Mmg Ltd. · HKEX:1208
Mmg — Melbourne Mining Club (October 2017)
22 slides from Mmg's conference presentation, Oct 12, 2017
Slide 1: Melbourne Mining Club
Melbourne Mining Club Right Time, Right Business, Right Model 12 October 2017
Slide 2: Urbanisation
Urbanisation
Slide 3: Providing efficient, low carbon energy
Providing efficient, low carbon energy @ Nd Fe Dy Neodymium Iron Boron Dysprosium Neodymium, iron, boron and dysprosium are used in the permanent magnet generators that many wind turbines now employ. Cu} Copper Wind turbines can use between 400kg to 4 tonnes of copper per turbine depending on the te
Slide 4: Slide 4
Slide 5: Top business risks facing mining and metals 2016-2017
TOP 10 BUSINESS RISKS FACING MINING AND METALS 2016-2017 Source: Ernst & Young: Business risks facing mining and metals 2016-2017
Slide 6: One Las Bambas is needed every year even if Chinese copper demand grows at a lower rate
One Las Bambas is needed every year even if Chinese copper demand grows at a lower rate 2004-2020 CHINESE REFINED COPPER CONSUMPTION 4.0% 14000 35% 454 kt 6.9% 12000 624 kt 30% 10000 11.9% 25% 744 kt 8000 10.1% 20% kt 416 kt 6000 15% 4000 10% 2000 5% 0 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 7: Zinc supply constrained by Chinese environmental protection, strategic shift
Zinc supply constrained by Chinese environmental protection, strategic shift CHINESE ZINC MINE PRODUCTION AND ZINC PRICE IN RMB 600 25,000 500 20,000 400 15,000 Yuan / t kt 300 10,000 200 5,000 100 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Chinese zinc mine production SHFE Zn price(RHS)
Slide 8: China consumes almost half the world's copper
China consumes almost half the world’s copper 2016 REFINED COPPER CONSUMPTION SHARE BY REGION Latin America Others 2% 3% North America 10% Europe 17% China 48% Other Asia 20% Source: Wood Mackenzie, Q3 2017 8
Slide 9: The Chinese power sector is the major driver for copper consumption
The Chinese power sector is the major driver for copper consumption – with a long way to run 2016 CHINA END-USE COPPER DEMAND CHINESE INVESTMENT PLAN IN POWER INDUSTRY 8 Others 10% 7 35% 7.17 Construction 8% 6 Electronics 5 5.3 7% 68% Trillion Yuan Power Transport 51% 4 9% 3 3.15 Air conditioning 2
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Slide 11: Introducing MMG Limited
Introducing MMG Limited ROSEBERY KINSEVERE SEPON LAS BAMBAS DUGALD RIVER 11
Slide 12: Las Bambas Mine, Apurimac, Peru
Las Bambas Mine, Apurimac, Peru 12
Slide 13: Nueva Fuerabamba Community
Nueva Fuerabamba Community 13
Slide 14: Operational excellence – ramp up benchmark
Operational excellence – ramp up benchmark RAMP UP PROFILES OF SIMILAR1 GREENFIELD COPPER CONCENTRATORS 100% 80% % of installed Capacity 60% Las Bambas 40% Mine 1 Mine 2 Mine 3 20% Mine 4 Mine 5 0% Comm. 1st 2nd 3rd 4th 5th 6th 7th 8th Production Quarters 1 Includes recently developed (since 2014) g
Slide 15: Dugald River Project, Cloncurry, Queensland
Dugald River Project, Cloncurry, Queensland 15
Slide 16: China promises to reduce poverty by million people each year
China promises to reduce poverty by 10 million people each year, adding new purchasing power NUMBER OF PEOPLE IN POVERTY IN CHINA 3500 140 3000 120 2500 100 Yuan per year million 2000 80 1500 60 1000 43.35 40 500 20 0 0 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015
Slide 17: China has strong ambition on electric vehicles and will lead global EV consumption
China has strong ambition on electric vehicles and will lead global EV consumption ELECTRIC VEHICLE (EV) SALES, MARKET SHARE, AND BEV AND PHEV SALES SHARES IN SELECTED COUNTRIES, 2010-16 400 35% 2010 350 30% 2011 New Electric Car Registration 300 Market Share 2016 25% 2012 (Thousand) 250 2013 20% 20
Slide 18: 'One belt, one road' initiative
‘One belt, one road’ initiative Related countries and regions 65 Involved population 4.4 billion (63% of the world) Scale of economy 21 trillion (29% of the world) 18
Slide 19: Average GDP growth rate needed to double China's GDP from 2010
The average GDP growth rate in 2017-2020 needs to be 6.5% to meet the goal of doubling China’s GDP from 2010 CHINA’S GDP AND GROWTH RATE 90 12 82.63 80 10.6 10 70 60 8 Trillion Yuan 50 6.7 6.5 6.3 6.3 6 % 41.30 40 30 4 20 2 10 3.96 4.46 0 0 2010 2011 2012 2013 2014 2015 2016 2017e 2018f 2019f 2020f
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Slide 22: Melbourne Mining Club
Melbourne Mining Club Right Time, Right Business, Right Model 12 October 2017