MINERAL RESOURCES LIMITED — AGM Information 2012

Nov 21, 2012

==> picture [720 x 141] intentionally omitted <==

==> picture [720 x 285] intentionally omitted <==

==> picture [155 x 84] intentionally omitted <==

Chairman’s Address 2012 Annual General Meeting

22 November 2012 www.mineralresources.com.au

==> picture [720 x 86] intentionally omitted <==

==> picture [313 x 169] intentionally omitted <==

Service Provider

Minerals Producer

==> picture [100 x 59] intentionally omitted <==

==> picture [90 x 55] intentionally omitted <==

==> picture [71 x 64] intentionally omitted <==

==> picture [102 x 50] intentionally omitted <==

==> picture [61 x 61] intentionally omitted <==

Crushing Services

Process Minerals

PIHA

Minerals and base Australia’s largest Pipeline, services, site metals processing, specialist BOO crushing, infrastructure, contractor logistics, ship loading & screening and processing and polyethylene fittings marketing contractor manufacturer

Polaris Metals

Specialist Iron Ore resources company

Mesa Minerals (64% owned) & Auvex Resources

Specialist manganese and technology companies

==> picture [720 x 86] intentionally omitted <==

About Mineral Resources

• Mineral Resources Limited is a Western Australian, publicly listed, ASX 200 company ( ASX:MIN ) with a market cap approximately $A1.5 billion

• Employs in excess of 1,300 people

• Largest Australian specialist contract crushing, materials handling and mining services provider:

• installed and operating crushing and processing plants for blue chip clients:

• combined installed capacity of +110 million tonnes pa for external customers

• Mid-tier iron ore and manganese producer and mine operator with 4 million tonnes exported in 2011/12.

==> picture [93 x 51] intentionally omitted <==

==> picture [720 x 86] intentionally omitted <==

Corporate Governance

Board Structure

• Recent board changes:

• Non-executive chairman position re-instated

• Chairman / Managing Director positions separated

• Management strengthened at multiple levels to facilitate growth agenda

• Small board with right mix of skills

• Board members provide personal strengths and also head organisations that value-add MRL group

• Board independence is actively managed

• Governance practices

• Committee structure used to manage key governance issues including remuneration, nomination, risk and audit

		Non-executive Chairman	Non-executive Chairman	Non-executive Chairman	Non-executive Chairman
		Peter Wade
		Managing Director
		Chris Ellison
				Non-executive
Company Secretary Bruce Goulds				Directors Joe Ricciardo
				Mark Dutton
				Kelvin Flynn

==> picture [93 x 51] intentionally omitted <==

==> picture [720 x 86] intentionally omitted <==

Financial History (Since Listing)

==> picture [292 x 325] intentionally omitted <==

----- Start of picture text -----

Revenue
1000
800
600
400
200
0
2007 2008 2009 2010 2011 2012
Net Assets
1000
800
600
400
200
0
2007 2008 2009 2010 2011 2012
$ millions
$ millions
----- End of picture text -----

EBITDA

==> picture [292 x 124] intentionally omitted <==

----- Start of picture text -----

350
300
250
200
150
100
50
0
2007 2008 2009 2010 2011 2012
$ millions
----- End of picture text -----

Operational Cash Flow

==> picture [291 x 102] intentionally omitted <==

----- Start of picture text -----

300
250
200
150
100
50
0
2007 2008 2009 2010 2011 2012
$ millions
----- End of picture text -----

==> picture [93 x 51] intentionally omitted <==

Strategic Positioning

Sound Market Position Recognised Capability

• Contracted business with strong companies (Rio Tinto, BHP Billiton, Fortescue Metal Group, Atlas Iron, Newmont, KCGM) provides the core component of revenue

• Contracting model has significant barriers to entry (financial, operational, knowhow)

• Leading independent crushing and screening group in Australia

• Wet ore processing capability is a significant differentiator

Diversified Revenue Streams

• Commodity mining and exporting divisions in POL and PMI

• Complement strong and contracted revenue stream from crushing, pipeline and mining services

• Growth path established with the decision to develop its own iron ore resource

Mining Operations

• Diversification of earnings

• Platform to generate long term contract based revenues

Long Standing Customer Relationships & Strong Track Record

• Continually performed to plan and expectations, leading to repeat business and ongoing contract wins

