Mineral Resources Limited · ASX:MIN
Mineral Resources — H1 FY2008 Earnings Presentation
28 slides from Mineral Resources's earnings presentation, Feb 21, 2008
Slide 1: 2008 Interim Results: Continuing to Grow
Mineral For personal use only Resources Limited An integrated supplier of goods and services to the Resources Sector 2008 Interim Results “Continuing to Grow” Peter Wade, Managing Director February 21, 2008 Bruce Goulds, Chief Financial Officer Page 1
Slide 2: Consolidated Group Structure
Consolidated Group Structure For personal use only Mineral Resources Limited ACN 118 549 910 “An integrated supplier of goods and services to the Resource sector” Page 2
Slide 3: Board and Management
Board and Management For personal use only Mineral Resources Limited Board Michael Kiernan – Non-Executive Chairman Joe Ricciardo – Non-Executive Director Mark Dutton – Non-Executive Director Chris Ellison – Executive Director Peter Wade – Managing Director PIHA CSI PMI Finance Bob Gavranich Steve W
Slide 4: About Mineral Resources Limited
About Mineral Resources Limited For personal use only • Leading integrated mining services and processing company • Formed through the consolidation of 3 associated, long established and successful operations • PIHA – manufacturing and contracting business involved in construction of pipelines and s
Slide 5: Agenda
Agenda For personal use only 1 Highlights 2 Financial Results and Analysis 3 Operational Review 4 Outlook Page 5
Slide 6: Highlights - Operational
Highlights - Operational For personal use only • Continuing growth in all business operations • Award of 10 year BOO contract for crushing and processing at Windimurra Vanadium project to commence operations in Q2 2008/09 • Annualised rate of 300,000 tonne manganese sales and 220,000 tonnes iron ore
Slide 7: PMI Loading Manganese at Port Hedland
For personal use only PMI Loading Manganese at Port Hedland Page 7
Slide 8: World Best Practice HSE Performance
World Best Practice HSE Performance For personal use only December, 2007 Number of Lost Time Injuries x 1,000,000 Number of Hours Worked 20 18 16 Lost Time12 Injury Frequency 8 Ratio (LTIFR) 3 4 1 0 0 0 PMI CSI PIHA MRL Ind Avg Page 8
Slide 9: PIHA Fast Fusion welding machine
For personal use only PIHA Fast Fusion welding machine Page 9
Slide 10: Highlights - Financial
Highlights - Financial For personal use only • Strong earnings growth • Half-year NPAT of $20.06 million • Full year 2007/08 forecast NPAT $40.4 million (no seasonality) • Positive cash position (net of debt) with strong cash generation • Interest cover 67 times • Balance sheet strength to support g
Slide 11: Highlights – Financial: Comparison of Interim Results
Highlights – Financial For personal use only Comparison of Rolling 6 months Interim Results Actual Actual Actual Variance HY Dec06 HY Jun07 HY Dec07 HY Jun07 To $’000s $’000s $’000s HY Dec07 % Revenue 72,819 76,027 118,880 56% NPAT 7,322 12,845 20,060 56% Page 11
Slide 12: Agenda
Agenda For personal use only 1 Highlights 2 Financial Results and Analysis 3 Operational Review 4 Outlook Page 12
Slide 13: Financial Performance
Financial Performance For personal use only $AUD millions 6 months to December ‘07 Revenue 118.9 EBITDA 41.2 Depreciation 11.9 EBIT 29.3 Interest 0.4 PBT 28.8 Tax Expense 8.8 NPAT 20.0 EBIT / Revenue 24.7% EPS (cents) [half year] 16.5 Page 13
Slide 14: Balance Sheet Strength to Facilitate Growth
Balance Sheet Strength to Facilitate Growth For personal use only $AUD millions June 2007 December 2007 $ Change % Change Total Assets 157.7 187.3 29.6 18.8% Total Liabilities (82.0) (95.0) 13.0 15.9% Net Assets 75.7 92.3 16.6 21.9% Net Debt (inc. cash balances) (7.2) 4.2 11.4 Funds Employed 75.7 92
Slide 15: Strong Operational Cashflows
Strong Operational Cashflows For personal use only $AUD millions 6 months to December ‘07 EBITDA 41.2 CAPEX (net) (13.1) Net Interest Payments (0.4) Working Capital and Other (7.2) Net Operating and Investing Cashflow 20.5 Financing Cashflow (6.3) Total Increase in Cash 14.0 Page 15
Slide 16: Revenue Performance
Revenue Performance For personal use only 250 200 $million 150 100 50 0 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Forecast Actual Forecast Page 16
Slide 17: EBIT Performance
EBIT Performance For personal use only 60 50 40 $ million 30 20 10 0 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Forecast Actual Forecast Page 17
Slide 18: Agenda
Agenda For personal use only 1 Highlights 2 Financial Results and Analysis 3 Operational Review 4 Outlook Page 18
Slide 19: Operational Review of Interim Performance
Operational Review of For personal use only Interim 6 month Performance • Subsidiary business integration processing ahead of program. • Operations performing above forecast targets • Margin increases in manganese sales offset cost and shipping increases and stronger AUD • Business climate for resou
Slide 20: CSI Primary crusher
For personal use only CSI Primary crusher Page 20
Slide 21: Agenda
Agenda For personal use only 1 Highlights 2 Financial Results & Analysis 3 Operational Review 4 Outlook Page 21
Slide 22: Outlook - Market
Outlook - Market For personal use only • Continuing strong global demand for commodities • ‘China story’ to remain expansive in the long term and minimise impact of potential US recession • Exports constrained by port infrastructure issues; increased demurrage and shipping delays • Increased cost pr
Slide 23: Philippines drilling samples
For personal use only Philippines drilling samples Page 23
Slide 24: Outlook - Operational
Outlook - Operational For personal use only • Continuing focus on HSE quality performance to maintain world best practice • Finalisation of drilling and sampling for iron sands in Philippines • Construction and commissioning of Windimurra Vanadium plant • Commencement of manganese recovery operation
Slide 25: CSI operations
For personal use only CSI operations Page 25
Slide 26: Outlook - Corporate
Outlook - Corporate For personal use only • FY2008 results on target for forecast NPAT of $40.4 million • Balance sheet capable of supporting significant additional projects and acquisition initiatives • Level of debt to increase from expenditure on Windimurra project but supported by 10 year contra
Slide 27: PIHA Ocean outfall pipeline
For personal use only PIHA Ocean outfall pipeline Page 27
Slide 28: Outlook – Business Strategy
Outlook – Business Strategy “MORE OF THE SAME” For personal use only • Maintain core business focus • Add value to clients and shareholders • Maintain high quality Board, management and operating team • Grow profitability, reputation and share price • Acquisition of complementary, earnings accretive