Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Shareholder Meeting (November 2023)
23 slides from Mgx Resources's shareholder meeting presentation, Nov 15, 2023
Slide 1: CEO Presentation - Annual General Meeting
Mount Gibson Iron Limited MGX CEO Presentation For personal use only Annual General Meeting 15 November 2023
Slide 2: Disclaimer and Forward-Looking Statements
Disclaimer and Forward-Looking Statements For personal use only This Document 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 Documen
Slide 3: Corporate Overview
Mount Gibson Iron Corporate Overview MGX Share Price 0.8 Share Price (A$/share) 0.7 For personal use only Issued shares 1,214 million shares 0.6 Market capitalisation A$667 million ($0.55/share) 0.5 0.4 Cash/investments A$257 million (30 September 2023) 0.3 Bank Borrowings Nil 0.2 0.1 Dividends A$33
Slide 4: Business Overview – High Grade and Low Impurity Iron Ore Producer
Mount Gibson Iron Business Overview – High Grade and Low Impurity Iron Ore Producer Kimberley Region For personal use only Koolan Island • Australia’s highest grade hematite Direct Shipping Ore (DSO) with direct port access to market (FY23 sales of 3.0 Mwmt @ 65.3% Fe). • Now delivering increased sa
Slide 5: FY23 Summary
Mount Gibson Iron FY23 Summary Continued safety Shipment rates accelerated For personal use only High grade ore production improvements and sales increased Ore sales doubled to 3.0 Mwmt TRIFR reduced to 5.2 at end-FY23, grading 65.3% Fe and revenue down from 11.4 previously. Ore production lifted to
Slide 6: Market Conditions: Iron Ore Pricing – US$
Market Conditions Iron Ore Pricing – US$ Iron Ore Price Prices have rebounded strongly since dipping <US$80/t CFR in late For personal use only (US$/dmt CFR North China) 300 2022 but remain volatile. Sentiment is sensitive to China’s 250 weaker than expected post-Covid economic performance. 200 Near
Slide 7: Market Conditions: Grade Premiums and Discounts
Market Conditions Grade Premiums and Discounts High-grade Premium / Medium-Grade Discount Foreign Exchange Rate (% per dmtu relative to 62% index) 1.0 For personal use only (A$:US$) Grade pricing differentials have 50% remained relatively steady since late 0.5 40% 2022 although there has been some e
Slide 8: Market Conditions: Iron Ore Pricing – A$
Market Conditions Iron Ore Pricing – A$ Iron Ore Price For personal use only (A$/dmt CFR North China) 400 350 300 250 $218 The weaker Australian dollar continues to provide additional 200 price uplift. 150 100 50 0 65% Fe 62% Fe 58% Fe Source: S&P Global / Platts 8
Slide 9: Koolan Island
Koolan Island Fully equipped stand-alone mining, processing and shiploading infrastructure Koolan Island is located in Yampi Sound in the Buccaneer 1km Archipelago off the northern Kimberley coast of Western For personal use only Australia, approximately 130 kilometres north of Derby. N Acacia East
Slide 10: Koolan Island: Substantial progress over the last year
Koolan Island Substantial progress over the last year For personal use only Ore production has risen to +1.0 Mwmt/quarter following completion of the overburden stripping and footwall ground support programs. Waste-to-ore strip ratio has dramatically reduced. The strip ratio averaged 0.7:1 in the Se
Slide 11: Strong Start to FY24 - September Quarter Summary
Strong Start to FY24 September Quarter Summary For personal use only Steady Ore Production Record Koolan Shipments Strong Operating Margin Record 1.33 Mwmt at 65.5% Fe, Sales revenue $208 million FOB at Ore production continuing at over with 18 shipments completed. average realised price of US$105/d
Slide 12: Koolan Island Main Pit Operations
Koolan Island Main Pit Operations Main Pit, looking east, November 2023. For personal use only Eastern End Seawall Hanging Footwall wall Western End 12
Slide 13: Koolan Island Main Pit Operations
Koolan Island Main Pit Operations Mining in western end of Main Pit, For personal use only October 2023 13
Slide 14: Koolan Island Processing and Shiploading
Koolan Island Processing and Shiploading Koolan Island stockpiles, processing circuit and shiploading, November 2023 For personal use only 14
Slide 15: Mid-West Assets: Fenix Transaction to generate ongoing value
Mid-West Assets Fenix Transaction to generate ongoing value Fenix acquired MGX’s Mid-West hematite assets: two For personal use only Geraldton port sheds, two rail sidings, hematite rights at Shine and Extension Hill, and also assumed the remaining rehabilitation obligations. MGX received cash ($10m
Slide 16: Carbon Emission Reductions
Carbon Emission Reductions Positive trend Mount Gibson supports the intent of the Paris Agreement Greenhouse gas emissions – MGX sites and 2021 Glasgow Climate Pact to reduce global carbon 80,000 74,983 3.65 4.0 For personal use only 70,351 emissions and limit global warming to less than 1.5oC above
Slide 17: Iron Ore Quality in Steel Production
Iron Ore Quality in Steel Production Ore quality has a significant impact on steel making unit costs and emissions intensity Blast Furnace The impurities content of iron ore (predominantly For personal use only alumina & silica) determines Blast Furnace efficiency and productivity. High-impurity ore
Slide 18: Koolan Island: A high grade and low impurity direct-shipping iron ore product
Koolan Island A high grade and low impurity direct-shipping iron ore product WA Direct Shipping Iron Ore Fines Products WA Direct Shipping Iron Ore Fines Products WA Direct Shipping Iron Ore Fines Products Comparative Iron & Phosphorus Comparative Iron & Alumina Comparative Iron & Silica Fe % Fe % F
Slide 19: Community Activities
Community Activities An important and positive contribution Significant national contribution – MGX directly contributed $379.5m to MGX at the CMEWA’s Inspiring Girls Careers Forum the Australian economy in FY23 via supplier payments, wages, royalties, For personal use only taxes and community inves
Slide 20: Sustainability Report Highlights for FY23
Sustainability Report Highlights for FY23 Operating Responsibly Caring for our People Our Contribution For personal use only Climate Change Safety Supporting the Economy • Climate Change and Energy Management Policy guides • Zero Fatalities. • Direct contribution of $379.5 million to the Australian
Slide 21: Summary - An established producer of high-grade iron ore products
Mount Gibson Iron Summary - An established producer of high-grade iron ore products An established independent mid-tier iron ore For personal use only producer offering meaningful exposure to production growth of high grade (65% Fe) hematite iron ores. Increased sales and cashflows expected over the
Slide 22: Annual General Meeting 2023
Annual General Meeting 2023 MGX For personal use only Presentation authorised by Peter Kerr, Chief Executive Officer Mount Gibson Iron Limited +61 (0)8 9426 7500 www.mtgibsoniron.com.au 22
Slide 23: Supplementary Information: Mineral Resources and Ore Reserves
Supplementary Information Mineral Resources and Ore Reserves Information as at 30 June 2023 Total Group Mineral Resources and Ore Reserves at 30 June 2023 (above 50% Fe) Competent Persons Statements Tonnes Fe SiO2 Al2O3 P Exploration Results: millions % % % % The information in this report that rela
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