Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Diggers & Dealers Mining Forum 2014
25 slides from Mgx Resources's conference presentation, Aug 4, 2014
Slide 1: Diggers & Dealers Mining Forum
Diggers & Dealers Mining Forum For personal use only Built on quality MGX Kalgoorlie 4 August 2014
Slide 2: Disclaimer
Disclaimer This Document is Confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person, or published, For personal use only in whole or in part, for any purpose without prior written approval from Mount Gibson Iron Limited. This Document is not a
Slide 3: MGX at a glance
MGX at a glance For personal use only Member S&P/ASX-200 Record FY14 ore sales revenue Market cap ~$780 million $890m* *@ $0.715/share , 30/7/2014. 1,090.6m shares on issue Dividends paid since Sept 2011 Ten year history of production $130m fully franked 50Mt ore sold April 2014 Record FY14 ore sale
Slide 4: Business overview
Business overview For personal use only Koolan Island • Premium DSO lump and fines • Ramping up to 4 Mtpa run rate by end 2014 • Long life asset with extension potential • Simple logistics, remaining LOM strip ratio ~4.5:1 Mid West Region Tallering Peak, Extension Hill, Shine & Geraldton Port facili
Slide 5: FY2014 – a record operational performance
FY2014 – a record operational performance For personal use only • Record group ore sales 9.7 Mt (+10%) − Koolan Island sales 3.7 Mt (+7%) − Tallering Peak sales 3.0 Mt (+16%) − Extension Hill sales 3.0 Mt (+9%) • Record sales revenue* $890m (+4%) • Year-end cash reserves $520m (+$144m) Unit FY 2013/
Slide 6: Maximising value – a simple strategy
Maximising value – a simple strategy For personal use only • Cost reduction and elimination of waste Leverage off • Operational optimisation and business improvement • Extension of production profile: existing asset – Optimise resources and reserves inventory – Brownfields exploration base to extrac
Slide 7: Optimising the sales profile
Optimising the sales profile For personal use only Ore sales history and indicative outlook* 12 Actual Forecast 10 First 8 priority goal Ore Sales 6 (Mwmt) 4 2 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Year to 30 June Shine# Extension Hill Koolan Isl
Slide 8: MGX – ore grade and quality set us apart
MGX – ore grade and quality set us apart For personal use only High quality ores: • Average Group Ore Reserves grade 62.1% Fe* − Koolan Island 64.1% Fe − Extension Hill 58.3% Fe − Shine 59.3% Fe − Low moisture content (MGX average ~3%) • Low in contaminants − Low Alumina - average 1.16% (Group Ore R
Slide 9: MGX – moving further up the quality curve
MGX – moving further up the quality curve Following the conclusion of low grade sales, Mount Gibson’s superior quality For personal use only product mix protects it against increasing discounts for low grade products WA Iron Ore Projects - Iron Grade and Phosphorous Content 65 64 MGX Koolan Island (
Slide 10: Koolan Island – a unique high quality asset
Koolan Island – a unique high quality asset For personal use only 1km N West End targets Main Pit 10
Slide 11: Koolan Island – a unique high quality asset
Koolan Island – a unique high quality asset For personal use only • Long life asset: ~7 years* • High quality DSO product • Simple logistics - dedicated shiploader and no road or rail • 3.7 Mt sold in FY14, including RSP • On track to achieve ramp up to ~4 Mtpa run rate by end CY2014 • Ramp-up reduc
Slide 12: Koolan Island – recapitalising for strong future cashflow
Koolan Island – recapitalising for strong future cashflow For personal use only Indicative Koolan Island waste stripping and iron ore sales profile 12 Actual Forecast 10 8 6 4 2 0 Year to 30 June 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Iron Ore Sales (Mwmt) Indicat
Slide 13: Koolan Island – Main Pit development plan
Koolan Island – Main Pit development plan For personal use only 13
