Mlg Oz Ltd · ASX:MLG
Mlg Oz — IPO Roadshow (May 2021)
33 slides from Mlg Oz's IPO roadshow presentation, May 4, 2021
Slide 1: MLG Oz Limited ASX Listing Presentation
MLG Oz Limited (ASX: MLG) ASX Listing Presentation For personal use only MAY 2021
Slide 2: Disclaimer
Disclaimer Not for release to US wire services or distribution in the United States For personal use only IMPORTANT: You must read the following before continuing. Summary information This presentation contains summary information about MLG Oz Limited ACN 102 642 366 (MLG or Company) and its subsidi
Slide 3: Disclaimer: Past performance and risks
Disclaimer Past performance and risks For personal use only The operating and historical financial information given in this presentation is given for illustrative purposes only and is not (and should not be relied upon as) an indication of the Company's views on its future performance or condition.
Slide 4: Introduction to MLG
For personal use only Introduction to MLG A significant provider of integrated logistics supply chain services to the Australian mining and civil infrastructure industries
Slide 5: MLG's operating history
MLG’s operating history MLG integrated service offering, combined with its strategic assets, has resulted in expansion to 29 sites For personal use only Company Timeline Customer sites MLG founded by Murray Leahy 2002 Company sites First contract secured providing silica mining and haulage services
Slide 6: Vertically integrated service offering
Vertically integrated service offering MLG delivers integrated production support services to embed MLG into customer operations For personal use only C o n st r u c t i o n Site Services Crushing and Export Materials and B u l k H a u l a ge a n d C i v i l Wo r ks Screening Logistics Quarries • St
Slide 7: Corporate structure
Corporate structure Successful IPO raising $70.7m at $1.00 per share. Murray Leahy will continue to hold ~50.1% of MLG post IPO. For personal use only Capital Structure Details MLG shareholders1 No (m) % ASX Code MLG Murray Leahy 73.0 50.1% MLG Employee Share Trust 2.0 1.4% Total number of Shares on
Slide 8: Investment Highlights
Investment Highlights A significant provider of integrated logistics supply chain services to the Australian mining and civil infrastructure industries For personal use only Significant provider to Long term relationships mining and civil Track record of growth Diversified and recurring and profitab
Slide 9: Committed management team and experienced Board
Committed management team and experienced Board Highly experienced management team with a proven track record of leading and growing MLG For personal use only • Murray is the • +45 years’ • +35 years’ • +20 years’ majority shareholder, experience in the experience in the experience in managing direc
Slide 10: Diversified revenue base
Diversified revenue base MLG’s revenue is diversified by commodity and service offering across a wide range of customers For personal use only Pro forma FY201 revenue Pro forma forecast FY21 revenue By client: By service offering: By service offering: By commodity: 10% 1 Pro forma adjustments offset
Slide 11: History of growth through customer and scope expansion
History of growth through customer and scope expansion Delivering significant revenue growth across a diversified, high-quality client base; with FY21 forecast to deliver $241.6m in revenue For personal use only 1 Forecast Circa $10m $241.6m revenue FY21 revenue 2002 2011 2012 2013 2014 2015 2016 20
Slide 12: A reputation for project delivery
A reputation for project delivery MLG’s ability to expand its offering tailored to the needs of a particular client has historically provided a competitive advantage, enabling the Company to expand its scope and to secure contract renewals For personal use only Project: Agnew Project: St Ives Projec
Slide 13: Business Overview
For personal use only Business Overview Short to medium term contracts underpinned by long term client relationships built over 20 years of operations
Slide 14: The MLG platform
The MLG platform MLG is a significant provider of key mine site and logistics services to the Australian mining and civil infrastructure industries For personal use only Core mining operations Mine plan / mining Processing Resource extension Product sales Rehabilitation BOO fixed + Esperance port St
Slide 15: Contract structure summary
Contract structure summary MLG’s contracts are typically based on a volume or hourly rate metric – MLG builds in contractual flexibility to cater to each client For personal use only MLG contract structure build up Overview of MLG’s contract structuring methodology • MLG’s service contracts are base
Slide 16: High quality customer base
High quality customer base MLG’s customer base comprises high quality clients who operate low-cost, long-life mining operations – providing resilience against commodity price volatility For personal use only Gold Projects – All-in sustaining cost (AISC) Nickel – C1 cost Iron ore – C1 cost 2,500 8 20
Slide 17: Fleet overview
