Slide 1: FY2018 Financial Results
FY2018 Financial Results For personal use only MGX Investor Presentation 15 August 2018
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: Mount Gibson Iron Corporate Overview
Mount Gibson Iron Corporate Overview For personal use only • Issued capital 1099.6 million shares • Market cap1 A$500 million • Cash and investments2 A$457 million • Total debt2 Nil • Index ASX All Ordinaries Shareholder Distribution (% ISC) Board and Management • Lee Seng Hui – Non-executive Chairm
Slide 4: Business Overview
Mount Gibson Iron Business Overview For personal use only Koolan Island • Australia’s highest grade DSO hematite mine provides direct exposure to increasing high grade premium. • Ore Reserves upgraded to 21.0Mt @ 65.5% Fe.* • Seawall seepage barrier completed July 2018, dewatering progressing to pla
Slide 5: FY2018 Overview
FY2018 Overview (All figures are expressed in Australian dollars unless stated otherwise) For personal use only Total product sales 3.6 Mwmt* for sales revenue of $196.5 million FOB. Underlying operating cashflow from continuing operations of $34.9 million. Gross profit from continuing operati
Slide 6: A solid performance during operational transition
FY2018 A solid performance during operational transition For personal use only Year Year ended ended Group Summary Results 30 June 30 June 2018 2017 Physicals (continuing & discontinued operations): Ore mined M wmt 4.1 1.9 Ore sold M wmt 3.6 3.2 Realised Price (continuing & discontinued operations):
Slide 7: Cash, Term Deposits & Tradeable Investments
FY2018 Cash, Term Deposits & Tradeable Investments For personal use only *Figures are shown net of working capital movements. 7
Slide 8: FY2019 Business Objectives
Mount Gibson Iron FY2019 Business Objectives For personal use only • Mid-West operations – complete mining and sales from the Iron Hill operation and transition the Mid West operations to closure in early 2019. • Koolan Island – conclude pit dewatering and commence production as scheduled in order t
Slide 9: Mid West: Extension Hill and Iron Hill
Mid West Extension Hill and Iron Hill For personal use only • Total ore sales from Extension Hill/Iron Hill of 3.6 Mwmt in FY2018. • Iron Hill sales of 3.2 Mwmt at site cash cost of $42/wmt FOB^ in FY2018. • Opportunistic sales of 0.4Mwmt of low grade lump from Extension Hill stockpiles in FY2018. •
Slide 10: A premier high grade iron ore opportunity
Koolan Island Mine Restart A premier high grade iron ore opportunity For personal use only Koolan Island located in Yampi Sound in the Buccaneer Archipelago 1km off the northern Kimberley coast of Western Australia approximately 140 kilometres north of Derby. N Main Pit One of the world’s premier
Slide 11: An unrivalled high grade hematite deposit
Koolan Island Mine Restart An unrivalled high grade hematite deposit For personal use only • High grade hematite (65.5% Fe). • Very low contaminants (P, Al). • Well understood orebody, consistent grade and width. • Well understood mining characteristics. • Ore Reserves upgraded April 2018, extending
Slide 12: High grade premium is a game changer and here to stay
Koolan Island Mine Restart High grade premium is a game changer and here to stay For personal use only Iron Ore Price HG Premium / LG Discount (US$/dmt CFR North China) (% per dmtu relative to 62% index) 120 50% 100 40% 80 30% 20% 60 10% 40 0% -10% 20 -20% 0 -30% -40% -50% 65% 62% 58% HG Premium LG
Slide 13: Operational Profile
Koolan Island Mine Restart Operational Profile Operating Year 21 Mt For personal use only (from Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 production commencement) Total Ore Mined (Mt) 2.9 1.9 5.1 7.4 4.0 - 21.3# Waste Mined (Mt) 19.1 20.5 16.3 8.8 2.7 - 67.5 Total Movement (Mt) 22.0 22.4 21.4 16.3 6
Slide 14: Project Schedule
Koolan Island Mine Restart Project Schedule For personal use only • Project over 80% complete overall. • On track for first ore sales in March 2019 Quarter. • Seawall embankment construction commenced June 2017, completed September 2017. • Concrete seepage barrier completed July 2018. • Dewatering a
Slide 15: Seawall embankment construction
Koolan Island Mine Restart Embankment commenced May 2017, completed September 2017 For personal use only Completed seawall embankment and seepage barrier construction activity, October 2017 Seepage barrier construction, July 2018 Starter embankment before closure of breach, July 2017 15
Slide 16: Seepage Barrier construction completed July 2018
Koolan Island Mine Restart Seepage Barrier construction completed July 2018 For personal use only Excavation of final seepage barrier panel - July 2018. MGX and Keller personnel celebrate completion of the final panel. 16
Slide 17: Footwall Refurbishment
Koolan Island Mine Restart Footwall Refurbishment For personal use only Avalanche mesh installation on footwall, July 2018 17
Slide 18: Footwall Refurbishment
Koolan Island Mine Restart Footwall Refurbishment For personal use only Deploying barge-mounted shotcreting equipment in Main Pit July 2018 Shotcreting of Main Pit Footwall, July 2018. 18
Slide 19: Dewatering Underway
Koolan Island Mine Restart Dewatering Underway For personal use only Completed seawall embankment and seepage barrier, prior to dewatering, July 2018 Dewatering pipe outfall Submersible pumps and water extraction point Starter embankment before closure of breach , July 2017 Earthmoving to final seaw
Slide 20: Project Progress
Koolan Island Mine Restart Project Progress For personal use only Mining fleet on-site at Koolan Island, July 2018 Koolan Island Shiploader, July 2018 Koolan Island jetty and shiploader, July 2018. 20
Slide 21: Our strengths set us apart
Mount Gibson Iron Our strengths set us apart For personal use only • High Grade Koolan Island Restart Project represents a compelling investment that capitalises on the structural shift in favour of high grade ores. • MGX is the only Australian producer that will provide direct exposure to high grad
Slide 22: FY2018 Financial Results
FY2018 Financial Results For personal use only MGX Investor Presentation 15 August 2018
Slide 23: Supplementary Information: Cost of sales & cash costs
Supplementary Information Cost of sales & cash costs For personal use only Mount Gibson Iron Limited Year Year Reconciliation of Cost of Sales to Cash Cost Information ended ended 30-Jun-18 30-Jun-17 Extension Hill (including Iron Hill) Cost of sales (excluding impairment & reversals), FOB #039;000 $16
Slide 24: Mineral Resources and Ore Reserves Information
Supplementary Information Mineral Resources and Ore Reserves Information For personal use only Koolan Island Main Deposit at 20 April 2018 Competent Persons Statements Mineral Resources Mineral Resources, Tonnes Fe SiO2 Al2O3 P Mount Gibson Iron Mineral Resources: above 50% Fe millions % % % % The i