Om Holdings Ltd. · ASX:OMH
Om — Investor Presentation (August 2004)
27 slides from Om's investor presentation, Aug 11, 2004
Slide 1: OM Holdings Limited
OM HOLDINGS LIMITED ARBN 081 028 337 #08 ~ 08, Parkway Parade 80 Marine Parade Road, 449269 Singapore Tel: 65-6346 5515 Fax: 65-6342 2242 Email address: om@ommaterials.com No. of Pages Lodged: 27 11 August 2004 Company Announcements Office Australian Stock Exchange Limited 4" Floor 20 Bridge Street
Slide 2: OM Holdings Limited August 2004
OM HOLDINGS LIMITED August 2004
Slide 3: OM Holdings Limited
OM Holdings Limited An ASX listed resources company with interests in: * mining manganese and iron ore; ¢ alloying of manganese and chrome ores; and ¢ trading manganese and chrome ores into China.
Slide 4: Key Objectives
Key Objectives Develop an integrated manganese business that will enable OMH to become a global player in the Asian Manganese Business. Make use of established marketing skills to develop new business units that feed the Asian Steel Business.
Slide 5: Issued Capital
Issued Capital m ¢ Fully paid ordinary shares 76.2 ¢ Unlisted options (@15 cents/share) 4.0 ¢ Fully diluted capital 80.2 $m ¢ Market capitalisation @$1.00 $80 * Cash $ 10 ¢ Debt Nil
Slide 6: Board and Management
Board and Management * Thang Kwek Min, Non Executive Chairman — Past GM of Intraco Limited. Long History of running a major trading company * Low Ngee Tong, Managing Director ~— Engineer with history of trading manganese and chrome ores into China. Founded OMH Limited. ¢ Trevor Tennant, Executive Di
Slide 7: Board and Management
Board and Management * Heng Siow Kwee, Executive Director — Business Administration Graduate responsible for the accounting and financial management of OMH ¢ Seetoh Kwok Weng, Executive Director — Senior executive in Port Administration and trading prior to joming OMH ¢ James Pearson, Non Executive
Slide 8: Major Shareholders
Major Shareholders ¢ Directors and management have 55% of issued shares.
Slide 9: Business Units
Business Units ¢ Four integrated and complimentary business units o Bootu Creek - Manganese mining project in the Northern Territory of Australia. 75% o Qinzhou - Ferro Alloy Plant and Ore Distribution Facility in Guanxi Province China. 100% o Territory Iron - Iron Ore Exploration and Development in
Slide 10: Bootu Creek Strategy
Bootu Creek Strategy ¢ Become a long term, stable and competitive producer of manganese ore that has a specification suitable for alloy producers in Asia. ¢ Secure feed tonnage for the Qinzhou ferro alloy works. ¢ Enhance the opportunity for setting up an alliance with another long term producer
Slide 11: Bootu Creek
Bootu Creek Regulatory Approvals August ‘04 Long life (+10 years) Low Cost (near surface, near rail) Low Phos, Low Fe medium Mn grade Low Capex Good infrastructure Close to Markets GEMCO (BHPB 60% - Anglo 40%) is 25% partner
Slide 12: Bootu Creek Resources
Bootu Creek Resources Resource Estimates Low Grade m y High Grade do omunals Total Note:18% Mn cut off In pit reserve statement is being produced. Resources in Go Go And Shekuma pits will be defined as reserves.
Slide 13: RSG Global Resource Estimate
RSG Global Resource Estimate Mn>18% _ i otu Creek Resources | Indicated _ Inferred Total Grade r ee eee ee “S102. akama tow Ga de | aaeeea7| “Fidel siesta Seat 8 . ) Go Low Grade 1952849 794037 2746886 _ vugga Mixed =i ssts—=—<‘iti‘“CS~C*C‘éB14B«15BOQTZ 2462120 urag Non Differentiated 654733654733 1
Slide 14: Bootu Creek
Bootu Creek ¢ Initial annual production rate: Lump 400,000 Fines 120,000 Mass Yield 50% Product Specification Mn 45% Si02 12% Fe 5% P .04%
Slide 15: Bootu Creek Financials
Bootu Creek Financials Assumptions: ¢ Ata Mn selling price of ¢ Ata US exchange rate of Forecasts: * Capital Costs ¢ Annual Revenue ¢« Annual EBIT * OM Holdings share (75%) # First shipment Q2 °05 US$2.20 per unit 0.70 m 12 65 18 A$13.5m per annum
Slide 16: Qinzhou Strategy
Qinzhou Strategy ¢ Integrated business capturing higher margins and credibility in the business. ¢ Ore distribution from stocks adjacent National rail network. ¢ Strategic base for establishing sinter plant with another long term producer.
Slide 17: Qinzhou Ferro Alloys
Qinzhou Ferro Alloys Si Mn Production Rate: 55,000 tpa Power Cost: US$ 0.044 per KWH * Capital Cost: | US$ 7.2 million — Self funded ¢ Commissioning: August ’04 — On time and to budget Budget selling price Si Mn: US$725/tonne Excellent transport infrastructure
Slide 18: Production Costs
Production Costs Si Mn 49% Ore 35% Power 8% Coke 7% Others MCFeMn 64% Si Mn 25% Ore 7% Others 4% Power
Slide 19: Qinzhou Financial Outcome
Qinzhou Financial Outcome ¢ Annual revenue: A$60 million ¢ Annual EBIT: A$6.5 million EBIT based on current product prices
Slide 20: Ore and Metals Trading Strategy
Ore and Metals Trading Str m ¢ Form alliances with strategic ore producers to become a globaly significant player. ¢ Qinzhou affords the opportunity of sintering and ore distribution as well as alloy production. ¢ Bootu Creek with its low phos grades makes it an attractive blending ore.
Slide 21: Ore and Metals Trading 2003
Ore and Metals Tradin 2003 OMH traded 800,000 tonnes of manganese ore into China in 2003 OMH traded 300,000 tonnes of chrome ore into China in 2003 Total turn over for 2003: A$167m NPAT of A$2.7 m for 2003
Slide 22: Ore and Metals Trading First Half 2004
Ore and Metals Trading « First Half 2004 Turnover A$102 million NPAT A$6.8 million Interim dividend of $0.01/share Comment — Market conditions were exceptional
Slide 23: Territory Iron Strategy
Territory [ron Strategy ¢ Become a low cost niche iron ore producer based in the Northern Territory. ¢ Form alliances with chosen steel producers who will be interested in smaller tonnages of ore. ¢ Take advantage of the Frances Creek Iron Province that is adjacent the rail line and is within 200km
Slide 24: Territory Iron
Territory [ron ¢ Will commence gaining regulatory approvals or mining at Frances Creek in 2004. ¢ Have commenced a feasibility study into producing magnetite from the Warrego tailings at Tennant Creek. ¢ Exploration program at Frances Creek to define known resources and explore gravity anomalies und
Slide 25: Schedules for Project
Schedules for Project 1 OM Holdings 2 Bootu Creek 3 Qinzhou 4 Territory iron 5 Trading
Slide 26: Capital Raising
Capital Raising ¢ The Bootu Project will has a maximum cash negative position of Aus$18 million. This includes working capital, capital and all overheads. * OMH needs Aus$ 13.5 million for its share of the project. ¢ OMH will seek to raise $10 million with the issuance of new shares and meet the rem
Slide 27: Summary
Summary OM holdings has proved its marketing capability. Bootu creek has a large regular, low phosphorous ore resource that will support an internationally competitive mine. Qinzhou has excellent transport logistics to provide for a competitive alloy plant, a stockpile area for an ore distribution c