Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Shareholder Meeting (November 2007)
43 slides from Mgx Resources's shareholder meeting presentation, Nov 22, 2007
Slide 1: 2007 Annual General Meeting
2007 Annual General Meeting 21st November 2007 For personal use only 1 21/11/2007
Slide 2: Disclaimer
For personal use only Disclaimer 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: Agenda
For personal use only Agenda • Chairman’s address • Managing Director’s presentation • Formal business – Resolutions 1 - 8 3 21/11/2007
Slide 4: Chairman's address
For personal use only Chairman’s address Neil Hamilton 4 21/11/2007
Slide 5: Managing Director's presentation
For personal use only Managing Director’s presentation Luke Tonkin 5 21/11/2007
Slide 6: Company overview
For personal use only Company overview Corporate • Market cap1 A$2,000 million • Cash2 A$61 million • Total debt2 A$90 million • EV A$2,029 million • Index S&P/ASX 200 • Issued capital 793 million shares, 21.1 million options • Finance facilities A$200m (includes A$25m contingent debt) Financials 20
Slide 7: Key investment themes
For personal use only Key investment themes 1 Quality assets 2 Solid growth profile 3 Earnings leverage to strong iron ore price outlook 4 Disciplined financial strategy & strong performance 5 Experienced - disciplined Board & executive team with proven track record …Mount Gibson has a solid investm
Slide 8: Quality assets
1 Quality assets Koolan Island For personal use only production Tallering Peak production Extension Hill near-term production 8 21/11/2007
Slide 9: Quality assets: key statistics
1 Quality assets KEY STATISTICS For personal use only Extension Tallering Peak Koolan Island Combined Hill Reserves and Resources1 Proven & Probable Ore Reserves (Mt) 18.3 (61.7% Fe) 29.9 (65.0% Fe) 12.8 (60.3% Fe) 62.0 (62.9% Fe) Measured, Indicated and Inferred 21.0 (61.6% Fe) 62.8 (63.1% Fe) 19.5
Slide 10: Quality assets: Tallering Peak
1 For personal use only Quality assets Tallering Peak Main Range Pits looking west at end of September 2007 • First hematite ore shipped Feb 2004 • Producing 3 Mtpa • 65% Lump & 35% Fines ratio • Quality high grade, low contaminant product (61.7% Fe, 5.32 % SiO2, 2.6 % Al2O3 and 0.025 % P) • Access
Slide 11: Quality assets: Koolan Island
1 For personal use only Quality assets Koolan Island Crushing, port & ship-loading facilities • First hematite ore shipped June 2007 • Production ramping up to 4 Mtpa (expected to reach capacity by 4Q 2009) • 30% Lump & 70% Fines ratio (initial production 50% Lump & 50% Fines) • Quality high grade,
Slide 12: Main West ore-body access to Koolan Island Main Pit
1 For personal use only Quality assets Main West ore-body has ensured timely access to Koolan Island Main Pit 12 21/11/2007
Slide 13: Extension Hill (detailed feasibility study)
1 For personal use only Quality assets Extension Hill (detailed feasibility study) • Available resource for mining will be increased • Operationally robust and straightforward • Low capital cost: $84m (including contingency 15%) • Up to 3 Mtpa production rate • Average LOM cash cost: $34/t • Low str
Slide 14: Solid growth profile: production growth
2 For personal use only Solid growth profile Production growth of 59% 2007-2010 CAGR1 12.0 CAGR 2007 - 2010: 59% 10.0 10.0 Tallering Peak – full production 8.0 Production (Mt) 8.0 6.0 6.0 4.0 2.5 2.0 0.0 Note: 2007A 2008F 2009F 2010F 1 2007A figure represents shipped tonnage vs. 3.5 Mt (wmt) ore min
Slide 15: Solid growth profile: ship-loading capacity
2 For personal use only Solid growth profile Ship-loading capacity increasing to meet growth in Mount Gibson’s production from the Mid West… Rail unloading capacity requires upgrading to meet ship-loading capacity… 15 21/11/2007
Slide 16: Main Pit - world class grade and quality
2 For personal use only Solid growth profile Main Pit - World class grade and quality– 66.5% Fe, 3.48% SiO2, 0.69% Al2O3, 0.019% P, 0.3 LOI 16 21/11/2007
Slide 17: Koolan Island ore surfaces upside potential
2 Solid growth profile Koolan Island ore surfaces provide significant upside potential… For personal use only Mullet Main West Acacia East Acacia Main Eastern Mangrove Barramundi 17 21/11/2007
Slide 18: Section 2200 East
2 Solid growth profile Section 2200 East For personal use only Extensive potential mineralised surface… 18 21/11/2007
Slide 19: Lowest capital intensity among peers
2 Solid growth profile Mount Gibson’s projects have amongst the lowest capital intensity of any of its peers For personal use only 200 ‘Greenfields’ infrastructure requirement 180 Balmoral South Magnetite Southdown 160 140 Capital intensity (US$/t) Karara magnetite 120 100 Rapid growth project 4 80
Slide 20: Earnings leverage to strong iron ore price outlook
3 Earnings leverage to strong iron ore price outlook Robust iron ore price outlook For personal use only Dramatic growth in global iron ore Substantial increases forecast in iron consumption… ore prices… 2,000 140 …largely driven by China’s industrialisation Consumption (Mt) 120 +c. 20% UScper dry m
Slide 21: Disciplined financial strategy & strong performance
4 Disciplined financial strategy & strong performance Good operating margins For personal use only 2005-2007 sales revenue 2005-2007 net profit CAGR 2005 - 2007: 45% Sales revenue (A$m) 200 163 60.0 CAGR 2005 - 2007: 88% 1 47.8 160 NPAT (A$m) 45.0 120 77 73 30.0 80 23.5 13.5 40 15.0 0 0.0 2005A 2006
