Om Holdings Ltd. · ASX:OMH
Om — Euroz Securities 2011 Rottnest Island Conference
33 slides from Om's conference presentation, Mar 8, 2011
Slide 1: Investor Presentation lodgement letter to ASX
OM O HOL LDINGS LIMITED For personal use only (AR BN 081 028 337) NO. OF PAGES LODGED: 33 8 Ma arch 2011 Com mpany Annou uncements Office O ASX X Limited 4th F Floor 20 BBridge Streett SYD DNEY NSW 20002 Dea ar Sir/Madam m INVE ESENTATION ESTOR PRE Plea ase find attacched a copyy of a presenntation
Slide 2: Background Profile of OM Holdings Limited
BACKGROUND PROFILE OF OM HOLDINGS LIMITED OMH listed on the ASX in March 1998 and has its foundations in metals trading – For personal use only incorporating the sourcing and distribution of manganese ore products and subsequently in processing ores into ferro-manganese intermediate products. The OM
Slide 3: Investor Presentation – March 2011
For personal use only Investor Presentation – March 2011 1
Slide 4: OMH Investment Highlights
OMH Investment Highlights For personal use only 1 A globally integrated pure play manganese company listed on the ASX 2 Long life, high grade Mineral Resources with a pipeline of exploration projects 3 Vertically integrated business model across the entire value chain - from mining to marketing 4 Hi
Slide 5: Topics for today
For personal use only Topics for today 1 The Market 2 OMH Strategy 3 Review of 2010 and outlook for 2011 3
Slide 6: The Market
For personal use only Topics for today 1 The Market 4
Slide 7: Attractive Market and Company Fundamentals
Attractive Market and Company Fundamentals For personal use only Demand Supply Strong current and future steel production and demand Short/medium term high grade supply constraints Record Chinese steel production + strong recovery in High grade manganese production running at full capacity d
Slide 8: Crude Steel Production
Crude Steel Production Crude steel Production (million mt) For personal use only 1 600 1 400 ‘000 tonnes of crude steel production 1 200 1 000 787 857 827 656 800 828 791 600 400 574 627 200 419 489 500 353 0 2005 2006 2007 2008 2009 2010 China ROW 6
Slide 9: Manganese Alloy Production
Manganese Alloy Production For personal use only Mn alloy Production (million mt) & % Change y-o-y Mn alloy Production (million mt) 15 30% 10 8,7 13 25% 25% 9 19% 20% 8 7,4 11 15% 7 9 10% 10% 6 7 5% 5 4,4 2009 1% 0% 5 -1% 4 3,3 2010 -5% 3 3 -10% 2 1,5 1 -15% 1 -18% 1 -1 -20% 2004 2005 2006 2007 2008
Slide 10: Manganese Ore Production
Manganese Ore Production Mn Ore Production (million mt) For personal use only 50 47 45,5 45 40 35,5 35 30 2008 25 2009 20 14,4 14,8 2010 15 11,1 10 5 0 Mn Ore (Wet) Mn Ore (content) 8
Slide 11: Ore Inventory versus Ore Price
Ore Inventory versus Ore Price For personal use only $9,00 100% 90% US$/dmtu CIF China benchmark price $8,00 ‘inventory as % of total demand 80% $7,00 70% $6,00 60% $5,00 50% $4,00 40% $3,00 30% Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 CRU Spot Ore China (1st month next qtr) Inv as % of Deman
Slide 12: Ore Inventory versus Ore Price
Ore Inventory versus Ore Price 8 000 $ 9,00 For personal use only US$/dmtu Mn ore price CIF China benchmark 7 000 $ 8,00 6 000 $ 7,00 5 000 4 000 $ 6,00 ‘000 tonnes 3 000 $ 5,00 2 000 $ 4,00 1 000 0 $ 3,00 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 IMnI Mbrs Ore Inv (000 mt) Ore Port Inv
Slide 13: OMH Strategy
For personal use only Topics for today 2 OMH Strategy 11
Slide 14: Strategic Objectives and Actions
Strategic Objectives and Actions For personal use only Mission Statement: To become the world’s leading integrated manganese producer Strategic Actions: Maximize earnings Extract maximum value from mining, smelting and marketing operations Increase resources Expand our high grade ore resources organ
Slide 15: Vision and Strategy
Vision and Strategy For personal use only Short term 1-3 years: Long term 5+ years: Medium term 3-5 years: Top 3 manganese producer Strategic supplier of steel making Leading manganese producer raw materials Operating Assets OMM 1Mtpa + OMQ 60kt Mn alloys & 300ktpa Sinter + OMS marketing, trading
Slide 16: OMH Operating Assets
OMH Operating Assets For personal use only BOOTU CREEK MINE QINZHOU SMELTER SINGAPORE MARKETING High grade deposit, ~ 15 Capacity of 60kt of HCFeMn China market specialists – year mine life and 300kt of sinter experience and expertise Exploration potential on Strategic location - proximity Longstand
Slide 17: Strategic Ore Investment in South Africa
Strategic Ore Investment in South Africa For personal use only OMH investment in Ntsimbintle Mining and the world class Tshipi Manganese Project 26% Jupiter Mines Ltd. OMH Safika Resources Other BEE stakeholders Ntsimbintle 49.9% Tshipi é Ntle 50.1% Tshipi Manganese Mine 15
