Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — UBS Iron Ore and Coal Conference 2012
17 slides from Mgx Resources's conference presentation, Nov 27, 2012
Slide 1: Mount Gibson Iron - UBS Iron Ore and Coal Conference
Mount Gibson Iron Jim Beyer - CEO UBS Iron Ore and Coal Conference For personal use only Sydney 27 November 2012 1
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: A leading WA mid-tier iron ore exporter
A leading WA mid-tier iron ore exporter For personal use only Established multi-operation exporter of quality Australian hematite ores to China Financial strength Strong balance sheet/earnings provide flexibility and security in volatile conditions Leadership renewal Rebuilt Board and Management
Slide 4: A leading WA mid-tier iron ore exporter
A leading WA mid-tier iron ore exporter For personal use only Koolan Island • High quality DSO lump and fines (high grade, low contaminants) • Commenced mining premium Main Pit ore in November 2011 • Operation restructured to reduce cash expenditure • Planning underway to define optimum production p
Slide 5: Company snapshot – strong fundamentals
Company snapshot – strong fundamentals For personal use only A leading mid-tier iron ore exporter targeting sales of 8 – 8.5Mt in FY2013 • Issued capital 1085.7 million shares • Index S&P/ASX 200 • Market cap1 A$750 million • Cash @ 30 June 2012 A$293 million • Bank borrowings2 nil • Finance facilit
Slide 6: Business Highlights FY2012
Business Highlights FY2012 For personal use only 800.0 Revenue NPBT NPAT • Improved Safety with LTIFR dropping 700.0 (A$m) 672.1 648.5 11% to 2.62 (Metalliferous industry 600.0 536.3 500.0 open/cut average 3.1) 425.5 400.0 342.9 300.0 239.5 239.6 • Strong net profit of $172.5 million – 2nd 200.0 188
Slide 7: What has been achieved in the last year?
What has been achieved in the last year? Substantial progress has been attained across the business in challenging circumstances For personal use only Appointed 3 new independent directors Doubled MGI export capacity at Geraldton Implemented new independent corporate Port governance mechanisms
Slide 8: Market Outlook
Market Outlook For personal use only The long term outlook remains strong – Chinese steel consumption has a long way to run Urbanisation remains a key driver of Chinese steel consumption, with regeneration of existing urban centres also becoming important to underlying demand. Source: NBS, World Ban
Slide 9: Moving in the right direction
Moving in the right direction Operational performance has improved significantly in FY2013 For personal use only • Sales outlook of 8 - 8.5 Mt in FY2013 • Sept Q shipments increased to 1.76 Mt – up 52% on prior quarter • Quarterly Koolan Island shipments increased 53% to 786Kt • Quarterly Mid West s
Slide 10: Koolan Island – optimising existing operation
Koolan Island – optimising existing operation For personal use only • Premium products – 63.5%Fe • Simple logistics – no rail, standalone ship-loader • Current production rate ~3Mtpa, +9 year life • Low grade sales commenced • Study to define optimum production profile to be complete early 2013 • Op
Slide 11: Geraldton Port – increased export capacity
Geraldton Port – increased export capacity For personal use only • Infrastructure access a strategic asset - key barrier to entry for new producers • MGI Mid West export capacity doubled to ~6Mtpa • 240,000t MGI Berth 5 shed commissioned April 2012 MGI MGI Berth 4 • Total MGI port storage capacity S
Slide 12: Extension Hill – exploration upside
Extension Hill – exploration upside For personal use only • Simple, low cost operation, life of mine strip ratio ~1:1 • Nameplate capacity of 3Mtpa • Diversified customer base • Uncommitted volumes under discussion with prospective new customers • First spot cargo sold November 2012 Growth Potential
Slide 13: Tallering Peak – fine tuning for its final year
Tallering Peak – fine tuning for its final year For personal use only • Mining scheduled for completion in mid 2013 • Targeting ~2.5 Mt standard product in FY2013 • Completed first sales of low grade product • Sales from low-grade stockpiles (~1.1 Mt) to continue into FY2014 • T1 drilling in phase 2
Slide 14: Strategy – pursuing growth
Strategy – pursuing growth Optimising existing business, now pursuing M&A and exploration-driven growth For personal use only PRIORITIES • Bed down recent initiatives to cut costs and maximise cash flow • Target further cost control and elimination of waste/inefficiencies • Evaluate early adoption o
Slide 15: Summary
Summary For personal use only Disciplined business strategy Mount Gibson has… Access to existing export Strong and profitable operating business infrastructure Strengthening operational Established DSO products performance Growing FY2013 production profile Focused growth plan Strong balanc
Slide 16: Thank You
Thank You For personal use only For more information visit: www.mtgibsoniron.com.au 16
Slide 17: Additional information
Additional information For personal use only Total Group Mineral Resources and Reserves Koolan Island at 30 June 2012 Mineral Resources, above 50% Fe Tonnes Fe SiO2 Al2O3 P Tonnes Fe SiO2 Al2O3 P millions % % % % millions % % % % Measured 10.8 59.6 13.0 1.04 0.02 Mineral Resources 95.2 61.6 8.29 1.1
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