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OM HOLDINGS LIMITED
Australia • China • Japan • Malaysia • Singapore • South Africa
September 2024 • 2024 HalfYear Results Investor Presentation • ASX:OMH | Bursa:OMH (5298)
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1H 2024 FINANCIAL HIGHLIGHTS
Cashflow from / | ||||
Revenue | Loan Repayment (1) | (used in) Operations | ||
US$308.4m | US$54.4m | US$69.4m | ||
1H 2023 US$319.7m | 1H 2023 US$18.6m | 1H 2023 (US$3.6m) |
Adj. EBITDA(2) | Profit att. to owners | Profit per share | ||
US$46.6m | US$12.8m | 1.67 US cents | ||
1H 2023 US$56.9m | 1H 2023 US$19.1m | 1H 2023 2.59 US cents |
- Loan Repayment includes the repayment of project financing and trade financing
- Adjusted EBITDA is defined as operating profit before depreciation and amortisation, net finance costs, and income tax. Adjusted EBITDA is not a uniformly defined measure and other companies in similar industries may calculate this measure differently. Consequently, the Group's presentation of Adjusted EBITDA may not be readily comparable to other companies' disclosures.
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MARKET REVIEW & FY24 PRODUCTION GUIDANCE
FeSi & SiMn Market Review | $5,000 | USD/mt |
$4,000 | 1H2024 FeSi: $1,259/ mt (-19.3%YoY) | |
1H2024 SiMn : $1,023/ mt (-1.1%YoY) | ||
- FeSi prices increasing driven by limited supply and $3,000
China's ongoing tax inspections. SiMn prices normalizing | $2,000 | |
after brief and sharp increase of Manganese ore costs | $1,000 | |
• FeSi closed at US$1,325/mt while SiMn closed at | Source: S&P Platts | |
$0 | ||
US$945/mt at the end of August | ||
FeSi Production Volume (kmt) | Exploration and Mining (Mn Ore) | |
53 - 63 | • Board approval for the restart of the UFP was obtained in November | |
2023. Production restart for the UFP remains targeted for Q4 2024. | ||
167 |
131 140 140 97
FY2020 | FY2021 | FY2022 | FY2023 | FY2024 |
Mn Alloy Production Volume(1) (kmt)
151-171
- Mine remains under care and maintenance with rehabilitation works progressed as planned, with a focus on repairing damaged landforms caused by the higher-than-expected rainfall.
Smelting (FeSi and Mn Alloy)
- 14 out of 16 furnaces have completed major maintenance. Remaining 2 FeSi furnaces to undergo major maintenance works in 2025.
238 | 264 | 217 | 294 | 159 | • The hot commissioning phase for the MetSi furnace has commenced in | |
July 2024 after completing fabrication works in Q1 2024. Full | ||||||
FY2020 FY2021 | FY2022 | FY2023 FY2024 | commercial production contingent on strategic view. |
- FY2019 - FY2021 OMQ + OM Sarawak production volume.
FY2023 Forecast purely OM Sarawak's production volume.
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RECORDED US$46.6M EBITDA IN 1H 2024
1H 2024 Revenue and EBITDA
Revenue and GP Margin | • | Lower | ore | volumes | traded | and | lower | ||||||||
(1) | $1,000 | 26.4% | 24.2% | 30% | average selling prices realized in 1H 2024 | ||||||||||
Revenue US$ million | |||||||||||||||
21.4% | 19.0% | 25% | despite | higher total | volumes | of | alloys | ||||||||
16.1% | 20% | GP Margin | traded | ||||||||||||
14.9% | |||||||||||||||
12.3% | |||||||||||||||
$500 | 15% | • Decrease in GP in line with lower revenue | |||||||||||||
10% | earned | ||||||||||||||
715 | 544 | 780 | 857 | 589 | 320 | 308 | 5% | Segment Breakdown | |||||||
$0 | 0% | ||||||||||||||
FY2019 FY2020 FY2021 FY2022 FY2023 1H2023 1H2024 | • Lower contribution from smelting segment | ||||||||||||||
with margins compressed due to | lower |
US$ million (1)
$200
$150
$100
$50 $0
-$50
Group Adjusted EBITDA (2)
US$56.9m
US$46.6m
FY2019 FY2020 FY2021 FY2022 FY2023 1H2023 1H2024
average selling prices, despite higher production and sales
- Higher contribution from trading segment driven by higher alloy volumes traded
- Mining segment under care and maintenance since end Jan 2022. Ultra Fines Plant (UFP) restart is underway and is progressing as planned
Mining Smelting Trading Associates D&A Others
- FY2019-FY2020USD Revenue and Adjusted EBITDA converted using in-house rate for the respective years for illustration purposes. Figures are on an approximate basis.
