Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Diggers and Dealers Conference 2019
21 slides from Mgx Resources's conference presentation, Aug 7, 2019
Slide 1: Mount Gibson Iron – Exporting Australia's highest grade direct shipping iron ore
Mount Gibson Iron Exporting Australia’s highest grade direct shipping iron ore For personal use only MGX Diggers and Dealers Conference 7 August 2019
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 Overview – Long-standing mid-tier iron ore producer
Mount Gibson Iron Business Overview – Long-standing mid-tier iron ore producer For personal use only Kimberley Region Koolan Island • Australia’s highest grade direct shipping (DSO) hematite mine. • Ore Reserves of 21.0Mt @ 65.5% Fe, for 6 year mine life.* • Ore sales recommenced late April 2019. •
Slide 4: Corporate Overview
Mount Gibson Iron Corporate Overview For personal use only MGX Share Price (A$/share, last 12 months) Issued capital 1,130.1 million shares 1.40 1.20 Market capitalisation A$0.9 billion ($0.80/share) UPDATE CHART 1.00 Cash/investments A$385 million (30 June 2019) 0.80 Borrowings Nil 0.60 Index ASX-3
Slide 5: A premier high grade iron ore opportunity
Koolan Island A premier high grade iron ore opportunity For personal use only To China Koolan Island located in Yampi Sound in the Buccaneer 1km Archipelago off the northern Kimberley coast of Western Australia approximately 140 kilometres north of Derby. N Main Pit One of the world’s premier high
Slide 6: The birthplace of Western Australia's iron ore industry
Koolan Island The birthplace of Western Australia’s iron ore industry For personal use only • “Iron Islands” of Yampi Sound a source of ships’ ballast in 19th Century. • 1907 - first commercial mining operation. • 1938 – mine closed due to Commonwealth embargo on iron ore exports. • 1945 – mine re-o
Slide 7: A unique high-grade hematite mine
Koolan Island today A unique high-grade hematite mine For personal use only Main Pit, looking west, August 2019. WA Mainland Main Deposit - Ore Reserves Ore Reserves reported above 50% Fe Fe SiO2 Al2O3 Phos Category Mt % % % % Shipping Channel Proved 0.1 63.4 7.25 1.11 0.013 Seawall Footwall Probabl
Slide 8: A premium product – Comparative Iron and Phosphorous
A premium product Koolan Island moves MGX up the quality curve For personal use only WA DSO Iron Ore Fines – Comparative Iron and Phosphorous 66 MGX Koolan Island Main Pit 65 64 63 62 MGX Mid West 2018 Fe % 61 60 59 58 57 56 0 0.02 0.04 0.06 0.08 0.1 0.12 0.14 P% Sources: Mount Gibson Iron, public/c
Slide 9: A premium product – Comparative Iron and Alumina
A premium product Koolan Island moves MGX up the quality curve For personal use only WA DSO Iron Ore Fines – Comparative Iron and Alumina 66 MGX Koolan Island Main Pit 65 64 63 62 MGX Mid West 2018 Fe (%) 61 60 59 58 57 56 0.75 1.25 1.75 2.25 2.75 3.25 3.75 Al2O3 (%) Sources: Mount Gibson Iron, publ
Slide 10: A premium product – Low alumina and phosphorous content matters
A premium product Low alumina and phosphorous content matters For personal use only Value-in-use Penalties - Alumina and Phosphorous -10 US$/t CFR 0 01-Jul-17 01-Oct-17 01-Jan-18 01-Apr-18 01-Jul-18 01-Oct-18 01-Jan-19 01-Apr-19 Alumina Phosphorous Source: Fastmarkets MB. Value-in-use penalties calc
Slide 11: Iron Ore Market outlook
Iron Ore Market outlook Iron ore pricing remains well supported For personal use only Iron Ore Price Koolan Island is Australia’s highest grade DSO (US$/dmt CFR North China, 2016-19) hematite iron ore mine with an Ore Reserve Grade of 65.5% Fe*: 160 140 • Prices across product types have risen sharp
Slide 12: Operational Profile – Feasibility Study Mine Plan (2018)
Koolan Island Operational Profile – Feasibility Study Mine Plan (2018) For personal use only Operating Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total (from sales commencement) 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.
Slide 13: Mining and ore production ramping up
Koolan Island Mining and ore production ramping up For personal use only Main Pit, looking east, August 2019. 13
Slide 14: Mining and ore production ramping up
Koolan Island Mining and ore production ramping up For personal use only Koolan crushing and screening plant, and stockpile yard, July 2019 14
Slide 15: Unique location
Koolan Island Unique location For personal use only Camp Location Accommodation units 15
Slide 16: June 2019 Quarter
Koolan Island June 2019 Quarter For personal use only • High grade DSO shipments commenced April 2019. • 0.4 Mwmt @ 65% Fe sold in June Quarter, each cargo worth ~A$10M at today’s prices. • Average realised sale price of US$106/dmt FOB in June quarter. • Site cash cost ~A$77/wmt FOB (excl. royalties
Slide 17: Mid-West – Extension Hill low grade sales program
Mid-West – Extension Hill Low grade sales program For personal use only • Prompted by the recent rise in iron ore prices, a program of low grade sales commenced in June 2019, with 0.24 Mwmt exported in the month. • Targeting 1 million tonnes over the next ~6 months. • Right earned to a future income
Slide 18: Mid-West Operations
Mid-West Operations A successful 15 year presence For personal use only Mid-West Ore Sales History 8 • Total Mid-West ore sales of +47Mt to date: Ore Sales (Mwmt) – Tallering Peak Feb 2004 to Sept 2014. 6 – Extension Hill Nov 2011 to Feb 2019. – Low-grade sales from June 2019. 4 • Total Mid-West sal
Slide 19: Summary
Mount Gibson Iron Summary For personal use only • MGX is the only Australian producer of direct shipping high grade (+65% Fe) and low impurity hematite iron ores. • Koolan Island sales ramping up and Mid West low grade sales underway, capitalising on buoyant iron ore market conditions. • Ability to
Slide 20: Mount Gibson Iron – Diggers and Dealers Conference
Mount Gibson Iron Exporting Australia’s highest grade direct shipping iron ore For personal use only MGX Diggers and Dealers Conference 7 August 2019
Slide 21: Supplementary Information – Mineral Resources and Ore Reserves
Supplementary Information Mineral Resources and Ore Reserves Information at 30 June 2018 For personal use only Koolan Island Tonnes Fe SiO2 Al2O3 P millions % % % % Mineral Resources, above 50% Fe Measured 3.71 60.2 13.29 0.30 0.007 Indicated 38.23 65.1 5.48 0.65 0.013 Inferred 9.97 60.6 12.21 0.59
Mount Gibson Iron — Diggers and Dealers Conference 2019 on 6ix