MINERAL COMMODITIES LTD — Investor Presentation 2018

Aug 30, 2018

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MINERAL COMMODITIES LTD 2018 HALF YEAR RESULTS PRESENTATION ASX: MRC | www.mineralcommodities.com

DISCLAIMER AND COMPETENT PERSON STATEMENT

This document has been prepared by Mineral Commodities Ltd (MRC or the Company) and comprises written materials / slides for a presentation concerning MRC. This is not a prospectus, disclosure document or offering document.

This document is for information purposes only and does not constitute or form part of any offer or invitation to acquire, sell or otherwise dispose of, or issue, or any solicitation of any offer to sell or otherwise dispose of, purchase or subscribe for, any securities, nor does it constitute investment advice, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.

Certain statements in this presentation are forward looking statements. You can identify these statements by the fact that they use words such as “anticipate”, “estimate”, “expect”, “project”, “intend”, “plan”, “believe”, “target”, “may”, “assume” and words of similar import. These forward looking statements speak only as at the date of this presentation. These statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause the actual results, performances and achievements to differ materially from any expected future results, performance or achievements expressed or implied by such forward looking statements. No representation, warranty or assurance (express or implied) is given or made by MRC that the forward looking statements contained in this presentation are accurate, complete, reliable or adequate or that they will be achieved or prove to be correct. Except for any statutory liability which cannot be excluded, each of MRC, its related companies and the respective officers, employees and advisers expressly disclaim any responsibility for the accuracy or completeness of the forward looking statements and exclude all liability whatsoever (including negligence) for any director in direct loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from.

Subject to any continuing obligation under applicable law or any relevant listing rules of the ASX, MRC disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements in these materials to reflect any change in expectations in relation to any forward looking statements or any change in events, conditions or circumstances on which any statement is based. Nothing in these materials shall under any circumstances create an implication that there has been no change in the affairs of MRC since the date of this presentation.

The information in this presentation which relates to Exploration Results, Mineral Resources or Ore Reserves for Tormin is based on information compiled by Mr Adriaan du Toit, who is a Member of the AusIMM and was previously an independent consultant to the Company. Mr du Toit is the Director and Principal Geologist of AEMCO Pty Ltd and has over 26 years’ exploration and mining experience in a variety of mineral deposits and styles. Mr du Toit has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code (2012). The information from Mr du Toit was prepared under the JORC Code (2012). Mr du Toit consents to inclusion in the report of the matters based on this information in the form and context in which it appears.

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H1 2018 HIGHLIGHTS

Operational

• Safety performance maintained – Total Recordable Injury Frequency Rate reduced to zero with no Lost Time Injuries recorded since April 2017

• Record PBC/TSP and GSP/SCP processing plants throughput (1,062,697t and 483,667t respectively), availability (+94%) and valuable mineral recoveries

• Final concentrate gross production at record levels – 352,492 tonnes

• S102 Application submitted for potential 10 year LOM extension

• Prospecting Right Environmental Authorisation issued

Financial

• Total Revenue of US$28.5 million

• EBITDA of US$4.8 million and NPAT of US$1.2 million

• Cash balance of US$10.2 million

• Debt decreased to US$3.0 million

• Trade and Other Receivables increased to US$9.5 million

• Record 55% increase pricing for zircon/rutile concentrate

• Final concentrate stockpile inventory to deliver future revenue of circa US$65 million and circa US$25 million in future net cash generation (pre-tax)

• Interim dividend of 0.6 Australian cent per share (partially franked)

