MINERAL COMMODITIES LTD — Investor Presentation 2020

Mar 1, 2020

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ASX RELEASE
ASX: MRC 28 February 2020
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MRC FULL YEAR RESULTS SUMMARY PRESENTATION

Mineral Commodities Ltd (“MRC” or “the Company”) is pleased to provide the attached presentation of the Financial Results for the financial year ended 31 December 2019.

ENDS

Issued by Mineral Commodities Ltd ACN 008 478 653 www.mineralcommodities.com

Authorised by the Board, Mineral Commodities Ltd

For further information, please contact:

INVESTORS & MEDIA CORPORATE Peter Fox Peter Torre Investor Relations and Corporate Company Secretary Development T: +61 8 6253 1100 T: +61 8 6253 1100 investor@mncom.com.au peter@torrecorporate.com.au

About Mineral Commodities Ltd:

Mineral Commodities Ltd (ASX: MRC) is a global mining and development company with a primary focus on the development of high-grade mineral deposits within the industrial and battery minerals sectors.

The Company is a leading producer of zircon, rutile, garnet and ilmenite concentrates through its Tormin Mineral Sands Operation, located on the Western Cape of South Africa. In October 2019, the Company completed the acquisition of Skaland Graphite AS, the owner of the world’s highest-grade operating flake graphite mine and one of the only producers in Europe. The planned development of the Munglinup Graphite Project, located in Western Australia, builds on the Skaland acquisition and is a further step toward an integrated, downstream value-adding strategy which aims to capitalise on the fastgrowing demand for sustainably manufactured Lithium-Ion Batteries.

T: +61 8 6253 1100 PO Box 235 WELSHPOOL DC WA 6986

ABN 39 008 478 653 info@mncom.com.au www.mncom.com.au

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MINERAL COMMODITIES LTD

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2019 Financial Results

Caution Statements

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 laws 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, if any, in this presentation which relates to Exploration Results, Mineral Resources or Ore Reserves for Tormin is based on information compiled by Mr Bahman Rashidi, who is a member of the Australian Institute of Mining and Metallurgy (“AusIMM”) and the Australian Institute of Geoscientists (“AIG”). Mr Rashidi is Exploration Manager and a full-time employee of the Company and has over 22 years of exploration and mining experience in a variety of mineral deposits and styles. Mr Rashidi has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person in accordance with the JORC Code 2012.

The information from Mr Bahman Rashidi was prepared under the JORC Code (2012). Mr Rashidi consents to inclusion in the report of the matters based on this information in the form and context in which it appears

The information, if any, in this presentation which relates to Mineral Resources for Munglinup is based on information compiled by Mr Chris De Vitry who is a member of the AusIMM and an independent consultant to the Company. Mr De Vitry is the Director and Principal Geologist of Manna Hill GeoConsulting Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined by the JORC Code (2012). The information from Mr De Vitry was prepared under the JORC Code (2012). Mr De Vitry consents to inclusion in the presentation of the matters based on this information in the form and context in which it appears.

The information, if any, in this presentation which relates to the Ore Reserve for Munglinup is based on information compiled by Mr Daniel Hastings, who is a Member of the AusIMM. Mr Hastings is an employee of Hastings Bell Pty Ltd and a consultant to the Company. Mr Hastings has sufficient experience relevant to the type of deposit under consideration to qualify as a Competent Person as defined by the JORC Code (2012). Mr Hastings consents to the inclusion in the presentation of the matters based on the reviewed information in the form and context in which it appears.

The information, if any, in this presentation which relates to Exploration Results, Mineral Resources or Ore Reserves for Xolobeni is based on information compiled by Mr Allen Maynard, who is a Member of the Australian Institute of Geosciences (“AIG”), a Corporate Member of the AusIMM and independent consultant to the Company. Mr Maynard is the Director and Principal Geologist of Al Maynard & Associates Pty Ltd and has over 38 years of exploration and mining experience in a variety of mineral deposit styles. Mr Maynard 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 2004 Edition of the Australasian Code for reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves (“JORC Code (2004)”). This information was prepared and first disclosed under the JORC Code (2004). It has not been updated to comply with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code (2012)”) on the basis that the information has not materially changed since it was last reported. Mr Maynard consents to inclusion in the presentation of the matters based on this information in the form and context in which it appears.

