Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — FY2020 Earnings Presentation
20 slides from Mgx Resources's earnings presentation, Aug 19, 2020
Slide 1: Investor Presentation Financial Results 2019/20
Mount Gibson Iron Limited For personal use only MGX Investor Presentation Financial Results 2019/20 19 August 2020
Slide 2: Corporate Overview
Corporate Overview For personal use only MGX v Platts 62% Fe CFR Index 1.40 140 Issued shares 1,160.2 million shares 1.20 120 1.00 100 Market capitalisation A$856 million ($0.74/share) 0.80 80 Cash/investments A$423 million (30 June 2020) 0.60 60 0.40 40 Bank Borrowings Nil 0.20 20 Index ASX-300 - -
Slide 3: Current Business Overview
Current Business Overview For personal use only Kimberley Region Koolan Island • Australia’s highest grade direct shipping ore (DSO) hematite iron ore mine, with Ore Reserve grade of 65.5% Fe*. • Ore sales commenced in the June 2019 quarter and totalled 2.35 Mwmt in FY2020. • Ore sales guidance of 1
Slide 4: Group Financial Results for 2019/20
Group Financial Results for 2019/20 (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 mat
Slide 5: Financial Results Summary
Financial Results Summary Group Summary Results For personal use only Year ended Year ended (all currency expressed in Australian dollars) 30 June 2020 30 June 2019 Physicals: Ore mined M wmt 2.8 2.4 Ore sold M wmt 4.9 3.2 Realised Price: Average realised price, all products, after shipping freight
Slide 6: Cash and Liquid Investments
Cash and Liquid Investments For personal use only *Figures are shown inclusive of working capital movements. 6
Slide 7: Market Conditions - Iron Ore Pricing
Market Conditions - Iron Ore Pricing For personal use only • Prices across all product types have remained elevated on the High Grade Premium / Low Grade Discount back of strong Chinese demand for steel, and ongoing mine (% per dmtu relative to 62% index) supply disruption. 50% 40% 30% • Brazilian s
Slide 8: Operation - FY2020 Performance
Koolan Island Operation FY2020 Performance For personal use only • Ore sales of 2.35 Mwmt in first full year of production. • June half production impacted by extreme rainfall, slow sediment removal in western end and COVID-19 related disruptions. • Average site cash costs of $99/wmt* FOB for the ye
Slide 9: Operation - Koolan Island location
Koolan Island Operation 1km For personal use only Koolan Island is located in the Yampi Sound of the Buccaneer Archipelago off the northern Kimberley coast of Western Australia, approximately 140 kilometres north of the town of Derby. N To China Existing Main Pit Airstrip Seawall Western Australian
Slide 10: Main Pit Operations
Koolan Island – Main Pit Operations For personal use only Seawall Main Pit, looking west, August 2020 10
Slide 11: Main Pit Operations
Koolan Island - Main Pit Operations For personal use only Ore production in Main Pit western end cut-back, looking west, Main Pit August 2020 11
Slide 12: Crushing & Loading
Koolan Island – Crushing & Loading For personal use only ROM stockpiles, crushing plant and ship loader, June 2020 12
Slide 13: Operation - New Airstrip
Koolan Island Operation – New Airstrip For personal use only Completed airstrip, looking west, August 2020 13
Slide 14: Operation - Outlook for FY2021
Koolan Island Operation Outlook for FY2021 For personal use only • Operational focus on increased mining movements to substantially complete Kamsarmax-class vessel Super Grace being loaded, April 2020. the planned elevated waste stripping phase of the life-of-mine plan within the next 12-18 months.
Slide 15: Mid-West Operations - FY2020 Performance
Mid-West Operations FY2020 Performance For personal use only • Low-grade sales from Extension Hill of 2.6 Mwmt in the financial year versus the initial sales target of 1.0Mwmt. • Average site cash cost of $41/wmt FOB* for the year. • Average realised prices of US$36/dmt FOB for lump and US$27/dmt FO
Slide 16: Mid-West Operations - Outlook for FY2021
Mid-West Operations Outlook for FY2021 For personal use only • Low grade sales extended towards end-2020 based on remaining available low-grade material. Potential to recover some additional saleable low-grade material, subject to market conditions. • Low-grade sales guidance of 1.0-1.2 Mwmt at a si
Slide 17: Business Objectives for FY2021
Business Objectives for FY2021 For personal use only • Koolan Island - commission the new airstrip and substantially complete the elevated stripping phase of the life of mine plan in order to maximise sales and cashflow over the remainder of the mine life as the waste/ore stripping ratio and costs d
Slide 18: Summary
Summary For personal use only • Mount Gibson is Australia’s highest grade (+65% Fe) producer of direct shipping hematite iron ores. • Disciplined pathway to generate significantly increased Koolan Island sales and cashflow. • Mid-West low grade sales extended further, capitalising on favourable iron
Slide 19: Mount Gibson Iron Limited Overview
Mount Gibson Iron Limited Overview For personal use only MGX Presentation authorised by Peter Kerr Chief Executive Officer Mount Gibson Iron Limited +618 9426 7500 19 www.mtgibsoniron.com.au
Slide 20: Supplementary Information: Mineral Resources and Ore Reserves
Supplementary Information Mineral Resources and Ore Reserves Information at 30 June 2019 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