Mgx Resources Limited · ASX:MGX
Mgx Resources — Aztec Resources — Shareholder Meeting (November 2006)
40 slides from Mgx Resources's shareholder meeting presentation, Nov 29, 2006
Slide 1: ASX Release: Annual General Meeting
ASX Release 29 November 2006 The Manager Company Announcements Office Australian Stock Exchange Limited Level 4, 20 Bridge Street SYDNEY NSW 2000 Dear Sir / Madam, Aztec Resources Limited Annual General Meeting Please find attached a copy of the Chairman’s Statement together with a power point prese
Slide 2: Chairman's Address
Aztec Resources Limited Annual General Meeting Wednesday 29 November 2006 Chairman’s Address Ian Burston The past twelve months has been an exciting time for Aztec Resources. At this meeting last year I stood before shareholders and spoke of the opportunity and promise of the Koolan Island project,
Slide 3: Chairman's Address (continued): Mount Gibson takeover
• I remember the reverse caused by the oil price shocks of the 70s. • I remember the boost we got when South Korea sent its economy into overdrive. And we shouldn’t overlook Taiwan’s contribution either. Extracting natural resources is a cyclical industry. The tendency has been for a boom to lead to
Slide 4: Managing Director's Presentation
Annual General Meeting 29 November 2006 Managing Director’s Presentation
Slide 5: Location
Location Koolan Island Project • Western Kimberley Region WA WA Map • 2,000km NNE of Perth • Nearest towns: Derby 130km S and Broome 250km SW
Slide 6: Corporate Details
Corporate Details Market Information Shares on Issue 1,131,296,221 Share Price (close 28/11/06) $0.265 Market Capitalisation ~A$300M Options on issue 20,983,334 Major Shareholders (as at 27/11/06) Mount Gibson Iron Limited 54.07% Australian Royalties Corporation 6.88% Fidelity Investments Management
Slide 7: Directors
Directors Current AZR Board Ian Burston – Non-Executive Chairman Peter Bilbe – Managing Director Michael Arnett – Non-Executive Director Geoff Clifford – Non-Executive Director Proposed AZR Board (until Takeover offer closes) Michael Arnett – Non-Executive Chairman Peter Bilbe – Managing Director Ia
Slide 8: Highlights During Past Year – Significant Progress
Highlights During Past Year – Significant Progress • Bankable Feasibility Study on Koolan Island Iron Ore Project completed • State and Federal environmental approval received • Mining leases granted • Agreement reached with traditional owners • Project funding in place • Construction of the project
Slide 9: Project Funding
Project Funding Underwritten Equity Funds Raised 1. 1 for 2 Rights Issue (plus 1 free option exercisable at 17 cents each by 31 July 2006) completed in January 2006 $42.3m 2. Exercise of 31 July 2006 listed options (received via the rights issue) $42.3m Total $84.6m
Slide 10: Bank Debt Facilities
Bank Debt Facilities The banking syndicate comprises: • Westpac Banking Corporation; • Bank of Scotland International (Australia) Limited; and • The Bank of Tokyo-Mitsubishi UFJ Ltd The A$100 million facility consists of: • a senior debt facility of A$54 million (to be drawn down in US$); • a cost o
Slide 11: Mobile Equipment Lease Finance Facilities
Mobile Equipment Lease Finance Facilities Komatsu Australia Corporate Finance $65.0m Westpac Banking Corporation $ 5.0m Total $70.0m The term of both these facilities is 5 years with agreed residual values
Slide 12: Marketing: Global Sea-borne Iron Ore Demand
Marketing Global Sea-borne Iron Ore Demand 1000 900 800 Million Tonnes 700 600 China 500 Others 400 300 200 100 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 (f) (f) (f) (f) (f) Source: Macquarie Research, May 2006
Slide 13: China's Domestic and Imported Iron Ore
China’s Domestic and Imported Iron Ore 500 450 400 350 300 Mt 250 Domestic 200 Imported 150 100 50 0 1996 1998 2000 2002 2004 2006 (f) Source: China Metallurgical Mining Association, October 2006 Note: Domestic Ore graded at 33% Fe, Imported Ore at 62% Fe
