Om Holdings Ltd. · ASX:OMH
Om — Investor Presentation (November 2005)
46 slides from Om's investor presentation, Nov 11, 2005
Slide 1: OM Holdings Limited ASX cover letter
OM HOLDINGS LIMITED (ARBN 081 628 337) No. of Pages Lodged: 46 11 November 2005 Company Announcements Office Australian Stock Exchange Limited 4" Floor 20 Bridge Street SYDNEY NSW 20060 Dear Sir/Madam INVESTOR PRESENTATION — BOOTU CREEK MANGANESE PROJECT - SITE TOUR Please find attached a copy of a
Slide 2: Background Profile of OM Holdings Limited
BACKGROUND PROFILE OF OM HOLDINGS LIMITED OMH was listed on the ASX in March 1998 and has grown into a fully integrated miner, processor and trader of manganese product with operations in Australia, China and Singapore. Through its wholly owned subsidiary, Bootu Creek Resources Pty Ltd ("BCR"), OMH
Slide 3: OM Holdings Limited - An Integrated Manganese Producer
OM Holdings Limited An Integrated Manganese Producer ASX Code: OMH Website: www.omholdingsitd.com Bootu Creek Manganese Visit 7-9 November 2005
Slide 4: Disclaimer
Disclaimer is presentation may contain forward looking ~.. Statements that are subject to risk factors associated — . commodities businesses. It is believed th expectations reflected in these statements are reasonable but they may be affected by a variet variables and changes in underlying assumptio
Slide 5: Agenda
Ba -kground Strategy People _ >» Capital Structure . > Financial Performance es Markets ° Integrated Manganese § Business e Financials — Summary
Slide 6: Strategy
Strategy e Build an integrated manganes\ ‘business > Exploration. > Expansion option | ° ‘Service the rapidly growing Chine steel market — > ~Qinzhou expansion o » Add value at. Bootu Creek Mang
Slide 7: People
People : Executive ¢ Heng Siow Kwee (Finance Director) e Trevor Tennant . shdn:Exceutive . — e Yeo Wee Kiong (Chairman) — e Bill Mackenzie _
Slide 8: Capital Structure
Capital Structure | tgeyed Capital ae Beitucee : Strategic partners ~ Board/Management ~~ Top 20 Shareholders Market Capitalisation
Slide 9: Financial Performance
Financial Performance .. Track record of growth Net Profit After Tax : g 12 gs 10 6.2 £8 . Oo 4 2 6. gis = A 4 £44 “got o 4 e 24 G05 0.4 eg 4 we < “(@ Dec Half EB June Half Outstanding Half Year > ‘Revenue $151m, NPAT $6.7m_ ibutions from all operation:
Slide 10: The continuing positive impact of China
... The continuing positive impact of China 50% 45% 40% 35% 30% 25% % of total 20% 15% 10% 5% 0% China's Share of World Usage oes Copper —Aluminium Zinc —t Nickel ~~ Steel = Iron Ore (Trade) ett 7950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2019 ource jacquarie Bank ‘the main bas metal
Slide 11: Steel Production
Steel Production ...Production cuts elsewhere offsetting booming Chinese growth 820 - Monthly Crude steel prodution (annualised) + 350 800 | i — Rest of world 300 780 5 — China ' 760 | g | 250 < @ 740 4 é| E 720 4 | 200 EI 700 + + 150 680 5 660 100 2000 2001 2002 2003 2004 2005 -« -90%-of Mn consume
Slide 12: Chinese Steel Markets
Chinese Steel Markets ~ Reasons to be optimistic about steel _ the medium term: ~ @ Chinese government determined that ¢ will not be a major exporter in medium term - ° Industry capacity utilisation likely to _ higher than in past- 95% plus e Supply side more disciplined (in part d: concentration) a
Slide 13: Chinese Steel & Manganese
Steel Production (Millions Tonnes) Chinese Steel & Manganese ...Manganese imports into China expected to increase Year —#— Steel Production ~@—Mn Ore imports
Slide 14: Manganese Ore Pricing
Manganese Ore Pricing @ BN |W BU @ Forecast Period Source: Macquarie Bank
Slide 15: Agenda
