Lycopodium Limited Annual General Meeting 2008 Lycopodium Limited - - PowerPoint PPT Presentation

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Lycopodium Limited Annual General Meeting 2008 Lycopodium Limited - - PowerPoint PPT Presentation

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Lycopodium Limited 2008 Annual General Meeting Lycopodium Limited Annual General Meeting 2008 Lycopodium Limited 2008 Annual General Meeting Lycopodium Limited Annual General Meeting 2008 Operations Report Update Lycopodium Limited 2008

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Lycopodium Limited 2008 Annual General Meeting

Lycopodium Limited Annual General Meeting 2008

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Lycopodium Limited 2008 Annual General Meeting

Lycopodium Limited Annual General Meeting 2008

Operations Report Update

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Lycopodium Limited 2008 Annual General Meeting

CONTENT

  • 2008 Snapshot
  • Sector overview and Lycopodium’s

status

  • Rebranding
  • HSE
  • Project update
  • Staff acknowledgment
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Lycopodium Limited 2008 Annual General Meeting

  • 2008 was another strong year for Lycopodium with record revenues and earnings
  • The high level of activity within the resources sector has continued

68.97 84.15 104.64 120.5 20 40 60 80 100 120 140 2005 2006 2007 2008

Revenue ($ millions)

5.67 7.59 8.89 12.4 2 4 6 8 10 12 14 2005 2006 2007 2008

NPAT ($ millions)

10.5 15 17.5 25 5 10 15 20 25 2005 2006 2007 2008

Amount of Dividend (cents)

2008 SNAPSHOT

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Lycopodium Limited 2008 Annual General Meeting

  • Engineering services sector growth has

been strong for a number of years

  • Recent volatility and uncertainty in global

financial markets, with declining commodity prices has led to a rapid softening in the minerals services sector

  • General chemical, manufacturing,

pharmaceutical and industrial sectors remain challenging

  • Companies are reviewing operations and

expansion plans, declining demand and access to funding delaying some plans

  • Long term effects of the global situation

remain unclear OVERVIEW OVERVIEW

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Lycopodium Limited 2008 Annual General Meeting

  • Lycopodium’s previous level of activity

continues, personnel numbers at ~750

  • Rate of growth of further opportunities

has slowed

  • Rio Tinto Iron Ore revising plans for

their 320Mt expansion project, but continuing with projects that are part

  • f their 220Mt expansion
  • Two smaller studies and an iron ore

design package have been curtailed but collectively are not material to Lycopodium’s general activities OVERVIEW

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Lycopodium Limited 2008 Annual General Meeting

  • Lycopodium’s strategies of

diversification in client base, commodity, project and operational geography have positioned the company to be able to deal with these challenges

  • Directors and management remain

focused

  • Lycopodium continues to operate

without the need for debt

  • Strategy of organic growth has

allowed the company to grow without inherent integration risk OVERVIEW

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Lycopodium Limited 2008 Annual General Meeting

  • Corporate rebranding launched in November 2008
  • Change of name of some companies within the group
  • Lycopodium Minerals Pty Ltd
  • Lycopodium Minerals QLD Pty Ltd
  • Lycopodium Process Industries Pty Ltd
  • OMC, SUPL remain as before
  • Refreshed company image including office branding, stationery
  • New company website
  • New corporate logo:

REBRANDING

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Lycopodium Limited 2008 Annual General Meeting

  • Lycopodium continues to deliver

projects in a safe and environmentally responsible manner

  • Good HSE performance since last

report HSE

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Lycopodium Limited 2008 Annual General Meeting

PROJECT UPDATE Buzwagi Gold Project – Tanzania – Barrick Gold Corporation

Construction continues with equipment installation, structural steel, electrical and instrumentation work ongoing

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Lycopodium Limited 2008 Annual General Meeting

PROJECT UPDATE Buzwagi Gold Project – Tanzania – Barrick Gold Corporation

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Lycopodium Limited 2008 Annual General Meeting

PROJECT UPDATE Kolwezi Tailings Copper/Cobalt Project – DRC – First Quantum Minerals

Construction continues with tailings dam, general earthworks, concrete works, structural steel, and tankage in progress

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Lycopodium Limited 2008 Annual General Meeting

PROJECT UPDATE Kolwezi Tailings Copper / Cobalt Project – DRC– First Quantum Minerals

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Lycopodium Limited 2008 Annual General Meeting

PROJECT UPDATE Hope Downs Stage 2 – Western Australia – Rio Tinto Iron Ore

Construction almost complete, commissioning underway

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Lycopodium Limited 2008 Annual General Meeting

PROJECT UPDATE Hope Downs Stage 2 – Western Australia – Rio Tinto Iron Ore

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Lycopodium Limited 2008 Annual General Meeting

PROJECT UPDATE Masbate Gold Project – Philippines – CGA Mining / Leighton Contractors

Construction well advanced with commissioning 1Q2009

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Lycopodium Limited 2008 Annual General Meeting

PROJECT UPDATE Ravensthorpe, Kalgoorlie, Mt Keith & Leinster

BHP Billiton Nickel West sites

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Lycopodium Limited 2008 Annual General Meeting

PROJECT UPDATE Tropicana - AngloGold Ashanti

Concentrated Solar Power Plant Study, Western Australia

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Lycopodium Limited 2008 Annual General Meeting

