Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Shareholder Meeting (November 2020)
26 slides from Mgx Resources's shareholder meeting presentation, Nov 11, 2020
Slide 1: AGM Presentation
Mount Gibson Iron Limited For personal use only MGXAGM Presentation Chief Executive Officer Peter Kerr 11 November 2020
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
Business Overview For personal use only Kimberley Region Koolan Island • Australia’s highest grade direct shipping ore (DSO) hematite iron ore mine, with Ore Reserves of 18.7 Mt grading 65.2% Fe*. • Ore sales guidance of 1.8-2.1 Mwmt for FY2021. • Waste stripping investment phase in next 12-18 month
Slide 4: Corporate Overview
Corporate Overview For personal use only MGX Share Price Issued shares 1,186 million shares 1.40 Share Price (A$/share) 1.20 Market capitalisation A$830 million ($0.70/share) 1.00 Cash/investments A$445 million (30 September 2020) 0.80 0.60 Bank Borrowings Nil 0.40 Index ASX-300 0.20 Dividends A$309
Slide 5: 2019/20 Financial Year
2019/20 Financial Year (Year ended 30 June 2020; all currency in Australian dollars unless stated otherwise) • For personal use only Total iron ore sales of 4.9 million wet metric tonnes (Mwmt), comprising 2.3 Mwmt of Koolan Island high grade fines and 2.6 Mwmt of Mid-West low grade material. • Posi
Slide 6: Positive start in September 2020 Quarter
Positive start in September 2020 Quarter For personal use only • Total iron ore sales of 1.4 Mwmt comprising: - 0.7 Mwmt of Koolan Island high grade fines. - 0.7 Mwmt of Mid-West low grade material. • Group cashflow of $32 million. • Group unit cash costs of $56/wmt before Koolan Island advanced was
Slide 7: Market Conditions - Iron Ore Pricing
Market Conditions - Iron Ore Pricing For personal use only Iron Ore Price (US$/dmt CFR North China) 160 • Prices across all product types have remained elevated 140 on the back of strong Chinese demand for steel, and 120 ongoing mine supply disruption. 100 80 60 • Brazilian supply adversely impacted
Slide 8: Australia's highest-grade DSO iron ore mine
Koolan Island Australia’s highest-grade DSO iron ore mine For personal use only Main Pit looking west, August 2020 8
Slide 9: A premium product
Koolan Island A premium product For personal use only Koolan Main Pit - Mineral Resources and Ore Reserves Tonnes Fe SiO2 Al2O3 P millions % % % % Mineral Resources, reported above 50% Fe WA DSO Iron Ore Fines Measured 2.7 60.1 13.40 0.34 0.007 Comparative Iron and Phosphorus Indicated 30.0 65.6 4.8
Slide 10: Site layout
Koolan Island Site layout For personal use only Koolan Island is located in Yampi Sound in the Buccaneer 1km Archipelago off the northern Kimberley coast of Western Australia, approximately 140 kilometres north of Derby. N Existing Airstrip Seawall Mangrove deposit (approximate) Western Australian M
Slide 11: Main Pit Operations
Koolan Island Main Pit Operations For personal use only Main Pit, looking west over the eastern end mining operations, November 2020. 11
Slide 12: Main Pit Operations
Koolan Island Main Pit Operations For personal use only Ore production in thew western end of the Main Pit, September 2020. Mining is targeted to resume in this area after the wet season in March 2021, following a localised rockfall on the footwall in this zone. 12
Slide 13: Crushing & Shiploading
Koolan Island Crushing & Shiploading For personal use only ROM stockpiles, crushing plant and shiploader, September 2020 13
Slide 14: Positive start to FY2021
Koolan Island Positive start to FY2021 For personal use only • Waste stripping investment phase of the life-of-mine plan, with ore Kamsarmax-class vessel Super Grace being loaded, April 2020. production and cashflow to rise significantly thereafter from FY2022. • Ore sales guidance of 1.8–2.1 Mwmt a
Slide 15: Mine life extension targets
Koolan Island Mine life extension targets For personal use only • Numerous opportunities for incremental life extension beyond the current 5 year mine life. • Main Pit – existing resources and development potential along strike, to the west and east. • Mangrove deposit, adjacent to crusher/ROM pad,
Slide 16: New Airstrip
Koolan Island New Airstrip For personal use only Completed airstrip, looking west, August 2020 16
Slide 17: New Airstrip Operational
Koolan Island New Airstrip Operational For personal use only First FIFO crew service landing, 14 October 2020 17
Slide 18: Mid-West Operations
Mid-West Operations Long-Standing Production Presence For personal use only Shine 18
Slide 19: Extension Hill Low Grade Sales Program
Mid-West Operations Extension Hill Low Grade Sales Program For personal use only • FY2020 low grade sales totalled 2.6 Mwmt, versus initial Reclamation of low-grade stockpiles sales target of 1.0Mwmt. • Site operating cashflow of $22 million for FY2020 including rail credit refund of $8 million. • L
Slide 20: Shine Iron Ore Project
Mid-West Operations Shine Iron Ore Project For personal use only • Staged development plan to align with market conditions, targeting first shipments in mid-2021. • Ore Reserves of 2.8Mt @ 59.4% Fe* in Stage 1 Pit. • Initial two-year mine life at circa 1.5Mtpa. Shine Project area • Indicative develo
Slide 21: Shine Iron Ore Project
Mid-West Operations Shine Iron Ore Project For personal use only Shine Project Site Layout. Shine Deposit – Cross-section 6808700, looking north. 21
Slide 22: The MGX Team and Communities
The MGX Team and Communities (statistics as at 30 September 2020) For personal use only • Local employment - we seek to increase employment from our local communities. At Koolan Island, over 20% of our employees reside in Derby, Broome and surrounds. • Gender diversity - women account for 18% of our
Slide 23: Mount Gibson Iron - 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. • Profitable, with a disciplined pathway to significantly higher sales and cashflows at Koolan Island. • Mid-West low grade sales furth
Slide 24: Questions
Mount Gibson Iron Limited For personal use only MGX Questions 24
Slide 25: For personal use only MGX
Mount Gibson Iron Limited For personal use only MGX AGM Presentation authorised by Peter Kerr Chief Executive Officer Mount Gibson Iron Limited +618 9426 7500 www.mtgibsoniron.com.au
Slide 26: Supplementary Information
Supplementary Information Mineral Resources and Ore Reserves Information at 30 June 2020 For personal use only Koolan Island Tonnes Fe SiO2 Al2O3 P Total Group Mineral Resources and Ore Reserves at 30 June (above 50% Fe) millions % % % % Mineral Resources, above 50% Fe Tonnes Fe SiO2 Al2O3 P Measure
Mount Gibson Iron — Shareholder Meeting (November 2020) on 6ix