Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Global Iron Ore & Steel Forecast Conference 2022
23 slides from Mgx Resources's conference presentation, Mar 29, 2022
Slide 1: Global Iron Ore & Steel Forecast Conference
Mount Gibson Iron Limited For personal use only MGX Global Iron Ore & Steel Forecast Conference Perth, 29 March 2022
Slide 2: Disclaimer and Forward-Looking Statements
Disclaimer and Forward-Looking Statements For personal use only This Document 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 Documen
Slide 3: Business Overview
Business Overview For personal use only Kimberley Region – Koolan Island • High Grade (65% Fe*) hematite Direct Shipping Ore (DSO) operation. • Elevated phase of overburden stripping now largely complete and the waste:ore stripping ratio is rapidly reducing. • Imminent increases in high grade produc
Slide 4: Corporate Overview
Corporate Overview For personal use only MGX Share Price 1.20 Share Price (A$/share) Issued shares 1,211 million shares 1.00 Market capitalisation A$750 million ($0.62/share) 0.80 0.60 Cash/investments A$142 million (31 December 2021) 0.40 Bank Borrowings Nil 0.20 Dividends A$332 million (fully fran
Slide 5: Key Activities for 2022
Key Activities for 2022 Significant increase anticipated for Koolan Island high grade iron ore shipments For personal use only Increasing Completion of Koolan Significantly increased High Grade Sales Island overburden stripping cashflow generation program Koolan sales +1.5 Mwmt for FY22 Mine cashflo
Slide 6: Iron Ore Pricing: Price outlook is robust
Iron Ore Pricing Iron ore price outlook is robust For personal use only Iron Ore Price Prices fell rapidly in the second half of 2021 (US$/dmt CFR fines North China) due to Chinese Government curbs to hold 300 steel production below 2020’s record output of 1.065Bt. 65% Fe 250 62% Fe In mid-2021, Chi
Slide 7: Iron Ore Pricing: Quality differential has widened
Iron Ore Pricing Quality differential has widened For personal use only Grade Premiums & Discounts (relative to the benchmark 62% Fe CFR fines index, per metal unit) 30% Grade pricing differentials have widened after compressing in 2020, reflecting Chinese steel 20% makers’ profitability and renewed
Slide 8: Iron Ore Quality in Steel Production
Iron Ore Quality in Steel Production Ore quality has a significant impact on steel making unit costs and emissions intensity For personal use only The impurities content of iron ore (predominantly alumina & silica) impacts Blast Furnace efficiency and productivity. Blast Furnace High-impurity ores i
Slide 9: A high grade and low-impurity direct-shipping iron ore product
Koolan Island A high grade and low-impurity direct-shipping iron ore product For personal use only WA Direct Shipping Iron Ore Fines Products WA Direct Shipping Iron Ore Fines Products WA Direct Shipping Iron Ore Fines Products Iron & Phosphorus Comparative Iron & Phosphorus Iron & Alumina Comparati
Slide 10: Overview
Koolan Island Overview For personal use only 10
Slide 11: The birthplace of Western Australia's iron ore industry
Koolan Island The birthplace of Western Australia’s iron ore industry For personal use only Late 1800’s – the “Iron Islands” of Yampi Sound were a known a source of ships’ ballast materials. 1907 - first Koolan Island mining leases issued. 1938 – mine development suspended by Australian Commonwealth
Slide 12: Self-contained high grade mining, processing and shiploading operation
Koolan Island Self-contained high grade mining, processing and shiploading operation For personal use only 1km N Koolan Island is located in Yampi Sound in the Buccaneer Archipelago off the northern Kimberley coast of Western Australia, approximately 140 kilometres north of Derby. Original Airstrip
Slide 13: Fully equipped stand-alone mining, processing, shiploading & transport infrastructure
Koolan Island Fully equipped stand-alone mining, processing, shiploading & transport infrastructure For personal use only Wharf & Shiploader Airstrip Training areas Accommodation village Processing plant & stockpile handling infrastructure 13
Slide 14: Main Pit Operations
Koolan Island Main Pit Operations For personal use only Seawall embankment Work completed Footwall Upper Footwall ground Hanging wall support program area Work completed Main Pit, looking east, February 2022. 14
Slide 15: Main Pit operations
Koolan Island Main Pit operations For personal use only High-grade ore mining in eastern end of Main Pit, March 2022. 15
Slide 16: Significant recent developments
Koolan Island Significant recent developments For personal use only Substantial investments made: ➢ Overburden stripping program – the waste:ore stripping ratio is anticipated to average ~6:1 in the June half year (down from 17:1 in the December half year) and to progressively reduce from mid-2022 t
Slide 17: Mine life extension targets
Koolan Island Mine life extension targets For personal use only Geological cross-section of Koolan Main Pit, long section, showing Mineral Island, looking west Resources outside pit shell Satellite deposits/pits Airstrip Main Pit Opportunities exist for incremental extensions beyond the current 5 ye
Slide 18: A strong and respectful relationship with the Dambimangari Traditional Owners
Koolan Island A strong and respectful relationship with the Dambimangari Traditional Owners For personal use only Koolan country smoking ceremony 18
Slide 19: Carbon Emission Reduction Opportunities & Initiatives
Mount Gibson Iron Carbon Emission Reduction Opportunities & Initiatives For personal use only Iron ore is essential for steel production, and we seek to minimise our controllable carbon emissions. Higher grade (lower impurity) iron ores facilitate lower energy use and lower emissions by steel produc
Slide 20: Mining Responsibly - Sustainability Snapshot FY21
Mount Gibson Iron Mining Responsibly - Sustainability Snapshot FY21 For personal use only 20
Slide 21: Summary
Mount Gibson Iron (ASX: MGX) Summary For personal use only An established independent mid-tier iron ore producer offering meaningful exposure to production growth of high grade hematite iron ores. Disciplined pathway to materially higher sales and cashflows as Koolan’s high grade production builds.
Slide 22: Mount Gibson Iron Limited
Mount Gibson Iron Limited (ASX: MGX) For personal use only Presentation authorised by Peter Kerr, Chief Executive Officer MGX Mount Gibson Iron Limited +618 9426 7500 www.mtgibsoniron.com.au 22
Slide 23: Mineral Resources and Ore Reserves Information at 30 June 2021
Supplementary Information Mineral Resources and Ore Reserves Information at 30 June 2021* For personal use only Koolan Island Tonnes Fe SiO2 Al2O3 P Total Group Mineral Resources and Ore Reserves at 30 June 2021(above 50% Fe) millions % % % % Mineral Resources, above 50% Fe Tonnes Fe SiO2 Al2O3 P Me
Mount Gibson Iron — Global Iron Ore & Steel Forecast Conference 2022 on 6ix