Slide 14: Koolan Island – West End exploration
Koolan Island – West End exploration For personal use only • Program of Works (PoW) approved for 33 hole RC programme • Contractor selection underway • Work planned to commence in current quarter • Drilling will test for West End extensions of hematite exploration sandstone mineralisation targets fr
Slide 15: Mid West – established infrastructure and potential to grow resources
Mid West – established infrastructure and potential to grow resources For personal use only • Established infrastructure footprint gives MGX a competitive edge • Extension Hill region shaping as a potential resources hub • Shine Hematite Project – Low-capex DSO opportunity • Positive results from in
Slide 16: Geraldton Port – a competitive advantage
Geraldton Port – a competitive advantage For personal use only Ship Loader Rail Unloader MGX Berth 5 MGX Shed Berth 4 Shed 16
Slide 17: Extension Hill – a low cost growth platform
Extension Hill – a low cost growth platform For personal use only • Established road, rail and port solutions • ~0.6:1 remaining LOM strip ratio • +3 years life at 3Mtpa* • High potential near-mine exploration targets with known mineralisation • Potential regional operations hub 4 *Refer Slide 24 fo
Slide 18: Extension Hill South – high potential target
Extension Hill South – high potential target • For personal use only Multiple known hematite targets located 1-3km from crusher • Iron Hill Prospect Exploration Target of 5-7 Mt @ 58-61% Fe.* N • Significant intercepts in 15 of 16 holes targeting primary Iron Hill hematite, including: • 22m @ 63.8%
Slide 19: Shine – a near-term DSO opportunity
Shine – a near-term DSO opportunity For personal use only • Purchase completed 7 March 2014* • Hematite Mineral Resource of 7.8 Mt @ 59.0% Fe* • Ore Reserves of 5.6Mt @ 59.3% Fe • Advanced approvals/permitting • Indicative ore production target of 1.6 Mtpa • Indicative $9-11m development cost (<$7/t
Slide 20: Plateau Prospect, Fields Find
Plateau Prospect, Fields Find For personal use only • Plateau located ~75km from Extension Hill • Unconventional setting - iron-enriched laterite over ultra-mafic basement • 228 hole RC programme completed November 2013* • 114 significant intersections +50% Fe*, including: • 18m @ 59.2% Fe, 16m @ 58
Slide 21: Tallering Peak – a final year of adding value
Tallering Peak – a final year of adding value • For personal use only Tenth anniversary of sales February 2014 • Life of mine ore sales +25 Mt • FY14 ore sales of 3 Mt vs 2.5 Mt forecast • LG stockpile sales generated strong cash margins while market window was open • Final year contribution from T6
Slide 22: Summary
Summary For personal use only • An established mid-cap iron ore producer • Strong operating cashflows and balance sheet • Increasing ore grade and quality profile • Established transport infrastructure and long term customer contracts • Exploration upside and disciplined value-focused growth strateg
Slide 23: Thank You
Thank You For personal use only MGX For more information: Phone: +618 9426 7500 Email: admin@mtgibsoniron.com.au Web: www.mtgibsoniron.com.au 23
Slide 24: Appendix – Reserves and Resources supplementary information
Appendix – Reserves Supplementary and Resources information For personal use only Mineral Resources and Ore Reserves at 30 June 2013 Total Group Mineral Resources and Ore Reserves at 30 June 2013 Koolan Island Total Group Mineral Resources and Ore Reserves at 30 June 2013 Tonnes Fe SiO2 Al2O3 P mill
Slide 25: Appendix – Shine Mineral Resources and Ore Reserves
Appendix – Reserves Supplementary and Resources information Shine Hematite Mineral Resources For personal use only Resource Category Tonnes Fe SiO2 Al2O3 P LOI (Mt) % % % % % Measured 2.65 59.7 7.58 2.18 0.085 4.18 Indicated 4.17 58.7 9.14 1.72 0.078 4.06 Inferred 0.95 58.0 9.80 1.51 0.079 4.68 Tota
Mount Gibson Iron — Diggers & Dealers Mining Forum 2014 on 6ix