Saudi Arabian Mining Co. · TADAWUL:1211
Saudi Arabian Mining — Q3 2023 Earnings Presentation
32 slides from Saudi Arabian Mining's earnings presentation, 2023
Slide 1: Saudi Arabian Mining Company (Ma'aden) Investor Presentation – Q3 FY23 Results
Saudi Arabian Mining Company (Ma’aden) Investor Presentation – Q3 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: Q3-FY23 Performance
Q3-FY23 PERFORMANCE Strategic Highlights Revenue Adj. EBITDA1 Phosphate 3 Phase 1 FID to add +1.5 Mt p.a. by 2026 SAR 6.23bn SAR 1.69bn On track to achieve highest Phosphate production in FY23 Net Loss2 Adj. Net Loss1 EPS2 Adj. EPS1 Exploration drilling record +430km set for FY23 SAR (83.44)m SAR (2
Slide 5: Average Realized Commodity Prices
AVERAGE REALIZED COMMODITY PRICES Prices continue to stabilize but remain materially off FY22 peak DAP (USD/Mt) Ammonia (USD/Mt) $1,040 • High Phosphate inventories across key $1,020 $940 $920 markets and increased Chinese supply $840 $820 led to drop in prices until mid-Q3, then $740 $720 $640 $620
Slide 6: Further Progress on Our Growth Strategy
FURTHER PROGRESS ON OUR GROWTH STRATEGY Strategic Growth Pillars Operational Progress Record year-to-date of Phosphate production volumes Phosphate 3 given Final Investment Decision Extending global fertilizer Expanding global reach in taken for Phase 1 leadership and position as critical minerals t
Slide 7: Leadership in Global Fertilizer Market, Despite Challenges
LEADERSHIP IN GLOBAL FERTILIZER MARKET, DESPITE CHALLENGES Top position 10% production and sales volumes Temporary Planned Maintenance increased YoY maintained in outages in Scheduled DAP maintenance shutdown to ensure long- major Phosphate BU term reliability Phosphate Phosphate 3 to add 1.5 Mt p.a
Slide 8: EHSS Performance
EHSS PERFORMANCE Implementing safety transformation program to protect our workforce Systems Culture Revise EHSS Management System (MHSEM) across the Initiate the EHSS assessment actions project and integrate them organization in accordance with the new Business Model with Ma’aden’s transformation p
Slide 9: ESG Projects and Partnerships
ESG PROJECTS AND PARTNERSHIPS Continued progress towards our 2040 ESG TARGETS ~12M m3 Water recovery plan 120k trees Creating healthy ecosystems ENVIRONMENT Water Recovery • Ramping up treated water supply by 50% YTD for MWSPC Afforestation • 120K trees and 10M seeds under plantation in Imam per yea
Slide 10: Financial Results
FINANCIAL RESULTS Louis Irvine Chief Financial Officer 10
Slide 11: Q3-FY23 Financial Results
Q3-FY23 FINANCIAL RESULTS QoQ YoY Q3-FY23 Q2-FY23 9M-FY23 9M-FY22 (SAR million) -11% -31% Revenue 6,226 6,966 21,237 30,805 Highlights -27% -62% EBITDA1 1,616 2,219 6,113 15,979 • Lower commodity prices QoQ -29% -57% • Raw material prices trending lower QoQ Adj. EBITDA2,3 1,692 2,391 6,966 16,287 •
Slide 12: EBITDA Bridge (9M-FY22 to 9M-FY23)
EBITDA BRIDGE (9M-FY22 to 9M-FY23) Lower commodity pricing and one-off adjustments Highlights • Lower prices for all products except Gold • On track for record DAP sales volumes • Talent acquisition and retention • Lower share of income from JVs • Higher exploration costs attributed to record drilli
Slide 13: Strong Cash Generation from Operating Activities
STRONG CASH GENERATION FROM OPERATING ACTIVITIES Proactive deleveraging of balance sheet - D&A: SAR 3,837 - Finance cost: SAR 1,649 - BMNM BU: SAR 722 - Early debt repayment: SAR - Finance charges accrued: SAR - Zakat: SAR 494 - Phosphate BU: SAR 720 3,000 1,774 - Income tax: SAR 145 - Aluminium BU:
Slide 14: 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 23% FY22 41.2 16.4 • Ongoing financial position strengthening 10% Q3-FY23 37.2 14.9 • Long-term borrowings decreased by SAR 4.4 bn including early debt repayment Net Debt Ne
Slide 15: Phosphate
