Om Holdings Ltd. · ASX:OMH
Om — Euroz Securities Rottnest Island Conference 2006
33 slides from Om's conference presentation, Mar 8, 2006
Slide 1: OM Holdings Limited ASX announcement cover letter
OM HOLDINGS LIMITED (ARBN 081 028 337) No. of Pages Lodged: 33 8 March 2006 Company Announcements Office Australian Stock Exchange Limited 4" Floor 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam INVESTOR PRESENTATION Please find attached a copy of a presentation to be delivered by Mr Paul Chapman o
Slide 2: Background Profile of OM Holdings Limited
BACKGROUND PROFILE OF OM HOLDINGS LIMITED OMH was listed on the ASX in March 1998 and has grown into a fully integrated miner, processor and trader of manganese product with operations in Australia, China and Singapore. Through its wholly owned subsidiary, OM Manganese Ltd (“OMM’), OMH controls 100%
Slide 3: OM Holdings Limited - An Integrated Manganese Producer
OM Holdings Limited An Integrated Manganese Producer ASX Code: OMH Website: www.omholdingsltd.com Paul Chapman Euroz Securities Rottnest Island Conference 2006 7-9 March 2006
Slide 4: Disclaimer
Disclaimer expectations reflected in these statements a _ reasonable but they may be affected by a varie variables and changes in underlying assumption could cause actual results or trends to differ mat ‘including but not limited to: price fluctuations, ac -demand, currency fluctuations, drilling an
Slide 5: Agenda
> Strategy _ > Capital Structure >} Financial Performance > Markets ° ‘Integrated Manganese Business _¢ Summary
Slide 6: Strategy
Strategy = e Build an integrated manganese bu e Add value at Bootu Creek Manganese _ > Production . > Exploration : . . — =—ti“‘(<‘(‘é(a‘<é(é(l > Expansion option @ Service the growing Chinese steel ma ~ ® Qinzhou expansion @ Leverage off ‘Marketing t networks
Slide 7: Capital Structure
Capital Structure Issued Capital LOSS 7 . ted ordinary — 136.3m oe Unlisted options — 5.6m , : | — 141.9m Major Shareholders e Institutions 30% e Strategic partners. 5% ~« Board/management 25% Top 20 shareholders Market Capitalisation
Slide 8: Financial Performance
ial Performance inanc F Net Profit After Tax roo Wo an ai xi BiRYS 18d Swed $ ae. eS ee AO 8 OF A & oe. SUOITIN $Y o oO Os a aS as | Year i Dec Half Year z June Half
Slide 9: Financial Performance
Financial Performance cents)- , eSales $215m (2004: $219m) — Profit after tax $5.0m (2004: $11.1m Final dividend 0.25 cents (fu Division 2005 (A$M) 2004 (ASM Metal Trading 6.4 9 Oinzhou (0.6) : Sundry 0.6 BCM (0.1) Equity in TFE 2.1 | EX/IFRS/Other (3.4) |. NPAT 5.0
Slide 10: Financial Performance
Financial Performance drivers _& Soft manganese/alloy prices - Dec halt _ » Stock build up in - 2004/early 2005 7 ine Significant items: IFRS. ($1. 6m), inventor . ($1. 3m), TFE net gain $2.1m “@ ‘Outlook | - > Destocking in June half, then firming. > Expected. medium term range US$
Slide 11: Chinese Steel & Manganese
Chinese Steel & Manganese _...Manganese imports into China expected to increase | Forecast Millions Tonnes + + ‘ + . + t + + . + 1992 4993 1994 1995 1996 1997 1998 19992000 2001 2062 2003 2004 2005 2006 2007 260 ; : Year —=— Steel Production —@—Mn Ore imports
Slide 12: Integrated Manganese Business
8 Integrated Manganese Busine: _ > Bootu Creek Manganese Mine — _ » Qinzhou Ferro-Alloy Smelter \ >» Singapore Marketing & Logistics 'e Summary
Slide 13: Value Chain
Value Chain ..Adding value from mi @ Chinese Ferro-Alloy Third Party Mines Smelters =, 400kt Mn 350kt Mn 6 ee aT PM ey ay Singapore Marketing & Logistics 550kt Mn Qinzhou Ferro- Alloy Smelter Bootu Creek Manganese Mine
Slide 14: Bootu Creek Manganese Mine
