Results presentation. 30 & 31 August for the year ended 30 June 2017* * Preliminary reviewed results released on SENS on 30 August 2017

Transcription

1 Results presentation for the year ended 30 June 2017* 30 & 31 August 2017 * Preliminary reviewed results released on SENS on 30 August 2017

2 EXECUTIVE MANAGEMENT TEAM 2 Charles Walters Ross Davies Tiaan van Aswegen Patrick Sacco Chief Executive Officer Chief Financial Officer Director : Operations and Growth Director : Sales & Marketing

3 GROUP STRUCTURE 3 Boleng Trust Fricker Rd & Assore Employee Trusts Oresteel Investments (Pty) Ltd Public Shareholders 14% 12% 52% 22% Assore Ltd 50% 100% 100% 29% Assmang Assore Operations Assore Services IronRidge Khumani Dwarsrivier Ore & Metal Beeshoek Black Rock RMDC (56%) Minerais (51%) Exploration Cato Ridge Sakura (54%) CRA (50%) ZCM Wonderstone African Mining & Trust

4 GROUP PROFILE 4 Assmang (50%) Iron Ore Mines SA 17.5 million mt Iron Ore 85% export Beeshoek & Khumani Manganese Ore Mines SA 3.3 million mt Manganese Ore 90% export Nchwaning & Gloria Cato Ridge Works SA 70 kt High Carbon FeMn 95% export Cato Ridge Alloys (50%) SA 60 kt Med Carbon FeMn 90% export Sakura Ferro Alloys (54%) Malaysia 220 kt High Carbon FeMn 99% export Assore Operations (100%) Dwarsrivier Mine SA 1.3 million mt Chrome Ore 95% export Wonderstone SA 5,000 mt Pyrophyllite 90% export Assore Services (100%) Ore & Metal Sales, Marketing & Logistics Service to Assmang and Assore operations AMT Technical and Management Services to Assmang and Assore operations Iron Ridge (29.9%) Iron Ridge AIM-listed exploration company

5 RESULTS HIGHLIGHTS 5 Record headline and attributable earnings Excellent contribution from Dwarsrivier (incorporated for first full year) Record sales volumes of iron ore and chrome ore Good progress with Black Rock expansion project (82% complete, 4 million mt by 2020) Capital Expenditure Assmang R2 826 million (2016: R2 978 million including R149 million at Dwarsrivier) Assore Operations R150 million (2016: R26 million excluding Dwarsrivier) Excellent management of mining costs per ton in all operations Prices achieved significantly higher than prior year Excellent safety performance at all operations Currency strengthened 5% year-on-year Free cash flow after capex R2 858 million (2016: R1 075 million) Dividend increased to R14 per share (2016: R7 per share)

6 RESULTS HIGHLIGHTS 6 Revenue Profit before tax 146% R7 224 m 518% R2 472 m Attributable earnings Headline earnings 226% R5 021 m 199% R5 209 m Cash generated by operations Free cash flow 306% R2 985 m 166% R2 858 m EPS DPS 227% R48.67 R %

7 SALES VOLUMES ( 000 metric tons) 7 Commodity % change Iron Ore % Manganese Ore* * excluding sales to Cato Ridge Works % Manganese Alloys % Chrome Ore %

8 AVERAGE INDEX PRICES (USD) 8 Commodity % change Iron Ore (62% Fe CFR China) USD/mt Manganese Ore (44% Mn CIF China) USD/dmtu Chrome Ore (44% Cr CIF China) USD/mt % % %

9 ATTRIBUTABLE EARNINGS (R m) JUNE 2013 JUNE 2014 JUNE 2015 JUNE 2016 JUNE 2017 Assmang 50% Assore Services Assore Operations

10 HEADLINE EARNINGS (R m) v IRON ORE PRICE (USD / mt) JUNE 2013 JUNE 2014 JUNE 2015 JUNE 2016 JUNE H1 H2 Iron Ore Price (RHS)

11 HEADLINE EARNINGS & DIVIDEND DECLARED (R m) JUNE 2013 JUNE 2014 JUNE 2015 JUNE 2016 JUNE 2017 Headline Earnings Dividend (Gross)

12 ATTRIBUTABLE EARNINGS BY COMMODITY 12 R million % (5%) 26% (8%) 5% 48% (92%) JUNE 2013 JUNE 2014 JUNE 2015 JUNE 2016 JUNE Iron Ore Manganese Chrome Ore Other 2017 (2016)

13 R million CASH FLOW ANALYSIS Net cash 30 Jun 2016 Operating cash flows before WC Working capital Net interest earned Assmang dividends Dividends paid (net) Taxation paid Net additions to PPE and intangibles Net cash 30 Jun 2017

14 MARKET TRENDS Description of picture

15 IRON ORE PRICE (Fe 62% Fines CFR China USD / mt) Fe 62% Source: S&P Global Platts

16 IRON ORE LUMP PREMIUM (USD / mt monthly average) Lump Prem $/ton Source: S&P Global Platts

17 MANGANESE ORE PRICES (USD / dmtu) % Semi Carbonate (FOB PE) 44% Oxide (CIF China) Source: Metal Bulletin

18 MANGANESE ALLOY PRICES (USD / mt) HCFeMn MCFEMn SiMn Source: CRU

19 CHROME ORE PRICES (USD / mt) % Conc UG2 Source: CRU

20 OUTLOOK Description of picture

21 OUTLOOK 21 Synchronised economic growth around the world Positive fundamentals in Chinese steel industry driving demand for ores Iron ore supply from Australia and Brazil likely to weigh on market Mining Charter uncertainty negative for the industry Assore well-positioned for both challenges and opportunities ahead

22 QUESTIONS Description of picture