resources for personal use only limited...• initial shipment of blended iron ore fines cargo sold...

MineralResourcesLimited

An integrated supplier of goods and services to the Resources Sector

FY 2007 Results

“Growing Strongly”August, 2007

Peter Wade, Managing DirectorBruce Goulds, Chief Financial Officer

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Consolidated Group StructureConsolidated Group Structure

Mineral Resources LimitedACN 118 549 910

“An integrated supplier of goods and services to the Resource sector”

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Board and ManagementBoard and Management

* Non-Executive Director - Additional Appointment Pending

*

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About Mineral Resources LimitedAbout Mineral Resources Limited

• Listed on the ASX in July, 2007 (ASX: MIN)

• Formed through the consolidation of 3 associated, long established and successful operations into integrated mining services and processing company

• PIHA – manufacturing and contracting business involved in construction of pipelines and site infrastructure formed in 1993

• CSI – successful contract crushing company with a build, own, operate business model formed in 1995

• PMI – minerals processing company formed in 1996For

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AgendaAgenda

11 HighlightsHighlights

2 Financial Results and Analysis

3 Operational Review

4 Outlook

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Highlights Highlights -- OperationalOperational• Consolidation of listed entity with successful integration of Board and

management

• Maintenance of world best practice HSE results

• Improved manganese market demand and sales price

• Engagement of drilling contractors for sampling on Philippine iron sands tenements

• Extensive pipeline of project opportunities

• Sales of blended iron ore product to China

• Critical skills shortages and material cost increases requiring significant management focus

• Contract crushing projects achieving client outcomes

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Export of Blended Iron Ore Product

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Highlights Highlights –– FinancialFinancialFY 2007FY 2007

• NPAT of $20.167 million – an increase of 96% over FY 2006 and 47% ahead of Prospectus forecasts

• Strong growth in manganese prices over last 6 months

• Debt to Equity ratio 11.7% with strong cash generation

• Interest cover 18 times

• 50% dividend payout confirmed

• Balance sheet strength to support growth targets

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Financial ComparisonActual Performance

Year on Year

96.1%10.320.2NPAT

64.3%23.037.8EBITDA40.5%105.9148.8Revenue

Variance %FY 2006 Actual

FY 2007 Actual

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Financial ComparisonProspectus Forecast

47.4%13.720.2NPAT

9.6%34.537.8EBITDA23.3%120.7148.8Revenue

Variance

%

FY 2007

Prospectus Forecast

FY 2007 Actual

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World Best Practice HSE World Best Practice HSE PerformancePerformanceJuly, 2007July, 2007

0

4

8

12

16

20

Lost T ime In ju ry

F r e q u e n c y R a t i o

(LT IFR)

P M I CSI PIHA Mineral Resources Industry Average

LTIFR = Number o f Los t T ime In jur ies

Number o f Hours Worked x 1 ,000 ,000

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AgendaAgenda

1 Highlights



4 Outlook

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Financial PerformanceFinancial Performance

148.8Revenue

16.9EPS (cents)

25.4%EBITDA / Revenue

20.2NPAT

5.4Tax Expense

25.6PBT

1.5Interest

27.1EBIT

10.7Depreciation

37.8EBITDA

FY 2007 $AUD millions

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Balance Sheet Strength to Facilitate Balance Sheet Strength to Facilitate GrowthGrowth

6.3Recommended fully franked dividend for record on 13 October ’07 and payable on 15 November ‘07

June 2007

11.7%Debt : Equity

18Interest Cover (times) [EBIT / Interest]

26.7%ROE % [NPAT (annualised) / Total Equity]

35.8%ROFE % [EBIT (annualised) / Funds Employed]

7.384.577.2Funds Employed

(66.0%)24.7(8.8)(33.5)Net Debt (inc. cash balances)

47.1%32.075.743.7Net Assets

(4.5%)2.1(82.0)(79.9)Total Liabilities

13.8%34.1157.7123.6Total Assets

% Change$ ChangeJune 2007June 2006$AUD millions

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Strong Operational CashflowsStrong Operational Cashflows

20.7Total Increase in Cash

1.6Financing Cashflow

12 months to June 2007

$AUD millions

19.1Net Operating and Investing Cashflow

(6.3)Working Capital and Other

(1.5)Net Interest Payments

(11.0)CAPEX (net)

37.9EBITDA

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Revenue PerformanceRevenue Performance

0

20

40

60

80

100

120

140

160

$mill

ion

FY 2003 FY 2004 FY 2005 FY 2006 Prospectus2007

FY 2007Actual

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EBITDA PerformanceEBITDA Performance

0

5

10

15

20

25

30

35

40

$ m

illio

n

FY 2003 FY 2004 FY 2005 FY 2006 Prospectus2007

FY 2007Actual

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AgendaAgenda

1 Highlights



4 Outlook

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Operational Review of Operational Review of FY2007 PerformanceFY2007 Performance

• Successful consolidation of privately owned companies into ASX listed MIN

• Processing operation expanding business opportunities supported by increased manganese demand and sales prices

• Contracting and crushing operations performing solidly albeit affected by skills shortages and cost increases

