INVESTOR PRESENTATION GLOBAL UNDERGROUND MINING GLOBAL UNDERGROUND MINING PLATFORM PLATFORM Engineered Excellence 23 April 2014
AGENDA • Safety • Structure & Service Offering • Client Base • Contracting Arrangements 222 • Market Characteristics • Prospects • Growth & Focus Areas Engineered Excellence 2
SAFETY A CRITICAL DIFFERENTIATING FACTOR • “We Build Mines Safely” • Fully support Murray & Roberts Group’s HSE Framework – Focus on Lead Indicators • High Potential Incidents, Enforcement of FRCP’s, Near Miss Reporting, VFL • OHSAS 18001 accreditation – Entrenchment of Stop.Think.Act.24/7 – Entrenchment of Stop.Think.Act.24/7 • Platform year to date LTIFR <2 – CUSA, RUCC & CC are 26, 9 & 7 months respectively LTI-free – MRC recently achieved 2½ months without an LTI • Tragically a fatality occurred at Mopani (Zambia) shaft sinking project • Clients’ emphasis on safety performance cannot be underestimated Engineered Excellence 3
AGENDA • Safety • Structure & Service Offering • Client Base • Contracting Arrangements • Market Characteristics • Prospects • Growth & Focus Areas Engineered Excellence 4
STRUCTURE UNDERGROUND MINING PLATFORM HAS A GLOBAL FOOTPRINT 13 Sudbury Rouyn-Noranda Salt Lake City North Bay 2 4 Hong Kong Accra 12 Kitwe Kalgoorlie Johannesburg 2 Santiago Perth 12 Current projects Tendering projects Offices Engineered Excellence Major projects by region Smaller projects by region
SERVICE OFFERING WORLD’S LEADING UNDERGROUND MINING CONTRACTOR Murray & Roberts RUC Cementation Cementation Cementation Canada * Mine development: Shaft sinking, raise boring, underground development/equipping Service Specialist Engineering Offering Contract mining Contract mining � Africa’s leading underground � Manufactures own raise � One of the largest mine mining contractor boring machines contractors in North America Positioning - � Design-build capability � Operates largest raise-boring � In depth Engineering expertise Differentiator � World-class training facility � Excel at client relationship fleet in Australasia � Asian capacity & track record management * Includes Cementation USA & Cementation Sudamérica Engineered Excellence 6
PROJECTS Engineered Excellence 7
AGENDA • Safety • Structure & Service Offering • Client Base • Contracting Arrangements • Market Characteristics • • Prospects Prospects • Growth & Focus Areas Engineered Excellence 8
CLIENT BASE FOCUS ON TOP-TIER MINING CLIENTS Kennecott (USA) TOP-TIER MINING OP LIFE-OF-MINE Diavik (Canada) Grasberg (Indonesia) Resolution (USA) Oyu Tolgoi (Mongolia) Wessels (RSA) Totten (Canada) Kuthala (RSA) Lubambe (Zambia) Resolution (USA) RELATIONSHIPS WITH TO STRATEGY TO DEVELOP TS CLIENTS South Deep (RSA) Impala 20# Infrastructure Agnew (Australia) (RSA) St Ives (Australia) Snap Lake (Canada) Vlaklaagte (RSA) Venetia (RSA) Kriel (RSA Mufilira Deeps(Zambia) Mopani Synclinorium Shaft (Zambia) Hoyle Pond (Canada) George Fischer (Australia) Fraser (Canada) Engineered Excellence 9
AGENDA • Safety • Structure & Service Offering • Client Base • Contracting Arrangements • Market Characteristics • • Prospects Prospects • Growth & Focus Areas Engineered Excellence 10
CONTRACTING ARRANGEMENTS PLATFORM RISK PROFILE R RISK T RISK CLIENT R CONTRACTOR Lump Sum Cost Reimbursable Rates Cost Plus % Turnkey Target Cost + Fee CONTRACT TYPE Engineered Excellence RUCC Cementation USA Cementation Canada M&R Cementation Bubble size represents relative Order Book 11
AGENDA • Safety • Structure & Service Offering • Client Base • Contracting Arrangements • Market Characteristics • Prospects • Growth & Focus Areas Engineered Excellence 12
MARKET CHARACTERISTICS DEPRESSED MARKET CONDITIONS SET TO CHANGE Annual Global Mineral Capital Investment ($Bn) 2012-13 • Project deferments, cancellations, scope reductions • Client focus on cost saving & capital 110 105 preservation 2014-30 • Increased competition amongst 215 contractors • Average annual capex spend $109 Bn • Average annual capex spend $109 Bn Cumulative investment 2014-30 projected to reach $3.8 Tn • Average annual capex spend set to 46 63 2003-13 by 2030 double, exceeding 2012 peak 109 • Driven by increasing population size & urbanisation • The Americas to lead capex spend with Africa & Australia still major consumers Growth capex Replacement capex • Projected shortage of capacity to meet demand in key commodities Engineered Excellence Source: McKinsey & Co. Resources Survey 2013, Intierra RMG state of market 2013, FTC Analysis 13
AGENDA • Safety • Structure & Service Offering • Client Base • Contracting Arrangements • Market Characteristics • Prospects • Growth & Focus Areas Engineered Excellence 14
PROSPECTS SHORT TO MEDIUM TERM PROSPECTS ENCOURAGING � Order book opportunities UNIT ALIGNMENT ELLENCE AND Cementation Africa - South Africa: Venetia, Impala, Kalagadi Manganese, Tumela - Zambia: Lubambe, Mopani - Mauritania: Tazadit � Encouraging signs of market improvement in Canada & USA GREATER BUSINESS UN OPERATIONAL EXCEL � European opportunities on the increase � European opportunities on the increase Cementation Canada � First raise boring contract in Chile under new structure � Increase in tendering activity in Peru � Tough market conditions persist in Australia � Continue to increase scope of work at Freeport (Indonesia) RUC Cementation � Completing first raise boring contract in Philippines � Await re-commencement of Oyu Tolgoi (Mongolia) Global Underground Mining Platform is active in most of the high activity regions worldwide and well positioned to exploit improved market conditions Engineered Excellence 15
AGENDA • Safety • Structure & Service Offering • Client Base • Contracting Arrangements • Market Characteristics • • Prospects Prospects • Growth & Focus Areas Engineered Excellence 16
GROWTH & FOCUS AREAS BOTH ORGANIC & ACQUISITION DRIVEN UNIT ALIGNMENT � Refine and drive focussed African strategy ELLENCE AND Cementation Africa - Leverage Group’s African regional hub & spoke structure (Organic) � Secure (large) local mining contracting project � Increase North America market penetration (Quebec) GREATER BUSINESS UN OPERATIONAL EXCEL � Selective European strategy – Engineering Driven � Selective European strategy – Engineering Driven Cementation Canada Cementation Canada � Focus on South America via strategic partnerships (Organic / Acquisition) � Pursue a suitable acquisition in the America’s � Expand mine development service offering RUC Cementation � Consolidate local market position (raise boring) (Organic) � Further develop Asia Pacific Rim market Significant organic growth opportunities exist when market conditions improve: Suitable acquisition will further bolster growth Engineered Excellence 17
VENETIA PROJECT FIRST BLAST IN THE DECLINE IN MARCH A project that highlights a key strength namely the ability to pool expertise Engineered Excellence 18 & skills across the platform to ensure/enable project delivery
THANK YOU THANK YOU Engineered Excellence
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