Jupiter Mines Limited · ASX:JMS
Jupiter Mines — Investor Presentation (July 2019)
15 slides from Jupiter Mines's investor presentation, Jul 30, 2019
Slide 1: Investor Presentation
Investor Presentation 30 July – 1 August 2019
Slide 2: Disclaimer
Disclaimer IMPORTANT: Please read the following before continuing. This Presentation has been prepared by Jupiter Mines Limited ACN 105 991 740 (Jupiter or the Company) solely for information purposes. This Presentation has not been approved by any regulatory or supervisory authority. This Presentat
Slide 3: Key Investment Highlights
Key Investment Highlights ✓ Manganese is a mission critical feedstock to the global steel industry with no substitute ✓ Manganese supply facing challenges at a time of increased sources of demand ✓ One of the largest manganese exporters globally operating in the largest producing region ✓ Track reco
Slide 4: Introduction
Introduction Jupiter share price vs volume since listing Shareholders Shareholding (%) # of shares (m) Shares on issue: 1,959 million 0.40 250 Current share price: A$0.40 Stichting Pensioenfonds ABP 12.90% 253 Market capitalisation: A$784 million 0.35 200 Posco Australia1 6.89% 135 150 HJM Jupiter2
Slide 5: Manganese Market – Steel
Manganese Market – Steel ◼ Manganese is a critical and irreplaceable element in carbon steel production; increases both the strength and flexibility of steel ― Every tonne of steel requires 10-15kg of manganese alloy ― It cannot be substituted ◼ Global crude steel production increased from 1.73 bill
Slide 6: Manganese – Supply / Demand Dynamics
Manganese – Supply / Demand Dynamics Supply Manganese ore imports by jurisdiction¹ (Tonnes in millions) ◼ Chinese manganese ore (substantially lower grade) supply has fallen 25 significantly since 2016 due to environmental restrictions as well as depletion 20 ◼ Some of the major mines will be deplet
Slide 7: Manganese Market – EV Batteries
Manganese Market – EV Batteries ◼ Clean energy applications and use in batteries for electric vehicles are seen as a significant driver for future manganese consumption ◼ Manganese could potentially replace the traditional cobalt and nickel as the cathode in a lithium-ion battery ― Manganese is chea
Slide 8: Manganese Ore Index
Manganese Ore Index 37% Mn, FOB Port Elizabeth US$ per dmtu of contained metal 9.00 FY18 average manganese price = US$4.69 / dmtu FY19 average manganese price = US$6.00 / dmtu 8.00 Current spot manganese price (37% FOB PE) is US$4.83 / dmtu (22 Jul 2019) 7.00 6.00 5.00 Feasibility study price range
Slide 9: Tshipi at a Glance
Tshipi at a Glance Location Overview ◼ Jupiter Mines Limited (“Jupiter”) owns a 49.9% beneficial interest in the world class Tshipi Borwa Manganese Mine (“Tshipi”) located in the manganese rich Kalahari Manganese Field ◼ Jupiter has rights to market 49.9% of Tshipi production ◼ Tshipi is the largest
Slide 10: One of The Largest and Lowest Cost Manganese Exporters Globally
One of The Largest and Lowest Cost Manganese Exporters Globally Sea-borne Production by Mine (2018 estimate) (Million tonnes) 7 6 5 4 3 2 1 0 Gemco Nsuta Moanda Tshipi Nchwaning UMK Mamatwan Kudumane PGOK Azul (South32) (Ningxia Tianyuan) (Eramet) (Jupiter/Ntsimbintle) (Assmang) (UMK) (South32) (Kud
Slide 11: Track record of resource and production growth with further low cost expansion options
Track record of resource and production growth with further low cost expansion options Resource base evolution Production growth (100% basis) ◼ c.432 mt located in the Kalahari Manganese Field ◼ Track record of growth to nameplate capacity ◼ Shallow open-cast mine with a homogenous ore body ◼ Scope
Slide 12: World class infrastructure supports efficient and reliable access to market
World class infrastructure supports efficient and reliable access to market Infrastructure overview Efficient access to key infrastructure ◼ Vertical integration with captive power generation operating independently of the national grid ◼ Primary and secondary crushing capacity of 3.6mtpa ◼ Establis
Slide 13: Recognised and Established Product
Recognised and Established Product Manganese ore production by country 2017 – metric tonne units 7 ◼ Approximately 14 million mtu of seaborne ore in 2017 Millions 6 ◼ 6.7 million mtu from South Africa (approx. 50%) 5 - Tshipi has approx. 9% of seaborne market 4 ◼ Biggest single mine exporter from So
Slide 14: End Result
End Result ◼ Exceptional operating and financial performance at Tshipi 100% TSHIPI (Note: Jupiter 49.9%) FY19 LTM May 2019 ¹ Q1 FY20 Manganese ore sales Million tonnes 3.51 3.42 0.84 Revenue ² USDm ³ 638 591 141 EBITDA USDm ³ 426 390 93 Net Profit After Tax USDm ³ 277 254 61 37% manganese price (ave
Slide 15: The Investment Proposition
The Investment Proposition ◼ Crude steel and evolving battery material exposure on the Key Investment Statistics & Performance Ratios ¹ ASX Metric Jupiter ◼ Long life, low cost, large scale, debt free mine and company Current share price A$ $0.40 Options on Issue # Nil ◼ Strong cash generation capab