• Resources and mineral processing sectors continue strong demand

• Strong project pipeline opportunities

• Labour, consumables, shipping and AUD costs increased over the year and impacted financial outcomes

• Balance sheet strength to support capital plant opportunities and potential acquisitions

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Review of Contracting Services Review of Contracting Services OperationsOperations

• Market leader in niche contracting markets of pipelining, polyethylene fittings manufacture and mine site infrastructure and services installation

• Overseas contracts for pipelining, fittings and poly welding operations awarded – New Caledonia, Myanmar, Brunei, Indonesia

• Targeting longer term maintenance and site support contracts

• Significant short term pipeline and pipelining opportunities being negotiated

• Workshop facilities and construction fleet upgraded to meet anticipated demand requirements

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Trenching Machine

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Tailins Dam Pipework

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Pipe Laying Operation

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Review of Contract Crushing Review of Contract Crushing OperationsOperations

• All existing sites achieving world best practice for HSE

• All production targets for clients have been met

• Plant and equipment inventory supports project opportunities

• Confirmed focus on personnel safety and plant maintenance as key drivers for performance and reputation

• Cost management controls are major focus for current and new contracts

• Continued focus by management on staff recruitment and training

• Successful organic growth of site operations

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Site Construction Work

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Gyratory Crusher Installation

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Secondary Crusher Feed

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Review of Processing OperationsReview of Processing Operations

• Manganese processing plant at Woodie Woodie continued to achieve target throughput.

• 280,000 tonne per annum manganese fines contract with CITIC formalised in January, 2007 and initial shipments were achieved

• Strong AUD /USD forex and increased shipping costs impact manganese profitability but offset by increased demand and sales price over Q3/Q4 of financial year 2007.

• Initial shipment of blended iron ore fines cargo sold to China; residual cargos being marketed for export in Q1/Q2 of financial year 2008

• Planning for development of iron sands project in Philippines progressing with nomination of 2 tenements with exploration leases selected for initial drilling and sampling program.F

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Blended Iron Ore Stockpiles

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Manganese Product in Stockpile

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Manganese for Export at Port Hedland

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AgendaAgenda

1 Highlights

2 Financial Results & Analysis


4 Outlook

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Outlook Outlook -- MarketMarket• Strengthening demand and pricing for manganese has continued; demand

expected to remain strong for next quarter

• Continuing strong global demand for commodities albeit with some price weakness for selected metals

• ‘China story’ to remain expansive in the long term with supplementary growth from India, Russia and East Asia

• Cost pressures and supply side constraints promote outsourcing culture

• National infrastructure improvements and upgrades foreshadowed by Government – water, power, environment

• Significant junior mining company production activity planned

• Iron ore market factors in increased pricing for 2008 contracts which adds value to proposed Philippines iron sands project

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Abare Research Report 07.3

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Abare Australian Commodities March 07

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ChinaChina’’s Iron Ore Consumptions Iron Ore Consumptionand Importsand Imports

Abare Australian Commodities March 07

0100200300400500600700800

2001 2002 2003 2004 2005 2006 2007 2008 2009

Mt

consumption imports

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Australian Iron Ore ExportsAustralian Iron Ore Exports

150170190210230250270290310330350

2005 2006 2007e 2008e 2009e

Mt

Source: Abare March 2007

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Outlook Outlook -- OperationalOperational• Continuing focus on HSE quality performance to maintain world best

practice

• Presentation of sampling results for iron sands tenements in Philippines

• Increased production of manganese at Woodie Woodie operation.

• Export of residual blended iron ore product.

• Expansion of pipe lining prospects within Australian and overseas

• Organic growth from existing contract crushing opportunities

• Commencement of development projects for selected junior mining companies

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Outlook Outlook -- CorporateCorporate• Additional Non-Executive Director to be added to the Board

• Balance sheet capable of supporting significant additional projects and acquisition initiatives

• Dividend payout ratio of 50% confirmed by Board as long term commitment

• Continuation of skills training and labour procurement strategies utilising local and overseas labour sources

• Capital raising for future capital intensive contracting opportunities

• Continuation of research and development programmes to expand business opportunities

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Outlook Outlook –– Business StrategyBusiness Strategy

• Maintain core business focus

• Add value to clients and shareholders and maintain strong clientrelationships

• Strengthen Board, management and operating team

• Grow business as measured by earnings per share, client listing and company reputation

• Acquisition of complementary, earnings accretive business operations

• Implement Philippines iron sands processing operation as part ofgeographic and commodity diversification strategy

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Business ModelBusiness Model

Success in Outcomes

Integrated supplier of goods and services to the resources

sector

Contract crushingMineral processingInfrastructure and

mining sector services

Acquisitions

HSE performanceMargins and profitabilityCost control

Client relationshipsRisk management

Safety recognitionIncreased NPATIncreased ROFEIncreased EPS

Reduced gearingReputation

Focus AreasMarket Opportunities

Core Business

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Our PeopleOur PeopleF

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resources for personal use only limited...• initial shipment of blended iron ore fines cargo sold...

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