Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Global Iron Ore & Steel Forecast Conference 2019
17 slides from Mgx Resources's conference presentation, Mar 20, 2019
Slide 1: Mount Gibson Iron – Exporting Australia's highest grade direct shipping iron ore
Mount Gibson Iron Exporting Australia’s highest grade direct shipping iron ore For personal use only MGX Global Iron Ore & Steel Forecast Conference 20 March 2019
Slide 2: Cautionary Statements & Disclaimer
Cautionary Statements & Disclaimer For personal use only This presentation has been prepared by Mount Gibson Iron Limited (ASX:MGX, “MGX”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in MGX or as an inducement to make an offer or invitation with
Slide 3: Business Overview – Long-standing mid-tier iron ore producer
Mount Gibson Iron Business Overview – Long-standing mid-tier iron ore producer For personal use only Koolan Island • Australia’s highest grade direct shipping (DSO) hematite mining operation. • Ore Reserves of 21.0Mt @ 65.5% Fe.* • Seawall seepage barrier completed mid-2018, dewatering nearing compl
Slide 4: Corporate Overview
Mount Gibson Iron Corporate Overview 1.00 For personal use only 0.90 Market capitalisation A$1.0 billion (at $0.91/share, 19 March 2019) 0.80 Issued capital 1,128.4 million shares 0.70 0.60 Shareholders 10,300 0.50 0.40 Cash and investments A$431 million (31 December 2018) 0.30 Borrowings Nil 0.20 0
Slide 5: Mid West: Successful business now transitioning to closure
Mid West Successful business now transitioning to closure For personal use only Last ore load, December 2018 • Total ore sales from Extension Hill/Iron Hill in the Dec-18 half year of 2.2 Mwmt. • Mining finished in December 2018, railing ended in late January 2019, and final DSO cargoes completed in
Slide 6: A premier high grade iron ore opportunity
Koolan Island A premier high grade iron ore opportunity 1km For personal use only Koolan Island located in Yampi Sound in the Buccaneer Archipelago To China off the northern Kimberley coast of Western Australia approximately 140 kilometres north of Derby. N Main Pit Airstrip Seawall x One of the wor
Slide 7: The birthplace of Western Australia's iron ore industry
Koolan Island The birthplace of Western Australia’s iron ore industry For personal use only • “Iron Islands” of Yampi Sound a source of ships’ ballast in 19th Century. • 1907 - first commercial mining operation attempted on Koolan Island. • 1938 – mine closed due to Commonwealth embargo on iron ore
Slide 8: A unique high-grade hematite deposit
Koolan Island A unique high-grade hematite deposit For personal use only Main Pit, looking west, March 2019. Main Deposit - Ore Reserves Ore Reserves reported above 50% Fe Fe SiO2 Al2O3 Phos Category Mt % % % % Proved 0.1 63.4 7.25 1.11 0.013 Probable 20.9 65.5 4.53 0.88 0.012 Total 21.0 65.5 4.54 0
Slide 9: Market outlook: Iron ore pricing remains well supported
Market outlook Iron ore pricing remains well supported Iron Ore Price For personal use only HG Premium / LG Discount (US$/dmt fines CFR North China) (% per dmtu relative to 62% Fe index) 120 50% 100 40% 30% 80 20% 60 10% 0% 40 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul
Slide 10: A premium product: Iron and Phosphorous comparison
A premium product Koolan Island moves MGX up the quality curve For personal use only WA DSO Iron Ore Fines – Comparative Iron and Phosphorous 66 MGX Koolan Island Main Pit 65 64 63 62 MGX Mid West 2018 61 Fe % 60 59 58 57 56 0 0.02 0.04 0.06 0.08 0.1 0.12 0.14 P% Sources: Mount Gibson Iron, public/c
Slide 11: A premium product: Iron and Alumina comparison
A premium product Koolan Island moves MGX up the quality curve For personal use only WA DSO Iron Ore Fines – Comparative Iron and Alumina 66 MGX Koolan Island Main Pit 65 64 63 62 MGX Mid West 2018 Fe (%) 61 60 59 58 57 56 0.75 1.25 1.75 2.25 2.75 3.25 3.75 Al2O3 (%) Sources: Mount Gibson Iron, publ
Slide 12: Operational Profile – Feasibility Study Mine Plan
Koolan Island Operational Profile – Feasibility Study Mine Plan For personal use only Operating Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total (from sales commencement) Ore Mined (Mt) 2.9 1.9 5.1 7.4 4.0 - 21.3# Waste Mined (Mt) 19.1 20.5 16.3 8.8 2.7 - 67.5 Total Movement (Mt) 22.0 22.4 21.4
Slide 13: Approaching first ore sales
Koolan Island Approaching first ore sales For personal use only Waste mining in central Main Pit, looking west, March 2019 • Pre-production activities nearing completion: ¾ Seawall embankment construction completed in 2017 and seepage barrier within the seawall completed in July 2018. ¾ Dewatering a
Slide 14: Site infrastructure recommissioning underway
Koolan Island Site infrastructure recommissioning underway For personal use only Crushing plant recommissioning, February 2019 Jetty and Ship-loader Ore conveyor to ship-loader Primary and secondary crushing circuits 14
Slide 15: A high grade hematite iron ore exporter
Mount Gibson Iron A high grade hematite iron ore exporter For personal use only • Koolan is a compelling investment opportunity delivering high grade and low-impurity iron ores. • MGX is the only Australian producer of direct shipping high grade hematite (+65% Fe). • Koolan Island sales expected to
Slide 16: Mount Gibson Iron – Global Iron Ore & Steel Forecast Conference
Mount Gibson Iron Exporting Australia’s highest grade direct shipping iron ore For personal use only MGX Global Iron Ore & Steel Forecast Conference 20 March 2019
Slide 17: Supplementary Information: Mineral Resources and Ore Reserves
Supplementary Information Mineral Resources and Ore Reserves Information at 30 June 2018 Koolan Island Total Group Mineral Resources and Ore Reserves at 30 June 2018 For personal use only Tonnes Fe SiO2 Al2O3 P (above 50% Fe) millions % % % % Mineral Resources, above 50% Fe Tonnes Fe SiO2 Al2O3 P Me
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