Agenda 0B ckground -e Integrated Manganese Business - _» Bootu Creek Manganese | . > Qinzhou Ferro-Alloy Smelter > Singapore Marketing & Logistics Financials | e Summary
Slide 16: Value Chain
Value Chain ..Adding value from mi Third Party Mines eeegeeeees Chinese Ferro-Alloy : Smelters 400kt Mn Bootu Creek ; : Singapore Manganese aokt Ma Marketing & Logistics Qinzhou Ferro- Alloy Smelter
Slide 17: Project Development
. Project Development Bootu Creek Manganese ® Tennant Creek _ ‘“ ® Alice Springs Exploration - LU : AUSTRALIA Expansion Option Acquisition from GEMCO
Slide 18: Major Milestones
Major Milestones . Sep 2001 - e Oct 2001 - * Sep 2002 - Sep 2003 - ° Aug 2004 - Noy 2004 - Acquisition from Scriven - Exploration agreement with NL First drill hole IV with GEMCO (25%) 26, 000m drilling completed: Feasibility completed Regulatory approvals, Ss
Slide 19: Flow Sheet
Flow Sheet Open Pits -Shekuma «Go Go. -Chugga -Tourag ‘Processing Road Haulage —Muckaty Rail Darwin Plant : Siding Port
Slide 20: Construction Timetable
Construction Timetable Dec-04 --Mar-05 Jun-05 ©: Sep-05 - Dec-05 % Processing Facility Mine Development - |Contingency 39% 75% 0%. 05) AS000's eS a Mar-06 Complete 96% 400% 3,523 99%. 41,016 .. [Ming Offices/Lab 90% 136 ications 89% 148 Water Supply 100% 158 Rail Eéeitties 79% 219 Port Facilitios 83
Slide 21: Process Plant
Process Plant _@ Main critical path item e Major components in place > Drum plant pre-commissioned — Decem ° Delays in structural steel from. C @ Mobile crushing circuit > Interim solution e First production - March / April: 200: a Full rates within one-month:
Slide 22: Production/Logistics
Production/Logistics \r nualised rates: 550- 600, 000 e Shipping 4 Product mix: lump 75%, fines 25% hips per month @ 25,000 ton r tr
Slide 23: Major Contracts
Major Contracts Mining ~ Macmahon | Schedule of Processing Macmahon _| Labour / Plan Road Haulage Mitchell | Rail Haulage Freightlink | Rail haulage mn CFCLA Rail wagon rental Stockpile & Ship — | Patricks | Train unloading Loading. stockpile, shipl Darwin Port —_ | Port facilities Authority Site Se
Slide 24: Resources & Reserves
Resources & Reserves Lon ® ‘Resources “111m tonnes @ 28% Mn. -e Reserves >» Proved 1.35m tonnes @ 34% Mn 5 >». Probable 4.26m tonnes @ 24% Mn o "Life of Mine > 5 years based on reserve >» 7 years expected with upcoming hig) drilling > » Further extensions via resource — eM conversion/exploration Not
Slide 25: Exploration
Exploration ... Significant potential to add value e Significant exploration program - 2 exploration geologists required > Almost double ‘existing drilling. ° Objectives > Double resource / reserve base /é smine >C K ate expansion option |
Slide 26: Exploration
Exploration 8611308" 9 13451519 487
Slide 27: Expansion Option
| required Expansion Option ¢ 1 million tonne pa expansion > Expanded resource base — > dl digger / 2 trucks” : _» Larger drum or new module : _» Additional accommodation > Road, rail & port - expand capacity = e Increased production edium term option > Incremental cost
Slide 28: GEMCO Acquisition
GEMCO Acquisition ° Acquisition of GEMCO’ S$ 25% JV intere > US$10. Om on settlement tl > US$2.66m by 31 December 2006 _ » US$2.66m by 31 December 2007 e Agreement in principle > Detailed documentation to follow Funding a Equity placement A$20m_ > Subject to shareholder approv | ..Building on the st
Slide 29: Qinzhou Ferro-Alloy Smelter
Qinzhou Ferro-Alloy Smelter ° Operations. _e Competitive _ advantage — e Growth
Slide 30: Flow Sheet
Flow Sheet A Furnace Key Inputs : 16.5 MVA Cokes. ‘Silica. Mn Ore _ Furnace A _ Flux: 16.5 MVA ; Mn Slag Lime : Electric power | Furnace 3.5 MVA ‘ SiMn/HcFeMn product mix.variable depending up —e- SiMn/HeFeMn volume @ 45k toa, McFeMn @415k tpa
