Slide 1: FY2016-17 Financial Results
FY2016-17 Financial Results For personal use only MGX Investor Presentation 16 August 2017
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: FY2016-17 Overview
FY2016-17 Overview (All figures are expressed in Australian dollars unless stated otherwise) For personal use only Total product sales 3.2 Mwmt*. Total sales revenue of $173 million including the discontinued Tallering Peak operation. Gross profit before tax from continuing operations of $36.5
Slide 4: A strong performance during operational transition
FY2016-17 A strong performance during operational transition For personal use only Year Year ended ended Group Summary Results 30 June 30 June 2017 2016 Physicals (continuing & discontinued operations): Ore tonnes mined M wmt 1.9 6.0 Ore tonnes sold M wmt 3.2 5.0 Revenue (continuing & discontinued o
Slide 5: Cash, Term Deposits & Liquid Investments
FY2016-17 Cash, Term Deposits & Liquid Investments For personal use only * * Excludes $64.3 million proceeds from the Koolan seawall business interruption claim settlement agreed and received in July 2017. 5
Slide 6: Mount Gibson Iron Business overview
Mount Gibson Iron Business overview For personal use only Koolan Island • Koolan Island Restart Project approved April 2017. • Development capex $97m. • Stage One Ore Reserves 12.8Mt a 66% Fe*. • Material site works commenced June 2017. • First ore sales targeted for early 2019. Mid-West Region Exte
Slide 7: Mid West Extension Hill and Iron Hill
Mid West Extension Hill and Iron Hill For personal use only • Extension Hill pit completed in November 2016, sales from N stockpiles have continued into mid 2017. • Development of Iron Hill Deposit, 3km south of Extension Hill pit, approved in February 2017. • Iron Hill sales commenced June 2017. •
Slide 8: FY2017-18 Business Objectives
MGX FY2017-18 Business Objectives For personal use only • Extension Hill/Iron Hill - optimise Iron Hill production and costs. • Koolan Island - successfully rebuild the Main Pit seawall, dewater the pit and prepare the site for commencement of commercial production, with initial ore sales anticipate
Slide 9: A premier high grade iron ore opportunity
Koolan Island Mine Restart A premier high grade iron ore opportunity For personal use only One of the world’s premier high grade hematite production N opportunities. Stage 1 Main Pit Ore Reserves of 12.8Mt @ 66.0% Fe* and initial mine life of 3.5 years. Initial capex of $97m including $10m con
Slide 10: An unrivalled high grade hematite deposit
Koolan Island Mine Restart An unrivalled high grade hematite deposit For personal use only Main Pit in 2014 showing consistency and width of high grade Main Deposit • High grade hematite (66% Fe). • Very low contaminants (P, Al). • Well understood orebody, consistent grade and width. • Well understo
Slide 11: Design and Cost
Koolan Island Mine Restart Design and Cost For personal use only • Safe and viable seawall design and construction method confirmed and peer reviewed by independent engineering experts. • Factor of Safety of 1.3 during operations. • Seawall incorporates 467m cement bentonite seepage barrier. Item Co
Slide 12: Seepage Barrier Construction
Koolan Island Mine Restart Seepage Barrier Construction For personal use only Seepage Barrier Seawall 12
Slide 13: Project Schedule
Koolan Island Mine Restart Project Schedule For personal use only • All necessary approvals in place to proceed. • Embankment construction commenced June 2017. • Dewatering targeted to commence in mid 2018. • Mining targeted to commence December quarter 2018. • 24 months from approval to production,
Slide 14: Work progressing to plan
Koolan Island Mine Restart Work progressing to plan For personal use only Embankment construction commenced June 2017. Seawall breach closed early August 2017. Drilling for instrumentation installation to commence August. Seepage barrier construction on track to commence in September. Dewa
Slide 15: Robust financial metrics and low unit costs
Koolan Island Mine Restart Robust financial metrics and low unit costs For personal use only Koolan Island Stage One Pit Item Unit Unit Rate Wmt of 62%Fe Iron Ore Price & FX Assumption US$55/dmt & A$1.00/US$0.75 US$65/dmt & A$1.00/US$0.75 Mining $6.95 TMM Pre-Tax NPV (8% real pre-tax)* $106 million
Slide 16: Our strengths set us apart
MGX Our strengths set us apart For personal use only • Iron Hill mine extends life of the Mid-West operations to late 2018. • Koolan Island Restart Project is underway and represents a premier high-grade iron ore production opportunity with excellent financial returns and targeted to commence sales
Slide 17: FY2016-17 Financial Results
FY2016-17 Financial Results For personal use only MGX Investor Presentation 16 August 2017
Slide 18: Supplementary Information: Cost of sales & cash costs
Supplementary Information Cost of sales & cash costs For personal use only Mount Gibson Iron Limited Year Year Reconciliation of Cost of Sales to Cash Cost Information ended ended 30-Jun-17 30-Jun-16 Extension Hill (including Iron Hill) Cost of sales (excluding impairment & reversals) #039;000 $128,324
Slide 19: Koolan Island Main Deposit Mineral Resources and Ore Reserves
Supplementary Information Koolan Island Main Deposit Mineral Resources and Ore Reserves at 26 April 2017* For personal use only Main Deposit Mineral Resources, above 50% Fe Competent Persons Statements Main Deposit Mineral Resources Tonnes Fe SiO2 Al2O3 P The information in this report relating to t
Slide 20: Iron Hill Mineral Resources at June 2016
Supplementary Information Iron Hill Mineral Resources at 30 June 2016* For personal use only Iron Hill Mineral Resources, above 50% Fe Tonnes Fe SiO2 Al2O3 P millions % % % % 1.47 60.5 8.35 1.02 0.047 Indicated 7.33 57.9 8.65 1.74 0.069 Inferred 8.80 58.3 8.60 1.62 0.065 Total NOTE: Discrepancies ma