Mineral Resources Limited · ASX:MIN
Mineral Resources — Investor Presentation (February 2015)
22 slides from Mineral Resources's investor presentation, Feb 23, 2015
Slide 1: MRL Strategy Presentation
Mineral Resources Limited (ASX:MIN) Integrated Mining Services For personal use only MRL STRATEGY PRESENTATION February 2015 February 2015 | www.mrl.com.au | Slide No. 1
Slide 2: Corporate Profile
For personal use only CORPORATE PROFILE SERVICES PROVIDER MINERALS PRODUCER PROCESS MINERALS CRUSHING SERVICES PIHA MINERAL SERVICES POLARIS METALS MESA MINERALS * • Mineral Processing • Crushing & • Services • External hire of diesel • Iron Ore Exploration • Manganese Technology • Logistics Screeni
Slide 3: Strategic Context
For personal use only STRATEGIC CONTEXT Where have we come from? Things we need to do and do well • Iron Ore industry has experienced: • Safety – achieve and maintain world class • An once in a lifetime pricing environment driven safety performance by unprecedented Chinese economic growth and steel
Slide 4: MRL Safety Performance
For personal use only MRL SAFETY PERFORMANCE The Journey – Our Way of Working: • Roll out of ‘Crossroads’ Safety Intervention Program: Program outline business strategy to improve Safety Performance and Culture across the wider group which is 12mth TRIFR: 66% improvement shared with all employees; •
Slide 5: Half Year FY2015 Highlights
For personal use only HALF YEAR FY2015 HIGHLIGHTS Financial Result Business Conditions • Revenue $752 million, 22% lower • Margins are tighter in the industry and • EBITDA $132 million, 5% lower available work is under pressure • NPAT (underlying) $51 million • MRL is committed to Mining Services •
Slide 6: Mining Services Business
For personal use only MINING SERVICES BUSINESS February 2015 | www.mrl.com.au | Slide No. 6
Slide 7: CSI / Construction
For personal use only CSI /CONSTRUCTION • Strong pipeline of new and existing BOO Contracts • Pursuing design and construct opportunities – outstanding Tonnes performance on NBWT EPC project setting new performance Installed Crushing Capacity benchmark 140 • An Opportunity to secure new EPC processi
Slide 8: PIHA
For personal use only PIHA • PIHA traditional business continues to make a solid contribution to earnings • PIHA will progressively move to more integrated manufacturing in the areas of: • Steel piles and heavy wall pipe • Valves and fittings • HDPE Fittings • Recent Vent Master and Spiral Pipe acqu
Slide 9: PMI (Supply Chain Logistics)
For personal use only PMI (Supply Chain Logistics) • Camps – Continue to leverage accommodation facilities for our own operations to provide services for external customers • Design/Construct – Focus remains on smaller process plants and beneficiation plants • Supply chain management: • Carina locom
Slide 10: Commodities Business
For personal use only COMMODITIES BUSINESS February 2015 | www.mrl.com.au | Slide No. 10
Slide 11: Commodities Business Overview
For personal use only COMMODITIES BUSINESS OVERVIEW Carina • Current Selling price $A80/WMT • Current Product on train for $26/WMT • Fuel savings reduced both haulage costs and seafreight • Cash costs $A79 [June 2014], $A70 [December 2014] • Ownership costs $A5/WMT • Cost savings in the next 6 month
Slide 12: MRL Strategy
For personal use only MRL STRATEGY February 2015 | www.mrl.com.au | Slide No. 12
Slide 13: Pilbara Iron Ore
For personal use only PILBARA IRON ORE • Mid-tier miners in the Pilbara currently have just one mine to ship supply chain solution – road haulage and export over Utah Point • This is not sustainable due to high operational costs, particular in light of the dramatic cost pressures facing the iron ore
Slide 14: Iron Valley Beneficiation
For personal use only IRON VALLEY BENEFICATION • Iron Valley is a traditional Brockman deposit • Currently producing DSO (60% lump being shipped to China and 40% fines being held for future beneficiation) • Product <60% Fe harder to sell without incurring prohibitive discounts • Future Strategy usin
Slide 15: Bulk Ore Transportation System (BOTS)
For personal use only BULK ORE TRANSPORTATION SYSTEM (BOTS) February 2015 | www.mrl.com.au | Slide No. 15
Slide 16: BOTS - Background
For personal use only BOTS - BACKGROUND Occupying a niche between heavy rail and conveyor, BOTS is an autonomous system utilising electrically powered, purpose designed wagons to transport bulk ore materials. For iron ore product, MRL is planning a payload of approximately 15 tonnes per vehicle, sub
Slide 17: BOTS - Business Plan
For personal use only BOTS - BUSINESS PLAN • Innovate to establish the business for the next 20 to 30 years • Aim is to be a totally integrated mine-to-customer services provider • Most of the expertise/capability to deliver this strategy is existing • MRL’s newly developed innovative Bulk Ore Trans
Slide 18: BOTS - Typical Section
For personal use only BOTS - TYPICAL SECTION POWER CAR POWERED & IDLING • BOTS WAGONS: • 15 Tonne Payload (INCL. COMMS) WAGONS • Continuous Loading • Bottom Dump • BOTS SET COMPRISES: • 1 x Power Car (Diesel/LNG) • 13 x Powered and Idling Wagons • BOTS UNIT COMPRISES: • 20-24 set (2km Length) • Up t
Slide 19: BOTS - Road/Rail Crossing
For personal use only BOTS – ROAD/RAIL CROSSING ROAD/RAIL CROSSING • 45 m span trusses • Up to 10m height CREEK CROSSING • 45 m span trusses • Up to 10m height • Reinforced for high flow and debris protection February 2015 | www.mrl.com.au | Slide No. 19
Slide 20: BOTS - Commercialisation
For personal use only BOTS - COMMERCIALISATION • First BOTS project – Iron Valley to Port Hedland 331km • Implementation/project start up end 2015 • First Iron Valley ore on BOTS by mid 2017 • First 12 mtpa of ore on BOTS from Iron Valley • Other mines located along the route – could add an extra 30
Slide 21: Growth & Outlook
For personal use only GROWTH & OUTLOOK • MRL’s underlying strengths remain as a mining services provider of cost effective and highly efficient equipment, infrastructure and processes • MRL is well placed to leverage this core expertise to deliver a totally integrated mine-to-customer service soluti
Slide 22: Disclaimer
For personal use only DISCLAIMER This presentation has been prepared by Mineral Resources Limited (“MRL” or “the Company”).It 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
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