Bootu Creek Manganese Mine 4 8 lerinant Creek © Project Start-up ee _ £ Finance AUSTRALIA Expansion Option :
Slide 15: Bootu Creek Manganese Mine
Bootu Creek Manganese Mine Fly through presentation of site OM HOLDINGS LIMITED BOOTU CREEK MAGANESE MINE
Slide 16: Project Start-up
Project Start-up st production - March/April 2006 Abnormal rainfall in January ‘Shekuma mining progressing Drum plant pre-commissioned / Critical structural steel on site ~ > Temporary crushing . e Critical path items > Feed circuit construction -»», Darwin Port Corporation commissioning e Construct
Slide 17: Mine site photos
7 OU ee i nie
Slide 18: Process Plant
Process Plant
Slide 19: Infill Drilling
Infill Drilling ii I Vy
Slide 20: Project Finance - CBA
Project Finance - CBA Development Facility Outsta @ 14 12 210 2.8 = 6 24 ‘Chirency hedging _ 0 » Minimum 12-months cover of _ net US$ exposure : > Options @ 0.7450 ~13% es 6 Months Ended - exposure (US$8m) oes > Forwards @ 0.7295 ~ 17% exposure (US$10m) Bec-O5 Jun-06
Slide 21: BCM - Cash Cost/Margin
BCM - Cash Cost/Margin
Slide 22: BCM - EBITDA (Steady State)
BCM - EBITDA (Steady State) e EBITDA . . > US$2.50 Mn unit t @ 0.7500 $22m pa _ >» US$2.75 Mn unit @ 0.7500. . $30m pa e Manganese Price > +/- US$0.10 | $3.4m pa e Exchange Rate — t/-1cent | $1.1m pa e Diesel Fuel > +/ - 10 cents
Slide 23: Expansion Option
Expansion Option e 1 million tonne pa expansion ? Expanded resource base : > Market conditions ee + Action required ( : >» lidigger/2 trucks |» Parallel drum plant “> Additional accommodation >» Road, rail & port — expand capacit e ° Incremental cost ~A$10 million > Requires feasibility study
Slide 24: Qinzhou Ferro-Alloy Smelter
Qinzhou Ferro-Alloy Smelter ~ @ Operations _ advantage — ~ eGrowth
Slide 25: Operations
Operations > Hydro season April to October - > Coal fired power available early 2 e Production > Monitor alloy market/margins » & 2006 target 50kt (2005: 25ki
Slide 26: Competitive Advantage
Competitive Advantage ® Significant advantage over rival in North & South West os TAPAN ou | ROREA @ Belling China . : > Power cost & availability — ee » Freight differentials Ferro Alloy @ Hong Kong To To To From South | Japan -| Shanghai Korea] USS/t US$ /t-- US$/t North China South. Wes China Qin
Slide 27: Smelting & alloy marketing expertise
> ‘Smelting & alloy marketing expertise e Joint Venture Sy Terms formalised mid 2006 > Shanghai Shenjia funds Qinzhou expansio earns ~30% > 140 ktpa capacity mid 2007 | ut to increase to ~150 k
Slide 28: New Value Chain
New Value Chain ..Adding value from min Third Party Mines eee . ie Chinese Ferro-Alloy| ; Smelters 250kt Mn |” Singapore Marketing & Logistics # 150kt Mn - S80kt Min Qinzhou Ferro- Bootu Creek Alloy Smelter Manganese Mine :
Slide 29: Singapore Marketing/Logistics
Singapore Marketing/Logistics @ beijing e Objectives CHINA @ Hong Korg
Slide 30: Objectives
Objectives feate an integrated manganese busin 550-600k Mn ore production Supply Qinzhou & partners | |» Premium for BCM product ® _ Supply ~ 20% of China’ s Mn ore > o Capture margins \» Logistics, marketing, distribution > Favourable tax regime ~-e Market other products. “Iron ore (via Territory I
Slide 31: Agenda
Agenda <— Background e Summary
Slide 32: Summary
> March/April 2006. ° » Growth opportunities ~ & Quinzhou expansion » Exploration program (April: > Expansion option |
Slide 33: OM Holdings Limited
OM Holdings Limited An Integrated Manganese Producer ASX Code: OMH Website: www.omholdingsltd.com Paul Chapman Euroz Securities Rottnest Island Conference 2006 7-9 March 2006
OM Holdings — Euroz Securities Rottnest Island Conference 2006 on 6ix