Mineral Resources Limited · ASX:MIN
Mineral Resources — FY2024 Earnings Presentation
49 slides from Mineral Resources's earnings presentation, Aug 28, 2024
Slide 1: FY24 Full Year Results
FY24 FULL YEAR RESULTS 28 August 2024 ASXMIN
Slide 2: Disclaimer and Important Notices
DISCLAIMER AND IMPORTANT NOTICES This presentation should not be considered as an offer or invitation to subscribe for or purchase any securities in Mineral Resources Limited and its subsidiaries (“MinRes” or “Company”) or as an inducement to make an offer or invitation with respect to those securit
Slide 3: Agenda
AGENDA FY24 summary 4 People and sustainability 5 Financial overview 9 Operational overview and outlook 23 FY24 FULL YEAR RESULTS | 3
Slide 4: FY24 Summary
FY24 SUMMARY MINING SERVICES AND INFRASTRUCTURE $550M+ EBITDA – up 14% pcp Record year Developed infrastructure capacity $5.3bn REVENUE 10% pcp to double mining services business Delivered Onslow Iron Engineering and construction ahead of schedule $1.1bn UNDERLYING EBITDA 40% pcp Unlocked capital an
Slide 5: FY24 People
FY24 PEOPLE Total Recordable Injury Frequency Rate (TRIFR) SAFETY Per million hours worked • TRIFR 2.741 4 • Reflects increased construction 3.63 • Focus on training and education 3.5 3 2.74 DIVERSITY 2.5 2.31 2.33 • Workforce reached 8,500 2.08 • Female representation 22.3% 2 • Female Board represe
Slide 6: MinRes Air Takes Off
MINRES AIR TAKES OFF Efficiency and productivity • Expands flight options • Minimises production delays • Vertical integration into operations Accessing new talent pools • Drawing on Eastern States workforce • Adjusting routes to meet demand • Expanding with services from Perth Enhanced FIFO experie
Slide 7: FY24 Sustainability
FY24 SUSTAINABILITY Net zero emissions by 2050 $8M in social investment contributions $4.8bn total Australian supplier spend FY24 FULL YEAR RESULTS | 7
Slide 8: Traditional Owner Partnerships
TRADITIONAL OWNER PARTNERSHIPS Supporting positive social, economic and environmental legacies for Indigenous communities $68M spent with local Indigenous businesses $96M worth of Indigenous contracts signed FY24 FULL YEAR RESULTS | 8
Slide 9: Financial Overview
FY24 FULL YEAR RESULTS FINANCIAL OVERVIEW
Slide 10: FY24 Underlying Profit and Loss
FY24 UNDERLYING UNDERLYING PROFIT AND LOSS ($M) FY23 FY24 VARIANCE VARIANCE % PROFIT AND LOSS Revenue 4,779 5,278 499 10% Underlying EBITDA 1,754 1,057 (697) (40%) - Mining Services 484 550 66 14% $5.3bn REVENUE 10% pcp - Commodities 1,504 786 (718) (48%) - Corporate and intersegment (234) (279) (45
Slide 11: Underlying EBITDA Bridge
FY24 UNDERLYING EBITDA ($M) Commentary FY23 Underlying EBITDA 1,754 Lithium volume and FOB Cost 2,189 Increased volumes sold and lower spodumene FOB Cost Controllable Iron Ore volume and FOB Cost (84) FOB Costs impacted by increased haulage costs Mining Services 66 Increased production and EBITDA $/
Slide 12: FY24 Cash Flow
