ABN AMRO Morgans Aust Eng Construction Conference - Ausenco
ABN AMRO Morgans Aust Eng Construction Conference - Ausenco
ABN AMRO Morgans Aust Eng Construction Conference - Ausenco
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<strong>ABN</strong> <strong>AMRO</strong><br />
<strong>Aust</strong>ralian <strong>Eng</strong>ineering and <strong>Construction</strong><br />
<strong>Conference</strong><br />
September 2006<br />
Zimi Meka, Managing Director
Important Information<br />
Purpose of this document<br />
This is a private and confidential document which has been prepared by <strong>Ausenco</strong> Limited (Company) to provide the recipient (Recipient) with information and a preliminary understanding of the company<br />
and its business. It is part of, is incomplete without and to be read in conjunction with an oral briefing to be given by the Company. This document is provided to the Recipient on the conditions set out<br />
below.<br />
This document is provided to Recipients on the basis that they are a sophisticated investor or professional investor (within the meaning of section 708(8) or (11) of the Corporations Act 2001, respectively).<br />
By accepting this document and not returning it, the Recipient confirms that it is such a person. If the Recipient is not such an investor, please do not consider the contents of this document and return it.<br />
This document is not a recommendation, offer or invitation<br />
This document is not a recommendation, offer or invitation by any person to any person to sell or apply for securities in the company.<br />
This document is not a prospectus<br />
The document is not a prospectus under <strong>Aust</strong>ralian law or under any other law. It is for information purposes only. Accordingly, this document neither purports to be exhaustive nor contain all of the<br />
information which a prospective investor or the Recipient may require to make an investment decision and it does not contain all of the information which would otherwise be required by <strong>Aust</strong>ralian law or<br />
any other law to be disclosed in a prospectus.<br />
Exclusion of representations or warranties<br />
The only representations or warranties in relation to the preparation of this document and the information in it (such as its accuracy, reliability, completeness or reasonableness of any assumptions) are<br />
those which are implied by law and which cannot be excluded by law. Otherwise, all such representations or warranties are excluded and the Recipient releases the Company, <strong>Ausenco</strong> Limited, their<br />
advisors and the officers of each of the aforementioned persons from any liability or responsibility for this document (including without limitation, loss or damage arising by negligence).<br />
This document is confidential<br />
This information contained in this document is confidential and is given only to provide information about the company to the Recipient and its advisors and for no other purpose. It must not be copied or<br />
distributed and the Recipient must keep confidential all matters contained in it. On request, the Recipient must promptly return all material received about the Company or any of its affairs, including this<br />
document, without retaining copies.<br />
Events after date of this document<br />
The company and its officers have no responsibility or obligation to inform Recipients of any matter arising or coming to their notice, after the date of this document, which may affect any matter referred to<br />
in this document.<br />
No reliance<br />
The document is provided to the Recipient on the basis that the Recipient must rely on their own inquires and seek appropriate professional advice in relation to the information and statements in relation to<br />
the proposed prospects, business and operations of the Company.<br />
The forward looking statements included in this presentation involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the<br />
control of, and are unknown to, the Company. In particular, they speak only as of the date of these materials, they assume the success of the Company’s business strategies, and they are subject to<br />
significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward looking statements and the assumptions on which those<br />
statements are based. Given these uncertainties, the Recipient is cautioned to not place undue reliance on such forward looking statements.<br />
Jurisdiction<br />
The distribution of the document in jurisdictions outside <strong>Aust</strong>ralia may be restricted by law. Any Recipient who receives this document outside <strong>Aust</strong>ralia must seek advice on<br />
and observe any such restrictions.
<strong>Ausenco</strong> Limited<br />
An award winning provider of innovative and high quality<br />
engineering and project management services to the global mining<br />
and minerals processing industry<br />
Specialising in the engineering, procurement, construction<br />
management, project management, commissioning and operation<br />
of mineral processing plants
The <strong>Ausenco</strong> Story<br />
• Established in 1991 – 15 year history<br />
• Offices in 4 countries worldwide, 685 personnel<br />
• Projects completed cover processing of minerals to product gold, copper,<br />
nickel, cobalt, silver, lead, zinc, uranium, mineral sands and industrial<br />
minerals<br />
• Current Order Book = Installed Capital Value $1.8bn<br />
• <strong>Ausenco</strong> listed on the ASX on 15 June 2006 after its successful $25.9<br />
