Om Holdings Ltd. · ASX:OMH
Om — Investor Presentation (February 2021)
25 slides from Om's investor presentation, Feb 9, 2021
Slide 1: ASX cover letter - OMH Investor Presentation Update
OM HOLDINGS LIMITED (ARBN 081 028 337) For personal use only No. of Pages Lodged: 25 09 February 2021 ASX Market Announcements ASX Limited 4th Floor 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam OM HOLDINGS LIMITED (“OMH”) PRESENTATION Please find attached a copy of the OMH Investor Presentation U
Slide 2: OM Holdings Limited Investor Update Presentation
1 OM HOLDINGS LIMITED For personal use only Australia • China • Japan • Malaysia • Singapore • South Africa February 2021 • Investor Update Presentation • ASX:OMH
Slide 3: Disclaimer
2 DISCLAIMER For personal use only This presentation has been prepared and issued by OM Holdings Limited ARBN 081 028 337 (“OMH”). This presentation contains summary information about OMH. The information in this presentation does not purport to be complete or to provide all information that an inve
Slide 4: A Manganese Ore & Ferroalloy Company
3 A MANGANESE ORE & For personal use only FERROALLOY COMPANY Vertically integrated manganese ore and ferroalloy company, involved in mining, smelting, and trading Powered by sustainable hydro-power, pursuing growth and natural diversification into new commodities like silicon metal 23 years on the A
Slide 5: Company Snapshot
4 COMPANY SNAPSHOT Balancing debt reduction with sustainable dividends, refinancing a priority For personal use only Issued Shares 738.6 million shares $2.00 Share Price Performance Share Share Price A$ 0.84 Metrics $1.50 (as at 1st 52 weeks Low / High A$ 0.25 / A$ 0.87 $1.00 Feb 2021) Market Capita
Slide 6: Our Operations
5 OUR OPERATIONS For personal use only Exploration & Mining Smelting & Sintering Marketing & Trading Bootu Creek - Australia Qinzhou - China (100%) Singapore/China (100%) (100%) Mn alloy: 80-95kpta Global sales and procurement Manganese ore: 0.8 Mtpa Sinter ore: 300ktpa Manganese ore, Ferrosilicon,
Slide 7: Our Products
6 OUR PRODUCTS Critical alloying element to steel - a product essential to basic industries and modern infrastructure For personal use only Manganese Ore Manganese Alloys Silicon Alloys Manganese is the 4th most consumed Main alloying element – Manganese Main alloying element – Silicon metal behind
Slide 8: Smelting: Raw Materials to Critical Additives
7 SMELTING: RAW MATERIALS TO CRITICAL ADDITIVES Manganese Ore - Mn High Purity Quartz - Si For personal use only Products Ferro-Manganese Silico-Manganese Ferrosilicon Metallic Silicon Under Development Customers Steel Mills Foundries Chemicals / Solar / Electronics Some of our Customers: China Stee
Slide 9: The Proverbial Value Chain
8 THE PROVERBIAL VALUE CHAIN OMH is a low cost integrated miner + smelter, not a pure play Mn mining company For personal use only Notional size of OMH value flows in an average year Diagram Scale Bootu Creek 100 million AUD Total Mn Mn Ore Sales Mn Ore Mining Ore Book 200 million AUD Tshipi / Purch
Slide 10: Our Materials
For personal use only 9 OUR MATERIALS MINING - SMELTING - TRADING
Slide 11: Bootu Creek, Northern Territory, Australia
10 BOOTU CREEK, NORTHERN TERRITORY, AUSTRALIA An owner operated mine, wholly owned by the Group since 2007 For personal use only OM Manganese Ltd (“OMM”) - 100% Owned Mine: Bootu Creek Location: Northern Territory, Australia Product: Siliceous Manganese Ore Capacity: Ore production 0.8 million mt pe
Slide 12: Greenfield In-House Developed Smelting Plants
11 GREENFIELD IN-HOUSE DEVELOPED SMELTING PLANTS For personal use only OM Qinzhou – 100% Owned Location: Guangxi, China Product: Manganese alloys (SiMn, HCFeMn), Sinter ore Furnaces: 1 x 16.5 and 1 x 25.5 MVA furnaces Capacity: 80-95ktpa of manganese alloys, 300ktpa of Sinter ore OM Sarawak – 75% Ow
Slide 13: Samalaju Industrial Park: Asia's New Smelting Hub
12 SAMALAJU INDUSTRIAL PARK: ASIA’S NEW SMELTING HUB For personal use only Sarawak, Malaysia ◦ Culturally diverse state, unique demographics ◦ Low population density ◦ Stable operating environment Sarawak Corridor of Renewable Energy (SCORE) ◦ Samalaju Industrial Park - supported by 3.3GW* of hydrop