Slide 14: Iron Ore Fines and Lump Prices
Iron Ore Fines and Lump Prices 100 90 80 70 60 US Cents 50 HI Fines per DMTU 40 HI Lump 30 20 10 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: AME Iron Ore Outlook
Slide 15: Sales
Sales • Sales Contract - CITIC Australia for 1.5Mtpa • Sales Contract - Marubeni Corporation for 1.0Mtpa • On-going discussion on sales contract covering remaining quantity of 1.5Mtpa Note: sales quantity is based on production rate of 4 million tonnes per annum, pro rated at lesser production rate
Slide 16: Exploration
Exploration 2005 / 2006 Exploration Highlights • 13.4% increase in the Mineral Resource estimates to 53.3Mt @ 64.6% Fe, 5.6% SiO2 and 1.1% AI2O3 • 12% increase in the Ore Reserve inventory to 24.8Mt @ 65.0% Fe, 4.7% SiO2 and 1.2% AI2O3 • Completion of 9,377m RC drill programme in 100 holes 2006 Expl
Slide 17: Koolan Deposits Summary
West End Targets Koolan Deposits Summary Mullet-Acacia Acacia East Koolan Me canes Barramundi West Island PN Eastern-Barramundi =— Main Orebody y %. Mangrove es
Slide 18: Drilling Summary
Drilling Summary Deposit Holes Metres Mangrove 35 4,610 Barramundi West 9 418 Barramundi South 13 678 Eastern-Barramundi 14 1,329 Mullet-Acacia 20 1,722 Main West 9 620 TOTAL 100 9,377 • Final assays awaited • Mineral resource estimates underway • Future programmes will target other unexplored areas
Slide 19: Mangrove Prospect
Mangrove Prospect • 35 RC drill holes completed within an 850m long section of the Mangrove prospect during this programme • Drilling intersected hematite mineralisation over a 750m strike length • Drilling focused in North West section of the 2km long, sub- vertical, partially outcropping hematite
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Slide 21: Environment
Environment • State and Commonwealth (Northern Quoll) environmental approvals received • Environmental management plans being implemented, including Northern Quoll • Involvement of traditional owners • Procedural approvals required for construction of seawall, dewatering of Main pit and mining below
Slide 22: Commitment to Local Communities
Commitment to Local Communities The Dambimangari (Traditional Owners) On 24 April 2006 Aztec signed a Co-existence Deed with the Dambimangari; the key commitments of which are: • Target of 30% indigenous employment by 2014 • Financial support of Dambimangari through regular payments to a trust • Par
Slide 23: The West Kimberley
The West Kimberley • Community and Careers Day 18 May 2006 • Sponsoring training courses at TAFE • Sponsored Kimberley Clean-up Day 2006, Derby races and Derby Arts Centre • Supporting local businesses • Regular briefings of local stakeholders
Slide 24: Construction Progress
Construction Progress • Approximately 180 persons on site • Crushing and screening plant erection - 80% and 50% complete respectively - dry commissioning in Jan/Feb 2007 - wet commissioning in Feb/March 2007 • Jetty Piles 90% complete - steel decking and concrete panels well advanced • Offsite fabri
Slide 25: Accommodation village and facilities
• Accommodation village (220 beds) - 95% of village units in place and occupied - kitchen operational - wet mess, gym etc late December 2006 • Fuel storage facility (1.5 million litres) - 18 x 90,000 litre self bunded tanks - commission January 2007 • Office complex - operational
Slide 26: Operation Progress
Operation Progress • ROM pad complete • Haul roads construction well advanced • Mining Eastern and Mullet pits commenced (using temporary fleet) • First ore shipment April 2007 • Commence seawall construction May 2007 • Commence waste mining Main pit April 2007 • Deliver first Komatsu trucks and exc
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Slide 29: Jetty Structure
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Slide 35: Plant Facilities
Plant Facilities
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