Mineral Resources Limited · ASX:MIN
Mineral Resources — Investor Day (October 2022)
45 slides from Mineral Resources's investor day presentation, Oct 10, 2022
Slide 1: Investor Site Tour Presentations
10 October 2022 Investor Site Tour Presentations Mineral Resources Limited (ASX:MIN; MinRes) will be hosting an investor and analyst tour on 9 to 11 October 2022, which includes a corporate presentation and site visits to the Mt Marion and Wodgina lithium mines. The presentation materials for the to
Slide 2: Investor Tour 9-11 October 2022
INVESTOR TOUR 9-11 OCTOBER 2022 ASX:MIN
Slide 3: Contents
CONTENTS 30 YEAR TRACK RECORD 4 CORE PILLARS AND MANAGEMENT SUSTAINABILITY FUTURE DIRECTION MINING SERVICES IRON ORE ENERGY LITHIUM
Slide 4: Our 30 Year Track Record
OUR 30 YEAR TRACK RECORD 1992 2006 450 $100M 2022 5,000 $14bn FOUNDED ASX LISTING PEOPLE MARKET CAP ASX 50 PEOPLE MARKET CAP Our track record since 2006 ASX listing • Grown total assets 50 times to $7.8bn – 30% pa growth • Delivered 21% pa return on invested capital1 • Generated $7.4bn in Underlying
Slide 5: Structured for Growth
STRUCTURED FOR GROWTH Chris ELLISON Managing Director +40 years experience 30 years with MinRes LITHIUM IRON ORE ENERGY Mike Joshua Chris Shelley GREY THURLOW SOCCIO ROBERTSON CEO - CEO - Lithium CEO - Iron Ore EGM - Energy Mining Services Leading pit-to- Largest +20 years Top five global +20 years
Slide 6: Building Bench Strength
BUILDING BENCH STRENGTH Recent key senior management appointments • Jason Keys – EGM Sales and Marketing – Iron Ore Iron Ore • 30+ years global marketing experience • Previous leadership roles – Rio Tinto, BHP and Ferrexpo • Stuart Gale – CFO Lithium • 30+ years mining experience • Previous CEO, Res
Slide 7: Putting Our People First
PUTTING OUR PEOPLE FIRST Workplace wellbeing • Head office – new standard for workplace wellness – targeting platinum WELL rating • Resort-style on site accommodation developed Safe and respectful workplaces • Female friendly and family environment • Zero tolerance – sexual harassment and anti-socia
Slide 8: Sustainability Highlights
SUSTAINABILITY HIGHLIGHTS SAFETY AND WELLBEING ENVIRONMENT COMMUNITY PEOPLE 5,000+2 employees and Safety focus – no LTIs, Net zero operational Financial and social benefits for Traditional Owners contractors TRIFR 2.33, LTIFR 0.001 emissions by 2050 $5.8M pa spend in 1393 entry level employees – Tar
Slide 9: Future Direction
FUTURE DIRECTION
Slide 10: Growth Target Double in Two Years
GROWTH TARGET DOUBLE IN TWO YEARS MINING SERVICES LITHIUM IRON ORE ENERGY Next 2 years • Increase contract volumes 50% • Train 4 constructed • Increase from 20Mtpa to 55Mtpa1 • Transition to greener energy • 50ktpa1 Kemerton hydroxide plant sources • Own and operating hydroxide • Developing natural
Slide 11: Mining Services Growth Pathway
MINING SERVICES GROWTH PATHWAY Volume growth 25% pa +65% volume growth from near term, Margin per tonne up 14% MinRes operated projects 600 500 Contract tonnes (Million wmt) 400 300 Mt Marion expansion Onslow Wodgina 30Mwmt Iron four trains 200 140Mwmt 9Mwmt 100 - FY19 FY20 FY21 FY22 Future growth p
Slide 12: Iron Ore Existing Operations
