Om Holdings Ltd. · ASX:OMH
Om — Investor Presentation (June 2021)
25 slides from Om's investor presentation, Jun 11, 2021
Slide 1: OM Holdings Limited ASX Announcement Cover Letter
OM HOLDINGS LIMITED (ARBN 081 028 337) No. of Pages Lodged: 25 11 June 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 presentation which will be used for a virtual ana
Slide 2: OM Holdings Limited Virtual Analyst Briefing
1 OM HOLDINGS LIMITED Australia • China • Japan • Malaysia • Singapore • South Africa June 2021 • Virtual Analyst Briefing • ASX:OMH
Slide 3: Disclaimer
2 DISCLAIMER 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 investor should consider w
Slide 4: A Manganese Ore & Ferroalloy Company
3 A MANGANESE ORE & 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 ASX, OMH offers unique
Slide 5: Company Snapshot
4 COMPANY SNAPSHOT Balancing debt reduction with sustainable dividends, refinancing a priority Issued Shares 738.6 million shares $2.00 Share Price Performance Share Share Price A$ 0.75 $1.50 Metrics (as at 31st 52 weeks Low / High A$ 0.29 / A$ 1.00 $1.00 May 2021) Market Capitalization A$ 554.0 mil
Slide 6: Key Investment Points
5 KEY INVESTMENT POINTS The Largest & Lowest Cost Quartile Ferroalloy Smelter in the Region 1 2 3 Lowest Cost Quartile One of the Largest and Fast Prime Beneficiary of Ferroalloy Smelter In The Growing Ferroalloy Smelters in Commodities Supercycle Region(1) the Region(2) Driven by surging steel dema
Slide 7: Our Operations
6 OUR OPERATIONS 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, Silicomanganese, Ferro
Slide 8: The Proverbial Value Chain
7 THE PROVERBIAL VALUE CHAIN OMH is a low cost integrated miner + smelter, not a pure play Mn mining company 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 / Purchases Other Mines ◦ Ore
Slide 9: Samalaju Industrial Park: Asia's New Smelting Hub
8 SAMALAJU INDUSTRIAL PARK: ASIA’S NEW SMELTING HUB 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 hydropower OM SARAWAK Samalaj
Slide 10: Smelting – At the Heart of What We Do
9 SMELTING – AT THE HEART OF WHAT WE DO FeSi Production Cost Comparison 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 20 years • Hands on man
Slide 11: Our Products
10 OUR PRODUCTS Critical alloying element to steel - a product essential to basic industries and modern infrastructure Manganese Ore Manganese Alloys Silicon Alloys Manganese is the 4th most consumed Main alloying element – Manganese Main alloying element – Silicon metal behind iron, aluminium and c
Slide 12: Growth of Steel in Southeast Asia
11 GROWTH OF STEEL IN SOUTHEAST ASIA (SEA) Regional steel demand remains positive in the long run 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 of 61.5 million MT 2
Slide 13: Smelting: Raw Materials to Critical Additives
12 SMELTING: RAW MATERIALS TO CRITICAL ADDITIVES Manganese Ore - Mn High Purity Quartz - Si Products Ferro-Manganese Silico-Manganese Ferrosilicon Metallic Silicon Under Development Customers Steel Mills Foundries Chemicals / Solar / Electronics Some of our Customers: China Steel Corporation (Taiwan
Slide 14: Ferrosilicon Market Review
13 FERROSILICON MARKET REVIEW Strong demand from steel makers supported prices in Q1 1 2 3 Overall 2020 Q1 2021 28th April 2021 Regional key steel producing countries cut China remains a marginal supplier China increased the export production by 20%-30% YoY from Q2-Q3 for FeSi for East Asian and Sou