PHOSPHATE Financial performance QoQ YoY (SAR million) Q3-FY23 Q2-FY23 9M-FY23 9M-FY22 Variance Variance Sales Highlights 3,246 4,042 -20% 12,703 20,172 -37% EBITDA 1,145 1,623 -29% 5,203 12,449 -58% • Record fertilizer production YTD • Lower revenue due to reduced sales volumes EBITDA margin 35% 40%
Slide 16: Phosphate EBITDA Bridge (YoY and QoQ)
PHOSPHATE EBITDA BRIDGE (YoY and QoQ) Higher volumes partially offsetting softer pricing environment Highlights • Lower molten sulfur price • Record volumes of fertilizers YTD • Planned and unplanned shutdowns impacted Q3-FY23 production Phosphate EBITDA Bridge (QoQ) Market led Business led 2% EBITD
Slide 17: Aluminium
ALUMINIUM Financial performance QoQ YoY Highlights (SAR million) Q3-FY23 Q2-FY23 9M-FY23 9M-FY22 Variance Variance Sales 2,152 2,177 -1% 6,409 8,967 -29% • QoQ Primary Aluminium production increase EBITDA 286 342 -16% 352 2,917 -88% • One-off industrial utility charges and pot EBITDA margin 13% 16%
Slide 18: Aluminium EBITDA Bridge (YoY and QoQ)
ALUMINIUM EBITDA BRIDGE (YoY and QoQ) Softer commodity prices and one-offs Highlights • Unfavorable commodity prices QoQ and YoY • Lower primary aluminium and FRP volumes YoY • One-off industrial utilities and pot relining costs YTD • Lower sales prices partially offset by lower raw material costs •
Slide 19: Base Metals & New Minerals
BASE METALS & NEW MINERALS Financial performance QoQ YoY (SAR million) Q3-FY23 Q2-FY23 9M-FY23 9M-FY22 Variance Variance Sales 812 738 10% 2,090 1,654 26% Highlights EBITDA 476 471 1% 1,263 966 31% EBITDA • Higher revenue and attractive margins margin1 59% 64% -5pp 60% 58% 2pp • Higher production du
Slide 20: Base Metals & New Minerals EBITDA Bridge (YoY and QoQ)
BASE METALS & NEW MINERALS EBITDA BRIDGE (YoY and QoQ) Increase of 31% YoY due to higher production and higher realized price Highlights • Gold prices maintain up trend YoY • Positive volume effect due to higher production • Higher costs associated with higher volumes and exploration BMNM EBITDA Bri
Slide 21: Outlook
OUTLOOK Robert Wilt Chief Executive Officer MFC 21
Slide 22: Progressing Pipeline of Near-Term Growth Projects
PROGRESSING PIPELINE OF NEAR-TERM GROWTH PROJECTS Mahd Ad Dhahab Expansion ≈ 200k ounces per annum 2023 2025 2026 2027 Mansourah-Massarah Phosphate 3 Aluminium 250k ounces per annum 3m tons per annum (1.5m per Phase) ≈ 90 KMT per annum • Ma’aden’s largest gold project to date Line 1 & 2 expansion •
Slide 23: Exploring Saudi Arabia's Extensive Mineral Reserves
EXPLORING SAUDI ARABIA’S EXTENSIVE MINERAL RESERVES Ambitious, world-leading exploration program to unlock the mineral endowment of the Kingdom Accelerating drilling activities Meters drilled (‘000) 126 320 320 km YTD (50%) JV (50%) 126 km km 106 drilled in Q3-FY23 drilled year-to-date 88 77 • 50/50
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 broadly 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 explora
Slide 26: 2023 Outlook
2023 OUTLOOK Low-cost profile and exploration focus to deliver resilience through commodity cycles Markets Ma’aden Positioning Ammonia • Supply returning to normal as operational issues resolve in Q4 • Stabilizing demand due to partial fertilizer recovery • Leading production capabilities First quar
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 Q3-FY23 9M-FY23 SAR (million) Q1-FY23 Q2-FY23 Q3-FY23 9M-FY23 Revenue 8,045 6,966 6,226 21,237 Revenue 8,045 6,966 6,226 21,237 EBITDA* 2,278 2,219 1,616 6,113 Net Profit attributa
Slide 31: Equity Accounted Joint Ventures
EQUITY ACCOUNTED JOINT VENTURES Breakdown of share of profit from JVs that are equity accounted SAR (million) Q1-FY23 Q2-FY23 Q3-FY23 9M-FY23 Manara (Manara Minerals Investment Company) -- -- (9) (9) Ma’aden IE Electric (Ma’aden Ivanhoe Electric Exploration and Development Limited Company) -- -- --
Slide 32: 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
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