FY24 CASH FLOW ($M) FY23 FY24 VARIANCE CASH FLOW Underlying EBITDA 1,754 1,057 (697) Movement in working capital (4) 852 856 • Movement in working capital includes Operating cash flow before interest and tax 1,750 1,909 159 $0.6bn iron ore prepayments; excluding this, cash conversion was 124% Net in
Slide 13: FY24 Summary Balance Sheet
FY24 SUMMARY BALANCE SHEET ($M) FY23 FY24 VARIANCE BALANCE SHEET Inventories Trade and other receivables 606 658 607 1,027 369 1 Trade and other payables (851) (1,784) (933) $0.9bn CASH Other (146) (313) (167) Net working capital 268 (463) (731) Non-current receivables 70 441 371 $8.0bn CAPITAL EMPL
Slide 14: Operating Cash Flow Capital Allocation Framework
OPERATING CAPITAL ALLOCATION CASH FLOW FRAMEWORK Excess cash Priorities ORGANIC GROWTH > 20% ROIC STRONG BALANCE SHEET Long term < 2.0x Debt/EBITDA Recycling capital INORGANIC GROWTH > 20% ROIC SUSTAINING CAPITAL DEBT REPAYMENT No significant maturities prior to 2027. Covenant light FULLY FRANKED DI
Slide 15: Credit Metrics and Debt Maturity Profile
CREDIT METRICS AND DEBT MATURITY PROFILE3 DEBT MATURITY PROFILE 2.0 1.8 1.6 CREDIT METRICS FY23 FY24 1.4 Cash $1.4bn $0.9bn 1.2 $billion Liquidity $1.8bn $2.8bn 1.0 0.8 Net debt $1.9bn $4.4bn 0.6 Net debt to Underlying EBITDA 1.1x 4.2x 0.4 Underlying EBITDA to interest1 6.6x 2.5x 0.2 0.0 Net debt to
Slide 16: FY24 Capital Expenditure
FY24 CAPITAL EXPENDITURE RESOURCE CAPEX1 ($M) GROWTH SUSTAINING DEVELOPMENT AND FY24 COMMENTS EXPLORATION • Growth includes Wodgina, Bald Hill fleet and Mt Marion plant Lithium 253 333 65 651 improvements and underground development • Sustaining includes deferred strip of $235M Iron Ore 16 242 33 29
Slide 17: FY24 Net Debt Waterfall
FY24 NET DEBT WATERFALL 2,000 Net cash from operating activities1 $1,449M 1,000 Iron Ore Prepayment 600 - 1,057 (326) Exploration (226) (133) (1,000) $ million 852 Sustaining (619) (2,000) (1,896) Growth (2,510) (3,000) 417 (4,000) (430) (3,355) 56 (500) (170) (4,428) (5,000) 2 Net Debt FY23 Underly
Slide 18: FY25 Guidance
FY25 GUIDANCE IRON ORE LITHIUM YILGARN HUB PILBARA HUB ONSLOW MT MARION WODGINA BALD HILL MinRes Share 100% 100% 57%1 50% 50% 100% Spodumene Spodumene Spodumene Product 25% Lump 25% Lump All Fines Grade 4.1% Grade 5.5% Grade 5.0% Volume 150 to 170kdmt 210 to 230kdmt 120 to 145kdmt 2.0 to 3.0Mt 9.0 t
Slide 19: FY25 Capex Guidance
FY25 CAPEX GUIDANCE RESOURCE CAPEX1 ($ M) GROWTH SUSTAINING DEVELOPMENT FY25 COMMENTS AND EXPLORATION • Growth includes underground development at Mt Marion Lithium 66 334 42 442 • Sustaining includes deferred strip of $261M • Growth includes Onslow capitalised operating costs of $153M Iron Ore 199
Slide 20: Onslow Road Minority Stake Sale
ONSLOW ROAD MINORITY STAKE SALE Achieved all transaction objectives: Release capital from underappreciated infrastructure assets $1.3bn GROSS PROCEEDS1 49% sell down Crystalise return during construction period Diversify sources of funding $2.7bn ASSET READ THROUGH VALUE Expect transaction completio
