Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — H1 FY2020 Earnings Presentation
19 slides from Mgx Resources's earnings presentation, Feb 19, 2020
Slide 1: Financial Results - December 2019 Half Year
Mount Gibson Iron Limited MGX For personal use only Financial Results - December 2019 Half Year 19 February 2020 1
Slide 2: Corporate Overview
Corporate Overview MGX v Platts 62% Fe CFR Index For personal use only 1.40 140 Issued shares 1,157.6 million shares 1.20 120 1.00 100 Market capitalisation A$926 million ($0.80/share) 0.80 80 Cash/investments A$398 million (31 December 2019) 0.60 60 0.40 40 Bank Borrowings Nil 0.20 20 Index ASX-300
Slide 3: Current Business Overview
Current Business Overview For personal use only Kimberley Region Koolan Island • Australia’s highest grade direct shipping ore (DSO) hematite iron ore mine. • Ore Reserves of 20.3Mt @ 65.5% Fe* at 30 June 2019 for +5 year mine life. • Ore sales commenced in the June 2019 quarter. • High grade DSO sa
Slide 4: December 2019 Half-Year Group Highlights
December 2019 Half-Year Group Highlights (all currency in Australian dollars unless stated otherwise): For personal use only • Total iron ore sales of 2.8 million wet metric tonnes (Mwmt) (1H 2018/19: 2.2 Mwmt), comprising 1.4 Mwmt of high grade direct shipping ore (DSO) and 1.4 Mwmt of low grade ma
Slide 5: Financial Results Summary
Financial Results Summary For personal use only Half-Year Half-Year Summary Results ended ended (all currency expressed in Australian dollars) 31-Dec-2019 31-Dec-2018 Physicals: Ore mined M wmt 1.4 1.9 Ore sold M wmt 2.8 2.2 Realised Price: Average realised price, all products, after shipping freigh
Slide 6: Cash and Liquid Investments
Cash and Liquid Investments For personal use only *Figures are shown net of working capital movements. 6
Slide 7: Market conditions - iron ore pricing
Market conditions - iron ore pricing For personal use only High Grade Premium / Low Grade Discount • Prices across all product types remain healthy but have moderated since (% per dmtu relative to 62% index) peaking in mid-2019 following supply disruptions in Brazil. 50% 40% • Current sentiment and
Slide 8: Operation
Koolan Island Operation For personal use only 8
Slide 9: Operation
Koolan Island Operation 1km For personal use only Koolan Island located in Yampi Sound in the Buccaneer Archipelago off the northern Kimberley coast of Western Australia approximately 140 kilometres north of Derby. N To China Existing Main Pit Airstrip Seawall Western Australian Mainland *As at 30 J
Slide 10: Operation - December 2019 Half-Year
Koolan Island Operation December 2019 Half-Year For personal use only • Half year ore sales of 1.4 Mwmt, with December 2019 Quarter sales rising +10% over prior quarter. • Ore production rising (17% increase in the December quarter). • Nine shipments completed in November and December – in line with
Slide 11: Performance and Guidance for 2019/20
Koolan Island Operation Performance and Guidance for 2019/20 Cyclonic rain from TC Blake in For personal use only Main Pit, early January 2020 • Operations in the first half of January 2020 were interrupted by extreme weather (Tropical Cyclones Blake and Claudia). • Ore production and shipping resum
Slide 12: Main Pit Operations
Koolan Island - Main Pit Operations For personal use only Main Pit looking north-west January 2020 Footwall Seawall 12
Slide 13: Main Pit Operations
Koolan Island – Main Pit Operations For personal use only Main Pit looking west February 2020 Seawall Footwall 13
Slide 14: Crushing & Loading
Koolan Island – Crushing & Loading For personal use only Crushing plant, February 2020 14
Slide 15: Mid-West Operations
Mid-West Operations December 2019 Half-Year For personal use only • Low-grade sales from Extension Hill of 1.4 Mwmt in the December 2019 half-year versus the initial target of 1.0Mwmt. • Average site cash cost of $42/wmt FOB* for the half-year. • Average realised prices of US$35/dmt FOB for lump and
Slide 16: Business Objectives for 2019/20
Business Objectives for 2019/20 For personal use only • Koolan Island – complete the ramp-up of ore production and sales in line with the mine plan to maximise cashflow and capitalise on favourable market conditions. • Mid-West operations – complete the current low-grade sales program and extend the
Slide 17: Summary
Summary For personal use only • Mount Gibson is Australia’s highest grade (+65% Fe) producer of direct shipping hematite iron ores. • Koolan Island sales are ramping up and the Mid-West’s low grade sales are continuing, capitalising on iron ore market conditions. • Ability to generate positive opera
Slide 18: Mount Gibson Iron Limited Overview
Mount Gibson Iron Limited Overview MGX For personal use only Financial Results - December 2019 Half Year 19 February 2020 18
Slide 19: Supplementary Information
Supplementary Information Mineral Resources and Ore Reserves Information at 30 June 2019 Koolan Island For personal use only Tonnes Fe SiO2 Al2O3 P Total Group Mineral Resources and Ore Reserves at 30 June (above 50% Fe) millions % % % % M ineral R esources, above 50% Fe Tonnes Fe SiO2 Al2O3 P Measu