Orbital Corporation Limited (ASX: OEC) For personal use ... · REMSAFE Remote Isolation System...

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Confidential Orbital Corporation Ltd 1 - Innovative Solutions and Products Orbital Corporation Limited (ASX: OEC) Introduction to REMSAFE Pty Ltd ORBITAL February 2015 The safety system that generates revenue For personal use only

Transcript of Orbital Corporation Limited (ASX: OEC) For personal use ... · REMSAFE Remote Isolation System...

Page 1: Orbital Corporation Limited (ASX: OEC) For personal use ... · REMSAFE Remote Isolation System Installation Benefits Summary Typical Conveyor Installation *Tonnage , revenue and break

Confidential Orbital Corporation Ltd 1 - Innovative Solutions and Products

Orbital Corporation Limited (ASX: OEC)

Introduction to

REMSAFE Pty Ltd

ORBITAL February 2015

The safety system that

generates revenue For

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Page 2: Orbital Corporation Limited (ASX: OEC) For personal use ... · REMSAFE Remote Isolation System Installation Benefits Summary Typical Conveyor Installation *Tonnage , revenue and break

Confidential Orbital Corporation Ltd 2 - Innovative Solutions and Products

The Orbital Business Today ORBITAL

REMSAFE Joint Venture

Synerject Joint Venture

Systems Sales Consulting

Services Royalties &

Licenses

Operating Sector1

Remote Electrical Isolation Systems

Non Auto EMS global supplier

Engine and Fuel Systems Sales

and Distribution

Engineering Consulting for

Powertrain Applications

Royalty Revenue from Orbital

Patents

Applications / Systems

Notes:

1. EMS: Engine Management System. UAS: Unmanned Aircraft System. LNG: Liquid Natural Gas.

Orbital today earns income via 5 operating segments; System Sales, REMSAFE JV

Synerject Joint Venture, Consulting Services and Royalties & Licences.

Production, JV’s

Orbital Corporation Ltd

Orbital Australia Pty Ltd

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Page 3: Orbital Corporation Limited (ASX: OEC) For personal use ... · REMSAFE Remote Isolation System Installation Benefits Summary Typical Conveyor Installation *Tonnage , revenue and break

Confidential Orbital Corporation Ltd 3 - Innovative Solutions and Products

ORBITAL February 2015

The safety system that

generates revenue

February 2015

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Page 4: Orbital Corporation Limited (ASX: OEC) For personal use ... · REMSAFE Remote Isolation System Installation Benefits Summary Typical Conveyor Installation *Tonnage , revenue and break

Confidential Orbital Corporation Ltd 4 - Innovative Solutions and Products

Overview of REMSAFE

REMSAFE has developed, and is selling, a remote isolation product titled “REMSAFE” to bulk commodity above ground producers such as BHPB, Rio Tinto and FMG.

Overview of REMSAFE Product REMSAFE Applications

The REMSAFE product is targeted at high-volume fixed material handing plants such as:

REMSAFE also suits balance plants such as:

Conveyors Car dumpers Crushers / Mills

Reclaimers Ship Loaders Railroad Switches

What is REMSAFE? A high voltage remote isolate system designed by REMSAFE initially for use at hard rock mining operations

What does it do? System will quickly and safely de-energise and isolate bulk handling plant from motive energy sources

Why the need for REMSAFE?

REMSAFE replaces a typical 40 to 90 minute process where an electrician uses manually operated isolators

REMSAFE de-energises and isolates all drive energies to high voltage equipment in less than 3 minutes

System has the potential to save clients millions of dollar in lost tonnages

Who is using REMSAFE currently?

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Confidential Orbital Corporation Ltd 5 - Innovative Solutions and Products

The REMSAFE Product

The REMSAFE product is a system collectively made up of a number of individual components. Each installation requires a “Master Control Station” and at least one “Field Isolation Station”.

Source: REMSAFE

Master Control Station (MCS) Field Isolation Station (FIS)

Selectable Isolation Mode Cubicle (SIMC) Failsafe Instrument Cubicle (FIC)

Each site requires a MCS

One MCS will operate 30 REMSAFE systems

The system accommodates the master safety PLC and industrial PC for data logging

SIMC provides the operator with the ability to de-select drives from the overall isolation

Only one SIMC is installed per conveyor, usually located adjacent to the FIS at the conveyor’s head end

Each conveyor, car dumper etc requires at least one FIS

Mounted in close proximity to the plant it is used to isolate

Several field isolation stations can be used for a single item of plant (typically long conveyors)

Where there in inadequate room in a MSC isolator cubicle for the remote isolation hardware, REMSAFE install a Failsafe Instrument Cubicle nearby

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Page 6: Orbital Corporation Limited (ASX: OEC) For personal use ... · REMSAFE Remote Isolation System Installation Benefits Summary Typical Conveyor Installation *Tonnage , revenue and break

Confidential Orbital Corporation Ltd 6 - Innovative Solutions and Products

REMSAFE Process Explained

A typical manual isolation of a bulk haulage system can take up to 40-90 minutes. The REMSAFE remote isolation system can complete the same task in less than 3 minutes. The REMSAFE system also completes the isolation remotely and is therefore safer than current manual processes. Isolation does not require a licensed electrician.

Source: REMSAFE.

