail (TFR) regional railway to the mine’s siding and rapid load terminal (RLT) The rail loop is designed to handle two 208 wagon trains and withstand t
Slide 29: Optionality Around Key Export Ports
For personal use only Optionality Around Key Export Ports Overview Distance 1 Transnet-operated port with 3 terminals Port Africa’s largest exporter of manganese, housing a manganese c.1,000km bulk handling facility which was recently upgraded to enhance Elizabeth capacity Located beside South
Slide 30: Reserves and Resources Statement
For personal use only Reserves and Resources Statement JORC Resources & Reserves (31 Dec 2017) stated adjacent are on a 100% Tshipi basis Tshipi has completed extensive drilling programs throughout JORC Reserves (31 Dec 2017) Tonnes (Mt) Grade (% Mn) FY2016, FY2017 and FY2018 in order to: Proved
Slide 31: Tshipi's Minimal Ongoing Capex Requirements
For personal use only Tshipi’s Minimal Ongoing Capex Requirements Historical capital expenditure Capital Expenditure Profile (Rm) reflects plant construction (Rm) 9.3% 9.8% 1.8% 1.2% 4.2% 1.6% 0.3% 0.0% 0.2% 300 Estimated total capex of R429m 18 0.7% 30 1.9% 46 1.2% over FY18 – FY30 comprises: ―
Slide 32: Strong BEE Partner – Great Relationship
For personal use only Strong BEE Partner – Great Relationship Main Street 774 (Pty) Ltd (Main Street), is a broad-based black economic empowerment (B-BBEE) special purpose vehicle, with its Ownership Structure major shareholder being Ntsimbintle Mining (Pty) Ltd (Ntsimbintle). Ntsimbintle, a B-B