The supporting information relating to the Skaland foreign estimate has not materially changed since the initial market announcement (4 April 2019 – MRC Acquires World’s Highest Grade Flake Graphite Operation). Foreign estimates are not reported in accordance with the JORC code and a competent person has not done sufficient work to classify the foreign estimates as mineral resources or ore reserves in accordance with the JORC code. It is uncertain that following further work that the foreign estimates will be able to be reported as mineral resources or ore reserves in accordance with the JORC code.

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MINERAL COMMODITIES GLOBAL OVERVIEW

Skaland

Flake Graphite

Production – 10ktpa Flake Graphite Concentrate

Tormin

Mineral Sands

Production - 2.6Mtpa Processing facility producing: garnet, ilmenite, zircon and rutile concentrates

“ With the acquisition of Skaland MRC operates two production centres, Tormin and Skaland, while advancing development at Munglinup and progressing ongoing downstream graphite studies from Perth ”

Munglinup

Graphite Development

Xolobeni

• Mineral Sands Development JORC Compliant Resource 346Mt @ 5% THM

Perth

Corporate Headquarters

Ore Reserve (Probable) of 4.24Mt at 12.8% TGC supporting mine life of 14 years with anticipated production of ~52ktpa of >95% purity graphite concentrate. Mineralisation open in all directions

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SAFETY PERFORMANCE

2018 2019 0 0 Three month rolling Total Recordable Injury Frequency Rate at year end 1.3 million working hours since last Lost Time Injury incident

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FINANCIAL PERFORMANCE

Full Year Highlights

	31-Dec-19 Variance US$ % Revenue 61,783,570 12% EBITDA 16,483,385 12% Profit before income tax 11,867,343 14% Profit after income tax 7,828,231 -11% Diluted earnings per share 1.85 -11% Dividends paid (AUD) 5,474,790 - Operating Cashflow 13,269,945 -8% Cash 8,092,614 -35% Net Assets 45,988,549 9%

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Presented By:
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FULL YEAR FINANCIAL RESULTS

Tormin Mineral Sands Operation continued to generate positive cash flows

	31-Dec-19	**31-Dec-18 **	Variance
	US$	US$	%
Revenue from continuingoperations
Sale ofproduct	59,514,773	53,523,922	11%
Other revenue	2,268,797	1,875,241	21%
	61,783,570	55,399,163	12%

FY19 REVENUE UP 12%

• Higher sales revenue was due to the first year introduction of Skaland sales (US$1.2 million), and additional Tormin revenue (US$5.2 million). Higher Tormin revenue was due to a 103% (109,866 tonnes) increase in ilmenite concentrate volumes shipped during the current year, partially offset by a 41.87% (7,524 tonnes) decrease in zircon and rutile volumes shipped, lower garnet transport revenue due to 95,833 less garnet tonnes shipped and lower zircon and rutile pricing achieved in 2019.

31-Dec-19 31-Dec-18 Variance US$ US$ %	31-Dec-19 31-Dec-18 Variance US$ US$ %	31-Dec-19 31-Dec-18 Variance US$ US$ %	Variance
Revenue from continuing operations	61,783,570	55,399,163	12%
Mining and processing costs	-39,888,234	-33,480,947	19%
Administration expenditure	-5,150,141	-6,823,773	-25%
Share based payments	-261,810	-441,253	-41%
Adjusted EBITDA	16,483,385	14,653,190	12%

EBITDA UP 12%

• The higher overall sales volumes and revenue (including Skaland), in-conjunction with lower corporate overheads translated into the higher reported EBITDA for the 2019 year, when compared to 2018 results. Mining and processing costs have increased in line with increased sales revenue. Corporate administration and share incentive expenses decrease over the prior year as a result of foreign exchange gain, corporate cost savings in lower travel costs and streamlining support services.

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FULL YEAR FINANCIAL RESULTS

Tormin Mineral Sands Operation continued to generate positive cash flows

	31-Dec-19 31-Dec-18 Variance US$ US$ %	31-Dec-19 31-Dec-18 Variance US$ US$ %	31-Dec-19 31-Dec-18 Variance US$ US$ %	31-Dec-19 31-Dec-18 Variance US$ US$ %	31-Dec-19 31-Dec-18 Variance US$ US$ %	31-Dec-19 31-Dec-18 Variance US$ US$ %	31-Dec-19 31-Dec-18 Variance US$ US$ %
	Profit before income tax	11,867,343		10,439,607		14%
	Income tax expense	-4,039,112		-1,616,376		150%
	Profit after income tax	7,828,231		8,823,231		-11%
	31-Dec-19 31-Dec-18 Variance $ $ %
Diluted earnings per share			1.85		2.08		-11%
Payout ratio*			49%		43%		14%
Dividends paid (AUD)			5,474,790		5,431,140		-

NPAT DOWN 11%

• The profit before income tax expense (“NPBT”) was 14% higher than the prior year, reflecting the improved sales performance at Tormin and lower administration costs in 2019. However, Profit after tax expense (“NPAT”) decreased 11% due to an increase in the effective tax rate to 34% (2018: 15%), with the Group transitioning into a tax payable position in 2019, meaning capital losses that lowered the effective tax rate in the prior year have been fully utilised.

