Mineral Resources Limited · ASX:MIN
Mineral Resources — FY2013 Earnings Presentation
25 slides from Mineral Resources's earnings presentation, Aug 16, 2013
Slide 1: Annual Results Presentation
For personal use only Annual Results Presentation An Integrated Australian Mining Services Company August 2013 www.mineralresources.com.au
Slide 2: About Mineral Resources
For personal use only About Mineral Resources • Mineral Resources Limited is a Western Australian, publicly listed, ASX 100 company (ASX:MIN) with a market cap approximately A $2 billion • Employs in excess of 1,700 people • Largest Australian specialist contract crushing, materials handling and min
Slide 3: Service Provider and Minerals Producer
For personal use only Service Provider Minerals Producer Process Minerals PIHA Crushing Services Polaris Metals Mesa Minerals (64% owned) International & Auvex Resources Mineral and base metals Pipeline, water & Specialist Iron Ore processing, logistics, dewatering services, Australia's largest reso
Slide 4: Mining Infrastructure Services
For personal use only Mining Infrastructure Services
Slide 5: Mining Infrastructure Services model
Mining Infrastructure Services model For personal use only • Service matrix developed from Project Infrastructure Construction experience and product development (MRL) Transhipping Mining (MRL) (CSI) • Product lines (BOO, EPC, O&M) • Expand contract / customer base Road Haulage Service Crushing & Ha
Slide 6: Crushing Services
Crushing Services For personal use only • Installed BOO crushing and processing capacity 130 mtpa • Christmas Creek 2 construction complete and in production • 5 new BOO crushing contracts (22mtpa) in operation • EPC opportunities in negotiation • BOO crushing and services enquiries at record levels
Slide 7: Crushing Services: Growth in Installed Capacity
Crushing Services For personal use only Growth in Installed Crushing Capacity (MTPA) 140 120 100 80 60 40 20 0 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 8: PIHA
PIHA For personal use only Innovative Pipeline Technology & Water Solutions • PIHA business activity increasingly services based • Opportunities in onshore oil and gas sector (CSG, Natural gas developments) increased. Key contracts for supply of products and provision of services won. Queensland and
Slide 9: PMI Site Services
PMI Site Services For personal use only Overview • Has become one of the fastest growing division within the MRL Group • Presence in the Pilbara and Yilgarn regions continues to grow strongly • PMI model leverages off existing client base and own requirements • An additional 485 beds under managemen
Slide 10: Minerals Production
For personal use only Minerals Production
Slide 11: Project development strategy
Project development strategy For personal use only MRL’s core competencies: • Project development • Seamless execution • Construction Acquire • Start-up • Operational optimisation • Production expansion • Monetisation Develop Portfolio stages of development • Carina – steady state / Optimise growth
Slide 12: Export Volume Growth
For personal use only Export Volume Growth 10 MRL Iron Ore Operations million tonnes 8 6 4 2 Port Hedland 0 Poondano 2009 2010 2011 2012 2013 2014 Target Spinifex Ridge Utah Point KBT2 map Iron Valley Phil’s Creek ‘000 tonnes 2009 2010 2011 2012 2013 Iron Ore . Phil’s Creek 464 . Other 375 875 2,259
Slide 13: Pilbara iron ore operations
For personal use only Pilbara iron ore operations Phil’s Creek Iron Ore Mine Spinifex Ridge Iron Ore Mine • Mine developed in 7 months • Agreement signed with Moly Mines • First ore mined October 2012 • Project operational 1 July 2013 • Building, upgrading and bitumising • ~ 2.5MT resource available
Slide 14: Carina Iron Ore Mine
For personal use only Carina Iron Ore Mine • A strategic operating mine in established Yilgarn iron ore province • Proven recognition of product quality by Chinese steel producers • Ex-port logistics, project has access to 10mtpa core infrastructure • Project operating at 4.6 mtpa rate in June 2013
Slide 15: Ports / Export Capacity
Ports / Export Capacity For personal use only • Port capacity / infrastructure a Utah Point, Port Hedland priority development • Existing port access can be expanded by “working the assets” • Alternatives are the key to the future. Transhipment options currently being investigated. Potential for a t
Slide 16: MRL believes iron ore remains an attractive sector
MRL believes iron ore remains an attractive sector For personal use only • Market prices remain healthy Platts 62% CFR Index • China domestic Fe production cost rising 250 • World economy recovering • Korea & India growth potential 200 • China steel production expected to grow 150 • China depends on
Slide 17: 2013 Financial & Operational Highlights
For personal use only 2013 Financial & Operational Highlights
Slide 18: Operational Highlights
For personal use only Operational Highlights Mining Services • Crushing services continues to grow strongly • Installed BOO crushing capacity 130 mtpa • Christmas Creek 2 construction complete, plant in full production • 5 new BOO crushing contracts (22mtpa) in operation • Poondano quarry activities
Slide 19: Financial Highlights
For personal use only Financial Highlights $AUD millions Revenue FY 2012 925.9 FY 2013 1,097.0 • Record full year EBITDA of $385 million EBITDA 294.3 385.0 • NPAT skewed to second half as predicted NPAT 177.1* 180.4 (contracting starts, improved iron ore *adjusted for MRRT charge prices, AUD weaknes
Slide 20: Movement in Profit before tax 2012 to 2013
Movement in Profit before tax 2012 to 2013 For personal use only 150 100 50 $ million 0 -50 -100 Change in Increased Change in Fe Reduction in Fe Margin Other depreciation contracting volume price improvement / volume cost savings Events of note: • New crushing contracts in addition to the expansion
Slide 21: Operational Cash Flow
Operational Cash Flow For personal use only $AUD millions FY 2012 FY 2013 EBITDA 294.3 385.0 CAPEX (including funded items) (427.6) (418.9) Net Interest Payments (1.4) (5.1) Income Taxes Paid (48.0) (31.3) Working Capital and Other 46.4 19.3 Net Operating and Investing cash flow (136.3) (51.0) Divid
Slide 22: Financial History (Since Listing)
Financial History (Since Listing) For personal use only Revenue EBITDA 1200 450 1000 400 350 800 300 $ millions $ millions 600 250 200 400 150 200 100 50 0 0 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013 Net Assets 1200 1000 800 $ millions 600 400 200 0 2007 2008 2009 2010 20
Slide 23: Strategic Direction
For personal use only Strategic Direction
Slide 24: Strategic Positioning
Strategic Positioning For personal use only Diversified Strong Balance Contractor of Iron ore sector Resource Revenue Sheet Choice developments Streams • Mining services • Corporate • Recognised as • MRL is an • MRL excels at comprising strength world leader in experienced project contract supports
Slide 25: Disclaimer
Disclaimer For personal use only • 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 respe