Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — AJM Global Iron & Steel Forecast Conference 2014
20 slides from Mgx Resources's conference presentation, Mar 12, 2014
Slide 1: AJM Global Iron & Steel Forecast Conference
AJM Global Iron & Steel Forecast Conference For personal use only MGX 12 March 2014 1
Slide 2: Disclaimer
Disclaimer This Document is Confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to For personal use only 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: MGX at a glance
MGX at a glance For personal use only Member S&P/ASX-200 Record ore sales and revenue in H1 2014 Market cap $880 million 5.1Mt ore, $509.5m *@ $0.805/share , 10/3/2014. 1,090.6m shares on issue H1 2014 net profit after tax doubled Dividends paid since Sept 2011 $78.3m, up 111% $130m Financially stro
Slide 4: Business overview
Business overview For personal use only Koolan Island Mine • Premium DSO lump and fines • Ramping up to 4 Mtpa by end 2014 • Long life asset with life extension potential • Simple logistics Mid West Region Tallering Peak, Extension Hill & Geraldton Port facilities Tallering Peak Extension Hill • Min
Slide 5: Maximising value – a simple strategy
Maximising value – a simple strategy For personal use only • Cost reduction and elimination of waste Leverage off • Operational optimisation and business improvement • Extension of production profile: existing asset – Optimise resources and reserves inventory – Brownfields exploration base to extrac
Slide 6: Focused on adding to the sales profile
Focused on adding to the sales profile For personal use only Ore sales history and current indicative outlook* 10 Stage Two Actual Forecast target 8 Stage One target 6 Ore Sales (Mwmt) 4 2 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Year to 30 June FY'14 gu
Slide 7: Koolan Island – a quality asset with upside
Koolan Island – a quality asset with upside For personal use only • Long life asset: +7 years Ore reserves 30Mt @ 64% Fe* Mineral Resources of 68.5Mt @63% Fe* • High-quality iron ore products • Simple logistics - dedicated shiploader and no road or rail • Optimised ramp up to 4Mtpa - reducing un
Slide 8: Koolan Island – a quality asset with upside
Koolan Island – a quality asset with upside For personal use only 1km West End exploration targets N Main Pit 8
Slide 9: MGX Mid West – established infrastructure and high potential to grow resources
MGX Mid West – established infrastructure and high potential to grow resources For personal use only • Established infrastructure footprint gives MGX a competitive edge • Extension Hill region shaping as a potential resources hub • Shine Hematite Project – targeting mining by end CY2014 • Positive r
Slide 10: Geraldton Port – a key asset
Geraldton Port – a key asset For personal use only Ship Loader Rail Unloader MGX Berth 5 MGX Shed Berth 4 Shed 10
Slide 11: Extension Hill – a low cost growth platform
Extension Hill – a low cost growth platform For personal use only • Simple low-cost operation • Established road, rail and port solutions • +3 years life at 3Mtpa • High potential near-mine exploration targets with known mineralisation • Potential processing hub for regional opportunities 4 11
Slide 12: Extension Hill South – high potential target
Extension Hill South – high potential target • For personal use only Multiple known hematite targets located 1-3km from crusher • Iron Hill Prospect Exploration Target of 5-7 Mt @ 58-61% Fe. The potential quantity and grade of this Exploration Target is conceptual in N nature and there has been insu
Slide 13: Shine – a quality near-term opportunity
Shine – a quality near-term opportunity For personal use only • Purchase completed 7 March 2014* • Hematite Mineral Resource of 7.8 Mt @ 59.0% Fe • Ore Reserves of 5.6Mt @ 59.3% Fe • Advanced approvals/permitting • Indicative ore production target of 1.6 Mtpa • Indicative $9-11m development cost (<$
Slide 14: Plateau Prospect, Fields Find
Plateau Prospect, Fields Find • Unconventional setting - iron-enriched laterite For personal use only over ultra-mafic basement • 228 hole RC program completed November 2013* • 114 significant intersections +50% Fe, including: • 18m @ 59.2% Fe, 16m @ 58.4% Fe, 7m @ 60.5% Fe • Only 5% of 10sqkm prosp
Slide 15: Tallering Peak – an example of value-add
Tallering Peak – an example of value-add For personal use only • T6 pit life extended to Feb 2014 • T1 satellite defined, permitted and developed within 18 months • T1 ore production commenced in September 2013 • Mining operations extended to mid 2014 – a year later than planned • On track for 2.5 M
Slide 16: Focused on adding to the sales profile
Focused on adding to the sales profile For personal use only Ore sales history and current indicative outlook* 10 Stage Two Actual Forecast target 8 Stage One target 6 Ore Sales (Mwmt) 4 2 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Year to 30 June FY'14 gu
Slide 17: Summary
Summary • For personal use only An established mid-cap iron ore producer • On track to sell a record 9.0 - 9.5 million tonnes in FY2014 • Strong operating cashflows and balance sheet • Established transport infrastructure and long term customer contracts • Exploration upside and disciplined value-fo
Slide 18: 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 18
Slide 19: Appendix – Reserves and Resources
Appendix – Reserves Supplementary and Resources information For personal use only Mineral Resources and Ore Reserves at 30 June 2013 Total Group Mineral Resources and Ore Reserves at 30 June 2013 Koolan Island Total Group Mineral Resources and Ore Reserves at 30 June 2013 Tonnes Fe SiO2 Al2O3 P mill
Slide 20: Appendix – Reserves and Resources (Shine)
Appendix – Reserves Supplementary and Resources information Shine Hematite Mineral Resources For personal use only Resource Category Tonnes Fe SiO2 Al2O3 P LOI (Mt) % % % % % Measured 2.65 59.7 7.58 2.18 0.085 4.18 Indicated 4.17 58.7 9.14 1.72 0.078 4.06 Inferred 0.95 58.0 9.80 1.51 0.079 4.68 Tota
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