Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Shareholder Meeting (November 2012)
15 slides from Mgx Resources's shareholder meeting presentation, Nov 14, 2012
Slide 1: CEO Presentation Annual General Meeting
CEO Presentation Annual General Meeting For personal use only 14 November 2012 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: Business Highlights FY2012
Business Highlights FY2012 For personal use only 800.0 Revenue NPBT NPAT • Improved Safety with LTIFR dropping 700.0 (A$m) 672.1 648.5 11% to 2.62 (Metalliferous industry 600.0 536.3 500.0 open/cut average 3.1) 425.5 400.0 342.9 300.0 239.5 239.6 • Strong net profit of $172.5 million – 2nd 200.0 188
Slide 4: What has been achieved in the last year?
What has been achieved in the last year? Substantial progress has been attained across the business in challenging circumstances For personal use only Appointed 3 new independent directors Doubled MGI export capacity at Geraldton Implemented new independent corporate Port governance mechanisms
Slide 5: Market Outlook: Volatility in iron and steel markets
Market Outlook For personal use only Volatility has become an increasingly prevalent factor in the iron and steel markets A range of macro-economic factors have contributed to increased volatility for iron ore prices and Chinese steel consumption. But the fundamentals for increasing demand are still
Slide 6: Market Outlook: Chinese steel consumption has a long way to run
Market Outlook But the outlook is still strong – Chinese steel consumption has a long way to run For personal use only Urbanisation remains a key driver of Chinese steel consumption, with regeneration of existing urban centres also becoming important to underlying demand. Source: NBS, World Bank, Ma
Slide 7: Moving in the right direction
Moving in the right direction Operational performance improved significantly in the September quarter For personal use only • Sales outlook of 8 - 8.5 Mt in FY2013 • Increase in total shipments to 1.76 Mt – up 52% on prior quarter • Koolan Island shipments increased 53% to 786Kt • Mid West shipments
Slide 8: Koolan Island – optimising existing operation
Koolan Island – optimising existing operation For personal use only • Premium products • Simple logistics – no rail, standalone ship-loader • Current production rate ~3Mtpa, +9 year life • Low grade sales commenced • Study to define optimum production profile to be complete early 2013 • Operational
Slide 9: Geraldton Port – increased export capacity
Geraldton Port – increased export capacity For personal use only • Infrastructure access a strategic asset - key barrier to entry for new producers • Upgrades have doubled MGI Mid West export capacity to ~6Mtpa • 240,000t MGI Berth 5 shed MGI commissioned April 2012 MGI Berth 4 Berth 5 Shed • Total
Slide 10: Extension Hill – Exploration upside
Extension Hill – Exploration upside For personal use only • Simple, low cost operation, life of mine strip ratio ~1:1 • Nameplate capacity of 3Mtpa Growth Potential: • Significant additional DSO potential in Mount Gibson Range • DSO opportunities at Iron Hill 4 and Gibson Hill • Exploration access s
Slide 11: Tallering Peak – finetuning for its final year
Tallering Peak – finetuning for its final year For personal use only • Mining scheduled for completion in mid 2013 • Low grade stockpiles of ~1.1 Mt • Sales from low-grade stockpiles to continue into FY2014 • T1 drilling in phase 2 • Evaluation of T1 expected to be complete early 2013 11
Slide 12: Strategy – pursuing growth
Strategy – pursuing growth Optimising existing business, now pursuing M&A and exploration-driven growth For personal use only PRIORITIES • Bed down recent initiatives to cut costs and maximise cash flow • Target further cost control and elimination of waste/inefficiencies • Evaluate early adoption o
Slide 13: Summary
Summary For personal use only Disciplined business strategy Mount Gibson has… Access to existing export Strong and profitable operating business infrastructure Strengthening operational Established DSO products performance Growing FY2013 production profile Focused growth plan Strong balanc
Slide 14: Thank You
Thank You For personal use only For more information visit: www.mtgibsoniron.com.au 14
Slide 15: Additional information
Additional information For personal use only Total Group Mineral Resources and Reserves Koolan Island at 30 June 2012 Mineral Resources, above 50% Fe Tonnes Fe SiO2 Al2O3 P Tonnes Fe SiO2 Al2O3 P millions % % % % millions % % % % Measured 10.8 59.6 13.0 1.04 0.02 Mineral Resources 95.2 61.6 8.29 1.1
Mount Gibson Iron — Shareholder Meeting (November 2012) on 6ix