DIVIDEND

• Dividend payment strategy to provide cash returns to shareholders continued, with a further US$3.8 million (2018: $3.8 million) distributed in dividends during 2019. The Board of the Company was pleased to declare and pay during the year a 0.7 Australian cent per share final dividend in respect of the 2018 year, followed by an interim dividend for the half year ended 2019 of 0.6 Australian cent per share. The Directors have deferred a decision on declaring a final dividend for the year ended 31 December 2019.

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• • USD-AUD .70c - FY19 NPAT AUD$11,183,187, FY18 NPAT AUD$12,604,616

FULL YEAR FINANCIAL RESULTS

Tormin Mineral Sands Operation continued to generate positive cash flows

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Unit
production
cash costs
per tonne of Unit cost of Unit revenue
net final goods sold per per tonne of
concentrate tonne of final final
produced concentrate concentrate
(US$/dmt) sold ($/wmt) sold ($/wmt)
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UNIT COSTS & REVENUES

• Unit production cash costs were impacted by the change in mined tonnes and grades, with the current year’s US$84.40/t for 238,933 concentrate tonnes produced higher than the FY18 US$57.68/t for 403,831 concentrate tonnes produced.

• The total unit cost of goods sold of US$89.27/t for the year for 440,210 concentrate tonnes sold improved on the prior year’s US$110.08/t for 337,999 final concentrate tonnes sold. The improved performance was driven by increased relative volumes of bulk shipment products.

• Unit revenue per tonne of final concentrate sold reduced for the year (FY18 $156.95) reflecting the reduction in zircon and rutile sales during the current year, partially offset by improved ilmenite pricing and sales.

Summary of Unit Costs & Revenues Full Year to Full Year to Variance 31-Dec-19 31-Dec-18 %	Summary of Unit Costs & Revenues Full Year to Full Year to Variance 31-Dec-19 31-Dec-18 %	Summary of Unit Costs & Revenues Full Year to Full Year to Variance 31-Dec-19 31-Dec-18 %	Summary of Unit Costs & Revenues Full Year to Full Year to Variance 31-Dec-19 31-Dec-18 %
Revenue to Cost of Goods Sold Ratio	1.48	1.43	3%

REVENUE TO COST OF GOODS SOLD RATIO

• Improved revenue to cost of goods sold ratio for the year in comparison to the prior period reflects lower unit costs in 2019, partially offset by lower unit revenue.

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TORMIN - PRODUCTION & SALES

Production and Sales Performance FY2019

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TONNES MINED / PROCESSEDMINING PRODUCTION TONNES CONCENTRATE TONNES PRODUCED [(1)] CONCENTRATE TONNES SOLD [(2)]
3,000,000 300,000 250,000
250,000
200,000
200,000
150,000 150,000
2,500,000
100,000
100,000
50,000
50,000
0
2,000,000 Garnet Ilmenite Zircon/Rutile
0
concentrate concentrate concentrate
Zircon/Rutile Ilmenite Garnet
(net) (net)
concentrate concentrate concentrate
1,500,000 HEAVY MINERAL GRADE REVENUE BY CONCENTRATE
14.00%
$60
12.00%
1,000,000 $50
10.00%
$40
8.00%
$30
500,000 6.00%
$20
4.00%
$10
2.00%
0 $0
Mining PBC Tonnes SCP/GSP (3) 0.00% 2019 2018
Production Tonnes Garnet Ilmenite Zircon Non-mags Ilmenite Garnet
278,205
108,630
216,616 213,150 213,281
179,057 49,937
2,650,099 9,939 16,996
17,968
2,509,978 2,433,801 10,444 106,750
2,400,341
12.55%
7.53%
858,631
Millions
589,473 3.14%
1.81%
0.42% 0.55%
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(1) Dry Metric Tonnes

(2) Wet Metric Tonnes

(3) Includes 151,031 of garnet re-feed

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FY 2019

FY 2018

COMMITMENT TO COMMUNITY

ZAR8.25 million

Spent on Historically Disadvantaged South Africans Social Labour Plan, including bursaries, scholarships, traineeships, apprenticeships, adult basic education programs.