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	4 Iran MRK PJSC 100% Corporate Entity Gold/Copper Cobalt/Nickel Zinc Potash/Lithium MRC Graphite Pty Ltd 51% Ownership of Munglinup Graphite Project Graphitic Products Transworld Energy & Minerals Resources (SA) (Pty) Ltd (RSA) 56% Ownership of Xolobeni Mineral Sands Project Rich Ilmenite Mineral Sands Resources (Pty) Ltd (RSA) 50% Ownership of Tormin Mineral Sands Mine Zircon/Rutile Ilmenite Garnet Projects Location Resource Interest Status MSR Tormin South Africa Mineral Sands Mine 50% Commenced operation October 2013, potential extension to mine life identified TEM Xolobeni South Africa Mineral Sands Project 56% Rich ilmenite mineral sands deposit on the Eastern Cape of South Africa Munglinup Australia Graphite 51% (earn-in to 90%) Feasibility study in progress, planned production Q4 2019 WA Exploration Australia Gold, Copper, Lithium, Channel Iron Ore, Vanadium 100% Drill program completed at Doolgunna on high grade gold target, results pending. Secondary drilling program to commence Iran Iran Gold, Copper, Potash, Lithium, Cobalt, Nickel, Zinc 100% of corporate entity Reviewed in excess of 36 mining projects. Four project investments to date including operating gold mine PROJECT LOCATIONS MRC Exploration Australia Pty Ltd 100% Corporate Entity Copper/Gold Channel Iron Ore Hard Rock Lithium, Vanadium	4 Iran MRK PJSC 100% Corporate Entity Gold/Copper Cobalt/Nickel Zinc Potash/Lithium MRC Graphite Pty Ltd 51% Ownership of Munglinup Graphite Project Graphitic Products Transworld Energy & Minerals Resources (SA) (Pty) Ltd (RSA) 56% Ownership of Xolobeni Mineral Sands Project Rich Ilmenite Mineral Sands Resources (Pty) Ltd (RSA) 50% Ownership of Tormin Mineral Sands Mine Zircon/Rutile Ilmenite Garnet Projects Location Resource Interest Status MSR Tormin South Africa Mineral Sands Mine 50% Commenced operation October 2013, potential extension to mine life identified TEM Xolobeni South Africa Mineral Sands Project 56% Rich ilmenite mineral sands deposit on the Eastern Cape of South Africa Munglinup Australia Graphite 51% (earn-in to 90%) Feasibility study in progress, planned production Q4 2019 WA Exploration Australia Gold, Copper, Lithium, Channel Iron Ore, Vanadium 100% Drill program completed at Doolgunna on high grade gold target, results pending. Secondary drilling program to commence Iran Iran Gold, Copper, Potash, Lithium, Cobalt, Nickel, Zinc 100% of corporate entity Reviewed in excess of 36 mining projects. Four project investments to date including operating gold mine PROJECT LOCATIONS MRC Exploration Australia Pty Ltd 100% Corporate Entity Copper/Gold Channel Iron Ore Hard Rock Lithium, Vanadium	4 Iran MRK PJSC 100% Corporate Entity Gold/Copper Cobalt/Nickel Zinc Potash/Lithium MRC Graphite Pty Ltd 51% Ownership of Munglinup Graphite Project Graphitic Products Transworld Energy & Minerals Resources (SA) (Pty) Ltd (RSA) 56% Ownership of Xolobeni Mineral Sands Project Rich Ilmenite Mineral Sands Resources (Pty) Ltd (RSA) 50% Ownership of Tormin Mineral Sands Mine Zircon/Rutile Ilmenite Garnet Projects Location Resource Interest Status MSR Tormin South Africa Mineral Sands Mine 50% Commenced operation October 2013, potential extension to mine life identified TEM Xolobeni South Africa Mineral Sands Project 56% Rich ilmenite mineral sands deposit on the Eastern Cape of South Africa Munglinup Australia Graphite 51% (earn-in to 90%) Feasibility study in progress, planned production Q4 2019 WA Exploration Australia Gold, Copper, Lithium, Channel Iron Ore, Vanadium 100% Drill program completed at Doolgunna on high grade gold target, results pending. Secondary drilling program to commence Iran Iran