Slide 1: Financial Results for FY2018-19
Financial Results for FY2018-19 For personal use only MGX Investor Presentation 21 August 2019
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
Mount Gibson Iron Corporate Overview For personal use only MGX v Platts 62% Fe CFR Index 1.40 140 Issued capital 1,130.1 million shares (last 12 months) 1.20 120 Market capitalisation A$825 million ($0.73/share) 1.00 100 0.80 80 Cash/investments A$385 million (30 June 2019) 0.60 60 0.40 40 Bank Borr
Slide 4: Business Overview – A long-standing mid-tier iron ore producer
Mount Gibson Iron Business Overview – A long-standing mid-tier iron ore producer For personal use only Kimberley Region Koolan Island • Australia’s highest grade direct shipping (DSO) hematite iron ore mine. • Ore Reserves of 21.0Mt @ 65.5% Fe, for 6 year mine life.* • Ore sales commenced late April
Slide 5: Financial Year 2018-19 Overview
Financial Year 2018-19 Overview (All figures are expressed in Australian dollars unless stated otherwise) For personal use only • Total iron ore sales of 3.2 million wet metric tonnes (Mwmt), comprising 2.93 Mwmt of direct shipping ore (DSO) and 0.24 Mwmt of stockpiled low grade material (2017/18: 3
Slide 6: A strong performance during operational transition
Financial Year 2018-19 A strong performance during operational transition For personal use only Year Year Group Summary Results ended ended 30 June 30 June (all currency expressed in Australian dollars) 2019 2018 Physicals: Ore mined M wmt 2.4 4.1 Ore sold M wmt 3.2 3.6 Realised Price: Average reali
Slide 7: Cash, Term Deposits & Tradeable Investments
Financial Year 2018-19 Cash, Term Deposits & Tradeable Investments For personal use only *Figures are shown net of working capital movements. 7
Slide 8: Iron Ore Market Outlook
Iron Ore Market Outlook Iron ore pricing remains well supported For personal use only Iron Ore Price (US$/dmt Fines CFR North China) Koolan Island is Australia’s highest grade DSO hematite iron ore mine with an Ore Reserve Grade 160 of 65.5% Fe*: 140 • Prices across product types have risen sharply
Slide 9: Koolan Island: A premier high grade iron ore producer
Koolan Island A premier high grade iron ore producer 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. To China N One of the world’s premier high grade hemat
Slide 10: Koolan Island: Mining and ore production ramping up
Koolan Island Mining and ore production ramping up For personal use only Main Pit, looking west August 2019. WA Mainland Shipping Channel Seawall Footwall 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
Slide 11: 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 Fe % 61 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 12: 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 13: Koolan Island Operational Profile – Feasibility Study Mine Plan (2018)
Koolan Island Operational Profile – Feasibility Study Mine Plan (2018) For personal use only Operating Year (from sales commencement) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total 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.
Slide 14: Koolan Island: Mining and ore production ramping up
Koolan Island Mining and ore production ramping up For personal use only Main Pit, looking east August 2019. 14
Slide 15: Koolan Island: Mining and ore production ramping up
Koolan Island Mining and ore production ramping up For personal use only Koolan crushing and screening plant, and stockpile yard, August 2019 15
Slide 16: Mid-West Operations: Low grade sales extend life again
Mid-West Operations Low grade sales extend life again For personal use only • Total DSO sales from Iron Hill of 2.6 Mwmt at average site cash cost* of $39/wmt in the 2018-19 financial year. • Full year operating EBIT of $60.8 million. • Higher iron ore prices enabled a program of low grade sales fro
Slide 17: Mid West Operations: A successful year presence
Mid West Operations A successful 15 year presence For personal use only • Total Mid-West ore sales of +47Mt to date: Mid-West Ore Sales History 8 – Tallering Peak Feb 2004 to Sept 2014. Ore Sales (Mwmt) – Extension Hill Nov 2011 to Feb 2019. 6 – Low-grade sales from June 2019. • Total Mid-West sales
Slide 18: FY2019-20 Business Objectives
Mount Gibson Iron FY2019-20 Business Objectives For personal use only • Mid-West operations – complete the current low-grade sales program and extend the program should favourable market prices continue. Thereafter, transition the site to final closure. • Koolan Island – complete the ramp-up of ore
Slide 19: Summary
Mount Gibson Iron Summary For personal use only • MGX is the only Australian producer of direct shipping high grade (+65% Fe) and low impurity hematite iron ores. • Koolan Island sales ramping up and Mid West low grade sales underway, capitalising on buoyant iron ore market conditions. • Proven abil
Slide 20: Financial Results for FY2018-19
Financial Results for FY2018-19 For personal use only MGX Investor Presentation 21 August 2019
Slide 21: Supplementary Information: Mineral Resources and Ore Reserves at 30 June 2018
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