Mineral Resources Limited · ASX:MIN
Mineral Resources — Shareholder Meeting (November 2022)
38 slides from Mineral Resources's shareholder meeting presentation, Nov 17, 2022
Slide 1: 2022 AGM Presentation
17 November 2022 2022 AGM Presentation Mineral Resources Limited (ASX:MIN; MinRes) advises that Chair, James McClements, and Managing Director, Chris Ellison, are addressing shareholders at the Annual General Meeting (AGM) at 9:30am AWST today. The AGM can be viewed online using this link http://mee
Slide 2: 2022 Annual General Meeting
2022 ANNUAL GENERAL MEETING 17 NOVEMBER 2022 | ASX:MIN MINERAL RESOURCES LIMITED
Slide 3: I Am MinRes
ENVIRONMENTAL ADVISOR ARMY VETERAN AND MARINE BIOLOGIST INDEPENDENT NON-EXECUTIVE CHAIR CYCLIST MANAGING DIRECTOR FISHERMAN RECRUITMENT TEAM LEAD HOCKEY GOALKEEPER CHIEF FINANCIAL OFFICER AND COMPANY SECRETARY BLACK BELT AIKIDOIST SAFETY ADVISOR TRIATHLETE ELECTRICIAN GAMER CHIEF EXECUTIVE - MINING
Slide 4: Contents
CONTENTS I AM AN AUSTRALIAN SUCCESS STORY 05 I AM RESULTS DRIVEN 07 I AM GROWTH MINDED 10 I AM FUTURE FOCUSED 19 Jason Hampton | Site Manager, Crushing and Processing | Vans Shoe Collector MINERAL RESOURCES LIMITED ANNUAL GENERAL MEETING 2022 | 3
Slide 5: I Am a Fisherman
I AM A FISHERMAN Chris Ellison MNZM | Managing Director
Slide 6: I Am an Australian Success Story
I AM AN AUSTRALIAN SUCCESS STORY Celebrating 30 years
Slide 7: Growing Industry Leader
2022 GROWING $16 billion Market Cap INDUSTRY LEADER WORLD’S LARGEST CRUSHING CONTRACTOR LEADING PIT-TO-PORT MINING SERVICES PROVIDER WORLD TOP FIVE LITHIUM PRODUCER AUSTRALIAN TOP FIVE IRON ORE PRODUCER LARGEST LANDHOLDER OF GAS ACREAGE IN PERTH AND CARNARVON BASINS 2006 $100 million Market Cap MINE
Slide 8: I Am Results Driven
I AM RESULTS DRIVEN Delivering sustained returns
Slide 9: Track Record Snapshot
TRACK RETURN ON INVESTED CAPITAL AFTER TAX (ROIC) SINCE LISTING RECORD 60% 50% SNAPSHOT 40% 30% TSR GROWTH – 20% SECOND HIGHEST IN ASX 200 30% PA 10% 0% SINCE LISTING -10% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 UNDERLYING EBITDA S7.4 bn Annual ROIC 4yr Rollin
Slide 10: FY22 Performance
TRACK FY22 PERFORMANCE RECORD SNAPSHOT REVENUE OPERATING CASH FLOW TSR GROWTH – SECOND HIGHEST IN ASX 200 $3.4bn $344M 30% PA SINCE LISTING UNDERLYING EBITDA CASH UNDERLYING EBITDA S7.4 bn $1.0bn $2.4bn SINCE LISTING CAPEX US BOND NOTES A DECADE OF CONSISTENT DIVIDEND GROWTH 20% PA FULLY FRANKED $80
Slide 11: I Am Growth Minded
I AM GROWTH MINDED Structured for ongoing success
Slide 12: Corporate Shared Services
CHRIS ELLISON Managing Director +40 years experience 30 years with MinRes CORPORATE SHARED SERVICES MINERAL RESOURCES LIMITED ANNUAL GENERAL MEETING 2022 | 11
Slide 13: Corporate Shared Services
CHRIS ELLISON Managing Director +40 years experience 30 years with MinRes MIKE GREY JOSHUA THURLOW SHELLEY ROBERTSON CHRIS SOCCIO EGM – Energy CE – Mining Services CEO – Lithium CE – Iron Ore +35 years experience +20 years experience +20 years experience +20 years experience 9 years with MinRes 3 ye
Slide 14: Our Business Growth Is Driven by Our People
OUR BUSINESS GROWTH IS DRIVEN BY OUR PEOPLE. THEIR HEALTH, SAFETY AND WELLBEING REMAINS OUR TOP PRIORITY. Nicholas Bakker | Safety Advisor | Triathlete MINERAL RESOURCES LIMITED ANNUAL GENERAL MEETING 2022 | 13
Slide 15: Leading the Way People First
