Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Diggers & Dealers Forum 2020
24 slides from Mgx Resources's conference presentation, Oct 13, 2020
Slide 1: MGX Diggers & Dealers Forum
Mount Gibson Iron Limited For personal use only MGX Diggers & Dealers Forum 13 October 2020
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: Business Overview – Established Mid-Tier Iron Ore Producer
Business Overview – Established Mid-Tier Iron Ore Producer For personal use only Kimberley Region Koolan Island • Australia’s highest grade direct shipping ore (DSO) hematite iron ore mine, with Ore Reserves of 18.7 Mt grading 65.2% Fe*. • Ore sales guidance of 1.8-2.1 Mwmt for FY2021. • Waste strip
Slide 4: Corporate Overview
Corporate Overview For personal use only MGX Share Price Issued shares 1,186 million shares 1.40 1.20 Market capitalisation A$866 million ($0.73/share) 1.00 Cash/investments A$445 million (30 September 2020) 0.80 0.60 Bank Borrowings Nil 0.40 Index ASX-300 0.20 Dividends A$309 million (fully franked
Slide 5: 2019/20 Financial Year
2019/20 Financial Year (Year ended 30 June 2020; all currency in Australian dollars unless stated otherwise) For personal use only • Total iron ore sales of 4.9 million wet metric tonnes (Mwmt), comprising 2.3 Mwmt of Koolan Island high grade fines and 2.6 Mwmt of Mid-West low grade material. • Posi
Slide 6: Market Conditions - Iron Ore Pricing
Market Conditions - Iron Ore Pricing For personal use only Iron Ore Prices (Platts, US$/dmt CFR North China) 160 140 120 • Prices across all product types have remained 100 elevated on the back of strong Chinese demand 80 for steel, and ongoing mine supply disruption. 60 40 65% • Brazilian supply re
Slide 7: Positive start in September Quarter 2020
Positive start in September Quarter 2020 For personal use only • Total iron ore sales of 1.4 Mwmt comprising 0.7 Mwmt of Koolan Island high grade fines and 0.7 Mwmt of Mid-West low grade material. • Group cashflow of $32 million. • Group unit cash costs of $56/wmt before Koolan Island advanced waste
Slide 8: Australia's highest-grade DSO iron ore mine
Koolan Island Australia’s highest-grade DSO iron ore mine For personal use only Main Pit looking west, August 2020 8
Slide 9: A premium product
Koolan Island A premium product For personal use only Koolan Main Pit - Mineral Resources and Ore Reserves Tonnes Fe SiO2 Al2O3 P millions % % % % Mineral Resources, reported above 50% Fe WA DSO Iron Ore Fines Measured 2.7 60.1 13.40 0.34 0.007 Comparative Iron and Phosphorus Indicated 30.0 65.6 4.8
Slide 10: Site layout
Koolan Island Site layout For personal use only Koolan Island is located in Yampi Sound in the Buccaneer 1km Archipelago off the northern Kimberley coast of Western Australia, approximately 140 kilometres north of Derby. N Existing Airstrip Seawall Mangrove deposit (approximate) Western Australian M
Slide 11: Main Pit Operations
Koolan Island Main Pit Operations Main Pit, looking west, September 2020. For personal use only 11
Slide 12: Main Pit Operations
Koolan Island Main Pit Operations Ore production in west end of Main Pit looking east, September 2020 For personal use only 12
Slide 13: Crushing & Shiploading
Koolan Island Crushing & Shiploading For personal use only ROM stockpiles, crushing plant and shiploader, September 2020 13
Slide 14: Outlook for FY2021
Koolan Island Outlook for FY2021 For personal use only • Waste stripping investment phase of the life-of-mine plan, with ore production and cashflow to rise significantly thereafter from FY2022. • Guidance of 1.8–2.1 Mwmt at cash cost* of $60-65/wmt FOB. • Advanced waste stripping investment (~$100m
Slide 15: Mine life extension targets
Koolan Island Mine life extension targets For personal use only • Numerous opportunities for incremental life extension beyond the current 5 year mine life. • Main Pit – existing resources and development potential along strike, to the west and east. • Mangrove deposit, adjacent to crusher/ROM pad,
Slide 16: New Airstrip
Koolan Island New Airstrip For personal use only Completed airstrip, looking west, August 2020 16
Slide 17: Mid-West Operations
Mid-West Operations Long-Standing Production Presence For personal use only Shine 17
Slide 18: Mid-West Operations: Extension Hill Low Grade Program
Mid-West Operations Extension Hill Low Grade Program For personal use only Reclamation of low-grade stockpiles • FY2020 low grade sales totalled 2.6 Mwmt, versus initial sales target of 1.0Mwmt. • Site operating cashflow of $22 million for FY2020 including rail credit refund of $8 million. • Low gra
Slide 19: Mid-West Operations: A successful presence since 2004
Mid-West Operations A successful presence since 2004…and continuing… For personal use only 8 • First of the “new generation” Mid West Mid-West Iron Ore Sales History producers, commencing exports from Geraldton in 2004. 6 • Ore sales to date of +50Mt through Tallering Ore Sales (Mwmt) Peak and Exten
Slide 20: Mid-West Operations: Shine Iron Ore Project
Mid-West Operations Shine Iron Ore Project For personal use only • Staged development plan to align with market conditions, targeting first shipments in mid-2021. • Ore Reserves of 2.8Mt @ 59.4% Fe* in Stage 1 Pit for initial two-year mine life at circa 1.5Mtpa. Shine Project area • Indicative devel
Slide 21: Mid-West Operations: Shine Iron Ore Project
Mid-West Operations Shine Iron Ore Project For personal use only Shine Project Site Layout. Shine Deposit – Cross-section 6808700, looking north. 21
Slide 22: Mount Gibson Iron - Summary
Mount Gibson Iron - Summary For personal use only • MGX is the only Australian producer of direct shipping high grade (+65% Fe) and low impurity hematite iron ores. • Profitable, with a disciplined pathway to significantly higher sales and cashflows at Koolan. • Mid-West low grade sales extended fur
Slide 23: Mount Gibson Iron Limited
Mount Gibson Iron Limited For personal use only MGX Presentation authorised by Peter Kerr Chief Executive Officer Mount Gibson Iron Limited +618 9426 7500 www.mtgibsoniron.com.au
Slide 24: Supplementary Information
Supplementary Information Mineral Resources and Ore Reserves Information at 30 June 2020 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