Slide 21: Stage 1 Onslow Capex and Return Profile
ONSLOW ATTRIBUTABLE DEVELOPMENT CAPEX WATERFALL ($bn) STAGE 1 ONSLOW 4.0 4.0 Onslow resort CAPEX AND 3.3 3.5 upgrade $0.1bn 3.5 0.5 RETURN PROFILE 3.0 2.8 FY25: 0.7 3.0 2.5 2.5 2.5 2.0 TOTAL (0.8) $3.3bn 1.5 DEVELOPMENT 2.0 CAPEX1 FY24: 1.7 1.0 1.4 1.5 0.5 NET MINRES (1.2) $1.4bn ATTRIBUTABLE CAPEX
Slide 22: Leverage Profile and Targets
LEVERAGE PROFILE AND TARGETS We anticipate rapid deleveraging via Onslow Iron and remain committed to our previously-stated leverage targets WITH INDICATIVE ONSLOW IRON CURRENT SCENARIO AT 35MTPA (AT 30 JUNE 2024) NAMEPLATE PRODUCTION1,2 Underlying EBITDA $1.1bn $2.5bn Underlying EBITDA (Mining Serv
Slide 23: Operational Overview and Outlook
FY24 FULL YEAR RESULTS OPERATIONAL OVERVIEW FY24 FULL YEAR RESULTS OPERATIONAL OVERVIEW AND OUTLOOK
Slide 24: Mining Services FY24 Highlights
MINING SERVICES FY24 CRUSHING AND HIGHLIGHTS PROCESSING HAULAGE MARINE Remains the heart of our business, with a growing client book and reliable earnings unaffected by Production 27 crushing Three external Two of five commodity prices transhippers volume and processing haulage 269Mt plants contract
Slide 25: Mining Services Unrivalled Capability
MINING SERVICES FULL SERVICE EXPERTISE UNRIVALLED CAPABILITY • Mining • Crushing, screening and processing • Jumbo haulage • Marine and transhipping • Site services and people logistics Leading pit-to-ship services • Rehabilitation • Mining • Marine and transhipping and infrastructure provider • Cru
Slide 26: Mining Services Future
MINING SERVICES FUTURE Onslow Iron accelerates growth next 2.5 two years 1,000 1.9 2.0 Onslow Iron delivers earnings step change 1.9 1.9 2.0 800 1.7 1.7 FY25 35Mtpa Earning streams EBITDA EBITDA1 EBITDA2 1.5 600 Mining Services contracts 1.0 • Crushing 400 • Haulage $2.0/t $144M $280M • Port handlin
Slide 27: Engineering and Construction FY24
ENGINEERING AND CONSTRUCTION FY24 CONSTRUCTION PROJECTS • Onslow Iron key infrastructure – pit-to-port • Wonmunna NPI upgrades • Bald Hill crushing plant commissioning • Mt Marion WHIMs installation • Accommodation and NPI upgrades ENGINEERING STUDIES • Lamb Creek • Perth Basin Lockyer gas project •
Slide 28: Engineering and Construction: Onslow Iron Delivered
ENGINEERING AND CONSTRUCTION Delivered Onslow Iron: our largest and most diverse infrastructure project MINE HAUL ROAD PORT RESORTS Three 13Mtpa Began 150km Transhipping wharf 500 pods installed crushing plants private haul road complete at Ken’s Bore Mine stacker Bespoke design 220kt product storag
Slide 29: Commodities: Iron Ore
FY24 COMMODITIES: IRON ORE ONSLOW IRON PILBARA HUB YILGARN HUB First ore on ship Shipped Shipped delivered May 2024 10.4Mt 7.6Mt Produced FOB Cost FOB Cost 0.4M wmt (100%) $74/wmt $108/wmt Shipped Acquired Iron Valley Exports to cease1 0.2M wmt assets by 31 December 2024 1. ASX Announcement 19 June