LEADING THE WAY PEOPLE FIRST HEAD OFFICE New standard for workplace wellness RESORT STYLE CAMPS Set to lead industry for remote workers HEALTH AND WELLNESS Health Centre and in-house professionals MINERAL RESOURCES LIMITED ANNUAL GENERAL MEETING 2022 | 14
Slide 16: Supporting a Diverse Workforce
SUPPORTING A DIVERSE WORKFORCE 5000+ Employees and contractors 21% Female representation 139 Graduates, Apprentices & Trainees Aboriginal & Torres Mary Markovic | Diversity and Inclusion Manager | Tasseographer 1.8% Strait Islander peoples representation MINERAL RESOURCES LIMITED ANNUAL GENERAL MEET
Slide 17: Keeping Our People Safe
KEEPING OUR PEOPLE SAFE INJURY FREQUENCY RATES (INJURIES PER MILLION HOURS WORKED) 10.00 1.00 0 Lost Time Injury Frequency Rates (LTIFR) 8.00 0.80 6.00 0.60 2.33 Total Recordable Injury LTIFR TRIFR Frequency Rate (TRIFR) 4.00 0.40 OVER Engaged psychological 7% support services 2.00 0.20 200+ Accredi
Slide 18: Supporting Local Communities
SUPPORTING LOCAL COMMUNITIES $397M Taxes and Royalties Paid 93% Australian Supplier Base 1.7bn WA Procurement Spend George Wan | Geographic Information Systems Officer | Bonsai Artist $5.8M Community Contributions MINERAL RESOURCES LIMITED ANNUAL GENERAL MEETING 2022 | 17
Slide 19: Decarbonising Our Operations
DECARBONISING Renewables OUR Fuel Mix Gas OPERATIONS Diesel KEY ACTIONS 50% reduction by 2035 • Established Board level Sustainability Committee Greenhouse Gas Emissions2 Power Generation • Reduce emissions by 50% by 20351 • Focus on alternative sources of energy Pit-to-Port Mining Equipment 2025 20
Slide 20: I Am Future Focused
I AM FUTURE FOCUSED Future direction
Slide 21: Future Focus
FUTURE FOCUS • Automate road trains • Double Mt Marion capacity • Continue Utah & Yilgarn production • Transition to greener energy • Commence transhipping • Commence Wodgina Train 3 • Develop Onslow Iron with an export • 8 appraisal and exploration wells Grow carbon fibre screening • Approve & cons
Slide 22: At the Heart of Our Business Is Mining Services
AT THE HEART OF OUR BUSINESS IS MINING SERVICES, OFFERING PREDICTABLE RETURNS. Mark Hughes | Employment Marketing Manager | 4WD and Camping YouTuber MINERAL RESOURCES LIMITED ANNUAL GENERAL MEETING 2022 | 21
Slide 23: Mining Services Planned Growth
MINING SERVICES PLANNED GROWTH VOLUME GROWTH 25% PA +65% VOLUME GROWTH FROM NEAR TERM MARGIN PER TONNE UP 14% MINRES OPERATED PROJECTS 600 500 Contract tonnes (Million wmt) 400 300 Mt Marion Onslow Wodgina expansion Iron 4-trains 200 30Mwmt 140Mwmt 9Mwmt 100 FY19 FY20 FY21 FY22 Future Growth Potenti
Slide 24: Our Appetite for Innovation Is Delivering Results
OUR APPETITE FOR Ne xtG e n Cru sh i n g J u mb o R oa d Tra in s INNOVATION IS DELIVERING RESULTS FOR OUR BUSINESS AND CLIENTS. Tra n sh ip p in g Ca rb on F ib re MINERAL RESOURCES LIMITED ANNUAL GENERAL MEETING 2022 | 23
Slide 25: Gas – Supports Our Transition to Net Zero
GAS – SUPPORTS OUR TRANSITION TO NET ZERO DEVELOPMENT TIMELINE Indicative Timelines – subject to approvals FY23 FY24 FY25 PERTH BASIN Two wells Three wells Planned production LOCKYER-DEEP PERTH BASIN One well Planned production RED GULLY CARNARVON Two wells BASIN
Slide 26: Battery-Grade Lithium Products Are Critical
BATTERY-GRADE LITHIUM PRODUCTS ARE CRITICAL TO A RENEWABLE ENERGY FUTURE AND SUPPORTING GLOBAL DECARBONISATION. Daney Helgadottir | Health Services Administrator | Global Backpacker MINERAL RESOURCES LIMITED ANNUAL GENERAL MEETING 2022 | 25