IRON ORE EXISTING OPERATIONS Utah Point • Continue to produce at 11Mtpa (Wonmunna and Iron Valley) • Wonmunna at steady run-rate • Assessing long term options – satellite deposits (Lamb Creek, Wedge Point) Yilgarn – Existing hematite • Currently 7Mtpa – 15 pits spanning 200km+ • Simplifying operatio
Slide 13: Iron Ore Onslow Iron Development
IRON ORE ONSLOW IRON DEVELOPMENT PROJECT HIGHLIGHTS ✓ Stage 1 – 30Mtpa, 35Mtpa capacity1 ✓ 30 year project life2 ✓ Low operating cost ✓ Low risk jurisdiction ✓ A$3bn total capex ✓ Low capital intensity – US$65 per tonne capacity ✓ High return on invested capital after tax ✓ 18 month development – ea
Slide 14: Iron Ore Pilbara Hub Development
IRON ORE PILBARA HUB DEVELOPMENT Mine • JV Partner: Brockman Mining (50%) • 20Mtpa1 ~30+ year life, Fe 60.5% • MinRes to manage Infrastructure • MinRes/Hancock JV shared rail and port access2 • Stanley Point Berth 3 approved by WA Government • Haul road from Marillana to Mulga Downs Timeline • Minim
Slide 15: Energy Gas Program
ENERGY GAS PROGRAM Perth Basin Lockyer Deep 1 Gas discovery • Plan to drill at least two exploration/appraisal wells in FY23 • Target two additional appraisal wells in FY24 • Plan to bring into production in FY24 Other acreage • Plan to drill two exploration wells in FY23 • Potential to bring Red Gu
Slide 16: Lithium Price, EV Consumption & Commitments
LITHIUM PRICE, EV CONSUMPTION & COMMITMENTS (2020 VS. 2022) 2020 2022 2030 Global EV Commitment (~40M Vehicles) 2030 Global EV Commitment (>60M Vehicles) 20M 10M 6M 5M 4M2 3M 20M 7M 5.5M 3M 1.5M2 (-%) (+43%) (+9%) (+100%) (+33%) (+100%) Other 3M2 2M2 2M2 2M2 2M ~2M 1M1 1M 0.6M1 Large (+100%) (+100%)
Slide 17: Iron Ore vs. Lithium Supercycle
IRON ORE VS. LITHIUM SUPERCYCLE Iron Ore Lithium Iron ore price performance1 LiOH price performance2 225 Demand inflection 80,000 Demand inflection point: 2002 point: 2022 200 70,000 175 Battery-Grade Lithium 60,000 (CFR China, US$/t) Hydroxide (US$/t) 150 62% Iron ore 50,000 125 40,000 100 30,000 7
Slide 18: MinRes Integrated Model – Price Outlook
MINRES INTEGRATED MODEL – PRICE OUTLOOK 2025 lithium hydroxide cost curve1 Lithium hydroxide price outlook 1,2,3,4 Lithium Spodumene Concentrate - Actual (LHS) 60,000 2025 battery-grade lithium hydroxide price (contract; nominal) = US$55,048/t LiOH3 Lithium Spodumene Concentrate - Forecast (Wood Mac
Slide 19: Mt Marion Lithium
MT MARION LITHIUM JV 50% 50% Mineral Resources: 51.4Mt at 1.45% Li2O Mineral Ore Reserves: 17.2Mt at 1.56% Li2O Endowment1 80% unexplored Two stage upgrade to 900ktpa mixed grade Expansion by December 2022 for A$120M2 Spodumene Capacity ✓ 900ktpa3 mixed grade – 600ktpa at 6% Lithium ✓ MinRes’ 51% of
Slide 20: Restructure of MARBL JV
RESTRUCTURE1 OF MARBL JV ✓ Ownership to change from 40% to 50% MinRes WODGINA ✓ Increased exposure and management of Wodgina – a Tier 1 lithium asset ✓ MinRes to operate WODGINA LiOH CONVERSION ✓ MinRes and Albemarle to jointly fund new 50/50 JV ✓ JV to develop hydroxide plants to convert Wodgina sp
Slide 21: Wodgina Lithium
WODGINA LITHIUM JV1 50% (operator), 50% Mineral Resources: 259Mt at 1.17% Li2O Mineral Ore Reserves: 147Mt at 1.20% Li2O Endowment2 Open at depth and in 3 directions ✓ Trains 1 and 2: Producing SC6 at nameplate 250ktpa2 each Current capacity3 ✓ Train 3: Almost commissioned. 6-9 months optimisation p
