Slide 1: FY2015 Financial Results
FY2015 Financial Results MGX Investor Presentation 19 August 2015
Slide 2: Disclaimer
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 Prospectus nor an Offe
Slide 3: FY2015 Overview
FY2015 Overview Full year sales revenue of A$325 million (FY2014: A$898 million) on iron ore sales of 5.8 million wet metric tonnes^ (Mwmt) (FY2014: 9.7 Mwmt). Underlying gross loss* of A$13.9 million before impairments (FY2014: A$173.0 million gross profit). Reported net loss after tax of A$9
Slide 4: A challenging year: Impacted by seawall and falling prices
FY2015 Profit/Loss A challenging year: Impacted by seawall and falling prices Results for 12 months ended 30 June 2015 compared with the prior 12 months 12 months ended ended corresponding 12 month period: 30 June 30 June 2015 2014 Ore tonnes mined^ wmt (mill) 5.9 7.9 Ore tonnes sold^ wmt (mill) 5.8
Slide 5: Cash Movements: A challenging year
FY2015 Cash Movements A challenging year FY2015 Cash Movement Summary A$m Opening cash balance at 30 June 2014 520 Dividend paid (44) Interest received 12 Corporate & Projects (24) Exploration (3) Redundancies and accrued benefits (17) Extension Hill cashflow (after royalties and capex) 35 Koolan Is
Slide 6: A challenging year: Impacted by Koolan seawall and falling prices
FY2015 A challenging year: Impacted by Koolan seawall and falling prices 12 months ended 30 June: 2015 2014 Sales Volume (Mwmt) 5.8 9.7 Sales Revenue (A$m) 325 898 Realised FOB Price (A$/wmt sold, incl. penalties & FX hedging) 56 92 Cost Performance (continued operations) A$m A$/wmt sold A$m A$/wmt
Slide 7: Extension Hill: Solid operational and cost performance
FY2015 Extension Hill: Solid operational and cost performance Extension Hill Sep-14 Dec-14 Mar-15 Jun-15 2014/15 Quarterly Cash Cost & Unit Quarter Quarter Quarter Quarter Year Cashflow Performance Sales volume ‘000 wmt 705 847 776 1,080 3,408 Cash operating cost A$/wmt 54.73 41.15 47.20 37.68 44.24
Slide 8: FY2016 Outlook: Continued focus on cash margins and cost reductions
FY2016 Outlook Continued focus on cash margins and cost reductions Sales Guidance: − Extension Hill production to increase to 3.5-4.0 million tonnes per annum in FY2016. − Second stage mining campaign planned at Koolan Island Acacia East satellite pit to recover additional 0.7Mt in the December half
Slide 9: H2 actions stabilised business and position it for upside
FY2015 - A challenging year H2 actions stabilised business and position it for upside The MGX response in H2 has been decisive and effective: • Substantial cost reductions achieved business-wide: • Corporate costs reduced by +50% and targeted to fall to <A$1m/month • Workforce numbers reduced 68% •
Slide 10: Financial Results
FY2015 Financial Results MGX Investor Presentation 19 August 2015
Slide 11: Supplementary Information: Business is positioned for upside
Supplementary Information Business is positioned for upside Koolan Island • Acacia East Pit Stage 2 completion by Dec 2015 • Transition to care and maintenance end 2015 • Complete evaluation of Main Pit seawall rebuild options • Main Pit seawall insurance claim progressing • Progress Koolan Island L
Slide 12: Top quality Mineral Resources position business for upside
Supplementary Information Top quality Mineral Resources position business for upside Tonnes Fe SiO2 Al2O3 P Iron Hill millions % % % % Significant future optionality value from substantial Mineral Resources* : Mineral Resources, above 50% Fe Measured 0.00 0.0 0.00 0.00 0.000 Iron Hill: Indicated 1.4
Slide 13: Appendix – Reserves and Resources
Supplementary information Appendix – Reserves and Resources Mineral Resources and Ore Reserves at 30 June 2015 Koolan Island Total Group Mineral Resources and Ore Reserves at 30 June 2015 Tonnes Fe SiO2 Al2O3 P millions % % % % Tonnes Fe SiO2 Al2O3 P (above 50% Fe) Mineral Resources above 50% Fe mil