Slide 30: Onslow 2030 Global Cost Curve Position
ONSLOW 200 2030 GLOBAL COST CURVE POSITION 2030E IRON ORE COST CURVE (FOB EX-ROYALTIES)3 Direct Cash Cost (US$/dmt) IRON 160 Q1 Q2 Q3 120 US$21/dmt US$29/dmt US$39/dmt Underpinning our transition to long-life, low-cost operations 80 ONSLOW IRON STAGE 1 40 35Mtpa (wet) Target June 2025 - - 500 1,000
Slide 31: Commodities: Lithium
FY24 COMMODITIES: LITHIUM MT MARION WODGINA BALD HILL Shipped Shipped Shipped 218k dmt SC6 eq1 201k dmt SC6 eq1 67k dmt SC6 eq 46% pcp 41% pcp FOB Cost FOB Cost FOB Cost US$498/dmt SC6 eq2 US$642/dmt SC6 eq2 US$851/dmt SC6 eq2 Commenced underground Sold 24.0kt Finalised acquisition exploration decli
Slide 32: Lithium Priorities
LITHIUM PRIORITIES PLANT OPTIMISATION ALIGN PRODUCTION TO MARKET RESOURCE DEFINITION & GROWTH Run two trains at Wodgina Mt Marion recoveries Decision on T3 operation and T4 Expand Bald Hill Resource Studying flotation plant options FID subject to market conditions to underpin growth options Mt Mario
Slide 33: Goldfields Consolidation
GOLDFIELDS CONSOLIDATION Strong presence in one of the world’s most prospective lithium regions Hub and spoke strategy Acquired lithium rights – 1,900km2 Leverage Mt Marion and Bald Hill infrastructure Port of Esperance FY24 FULL YEAR RESULTS | 33
Slide 34: Energy
ENERGY Further success across our natural gas exploration program in FY24 PERTH BASIN | 7,300km2 landholding over 10 tenements • Drilled three exploration wells across two tenements • Lockyer and North Erregulla: two large gas fields and oil: Highest average gas flow rate in Perth Basin Medium to li
Slide 35: Forward 12-Month Outlook
FORWARD 12-MONTH OUTLOOK OUTLOOK MINING SERVICES & IRON ORE INFRASTRUCTURE 30 Iron Ore Shipments (M wmt) Contracted tonnes (Mwmt) 350 300 25 250 20 200 15 18 ONSLOW IRON 150 10 Ramping to 35Mtpa – 100 supports rapid de-levering 5 50 and mining services growth - - FY24 FY25 guidance FY24 FY25 guidanc
Slide 36: Questions?
FY24 FULL YEAR RESULTS QUESTIONS?
Slide 37: Appendix
FY24 FULL YEAR RESULTS APPENDIX
Slide 38: Company Snapshot
COMPANY SNAPSHOT MINING SERVICES Leading pit-to-ship mining services provider ENGINEERING AND CONSTRUCTION Operating 25 years — experienced in-house team LITHIUM Top five global lithium supplier1 IRON ORE Top five Australian iron ore producer2 ENERGY Significant onshore natural gas discoveries 1. Ba
Slide 39: Reconciliation of Non-IFRS Information
FY24 RECONCILIATION OF NON-IFRS INFORMATION FY23 FY24 RECONCILIATION OF NON-IFRS FINANCIAL INFORMATION ($ M) Tax (expense) Tax (expense) PBT1 NPAT2 PBT1 NPAT2 /benefit2 /benefit2 Underlying results 1,110 (341) 769 225 (67) 158 Items excluded from underlying results1: Impairment charges: iron ore ope
Slide 40: FY24 Operating Segments
FY24 OPERATING SEGMENTS FY23 FY23 Underlying FY23 FY24 FY24 Underlying FY24 OPERATING Revenue Margin Revenue Margin ($M) EBITDA EBITDA SEGMENTS Mining Services1 2,563 484 19% 3,380 550 16% Iron Ore2 2,147 185 9% 2,578 394 15% • Mining Services revenue growth driven by increased volumes including rec