Slide 22: Kemerton Lithium
KEMERTON LITHIUM JV1 Ownership to change from 40% to 15% MinRes Feed Greenbushes – LOM offtake Current Train 1 and 2 – 50ktpa lithium hydroxide capacity2 ✓ Train 1 – first product July, six-month qualification period Expansion ✓ Train 2 – first product expected 2Q FY23 1. Proposed structure subject
Slide 23: Five Year Plan Lithium
FIVE YEAR PLAN LITHIUM Anticipated lithium hydroxide nameplate conversion capacity (attributable share) ktpa 7.5ktpa ~70ktpa ~118ktpa ~40ktpa 1 2 3 Mt Marion Wodgina Kemerton Target Production LiOH Train I & II Capacity 1. Assuming ramp up to 900ktpa mixed grade (equivalent to 600ktpa at 6%) and ass
Slide 24: Wodgina Lithium Mine
10 OCTOBER 2022 WODGINA LITHIUM MINE
Slide 25: Wodgina Site
Explosives power Compound Processing Workshop to Rom Ns Tailings Storage F PORT, HEDLAND meee 4) Ey Great Northern Hwy em Stato Road Mine Road Haul Road oe ee
Slide 26: Wodgina Operating History
WODGINA OPERATING HISTORY Overview History – MARBL JV • MinRes (50%) and Albemarle (50%) 2016 June 2016 • Ownership1 • Operator and mining services contractor: MARBL MinRes acquired Wodgina Lithium Project Lithium Operations February 2017 Location • 90km south of Port Hedland 2017 • Commenced lithiu
Slide 27: Wodgina Performance
WODGINA PERFORMANCE Wodgina Lithium Unit FY17 FY18 FY19 FY20* FY21* FY22 Exports kwmt 720 3,482 422 - - - DSO Revenue $/wmt 146 147 126 - - - EBITDA $/wmt 50 50 (11) - - - Total Material Mined kwmt - - - - - 671 Ore Mined kwmt - - - - - 61 Produced kdmt - - - - - 20 Exports kdmt - - - - - 22 Spodume
Slide 28: Wodgina Overview
WODGINA OVERVIEW MINING PROCESSING INFRASTRUCTURE EXPLORATION • LOM Strip ratio – 3.1:1 • 3.8Mtpa – 3 processing trains • 700 room camp • Resource open in all directions • Simple open cut mining • 3 stage crushing circuit • 140 room expansion • Resource definition drilling commencing February 2023 –
Slide 29: Wodgina Sustainability
WODGINA SUSTAINABILITY SAFETY1 SOCIAL1 ENVIRONMENT • 362 employees - >90% FIFO 2:2, 8:6 roster FY16 FY17 FY18 FY19 FY20* FY21* FY22 • Completed third party preliminary solar and wind • 12% female representation resource assessment LTIFR 0.0 0.0 0.69 0.0 0.0 0.0 0.0 • 3% Indigenous representation • T
Slide 30: Wodgina Geology
WODGINA GEOLOGY • The Wodgina main lode pegmatite is a sheeted dyke that trends north-south, dips at 20 to 50°E, and cuts across the foliation of the host rock, which strikes north-south to NE-SW, and dips to the west. • This pegmatite has a total strike length of ~1km, and varies from 5 to 40m in t
Slide 31: Wodgina Resource and Reserve
WODGINA RESOURCE AND RESERVE1 RESERVE Mineralisation Proved Reserves Probable Reserves Total Reserves Deposit Cut-off Tonnes Li2O Tonnes Li2O Tonnes Li2O Type Li2O (%) (Mt) (%) (Mt) (%) (Mt) (%) Wodgina Open Pit 0.5 - - 146.5 1.20 146.5 1.20 Stockpiles – ROM & Yard Stockpile N/A 0.5 1.53 - - 0.5 1.5
Slide 32: Wodgina Process Overview
WODGINA PROCESS OVERVIEW BLENDED FIXED PLANT OFFSITE UTAH POINT DRILL & BLAST LOAD & HAUL WET PLANT (SC) STORAGE SHIP LOADING ROM FINGERS CRUSHER (SC) HAULAGE PORT BUNKERS TAILINGS STORAGE 31
Slide 33: Mt Marion Lithium Operation
11 O C T O B E R 2 0 2 2 M T M A R I O N L I T H I U M O P E R AT I O N
