Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Diggers & Dealers Forum 2013
20 slides from Mgx Resources's conference presentation, Aug 6, 2013
Slide 1: Cash, Credibility, Capability
For personal use only Cash, Credibility, Capability MOUNT GIBSON IRON LIMITED Diggers & Dealers Forum 6 August 2013
Slide 2: Disclaimer
Disclaimer This Document is Confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to For personal use only 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: Mount Gibson is the biggest DSO producer in the Kimberley and Mid West
Mount Gibson is the biggest DSO producer in the Kimberley and Mid West For personal use only Member S&P/ASX-200 Market cap $665m *@ $0.61/share , 5/8/2013. 1,090.6m shares on issue. Dividends paid $108m since Sept 2011 Record FY13 sales 8.8Mt Growing FY14 sales guidance 9.0 to 9.5Mt Financially stro
Slide 4: Multiple sites provide operational flexibility
Multiple sites provide operational flexibility For personal use only Koolan Island Mine • Premium DSO lump and fines • Ramping up to 4 Mtpa by end 2014 • Long life asset with dedicated shiploader Mid West Region Tallering Peak, Extension Hill & Geraldton Port facilities Tallering Peak Mine Extension
Slide 5: Demonstrated operational improvement capability over the last 18 months
Demonstrated operational improvement capability over the last 18 months For personal use only Quarterly Ore Sales - All Sites Quarterly Mid West Rail Haulage Quarterly Shipments Geraldton Port (Mt) (Mt) (Mt) 3 1.6 1.8 1.4 1.6 2.5 1.2 1.4 2 1.2 1 1 1.5 0.8 0.8 0.6 1 0.6 0.4 0.4 0.5 0.2 0.2 0 0 0 Mar-
Slide 6: Strong sales profile and credible growth strategy
Strong sales profile and credible growth strategy For personal use only Ore sales history and indicative outlook 10 Actual Forecast Priority Two growth 8 Priority One growth 6 Ore Sales (Mwmt) 4 2 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Year to 30 June
Slide 7: Koolan Island – optimising a quality long life asset
Koolan Island – optimising a quality long life asset For personal use only Long life asset − 7 years at 4Mtpa Simple logistics − No road/rail, dedicated ship-loader High value products − DSO lump and fines, plus Rizhao Special Product Optimised ramp up to 4 Mtpa − Reducing unit mining costs and incr
Slide 8: Koolan Island – optimising a quality long life asset
Koolan Island – optimising a quality long life asset For personal use only 8
Slide 9: Koolan Island – Life of Mine Plan
Koolan Island – Life of Mine Plan For personal use only 9
Slide 10: Koolan regional exploration
Koolan regional exploration For personal use only • Large prospective mainland lease at Koolan South • Historic and newly generated iron and base metal targets • Two initial reconnaissance programs completed since June • Data assisting geological interpretation and understanding • Targets being refi
Slide 11: Tallering Peak – a prime example of extracting extra value
Tallering Peak – a prime example of extracting extra value For personal use only • An extra year of high value production • Total ore sales of 2.5Mt targeted for FY2014 • T6 pit life extended to January 2014 • T1 development underway, first ore expected September 2013 • Mining operations to conclude
Slide 12: Extension Hill – the jewel of the Mid West
Extension Hill – the jewel of the Mid West For personal use only • Simple, low cost operation • Initial five year mine life at 3Mtpa • First sales achieved December 2011 • Total sales of 2.8 Mt in FY2013 • Established rail and port access 4 • Rail-constrained to 3Mtpa • June Qtr mine-gate sales deli
Slide 13: Extension Hill South – first priority growth target
Extension Hill South – first priority growth target For personal use only • 3 high potential DSO targets with known mineralisation • Situated on granted mining leases • Extensive past drilling data • Similarities to Extension Hill mineralisation 4 • Exploration access subject to regulatory approvals
Slide 14: Field’s Find – greenfields potential close to Extension Hill
Field’s Find – greenfields potential close to Extension Hill For personal use only Plateau prospect past drilling results Field’s Find • Low cost entry to 250 sqkm land package ~65km from Extension Hill • Confirmed hematite targets from past drilling • Permitting well advanced • Drilling approvals e
Slide 15: Geraldton Port – established port access is priceless
Geraldton Port – established port access is priceless For personal use only • Infrastructure access - key barrier to entry for new producers • Provides MGX leverage to regional opportunities • MGX Mid West export capacity doubled to ~6Mtpa • Total MGX port storage capacity trebled to 360,000t • +40
Slide 16: A disciplined approach to longer term growth
A disciplined approach to longer term growth For personal use only What are we looking for? What is our competitive strength? • Targeting bulk carbon steel materials • Experienced in project delivery • Low capital intensity • Demonstrated operational improvement • “Australia-first” preference capabi
Slide 17: Summary
Summary For personal use only Mount Gibson Iron has: • Established and profitable iron ore operations • Strong cash reserves • Record of strong financial performance • Credible management • Demonstrated capability to deliver business improvement and manage market volatility • Cost focused • High pot
Slide 18: Thank you
Thank you For personal use only For more information: Phone: +618 9426 7500 Email: admin@mtgibsoniron.com.au Web: www.mtgibsoniron.com.au 18
Slide 19: Appendix – Resources and Reserves
Appendix – Resources and Reserves (at 30 June 2012, except for T1 as stated) Total Group Mineral Resources and Reserves For personal use only Koolan Island Mineral Resources, above 50% Fe at 30 June 2012 Tonnes Fe SiO2 Al2O3 P Tonnes Fe SiO2 Al2O3 P millions % % % % millions % % % % Measured 10.8 59
Slide 20: Appendix - Attributions
Appendix - Attributions For personal use only Attributions The information in this report that relates to Exploration Results is based on information compiled by Gregory Hudson, who is a member of the Australian Institute of Geoscientists. Gregory Hudson is an employee of Mount Gibson Iron Limited g