Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Shareholder Meeting (November 2019)
20 slides from Mgx Resources's shareholder meeting presentation, Nov 13, 2019
Slide 1: Presentation by Chief Executive Officer – Annual General Meeting
Mount Gibson Iron Limited For personal use only MGX Presentation by Chief Executive Officer Peter Kerr Annual General Meeting 13 November 2019
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: Corporate Overview
Annual General Meeting Corporate Overview For personal use only MGX v Platts 62% Fe CFR Index 1.40 140 Issued shares 1,157.6 million shares 1.20 120 1.00 100 Market capitalisation A$930 million ($0.80/share) 0.80 80 Cash/investments A$407 million (30 September 2019) 0.60 60 0.40 40 Bank Borrowings N
Slide 4: Business Overview
Annual General Meeting Business Overview For personal use only Kimberley Region Koolan Island • Australia’s highest grade direct shipping ore (DSO) hematite iron ore mine. • Ore Reserves of 20.3Mt @ 65.5% Fe*, for 6 year mine life. • Ore sales commenced June Quarter 2019. • High grade DSO sales of 0
Slide 5: Iron ore market and prices
Annual General Meeting Iron ore market and prices For personal use only Iron Ore Price • Chinese steel production is still strong, reaching (Platts, US$/dmt CFR North China) 748Mt for the nine months ended 30 September 150 2019, up 8% on the same period in 20181. 140 • Iron ore supply resumption fro
Slide 6: FY2019 in review
Annual General Meeting FY2019 in review For personal use only Koolan Island - successful redevelopment of the high grade iron ore operation. Mid-West - extended the mine life through opportunistic sales of stockpiled low grade material at Extension Hill. • Total iron ore sales of 3.2 million wet met
Slide 7: September Quarter - a solid start to FY2020
Annual General Meeting September Quarter - a solid start to FY2020 For personal use only • Total iron ore sales of 1.4 Mwmt, comprising 0.7 Mwmt of high-grade DSO from Koolan Island and 0.7 Mwmt of low-grade material from Extension Hill stockpiles. • Operating cashflow of A$25 million, after corpora
Slide 8: Mid-West Operations
Annual General Meeting Mid-West Operations For personal use only 10 years LTI-Free, September 2019 • Mount Gibson’s operations team in the Geraldton Port achieved 10 years without a Lost Time Injury in September 2019 – an Outstanding milestone. • Low-grade sales from Extension Hill of 0.7 Mwmt at an
Slide 9: Koolan Island – ramp-up progressing
Annual General Meeting Koolan Island – ramp-up progressing For personal use only Main Pit, looking southwest October 2019 9
Slide 10: Koolan Island Operation
Annual General Meeting Koolan Island Operation For personal use only • High grade DSO sales of 0.7 Mwmt in the September 2019 quarter, almost double the June quarter sales volumes. • Average grade of ore sold 65.5% Fe, consistent with Ore Reserve. • Site cash costs of A$89/wmt in the September 2019
Slide 11: Koolan Island – December Quarter progress
Annual General Meeting Koolan Island - December Quarter progress For personal use only Interim replacement conveyor belt en-route to Koolan Island, • Targeting rising shipment rates, building on volumes to date. mid-October 2019. • October shipping disrupted by a shiploader conveyor belt tear - inte
Slide 12: Koolan Island ramp-up progressing
Annual General Meeting Koolan Island ramp-up progressing For personal use only Main Pit looking southeast October 2019 12
Slide 13: Koolan Island ramp-up progressing
Annual General Meeting Koolan Island ramp-up progressing For personal use only Main Pit looking west, October 2019 Seawall Footwall 13
Slide 14: Koolan Island ramp-up progressing – crushing plant
Annual General Meeting Koolan Island ramp-up progressing For personal use only Crushing plant, October 2019 14
Slide 15: Koolan Island ramp-up progressing
Annual General Meeting Koolan Island ramp-up progressing For personal use only High grade ore on the repaired overland conveyor headed for bulk carrier Ocean Zenon, 30 October 2019 15
Slide 16: Bulk Carrier Guo Yuan departing Koolan Island
Annual General Meeting Koolan Island For personal use only Bulk Carrier Guo Yuan 8 departing Koolan Island 7 November 2019 16
Slide 17: FY2020 Business Objectives
Annual General Meeting FY2020 Business Objectives For personal use only • Mid-West operations – complete the current low-grade sales program and extend the program should favourable market prices continue. Thereafter, transition the site to final closure. • Koolan Island – complete the ramp-up of or
Slide 18: Summary
Annual General Meeting Summary For personal use only • Mount Gibson is the only Australian producer of direct shipping high grade (+65% Fe) and low impurity hematite iron ores. • Koolan Island sales ramping up and Mid West low grade sales underway, capitalising on iron ore market conditions. • Demon
Slide 19: Thank You
Thank You For personal use only MGX Annual General Meeting 19 13 November 2019
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
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