Ann: Investor Presentation - 10 August 2022 9.30am WST, page-14

# Updates and FY22 production guidance:

OM Sarawak Acquisition:
- Signed conditional share purchase agreement on 14th June (to purchase the remaining 25% stake), transaction to close latest by ~15th November.
- Funding via mix of cash, debt, and share issuances. Most of it will come from cash, further share issuances is the last choice given the current low share price.
- Note: backed by low-cost hydropower from a 20 year PPA agreement with Sarawak Energy and a 10 year tax holiday

Mining (Manganese) in Bootu Creek Mine, Australia:
- Ultra fines plants undergoing engineering corrections but delayed due to lack of custom-made parts (most likely to be commissioned next year.)

Smelting (Manganese and Ferrosilicon) in OM Sarawak:
- Previously converted 2 Ferrosilicon furnaces to Manganese alloy furnace
- Currently running 6 Manganese and 6 Ferroslicon furnaces.
- With the addition of 2 more Manganese Furnaces, 8 Mn furnaces = ~330-400 ktpa (100% exported, meaning it will represent 10-15% of globally traded volume)
- Major maintenance commenced.
- on track to meet 340-360 kilo tons per annum (ktpa) guidance

Others:
- Became shariah compliant
- Released sustainability statement - key targets for ESG in 2022.

# Ferrosilicon (FeSi) market review
- 2022 Q3: Global slowdown and uncertian outlook in Europe led to sharp price cuts, leading to global production cuts especially in China (China is the largest exporter and has cut ~20% of their output). Overall weak market.
- Broadly speaking, Ferro Alloys' demand has waned.
- New producers (LTM) are likely to exit during this time.

# Manganese ore and alloy market review
- 2022 Q3: Similar to FeSi market, global slowdown lead to price corrections and production cuts.
- Ukraine and India are the 2 largest exporter of Mn alloys.
- The production cuts as a result of the war in Ukraine is "more than offset" by the fall in demand in Europe, as well as ore inventory overhand, which still requires time for the market to digest.

# Q&A
- it takes 1-3 months to do major refurbishment/maintenance for furnaces, independent of what kind of furnace (Mn or FeSi) it is.
- $60mn CAPEX used for maintenance for 12 furnaces, conversion of 2 FeSi furnaces to Mn furnaces, and conversion of 2 FeSi furnace to Silicon Metal furnaces. Averages around $3.75mn per maintenance/conversion.
- ~6 months before all 16 furnaces are back running (currently running 12)
- 20% dividend payout may not register this year, due to recent cash acquistions
- global slowdown may mean a fall of 10-20% in regional demand for OM's products. Demand is not determined by utilization rates but determined by expectations i.e. how much customers believe they need to keep in their inventories

reference
https://stockbit.com/post/9319625