Slide 15: Manganese Ore and Alloy Market Review
14 MANGANESE ORE AND ALLOY MARKET REVIEW Strong demand from steel makers and constrained supply supported prices in Q1 1 2 Overall 2020 Q1 2021 SiMn prices relatively stable but global demand Ore and alloy prices rise with post-COVID growth. SiMn prices depressed. Price spread between ore and alloy
Slide 16: Financial Highlights
15 FINANCIAL HIGHLIGHTS A$’million 2015 2016 2017 2018 2019 FY2020 Revenue 338.5 414.2 988.2 1,510.4 1,026.5 784.6 Gross Profit 6.1 60.1 209.6 353.3 152.5 96.3 GP Margin (%) 1.8 14.5 21.2 23.4 14.9 12.3 Adjusted EBITDA* (37.6) 35.0 186.1 339.7 154.5 81.4 Profit/(Loss) Before Tax (131.6) (8.1) 72.6 2
Slide 17: Gearing Ratio Lowered, Positive Cash Position Maintained
16 GEARING RATIO LOWERED, POSITIVE CASH POSITION MAINTAINED Continue to focus on paying down debt $800 Total Debt 5 4.76 • Repaid A$33.2 million comprising Sarawak Gearing Ratio $600 4 project finance loan and other debt in FY2020 A$ million 3.05 3 $400 • Gearing ratio decreased to 0.89 times 1.77 2
Slide 18: Normalize Operations Impacted by COVID to Pre-Pandemic Levels
17 NORMALIZE OPERATIONS IMPACTED BY COVID TO PRE-PANDEMIC LEVELS 10 of 10 Fesi 6 of 6 Mn Alloys Pre-COVID 65-70 mt / day 100-110 mt / day Dec 2020 6 of 10 Fesi 6 of 6 Mn Alloys 65-70 mt / day 100-110 mt / day After 8 Fesi 8 Mn Alloys 65-70 mt / day 100-110 mt / day Conversion Working towards full op
Slide 19: Operational Performance Q1 2021
18 OPERATIONAL PERFORMANCE Q1 2021 Mn Ore Production Volume (kmt) Mining Segment (Mn Ore) • FY2021: Last mile strategy to accelerate mining and production to 570 738 optimize remaining lifetime mining cost +29% 211 • Lump product grade strategy focused to target 26% Mn in line FY2019 FY2020 Q1 2021
Slide 20: Future Plans and Growth
19 FUTURE PLANS AND GROWTH Core fundamentals unchanged, growth plans for both upstream and downstream Bryah Resources 14 FeSi Element 25 Si 701 Mile Silicon Manganese SiMetal Raw Material Expanding Capacity Higher Value Add Development (~Capex A$100-150 mil) (~Capex A$30 mil) • Explore prospective •
Slide 21: Secondary Listing on Bursa Malaysia
20 SECONDARY LISTING ON BURSA MALAYSIA Primary Listing status: Australian Securities Exchange (ASX) Secondary Listing status: Bursa Malaysia Securities Berhad (Bursa Malaysia) Stock code: ASX:OMH | OMH (5298) OM Holdings Limited • Upon listing on Bursa Malaysia, all shares quoted on both the ASX and
Slide 22: OM Holdings Limited
21 OM HOLDINGS LIMITED AUSTRALIA • CHINA • JAPAN • MALAYSIA • SINGAPORE • SOUTH AFRICA
Slide 23: Appendix
22 APPENDIX
Slide 24: Bootu Creek, Northern Territory, Australia
23 BOOTU CREEK, NORTHERN TERRITORY, AUSTRALIA An owner operated mine, wholly owned by the Group since 2007 OM Manganese Ltd (“OMM”) - 100% Owned Mine: Bootu Creek Location: Northern Territory, Australia Product: Siliceous Manganese Ore Capacity: Ore production 0.8 million mt per annum, Ultra fines 0
Slide 25: Greenfield In-House Developed Smelting Plants
24 GREENFIELD IN-HOUSE DEVELOPED SMELTING PLANTS OM Qinzhou – 100% Owned Malaysia Smelting Location: Guangxi, China Cost Structure Product: Manganese alloys (SiMn, HCFeMn), 100% Sinter ore Furnaces: 1 x 16.5 and 1 x 25.5 MVA furnaces 90% Capacity: 80-95ktpa of manganese alloys, 80% 300ktpa of Sinter