Omnia (OMN) Investor Day 2024 summary

Strategic direction and growth plans

• The company is building a global mining solutions business, with BME as the fastest-growing segment, expanding in Canada, Indonesia, Australia, and high-growth regions through partnerships, modular plant investments, and infrastructure.

• Mining now contributes over 58% of group EBIT in FY24, up from 42% in FY23, reflecting successful execution of growth strategies and international expansion.

• Organic growth is prioritized, but bolt-on M&A, disciplined capital allocation, and technology partnerships underpin ongoing diversification and margin improvement.

• Mining chemicals business is integrated with BME to unlock synergies and expand globally, especially in West Africa and other regions, offering differentiated products for uranium, platinum, and gold.

• International expansion leverages first-mover infrastructure, local partnerships, and a strong Tier 1 customer base.

Technology, innovation, and ESG initiatives

• Continuous R&D drives advanced solutions such as AXXIS electronic detonators, INNOVEX dual salt emulsions, and digital platforms for blast optimization and operational efficiency.

• ESG is central, with investments in safety, water reuse, solar, renewables, and sustainability-linked debt, supporting zero harm and decarbonization goals.

• BME’s emulsion technology uses dual salt and up to 90% recycled used oil, reducing environmental impact and supporting the circular economy.

• Hypex Bio partnership introduces hydrogen peroxide-based explosives, eliminating nitrates and NOx emissions, reducing GHG footprint, and offering a scalable, operationally non-disruptive solution with proven commercial use in Scandinavia.

• Modular, automated plants enable scalable, energy-efficient production and rapid deployment in new markets.

Financial performance and capital allocation

• Mining operating margins have improved from 5.5% in FY21 to 12.1% in FY24, with medium-term margin guidance calibrated upwards.

• The company has evolved from a net debt position in FY20 to a strong net cash position since FY21, distributing R4.3bn to shareholders since FY21.

• Strong profit growth and margins in mining are expected to continue, with quality earnings and robust capital allocation supporting further growth.

• Capital allocation favors organic growth and partnerships over dilutive acquisitions, with ongoing analysis of consolidation opportunities.

• Embedded value in mining segment is highlighted by global transaction multiples, supporting long-term shareholder value creation.