Mineral Resources Limited · ASX:MIN
Mineral Resources — JP Morgan Global High Yield Conference 2021
26 slides from Mineral Resources's conference presentation, Mar 2, 2021
Slide 1: ASX Announcement: JP Morgan Global High Yield Conference Presentation
ASX ANNOUNCEMENT 02 March 2021 JP Morgan - Global High Yield Conference Presentation The following presentation will be made by Chris Ellison, Managing Director of Mineral Resources Ltd on Tuesday 2 March 2021 to the JP Morgan Global High Yield Conference. A copy of the presentation has been provide
Slide 2: Global High Yield Conference
Global High Yield Conference JP Morgan 2 March 2021
Slide 3: Contents
01 Introduction to Mineral Resources 3 02 Recent Highlights 4 03 Our Performance 5 CONTENTS 04 Financial Results 11 05 Future Direction 15 06 Supplementary Information 23 2
Slide 4: Our Business
OUR BUSINESS World’s largest crushing contractor Leading pit-to-port mining services provider World’s top 5 lithium miner with joint ownership of the largest hard rock lithium deposit Australia’s 5th largest iron ore producer Major holder of exploration permits in Perth Basin’s highly prospective ga
Slide 5: Recent Highlights
RECENT HIGHLIGHTS Mining Services • Remained COVID and LTI free • Predictable EBITDA margins • Four plants commissioned, >38Mtpa in past 12 months • Improved safety performance • Completed 15Mtpa NextGen2 plant • Increased production • Lowered carbon emissions intensity Iron Ore • Jan to Dec 2020 sh
Slide 6: 1H21 Sustainability Performance
1H21 SUSTAINABILITY PERFORMANCE Injury Frequency Rates 14.52 Per million hours worked 1.40 2.75 0.00 Lost Total Injury Frequency 14.00 TRIFR1 Frequency Rate (TRIFR) LTI1 Total Recordable Injury TRIFR 1.20 12.00 Rate (LTRIFR) 1.00 16% improvement2 10.00 8.00 7.15 0.80 5.99 6.00 4.86 0.60 3.99 3.29 3,
Slide 7: 1H21 Financial Performance
1H21 FINANCIAL PERFORMANCE ↑55% on 1H20 A$1.5bn A$763m A$75m Revenue Underlying EBITDA Net Debt ↑55% on 1H20 ↑131% on 1H20 A$1.1bn A$516m Cash Operating Cash Flow 6
Slide 8: Mining Services Performance
MINING SERVICES PERFORMANCE Mining services production-related contract tonnes1 Mining services less construction EBITDA3 CAGR 20%2 1. Contract tonnes include production-related Ore Mined, Crushed, Processed and other mining services where MRL owns the underlying assets delivering the service. 2. CA
Slide 9: 1H21 Commodities Performance
1H21 COMMODITIES PERFORMANCE Yilgarn Hub Utah Point Hub Mt Marion Wodgina Kemerton Iron Ore Iron Ore Spodumene Spodumene Lithium Hydroxide 5.6Mt produced 3.7Mt produced 262kdmt produced Care and maintenance Construction ongoing 5.0Mt shipped 2.9Mt shipped 203kdmt shipped Three 250ktpa trains 1,250 p
Slide 10: Delivering on Our Commitments
DELIVERING ON OUR COMMITMENTS COMMITMENTS WHAT WE SAID WHAT WE DID Grow mining services • Double mining services EBITDA in 3 years from CY19 baseline of A$293m • CY20 mining services EBITDA $422m (up 44%) ✓ • Completed construction of 750Ktpa Wodgina spodumene plant • Construct and commission Wodgin
Slide 11: Managing Risk
MANAGING RISK MATERIAL RISK THEME MATERIAL TOPIC WHAT WE ARE DOING MRL COVID-19 response: • Identified the risk – we purchased PCR testing units and operate the southern hemisphere’s largest private industry screening facilities – 100k tests completed Health and Safety • COVID-19 • Our focus is the
Slide 12: Revenue and Earnings
REVENUE AND EARNINGS Revenue ($m) Underlying EBITDA ($m) Underlying NPAT ($m) 3,000 1,400 700 2,500 1,200 600 1,000 500 2,000 800 400 1,500 600 300 1,000 400 200 500 200 100 0 0 0 FY17 FY18 FY19 FY20 CY20 FY17 FY18 FY19 FY20 CY20 FY17 FY18 FY19 FY20 CY20 1st Half 2nd Half 1st Half FY21 11
Slide 13: 1H21 Underlying EBITDA 1H20 to 1H21
1H21 UNDERLYING EBITDA 1H20 TO 1H21 $ million +26% 1. Iron Ore Price and Spodumene Price variances include the impact of changes in royalty costs. 12
