Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Shareholder Meeting (November 2021)
20 slides from Mgx Resources's shareholder meeting presentation, Nov 10, 2021
Slide 1: Annual General Meeting CEO Presentation
Mount Gibson Iron Limited For personal use only Annual General Meeting MGX CEO Presentation 10 November 2021 1
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: Corporate Overview
Corporate Overview For personal use only MGX Share Price Issued shares 1,211 million shares 1.20 Share Price (A$/share) 1.00 Market capitalisation A$0.5 billion ($0.40/share) 0.80 Cash/investments A$250 million (30 September 2021) 0.60 Bank Borrowings Nil 0.40 Index ASX-300 0.20 Dividends A$332 mill
Slide 4: Business Overview
Business Overview For personal use only Kimberley Region Koolan Island • High grade hematite Direct Shipping Ore (DSO) with a 65.3% Fe ore reserve grade*. • Ore sales 1.8 Mwmt in 2020/21 financial year, targeting sales of 2.0 Mwmt in 2021/22, with grades rising in June half. • Elevated waste strippi
Slide 5: FY2021 Highlights
FY2021 Highlights (all currency in Australian dollars unless stated otherwise): For personal use only Operating cashflow of Sales of 3.0 Mwmt NPAT of $64.0 million $165.2 million Koolan 1.8 Mwmt On sales revenue of Before interest income ($6.9m), Mid-West 1.2 Mwmt $312 million FOB mine development (
Slide 6: Market Conditions
Market Conditions Iron Ore Pricing and Grade Differentials For personal use only High Grade Premium / Medium Grade Discount HG Premium Iron Ore Price (% per dmtu relative to 62% index) MG Discount (US$/dmt CFR North China) 300 50% 40% 30% 20% 250 10% 0% Jan-17 Oct-17 Jan-18 Oct-18 Jan-19 Oct-19 Jan-
Slide 7: September Quarter 2021
September Quarter 2021 (all currency in Australian dollars unless stated otherwise): For personal use only Cash/investment Koolan Ore Reserves reserves of $250 million Sales of 0.44 Mwmt 17.5 Mt at 65.3% Fe* After net expenditure of $111m Koolan 0.32 Mwmt Mid-West 0.12 Mwmt One of the highest grade
Slide 8: Mid-West Operations
Mid-West Operations Shine Iron Ore Project - Optionality For personal use only Suspension to preserve Shine’s value and enable restart if conditions improve sufficiently and sustainably: • Suspension due to deteriorating prices and increased product discounts and shipping freight costs. • Ore mining
Slide 9: Koolan Island location
Koolan Island For personal use only 1km N Original Airstrip Seawall Mangrove deposit 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. Western Australian Mainland 9
Slide 10: A premium direct-shipping iron ore product
Koolan Island A premium direct-shipping iron ore product For personal use only WA DSO Iron Ore Fines WA DSO Iron Ore Fines WA DSO Iron Ore Fines Comparative Iron and Phosphorus Comparative Iron and Alumina Comparative Iron and Silica Fe % Fe % Fe % MGX Koolan Island Main Pit MGX Koolan Island Main P
Slide 11: Current Mining Operations
Koolan Island Current Mining Operations For personal use only Mining in central Main Pit, September 2021. Substantial investment program is tracking to deliver production and cashflow gains: • Advanced waste stripping program will open up high-grade Main Pit orezones for increased production and cas
Slide 12: Main Pit Operations
Koolan Island Main Pit Operations For personal use only Upper Footwall ground support program area P1 P3 Seawall P4 embankment P2 Hanging wall Footwall Main Pit, looking west, October 2021. 12
Slide 13: Upper footwall anchoring program
Koolan Island A new angle on high grade mining - Upper footwall anchoring program For personal use only • Geotechnical controls focus on various aspects of the seawall, hanging wall and footwall. • The footwall geotechnical program involves the installation of rock anchors using suspended drilling “
Slide 14: Main Pit operations
Koolan Island Main Pit operations Mining in east end of Main Pit, For personal use only October 2021. 14
Slide 15: Crusher Upgrade Project
Koolan – Crusher Upgrade Project For personal use only Koolan Island processing and shiploading infrastructure, November 2021 • Upgrade to handle the substantial increase in ore Wharf & production expected over the Shiploader following five years. New • First stage completed: New Screens reconfigura
Slide 16: Carbon Emission Reduction Opportunities & Initiatives
Carbon Emission Reduction Opportunities & Initiatives For personal use only • Iron ore is essential for steel production, and we seek to minimise our carbon emissions from the activities we control. We do not “greenwash”. • Higher grade (lower impurity) iron ores facilitate lower energy use and lowe
Slide 17: Communities are Critical
Communities are Critical (Figures as at 31 October 2021) For personal use only • Local employment - Over 20% of our Koolan Island employees reside in the Kimberley region. We seek to increase this. • Gender diversity - women account for 18% of our employees and 22% of executive and senior management
Slide 18: Mount Gibson take-aways
Mount Gibson take-aways For personal use only • Mount Gibson is an established independent mid-tier iron ore producer offering meaningful exposure to production growth of premium high grade iron ores. • A disciplined pathway to materially higher sales and cashflows at its Koolan Island operation whe
Slide 19: Mount Gibson Iron Limited
Mount Gibson Iron Limited For personal use only MGX AGM CEO Presentation authorised by Peter Kerr Chief Executive Officer Mount Gibson Iron Limited +618 9426 7500 www.mtgibsoniron.com.au
Slide 20: Supplementary Information
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
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