Saudi Arabian Mining Co. · TADAWUL:1211
Saudi Arabian Mining — Q2 2023 Earnings Presentation
30 slides from Saudi Arabian Mining's earnings presentation, Oct 24, 2023
Slide 1: Saudi Arabian Mining Company (Ma'aden) Investor Presentation – Q2 FY23 Results
Saudi Arabian Mining Company (Ma’aden) Investor Presentation – Q2 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 Robert Wilt Louis Irvine Faris Al Gahtani Chief Executive Officer Chief Financial Officer Investor Relations Director 3
Slide 4: Q2-FY23 Performance
Q2-FY23 PERFORMANCE Strategic Highlights Revenue Adj. EBITDA1 Maintained focus on safety – AIFR of 0.12 SAR 6.97bn SAR 2.29bn Record quarter of Phosphate production Further deleveraging of balance sheet - SAR 3 billion debt Net Profit2 Adj. Net Profit3 EPS2 Adj. EPS3 prepayment SAR 0.35bn SAR 0.63bn
Slide 5: Average Realized Commodity Prices
AVERAGE REALIZED COMMODITY PRICES Prices easing off exceptionally strong period in 2022 Ammonia & DAP Aluminium Gold $1,200 $3,700 $2,100 $1,000 $1,900 $3,200 $800 $1,700 $2,700 $600 $1,500 $2,200 $400 $1,300 $1,700 $200 $1,100 $0 $1,200 $900 Ammonia ($/MT) DAP ($/MT) Aluminium ($/MT) Gold ($/oz) •
Slide 6: EHSS Performance
EHSS PERFORMANCE We are dedicated to protecting the safety and wellbeing of our workforce Systems Culture Revise EHSS Management System (MHSEM) across all of Initiate the EHSS assessment actions project and integrate Ma’aden in accordance with new Business Model them with Ma’aden’s transformation pr
Slide 7: Further Progress on Our Growth Strategy
FURTHER PROGRESS ON OUR GROWTH STRATEGY Operational Progress Strategic Updates Ammonia Granular Record Phosphate production volumes 15% YoY* 23% YoY* Completed acquisition of 9.9% stake in Ivanhoe Electric and mobilization commenced Aluminium pot relining at Ras Al-Khair completed *Signed strategic
Slide 8: Environment, Sustainability, and Governance
ENVIRONMENT, SUSTAINABILITY, AND GOVERNANCE ~3.2M tonnes CCU (Gulf Cryo) World’s Leading the Green Transition (≈6% of Ammonia production) Annual Carbon • Prefeasibility study stage largest exporter of Emission Certified to export over Avoidance1 Solar steam (GlassPoint) 138,000 tons • Prefeasibility
Slide 9: Financial Results
FINANCIAL RESULTS Louis Irvine Chief Financial Officer 9
Slide 10: Q2-FY23 Financial Results
Q2-FY23 FINANCIAL RESULTS Softening commodity prices and one-offs QoQ YoY Q2-FY23 Q1-FY23 H1-FY23 H1-FY22 (SAR million) -13% -28% Revenue 6,966 8,045 15,011 20,790 Highlights -3% -62% EBITDA 2,120 2,176 4,296 11,255 • Lower DAP, Ammonia and Aluminium -18% -55% prices QoQ Adj. EBITDA1 2,292 2,781 5,0
Slide 11: EBITDA Bridge (H1-FY22 to H1-FY23)
EBITDA BRIDGE (H1-FY22 to H1-FY23) Lower commodity pricing and one-off adjustments Highlights • Lower prices of all products except Gold Inventory drawdown: • Higher sales volumes SAR 726 • Inventory drawdown associated with higher sales volume • One-off adjustments including pot relining costs and
Slide 12: Strong Cash Generation from Operating Activities
STRONG CASH GENERATION FROM OPERATING ACTIVITIES Proactive deleveraging of balance sheet - D&A: SAR 2,519 - Finance cost: SAR 1,213 - BMNM BU: SAR 475 - Early debt repayment: SAR - Finance charges accrued: SAR - Zakat: SAR 491 - Phosphate BU: SAR 428 3,000 1,158 - Income tax: SAR 148 - Aluminium BU:
Slide 13: Deleveraging Balance Sheet and Reducing Net Debt
DELEVERAGING BALANCE SHEET AND REDUCING NET DEBT Long-term Borrowing Cash & Cash Equiv. FY20 48.3 5.7 Highlights FY21 46.8 9.1 24% FY22 41.2 16.4 • Financial position strengthened Q2-FY23 36.6 14.0 • Long-term borrowings decreased by SAR 4.6mn including early debt repayment Net Debt Net Debt/EBITDA
Slide 14: Phosphate
