For personal use only MINERAL COMMODITIES LTD 2017 FULL YEAR RESULTS PRESENTATION
DISCLAIMER AND COMPETENT PERSON STATEMENT For personal use only Subject to any continuing obligation under applicable law or any relevant The information, if any, in this presentation which relates to This document has been prepared by Mineral Commodities Ltd (MRC or listing rules of the ASX, MRC disclaims any obligation or undertaking to the Company) and comprises written materials / slides for a presentation exploration results, mineral resources or ore reserves for Xolobeni disseminate any updates or revisions to any forward looking statements in Mineral Sands Project is based on information compiled by Mr Allen concerning MRC. This is not a prospectus, disclosure document or offering these materials to reflect any change in expectations in relation to any Maynard, who is a Member of the Australian Institute of Geoscientists document. forward looking statements or any change in events, conditions or (“AIG”), a corporate member of AusIMM and independent consultant This document is for information purposes only and does not constitute or circumstances on which any statement is based. Nothing in these materials form part of any offer or invitation to acquire, sell or otherwise dispose of, to Mineral Commodities Ltd. Mr Maynard is the director and principal shall under any circumstances create an implication that there has been no geologist of Al Maynard & Associates Pty Ltd and has over 37 years’ or issue, or any solicitation of any offer to sell or otherwise dispose of, change in the affairs of MRC since the date of this presentation. of exploration and mining experience in a variety of mineral deposit purchase or subscribe for, any securities, nor does it constitute investment The information, if any, in this presentation which relates to exploration styles. Mr Maynard has sufficient experience which is relevant to the advice, nor shall it or any part of it nor the fact of its distribution form the results, mineral resources or ore reserves for the Tormin Mineral Sands basis of, or be relied on in connection with, any contract or investment style of mineralisation and type of deposit under consideration and to Project and the Munglinup Graphite Project is based on information the activity which he is undertaking to qualify as a Competent Person decision. compiled by Mr Adriaan du Toit, who is a Member of the Australasian as defined in the 2004 Edition of the “Australasian Code for reporting Certain statements in this presentation are forward looking statements. Institute of Mining and Metallurgy (“AusIMM”) and an independent of Exploration Results, Exploration Targets, Mineral Resources and You can identify these statements by the fact that they use words such as consultant to Mineral Commodities Ltd. Mr du Toit is the director and “anticipate”, “estimate”, “expect”, “project”, “intend”, “plan”, “believe”, Ore Reserves” (JORC Code, 2004 Edition). This information was principal geologist of Aemco Pty Ltd and has over 26 years’ of exploration prepared and first disclosed under the JORC Code, 2004 Edition. It “target”, “may”, “assume” and words of similar import. These forward and mining experience in a variety of mineral deposits and styles. Mr du has not been updated since to comply with the JORC Code, 2012 looking statements speak only as at the date of this presentation. These Toit has sufficient experience which is relevant to the style of Edition on the basis that the information has not materially changed statements are based on current expectations and beliefs and, by their mineralisations and type of deposits under consideration and to the activity nature, are subject to a number of known and unknown risks and since it was last reported. Mr Maynard consents to inclusion in this which he is undertaking to qualify as a Competent Person as defined in the presentation of the matters based on this information in the form and uncertainties that could cause the actual results, performances and 2012 Edition of the Australasian Code for Reporting of Exploration Results, context in which it appears. achievements to differ materially from any expected future results, Mineral Resources and Ore Reserves (the “JORC Code, 2012 Edition”). performance or achievements expressed or implied by such forward The information from Mr du Toit was prepared under the JORC Code, 2012 looking statements. No representation, warranty or assurance (express or Edition. Mr du Toit consents to inclusion in this presentation of the matters implied) is given or made by MRC that the forward looking statements based on this information in the form and context in