Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Macquarie Western Australia Forum 2019
20 slides from Mgx Resources's conference presentation, Dec 3, 2019
Slide 1: Macquarie Western Australia Forum
Mount Gibson Iron Limited MGX For personal use only Macquarie Western Australia Forum Presentation by CEO Peter Kerr 3 December 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: Corporate Overview
Macquarie WA Forum Corporate Overview For personal use only 1.40 140 Issued shares 1,157.6 million shares 1.20 120 1.00 100 Market capitalisation A$950 million ($0.82/share) 0.80 80 Cash/investments A$407 million (30 September 2019) 0.60 60 Bank Borrowings Nil 0.40 40 MGX v Platts 62% Fe CFR Index I
Slide 4: Business Overview
Macquarie WA Forum Business Overview For personal use only Kimberley Region Koolan Island • Australia’s highest grade direct shipping ore (DSO) hematite iron ore mine. • Ore Reserves of 20.3Mt @ 65.5% Fe*, for 6 year mine life. • Ore sales commenced in the June Quarter 2019. • High grade DSO sales o
Slide 5: Iron ore pricing remains well supported
Macquarie WA Forum Iron ore pricing remains well supported For personal use only Iron Ore Price (US$/dmt CFR North China) • Chinese steel production is still strong, reaching 748Mt for the $160 $140 nine months ended 30 September 2019, up 8% on the same $120 period in 20181. $100 $80 • Iron ore supp
Slide 6: September Quarter - a solid start to FY2020
Macquarie WA Forum September Quarter - a solid start to FY2020 For personal use only • Total iron ore sales of 1.4 Mwmt, comprising 0.7 Mwmt of high-grade DSO from Koolan Island and 0.7 Mwmt of low-grade material from Extension Hill stockpiles. • Operating cashflow of A$25 million, after corporate c
Slide 7: Mid-West Operation
Macquarie WA Forum Mid-West Operation For personal use only Entrance to the Extension Hill Operation October 2019 7
Slide 8: Mid-West Operations
Macquarie WA Forum Mid-West Operations For personal use only 10 years LTI-Free, September 2019 • Mount Gibson’s operations team in the Geraldton Port achieved 10 years without a Lost Time Injury in September 2019 – an outstanding performance. • Low-grade sales from Extension Hill of 0.7 Mwmt at an a
Slide 9: Koolan Island Operation
Macquarie WA Forum Koolan Island Operation For personal use only Main Pit looking southeast October 2019 9
Slide 10: Koolan Island - the birthplace of Western Australia's iron ore industry
Macquarie WA Forum Koolan Island - the birthplace of Western Australia’s iron ore industry For personal use only • Late 1800’s – the “Iron Islands” of Yampi Sound were a known source of ships’ ballast materials. • 1907 - first mining leases issued over Koolan Island deposits. • 1936 - Anglo-Japanese
Slide 11: Waste stripping in west end of Main Pit
Macquarie WA Forum Koolan Island For personal use only Waste stripping in west end of Main Pit, November 2019 11
Slide 12: Koolan Island Operation
Macquarie WA Forum Koolan Island Operation For personal use only • High grade DSO sales of 0.7 Mwmt in the September 2019 quarter, almost double the June quarter sales volumes. • Average grade of ore sold 65.5% Fe, consistent with Ore Reserve. • The seawall is performing well, and to design expectat
Slide 13: Operational Profile – Feasibility Study Mine Plan (2018)
Macquarie WA Forum Koolan Island Operational Profile – Feasibility Study Mine Plan (2018) For personal use only Operating Year (from sales commencement) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 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 Mov
Slide 14: Koolan Island ramp-up progressing
Macquarie WA Forum Koolan Island ramp-up progressing For personal use only Main Pit looking west, November 2019 Seawall Footwall 14
Slide 15: Koolan Island ramp-up progressing
Macquarie WA Forum Koolan Island ramp-up progressing Crushing plant, October 2019 For personal use only 15
Slide 16: Koolan Island ramp-up progressing
Macquarie WA Forum Koolan Island ramp-up progressing For personal use only High grade ore on the overland conveyor headed for bulk carrier Ocean Zenon, 30 October 2019 16
Slide 17: FY2020 Business Objectives
Macquarie WA Forum FY2020 Business Objectives For personal use only • Mid-West operations – complete the current low-grade sales program and extend the program should favourable market prices continue. Thereafter, transition the site to final closure. • Koolan Island – complete the ramp-up of ore pr
Slide 18: Summary
Macquarie WA Forum Summary For personal use only • Mount Gibson 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 iron ore market conditions. • Ability t
Slide 19: Thank You
Thank You MGX For personal use only Mount Gibson Iron Limited Level 1, 2 Kings Park Road West Perth WA 6005 Tel: +61 8 9426 7500 Macquarie WA Forum E: admin@mtgibsoniron.com.au 13 November 2019 W: www.mtgibsoniron.com.au 19
Slide 20: Supplementary Information
Supplementary Information Mineral Resources and Ore Reserves Information at 30 June 2019 Koolan Island For personal use only Tonnes Fe SiO2 Al2O3 P Total Group Mineral Resources and Ore Reserves at 30 June (above 50% Fe) millions % % % % M ineral R esources, above 50% Fe Tonnes Fe SiO2 Al2O3 P Measu
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