Fleet overview MLG has a well-maintained modern fleet of circa 925 heavy vehicles and support equipment For personal use only Overview of fleet Approximate average age of fleet Approximate Asset type Number average age (years) Trucks 110 7.3 Truck Trailers & Dollies Loaders & Trailers & Dollies 415
Slide 18: Maintenance philosophy
Maintenance philosophy MLG prides itself on having a culture of proactive maintenance to drive reliability of service and better financial and safety outcomes for MLG and its clients For personal use only Trucks ⚫ 19 dedicated workshop facilities Mandatory KM’s, Tonnage, ⚫ Located on or close to cli
Slide 19: Ingrained safety culture
Ingrained safety culture MLG’s focus on delivering superior safety performance is a key selling point to new customers and workforce personnel For personal use only Proactive health and safety Historical safety statistics1 • MLG has a strong focus on conducting its operations in a way that has a zer
Slide 20: Financial Information
For personal use only Financial Information Sustained historical revenue growth over many years with a disciplined approach to capital reinvestment
Slide 21: Financial performance
Financial performance MLG has a demonstrated track record of organic growth and profitability – this is forecast to continue through FY21 For personal use only Pro forma1 revenue 300 FY20 significantly impacted by COVID-19 Pandemic and IPO preparations 250 241 • Second half of FY20 experienced mater
Slide 22: Income statement
Income statement MLG is forecasting 18% pro forma revenue growth and 67% pro forma EBITDA growth in FY21 underpinned by commencement of Fortescue crushing contracts and growth with existing and new clients in gold Pro forma1 historical and forecast income statement For personal use only Pro forma1 h
Slide 23: Growth and financial metrics
Growth and financial metrics Ability to win new contracts and expand existing scopes in the mine site services revenue stream has been the primary driver of historical growth Pro forma1 - Revenue Growth and key metrics For personal use only 300 Pro Forma1 Pro Forma1 Historicals Forecast 250 4 As at
Slide 24: Cashflow and Capital expenditure
Cashflow and Capital expenditure Strong cash flow conversion has allowed MLG to organically fund growth Pro forma1 cash flow summary For personal use only • MLG has been operating cash flow positive across the historical period, Pro forma1 allowing the business to cover the Pro Forma1 Historical For
Slide 25: Balance Sheet
Balance Sheet Net debt position to be materially reduced with IPO proceeds to fund continued growth Pro forma1 balance sheet For personal use only • MLG’s Pro Forma Net Debt position (as at Statutory Pro Forma 31 December 2020) will be reduced by $’000 Historical Impact Repayment Historical $44.8m t
Slide 26: Dividend Policy
Dividend Policy Subject to future business conditions, the MLG Board expects to pay future dividends in the range of 30% to 50% of NPAT For personal use only Summary • The payment of dividends by MLG will be undertaken at the discretion of the Directors and will be a function of a range of factors,
Slide 27: Growth Strategy
For personal use only Growth Strategy Robust industry dynamics driving growth from existing clients with growing demand for greater ore movements
Slide 28: Exposure to key thematics
Exposure to key thematics MLG is leveraged to the trends of consolidation, optimisation and declining ore grades For personal use only Key themes Recent WA M&A mining transactions • WA gold producers creating ‘hubs’ around existing milling infrastructure and commonly able to target deposits within 1
Slide 29: Increasing logistical requirements
Increasing logistical requirements Recent bolt-in transactions and mergers in the goldfields create new logistical requirements For personal use only Northern Star logistics Ramelius Resources logistics Source: Northern Star and Saracen merger presentation dated 6 October 2020. Source: Ramelius inve
Slide 30: WA Nickel Opportunities
WA Nickel Opportunities Battery metals have created renewed opportunities for nickel in WA For personal use only Select Western Australian nickel operations and linkages with BHP Nickel West Western Australian nickel assets (non-exhaustive) Asset Owner Location Ore Body Status Exploration & Julimar
Slide 31: Strong pipeline of potential growth opportunities
Strong pipeline of potential growth opportunities MLG has identified and is actively pursuing a range of potential growth initiatives For personal use only Further contract wins Expanded service offering Pursuit of strategic assets • Utilise differentiated business capability to • MLGs growth to dat
Slide 32: Outlook
For personal use only Outlook
Slide 33: Conclusion
Conclusion MLG’s directors and its senior management believes that MLG represents an attractive opportunity to gain exposure to an expanding logistics and mine site services business with a diversified customer base, extensive fleet and established market credibility For personal use only Strong mar