Gold, Copper, Potash, Lithium, Cobalt, Nickel, Zinc 100% of corporate entity Reviewed in excess of 36 mining projects. Four project investments to date including operating gold mine PROJECT LOCATIONS MRC Exploration Australia Pty Ltd 100% Corporate Entity Copper/Gold Channel Iron Ore Hard Rock Lithium, Vanadium	4 Iran MRK PJSC 100% Corporate Entity Gold/Copper Cobalt/Nickel Zinc Potash/Lithium MRC Graphite Pty Ltd 51% Ownership of Munglinup Graphite Project Graphitic Products Transworld Energy & Minerals Resources (SA) (Pty) Ltd (RSA) 56% Ownership of Xolobeni Mineral Sands Project Rich Ilmenite Mineral Sands Resources (Pty) Ltd (RSA) 50% Ownership of Tormin Mineral Sands Mine Zircon/Rutile Ilmenite Garnet Projects Location Resource Interest Status MSR Tormin South Africa Mineral Sands Mine 50% Commenced operation October 2013, potential extension to mine life identified TEM Xolobeni South Africa Mineral Sands Project 56% Rich ilmenite mineral sands deposit on the Eastern Cape of South Africa Munglinup Australia Graphite 51% (earn-in to 90%) Feasibility study in progress, planned production Q4 2019 WA Exploration Australia Gold, Copper, Lithium, Channel Iron Ore, Vanadium 100% Drill program completed at Doolgunna on high grade gold target, results pending. Secondary drilling program to commence Iran Iran Gold, Copper, Potash, Lithium, Cobalt, Nickel, Zinc 100% of corporate entity Reviewed in excess of 36 mining projects. Four project investments to date including operating gold mine PROJECT LOCATIONS MRC Exploration Australia Pty Ltd 100% Corporate Entity Copper/Gold Channel Iron Ore Hard Rock Lithium, Vanadium	4 Iran MRK PJSC 100% Corporate Entity Gold/Copper Cobalt/Nickel Zinc Potash/Lithium MRC Graphite Pty Ltd 51% Ownership of Munglinup Graphite Project Graphitic Products Transworld Energy & Minerals Resources (SA) (Pty) Ltd (RSA) 56% Ownership of Xolobeni Mineral Sands Project Rich Ilmenite Mineral Sands Resources (Pty) Ltd (RSA) 50% Ownership of Tormin Mineral Sands Mine Zircon/Rutile Ilmenite Garnet Projects Location Resource Interest Status MSR Tormin South Africa Mineral Sands Mine 50% Commenced operation October 2013, potential extension to mine life identified TEM Xolobeni South Africa Mineral Sands Project 56% Rich ilmenite mineral sands deposit on the Eastern Cape of South Africa Munglinup Australia Graphite 51% (earn-in to 90%) Feasibility study in progress, planned production Q4 2019 WA Exploration Australia Gold, Copper, Lithium, Channel Iron Ore, Vanadium 100% Drill program completed at Doolgunna on high grade gold target, results pending. Secondary drilling program to commence Iran Iran Gold, Copper, Potash, Lithium, Cobalt, Nickel, Zinc 100% of corporate entity Reviewed in excess of 36 mining projects. Four project investments to date including operating gold mine PROJECT LOCATIONS MRC Exploration Australia Pty Ltd 100% Corporate Entity Copper/Gold Channel Iron Ore Hard Rock Lithium, Vanadium
	Projects	Location	Resource	Interest	Status
	MSR Tormin	South Africa	Mineral Sands Mine	50%	Commenced operation October 2013, potential extension to mine life identified
	TEM Xolobeni	South Africa	Mineral Sands Project	56%	Rich ilmenite mineral sands deposit on the Eastern Cape of South Africa
	Munglinup	Australia	Graphite	51% (earn-in to 90%)	Feasibility study in progress, planned production Q4 2019
	WA Exploration	Australia	Gold, Copper, Lithium, Channel Iron Ore, Vanadium	100%	Drill program completed at Doolgunna on high grade gold target, results pending. Secondary drilling program to commence
	Iran	Iran	Gold, Copper, Potash, Lithium, Cobalt, Nickel, Zinc	100% of corporate entity	Reviewed in excess of 36 mining projects. Four project investments to date including operating gold mine

