Slide 1: Investor Presentation September 2018
For personal use only Investor Presentation September 2018
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: Capital Structure Overview
Introduction For personal use only Capital Structure Overview Shares on Issue # 1,959 million ▪ Commenced trading on ASX on 18 April 2018 ▪ Jupiter Mines Limited (“Jupiter”) owns a 49.9% beneficial interest in the world Options on Issue # Nil class Tshipi Borwa Manganese Mine (“Tshipi”) located in t
Slide 4: Board & Management
Board & Management For personal use only Jupiter Team Tshipi Team Brian Gilbertson Non Executive Chairman ◼ In 1997, Gencor Limited restructured its non-precious metals interests as Billiton plc. With Mr Gilbertson as Executive Chairman, Billiton plc raised US$1.5 billion in an initial public offeri
Slide 5: Manganese Ore Index price chart
For personal use only Manganese Ore Index 37% Mn, FOB Port Elizabeth $ per dmtu of contained metal Manganese prices influenced by: ◼ Market rebalancing ◼ Chinese dynamics ◼ Limited life of some major mines 9.00 US$ / dmtu FY18 average manganese price = US$4.69 / dmtu Current spot manganese price (37
Slide 6: Exceptional Operating and Financial Performance at Tshipi
For personal use only Exceptional Operating and Financial Performance at Tshipi 100% TSHIPI (Note: Jupiter 49.9%) FY17 FY18 FY19 (to July 2018) 1 LTM August 2018 ² Million Manganese ore sales 2.27 3.34 1.60 3.70 tonnes Revenue USDm 3 265 561 374 775 EBITDA USDm 3 95 237 211 401 Net Profit / (Loss) A
Slide 7: History of Delivering Cash Returns to Jupiter Shareholders
History of Delivering Cash Returns to Jupiter Shareholders For personal use only ◼ Management delivered a full operating Tshipi mine at a cost of A$100m to Jupiter shareholders ◼ Tshipi is operating on a debt free basis with strong cash generation capabilities ◼ Inaugural distribution to Jupiter sha
Slide 8: Tshipi
For personal use only Tshipi
Slide 9: Safety – Tshipi's Top Priority
Safety – Tshipi’s Top Priority For personal use only ◼ Proud track record of safety Lost Time Injuries ◼ No fatalities since Tshipi’s inception 5 # of occurences ◼ One section 54 stoppage since inception that was lifted after one day 4 ― proactive engagement with the Department of Mineral Resources
Slide 10: Tshipi at a Glance
Tshipi at a Glance For personal use only Location Key Asset Highlights 1 One of the Largest and Lowest Cost Manganese Exporters Globally 2 Abundant and Shallow Resource 3 Flexible Onsite and Offsite Infrastructure Capacity Allowing for a Rapid Response to Evolving Market Conditions 4 Recognised and
Slide 11: Jupiter's Marketing Business
For personal use only Jupiter’s Marketing Business ◼ Jupiter Mines S.A. is responsible for the marketing of the Jupiter portion of Tshipi production ◼ Jupiter earns a 3% marketing fee commission calculated off free-on-board revenue and is considered a strong and stable revenue stream by Jupiter - Fo
Slide 12: 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 Production by Mine (2018 CRU estimate) c.3.3 million tonnes per year from established operations (Million tonnes) ◼ Open-pit, shallow mine with an integrated processing plant 6.00 allo
Slide 13: Abundant and Shallow Resource/Reserve
For personal use only 2 Abundant and Shallow Resource/Reserve Resource Base Evolution ◼ Large-scale, c.460 million tonne, resource 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 14: Flexible Onsite and Offsite Infrastructure Capacity (1)
For personal use only 3a Flexible Onsite and Offsite Infrastructure Capacity Allowing for a Rapid Response to Evolving Market Conditions ◼ Flexible production base and Flexible Infrastructure logistics allow for efficient ramp-up of production and exports depending on market Crushing Equipment Produ
Slide 15: Flexible Onsite and Offsite Infrastructure Capacity (2)
For personal use only 3b Flexible Onsite and Offsite Infrastructure Capacity Allowing for a Rapid Response to Evolving Market Conditions ▪ Tshipi has negotiated a 5-year rail contract Towns with Transnet Gamagara Water Pipeline ― the allocated tonnage is 2.1 mtpa effective February 2018 with expiry
Slide 16: 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, (2015) contractual grade 36.5% Mn content ― high grade fine
Slide 17: Strategy to Enhance Cash Flow Through Optimisation Initiatives
For personal use only 5 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 210m – R 283m+ c.R 121m p.a. savings of p.a. c.R 83m
Slide 18: Regional Consolidation and Co-Development Opportunities
For personal use only 6 Regional Consolidation and Co-Development Opportunities Kalahari Manganese Field(3) ◼ The Kalahari Manganese Field is a premium manganese basin where a number of manganese mines are currently operating 8 ◼ Given the close proximity of various active sites, potential opportuni
Slide 19: The Investment Proposition
The Investment Proposition For personal use only Key Investment Statistics & Performance Ratios ¹ ◼ Crude steel and evolving battery material exposure on the Metric Jupiter ASX Current share price A$ $0.345 ◼ Long life, low cost, debt free asset and company Options on Issue # Nil Shares on Issue # 1
Slide 20: Appendices
For personal use only Appendices
Slide 21: 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 Global manganese production and consumption ‘000 t contained MN production cuts 19,000 ― Globally, around 12 million tonnes of ore capa
Slide 22: 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) Rail Loop ◼ The rail loop is designed to handle two 208 wagon trains and w
Slide 23: 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 24: 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 JORC Reserves (31 Dec 2017) Tonnes (Mt) Grade (% Mn) Proved 48 36.3 ◼ Tshipi has completed an extensive drilling program throughout FY 2016 Probable 39 36.4 (an
Slide 25: Tshipi's Minimal Ongoing Capex Requirements
For personal use only Tshipi’s Minimal Ongoing Capex Requirements Capital Expenditure Profile (Rm) ◼ Historical capital expenditure (Rm) reflects plant construction 300 9.3% 9.8% 1.8% 0.7% ◼ Estimated total capex of R274m over FY19 – FY30 comprises: 252 ― R145m sustaining 250 ― R129m: expansionary ◼
Slide 26: 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 Ownership Structure vehicle, with its major shareholder being Ntsimbintle Mining (Pty) Ltd (Ntsimbintle). Ntsimbintle Mining (