Event on bulk haulage system i.e. conveyor system

REMSAFE Remote Isolation

Manual Isolation

Lost production

time:

40 – 90 minutes

Lost production time: Approx. <3 minutes

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Page 7: Orbital Corporation Limited (ASX: OEC) For personal use ... · REMSAFE Remote Isolation System Installation Benefits Summary Typical Conveyor Installation *Tonnage , revenue and break

Confidential Orbital Corporation Ltd 7 - Innovative Solutions and Products

Case Study - 8000 tonne/hr Conveyor

REMSAFE Remote Isolation System Installation Benefits Summary

Typical Conveyor Installation

*Tonnage, revenue and break even point calculations include isolation & de-isolation events

45

KT

68

KT

68

KT

90

KT

45

KT

45

KT

90

KT

11

2 K

T

13

5 K

T

45

KT

68

KT

90

KT

46 6

8

4 4

810

12

46

8

2.9

7.3

11.6

17.5

20.4

23.3

29.1

36.4

45.1

48.0

52.4

58.2

0

20

40

60

80

100

120

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0

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Calculated Potential Production Gains over time with REMSAFE

Monthly Production Gained (KT) Derived No. Monthly Isolations

Accumulative GP Total ($M)

Gained Production Time with REMSAFE

Conventional isolation time (Mins)

45

Time lost using existing system for isolations

Minimum REMSAFE isolation

time (Mins)

Gained production time (Mins) with REMSAFE

*Times shown are per isolation OR de-isolation

Conventional Isolation

3

42

REMSAFE Isolation

REMSAFE INVESTMENT BREAK EVEN POINT

Calculation Assumed Parameters

Investment Cost

Tonnes per hour

$1,500,000

8,000

Nominal revenue per tonne

Isolations per month

$65.00

6.7

Conventional isolation time (Mins)

Minimum REMSAFE isolation time (Mins)

45

3

Days to break even 9

Number of isolations to break even 2.1

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Page 8: Orbital Corporation Limited (ASX: OEC) For personal use ... · REMSAFE Remote Isolation System Installation Benefits Summary Typical Conveyor Installation *Tonnage , revenue and break

Confidential Orbital Corporation Ltd 8 - Innovative Solutions and Products

Case Study - Summary

Pre REMSAFE With REMSAFE Saving

Conveyor Tonnes/hr 8,000 8,000

Price Iron Ore ($) $65 $65

# of isolations/month 6.7 6.7

Isolation Time (Minutes) 45 3 42 min/isolation

De-isolation Time (Minutes) 45 3 42 min/de-isolation

Tonnes lost/isolation 12,000 800 11,200 tonnes

Tonnes lost/month 80,000 5,333 28,800 tonnes

Tonnes lost/year 960,000 64,000 896,000 tonnes

Revenue lost/year ($) $62.4 million $4.2 million $58.2 million

Return on Investment 9 days

Additional Revenue with REMSAFE ($)

$58.2 million

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Page 9: Orbital Corporation Limited (ASX: OEC) For personal use ... · REMSAFE Remote Isolation System Installation Benefits Summary Typical Conveyor Installation *Tonnage , revenue and break

Confidential Orbital Corporation Ltd 9 - Innovative Solutions and Products

REMSAFE West Australia Opportunity

$350 to $550 million WA Mining Market Potential for REMSAFE

311 16

49

41 21

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304 5 804

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Page 10: Orbital Corporation Limited (ASX: OEC) For personal use ... · REMSAFE Remote Isolation System Installation Benefits Summary Typical Conveyor Installation *Tonnage , revenue and break

Confidential Orbital Corporation Ltd 10 - Innovative Solutions and Products

REMSAFE - Global Mining Potential

Immediate Markets WA Pilbara

QLD Coal Mining

South Africa

Target Markets for Expansion USA Mining

Oil & Gas (Aust + Global)

Brazil Mining

Australian Agriculture

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Page 11: Orbital Corporation Limited (ASX: OEC) For personal use ... · REMSAFE Remote Isolation System Installation Benefits Summary Typical Conveyor Installation *Tonnage , revenue and break

Confidential Orbital Corporation Ltd 11 - Innovative Solutions and Products

REMSAFE Delivers on Orbital Strategy

• Sales Growth

– Huge Market Potential

– Resources sector

– Applications beyond Resources

– International market potential

• Diversification

– New products

– New markets

– New technology

– Fits with High Tech Image

• Domestic Growth – Iron ore

– Other mineral resources

– Underground mining

– Oil and gas

• Reduced Risk

– Solid Order Book

– Business with (3) biggest miners

– Patent protected

– Strong Unique Selling Proposition For

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Page 12: Orbital Corporation Limited (ASX: OEC) For personal use ... · REMSAFE Remote Isolation System Installation Benefits Summary Typical Conveyor Installation *Tonnage , revenue and break

Confidential Orbital Corporation Ltd 12 - Innovative Solutions and Products

Orbital Delivers to REMSAFE

• Funding

• Intellectual Property/Patents Support

• Commercialisation Experience

• Back Office – Finance, Legal, Admin, Marketing, Business Development

• Local Operating Base – Balcatta, West Australia

• World Wide Industry Connections

• Existing Engineering Infrastructure

• Electronics/Software Support

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Page 13: Orbital Corporation Limited (ASX: OEC) For personal use ... · REMSAFE Remote Isolation System Installation Benefits Summary Typical Conveyor Installation *Tonnage , revenue and break

Confidential Orbital Corporation Ltd 13 - Innovative Solutions and Products

ORBITAL

Contact Orbital, or visit the website for further

information www.orbital.com.au

Orbital Corporation (ASX: OEC) 4 Whipple Street

Balcatta, Western Australia, 6021

Managing Director: Terry Stinson

Telephone: +61 (8) 9441 2311

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