Slide 31: Operations
Operations _@ Capacity 60,000 tpa ferro alloy — 8 2005 production ramp up > Expect ~25,000t ~ >» Major maintenance > Power availabilty (hydro down du \drought )
Slide 32: Freight Differentials
Freight Differentials . Significant competitive advantage Ferro Alloy ~~ To To To South .| Japan| Shanghai Korea || US$/t.| US$/t . UuS$/t North China 25 N/A 19 South West 33 35 25 China Qinzhou a8 20 9 TARAN SOUTH KOREA ®oelling @ Shanghai @ Hong Kong
Slide 33: Growth
Growth e Planned capacity - end 2006 150,00 ferro alloy ° Shanghai Shenjia joint venture : _ > Shanghai Shenjia funds expansion . earns 30% e BCM input to increase to 150, 000 tpa e Strategic stake in Longli/Lang Fang. Qinzhou ferro-alloy businesses atl million tpa Mn ore — Meo > 500,000 tpa ferro a
Slide 34: New Value Chain
New Value Chain ..Adding value from mi Third Party Mines me gem Chinese Ferro-Alloy_ Smeiters , 250kt Min Bootu Creek : ae Singapore Manganese ~580kt Mn Marketing & j Logistics A50kt Min Qinzhou Ferro- Alloy Smelter
Slide 35: Singapore Marketing & Logistics
Singapore Marketing & Logistics Beijing a Shanghai @ Hong Kong . Operations
Slide 36: Objectives
Objectives e Create an integrated manganese bu =f 550-600k Mn ore production | S| > 400k Mn ore trading | - q > Supply Qinzhou and partners o Supply ~ 20% of China’ S Mn ore e ‘Capture margins | . > Logistics, marketing, distributi
Slide 37: Operations - Services provided
Operations 8 . Services provided A _® Shipping > Logistics. > Trade finance . _ » Market analysis / advice ° > Marketing network - _ » Head office - Singapore ~ » Two branches - Southern & Northern Chin > “Door to door” distribution centre — ~~ Beijing/Tianjin >) gents ~ India, Japan & Korea e Favou
Slide 38: Physicals, Cost Structure, Project Finance, Summary
> Physicals — > Cost Structure > Project Finance: ¢ Summary
Slide 39: Physicals
Physicals Manganese Product . Lump ~ Fines QINZHOU FERRO-ALLOY SMELTER Ferro Alloy TRADING Manganese .Ore Chrome Ore Manganese Chrome All CREEK MANGANESE PROJECT. Unit 0060's BCMs 0060's Tonnes % 000's Tonnes 000's Tonnes eee.) 0600's Tonnes. 6000's Tonnes 900's Tonnes. 000's Tonnes 6000's Tonnes Ac
Slide 40: Cost Structure - BCM Cash Operating Costs
Cost Structure - BCM 7 Cash Operating Costs Royalties FY. Administration _ & Sundry 10% Mining Port Facilities & 32% Loading 7% - Rail Haulage Processing 24% 15% Road Haulage 5% Sustain id
Slide 41: EBITDA
EBITDA > US$2.75 Mn unit @ 0.7500 e Manganese Price. _ » +/- US$0.10 | -e Exchange Rate | —& +/-1 cent e Diesel Fuel > US$2.50 Mn unit @ 0.7500
Slide 42: Project Finance
Project Finance @ Approved by CBA a _ Development Facility Quist _ Limited recourse to OMH DB © $20m OFS es $13m development 24 | . >» $7m ongoing working “8 ef __@ __ff I capital eae ee bee ee & Months Ended . “Hedging requirements “> 240% net USS exposure » Minimum-12 months - ecover in-place :
Slide 43: Balance Sheet
Balance Sheet 5% interest in Territory Tron. OMH retains iron ore marketing right > Limited recourse facility - Bootu Creek _. Manganese Vo capitalised post GEMCO- acquisition.
Slide 44: Summary
e@ ‘S ummary
Slide 45: Clear, focused strategy
& ear, focused strategy e Experienced, international tearr e Track record of strategic growth e° » Downstream value adding _ » Qinzhou Ferro-Alloy Smelter. — ws >} Singapore Marketing & Logistics — -e Bootu Creek Manganese ~ > Management plan in place for projec -. delivery : ~GEMCO acquisition — Si
Slide 46: OM Holdings Limited
OM Holdings Limited An Integrated Manganese Producer ASX Code: OMH Website: www.omholdingsitd.com Bootu Creek Manganese Visit 7-9 November 2005