Saudi Arabian Mining Co. · TADAWUL:1211
Saudi Arabian Mining — FY2023 Earnings Presentation
32 slides from Saudi Arabian Mining's earnings presentation, May 18, 2024
Slide 1: Saudi Arabian Mining Company (Ma'aden) Investor Presentation – FY and Q4-FY23 Results
Saudi Arabian Mining Company (Ma’aden) Investor Presentation – Full Year and Q4-FY23 Results
Slide 2: Disclaimer
DISCLAIMER This presentation contains statements that are, or may be deemed to be, forward looking statements, including statements about the beliefs and expectations of Saudi Arabian Mining Company (Ma’aden) (the "Company"). These statements are based on the Company's current plans, estimates and p
Slide 3: Presenters
PRESENTERS Bob Wilt Louis Irvine Faris Al Gahtani Chief Executive Officer Chief Financial Officer Investor Relations Director 3
Slide 4: Solid results backed by resilient operational performance
Solid results backed by resilient operational performance Highest ever Phosphate 9,099 KMT Revenue EBITDA production* SAR 29.27bn SAR 9.26bn World’s largest Record drilling exploration Net Profit1 EPS1 461 km program SAR 1.58bn SAR 0.43 accelerating Operational Operating Cash Flow Net Debt/EBITDA co
Slide 5: Prices materially off FY22 peak but stabilized in Q4-FY23
Prices materially off FY22 peak but stabilized in Q4-FY23 DAP (USD/Mt) Ammonia (USD/Mt) $1,040 $1,020 • Phosphate prices increased sharply in $940 Q4-FY23 $920 Q4 mainly driven by Chinese export $840 $566 $820 $740 $720 restrictions. Phosphate demand $640 $620 remained stable as key markets $520 Q4-
Slide 6: Further progress on our growth strategy
Further progress on our growth strategy Strategic Growth Pillars Operational Progress Record year of Phosphate production1 up 9% YoY2 to 9,099 KMT Phosphate 3 (Phase 1) Final Investment Decision Extending global fertilizer Expanding global reach in leadership and position as critical minerals throug
Slide 7: Driving transformation in our safety culture
Driving transformation in our safety culture Systems Culture Revise EHSS Management System (MHSEM) across the Initiate the EHSS assessment actions project and integrate them organization in accordance with the new Business Model with Ma’aden’s transformation program Numu Transitioning to SIF rates a
Slide 8: With sustainability an integral pillar of our growth
With sustainability an integral pillar of our growth Ultra-low carbon Carbon capture ammonia leader patent World's largest ultra-low Partnered with Metso and carbon ammonia exporter, thyssenkrupp Uhde to develop decarbonizing operations phosphogypsum processing plant and supply chains using Ma’aden’
Slide 9: We are empowering the next generation of mining leaders
We are empowering the next generation of mining leaders Female Participation Serving the community Investment in Education Onboarded first 100 students at The Girls School Of Excellence in Arar 1st Prize, Partnerships and 100M SAR invested to Collaborations – Arabia CSR collaborate with KFUPM to Awa
Slide 10: Financial Results
FINANCIAL RESULTS Louis Irvine Chief Financial Officer 10
Slide 11: Improved Q4 performance with operational efficiencies and higher prices
Improved Q4 performance with operational efficiencies and higher prices QoQ YoY Q4-FY23 Q3-FY23 FY23 FY22 (SAR million) +29% -27% Revenue 8,035 6,226 29,272 40,277 Highlights +95% -52% QoQ EBITDA1 3,151 1,616 9,264 19,397 • Higher commodity prices • Higher overall sales volumes +91% -49% Adj. EBITDA
Slide 12: YoY operating improvements offset lower prices
YoY operating improvements offset lower prices Highlights • Lower prices for all products except Gold • Record DAP sales volumes • Improved overall cash operating costs • Lower share of income from JVs due to lower prices • Higher exploration costs attributed to record drilling Market led Business l
Slide 13: Solid cash position maintained
Solid cash position maintained - D&A: SAR 5,169 - Finance cost: SAR 2,468 - Includes cash growth CAPEX of SAR - Early debt repayment: SAR - Finance charges accrued: SAR - Zakat: SAR 510 1,027 mainly relating to 3,000 2,347 - Severance: SAR 387 Mansourah-Massarah and - Share in net profit of JV: SAR
Slide 14: Continued deleveraging of balance sheet with strong liquidity levels
Continued deleveraging of balance sheet with strong liquidity levels Long-term Borrowing Cash & Cash Equiv. FY20 48.3 5.7 Highlights FY21 46.8 9.1 -23% FY22 41.2 16.4 • Net debt down by 12% -9% FY23 37.3 15.6 • Long-term borrowings down by SAR 3.9 billion • Net debt to EBITDA within guided range Net
Slide 15: Phosphate: Delivered record full year production
PHOSPHATE: Delivered record full year production Financial performance QoQ YoY (SAR million) Q4-FY23 Q3-FY23 FY23 FY22 Variance Variance Sales Highlights 4,715 3,246 +45% 17,417 26,723 -35% EBITDA 2,634 1,145 +130% 7,836 15,771 -50% • Record DAP sales and production volumes YoY • Higher revenue due
Slide 16: Phosphate: Higher volumes and lower operating costs partially offset softer pricing
