Mineral Resources Limited · ASX:MIN
Mineral Resources — Shareholder Meeting (November 2006)
26 slides from Mineral Resources's shareholder meeting presentation, Nov 9, 2006
Slide 1: Presentation to Annual General Meeting
, ee) Mineral Resources Limited Presentation to Annual General Meeting On November 9, 2006 Peter Wade, Managing Director
Slide 2: Overview
Overview 2. Results Analysis 3. Overview of Year Ending 2006 4. Outlook for 2007
Slide 3: An integrated supplier of goods and services to the Resource sector
~ a eS, oe Mineral Resources Limited ACN 118 549 910 “An integrated supplier of goods and services to the Resource sector”
Slide 4: Report to Annual General Meeting
Report to Annual General Meeting Mineral Resources purchased 100% of the shares in each of Crushing Services International Pty Ltd, PIHA Pty Ltd and Process Minerals International Pty Ltd on 26 June 2006. The results for FY2006 for Mineral Resources reflect only four (4) days trading and do not corr
Slide 5: Services Provision
eS, oe Services Provision Mineral Resources (CSI) specialises in the design, construction, commissioning, maintenance and operation of contract crushing and screening plants that deliver tailored solutions to clients. Mineral Resources (PIHA) provides specialist multi disciplinary pipeline, pipelini
Slide 6: Client Base
, eS, ose ® Client Base Mineral Resources (ASX: MIN) is an integrated supplier of goods and services to the resource sector within Australia and overseas. Mineral Resources is providing services and contracting outcomes to a wide range of blue chip mining, resource and utility organisations includin
Slide 7: Local and Global Services Provision
~ a eS, ese 7 Local and Global Services Provision HONG KONG VIETNAM “<———__ PHILIPPINES e é j INDONESIA PIHA ’ @ MYANMAR On csi NEW @ om CALEDONIA AUSTRALIA
Slide 8: FY 2006 (Part 1)
eS, ese 8 4 aia i i A aif FY 2006 (Part 1) World Best Practice HSE outcomes LTIFR (12 Month Moving Average) 4 MTIFR (12 Month Moving Average) 15 Design, construction, commissioning and bringing into operation of 5 mtpa iron ore crushing, screening and stockpiling plant completed within ten (10) mont
Slide 9: FY 2006 (Part 2)
FY 2006 (Part 2) * Consolidation of management and support services for the three (3) subsidiary companies. * Procurement of chromite and Fe sands mineral rights in the Philippines. * Significant rollover of operating crushing contracts for further periods of 2-3 years.
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Slide 13: Mobile Crushing and Screening
Mobile Crushing and Screening Photograph 4
Slide 14: Overview
eS) Overview 1. Introduction — Commentary 2. Results Analysis 3. Overview of Year Ending 2006 4. Outlook for 2007
Slide 15: Financial Highlights
nS eS, me e Financial Highlights Actual Aggregated Pro Forma Forecast % Change FY2006 Result FY2006 Result Per Prospectus Lodged 26 June 2006 Revenue from ordinary 105,922,981 97,585,240 8.5% operations Nett profit after tax 10,327,048 8,552,489 21% Earnings per share 9.8 cents 8.1 cents 21% Fully f
Slide 16: Operating Revenue
_ OperatingRevenue Increased Operating Revenue results from: ¢ Increased revenue contribution from Operating Revenue all the subsidiary businesses *« Extended contract durations and improved tonnage throughput ¢ Additional contracts awarded ahead of expectations Prospectus , FY 2006 * Strong resourc
Slide 17: NOPAT: Actual v Prospectus
FY 2006 Page 17 Actual V Prospectus NOPAT Prospectus FY 2006 Improved NOPAT results from: ° Increased tonnage throughput creates improved profitability Improved margins across contracts Improved tax outcomes Stringent cost control outcomes
Slide 18: Financial Margin Analysis
, a. kQ Financial Margin Analysis FY 2006 Earnings per Share 9.8 cents NPAT Margin 9.75% Return on Equity 23.61% Return on Assets 11.50% Interest Cover 16.8 times Page 18
Slide 19: Overview
, CDQ Overview 1. Introduction — Commentary 2. Results Analysis 4. Outlook for 2007
Slide 20: All subsidiary businesses reported above forecast results
All subsidiary businesses reported above forecast results Resource and mining sectors buoyant on back of high commodity prices The China story promotes resource growth Mineral Resources achieves world best practice HSE outcomes Project pipeline continuing to be strong Client relationships develop “c
Slide 21: Overview
EQ Overview 1. Introduction — Commentary 2. Results Analysis 3. Overview of Year Ending 2006
Slide 22: Market Conditions
, a. eS) ree Market Conditions * Continuing strong global demand for commodities ¢ Business climate for mineral processing remains strong ¢ Australian mining juniors committed to developing operating mines ¢ Pipelining market growth anticipated to increase significantly across mining, infrastructure
Slide 23: Business Strategy
, a. eS) ree 8 Business Strategy * Maintain core business focus * Expand geographic and commodity diversification * Establish processing plant for Fe sands in Philippines * Pursue longer term operating contracts * Develop and maintain client support through performance * Improve HSE policies, proced
Slide 24: Company Performance — YTD 2006 / 2007
, a. eS) oe Company Performance — YTD 2006 / 2007 * 15% increase in Q3 production of manganese * Procurement of additional Fe sands tenements in Philippines * Commencement of additional 5 million tonne per annum contract crushing plant in Pilbara, Western Australia * Successful completion of supply
Slide 25: Focus Areas
Page 25 Focus Areas * HSE performance * Margins and rotaity * Cost control , * Recruitment and staff turnover ——> * Client relationships —=———+ * Contract and Risk ee Management Shareholder value increases as MIN becomes Contractor of choice for the mining services industry.
Slide 26: Revised FY2007 earnings guidance
, a. eS) rege 8 Revised FY2007 earnings guidance * Net profit after tax to be in excess of $16,000,000 — an increase of 55% over FY2006 and 21% above prospectus forecast. * Earnings per share to be a nominal 13.3 cents per share. ¢ Debt reduction to achieve a debt to equity ratio of 25%. This guidan
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