==> picture [93 x 51] intentionally omitted <==

• Contractor of choice and framework agreements

==> picture [720 x 86] intentionally omitted <==

Corporate and Operational Highlights

• Mining Services Business

• Christmas Creek 2 ramp-up to nameplate capacity

• Awarded 3 BOO contracts since EOFY, opportunity to expand further

• PIHA business strong with entry into dewatering market on track

• Strong business development opportunities for BOO and pipeline businesses

• Engineering, Procurement, Construction (EPC) project delivery opportunities being negotiated

•

Commodity Business

• Continued iron ore sales from Carina and Poondano

• Phil’s Creek iron ore development nearing completion

• Volatile iron ore market will dictate 2013 price and volumes. Shareholder value is key

• Manganese exports limited, prices and demand remain challenging

• Corporate

• Significant infrastructure opportunities being pursued (ports, camps)

• Financial

• Strong financial performance in FY2012

• $558 million loan and guarantee facility secured with Australian and International banks

• CAPEX programme in line with expectations

• Dividend payout ratio maintained in FY2012

• Low geared balance sheet

==> picture [93 x 51] intentionally omitted <==

==> picture [720 x 86] intentionally omitted <==

Christmas Creek 2

==> picture [277 x 155] intentionally omitted <==

----- Start of picture text -----

First ore stockpile
----- End of picture text -----

==> picture [266 x 206] intentionally omitted <==

----- Start of picture text -----

Thickener tanks
----- End of picture text -----

==> picture [206 x 233] intentionally omitted <==

----- Start of picture text -----

First ore processed
----- End of picture text -----

==> picture [466 x 171] intentionally omitted <==

----- Start of picture text -----

Plant from primary feed station
----- End of picture text -----

==> picture [275 x 117] intentionally omitted <==

----- Start of picture text -----

Primary Crusher feed
----- End of picture text -----

==> picture [720 x 86] intentionally omitted <==

Build Own Operate (BOO) Crushing and Handling Contracts

==> picture [313 x 156] intentionally omitted <==

----- Start of picture text -----

Whaleback plant
----- End of picture text -----

==> picture [169 x 119] intentionally omitted <==

----- Start of picture text -----

Area C
Water Tanks and Pumps
----- End of picture text -----

==> picture [317 x 212] intentionally omitted <==

----- Start of picture text -----

Area C
Workshop construction
----- End of picture text -----

==> picture [401 x 201] intentionally omitted <==

----- Start of picture text -----

Whaleback
Crushing Plant
----- End of picture text -----

==> picture [720 x 86] intentionally omitted <==

CSI Crushing Capacity

• CSI has a world renowned reputation with a proven ability to design, construct and operate client focussed crushing, screening and processing solutions

• Organic growth of its contract crushing business through repeat business and new client’s recognising the unrivalled ability of CSI

Growth in Installed Crushing Capacity (MTPA)

==> picture [371 x 207] intentionally omitted <==

----- Start of picture text -----

120.0
100.0
80.0
60.0
40.0
20.0
0.0
2005 2006 2007 2008 2009 2010 2011 2012 2013
----- End of picture text -----

==> picture [93 x 51] intentionally omitted <==

==> picture [720 x 86] intentionally omitted <==

==> picture [424 x 271] intentionally omitted <==

----- Start of picture text -----

Marandoo Agricultural Areas
Western Turner Syncline
----- End of picture text -----

PIHA Contracting

==> picture [61 x 61] intentionally omitted <==

==> picture [255 x 172] intentionally omitted <==

----- Start of picture text -----

Pipe Cutter in the Field
----- End of picture text -----

==> picture [254 x 178] intentionally omitted <==

----- Start of picture text -----

Pipe Cutter
Implement in
the Field
----- End of picture text -----

==> picture [225 x 169] intentionally omitted <==

----- Start of picture text -----

Western Turner
Syncline
----- End of picture text -----

==> picture [200 x 127] intentionally omitted <==

----- Start of picture text -----

Brockman 4 Eastern Borefield 3
----- End of picture text -----

==> picture [720 x 86] intentionally omitted <==

Export Volume Growth

0 2 4 6 8 million tonnes	0 2 4 6 8 million tonnes	0 2 4 6 8 million tonnes	0 2 4 6 8 million tonnes	0 2 4 6 8 million tonnes	0 2 4 6 8 million tonnes
‘000 tonnes	2009	2010	2011	2012	Q1 2013
Iron Ore
. Utah Point	375	875	2,259	2,004	628
. KBT2	-	-	-	1,759	833
. Total	375	875	2,259	3,763	1,461
Manganese	275	428	449	269	59
TOTAL	650	1,303	2,708	4,032	1,520
% increase		100%	108%	49%	~~1~~ 51%