The Company completed an internal and external refurbishment and fit-out of the Nuwerus High School Hostels. The hostels will accommodate 60 more learners from neighboring settlements. The total value committed to this project was ZAR2.1 million.

The year ended successfully with the reported attendance of 224 high school learners participating in the Company-sponsored Maths & Science Spring School during October and November. In addition to this, the Company collaborated with the Matzikama Local Municipality on phase one of the Doornbay Slipway Project, targeting the challenge of poverty in the small fishing town of Doornbay.

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- SKALAND PRODUCTION & SALES

Production and Sales Performance FY 2019 – MRC took operational control of Skaland Graphite AS on 1 October 2019

	Processing	Dec-19 Quarter	Year to Date 31- Dec-19	Year to Date 31- Dec-19
	Ore Processed	10,112	37,088
	Throughput (tph)	6.9	7.8
	Ore Grade(%C)	28.4	26.1
	C Recovery (%)	93.3	91.7
	Concentrate Grade(%)	90.7	91.2
	Concentrate Produced(t)	2,945	9,780
		Dec-19 Quarter	31-Dec-19
	Product Category(wmt)		Year to	Date
		Sales PSD %	Sales	PSD %
	Flake/Medium	776 39%	2,467	34%
	Fine-Medium/Powder	1,231 61%	4,808	66%
	Total	2,007	7,275
	Unit Costs & Revenues	Dec-19 Quarter	Year to Date	31-Dec-19
	Unit production cash costs1	$405.18	$417.41
	Unit cost of goods sold 2	$356.50	$476.28
	Unit revenue per tonne 3	$582.48	$639.13

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1- US$/dmt of net final concentrate produced 2- US$/wmt of net final concentrate sold

3- US$/wmt of final concentrate sold

MUNGLINUP – DFS

Robust economic outcome from Munglinup Definitive Feasibility Study

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Key Results [(1)] USD$
Post-tax - Net Present Value $111M [(7%)]
Northern Dump
Post-tax project - IRR 30%
McCarthy West
Munglinup
Capex $61M
River
Opex $491/tonne Halberts
Main Whites
Life of Mine average EBITDA $31M pa Harris 1 & 2 McCarthy East
Western
Life of Mine net cash flow $240M Dump
Payback period 2.7 years Halberts Main Main Dump ML 74/245
Mini Boundary
Life of Mine 14 years
Halberts South
Mini
Life of Mine processing throughput Yr 1-6 400ktpa — Yr 7-14 500ktpa Buttress TSF Tailings
Storage
Dump
Life of Mine average production 52ktpa Facility
(TSF)
Average concentrate grade >95% TGC
Halberts
South
Ore Reserve 4.24 million tonnes @ average
Southern Dump
grade 12.8% TGC
Permitting - Final Environmental Permitting on the Project is expected in the
third quarter 2020. A work program is underway with completion expected in
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Permitting - Final Environmental Permitting on the Project is expected in the third quarter 2020. A work program is underway with completion expected in second quarter 2020. The Federal-based DoEE and State-based EPA will then consider these studies in their assessment of the Project.

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• (1) Refer to ASX Announcement Robust DFS Allows MRC to move to 90% ownership of Munglinup 8 Jan 2020

OBJECTIVE 2020

Significant positive catalysts ahead for FY 2020

• TORMIN SKALAND • Optimise processing flowsheet to produce high grade fines and increased coarse flake production

• • Delineate JORC compliant resource

• Secure S102 Expanded mining permitting and remaining prospecting tenure

• Deliver Phase 1 Northern Beaches expansion initiatives

• Optimise operating cost structure via Eskom renewable power connection a logistics initiatives

• Advance 10-year LOM development plan that underpins downstream value-adding strategy

• Delineate Measured and Indicated JORC Resource of Inland Strand and Northern Beaches

• Finalise vertically integrated downstream strategy to produce value added carbon products for battery anode production

• Continue to implement SLP and Sustainability Initiatives

• MUNGLINUP

• • Finalise equity position in JV

CORPORATE

• Continuation of shareholder

• • Complete Environmental growth and returns through permitting process stringent capital management

• • and project delivery

• Finalise integrated downstream study work and development

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