Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — AJM Global Iron Ore and Steel Conference 2013
16 slides from Mgx Resources's conference presentation, Mar 20, 2013
Slide 1: Looking to the future
MOUNT GIBSON IRON LIMITED Looking to the future For personal use only AJM Global Iron Ore and Steel Conference 20 March 2013 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: Company snapshot
Company snapshot A leading mid-tier iron ore exporter targeting sales of 8 – 8.5Mt in FY2013 For personal use only • Issued capital 1090.6 million shares • Index S&P/ASX 200 • Market cap1 A$632 million • Cash @ 31 Dec 2012 A$279 million • Bank borrowings2 nil • Finance facilities A$65m environmental
Slide 4: A leading WA mid-tier iron ore exporter
A leading WA mid-tier iron ore exporter For personal use only Koolan Island • High quality DSO lump and fines (high grade, low contaminants) • Production optimisation strategy completed: • Staged ramp-up from 3 Mtpa to 4 Mtpa run rate by end 2014 • De-risks development of Main Pit • Smoothed strippi
Slide 5: Moving into extended high sales phase, with potential for further organic production growth
Moving into extended high sales phase, with potential for further organic production growth For personal use only DSO sales history and indicative outlook 10 Actual Forecast 8 6 DSO 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 Jun
Slide 6: Pursuing organic value creation
Pursuing organic value creation Getting the most out of every asset is a core principle of MGX value creation strategy For personal use only Total Group Mineral Resources and Reserves at 30 June 2012 Million Fe SiO2 Al2O3 P tonnes % % % % Mineral Resources 95.2 61.6 8.29 1.19 0.03 Mineral Reserves 4
Slide 7: Koolan Island – A quality long-life asset
Koolan Island – A quality long-life asset For personal use only • Premium products – ~63.5%Fe, low phos and alumina • Simple logistics – no rail, standalone ship-loader • Long life asset - Proved and probable reserves of 29.3Mt @ 64.1%Fe at 30 June 2012* (less YTD depletion) • Mineralised waste sale
Slide 8: Tallering Peak – cash harvesting in final years
Tallering Peak – cash harvesting in final years For personal use only • Mining scheduled for completion in November 2013 • On track to yield ~2.5 Mt standard product in FY2013 • Commenced sales of low-grade product • Sales from low-grade stockpiles (~1 Mt) to continue into FY2014 – minimal cash outl
Slide 9: Extension Hill – the jewel of the Mid West
Extension Hill – the jewel of the Mid West For personal use only Current Operation • Simple, low cost operation, life of mine strip ratio ~1:1 • Nameplate capacity of 3 Mtpa • Reserves of 12.2Mt @ 59.5%Fe at 30 June 2012* (less YTD depletion) • Diverse customer base, contract and spot sales • First
Slide 10: Creating a long term Mid West "hub"
Creating a long term Mid West “hub” For personal use only • +200 leaseholders within Mount Gibson operational sphere of influence • Resources stranded without access to port/rail • Geraldton port/rail access gives MGX strategic leverage • Extension Hill and Tallering Peak sites potential processing/
Slide 11: Geraldton Port – the key to local opportunities
Geraldton Port – the key to local opportunities For personal use only • Infrastructure access a strategic asset - key barrier to entry for new producers • MGX Mid West export capacity doubled to ~6Mtpa • Total MGX port storage capacity MGX trebled to 360,000t MGX Berth 4 Berth 5 Shed • 50 year lease
Slide 12: Moving beyond "bolt-on" opportunities
Moving beyond “bolt-on” opportunities For personal use only Disciplined approach: Hitched to Chinese growth: steel • Targeting bulk carbon steel materials – DSO iron ore consumption has a long way to run – coking coal • Low capital intensity – minimal processing – conventional products • Access to e
Slide 13: Building a path to long term value creation
Building a path to long term value creation Optimising existing business, now targeting exploration-driven growth and M&A For personal use only Key Initiatives • Target further cost control and elimination of inefficiencies • Implement optimised ramp-up at Koolan Island • Finalise and commence T1 de
Slide 14: 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 14
Slide 15: Appendix – Reserves and Resources
Appendix – Reserves and Resources Total Group Mineral Resources and Reserves For personal use only Koolan Island at 30 June 2012 Mineral Resources, above 50% Fe Tonnes Fe SiO2 Al2O3 P Tonnes Fe SiO2 Al2O3 P millions % % % % millions % % % % Mineral Resources 95.2 61.6 8.29 1.19 0.03 Measured 10.8 59
Slide 16: Mid West Operations
Mid West Operations For personal use only Field’s Find 16
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