Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — H1 FY2019 Earnings Presentation
21 slides from Mgx Resources's earnings presentation, Feb 19, 2019
Slide 1: Financial Results for December 2018 Half-Year
Financial Results for December 2018 Half-Year For personal use only MGX Investor Presentation 19 February 2019
Slide 2: Disclaimer
Disclaimer For personal use only This Document is Confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person, or published, in whole or in part, for any purpose without prior written approval from Mount Gibson Iron Limited. This Document is not a
Slide 3: Corporate Overview
Mount Gibson Iron Corporate Overview 0.80 For personal use only 0.70 Issued capital 1,128.4 million shares 0.60 Market capitalisation A$767 million (at $0.68/share, 15 Feb 2019) 0.50 Cash and investments A$431 million (31 December 2018) 0.40 Borrowings Nil 0.30 Index ASX All Ordinaries 0.20 0.10 - F
Slide 4: Business Overview
Mount Gibson Iron Business Overview For personal use only Koolan Island • Australia’s highest grade DSO hematite mine. • Ore Reserves of 21.0Mt @ 65.5% Fe.* • Seawall seepage barrier completed July 2018, dewatering progressing and mining underway. • First ore sales in April 2019. • Projected FY2019
Slide 5: December 2018 Half-Year Overview
December 2018 Half-Year Overview (All figures are expressed in Australian dollars unless stated otherwise) For personal use only Net profit after tax of $45.1 million (1H 2017-18: $80.0 million, which included $64.3 million from the proceeds of the Koolan Island business interruption insurance set
Slide 6: A solid performance during operational transition
December 2018 Half-Year A solid performance during operational transition For personal use only Half-Year Half-Year Results for the half-year ended 31 December 2018 compared with the ended ended prior corresponding half-year period: 31 December 31 December 2018 2017 Ore tonnes mined wmt (mill) 1.9 2
Slide 7: Cash, Term Deposits & Tradeable Investments
December 2018 Half-Year Cash, Term Deposits & Tradeable Investments For personal use only * Site operations includes working capital movements. 7
Slide 8: Market outlook: Iron ore pricing remains strong
Market outlook Iron ore pricing remains strong For personal use only HG Premium / LG Discount Iron Ore Price (US$/dmt CFR North China) (% per dmtu relative to 62% index) 120 50% 40% 100 30% 80 20% 60 10% 0% 40 -10% 20 -20% -30% 0 -40% -50% 65% 62% 58% HG Premium LG Discount Koolan Island will be Aus
Slide 9: Mid West: Extension Hill and Iron Hill
Mid West Extension Hill and Iron Hill For personal use only Last ore load, December • Total ore sales from Extension Hill/Iron Hill of 2018 2.2 Mwmt at average site all-in cash cost* of $37/wmt in the December 2018 half-year. • Mining completed December 2018, final ore train departed at the end of J
Slide 10: Koolan Island: A premier high grade iron ore opportunity
Koolan Island A premier high grade iron ore opportunity For personal use only Koolan Island located in Yampi Sound in the Buccaneer Archipelago 1km off the northern Kimberley coast of Western Australia approximately 140 kilometres north of Derby. N Main Pit Seawall One of the world’s premier high
Slide 11: Koolan Island: A unique high-grade hematite deposit
Koolan Island A unique high-grade hematite deposit For personal use only Orebody • High grade hematite (65.5% Fe). Main Deposit - Ore Reserves Ore Reserves reported above 50% Fe • Low contaminants (P, Al, Si). Fe SiO2 Al2O3 Phos Category Mt • Well understood orebody, consistent grade % % % % and wid
Slide 12: Koolan Island: Operational Profile
Koolan Island Operational Profile For personal use only Operating Year (from Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 21 Mt production commencement) Total Ore Mined (Mt) 2.9 1.9 5.1 7.4 4.0 - 21.3# Waste Mined (Mt) 19.1 20.5 16.3 8.8 2.7 - 67.5 Total Movement (Mt) 22.0 22.4 21.4 16.3 6.7 - 88.8 Str
Slide 13: Koolan Island: Pre-production activities nearing completion
Koolan Island Pre-production activities nearing completion For personal use only • Pre-production activities nearing completion: Seawall embankment construction commenced June 2017, completed September 2017. Impermeable seepage barrier within the seawall completed July 2018. Dewatering and foo
Slide 14: Koolan Island: Approaching first ore sales
Koolan Island Approaching first ore sales For personal use only Main Pit, looking west, February 2019. Main Pit October 2018 Waste mining progressing at current rate of +1Mt/month Blasted waste areas ready for mining 14
Slide 15: Koolan Island: Mining progressing ahead of ore production
Koolan Island Mining progressing ahead of ore production For personal use only Starter embankment before closure of breach , July 2017 Waste mining in central Main Pit, looking west, February 2019 15
Slide 16: Koolan Island: Site infrastructure recommissioning underway
Koolan Island Site infrastructure recommissioning underway For personal use only Crushing plant recommissioning, February 2019 Jetty and Ship-loader Ore conveyor to ship-loader Screens Primary and secondary crushing circuits 16
Slide 17: FY2018-19 Business Objectives
Mount Gibson Iron FY2018-19 Business Objectives For personal use only • Mid-West operations – complete sales from the Iron Hill operation and transition the Mid West business to closure. • Koolan Island – conclude pre-production activities and commence production and sales in line with the mine plan
Slide 18: A proven high grade hematite iron ore exporter
Mount Gibson Iron A proven high grade hematite iron ore exporter For personal use only • The high grade Koolan Island Restart Project represents a compelling investment which capitalises on the rising demand for high grade iron ores. • MGX is the only Australian producer that will provide exposure t
Slide 19: Financial Results for December 2018 Half-Year
Financial Results for December 2018 Half-Year For personal use only MGX Investor Presentation 19 February 2019
Slide 20: Supplementary Information: Cost of sales & cash costs
Supplementary Information Cost of sales & cash costs For personal use only Mount Gibson Iron Limited Half-year Year Reconciliation of Cost of Sales to Cash Cost Information ended ended 31-Dec-18 30-Jun-18 Extension Hill (including Iron Hill) Cost of sales (excluding impairment & reversals), FOB $'00
Slide 21: Supplementary Information: Mineral Resources and Ore Reserves
Supplementary Information Mineral Resources and Ore Reserves Information at 30 June 2018 Koolan Island Total Group Mineral Resources and Ore Reserves at 30 June 2018 For personal use only Tonnes Fe SiO2 Al2O3 P (above 50% Fe) millions % % % % Mineral Resources, above 50% Fe Tonnes Fe SiO2 Al2O3 P Me