Slide 22: Experienced Board & executive team
5 Experienced - disciplined Board & executive team with proven track record For personal use only Mr Luke Tonkin Mr Alan Rule Mr Neil Hamilton Mr Craig Readhead Managing Director CFO Chairman Non-Executive Director B.E., MAusIMM, B.Comm, B.Acc, CA LLB B.Juris, LLB, AICD AICD • Appointed in Oct 05 •
Slide 23: Tallering Peak: access to infrastructure
For personal use only Tallering Peak Access to infrastructure – full production 23 21/11/2007
Slide 24: Koolan Island: installed infrastructure
For personal use only Koolan Island Installed infrastructure – capacity 6Mtpa 24 21/11/2007
Slide 25: Formal business of the meeting
For personal use only Formal business of the meeting • Quorum • Notice of meeting and explanatory statement taken as read • 436,102,935 valid available proxy votes received, representing 55% of total shares on issue • Details of proxies will be provided for each resolution 25 21/11/2007
Slide 26: Financial Reports
For personal use only Financial Reports To receive and consider the financial report for the year ended 30 June 2007 and the related Directors’ and Auditors’ Reports. 26 21/11/2007
Slide 27: Resolution: re-election of Craig Readhead
For personal use only Resolution 1 To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Craig Readhead, who retires in accordance with Clause 3.6 of the Company’s Constitution, and being eligible, is re-elected as a Director of the Company.” 27 21/11/200
Slide 28: Proxies
For personal use only Resolution 1 - Proxies • In favour: 291,887,818 • Against: 3,310,171 • Proxy’s discretion: 139,923,237 • Abstain: 2,064,809 28 21/11/2007
Slide 29: Resolution: re-election of Neil Hamilton
For personal use only Resolution 2 To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Neil Hamilton, having been appointed as a Director since the last annual general meeting and who retires in accordance with Clause 3.3 of the Company’s Constitution,
Slide 30: Proxies
For personal use only Resolution 2 - Proxies • In favour: 293,000,957 • Against: 2,088,088 • Proxy’s discretion: 139,920,237 • Abstain: 2,176,753 30 21/11/2007
Slide 31: Resolution: re-election of Mark Horn
For personal use only Resolution 3 To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Mark Horn, having been appointed as a Director since the last annual general meeting and who retires in accordance with Clause 3.3 of the Company’s Constitution, and
Slide 32: Proxies
For personal use only Resolution 3 - Proxies • In favour: 290,257,926 • Against: 4,816,379 • Proxy’s discretion: 139,931,723 • Abstain: 2,180,007 32 21/11/2007
Slide 33: Resolution: Remuneration Report
For personal use only Resolution 4 To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That the Remuneration Report for the Company (included in the Report of the Directors) for the year ended 30 June 2007 be adopted.” 33 21/11/2007
Slide 34: Proxies
For personal use only Resolution 4 - Proxies • In favour: 287,734,340 • Against: 6,823,846 • Proxy’s discretion: 140,012,468 • Abstain: 2,615,381 34 21/11/2007
Slide 35: Resolution: increase in Non-Executive Directors' fees
For personal use only Resolution 5 To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That, for purposes of rule 10.2 of the Company’s Constitution, Listing Rule 10.17 and for all other purposes, the maximum aggregate remuneration payable by the Company to
Slide 36: Proxies
For personal use only Resolution 5 - Proxies • In favour: 286,406,021 • Against: 9,910,420 • Proxy’s discretion: 83,709,105 • Abstain: 682,866 36 21/11/2007
Slide 37: Resolution: performance rights to Mr Tonkin
For personal use only Resolution 6 To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That, for all purposes including for the purposes of ASX Listing Rule 10.14, approval is given to grant performance rights to Mr Tonkin in respect of the financial years e
Slide 38: Proxies
For personal use only Resolution 6 - Proxies • In favour: 270,741,217 • Against: 26,040,899 • Proxy’s discretion: 134,852,688 • Abstain: 764,884 38 21/11/2007
Slide 39: Resolution: performance rights to Mr Rule
For personal use only Resolution 7 To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That, for all purposes including for the purposes of ASX Listing Rule 10.14, approval is given to grant performance rights to Mr Rule in respect of the financial years end
Slide 40: Proxies
For personal use only Resolution 7 - Proxies • In favour: 270,521,182 • Against: 26,224,952 • Proxy’s discretion: 134,862,688 • Abstain: 780,866 40 21/11/2007
Slide 41: Resolution: amendment of Constitution
For personal use only Resolution 8 To consider and, if thought fit, to pass the following resolution as a special resolution: “That the Company’s Constitution be amended by deleting the words “the Company must not charge any fee on transfer of a share” from rule 29.1.” 41 21/11/2007
Slide 42: Proxies
For personal use only Resolution 8 - Proxies • In favour: 295,174,781 • Against: 1,324,044 • Proxy’s discretion: 139,901,385 • Abstain: 785,825 42 21/11/2007
Slide 43: Wrap up
For personal use only Wrap up Thank-you for your attendance 43 21/11/2007
Mount Gibson Iron — Shareholder Meeting (November 2007) on 6ix