Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Investor Presentation (September 2007)
17 slides from Mgx Resources's investor presentation, Sep 17, 2007
Slide 1: Corporate Presentation
Corporate Presentation For personal use only 1 13/09/2007
Slide 2: Disclaimer
For personal use only Disclaimer 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: Company overview
For personal use only Company overview Corporate • Market cap1 A$1,205m • Cash2 A$61m • Total debt2 A$90m • EV A$1,234m • Index S&P/ASX 200 • Issued capital 787.8m shares, 17m options • Finance facilities A$200m (include A$25m contingent debt) Financials 2007 • Sales A$162.7m (excluding finance inco
Slide 4: Key investment themes
For personal use only Key investment themes 1 Quality assets 2 Solid growth profile 3 Earnings leverage to strong iron ore price outlook 4 Disciplined financial strategy & strong performance 5 Experienced - disciplined Board & executive team with proven track record …Mount Gibson has a solid investm
Slide 5: Quality assets
1 Quality assets Koolan Island For personal use only production Tallering Peak production Extension Hill near-term production 5 13/09/2007
Slide 6: Quality assets – key statistics
1 Quality assets KEY STATISTICS For personal use only Tallering Peak Koolan Island Extension Hill Combined Reserves and Resources1 Proven and Probable Ore Reserves 19.9 (61.5% Fe) 24.8 (65.0% Fe) 12.1 (60.7 Fe) 57.7 (62.8 Fe) (Mt) Measured, Indicated and Inferred 22.1 (61.7% Fe) 57.8 (64.3% Fe) 19.5
Slide 7: Quality assets – Tallering Peak
1 For personal use only Quality assets Tallering Peak • First hematite ore shipped Feb 2004 • Producing 3Mtpa • 65% Lump & 35% Fines ratio • Quality high grade, low contaminant product (61.8% Fe, 4.51 SiO2, 2.15 Al2O3 & 0.03 P) • Access to installed infrastructure Main Range Pits looking west at end
Slide 8: Quality assets – Koolan Island
1 For personal use only Quality assets Koolan Island Crushing, port & ship-loading facilities • First hematite ore shipped Jun 2007 • Production ramping up to 4Mtpa (expected to reach capacity by 4Q 2009) • 30% Lump & 70% Fines ratio (initial production consistent 50% Lump and 50% Fines product) • Q
Slide 9: Main West ore-body ensured timely access to Koolan Island Main Pit
1 For personal use only Quality assets Main West ore-body has ensured timely access to Koolan Island Main Pit 9 13/09/2007
Slide 10: Quality assets – Extension Hill
1 For personal use only Quality assets Extension Hill (detailed feasibility study) • Available resource for mining will be increased • Operationally robust and straightforward • Low capital cost: $84m (including contingency 15%) • Up to 3Mtpa production rate • Average LOM cash cost: $34/t • Low stri
Slide 11: Solid growth profile
2 For personal use only Solid growth profile Production growth of 59% 2007-2010 CAGR1 12.0 CAGR 2007 - 2010: 59% Tallering Peak – full production 10.0 10.0 8.0 Production (Mt) 8.0 6.0 6.0 4.0 2.5 2.0 0.0 2007A 2008F 2009F 2010F Koolan Island – increasing production Note: 1 2007A figure represents sh
Slide 12: Projects among the lowest capital intensity of peers
2 Solid growth profile Mount Gibson’s projects have amongst the lowest capital intensity of any of its peers For personal use only 200 ‘Greenfields’ infrastructure requirement 180 Balmoral South Magnetite Southdown 160 140 Capital intensity (US$/t) Karara magnetite 120 100 Rapid growth project 4 80
Slide 13: Earnings leverage to strong iron ore price outlook
3 Earnings leverage to strong iron ore price outlook Robust iron ore price outlook For personal use only Dramatic growth in global iron ore Substantial increases forecast in iron consumption… ore prices 2,000 …largely driven by 130.0 Iron ore lump (USc/ltu) China’s industrialisation + c.10% Consumpt
Slide 14: Disciplined financial strategy & strong performance
4 Disciplined financial strategy & strong performance Good operating margins For personal use only 2005-2007 sales revenue 2005-2007 net profit CAGR 2005 - 2007: 45% Sales revenue (A$m) 200 163 60.0 CAGR 2005 - 2007: 88% 1 47.8 160 NPAT (A$m) 45.0 120 77 73 30.0 80 23.5 13.5 40 15.0 0 0.0 2005A 2006
Slide 15: Experienced, disciplined Board & executive team
5 Experienced - disciplined Board & executive team with proven track record For personal use only Mr Luke Tonkin Mr Alan Rule Mr Neil Hamilton Mr Craig Readhead Managing Director CFO Chairman Non-Executive Director B.E., MAusIMM, B.Comm, B.Acc, CA LLB B.Juris, LLB, AICD AICD • Appointed in Oct 05 •
Slide 16: Tallering Peak
For personal use only Tallering Peak Access to infrastructure – full production 16 13/09/2007
Slide 17: Koolan Island
For personal use only Koolan Island Installed infrastructure – capacity 6Mtpa 17 13/09/2007
Mount Gibson Iron — Investor Presentation (September 2007) on 6ix