Slide 27: Global Demand Is Increasing
GLOBAL ELECTRIC VEHICLE SALES FORECAST1 2020 – 2030 3,000% % Growth (rebased) 2,500% GLOBAL 2,000% 1,500% DEMAND IS 1,000% INCREASING 500% THE WORLD’S APPETITE FOR ELECTRIC - VEHICLES IS OUTSTRIPPING SUPPLY. 2020 2022 2024 2026 2028 2030 China United States Europe Rest of world GLOBAL SPODUMENE CONC
Slide 28: Mt Marion Lithium
MT MARION LITHIUM RESOURCE 50Mt + Mineral Resource EXPLORATION 80% POTENTIAL remains unexplored DOUBLING 450ktpa à 900ktpa by early 2023 CAPACITY (Mixed grade spodumene) LITHIUM Potential for future HYDROXIDE downstream processing
Slide 29: Wodgina Lithium
WODGINA LITHIUM RESOURCE 250Mt + Mineral Resource CURRENT Trains 1 and 2 producing SC6 at nameplate 250ktpa CAPACITY each GROWTH Train 3 running by mid 2023 TRAJECTORY Train 4 footprint in place MinRes and Albemarle LITHIUM jointly assessing options HYDROXIDE for plant construction MinRes continues
Slide 30: 2025 Lithium Hydroxide Cost Curve
2025 LITHIUM HYDROXIDE COST CURVE1 100,000 Spot price = US$84,000/t LiOH Production Cost (US/t LiOH) 90,000 80,000 70,000 2025 Wood Mackenzie contract price forecast = US$58,000/t LiOH 60,000 INTEGRATED 50,000 PRODUCERS 40,000 30,000 LOWEST COST 20,000 10,000 0 0 50 100 150 200 250 300 350 400 Cumul
Slide 31: MinRes Is the Fifth-Largest Iron Ore Producer in Australia
SINCE PRODUCTION STARTED IN 2010, MINRES HAS BECOME THE FIFTH-LARGEST IRON ORE PRODUCER IN AUSTRALIA. Mandy Crowe | Executive Assistant | Sprinter MINERAL RESOURCES LIMITED ANNUAL GENERAL MEETING 2022 | 30
Slide 32: Pathway to Transform the Iron Ore Business
PATHWAY TO TRANSFORM THE IRON ORE BUSINESS MAGNETITE 15Mtpa PILBARA HUB2 20Mtpa ONSLOW IRON1 35Mtpa UTAH POINT 11Mtpa YILGARN 7Mtpa CURRENT IN EXECUTION POTENTIAL Sinead Commerford | Electrician, Crushing and Processing | Motocross Rider PROJECTS 1. 100% basis Onslow Iron – Project being developed w
Slide 33: Onslow Iron Project
ONSLOW IRON PROJECT TRANSFORMATIONAL, LOW COST, LONG LIFE AND SUSTAINABLE IRON ORE PROJECT WITH STRONG JOINT VENTURE PARTNERS $190M pa 35Mtpa in tax and royalties stage 1 capacity $3bn 30+ years total capital mine life expenditure Resort style A$40/t setting a new FIFO FOB cost ex royalties standard
Slide 34: Pilbara Hub Project
PILBARA HUB PROJECT JV with Hancock Shared access to Prospecting to develop Roy Hill Railway from SP3 berth at South West Creek Mulga Downs 20Mtpa Minimum 2-year approvals and 2.5 transport capacity year development
Slide 35: Our Business Has Set the Foundation for Its Greatest Opportunities
OUR BUSINESS HAS SET THE FOUNDATION FOR ITS GREATEST EVER OPPORTUNITIES. NOW, IT’S ALL ABOUT OUR PEOPLE. Shelley Robertson | Executive General Manager Energy | Decorated Hero MINERAL RESOURCES LIMITED ANNUAL GENERAL MEETING 2022 | 34
Slide 36: I Am Open to Questions
I AM OPEN TO QUESTIONS Question & Answer
Slide 37: Disclaimer
DISCLAIMER This presentation 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 to those securities. No agreement to subscribe for securities in the Company will be entered into
Slide 38: Investor Relations
INVESTOR RELATIONS Chris Chong Investor Relations Manager T: +61 8 9315 0213 E: chris.chong@mrl.com.au OFFICE: 20 Walters Drive, Osborne Park, WA 6017 POSTAL: Locked Bag 13, Osborne Park DC, WA 6916 P +61 8 9329 3600 F +61 8 9329 3601 www.mineralresources.com.au ASX:MIN
Mineral Resources — Shareholder Meeting (November 2022) on 6ix