PROJECT UPDATE Chirano Plant Upgrade – Ghana – Red Back Mining

Site construction has commenced

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Lycopodium Limited 2008 Annual General Meeting

PROJECT UPDATE Sodium Hypochlorite Plant – Western Australia – Orica Chemicals

Commissioning in progress

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Lycopodium Limited 2008 Annual General Meeting

PROJECT UPDATE Aircraft Component Repair Station – Victoria – Boeing Hawker de Havilland

First phase complete

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Lycopodium Limited 2008 Annual General Meeting

PROJECT UPDATE Varvarinskoye Copper/Gold Operation – Kazakhstan Three K Exploration & Mining

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Lycopodium Limited 2008 Annual General Meeting

PROJECT UPDATE MOPU (Million Ounce Plant Upgrade) - PNG - Lihir Services Australia

Engineering has commenced

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Lycopodium Limited 2008 Annual General Meeting

PROJECT UPDATE

  • Ongoing upgrade projects for Yakult

Australia in Victoria which include Bottle Storage Tank, Conveying System Stages 1 & 2 and the Seed Storage project

  • Design and supply of an inhibitor

system for the Rio Tinto Aluminium Yarwun Stage 2 project has commenced

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Lycopodium Limited 2008 Annual General Meeting

PROJECT UPDATE

  • Maintenance Planning & Reliability

Engineering Services to the Oil & Gas sector for clients including Woodside Energy and Chevron continues

  • Also, further assignments have

commenced for an African copper/cobalt project for Freeport- McMoRan as well as services are being provided on an Australian gold project for Newmont Gold

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Lycopodium Limited 2008 Annual General Meeting

  • The Board of Lycopodium extend their appreciation to all management and staff

for their continued valued contribution towards the success of the company

STAFF ACKNOWLEDGEMENT

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Lycopodium Limited 2008 Annual General Meeting

Thank You

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Lycopodium Limited 2008 Annual General Meeting

Lycopodium Limited Annual General Meeting 2008

Questions

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Lycopodium Limited 2008 Annual General Meeting

Lycopodium Limited Annual General Meeting 2008

Appendix : Share Price Information

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Lycopodium Limited 2008 Annual General Meeting

3 year share price performance 12 month share price performance

20 40 60 80 100 120 140 160 180 200 Nov-07 Feb-08 May-08 Aug-08 Nov-08 S&P ASX 300 S&P ASX 300 Industrials Engineering, Consulting & Construction Services Engineering & Consulting Services Lycopodium (55% ) (72% ) (68% ) (46% ) (47% ) 50 100 150 200 250 300 350 400 450 500 Nov-05 May-06 Nov-06 May-07 Nov-07 May-08 Nov-08 S&P ASX 300 S&P ASX 300 Industrials Engineering, Consulting & Construction Services Engineering & Consulting Services Lycopodium (32% ) (27% ) 6% 24% 6%

Source: Bloomberg as at 21/11/2008 / Ernst & Young

Share price performance

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Lycopodium Limited 2008 Annual General Meeting

1 month % change in share price 3 month % change in share price 12 month % change in share price Engineering, consulting and construction services Engineering and consulting services Lycopodium

(21) (21) (24) (32) (38) (42) (43) (45) (48) (59) (80) (60) (40) (20)

  • 1 month %

change (30) (36) (45) (49) (52) (59) (64) (67) (75) (78) (100) (80) (60) (40) (20)

  • 3 month %

change (54) (55) (60) (61) (61) (74) (74) (81) (81) (87) (100) (80) (60) (40) (20)

  • 12 month %

change

Source: Bloomberg as at 21/11/2008 / Ernst & Young

Share price performance

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Lycopodium Limited 2008 Annual General Meeting

Source: Bloomberg as at 21/11/2008 / Ernst & Young

12 month share price performance

LYL Volume Lycopodium Share price (ASX)

30/1 0/08 US Federal Reserve cuts rates 28/1 0/08 US consumer confidence falls to a record low the lowest since tracking began in 1 967 2 7/ 0 2 / 2 0 0 8 First half of t he 2 0 0 7/ 0 8 f inancial year prof it up 12 % t o $4 .8 m 12 / 0 3 / 0 8 D irect or Rodney Leonard sells 3 55,0 0 0 shares 3/1 0/08 US passes a $700b bail out plan 1 5/09/08 Lehman Brothers files for bankruptcy in US 9/01 /08 The World Bank predicts that global economic growth will slow in 2008 1 7/03/08 Bear Stearns acquired by JP M organ Chase 2 0 / 0 6 / 0 8 Prof it guidance released- upgrade

  • f 0 7/ 0 8 f orecast ,

revenue up 8 .6 % t o $12 0 m and prof it up 12 .7% t o $11.5m 22/01 /08 Biggest 1

  • day

loss on world markets in 6 years 1 4/07/08 Financial authorities step in to assist America's two largest lenders, Fannie M ae and Freddie M ac 2 2 / 0 8 / 0 8 Preliminary Final R eport - af t er t ax prof it of $12 .4 m exceeds prof it guidance by 8 %

(55%)

1 5/1 0/08 The Dow Jones index falls 733 points

  • r 7.87%
  • its biggest

percentage fall since 26 October 1 987

0.0 1.0 2.0 3.0 4.0 5.0 6.0 Share Price ($A) Nov 07 Jan 08 Mar 08 May 08 Jul 08 Sep 08 Nov 08

12.0x 3.9x