Mineral Resources Limited · ASX:MIN
Mineral Resources — FY2014 Earnings Presentation
25 slides from Mineral Resources's earnings presentation, Aug 18, 2014
Slide 1: FY2014 Full Year Results Investor Presentation
For personal use only FY2014 FULL YEAR RESULTS Investor Presentation June 2014 | www.mrl.com.au | Slide No. 1
Slide 2: Corporate Profile
For personal use only CORPORATE PROFILE SERVICES PROVIDER MINERALS PRODUCER MINERAL SERVICES POLARIS METALS MESA MINERALS * PROCESS MINERALS CRUSHING SERVICES PIHA MINERALSERVICES • Iron Ore Exploration • Manganese Technology • Mineral Processing • Crushing & Screening • Services Infrastructure • Cr
Slide 3: Highlights
For personal use only HIGHLIGHTS • Record 10.4 million tonnes exported – 88% growth • Record EBITDA of $554 million - 45% growth • $0.6bn(1) increase in net cash position, plus $407m in undrawn debt facilities • $1.96 per share increase in Total Shareholder Return – 22% growth • Operational initiati
Slide 4: Operational Highlights
For personal use only OPERATIONAL HIGHLIGHTS Safety Mineral Services • Significant reduction in group wide TRIFR rate - 12 • Plant and equipment hire month rolling rate down 51% to 7.16 • Small scale crushing services <5mtpa Mining Services Mining CSI • Record 10.4 million wmt exported – 88% growth
Slide 5: Financial Highlights
For personal use only FINANCIAL HIGHLIGHTS Record full year result • Revenue $1.9bn up $0.8bn +73% on prior year • NPAT $249m(1) +38% on prior year, in line with guidance • FY14 reported result includes $18m impairment of Aquila investment • EPC style profit from FMG exit • CML settlement, costs inc
Slide 6: Profit Before Tax FY13 to FY14
For personal use only Profit Before Tax FY13 TO FY14 80.0 60.0 40.0 20.0 0.0 -20.0 -40.0 -60.0 -80.0 Mining volume Mining margin CML settlement Depreciation Construction / EPC Contracting Other (achieved price & margins Activities costs) ** Excludes AQA share impairment June 2014 | www.mrl.com.au |
Slide 7: Safety Performance
For personal use only SAFETY PERFORMANCE 51% improvement in 12 month rolling TRIFR • Continued improvement in safety management with number of key initiatives to further improve MRL 3 month rolling TRIFR safety culture and performance 18.00 • Significant drop in group wide TRIFR rate - 12 16.00 mont
Slide 8: Mining Operations
For personal use only MINING OPERATIONS Record 10.4 million wmt exported - 88% growth 15,000 Export Tonnes (‘000 wmt) 10,000 5,000 Port Hedland 0 Poondano 2009 2010 2011 2012 2013 2014 Spinifex Export Volumes ('000 wmt) FY13 H1 FY13 H2 FY13 Total FY14 H1 FY14 H2 FY14 Total map Ridge Iron Valley Phil
Slide 9: Iron Valley Development
For personal use only IRON VALLEY DEVELOPMENT Mine site development well advanced in FY14 • Project commenced on site in March 2014 • First blast took place on 2 August 2014 • Bulk Earthworks, Crushing Plant and all Non-Process • Wet commissioning of crushing plant to start in August Infrastructure
Slide 10: CSI Crushing & Haulage
For personal use only CSI CRUSHING & HAULAGE Strong pipeline of new and existing BOO contracts • Crushing and haulage volumes marginally higher Installed Crushing Capacity FY13 to FY14 140 • Annualised run rate 85-95 mtpa 120 • Volumes in FY14 H1 were higher than in H2 from 100 loss of FMG volumes 8
Slide 11: CSI EPC Construction
For personal use only CSI EPC CONSTRUCTION Nammuldi Below Water Table Process Plant • First ore on ground forecast for November 2014 • Contract awarded 9 August 2013 • Load commissioning is forecast to commence in November and will extend until the date of acceptance • Scope of work: which is curren
Slide 12: PMI Site Services