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SOUTH AFRICA | TORMIN MINERAL SANDS OPERATION

TORMIN MINERAL SANDS OPERATION

• Continued strong safety record with with TRIFR of zero and 1 LTI since commencement of operations

● Resource: Original 2.7Mt at 49.7% THM Mined 6.6Mt at 27.6% THM Current Inferred 1.8Mt at 15.9% THM[(1)]

• Identified potential 10+ years life of mine extension

• Logistics/Power Optimisation via rail and Eskom grid connection

• ● Prospecting permitting Environmental Authorisations granted

• S102 expansion permitting continuing with expected resolution in 2019

• Permitting continuing with expected resolution in 2019

• New South African Government leadership pro mining development

• (1) Refer to ASX release of 28 February 2018

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SOUTH AFRICA | TORMIN OPERATION | SAFETY

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The Company continued its outstanding safety performance, with only one Lost Time Injury (“LTI”) being a sprained ankle in April 2017, for in excess of 2.4 million man hours worked since Tormin Operations commenced.

Health and Safety Data
Man-hours worked since last LTI	730,206
Total LTI’s since Tormin mining commenced	1

Total Reportable Injury Frequency Rate (TRIFR per million man hours)

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H1 2018 TORMIN OPERATION | PRODUCTION

352,492t

207,386t

H1 2018 Gross Production Summary

H1 2018 Net Production Summary

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	H1 2017	H1 2018
Garnet Concentrate	145,888	275,115
Ilmenite Concentrate	139,424	67,563
Zircon/ Rutile Concentrate	11,674	9,814
Total	296,986	352,492

	H1 2017	H1 2018
Garnet Concentrate	92,453	130,009
Ilmenite Concentrate	63,409	67,563
Zircon/ Rutile Concentrate	11,674	9,814
Total	167,536	207,386

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H1 2018 TORMIN OPERATION | SALES AND STOCKPILE

146,990t

818,036t

H1 2018 Sales Summary

H1 2018 Stockpile Summary

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	H1 2017	H1 2018
Garnet Concentrate	81,536	81,330
Ilmenite Concentrate	172,098	55,000
Zircon/ Rutile Concentrate	13,044	10,660
Total	266,678	146,990

• (1) Total tonnes = Tormin, Koekenaap, Saldanha Bay, in transit or held on behalf of third party under offtake agreement.

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	H1 2017	H1 2018
ROM	102,257	70,475
HMC	4,441	13,954
Garnet Concentrate(1)	620,722	664,233
Ilmenite Concentrate	67,285	68,450
Zircon/ Rutile Concentrate	544	924
Total	795,249	818,036

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H1 2018 REVENUE AND PROFITABILITY

US$28.5m

US$4.8m H1 2018 EBITDA

H1 2018 Revenue

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H1 2017 H1 2018 H1 2017 H1 2018
31.6 28.5 10.1 4.8
REVENUE (US$m) EBITDA (US$m)
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US$1.2m

H1 2018 NPAT

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H1 2017 H1 2018
5.4 1.2
NPAT (US$m)
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H1 2018 CASHFLOWS AND CASH POSITION

US$2.7m

US$5.4m H1 2018 Cashflow from Operations

H1 2018 Investment Expenditure

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H1 2017 H1 2018 H1 2017 H1 2018
11.3 5.4 1.5 2.7
Cashflow from Operations (US$m) Investment Expenditure (US$m)
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US$10.2m

H1 2018 Cash Balance

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H1 2017 H1 2018
6.9 10.2
Cash Balance (US$m)
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H1 2018 FINANCIAL POSITION

US$3.0m

US$14.3m

H1 2018 Net Working H1 2018 Borrowings Capital

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H1 2017 H1 2018 H1 2017 H1 2018
13.3 14.3 5.5 3.0
Net Working Capital (US$m) Borrowings (US$m)
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US$42.4m

H1 2018 Net Assets

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H1 2017 H1 2018
40.5 42.4
Net Assets (US$m)
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H1 2018 SHAREHOLDER RATIOS

A$ 0.60cent H1 2018 Dividend per

US$ 0.27cent

H1 2018 Earnings per Share

Share

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H1 2017 H1 2018
1.32 0.27
Earnings Per Share (US$ cents)
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H1 2017 H1 2018
0.50 0.60
Dividend Per Share (A$ cents)
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US$ 10.14cents H1 2018 Net Assets per Share

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H1 2017 H1 2018
10.01 10.14
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Net Assets Per Share (US$ cents)
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For further information please contact:

Phil Retter | Manager – Investor Relations & Corporate Affairs Mineral Commodities Ltd

T: +61 8 6253 1100 | D: +61 8 6253 1152 | M +61 407 440 882 E: philip.retter@mncom.com.au

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