Morgan Stanley Australia Emerging Companies Conference
Transcript of Morgan Stanley Australia Emerging Companies Conference
Morgan Stanley Australia
Emerging Companies Conference
Peter Wade, Executive Chairman
June 2011
� 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
to those securities. No agreement to subscribe for securities in the Company will be entered
into on the basis of this presentation.
� This presentation contains forecasts and forward looking information. Such forecasts,
projections and information are not a guarantee of future performance, involve unknown
risks and uncertainties. Actual results and developments will almost certainly differ materially
from those expressed or implied.
� You should not act or refrain from acting in reliance on this presentation material. This
overview of MRL does not purport to be all inclusive or to contain all information which its
recipients may require in order to make an informed assessment of the Company’s prospects.
You should conduct your own investigation and perform your own analysis in order to satisfy
yourself as to the accuracy and completeness of the information, statements and opinions
contained in this presentation before making any investment decision.
Disclaimer
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Process Minerals
Minerals and base metals
processing, logistics, ship
loading & marketing
Crushing Services
Australia’s largest specialist
BOO crushing, screening
and processing contractor
PIHA
Pipeline, services, site
infrastructure, contractor
and polyethylene fittings
manufacturer
Polaris Metals
Specialist Iron Ore
resources company
Mesa Minerals
(64% owned)
Specialist manganese and
technology company
Minerals ProducerService Provider
Mineral Resources
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Financial history
4
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2006 2007 2008 2009 2010 Jun 2011
$ '0
00
s
Value of an investment of $1,000 in MIN on
float in 2006
0
50
100
150
200
250
300
350
400
FY2007 FY2008 FY2009 FY2010 HY2011
$ m
illi
on
s
Revenue
first half second half
0
20
40
60
80
FY2007 FY2008 FY2009 FY2010 HY2011
$ m
illi
on
s
NPAT (normalised)
first half second half
Safety performance
5
Industry Average Source: Worksafe Mining Services category
0
2
4
6
8
10
12
14
16
Ma
r-0
6
Ma
y-0
6
Jul-
06
Sep
-06
No
v-0
6
Jan
-07
Ma
r-0
7
Ma
y-0
7
Jul-
07
Sep
-07
No
v-0
7
Jan
-08
Ma
r-0
8
Ma
y-0
8
Jul-
08
Sep
-08
No
v-0
8
Jan
-09
Ma
r-0
9
Ma
y-0
9
Jul-
09
Sep
-09
No
v-0
9
Jan
-10
Ma
r-1
0
Ma
y-1
0
Jul-
10
Sep
-10
No
v-1
0
Jan
-11
Ma
r-1
1
Ma
y-1
1
LTIFR Industry Average
Christmas Creek BOO contract
6
� Plant construction / operational testing complete
� Ramp up to name plate in progress
� > 1million tonnes delivered
� Planning for additional tonnages
Christmas Creek BOO contract
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Yilgarn iron ore district
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Exploration - Yilgarn iron ore district
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� Current program
� Carina Extended – resource
definition drilling of the
northern extension
� Johnson Range – extension
of previous resource
definition programme
� Mayfield – met testing of
diamond drill core samples
� Short term program
� Carina Extended targetted
program to extend
geological strike range
� J4 – infill drilling of earlier
positive results
Carina iron ore mine
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Project Statistics
• Project EPCM – Crushing Services International
• Total Project Value - $197mill
• Final Project Approvals – May 2011
• First Ore on Train – Scheduled for October 2011
• Project Construction Man-hours – 500,000
• Initial Clearing Required – 300 Hectares
• Earthworks volume to be moved – 850,000M3
• Civil Concrete Works – 6500M3
• Structural / Platework Fabrication – 1,500TMining Fleet
Mine site facilitiesWater supply
Carina iron ore mine
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Haul road cleared & grubbedStockyard benching commences
Mining equipment in action
• Mining pre-strip civils in progress
• Support infrastructure underway
• Accommodation village
• Haul road
• Mine facilities
• Rail Load-out / line work
• Temporary processing plant in
construction
• KBT2 project – broken ground
Carina iron ore mine
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Kwinana Berth 2Friday night seafood
Accommodation unitsMain line turnout
Poondano iron ore project
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� Target capacity 1.5 – 2 mtpa
� Processing plant in construction
� Site infrastructure ready to
mobilise
� Logistics chain in place
� Projected site commencement
for operation June 2011
Mesa Minerals
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� Mesa Manganese Joint Venture
� Partners - Mesa Minerals 50%,
Auvex Resources 50%
� Resource – Ant Hill & Sunday Hill
manganese tenements
� MRL holds 64% of Mesa
Minerals
� MRL agreed to purchase Auvex
Resources via scheme of
arrangement. Court date set for
June 2011
� Manganese technology
commercialisation of assets
Pipeline operations
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� Workshop activity – record� Australian coal seam gas infrastructure
� Overseas supply
� Overseas contracting - strong� Brunei
� Indonesian mining client
� Australian contracts – mine infrastructure focus� Cadia Ridgeway
� Cape Lambert
� BHP – multi-site
Equipment procurement opportunities
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• Mineral processing equipment
opportunities locally & overseas
• Equipment becoming available as
previously closed operations
dispose of equipment
• Opportunity to acquire assets
depends on ability to dismantle
and remove items
• MRL expected spend > $20 mill
for value X 10.
• Key to success is seamless execution of major projects
• Major opportunities to grow in contracting – market presents a range of opportunities
• Infrastructure continues to provide significant opportunities
– Ports
– Accommodation
– Logistics
• Resource definition in YilgarnRegion promising
• Equipment procurement opportunities in region
• PIHA opportunities local and overseas
Business development / operations priorities
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• Port infrastructure key to operational success in WA – state government has some momentum – opportunities for MRL
• Resource sector growth creates opportunities for mid-tier operators to move into production with links to majors – opportunities for MRL
• Market
– Iron ore pricing continues to maintain pricing premium
– Manganese pricing expected to improve in medium term
– New markets for WA commodities outside of China (eg India)
Market outlook
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