Mineral Resources Limited · ASX:MIN
Mineral Resources — H1 FY2011 Earnings Presentation
22 slides from Mineral Resources's earnings presentation, Feb 17, 2011
Slide 1: 2011 Half Year Result
For personal use only 2011 Half Year Result Peter Wade, Executive Chairman Bruce Goulds, Chief Financial Officer February 2011
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Mineral Resources Limited (“MRL” or “the Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect
Slide 3: Agenda
Agenda For personal use only About Mineral Resources Highlights Operational performance Financial performance Strategy, issues and outlook Half Year Results | February 2011 3
Slide 4: Mineral Resources
Mineral Resources For personal use only Service Provider Minerals Producer Process Minerals Crushing Services PIHA Polaris Metals Mesa Minerals Minerals and base metals Australia’s largest specialist Pipeline, services, site Specialist Iron Ore (64% owned) processing, logistics, ship BOO crushing, s
Slide 5: Corporate & operational highlights
Corporate & operational highlights For personal use only Contracting operations – maintenance of existing contracts with sustainable growth in tonnages Execution of growth projects on target Substantial work in hand for pipeline business Substantial increase in commodity business tonnes and revenue
Slide 6: Update - operational targets 2011
Update - operational targets 2011 For personal use only Commence export of iron ore and manganese through Utah Point berth - completed Move towards production at Christmas Creek iron ore operation with BOO crushing contract – on target Develop Mt Marion lithium operation – on target Production at Ca
Slide 7: Financial highlights
Financial highlights For personal use only Record half year net profit $60.6 million, up 121% Fully franked interim dividend of 15.0 cents DRP to be introduced effective from record date for interim dividend Cash balance - $153 million Net cash position - $66 million NTA per share increased to 313 c
Slide 8: Safety - our number one value
For personal use only 0 2 4 6 8 10 12 14 16 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Half Year Results | February 2011 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 LTIFR Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Industry Average Safety - our number one value Mar-09 May-09 Jul-09 Sep-09 Nov-09 J
Slide 9: Export volumes
Export volumes For personal use only Commodity Half Year Full Year Increase in Volume Dec 2010 2009/10 annualised (‘000 tonnes) Actual Actual rate Iron Ore 1,301 875 +197% Manganese 224 428 +5% TOTAL 1,525 1,303 +134% Half Year Results | February 2011 9
Slide 10: Nicholas Downs manganese project
Nicholas Downs manganese project For personal use only Ramp-up completed Production at 100% of budget Infrastructure (roads & storage) operational Sales have commenced Half Year Results | February 2011 10
Slide 11: Christmas Creek BOO contract
Christmas Creek BOO contract Construction programme For personal use only within budget, on time and substantially complete Dry commissioning commenced +19 mtpa state of the art production operation Half Year Results | February 2011 11
Slide 12: Carina iron ore project
Carina iron ore project For personal use only Environmental and PMP approvals granted Management team in place Critical long lead items ordered Key site construction contracts awarded Production target Q3 2011 Initial target 4mtpa production rate with capacity for expansion Half Year Results | Febru
Slide 13: Mt Marion lithium project
Mt Marion lithium project Restructured ownership – MRL 30% equity holder For personal use only Mining approvals granted Production scheduled for FY2012 Valuable by-product potential Target market Lithium ion battery production market Half Year Results | February 2011 13
Slide 14: Pipeline operations
Pipeline operations For personal use only Contract lining projects at record levels Engaged by major local and international companies for repeat business High value contracting opportunities being pursued Order book full to 2012 Half Year Results | February 2011 14
Slide 15: Financial performance
Financial performance For personal use only Revenue $344.4 million, up 216% on corresponding half Record half year result $60.6 million, up 121% on corresponding half Balance sheet enhanced and continues to strengthen Internal funding of capex weighted to second half FY2011 Additional projects may r
Slide 16: Financial history
Financial history For personal use only Value of an investment of $1,000 in MIN on float in 2006 16,000 14,000 12,000 10,000 $ '000s 8,000 6,000 4,000 2,000 - 2006 2007 2008 2009 2010 Feb 2011 Revenue NPAT (normalised) 400 350 80 300 60 $ millions 250 $ millions 200 40 150 100 20 50 0 0 FY2007 FY200
Slide 17: Financial performance
Financial performance For personal use only $AUD millions HY Dec 10 HY Dec 09 % change Revenue 344.3 109.1 +216% NPAT 60.6 27.4 +121% EPS 36.4 21.4 +70% Net Assets 568.7 366.8 +55% Net Cash 66.2 26.5 +150% Funds Employed 502.5 340.3 +48% Operational Cash flow 58.7 23.3 +152% Half Year Results | Febr
Slide 18: Balance sheet strength
Balance sheet strength For personal use only $AUD millions Dec 10 Jun 10 Jun 09 Jun 08 Total Assets 881.7 844.8 288.9 223.6 Total Liabilities (313.0) (359.1) (144.0) (107.6) Net Assets 568.7 485.7 144.8 116.0 Net Cash Position 66.2 88.2 (11.6) 21.5 Funds Employed 502.5 397.5 156.4 94.5 Recommended f
Slide 19: Operational cash flow
Operational cash flow For personal use only $AUD millions REVIEW HY Dec 10 HY Dec 09 EBITDA 100.9 50.1 CAPEX (including funded items) (79.4) (26.4) Net Interest Payments (0.9) (1.6) Income Taxes Paid (12.2) (12.5) Working Capital and Other (35.6) (14.8) Net Operating and Investing cash flow (27.2) (
Slide 20: Strategy & basis for future growth
Strategy & basis for future growth For personal use only Affirm the strategy To build a sustainable diversified processing and mineral services and commodities business. − Provide a safe work environment for our people − Success in winning and undertaking profitable contracts − Expand commodities pr
Slide 21: Growth & market perspective
Growth & market perspective For personal use only Demand and pricing of iron ore continues to be strong Manganese pricing & volumes to recover through second half 2011 AUD / USD impacts revenue and profit for commodities Infrastructure a key element in production growth Half Year Results | February
Slide 22: Summary
Summary For personal use only Record half year result for MRL Development projects on time and within budget Business is well placed for continued organic growth across all operations Abundant corporate opportunities Balance sheet and cash position in good shape Outlook – second half result will exc