- Adjusted EBITDA is defined as operating profit before depreciation and amortisation, net finance costs, and income tax. Adjusted EBITDA is not a uniformly defined measure and other companies in similar industries may calculate this measure differently. Consequently, the Group's presentation of Adjusted EBITDA may not be readily comparable to other companies' disclosures.
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POSITIVE CASH POSITION MAINTAINED
Continue to focus on paying down debt
$400 | Total Debt | 2 | • | Repaid US$54.4 million comprising Sarawak project | |||||||||||
Gearing Ratio | finance loan and trade facilities | ||||||||||||||
$300 | • | ||||||||||||||
(1) | 1.14 | Capital structure on | continuous review, balancing | ||||||||||||
million | $200 | 0.93 | 0.89 | 1 | debt | and | organic | growth | with | minimal | capex | ||||
0.67 | 0.63 | 0.64 | spending in the near term | ||||||||||||
0.50 | |||||||||||||||
US$ | |||||||||||||||
$100 | • Majority of borrowings associated to Sarawak Project | ||||||||||||||
$0 | 0 | Financing, ring-fenced at asset level | |||||||||||||
FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 1H 2024 | Prudent Cash Management | ||||||||||||||
US$ million
$140
$120
$100
$80
$60
$40
$20
$0
Cash Flow Movements for 1H2024
(3.8) (68.3)
69.4
60.5 | 57.5 | ||||||
Dec-23 | Operating Investing Financing | Jun-24 | |||||
Cash Flow Activities | |||||||
- US$69.4 million net cash generated from operating activities partly due to timing differences between purchases and payments and more favourable supplier payment terms
- Minimal cash flow from investing activities with major maintenance works mostly completed in 2023
- Significant increase in cash outflow from financing activities due to higher loan repayment and interest paid
- Recorded cash and cash equivalent of US$57.5 million as at 30 June 2024
(1) FY2018-FY2020 USD Debt converted using in-house rate for the respective years for illustration purposes. Figures are on an approximate basis.
COMPANY SNAPSHOT
Balancing debt reduction with sustainable dividends
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Share Metrics
(as at 27th Aug 2024)
Issued Shares
(ex.Treasury Shares)
Share Price
52 weeks Low / High Market Capitalization
764.3 million shares
A$ 0.37 / RM1.22 A$ 0.36 / A$ 0.60 US$ 191.7 million(1)
2.00
1.50
1.00
0.50
0.00
Share Price Performance
ASX (AUD) | Bursa (MYR) | |
5.0
4.0
3.0
2.0
1.0
0.0
Debt | Total Borrowings | US$ 213.2 million |
(1H2024) | ||
Cash | Cash & Cash Equivalent | US$ 57.5 million |
(1H2024) | ||
Enterprise Value | US$ 347.3 million | |
Adj. EBITDA(2) | US$ 84.6 million | |
(trailing 12 months) | ||
Earnings | EPS | US 1.53 cents |
& Key | (trailing 12 months) | |
Ratios | EV : Adj. EBITDA | 4.11x |
Price Earning Ratio | 16.39x | |
Largest Shareholders (as at 27th August 2024)
Huang Gang | 13.52% |
Marc Chan, Amplewood Resources Ltd | 13.08% |
Low Ngee Tong | 8.99% |
Heng Siow Kwee | 8.61% |
- Figure converted using the FX assumption of AUD to USD: 0.6778 (2) Adjusted EBITDA is defined as operating profit before depreciation and amortisation, net finance costs, and income tax. Adjusted EBITDA is not a uniformly defined measure and other companies in similar industries may calculate this measure differently. Consequently, the Group's presentation of Adjusted EBITDA may not be readily comparable to other companies' disclosures.
OM HOLDINGS LIMITED
AUSTRALIA • CHINA • JAPAN • MALAYSIA • SINGAPORE • SOUTH AFRICA
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