Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — H1 FY2018 Earnings Presentation
22 slides from Mgx Resources's earnings presentation, Feb 13, 2018
Slide 1: December 2017 Half-Year Financial Results
December 2017 Half-Year Financial Results For personal use only MGX Investor Presentation 13 February 2018
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: December 2017 Half-Year Overview
December 2017 Half-Year Overview (All figures are expressed in Australian dollars unless stated otherwise) For personal use only Net profit after tax of $80.0m (1H 2016-17: $22.9m), comprising $15.7m from operations and $64.3m from the proceeds of the Koolan Island business interruption insurance
Slide 4: A strong performance during operational transition
December 2017 Half-Year A strong performance during operational transition For personal use only Half-Year Half-Year ended ended Group Summary Results 31 December 31 December 2017 2016 Ore tonnes mined* wmt (mill) 2.2 1.1 Ore tonnes sold* wmt (mill) 1.7 1.8 Average realised price, all products (FOB)
Slide 5: Cash, Term Deposits & Tradeable Investments
December 2017 Half-Year Cash, Term Deposits & Tradeable Investments For personal use only 5
Slide 6: Business Overview
December 2017 Half-Year 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. • Project +33% complete at end January 2018. • First ore
Slide 7: Business Objectives for 2017-18
December 2017 Half-Year Business Objectives for 2017-18 For personal use only • Extension Hill/Iron Hill - optimise Iron Hill production and margins. • Koolan Island - successfully rebuild the Main Pit seawall, dewater the pit and prepare the site for commencement of commercial production, with init
Slide 8: Mid-West Operations
Mid-West Operations Extension Hill and Iron Hill For personal use only • Extension Hill pit completed in November 2016, sales from low grade stockpiles concluded in November 2017. N • Development of Iron Hill Deposit, 3km south of Extension Hill pit, commenced February 2017, ore sales commenced June
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 • High grade hematite (66% Fe). showing consistency and width of high grade • Very low contaminants (P, Al). Main Deposit • Well understood orebody, consistent grade and width. ~30m • Well und
Slide 11: Project +33% complete at end January 2018
Koolan Island Mine Restart Project +33% complete at end January 2018 For personal use only Koolan Island Restart Project Schedule and Progress 2017 2018 2019 Task Name Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Rock Fi l l Emba nkment cons truction completed Seepa ge Ba rri er Cons truction in progress Dewa teri ng &
Slide 12: Construction Progress
Koolan Island Mine Restart Construction Progress For personal use only Starter embankment construction in July 2017 Embankment complete to 1013mRL Vertical drain pad Pipe 1006mRL drainage Completed embankment, September 2017 12
Slide 13: Construction Progress
Koolan Island Mine Restart Construction Progress For personal use only Seepage barrier location Main Pit November 2017 13
Slide 14: Construction Progress
Koolan Island Mine Restart Construction Progress For personal use only Drilling vertical drains, August 2017 Seepage barrier construction preparations, showing excavators, bentonite plant and ponds, September 2017 14
Slide 15: Construction Progress
Koolan Island Mine Restart Construction Progress For personal use only Seepage barrier works (completed panels circled) January 2018 15
Slide 16: Construction Progress
Koolan Island Mine Restart Construction Progress For personal use only Grabber excavation of Panel 016 - December 2017 Grabber excavation of Panel 050 - December 2017 16
Slide 17: Construction Progress
Koolan Island Mine Restart Construction Progress For personal use only Pumping slurry into excavated Panel 011 December 2017 Completed Panel 030 – December 2017 17
Slide 18: Construction Progress
Koolan Island Mine Restart Construction Progress For personal use only Grouting rigs working at western end of embankment, January 2018 Grouting rig in action, night shift February 2018 18
Slide 19: 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 progressing and represents a premier high-grade iron ore production opportunity with excellent financial returns, targeted to commence sales
Slide 20: December 2017 Half-Year Financial Results
December 2017 Half-Year Financial Results For personal use only MGX Investor Presentation 13 February 2018
Slide 21: Additional Information: Cost of sales & cash costs
Additional 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-17 30-Jun-17 Extension Hill (including Iron Hill) Cost of sales (excluding impairment & reversals) $'000 $73,29
Slide 22: Group Mineral Resources and Ore Reserves at 30 June 2017
Additional Information Group Mineral Resources and Ore Reserves at 30 June 2017* Koolan Island For personal use only Tonnes Fe SiO2 Al2O3 P millions % % % % Mineral Resources, above 50% Fe Measured 7.69 59.1 13.53 1.16 0.018 Indicated 41.93 64.4 6.36 0.76 0.014 Inferred 10.89 60.2 12.48 0.79 0.015 C