Slide 14: Free Cashflow Generation
FREE CASHFLOW GENERATION Capex ($m) Operating Cash Flow1,2 Cumulative Free Cash ($m) Flow ($m)3,4 900 700 1,000 800 595 600 800 700 516 600 751 600 500 411 587 400 500 400 200 400 296 300 0 135 300 56 186 200 -200 200 100 100 -400 -520 0 0 -600 FY17 FY18 FY19 FY20 1H21 FY17 FY18 FY19 FY20 1H21 FY17
Slide 15: 1H21 Summary Balance Sheet
1H21 SUMMARY BALANCE SHEET Credit Metrics1 Units FY20 1H21 Debt Maturity Profile ($m)2 Cash and equivalents $m 1,522 1,113 1,000 $909m Total assets $m 4,631 4,732 900 (1,291) (1,188) 800 Debt $m 700 Total liabilities $m (2,335) (2,059) 600 Total equity $m 2,296 2,673 500 400 Net debt / (cash) $m (23
Slide 16: Future Direction
FUTURE DIRECTION MINERAL SQ RESOURCES
Slide 17: Growth Opportunities
GROWTH OPPORTUNITIES Mining Services Iron Ore Lithium Energy & Innovation • Currently commission 3 • Ramp up Utah Point Hub to • Mt Marion 450 - 475kdmt • Drill a 4.5km well in Perth crushing plants – 31Mtpa 14Mtpa Basin • Kemerton plant commissioning • Significant enquiries for • Ramp up Yilgarn Hu
Slide 18: Mining Services Next 5 Years
MINING SERVICES NEXT 5 YEARS • Develop and own supply chain infrastructure • Ports • Transhipping • Private haul roads • Innovative transport systems • Top quality, resort style, accommodation • Unlock stranded deposits • Enhance build, own, operate capability 17
Slide 19: Commodities Iron Ore Next 5 Years
COMMODITIES IRON ORE NEXT 5 YEARS Yilgarn Hub • Finalising 10 year mine plan • Bring on Parker Range and Mt Richardson Utah Point Hub • Develop 10 year mine plan • Ramp up Wonmunna • Develop Lamb Creek and Wedge Ashburton Hub • Targeting construction mid 2021 – 2 year build • 25-30Mtpa South West Cr
Slide 20: Commodities Lithium Next 3 Years
COMMODITIES LITHIUM NEXT 3 YEARS • Kemerton Lithium Hydroxide plant ramp up to full production 2022 • Evaluate additional opportunities to convert spodumene concentrate to lithium hydroxide • Optimistic that lithium will be a major contributor over the next 2 to 3 years 19
Slide 21: Our Energy Future: Net Zero by 2050
OUR ENERGY FUTURE NET ZERO BY 2050 • Provide long-term energy security to achieve lower cost energy and a reduced carbon footprint while generating 20% ROIC • Technology has advanced to the point where it makes economic sense to deploy capital to reduce emissions while ensuring our energy future • R
Slide 22: FY21 Guidance
FY21 GUIDANCE YILGARN HUB1 UTAH POINT HUB1 MT MARION2 WODGINA KEMERTON Commodity Iron ore Iron ore Spodumene Spodumene Lithium Hydroxide Ownership 100% 100% 50% 40% 40% Care & Exports 11.0 to 11.5 Mt 8.5 to 9.0 Mt 450 to 475 Kt Under construction maintenance 10 to 15% Lower Costs Similar to FY20 Sim
Slide 23: Any Questions?
ANY QUESTIONS? SS MINERAL RESOURCES
Slide 24: Glossary
GLOSSARY 1H, 2H, FY First half, second half, full year K Thousand $ Australian dollar M Million US$ United States dollar Net debt / (cash) Gross debt less cash and cash equivalents NPAT Net profit after tax CAGR Compound annual growth rate PBT Profit before tax CFR Cost and freight rate pcp Prior co
Slide 25: Disclaimer
DISCLAIMER This presentation has been prepared by Mineral Resources Limited (“MRL” or “the Company”) and should be read with the “[insert] for the half year ended 31 December 2020” announced on [insert date] 2021. This presentation should not be considered as an offer or invitation to subscribe for
Slide 26: Investor Relations
INVESTOR RELATIONS James Bruce Head of Investor Relations T: +61 8 9329 3706 E: james.bruce@mrl.com.au OFFICE: 1 Sleat Road, Applecross, WA 6153 POSTAL: PO Locked Bag 3, Canning Bridge LPO, Applecross, WA 6153 P +61 8 9329 3600 F +61 8 9329 3601 www.mrl.com.au
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