which it appears. contained in this presentation are accurate, complete, reliable or adequate The information, if any, in this presentation that relates to metallurgy for the or that they will be achieved or prove to be correct. Except for any Munglinup Graphite Project is based on information compiled and statutory liability which cannot be excluded, each of MRC, its related reviewed by Mr David Pass, who is a Member of AusIMM. Mr Pass is an companies and the respective officers, employees and advisers expressly employee of Battery Limits Pty Ltd. Mr Pass has sufficient experience disclaim any responsibility for the accuracy or completeness of the forward relevant to process plant and infrastructure design thereof to qualify as a looking statements and exclude all liability whatsoever (including Competent Person as defined by the JORC Code, 2012 Edition. Mr Pass negligence) for any director in direct loss or damage which may be consents to the inclusion in this presentation of the matters based on the suffered by any person as a consequence of any information in this reviewed information in the form and context in which it appears. presentation or any error or omission there from. 2
SNAPSHOT - 2017 FULL YEAR RESULTS Total Revenue US$62.6 million (2016: US$27.1 million) For personal use only Underlying Group EBITDA US$19.1million (2016: US$10.9 million) Reported earnings (NPAT) US$9.9 million (2016: US$3.8 million) Capital expenditure US$5.4 million (2016: US$6.8 million), including US$2.5 million Munglinup Project farm-in Cash balances US$11.0 million (2016: US$2.9 million) Earnings per share US2.39 cents (2016: US0.93 cents) Dividend AU1.2 cents (Interim: AU0.5 cents paid; Final: AU0.7 cents declared) (2016: AU1.2 cents) Unit revenue US$113.33/wmt (2016: US$163.27/wmt) Unit cash costs of production US$27.89/dmt (2016: $27.03/dmt) Unit costs of goods sold US$77.47/dmt (2016: US$99.29/dmt) 3
2017 OVERVIEW AND ACHIEVEMENTS For personal use only ● Currently operating the highest grade mineral sands mine in the world - Tormin, South Africa Defined near-term Tormin Expansion Project currently in the pipeline ● ● Defined near-term Munglinup Graphite Project currently in the pipeline Iran mining sector - first mover advantage ● ● Australian exploration prospects Highly experienced Board & Management team ● ● Short term business strategy fully funded from existing cash flow Peer leading dividend yield stock ● 4
SUMMARY - 2017 GROUP RESULTS 2017 2016 For personal use only Product revenue US$m 60.93 26.9 Mining and processing costs US$m (43.4) (17.3) Group EBITDA US$m 19.1 10.9 Group EBIT US$m 13.2 7.0 Profit before income tax US$m 14.0 6.6 Income tax expense US$m (4.0) (2.8) Profit after income tax US$m 9.9 3.8 Earnings per share US cents per share 2.39 0.93 Dividends - unfranked AU cents per share 1.20 1.20 Dividend yield % 9.2% 9.2% Payout ratio % 39.33% 92.47% 5
2017 REVENUE AND PROFITABILITY For personal use only US$ 19.1m US$ 62.6m US$ 9.9m 75.2% on 131% on 161% on Prior Yr Prior Yr Prior Yr 2017 EBITDA 2017 Revenue 2017 NPAT REVENUE (US$m) EBITDA (US$m) NPAT (US$m) 6
2017 CASHFLOWS AND CASH POSITION US$ 5.4m US$ 11.0m US$ 22.3m 21.5% on 409% on 279% on For personal use only Prior Yr Prior Yr Prior Yr 2017 Capital Expenditure 2017 Cash Balance 2017 Cashflow from Operations Cashflow from Operations (US$m) Capital Expenditure (US$m) Cash Balance (US$m) (1) Excludes US$0.9m capital expenditure associated with the issue of 10m MRC shares relating to a 51% acquisition of the Munglinup Graphite Project. 7
2017 NET CASH MOVEMENT (US$ 000’s) For personal use only 8
2017 FINANCIAL POSITION US$ 15.8m For personal use only US$ 4.2m US$ 45.9m 119% on 43.2% on 25.4% on Prior Yr Prior Yr Prior Yr 2017 Net Working 2017 Net Assets 2017 Borrowings Capital Net Working Capital (US$m) Borrowings (US$m) Net Assets (US$m) 9
2017 SHAREHOLDER RATIOS AU Cents 1.20 For personal use only US Cents 2.45 US Cents 11.07 Maintained 22.45% on 163% on Prior at 2016 Prior Yr Yr levels 2017 Earnings Per Share 2017 Net Assets Per Share 2017 Dividends Per Share Earnings Per Share (US Cents) Dividends Per Share (AU Cents) Net Assets Per Share (US Cents) 10 (1) Interim: AU0.5 cent paid; Final: AU0.7 cent declared
For personal use only PROJECT MAP Iran MRK PJSC 100% Corporate Holding Entity Transworld Energy & Minerals Resources (SA) (Pty) Ltd (RSA) 56% Ownership of Xolobeni Mineral Sands Project MRC Graphite Pty Ltd 51% Ownership of Munglinup 11 Graphite Project MRC Exploration Mineral Sands Resources Australia Pty Ltd (Pty) Ltd (RSA) 100% Corporate Entity 50% Ownership of Tormin Mineral Sands Mine 11 11
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