PHOSPHATE: Higher volumes and lower operating costs partially offset softer pricing Highlights • Lower commodity prices YoY • Record volumes of fertilizers YoY • Lower raw material costs YoY & QoQ • Higher prices and volumes QoQ Phosphate EBITDA Bridge (QoQ) Market led Business led 6% EBITDA growth
Slide 17: Aluminium: Improved sales volumes and stable pricing QoQ
ALUMINIUM: Improved sales volumes and stable pricing QoQ Financial performance QoQ YoY Highlights (SAR million) Q4-FY23 Q3-FY23 FY23 FY22 Variance Variance Sales 2,401 2,152 +12% 8,810 11,280 -22% • Higher sales volumes of all products QoQ EBITDA 326 286 +14% 678 2,936 -77% • Stable price environmen
Slide 18: Aluminium: Softer commodity prices and one-offs
ALUMINIUM: Softer commodity prices and one-offs Highlights • Lower commodity prices YoY • Lower primary aluminium and FRP volumes YoY • One-off industrial utilities and pot relining costs YoY • Improved raw material costs YoY and QoQ • Higher sales volumes of all products QoQ Aluminium EBITDA Bridge
Slide 19: Base Metals and New Minerals: Mansourah-Massarah completed commissioning
BASE METALS AND NEW MINERALS: Mansourah-Massarah completed commissioning with overall higher volumes Financial performance QoQ YoY (SAR million) Q4-FY23 Q3-FY23 FY23 FY22 Variance Variance Sales 897 812 +11% 2,987 2,252 +33% Highlights EBITDA 238 476 -50% 1,501 1,224 +23% • MM final commissioning co
Slide 20: Base Metals and New Minerals: Higher production and realized price
BASE METALS AND NEW MINERALS: Higher production and realized price delivered solid performance Highlights • Gold prices maintain up trend YoY and QoQ • Higher production YoY and QoQ • Higher costs associated with higher volumes and exploration BMNM EBITDA Bridge (QoQ) Market led Business led *all ot
Slide 21: Outlook
OUTLOOK Bob Wilt Chief Executive Officer MFC 21
Slide 22: Optimizing capital and resources for future growth
Optimizing capital and resources for future growth 2024 2026 2027 2029 Mansourah-Massarah Phosphate 3 Ar Rjum Mahd Ad Dhahab Expansion 250Koz p.a. 3M tons p.a. (1.5M per phase) ≈ 200Koz p.a. ≈ 200Koz p.a. Final commissioning completed in Q4-FY23 Phase 1 – 2026 Aluminium • • Commercial production com
Slide 23: Exploring Saudi Arabia's extensive mineral reserves
Exploring Saudi Arabia’s extensive mineral reserves Ambitious, world-leading exploration program to unlock the mineral endowment of the Kingdom Accelerating drilling activities Adding new gold resources JV 140+ 461 1.05 3.5 (50%) (50%) km km Moz Moz drilled in Q4-FY23 drilled in FY23 gold resource g
Slide 24: Production and capex guidance for 2024
Production and capex guidance for 2024 PRODUCTION FORECAST 2024 CAPEX GUIDANCE* Lower Upper Lower Upper DAP Equivalent KMT 5,500 5,800 Sustaining CAPEX SAR (mn) 2,500 3,000 Ammonia KMT 3,200 3,400 Growth CAPEX SAR (mn) 5,600 6,600 Alumina KMT 1,600 1,800 *Cash CAPEX; Excludes exploration and technic
Slide 25: Positive 2024 outlook with stable core markets
Positive 2024 outlook with stable core markets Markets Ma’aden Positioning Ammonia Phosphates • Improved demand due to fertilizer production recovery • Expected supply returning to market as global operational • Leading production capabilities issues resolve • First quartile cost position Granulated
Slide 26: Q&A
Q&A Bob Wilt Louis Irvine Chief Executive Officer Chief Financial Officer 26
Slide 27: Thank you
THANK YOU Stay Informed: Download MA’ADEN IR App Reach us at: [email protected] 27
Slide 28: Appendix
Appendix MAADEN @ Galop 28
Slide 29: Strategic investment in Vale Base Metals
Strategic investment in Vale Base Metals Leveraging global partnerships in metals and minerals of the future (51%) Manara Minerals Investment Company (Manara) JV • JV between PIF (49%) and Ma’aden (51%) 10% stake Base Metals • Invest in global mining assets with a shared-risk approach (49%) • Essent
Slide 30: Capital allocation framework
Capital allocation framework Strategically deploying and investing capital for long-term sustainable growth Alignment with Vision 2030 Strengthen KSA’s presence in the global supply chain, contribute to economic diversification and growth, and solidify its position in the metals of the future Commit
Slide 31: Special items and one-offs
Special items and one-offs Breakdown of special items in EBITDA and Net Profit (adjusted) SAR (million) Q1-FY23 Q2-FY23 Q3-FY23 Q4-FY23 FY23 SAR (million) Q1-FY23 Q2-FY23 Q3-FY23 Q4-FY23 FY23 Revenue 8,045 6,966 6,226 8,035 29,272 Revenue 8,045 6,966 6,226 8,035 29,272 EBITDA 2,277 2,219 1,616 3,151
Slide 32: Equity accounted joint ventures
Equity accounted joint ventures Breakdown of share of profit from JVs that are equity accounted SAR (million) Q1-FY23 Q2-FY23 Q3-FY23 Q4-FY23 FY23 Manara (Manara Minerals Investment Company) -- -- -9 -11 -20 Ma’aden IE Electric (Ma’aden Ivanhoe Electric Exploration and Development Limited Company) -
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