Mgx Resources Limited · ASX:MGX
Mgx Resources — H1 FY2021 Earnings Presentation
20 slides from Mgx Resources's earnings presentation, Feb 24, 2021
Slide 1: December 2020 Half-Year Financial Results
Mount Gibson Iron Limited MGX December 2020 Half-Year Financial Results 24 February 2021
Slide 2: Disclaimer
Disclaimer This Document 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 Offer to Subscribe for S
Slide 3: Corporate Overview
Corporate Overview MGX Share Price Issued shares 1,186 million shares 1.40 Share Price (A$/share) 1.20 Market capitalisation A$1.1 billion ($0.92/share) 1.00 Cash/investments A$436 million (31 December 2020) 0.80 0.60 Bank Borrowings Nil 0.40 Index ASX-300 0.20 Dividends A$309 million (fully franked
Slide 4: Business Overview
Business Overview Kimberley Region Koolan Island • High-grade direct shipping ore (DSO) hematite iron ore mine, with Ore Reserves of 18.7 million tonnes grading 65.2% Fe*. • Ore sales 1.1 Mwmt** in December 2020 half-year. • Elevated waste stripping phase targeted for completion in September 2021 qu
Slide 5: December 2020 Half-Year Group Highlights
December 2020 Half-Year Group Highlights (all currency in Australian dollars unless stated otherwise) • Total iron ore sales of 2.3 million wet metric tonnes (Mwmt) (1H 2019/20: 2.8 Mwmt), comprising 1.1 Mwmt of high-grade direct shipping ore (DSO) and 1.2 Mwmt of low-grade material. • Iron ore sale
Slide 6: Financial Results Summary – December 2020 Half-Year
Financial Results Summary – December 2020 Half-Year Half-Year Half-Year Summary Results ended ended (all currency expressed in Australian dollars) 31-Dec-2020 31-Dec-2019 Physicals: Ore mined M wmt 1.4 1.4 Ore sold, including previously mined low grade stockpiles M wmt 2.3 2.8 Realised Price: Averag
Slide 7: Iron Ore Pricing
Iron Ore Pricing Iron Ore Price 250 (US$/dry metric tonne, CFR North China) • Prices across all product types have remained elevated on the back of strong Chinese demand for steel and 200 ongoing mine supply disruptions. 150 100 • Brazilian supply has been adversely impacted by the 50 COVID-19 pande
Slide 8: Koolan Island
Koolan Island Site layout 1km N Koolan Island is located in Yampi Sound in the Buccaneer Archipelago off the northern Kimberley coast of Western Australia, approximately 140 kilometres north of Derby. Original Airstrip Seawall Mangrove deposit (approximate) Western Australian Mainland 8
Slide 9: Steady performance in the December 2020 half-year
Koolan Island Steady performance in the December 2020 half-year • Ore sales on plan at 1.1 Mwmt in the half-year. • Half-yearly operating cashflow of $106 million before capitalised waste stripping of $63 million and capital improvement projects of $5 million. • Average unit cash costs of $64/wmt FO
Slide 10: Outlook for 2020/21 Financial Year
Koolan Island Outlook for 2020/21 Financial Year • Sales in the March and June 2021 quarters are expected to remain similar to the December 2020 quarter, before rising from the September 2021 quarter onwards. • Koolan ore sales for the 2020/21 financial year will be at the lower end of guidance (~1.
Slide 11: Main Pit Operations
Koolan Island Main Pit Operations Main Pit, looking west, February 2021. Seawall embankment 11
Slide 12: New airstrip operational
Koolan Island New airstrip operational First FIFO crew service landing, 14 October 2020 Official opening of Laawun Airport, 26 November 2020 12
Slide 13: A premium quality high grade orebody
Koolan Island A premium quality high grade orebody Koolan Main Pit - Mineral Resources and Ore Reserves @ 30/6/2020 WA DSO Iron Ore Fines Tonnes Fe SiO2 Al2O3 P millions % % % % Comparative Iron and Phosphorus Mineral Resources, reported above 50% Fe Measured 2.7 60.1 13.40 0.34 0.007 66 Indicated 3
Slide 14: Mine life extension targets
Koolan Island Mine life extension targets • Opportunities for incremental extensions 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, under evaluation. • Reviewing prosp
Slide 15: Mid-West Operations: Extension Hill Low Grade Program
Mid-West Operations Extension Hill Low Grade Program Reclamation of low-grade stockpiles • Low grade sales program successfully completed in December 2020 as planned. • Sales for the December half-year of 1.2 Mwmt, at the top end of guidance, and cash costs of $40/wmt FOB, at the lower end of guidan
Slide 16: Shine Iron Ore Project
Shine Iron Ore Project Bore installation, February 2021 Shine open pit area, looking north, February 2021 Turkey’s nest dam embankment Site water supply, January 2021 construction, February 2021 16
Slide 17: Mid-West Operations: Shine Iron Ore Project
Mid-West Operations Shine Iron Ore Project • Ore Reserves of 2.8Mt @ 59.4% Fe* in Stage 1 Pit, for initial two-year mine life at circa 1.5 Mtpa. • Potential to extend life by a further ~2 years, subject to market conditions, sourced from total Mineral Resources of 10.8 Mt grading 58.2% Fe. • Indicat
Slide 18: Mount Gibson Iron (MGX) Summary
Mount Gibson Iron (MGX) Summary • MGX is an established successful independent iron ore producer with Koolan Island offering attractive high grade (~65% Fe) and low impurity hematite iron ores. • Profitable, with a disciplined pathway to materially higher sales and cashflows at Koolan Island. • Deve
Slide 19: Mount Gibson Iron Limited
Mount Gibson Iron Limited MGX Presentation authorised by Peter Kerr Chief Executive Officer Mount Gibson Iron Limited +618 9426 7500 www.mtgibsoniron.com.au 19
Slide 20: Supplementary Information
Supplementary Information Mineral Resources and Ore Reserves Information at 30 June 2020 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 Measured 3.4 60.3 13.23 0.30