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INVESTOR PRESENTATION
Engineered Excellence
GLOBAL UNDERGROUND MINING PLATFORM
GLOBAL UNDERGROUND MINING PLATFORM
23 April 2014
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• Safety• Structure & Service Offering• Client Base• Contracting Arrangements• Market Characteristics
AGENDA
222
Engineered Excellence
• Prospects• Growth & Focus Areas
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• “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
SAFETYA CRITICAL DIFFERENTIATING FACTOR
Engineered Excellence
– 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
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• Safety• Structure & Service Offering• Client Base• Contracting Arrangements• Market Characteristics
AGENDA
Engineered Excellence
• Prospects• Growth & Focus Areas
4
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STRUCTUREUNDERGROUND MINING PLATFORM HAS A GLOBAL
FOOTPRINT
Rouyn-Noranda
North Bay
Sudbury
Salt Lake City
Hong Kong
13
24
Engineered ExcellenceOfficesTendering projectsCurrent projects
Major projects by region Smaller projects by region
Santiago
Accra
Kitwe
JohannesburgKalgoorlie
Perth2
12
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Service Offering
Murray & Roberts Cementation
Cementation Canada *
RUC Cementation
Mine development: Shaft sinking, raise boring, underground development/equipping
Contract mining
Specialist Engineering
SERVICE OFFERINGWORLD’S LEADING UNDERGROUND MINING CONTRACTOR
Engineered Excellence
Positioning -Differentiator
�Africa’s leading underground mining contractor
�Design-build capability�World-class training facility
�Manufactures own raise boring machines
�Operates largest raise-boring fleet in Australasia
�Asian capacity & track record
�One of the largest mine contractors in North America
�In depth Engineering expertise�Excel at client relationship management
Contract mining
* Includes Cementation USA & Cementation Sudamérica
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PROJECTS
Engineered Excellence7
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AGENDA
• Safety• Structure & Service Offering• Client Base• Contracting Arrangements• Market Characteristics• Prospects
Engineered Excellence
• Prospects• Growth & Focus Areas
8
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CLIENT BASEFOCUS ON TOP-TIER MINING CLIENTS
ST
RAT
EG
Y T
O D
EV
ELO
P L
IFE
-OF
-MIN
E
RE
LAT
ION
SH
IPS
WIT
H T
OP
-TIE
R M
ININ
G
CLI
EN
TS
Kennecott (USA)Diavik (Canada)Resolution (USA)Oyu Tolgoi (Mongolia)
Totten (Canada)Lubambe (Zambia)
Grasberg (Indonesia)
Wessels (RSA)Kuthala (RSA)Resolution (USA)
Engineered Excellence
ST
RAT
EG
Y T
O D
EV
ELO
P L
IFE
RE
LAT
ION
SH
IPS
WIT
H T
OP
CLI
EN
TS
Mufilira Deeps(Zambia) Mopani Synclinorium Shaft (Zambia)George Fischer (Australia)Fraser (Canada)
Hoyle Pond (Canada)
South Deep (RSA)Agnew (Australia)St Ives (Australia)
Vlaklaagte (RSA)Kriel (RSA
Impala 20# Infrastructure (RSA)
Snap Lake (Canada)Venetia (RSA)
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• Safety• Structure & Service Offering• Client Base• Contracting Arrangements• Market Characteristics• Prospects
AGENDA
Engineered Excellence
• Prospects• Growth & Focus Areas
10
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CLI
EN
T R
ISK
CO
NT
RA
CTO
R R
ISK
CONTRACTING ARRANGEMENTSPLATFORM RISK PROFILE
Engineered Excellence
Cost Plus %Cost Reimbursable
+ Fee Target Cost RatesLump Sum
Turnkey
CLI
EN
T R
ISK
CO
NT
RA
CTO
R R
ISK
CONTRACT TYPE
RUCC Cementation USA Cementation Canada M&R Cementation 11Bubble size represents relative Order Book
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AGENDA
• Safety• Structure & Service Offering• Client Base• Contracting Arrangements• Market Characteristics
Engineered Excellence
• Prospects• Growth & Focus Areas
12
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MARKET CHARACTERISTICSDEPRESSED MARKET CONDITIONS SET TO CHANGE
Annual Global Mineral Capital Investment ($Bn)
110 1052014-30
2012-13• Project deferments, cancellations, scope
reductions• Client focus on cost saving & capital
preservation • Increased competition amongst
contractors• Average annual capex spend $109 Bn
215
Engineered Excellence
46 632003-13
• Average annual capex spend $109 Bn
2014-30• Average annual capex spend set to
double, exceeding 2012 peak• Driven by increasing population size &
urbanisation• The Americas to lead capex spend with
Africa & Australia still major consumers• Projected shortage of capacity to meet
demand in key commodities
Growth capex Replacement capex
109
Cumulative investment projected to reach $3.8 Tn by 2030
13Source: McKinsey & Co. Resources Survey 2013, Intierra RMG state of market 2013, FTC Analysis
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AGENDA
• Safety• Structure & Service Offering• Client Base• Contracting Arrangements• Market Characteristics
Engineered Excellence
• Prospects• Growth & Focus Areas
14
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� Order book opportunities
- South Africa: Venetia, Impala, Kalagadi Manganese, Tumela
- Zambia: Lubambe, Mopani
- Mauritania: Tazadit
Cementation Africa
� Encouraging signs of market improvement in Canada & USA
� European opportunities on the increase
PROSPECTSSHORT TO MEDIUM TERM PROSPECTS ENCOURAGING
OP
ER
AT
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AL
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CE
LLE
NC
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BU
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ALI
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ME
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Engineered Excellence
� European opportunities on the increase
� First raise boring contract in Chile under new structure
� Increase in tendering activity in Peru
Cementation Canada
� Tough market conditions persist in Australia
� Continue to increase scope of work at Freeport (Indonesia)
� Completing first raise boring contract in Philippines
� Await re-commencement of Oyu Tolgoi (Mongolia)
RUC Cementation
OP
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Global Underground Mining Platform is active in mos t of the high activity regions worldwide and well positioned to exploit im proved market conditions
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• Safety• Structure & Service Offering• Client Base• Contracting Arrangements• Market Characteristics• Prospects
AGENDA
Engineered Excellence
• Prospects• Growth & Focus Areas
16
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� Refine and drive focussed African strategy
- Leverage Group’s African regional hub & spoke structure
� Secure (large) local mining contracting project
Cementation Africa
(Organic)
� Increase North America market penetration (Quebec)
� Selective European strategy – Engineering DrivenCementation Canada
GROWTH & FOCUS AREASBOTH ORGANIC & ACQUISITION DRIVEN
OP
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Engineered Excellence
� Selective European strategy – Engineering Driven
� Focus on South America via strategic partnerships
� Pursue a suitable acquisition in the America’s
Cementation Canada
(Organic / Acquisition)
� Expand mine development service offering
� Consolidate local market position (raise boring)
� Further develop Asia Pacific Rim market
RUC Cementation
(Organic)
OP
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AL
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BU
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Significant organic growth opportunities exist when market conditions improve: Suitable acquisition will further bolster growth
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VENETIA PROJECTFIRST BLAST IN THE DECLINE IN MARCH
Engineered Excellence18
A project that highlights a key strength namely the ability to pool expertise & skills across the platform to ensure/enable proje ct delivery
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THANK YOUTHANK YOU
Engineered Excellence