THE PRESIDENTS REPORT 28 June 2017 AT A GLANCE 4,376 hectares - - PowerPoint PPT Presentation

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the president s report 28 june 2017 at a glance
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THE PRESIDENTS REPORT 28 June 2017 AT A GLANCE 4,376 hectares - - PowerPoint PPT Presentation

Dec 20, 2022 428 likes •577 views

THE PRESIDENTS REPORT 28 June 2017 AT A GLANCE 4,376 hectares Located in Sitio Kinalablaban MPSA No. 007-92-X Annual maximum Additional 843 hectares Brgy. Cagdianao Claver, valid until 20 June 2041 production volume adjacent to

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SLIDE 1

THE PRESIDENT’S REPORT 28 June 2017

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SLIDE 2

AT A GLANCE

WHAT IS SURFACE MINING? Our lateritic nickel deposits are near-surface and blanket-like

  • layers. The soft nature of the

topsoil and overburden allows us to conduct simple surface mining using trucks and excavators without drilling, blasting, the use of chemicals,

  • r complex waste handling.

Resources 50.3 million DMT Inferred 18.1 million DMT Reserves 23.1 million DMT PMIEA Titanium Achievement for Surface Mining Operation Most Improved Safety Performance Best Surface Mine Supervisor MPSA No. 007-92-X valid until 20 June 2041 4,376 hectares Additional 843 hectares adjacent to existing site Located in Sitio Kinalablaban

  • Brgy. Cagdianao Claver,

Surigao del Norte Annual maximum production volume 7.7 million WMT

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SLIDE 3

THRIVING UNDER INCREASED PRESSURES

Revenues Sale of Nickel Ore

P3.8 billion

Volume Mix Low vs. Med/High Grade

56% : 44%

Average realized price per WMT

US$17.9 843 hectares 4,376 hectares

Contract area renewed (valid until 20 June 2041) Additional rights acquired

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SLIDE 4

ENHANCING OVERSIGHT, REDUCING ASSET INTENSITY AND SAVING MONEY

Maintenance CAPEX Reduction

22%

Our standardized performance metrics for mining contractors

  • minimum production volume per day
  • stockpile inventory
  • volume of ore shipped
  • equipment efficiency
  • environment policies
  • safety policies

Average Mining Cost Reduction per WMT

30%

Net Income Attributable to Equity Holders

P37.5 million

Mining Contractors

9

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SLIDE 5

SUPPORTING BETTER ENVIRONMENTAL GOVERNANCE

Most Improved Safety Performance Award Presidential Mineral Industry Environmental Award (PMIEA) Titanium Achievement for Surface Mining Operation Best Surface Mine Supervisor Award

  • Engr. Royvel V. Jumalon
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SLIDE 6

MAKING IT WORTHWHILE FOR ALL

P468,123,961

Total taxes paid

P102,331,577 P49,103,752

Social Development and Management Program Environmental Protection and Enhancement Program

6,333,333 shares

Share buyback

85%

Workforce belonging to the local communities

4,000

Direct and indirect employment

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SLIDE 7

REINVESTING IN THE BUSINESS THROUGH FOCUSED MINERAL EXPLORATION

Measured and indicated resources Inferred resources Reserves

50.3 million DMT 18.1 million DMT 23.1 million DMT or 35.5 million WMT Stage-Approach Strategy

Exploration method

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SLIDE 8

...AND STEADILY RETURNING CASH TO OUR SHAREHOLDERS

3 Year Average Return on Equity

36%

3 Year Average Return on Assets

26% 33,433,333 shares

as of 27 Jun 2017

6,333,333 shares

Share buyback as of 31 Dec 2016 3 Year Average EBITDA Margin

32%

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SLIDE 9

MARKET REVIEW AND OUTLOOK

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SLIDE 10

LARGE ADDRESSABLE MARKETS CREATE LONG-TERM DEMAND

Urbanization and infrastructure modernization in Asia

2017–2020: 3% annual nickel demand growth

Battery systems for electric car

2016: 2 million units 2020: 9–20 million units 2025: 40–70 million units

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SLIDE 11

DEPRESSED PRICES BUILD SOLID FOUNDATION FOR TAKE OFF

100 150 200 250 300 350 400 450 500 550 600 650 700 5,000 10,000 15,000 20,000 25,000 30,000 2010 2011 2012 2013 2014 2015 2016 Nickel Ore Price (RMB) LME Nickel Price (US$) LME Nickel Price Nickel Ore Price Source: Bloomberg London Metal Exchange (LME) prices were referenced with 3-month contracts Nickel ore prices were referenced with Shanghai Metals Market China 1.4%- 1.6 % Nickel Ore Price Daily

The nickel market in China has been more resilient and is trading at a premium compared to LME futures due to a shortage

  • f ore supply in the physical market

Updates Year-to-date 2017 2016 Average price/WMT US$18.4 US$13.9 Volume (million WMT) 1,747 1,037 Vessels shipped 32 19

as of 27 Jun

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SLIDE 12

STRATEGIES that will help us realize

4

BIG goal:

1

a bigger, dynamic and high social impact enterprise

Commence production of

  • ur Palawan

mine Develop and upgrade existing resources and reserves within Cagdianao deposit areas Diversify into

  • ther minerals

and metals. Evaluate and selectively pursue value- added

  • pportunities such

as acquiring or entering into mining agreements or JVs, and downstream processing / vertical integration

01 02 03 04 05

STRATEGIES

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SLIDE 13

PROGRESSION

We set things in motion. Not through push and shove that might throw the inexperienced off balance, but with constant strides that encourage one to join our cause — that of responsibly mining the earth’s bounty for the valuable resources that hold our cities together and sustain our everyday lives. In bold yet steady and calculated steps, we move forward.