Slide 34: Mt Marion Site
MT MARION SITE —— Railway = ny et el tear Equipment cB Workshop 4ING Plant —COOIGARDIE RL PERTH (555km) aN MIMARION| a
Slide 35: Mt Marion Location and History
MT MARION LOCATION AND HISTORY History December 2015 2015 • Construction commenced. Mt Marion project was designed, built and constructed utilising MinRes’ in-house project management capabilities December 2016 2016 • Production commenced with first shipment in February 2017 Overview March 2019 2019
Slide 36: Mt Marion Performance
MT MARION PERFORMANCE Mt Marion lithium Unit FY17 FY18 FY19 FY20 FY21 FY22 Total material mined kwmt 7,044 22,539 21,453 27,642 29,578 30,532 Ore mined kwmt 1,460 2,923 2,817 2,746 2,466 1,908 Produced kdmt* 156 435 342 398 485 431 Exports kdmt* 116 382 366 394 486 442 Spodumene Revenue $/dmt* 783 8
Slide 37: Mt Marion Overview
MT MARION OVERVIEW MINING PROCESSING INFRASTRUCTURE EXPLORATION • FY22 TMM 31.1Mt • 2.6Mtpa plant • 400 room Village (140 room Expansion) • 80% unexplored • LOM strip ratio – 10.8:1 • Three stage crushing circuit • Water Bore Field • Significant exploration program • Dense media separation (DMS) • 1
Slide 38: Mt Marion Sustainability
MT MARION SUSTAINABILITY SAFETY1 SOCIAL1 ENVIRONMENT FY16 FY17 FY18 FY19 FY20 FY21 FY22 • 347 employees - >90% FIFO 2:2, 8:6 roster • ISO14001 accredited (granted August 2022) • 20% female representation • Dry stack and in-pit tailings disposal continues as LTIFR 0.0 0.0 0.0 0.0 0.0 0.0 0.0 • 3% Ind
Slide 39: Mt Marion Geology
MT MARION GEOLOGY • Mt Marion lithium mineralisation is hosted within a number of sub-parallel, northeast to northwest trending pegmatite intrusive bodies which dip between 10° and 30° to the west. • Individual pegmatites vary in strike length from approximately 300m to 1,500m and average 15m in thi
Slide 40: Mt Marion Resource and Reserve
MT MARION RESOURCE AND RESERVE1 RESERVE Mineralisation Proved Reserves Probable Reserves Total Reserves Deposit Cut-off Tonnes Li2O Tonnes Li2O Tonnes Li2O Type Li2O (%) (Mt) (%) (Mt) (%) (Mt) (%) Mt Marion Open Pit 0.75 - - 16.4 1.57 16.4 1.57 Stockpiles – ROM, Yard & Port Stockpile N/A 0.1 1.83 -
Slide 41: Mt Marion Exploration Potential
MT MARION EXPLORATION POTENTIAL 40
Slide 42: Mt Marion Process Flow
MT MARION PROCESS FLOW ss WATER TANK 1 1 fl 1 I 1 I i 1 1 1 vena? h--------+ -> ==> winin BacKriLe 1 coun aiings 1 I I | i I 1 an sd — Be. — Ma, — 1 — ESPERANCE CHINA PORT ZHENJIANG PORT SQ satnees
Slide 43: Mt Marion Non-Process Infrastructure Expansion
MT MARION NON-PROCESS INFRASTRUCTURE EXPANSION Upgraded Facilities • Upgrade Site Offices • Automated LV Wash Bay • New Tyre Change Bay • Expanded Warehouse capability • Larger capacity Laboratory • HME Workshop Extension • 2 HV Work Bays • Boilermaker and Drill & Blast Lean-to 42
Slide 44: Investor Relations
INVESTOR RELATIONS Chris Chong Investor Relations Manager T: +61 8 9315 0213 E: chris.chong@mrl.com.au OFFICE: 20 Walters Drive, Osborne Park, WA 6017 POSTAL: Locked Bag 13, Osborne Park DC, WA 6916 P +61 8 9329 3600 F +61 8 9329 3601 www.mineralresources.com.au ASX:MIN
Slide 45: Disclaimer
DISCLAIMER This presentation should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into