Slide 18: Strategic Ore Investment in South Africa
Strategic Ore Investment in South Africa For personal use only In South Africa’s Kalahari basin, the world’s largest high grade manganese ore resource High grade resources of 163 million tonnes at 37.1% Mn, 60+ year mine life at 2.4mtpa production Total CAPEX of US$200 million on 100% basis. Project
Slide 19: Strategic Ore Investment in South Africa
Strategic Ore Investment in South Africa For personal use only 17
Slide 20: Strategic Alloy Investment in Malaysia
Strategic Alloy Investment in Malaysia For personal use only OMH feasibility study for a Malaysian manganese sinter, alloy smelter and port complex Manganese ore Power Smelting + Sintering + Bootu Creek (Australia) Power is the 2nd major cost in Malaysia’s opportunity to become manganese alloy smelt
Slide 21: Strategic Alloy Investment in Malaysia
Strategic Alloy Investment in Malaysia For personal use only Rapidly changing market dynamics and production economics in traditional alloy exporting countries -especially China Strategic location to supply the Asian steel industry Competitively priced and reliable power supply Zero import d
Slide 22: Delivering on the strategy – the timetable
Delivering on the strategy – the timetable For personal use only 2009 2010 2011 2012 Bootu operating strategy optimised operating strategy – 42/38/35% grades 250ktpa SPP plant 1Mtpa ore production Organic Sinter Plant Phase 1 300kt sinter capacity +300ktpa sinter capacity feasibility 15 year m
Slide 23: Review of 2010 and outlook for 2011
For personal use only Topics for today 3 Review of 2010 and outlook for 2011 21
Slide 24: Connecting the dots – the OMH 'flow'
Connecting the dots – the OMH ‘flow’ For personal use only Agency Spot Alloy Alloy sales trading production sales OMQ own Third Party Trading consumption OMQ Alloy production Sinter Sinter and sales + ore production sales distribution OMQT South China China ore sales Stockpile ore sales OMS OMM Mark
Slide 25: OMH – FY2010 Highlights
OMH – FY2010 Highlights For personal use only OMM record FY 2010 production of 831kt ore Operations OMQ solid FY 2010 production of 37kt of manganese alloys and 104kt of manganese sinter OMS total shipments of 1million tonnes - 777kt wet tonnes of OMM manganese ore and 233kt wet tonnes of third part
Slide 26: Operational Production Performance
Operational Production Performance For personal use only Manganese Ore Output Volume 1,000 831.4 800 672.6 648.1 600 516.4 1000 kt 400 243.4 200 [-] 0 2005 2006 2007 2008 2009 2010 2011F Manganese Alloy Output Volume 60 45 39 38 37 40 33 26 60 kt 20 0 2005 2006 2007 2008 2009 2010 2011F 24
Slide 27: FY 2010 – Summary of Key Financials
FY 2010 – Summary of Key Financials For personal use only A$ million 2010 2009 Total Sales 307.5 280.3 EBITDA 68.3 35.3 NPAT 47.2 26.9 Operating Cash Flow 20.7 23.7 Dividends per Share 2.75 cents 3 cents Cash at Year End 42.1 79.7 25
Slide 28: FY2010 Divisional Contribution
FY2010 Divisional Contribution For personal use only Year Ended 31 December 2010 Year Ended 31 December 2009 A$ million Revenue (1) Contribution Δ2009 - 2010 Revenue (1) Contribution Mining and Ore Processing 147.9 12.1 30% 154.1 9.3 Ferroalloy Manufacturing 55.9 7.5 32% 51.7 5.7 Marketing, Logistic
Slide 29: OMH – FY2011 Outlook
OMH – FY2011 Outlook For personal use only OMM – 1 million tonnes of ore production Operations OMQ – 60,000 tonnes of alloy and full capacity sinter production OMS – equity and third party marketing, trading and distribution Tshipi site establishment, mine, plant, load out and siding construction Gr
Slide 30: Appendix
For personal use only Appendix 28
Slide 31: Bootu Mineral Resources - Dec 2010
Bootu Mineral Resources - 31 Dec 2010 For personal use only At 15% Mn Cut-Off Measured Indicated Inferred Combined (1) Deposit: Mt % Mn Mt % Mn Mt % Mn Mt % Mn Chugga North 0.8 22.7 3.4 22.4 0.0 22.8 4.2 22.5 Chugga South 0.4 23.7 1.6 22.4 0.0 0.0 2.0 22.7 Gogo 0.3 25.4 1.3 26.0 0.2 26.8 1.7 26.0 Ma
Slide 32: Bootu Ore Reserve Table - Dec 2010
Bootu Ore Reserve Table - 31 Dec 2010 At 15% Mn Cut-Off Proved Probable Combined (1) For personal use only Deposit: Mt % Mn Mt % Mn Mt % Mn Chugga North 0.6 20.7 1.6 20.6 2.2 20.6 Chugga South 0.3 21.6 0.8 20.7 1.1 20.9 Gogo 0.3 22.6 1.0 23.2 1.3 23.1 Masai 0.0 0.0 4.9 20.7 4.9 20.7 Shekuma 0.9 22.9
Slide 33: Tshipi Resource Table
Tshipi Resource Table JORC and SAMREC (2007) Compliant For personal use only Deposit Indicated Inferred Total (Indicated and Inferred) Tonnes Tonnes Tonnes (Million) % Mn (Million) % Mn (Million) % Mn Zone M 22.69 37.95 39.64 37.87 62.33 37.90 Zone C 22.95 36.68 40.61 37.01 63.56 36.89 Zone N 12.83
OM Holdings — Euroz Securities 2011 Rottnest Island Conference on 6ix