Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Shareholder Meeting (November 2015)
14 slides from Mgx Resources's shareholder meeting presentation, Nov 11, 2015
Slide 1: Annual General Meeting
Annual General Meeting For personal use only MGX CEO - Jim Beyer 11 November 2015
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: FY2015 Business Overview
FY2015 Business Overview For personal use only Koolan Island • Acacia East Pit Stage 2 & 3 to extend mining and sales into March Quarter 2016 • Transition to care and maintenance mid-2016 • Evaluation of Main Pit seawall rebuild options ongoing • Main Pit seawall insurance claim progressing • Koolan
Slide 4: FY2015: A challenging year
FY2015 A challenging year For personal use only • Average Platts 62% Fe price 41% lower at US$72/dmt CFR for FY2015 • Koolan Island Main Pit operations suspended after seawall failure in November 2014 • Total group ore sales of 5.8 Mwmt, down 40% • Total ore sales revenue down 64% to A$325 million S
Slide 5: FY2015 Cash movements
FY2015 Cash movements For personal use only 550 35 24 500 44 17 12 8 12 450 A$M 83 400 520 45 350 300 334 250 200 5
Slide 6: A challenging year, but still significant positives
FY2015 A challenging year, but still significant positives For personal use only • Lost time injury frequency rate reduced to ZERO from 3.43 • TRIFR reduced 29% to 9.4 • Cost of Goods Sold reduced 17% and falling • Total workforce reduced 68% • Corporate costs reduced 50% and falling • Significant v
Slide 7: Extension Hill: Low-capital growth platform
Extension Hill Low-capital growth platform • For personal use only Established road, rail and port solutions • ~0.6:1 remaining LOM strip ratio N • Production ramping up to 3.5 – 4.0 Mtpa • Extension Hill pit scheduled for completion in late 2016 • Iron Hill Deposit, 3km south of current pit, offers
Slide 8: Koolan Island: Continuing to extract value
Koolan Island Continuing to extract value For personal use only • Main Pit inundated after seawall failure in December quarter 2014 • Most of workforce demobilised in late 2014 • Acacia East Stage 1 satellite mining campaign commenced in early 2015 • Acacia East Stages 2 and 3 to extend sales into M
Slide 9: Koolan Island: Future Potential
Koolan Island Future Potential For personal use only • Technical investigation into seawall failure completed • Insurance claim progressing: • Property damage and business interruption cover • Conditional confirmation that policies will respond with initial partial progress payment of $1.85m receive
Slide 10: FY2016 Outlook: September quarter provides a solid start
FY2016 Outlook September quarter provides a solid start For personal use only • Group ore sales 1.1 Mt Strong • Ore sales revenue of A$54 million FOB • All in group cash costs of A$52/wmt FOB* operating • Extension Hill ramp up on track to attain 3.5 - 4.0 million tonnes per annum rate performance i
Slide 11: FY2016 Outlook: Continued focus on cash margins and cost reductions
FY2016 Outlook Continued focus on cash margins and cost reductions For personal use only Sales Group Ore Sales Guidance increased to 4.5 – 5.0 Mwmt for FY2016: • Extension Hill production ramping up to 3.5 - 4.0 Mtpa in FY2016. • Stages 2 and 3 of Acacia East mining campaign at Koolan Island to reco
Slide 12: The Future
The Future MGX has real upside potential on multiple fronts For personal use only • Extension Hill production plan accelerates cashflow and lowers unit costs • Iron Hill Resource confirms mine life extension potential • Koolan Island seawall rebuild evaluation offers significant future production po
Slide 13: Thank You
Thank You For personal use only MGX For more information: Phone: +618 9426 7500 Email: admin@mtgibsoniron.com.au Web: www.mtgibsoniron.com.au 13
Slide 14: Supplementary information: Mineral Resources and Ore Reserves
Supplementary information Appendix Mineral – Reserves Resources and Resources and Ore Reserves at 30 June 2015 Total Group Mineral Resources and Ore Reserves at 30 June 2015 For personal use only Koolan Island Tonnes Fe SiO2 Al2O3 P millions % % % % Tonnes Fe SiO2 Al2O3 P (above 50% Fe) Mineral Reso
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