Mineral Resources Limited · ASX:MIN
Mineral Resources — H1 2009 Earnings Presentation
14 slides from Mineral Resources's earnings presentation, Feb 19, 2009
Slide 1: 2009 Interim Results: A Time of Opportunity
For personal use only An integrated supplier of goods and services to the Resources Sector 2009 INTERIM RESULTS “A TIME OF OPPORTUNITY” Peter Wade, Managing Director Bruce Goulds, Chief Financial Officer February 2009
Slide 2: PIHA, Crushing Services International, Process Mineral International
For personal use only PIHA Pipeline & site infrastructure specialist Crushing Services International Australia’s largest specialist crushing contractor Process Mineral International Minerals processing & marketing
Slide 3: Board of Directors and Senior Management
For personal use only Board of Directors ◦ Peter Wade (Executive Chairman & Managing Director) ◦ Chris Ellison (Executive Director) ◦ Joe Ricciardo (Non-Executive Director) ◦ Mark Dutton (Non-Executive Director) Senior Management ◦ Bob Gavranich (General Manager PIHA) ◦ Steve Wyatt (General Manager
Slide 4: Strong business performance across operations
For personal use only Strong business performance across operations Safety and performance record maintained Significant client recognition of value adding strength Stringent staff and cost management Crushing contracts maintain production targets New crushing operations on line Significant pipelini
Slide 5: Financial highlights and dividend
For personal use only NPAT of $23.364 million –an increase of 16.5% over Interim 2008 results 50% dividend payout policy confirmed – interim dividend of 7 cents per share Strong cash generation utilised for capital funding Interest cover 38 times Line of credit remains available for future anticipat
Slide 6: Revenue, NPAT and dividend variance
For personal use only Dec 2008 Dec 2007 Variance Actual Actual % Revenue 142.9 118.9 20.2% NPAT 23.36 20.06 16.5% Dividend 7 cents 6 cents 16.5%
Slide 7: Income statement to December 2008
For personal use only $AUD millions 6 months to Dec08 Revenue 142.89 EBITDA 42.78 Depreciation 8.66 EBIT 35.08 Interest 0.90 PBT 34.18 Tax Expense 10.82 NPAT 23.364 NPAT / Revenue 16.4% EPS (cents) 18.9
Slide 8: Balance Sheet Strength
BALANCE SHEET STRENGTH For personal use only $AUD millions Dec 2008 June $ % 2008 Change Change Total Assets 227.0 223.6 3.4 +2% Total Liabilities (97.0) (107.6) (10.6) -10% Net Assets 130.0 116.0 14.0 +12% Dec 2008 ROFE % [EBIT / Funds Employed] 54% ROE % [NPAT / Total Equity] 36% Interim fully fra
Slide 9: Cash Flow
CASH FLOW For personal use only $AUD millions 6 months to Dec 2008 SOURCES OF CASH EBITDA 42.8 USES OF CASH CAPEX 34.6 Net Interest Payments 0.0 Income Taxes Paid 14.5 Working Capital and Other 1.0 Dividends Paid 16.5 Other Financing Cashflow 3.1 REDUCTION IN CASH BALANCE 26.9
Slide 10: Operational Review
For personal use only OPERATIONAL REVIEW Business model robust across changing economic environment General contract operations growing solidly in niche pipelining areas; expansion into oil and gas works Crushing operations maintain production performance Continued company growth against background
Slide 11: A time of opportunity: strategy
For personal use only Take advantage of current market conditions to target future business – a time of opportunity. Enhance business through current cycle Manage the challenges of global economy Maintain commitment to a strong management and operating team Core business focused – cost and cash mana
Slide 12: Operational priorities
For personal use only Maintenance of world class safety performance Optimise profit focus by management of costs and product recovery Implementation of process upgrades to enhance product quality Expansion of pipelining and HDPE contracts Maintain status as low cost producer of manganese and iron or
Slide 13: Outlook for 2009
For personal use only Global economy and liquidity to remain weak through 2009 but the long term strong global demand for steel making commodities to remain Port and transport capacity critical for product supply and cost AUD to remain volatile against USD (in range to 75 cents) Windimurra operation
Slide 14: Market themes and opportunities
For personal use only China to take significant positions in Australian resource companies Distressed assets provide future corporate opportunities Gearing and debt levels critical measures of corporate performance Client/contractor partnerships demand value adding by both parties for success Port,