million initial public offer was significantly oversubscribed
The <strong>Ausenco</strong> Solution<br />
An established global reputation for the delivery of innovative solutions across<br />
the project lifecycle … the <strong>Ausenco</strong> Solution<br />
Front End Solutions<br />
Design and supervision<br />
of metallurgical test<br />
work programs<br />
Feasibility study<br />
preparation<br />
Process engineering<br />
<strong>Eng</strong>ineering design<br />
Capital & operating cost<br />
estimates<br />
<strong>Eng</strong>ineering & Process<br />
Innovative design<br />
Efficient plant<br />
performance<br />
Process, mechanical,<br />
civil / structural,<br />
electrical &<br />
instrumentation<br />
engineering<br />
Multi-discipline<br />
Project & <strong>Construction</strong><br />
Management<br />
Project management<br />
Cost control<br />
Scheduling<br />
Procurement<br />
<strong>Construction</strong><br />
management<br />
Commissioning<br />
Operations & Management<br />
Plant ramp-up<br />
Operations management<br />
Maintenance management<br />
Mining, resource, water &<br />
infrastructure industries<br />
Decommissioning<br />
Rehabilitation<br />
Wholly owned subsidiary<br />
Project financial models<br />
PRE-FEASIBILITY<br />
STUDY<br />
FEASIBILITY<br />
STUDY<br />
ENGINEERING,<br />
PROJECT AND<br />
CONSTRUCTION<br />
MANAGEMENT<br />
OPERATING AND<br />
MAINTENANCE<br />
DECOMMISSIONING
<strong>Ausenco</strong> Clients<br />
Client<br />
BHP Billiton<br />
Rio Tinto<br />
Anglo American Plc<br />
Xstrata Plc<br />
Oxiana Limited<br />
Placer Dome Inc<br />
Barrick Gold Corporation<br />
Newmont Mining Corporation<br />
Bemax Resources NL<br />
Sino Gold Limited<br />
Kingsgate Consolidated Limited<br />
Mineral Deposits Limited<br />
Commodities Focus<br />
Diversified<br />
Diversified<br />
Diversified<br />
Diversified<br />
Gold, copper, lead,<br />
zinc<br />
Gold and copper<br />
Gold<br />
Gold and copper<br />
Mineral Sands<br />
Gold<br />
Gold<br />
Mineral sands and<br />
gold<br />
Repeat Client<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
First project<br />
First project
Global experience<br />
Specialist delivery knowledge
Current Projects<br />
<strong>Ausenco</strong> is currently working on projects with Installed Capital<br />
Value of $1.8 billion<br />
Project Name<br />
Client<br />
Location<br />
Project Value<br />
Expected<br />
Completion<br />
Nui Phao Tungsten Project<br />
Tiberon Minerals<br />
Vietnam<br />
US$302M<br />
2008<br />
Jinfeng Gold Project<br />
Sinogold<br />
China<br />
US$85M<br />
2006<br />
Kwale Mineral Sands Project<br />
Tiomin Resources<br />
Kenya<br />
US$187M<br />
2008<br />
Hidden Valley Gold Project<br />
Harmony Gold<br />
PNG<br />
US$250M<br />
2008<br />
Lumwana Copper Project<br />
Equinox Minerals<br />
Zambia<br />
US$500M<br />
2007/8<br />
Delores Silver Project<br />
Minefinders<br />
Mexico<br />
US$100M<br />
2007
Sepon Copper/Gold Projects
Bemax Mineral Sands Project
Kainantu Gold Project
Jinfeng Gold Project
2006 Financial Highlights<br />
Six months to 30 June<br />
HY 2006<br />
HY 2005<br />
Operating revenue<br />
$59.7 million<br />
$32.3 million<br />
85% <br />
Net profit before tax<br />
$5.9 million<br />
$2.8 million<br />
108% <br />
Attributable profit after tax<br />
$4.4 million<br />
$2.1 million<br />
107% <br />
Earnings per share<br />
6.1 cps<br />
3.0 cps<br />
103% <br />
Dividend per share<br />
2.5 cps<br />
-<br />
• Record results for revenue, profit, earnings per share, and order book<br />
• Stronger growth leading to revised FY 2006 revenue and earnings guidance<br />
2006 FY attributable net profit after tax increased to between $10 million to $11 million<br />
2006 FY operating revenue increased to between $127 million to $137 million<br />
• Fully franked interim dividend 2.5 cents per share - payable 25 October 2006
Shareholder Structure<br />
Shareholder<br />
Institutional Shareholders<br />
<strong>Aust</strong>ralia<br />
Non-<strong>Aust</strong>ralian<br />
Shares<br />
‘000<br />
16,641<br />
6,228<br />
%<br />
20.3%<br />
7.6%<br />
Director Shareholders<br />
34,187<br />
41.7%<br />
Other Shareholders<br />
<strong>Aust</strong>ralia<br />
Non-<strong>Aust</strong>ralian<br />
24,415<br />
479<br />
29.8%<br />
0.6%<br />
TOTAL<br />
81,950<br />
100.0%<br />
* As at 31 August 2006<br />
‣ 2,075,000 options have been issued under the company’s Employee Option Plan, each with an exercise price of $1.00 and vesting in equal<br />
tranches over three years from the date of grant (27 April 2006).<br />
‣ Director and Institutional Shareholders entered into Voluntary Escrow over 47,033,592 shares until the release of <strong>Ausenco</strong>’s Annual Report for<br />
the December 2006 financial year
Global regional and<br />
commodity diversity<br />
EPCM revenue contribution - by region<br />
Commodity and regional diversity:<br />
Europe<br />
4%<br />
<strong>Aust</strong>ralia<br />
19%<br />
• Asian presence solidified with new work in<br />
Vietnam (tungsten), Papua New Guinea (gold)<br />
and Laos (copper)<br />
• African experience provides platform for joint<br />
venture work in Zambia (copper)<br />
Asia<br />
46%<br />
• Jinfeng underpinning continued China growth<br />
opportunities<br />
Africa<br />
27%<br />
Americas<br />
4%
Growth strategy<br />
• Expand geographic reach<br />
• Strengthen strategic alliances<br />
• Commodity diversification<br />
• Expand range of services to take advantage of synergies<br />
• Broaden range of clients and projects<br />
• Acquire complementary businesses