Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Investor Presentation (February 2012)
22 slides from Mgx Resources's investor presentation, Feb 14, 2012
Slide 1: Future Growth and Performance – Shareholder Presentations Sydney and Melbourne
MOUNT GIBSON IRON LIMITED – Future Growth and Performance For personal use only Shareholder Presentations Sydney and Melbourne 14-15 February 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: Company overview
Company overview For personal use only Corporate • Issued capital 1082.6 million shares, 2 million options • Market cap1 A$1,462 million • Cash2 A$421 million • Total debt2 nil • EV A$1,041 million • Index S&P/ASX 200 • Finance facilities A$115m (includes A$65m contingent debt) Financials (year ende
Slide 4: Company overview – What is different?
Company overview – What is different? For personal use only Australian based multi-operation quality hematite iron ore producer exporting to China • Leadership renewal …... Board and Management • Quality assets …………………. Optimising existing opportunities • Financial position …….….. Strong balance she
Slide 5: Leadership renewal
Leadership renewal For personal use only Board – Renewal well underway with mining, construction and M&A experience • Geoffrey Hill - Chairman • Russell Barwick • Paul Dougas • Alan Jones • Cao Zhong • Chen Zhouping • Lee Seng Hui • At least one new independent director to come – search well advance
Slide 6: Quality assets – optimising existing opportunities
Quality assets – optimising existing opportunities For personal use only Koolan Island – up to 4 Mtpa production • Current reserves 32.1 Mt at 64% Fe, low contaminant • Commenced mining premium Main Pit ore in November 2011 • Targeting 3.5 Mt in FY 2013, 4 Mt in FY 2014 • Potential exists west of Mu
Slide 7: Quality assets – Geraldton Port
Quality assets – Geraldton Port For personal use only • Staged commissioning March / April 2012 • Rail unloader upgrade at port funded by Mount Gibson • Significantly reduces shipping constraints • 50 year lease - valuable long term asset A true strategic asset, essential for getting product to mark
Slide 8: Robust financial position
Robust financial position For personal use only Profit and Loss (A$m) 450 Revenue NPBT 382.1 NPAT 376.9 400 • Very solid and 350 294.0 290.0 consistent profit 300 242.3 250 performance 200 198.0 176.0 132.5 140.0 144.9 150 121.2 93.0 99.5 100 55.8 39.4 50 0 31-Dec-09 30-Jun-10 31-Dec-10 30-Jun-11 31
Slide 9: Robust financial position
Robust financial position For personal use only Operating cash flow ($m) 180 159.6 160 140 123.2 120 112.3 100 • Strong cash position 80 56.8 62.8 60 40 20 • No large project capex 0 31-Dec-09 30-Jun-10 31-Dec-10 30-Jun-11 31-Dec-11 requirements 450 Cash and deposits ($m) 421.4 409.9 • Normal sustai
Slide 10: Strategy – Positioning for Growth
Strategy – Positioning for Growth For personal use only Growth opportunities – M&A and Exploration driven • Actively pursuing opportunities in carbon steel materials and diversified mineral commodities in Australia and overseas • Revisiting and reinvigorating the exploration strategy in footprint an
Slide 11: Summary
Summary For personal use only Disciplined business strategy Mount Gibson has… First mover status & access to Strong cash flow generation existing infrastructure Proven operational Growing production profile performance Robust iron ore price outlook Divested high risk, high cost Clean & s
Slide 12: Appendices
For personal use only 12 Appendices
Slide 13: Half year results overview
Half year results overview For personal use only • Sales revenue $376.9 million (down 1.4% on 2010) due to 12.3% lower tonnes sold, offset by 12.5% higher realised price • Net profit after tax $121.2 million (down 13.4% on 2010) • Diluted EPS of 11.4 cents • Operating cash flows $123.2 million (down
Slide 14: Summary half year results
Summary half year results For personal use only 6 months 6 months % ended ended change 31-Dec-10 31-Dec-11 pcp Tonnes mined wmt (mill) 3.13 3.55 13.4% Tonnes sold wmt (mill) 3.24 2.84 -12.3% Sales revenue $ mill 382.1 376.9 -1.4% Interest income $ mill 10.5 11.2 6.7% Cost of goods sold $ mill -189.9
Slide 15: Key financial indicators
Key financial indicators For personal use only 6 months 6 months % ended ended change 31-Dec-10 31-Dec-11 pcp Realised selling price A$ / wmt 117.93 132.71 12.5% Cost of goods sold A$ / wmt -58.61 -68.63 -17.1% Margin A$ / wmt 59.32 64.08 8.0% EPS cps 12.95 11.34 -12.4% Operating cash flow per share
Slide 16: Profit & Loss 1st half FY2011 and 1st half FY2012
Profit & Loss 1st half FY 2011 and 1st half FY2012 (millions) For personal use only 150.0 140.0 -47.2 140.0 42.0 -28.4 23.4 0.7 -2.6 130.0 -14.1 3.2 121.2 120.0 4.2 110.0 A$ mill 100.0 90.0 80.0 70.0 60.0 1st half Sales Sales price COGS cost COGS Interest Admin FX Finance Tax 1st half FY2011 volume
Slide 17: Citi peer group comparisons Feb 2012
Citi peer group comparisons Feb 2012 For personal use only
Slide 18: Quality assets – Koolan Island
Quality assets – Koolan Island For personal use only 18
Slide 19: Quality assets – Mid-West
Quality assets – Mid-West For personal use only 19
Slide 20: Operations Key Statistics
Operations Key Statistics For personal use only Key Statistics Tallering Peak Koolan Island Extension Hill Combined Reserves and Resources1 Reserves (Mt) 5.35 32.1 14.5 56.5 Proven & Probable Mineral Resources (Mt) 8.96 71.9 22.5 103.3 Measured, Indicated & Inferred Reserve Specifications Fe % 61.2
Slide 21: Operations Key Statistics
Operations Key Statistics For personal use only Key Statistics Tallering Peak Koolan Island Extension Hill Operations Data Annual production (Mtpa) ~3 ~4 ~3 Expected minimum mine life 2 8 5 End of mine life End of 2013 Mid 2019 Mid 2016 Lump : Fines ratio 65% : 35% 30% : 70% 50% : 50% Truck (km) 65
Slide 22: Attributions
Attributions For personal use only The information in this report relating to Mineral Resources is based on information compiled by Rolf Forster, who is a member of the Australasian Institute of Mining and Metallurgy. Rolf Forster is a consultant to Mount Gibson Mining Limited, and has sufficient ex
Mount Gibson Iron — Investor Presentation (February 2012) on 6ix