Slide 41: Mining Services Performance
MINING SERVICES PERFORMANCE Mining Services Production1 Revenue3,4 by Commodity 160 2.5 146 138 139 140 128 130 125 Production volumes (M wmt) 124 2.0 EBITDA per Tonne ($/wmt) 120 110 110 100 100 1.5 80 70 57 1.0 60 40 0.5 20 - - 1H19 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24 2H24 Production
Slide 42: Iron Ore Yilgarn Hub
IRON ORE YILGARN HUB (100% attributable basis, UNITS 1H23 2H23 FY23 1H24 2H24 FY24 YILGARN unless otherwise indicated) TMM Mwmt 20.5 17.3 37.8 16.4 14.4 30.8 HUB Ore mined Produced kwmt kwmt 3,883 4,182 4,102 4,052 7,985 8,234 3,673 3,956 3,117 3,538 6,790 7,494 • 7.6Mt exported, 28% lump Shipped kw
Slide 43: Iron Ore Pilbara Hub
PILBARA HUB (100% attributable basis, UNITS 1H23 2H23 FY23 1H24 2H24 FY24 IRON ORE PILBARA unless otherwise indicated) TMM Mwmt 19.6 19.7 39.3 21.4 17.2 38.6 Ore mined Produced kwmt kwmt 5,394 6,212 5,274 5,425 10,668 11,637 5,277 5,307 4,478 4,229 9,755 9,536 HUB Shipped kwmt 5,098 4,742 9,840 4,98
Slide 44: Lithium Mt Marion
LITHIUM MT MARION1 (50% attributable basis, unless otherwise indicated) UNITS 1H23 2H23 FY23 1H24 2H24 FY24 MT MARION TMM (100% basis) Ore mined (100% basis) Mwmt kdmt 23.8 971 21.8 1,152 45.6 2,122 24.6 2,048 20.4 1,792 45.0 3,840 Produced kdmt 115 119 234 147 181 328 • Commenced underground Shippe
Slide 45: Lithium Wodgina
WODGINA1 (50% attributable basis from 18 October 2023, unless otherwise indicated) UNITS 1H23 2H23 FY23 1H24 2H24 FY24 LITHIUM TMM (100% basis) Ore mined (100% basis) Mwmt kdmt 4.6 1,519 7.6 1,447 12.2 2,966 24.2 1,910 24.1 2,453 48.3 4,363 WODGINA Produced kdmt 62 86 148 101 111 212 Shipped - total
Slide 46: Lithium Wodgina Battery Chemicals
WODGINA1 (Attributable basis, unless otherwise indicated) Units 1H23 2H23 FY23 1H24 2H24 FY24 LITHIUM Conversion rate Produced x t 7.4 4,027 7.6 7,470 7.5 11,497 7.7 11,592 7.7 6,792 7.7 18,384 WODGINA Sold t 2,290 4,996 7,286 10,747 13,249 23,996 Lithium Battery Chemical sales Lithium Battery Chemi
Slide 47: Energy Gas Exploration
ENERGY GAS EXPLORATION Average stabalised Well Net pay Porosity flow rate Lockyer Deep-1 32m 15% 102 MMcsf/day Natural gas discoveries North Erregulla Deep-1 33m 16% 79 MMcsf/day Future Lockyer-3 11m 13% testing Lockyer-5 (ST1) 27m 18% 104 MMcsf/day discovery North Erregulla-2 Oil • Sweet medium to
Slide 48: Glossary of Terms
GLOSSARY OF TERMS 1H, 2H, FY First half, second half, full year LTIFR Lost time injury frequency rate as a 12-month rolling average $ Australian dollar M Million US$ United States dollar Net debt / (cash) Gross debt less cash and cash equivalents bn Billion pcp Prior corresponding period CAGR Compou
Slide 49: Office
OFFICE: 20 Walters Drive, Osborne Park, WA 6017 POSTAL: Locked Bag 13, Osborne Park DC, WA 6916 P +61 8 9329 3600 www.mineralresources.com.au