==> picture [720 x 86] intentionally omitted <==

Carina Iron Ore Project

==> picture [383 x 397] intentionally omitted <==

----- Start of picture text -----

Fine ore stockpile
Carina Stockyard
----- End of picture text -----

==> picture [295 x 199] intentionally omitted <==

----- Start of picture text -----

Mining Operations
Ore haulage in progress
----- End of picture text -----

==> picture [93 x 51] intentionally omitted <==

==> picture [720 x 86] intentionally omitted <==

Ports

==> picture [690 x 425] intentionally omitted <==

----- Start of picture text -----

Ports
Utah Point, Port Hedland
Kwinana
Berth
Terminal,
Fremantle
Kwinana Berth Terminal, Fremantle
Kwinana Berth Terminal, Fremantle
----- End of picture text -----

==> picture [720 x 86] intentionally omitted <==

Phil’s Creek Iron Ore Operations

==> picture [266 x 185] intentionally omitted <==

----- Start of picture text -----

Plant from Control Room
----- End of picture text -----

==> picture [265 x 178] intentionally omitted <==

----- Start of picture text -----

ROM with ore
----- End of picture text -----

==> picture [247 x 195] intentionally omitted <==

----- Start of picture text -----

Accommodation Village, Site Services
----- End of picture text -----

==> picture [166 x 100] intentionally omitted <==

==> picture [203 x 148] intentionally omitted <==

==> picture [210 x 179] intentionally omitted <==

----- Start of picture text -----

Rock breaker reducing oversize ore on the
ROM pad
----- End of picture text -----

==> picture [197 x 118] intentionally omitted <==

----- Start of picture text -----

Plant Layout
----- End of picture text -----

==> picture [720 x 86] intentionally omitted <==

Poondano Iron Ore Operations

==> picture [334 x 222] intentionally omitted <==

----- Start of picture text -----

Processing plant
----- End of picture text -----

==> picture [316 x 211] intentionally omitted <==

----- Start of picture text -----

Stockyard
----- End of picture text -----

==> picture [279 x 186] intentionally omitted <==

----- Start of picture text -----

In pit operations
----- End of picture text -----

==> picture [276 x 184] intentionally omitted <==

----- Start of picture text -----

Ground clearing
----- End of picture text -----

==> picture [93 x 51] intentionally omitted <==

==> picture [720 x 86] intentionally omitted <==

Exploration Programme

==> picture [315 x 342] intentionally omitted <==

Pilbara Projects

==> picture [347 x 296] intentionally omitted <==

==> picture [93 x 51] intentionally omitted <==

Yilgarn Projects

==> picture [720 x 86] intentionally omitted <==

Commodities Market Comment

• Iron ore price recovered from September lows but still below mid July peak

• Iron ore demand remains solid

• Chinese leadership transition expected to determine further improvement in demand and pricing

• Economic signals expected to be mixed in short-term

• Manganese pricing, uncertainty continues

• Ongoing AUD / USD volatility

==> picture [93 x 51] intentionally omitted <==

Future View

BUSINESS DEVELOPMENT

Development projects on time and within budget

Business model expanded for BOO and EPC opportunities

• Organic growth opportunities across all operations

• Contracting opportunities are being awarded

• Business opportunities growing, showing normal countercyclical trend

• Capacity expansion alternative provide for future growth

MINING & EXPLORATION

Exploration programme continues

Mining operations on track; business supportable in new pricing environment

MANAGEMENT

Company management strengthened by recent additions and board restructuring

FINANCIAL

Balance sheet in good shape

Short-term view

Target Areas

• Potential to benefit from countercyclical engineering services model

• Ramp-up of existing contracts to nameplate capacity

• New crushing contracts brought into operation

• Commencement of EPC design & engineering works

• PIHA consolidation into niche contracting operations of dewatering and site services

• Iron ore price remains volatile but above September lows

Earning weighted into second half of FY2013

==> picture [93 x 51] intentionally omitted <==

Disclaimer

• This presentation has been prepared by Mineral Resources Limited (“MRL” or “the Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation.

• This presentation contains forecasts and forward looking information. Such forecasts, projections and information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied.

• You should not act or refrain from acting in reliance on this presentation material. This overview of MRL does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision.

==> picture [93 x 51] intentionally omitted <==