Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Shareholder Meeting (November 2011)
28 slides from Mgx Resources's shareholder meeting presentation, Nov 16, 2011
Slide 1: AGM Presentation
AGM Presentation 16 November 2011 For personal use only 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: Agenda
Agenda For personal use only 1 Chairman’s address 2 Shareholder Resolutions 3 Managing Director Presentation 3
Slide 4: Chairman's address
Chairman’s address For personal use only Geoffrey Hill 4
Slide 5: Agenda
Agenda For personal use only 1 Chairman address 2 Shareholder Resolutions 3 Managing Director Presentation 5
Slide 6: Proxies
For personal use only Proxies • 797,277,171 valid available proxy votes received, representing 73.65% of total shares on issue • Details of proxies will be provided for each resolution
Slide 7: Financial Reports
Financial Reports For personal use only “To receive and consider the financial report, the Directors’ report and auditors’ report for the year ended 30 June 2011” 7
Slide 8: Re-election of Director – Alan Jones
Resolution 1 Re-election of Director – Alan Jones For personal use only “That Alan Jones, being a Director who retires by rotation in accordance with Rule 8.1(e) of the Company’s Constitution, and being eligible, is re-elected as a Director of the Company.” Proxy summary For: 511,916,420 Against: 28
Slide 9: Election of Director – Geoffrey Hill
Resolution 2 Election of Director – Geoffrey Hill For personal use only “That Geoffrey Hill, having been appointed as a Director since the last annual general meeting and who retires in accordance with Rule 8.1(c) of the Company’s Constitution, and being eligible, is elected as a Director of the Com
Slide 10: Adoption of Remuneration Report
Resolution 3 Adoption of Remuneration Report For personal use only “That the Remuneration Report for the Company for the year ended 30 June 2011 is adopted.” Proxy summary For: 799,719,062 Against: 4,905,989 Abstain: 917,627 Proxy’s discretion 687,899 10
Slide 11: Increase in maximum aggregate remuneration of Non-Executive Directors
Resolution 4 Increase in the maximum aggregate remuneration of Non-Executive Directors For personal use only “That the maximum aggregate remuneration payable by the Company to Non-Executive Directors as Directors’ fees be increased by $500,000 from $750,000 per annum to $1,250,000 per annum.” Proxy
Slide 12: Renewal of Proportional Takeover Plebiscite
Resolution 5 Renewal of Proportional Takeover Plebiscite For personal use only “That Rules 6.1 to 6.3 of the Constitution of the Company, as set out in Schedule 1 of the Notice of Meeting, are renewed for a period of three years commencing on the day this resolution is passed.” Proxy summary For: 80
Slide 13: Agenda
Agenda For personal use only 1 Chairman’s address 2 Shareholder resolutions 3 Managing Director Presentation 13
Slide 14: Contents
Contents For personal use only 1 Market and Global Environment 2 Strategy – Objective - Delivery 3 Results 4 Outlook 14
Slide 15: Market and global environment
Market and global environment For personal use only Near term volatility will persist whilst long term growth is driven by emerging regions ... • World markets have remained uncertain since 2008 as Eurozone, Japan and the USA struggle to recover from the GFC • Emerging regions which include China an
Slide 16: Capital markets
Capital markets For personal use only There has been recent volatility in global markets… Major equity market indices 2007 – 2011 160 S&P 500 FTSE 100 Shanghai Composite S&P/ASX 200 150 140 130 120 110 100 Index to 1/7/07 90 80 70 60 50 40 30 20 10 0 01-Jul-07 01-Jan-08 01-Jul-08 01-Jan-09 01-Jul-09
Slide 17: Steel prices
Steel prices Steel prices have declined in recent months… For personal use only Steel prices 2007 – 2011 200% China Domestic Rebar China Export Hot Rolled Coil 180% 160% 140% Index 120% 100% 80% 60% 40% 01-Jul-07 01-Jan-08 01-Jul-08 01-Jan-09 01-Jul-09 01-Jan-10 01-Jul-10 01-Jan-11 01-Jul-11 Source:
Slide 18: Iron ore Fines price CFR China
Iron ore Fines price CFR China For personal use only The spot price has fallen dramatically recently and stabilised… Iron ore Fines price – CFR China (62% Fe) 2008 – 2011 250 Spot CFR China (62% Fe) 200 150 US$ per tonne 100 50 0 Nov-08 Feb-09 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11
Slide 19: Impact on share prices
Impact on share prices For personal use only Mid cap iron ore producer/developer share prices have fallen since the beginning of 2011… Indices of Australian mining companies – majors vs. midcaps 2008 – 2011 120% Metals and Mining S&P/ASX 200 Mid-Cap Iron Ore Companies Mount Gibson Iron 100% 80% Inde
Slide 20: MGI Share Price vs. Iron Ore Price
MGI Share Price vs. Iron Ore Price For personal use only MGI share price has outperformed the spot iron ore price since the lows experienced in November 2008… MGI Share Price Performance Since Rights Issue in 2008 2008 – 2011 700% MGI Iron Ore Price (62% Fines, CFR China) 600% 500% 400% Index 300% 2
Slide 21: Contents
Contents For personal use only 1 Market and Global Environment 2 Strategy – Objective - Delivery 3 Results 4 Outlook 21
Slide 22: Strategy
Strategy For personal use only Objectives clearly established in 2006… • Build internal capability and control • Divest high risk dilutive assets • Organically grow production base from existing operation • Acquire accretive asset that is longer life, lower cost and larger • Deliver production growt
Slide 23: Strategy
Strategy For personal use only Mount Gibson has … • Built appropriate internal capability and control – Introduced planning discipline and internal controls – Introduced required infrastructure, fleet and people to grow production base – Adopted safety as a core value • Divested high risk dilutive a
Slide 24: Strategy
Strategy For personal use only Mount Gibson has … • Organically grown production base at existing operation – Funds invested in Tallering Peak taking production from 1.3 Mtpa to 3 Mtpa • Acquired accretive asset that is longer life, lower cost and larger – Koolan Island acquired as part of the Aztec
Slide 25: Contents
Contents For personal use only 1 Market and Global Environment 2 Strategy – Objective - Delivery 3 Results 4 Outlook 25
Slide 26: Results
Results For personal use only Disciplined execution of the plan over the last 5 years results in … • LTIFR reduced from 11 to 0.86 (Metalliferous surface 3.0) • DIFR reduced from 6.7 to 4.0 (Metalliferous surface 4.6) • Prudent divestment of magnetite asset reinvesting funds in organic growth • An i
Slide 27: Contents
Contents For personal use only 1 Market and Global Environment 2 Strategy – Objective - Delivery 3 Results 4 Outlook 27
Slide 28: Outlook
Outlook For personal use only Your company is exceptionally well placed to withstand expected volatility and seize opportunities… • Outstanding financial strength • Anticipated near term production growth from Extension Hill and Koolan Island • Transparent iron ore market clearing pricing mechanism
Mount Gibson Iron — Shareholder Meeting (November 2011) on 6ix