Slide 14: Sarawak's Hydro-Electric Plants
13 SARAWAK’S HYDRO-ELECTRIC PLANTS Bakun Dam, image courtesy of Sarawak Energy Bhd. For personal use only ~2.2 million tonnes of CO2 per annum Emissions avoided by smelting with hydropower* *Notional power capacity x Median lifecycle emission differential between coal and hydropower. CO2 emissions f
Slide 15: Smelting - At the Heart of What We Do
14 SMELTING – AT THE HEART OF WHAT WE DO FeSi Production Cost Comparison For personal use only Electricity Reductant Ore Other raw material Labour & other Export tax Delivery to Japan • Sustainable producer, first-quartile of cost curve • 350MW of competitively priced, reliable power, locked in for
Slide 16: Recorded A$53.1M EBITDA in 1H 2020
15 RECORDED A$53.1M EBITDA IN 1H 2020 Revenue and GP Margin 1H 2020 Revenue and EBITDA declined due to: • For personal use only Slower global economic activity due to COVID-19 pandemic and subsequent lockdowns $2,000 23.4% 25% 21.2% 19.9% • Significantly lower demand for crude steel led to Revenue A
Slide 17: Operational Performance and FY21 Guidance
16 OPERATIONAL PERFORMANCE AND FY21 GUIDANCE Mn Ore Production Volume (kmt) Mining Segment (Mn Ore) For personal use only 200 • FY2020 production volume normalized after mining halt in FY2019 Base 1,000 570 ~29% 738 Case • Lump product grade strategy focused to target 26% Mn in line with increasing
Slide 18: Ferrosilicon Market Review
17 FERROSILICON MARKET REVIEW Weak prices expected to impact 2H 2020 earnings, price recovery underway with economic recovery For personal use only 1 2 3 Feb 2020 Q2 - Q3 2020 Q4 2020 FeSi price surged to Bearish sentiment intensifies, Steel production recovered faster than ~$1200 due to supply two
Slide 19: Manganese Ore and Alloy Market Review
18 MANGANESE ORE AND ALLOY MARKET REVIEW Manganese smelting generated relatively stable earnings in FY2020 For personal use only 1 2 Q2 2020 Q3 – Q4 2020 Overall 2020 South Africa and India lockdowns cause Chinese demand remains robust, SiMn prices relatively concerns over Mn ore and SiMn supply how
Slide 20: Financial Highlights
19 FINANCIAL HIGHLIGHTS A$’million 2015 2016 2017 2018 2019 1H 2020 For personal use only Revenue 338.5 414.2 988.2 1,510.4 1,026.5 386.5 Gross Profit 6.1 60.1 209.6 353.3 152.5 53.3 GP Margin (%) 1.8 14.5 21.2 23.4 14.9 13.8 Adjusted EBITDA* (37.6) 35.0 186.1 339.7 141.2 53.1 Profit Before Tax (131
Slide 21: Growth of Steel in Southeast Asia (SEA)
20 GROWTH OF STEEL IN SOUTHEAST ASIA (SEA) Regional steel demand remains positive in the long run For personal use only South East Asia Addition of steel capacity in SEA • Surge of foreign investments in SEA steel mills since steel capacities: 89.4m MT 2 2015 (~25 million MT) 1 • Additional capacity
Slide 22: Normalize Operations Impacted by COVID to Pre-Pandemic Levels
21 NORMALIZE OPERATIONS IMPACTED BY COVID TO PRE-PANDEMIC LEVELS For personal use only Envisage full operation of smelting segment by end 2021 through: • Conversion of 2 FeSi furnaces to produce SiMn in progress, commissioning originally planned for Q2 2021 • Commenced hot commissioning and performa
Slide 23: Future Organic Growth
22 FUTURE ORGANIC GROWTH Key fundamentals remain unchanged, well positioned for industry recovery For personal use only BURSA Bryah 14 FeSi MALAYSIA Resources Si Silicon Element 25 SiMetal Dual Listing on Raw Material Higher Value Add Expanding Capacity Bursa Malaysia Development (~Capex A$30 mil) (
Slide 24: A Manganese Ore & Ferroalloy Company
23 A MANGANESE ORE & For personal use only FERROALLOY COMPANY Vertically Integrated manganese ore and ferroalloy company, involved in mining, smelting, and trading Unique exposure to the niche Manganese alloy and Ferrosilicon space (estimated US$27.5bn market in 2019), essential to steel and the mod
Slide 25: OM Holdings Limited
For personal use only 24 OM HOLDINGS LIMITED AUSTRALIA • CHINA • JAPAN • MALAYSIA • SINGAPORE • SOUTH AFRICA