For personal use only PMI SITE SERVICES 1,068 rooms under management with further expansion for FY15 • 1,068 rooms under management at end of FY14 – 7% growth from the prior year end • Strategy of leveraging accommodation services for our own operations to provide services for external customers • I
Slide 13: PIHA
For personal use only PIHA FY14 acquisitions expand offering to oil and gas infrastructure sectors • The business continues to provide solid contribution to earnings • During the year PIHA made 2 acquisitions - GFR’s valve business and Spiral Pipe Australia - expanding its offering in the oil and ga
Slide 14: Growth and Outlook
For personal use only GROWTH AND OUTLOOK COMMODITY PRICES FINANCIAL CAPACITY FOR GROWTH • We believe we have seen the bottom of the iron ore • Balance sheet currently under geared (cash positive) index price fall • MRL can support major, integrated projects within the strategic framework • There is
Slide 15: Information Pack
For personal use only INFORMATION PACK June 2014 | www.mrl.com.au | Slide No. 15
Slide 16: Corporate Profile
For personal use only CORPORATE PROFILE • Mineral Resources Limited (MRL) is a Perth based integrated mining services provider, commodity producer and infrastructure company • MRL is an ASX100 Company with a market capitalisation of approximately $2.0 billion • The business was founded in 1993 by th
Slide 17: Mining Operations - Pilbara
For personal use only MINING OPERATIONS - PILBARA Record 10.4 million wmt exported - 88% growth Phil’s Creek • Record 4.0 million wmt exported in FY14 – up 3.5 miilion wmt on prior year as production ramped up • Cost reductions achieved from higher export volumes Spinifex Ridge Pit Development • Str
Slide 18: Mining Operations - Yilgarn
For personal use only MINING OPERATIONS - YILGARN Record 10.4 million wmt exported - 88% growth Carina • Record 4.6 million wmt exported in FY14 – up 28% on prior year • Stage 2 cut back of Carina pit, which incorporates the final pit design, delivered in FY14 H2 with limited impact on production •
Slide 19: PMI Logistics & Haulage
For personal use only PMI LOGISTICS & HAULAGE MRL rail fleet launched with full service to Carina from 1 Sept 2014 • Launch of MRL rail fleet on 23 July 2014, consisting of 6 new locomotives and 382 purpose built iron ore wagons • Initially to carry iron ore from Carina mine site to Kwinana Port for
Slide 20: Profit & Loss
For personal use only PROFIT & LOSS Record full year result on all P&L metrics • Revenue $1.9bn up $0.8bn (73%) on prior year Profit & Loss FY14 FY13 Variance - $0.6bn from increase in iron ore exports, ($m) ($m) (%) $0.2bn from increase in EPC construction Revenue 1,899.0 1,097.0 73% activity Other
Slide 21: Cash Flow & Balance Sheet
For personal use only CASH FLOW & BALANCE SHEET Cash flow and balance sheet FY14 FY13 Variance $0.6bn(1) cash inflow in the year Including cash from AQA share sale • Net cash from operating and investing activities up EBITDA 554.1 382.8 171.3 CAPEX (inc. funded items) (184.1) (417.4) 233.3 $679m: Pr
Slide 22: Performance Since Listing
For personal use only PERFORMANCE SINCE LISTING June 2014 | www.mrl.com.au | Slide No. 22
Slide 23: Environmental Approvals
For personal use only ENVIRONMENTAL APPROVALS • J4 mine in final approval stages. • J5 and Bungalbin East approvals referred to EPA for assessment • Rehabilitation work in progress at Poondano mine received a special mention at AMEC environmental awards for innovative focus on restoring dens for the
Slide 24: Exploration & Drilling Program
For personal use only EXPLORATION & DRILLING PROGRAM • Iron Valley Infill Drilling completed 50mx50m for first 3 years • Iron Valley Metallurgical and Geotechnical Drilling completed • Weelumurra Metallurgical Drilling completed June 2014 | www.mrl.com.au | Slide No. 24
Slide 25: Disclaimer
For personal use only DISCLAIMER • 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 respe