PHOSPHATE Contributed circa 58% of Q2-FY23 sales; 63% of H1-FY23 sales Financial performance Highlights QoQ YoY (SAR million) Q2-FY23 Q1-FY23 H1-FY23 H1-FY22 Variance Variance • Record DAP and ammonia production in Sales Q2-FY23 and H1-FY23 4,042 5,415 -25% 9,457 13,488 -30% • Fertilizer production
Slide 15: Phosphate EBITDA Bridge (YoY and QoQ)
PHOSPHATE EBITDA BRIDGE (YoY and QoQ) Higher volumes partially offsetting softer pricing environment Highlights • Lower prices of DAP and Ammonia, partially offset by higher sales volumes • Major raw material costs Inventory drawdown: lower mainly due to lower SAR 286 molten sulfur prices • Higher c
Slide 16: Aluminium
ALUMINIUM Contributed circa 31% of Q2-FY23 sales; 28% of H1-FY23 sales Financial performance Highlights QoQ YoY (SAR million) Q2-FY23 Q1-FY23 H1-FY23 H1-FY22 Variance Variance • Production ramp up QoQ with early completion of pot relining program Sales 2,177 2,080 5% 4,257 6,188 -31% • One-off indus
Slide 17: Aluminium EBITDA Bridge (YoY and QoQ)
ALUMINIUM EBITDA BRIDGE (YoY and QoQ) Softer commodity prices and one-offs Highlights • Unfavorable commodity prices • Lower primary aluminium and FRP volumes • One-off industrial utilities and pot relining costs Aluminium EBITDA Bridge (QoQ) Market led Business led One-offs * includes sales price e
Slide 18: Base Metals & New Minerals
BASE METALS & NEW MINERALS Contributed circa 11% of Q2-FY23 sales; 9% of H1-FY23 sales Financial performance QoQ YoY (SAR million) Q2-FY23 Q1-FY23 H1-FY23 H1-FY22 Variance Variance Sales 738 541 36% 1,278 1,154 11% Highlights EBITDA 379 215 76% 595 463 29% • Higher average realized prices QoQ and EB
Slide 19: Base Metals & New Minerals EBITDA Bridge (YoY and QoQ)
BASE METALS & NEW MINERALS EBITDA BRIDGE (YoY and QoQ) Increase of 29% YoY due to higher production and higher realized price Highlights • Gold prices maintain up trend • Positive volume effect due to higher production • Higher costs associated with higher volumes BMNM EBITDA Bridge (QoQ) Market led
Slide 20: 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 21: Outlook
OUTLOOK Robert Wilt Chief Executive Officer MFC 21
Slide 22: Near-Term Growth Projects
NEAR-TERM GROWTH PROJECTS 22
Slide 23: First-Class Asset Base with Strong Exploration Focus
FIRST-CLASS ASSET BASE WITH STRONG EXPLORATION FOCUS Saudi Mining Champion – extensive diversified license portfolio presents a unique opportunity, Increased intensity of exploration building on existing assets and infrastructure with selected partners to explore the whole Kingdom adding resources M
Slide 24: 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 25: Production and Capex Guidance
PRODUCTION AND CAPEX GUIDANCE Guidance maintained for 2023 PRODUCTION FORECAST 2023 CAPEX GUIDANCE* Lower Upper Lower Upper DAP Equivalent KMT 4,900 5,600 Sustaining CAPEX SAR (mn) 1,400 1,700 Ammonia KMT 3,100 3,500 Growth CAPEX SAR (mn) 1,350 1,600 Alumina KMT 1,600 1,825 *excludes exploration CAP
Slide 26: 2023 Outlook
2023 OUTLOOK Low-cost profile and exploration focus to deliver resilience through commodity cycles Markets Ma’aden Positioning Ammonia • Prices expected to remain stable in Q3-FY23 • Leverage leading production capabilities, incl Ammonia 3 • Supply tightness to provide marginal upside • Offering div
Slide 27: Q&A
Q&A Robert Wilt Louis Irvine Chief Executive Officer Chief Financial Officer 27
Slide 28: Thank You
THANK YOU Stay Informed: Download MA’ADEN IR App Reach us at: [email protected] 28
Slide 29: Appendix
Appendix MAADEN @ Galop 29
Slide 30: 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 H1-FY23 SAR (million) Q1-FY23 Q2-FY23 H1-FY23 EBITDA 2,176 2,120 4,296 Net Profit attributable to Ma’aden 419 351 770 EBITDA margin 27% 30% 36% Net Profit margin 5% 5% 5% Pot Relin
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