Mgx Resources Limited · ASX:MGX
Mgx Resources — Investor Presentation (October 2018)
20 slides from Mgx Resources's investor presentation, Oct 24, 2018
Slide 1: September Quarter 2018 Investor Update
September Quarter 2018 MGX Investor Update 24 October 2018
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: Corporate Overview
Mount Gibson Iron Corporate Overview • Issued capital 1,128.4 million shares • Market capitalisation A$536 million (at $0.475/share, 22 October 2018) • Cash and investments A$452 million (30 September 2018) • Borrowings Nil (30 September 2018) • Index ASX All Ordinaries Shareholder Distribution (% i
Slide 4: Business Overview
Mount Gibson Iron Business Overview Koolan Island • Australia’s highest grade DSO hematite mine provides direct exposure to increasing high grade premium. • Ore Reserves upgraded to 21.0Mt @ 65.5% Fe.* • Seawall seepage barrier completed July 2018, dewatering progressing to plan. • Project now +88%
Slide 5: September Quarter 2018 Overview
September Quarter 2018 Overview (All figures are expressed in Australian dollars unless stated otherwise) Quarterly product sales of 1.1 Mwmt* for revenue of $65 million Free on Board (FOB). Underlying operating cashflow of $18 million before Koolan Island restart expenditure of $23 million in t
Slide 6: Mid-West Extension Hill & Iron Hill
Mid-West Extension Hill & Iron Hill • Forecast FY2019 Iron Hill DSO sales of 2.0-2.3 Mwmt at projected site cash costs^ of $38-42/wmt FOB. • Iron Hill sales of 1.1 Mwmt at site cash cost of $37/wmt FOB^ in September 2018 Quarter. • Mining on track for completion in late 2018, ore sales to conclude i
Slide 7: Koolan Island Mine Restart: A premier high grade iron ore opportunity
Koolan Island Mine Restart A premier high grade iron ore opportunity Koolan Island located in Yampi Sound in the Buccaneer Archipelago 1km off the northern Kimberley coast of Western Australia approximately 140 kilometres north of Derby. N Main Pit One of the world’s premier high grade hematite Se
Slide 8: An unrivalled high grade hematite deposit
Koolan Island Mine Restart An unrivalled high grade hematite deposit • High grade hematite (65.5% Fe). • Very low contaminants (P, Al). • Well understood orebody, consistent grade and width. • Well understood mining characteristics. • Ore Reserves upgraded April 2018, extending mine life to 2023.* •
Slide 9: High grade premium is a game changer
Koolan Island Mine Restart High grade premium is a game changer Iron Price (US$/dmt CFR North China) HG Premium / LG Discount 120 (% per dmtu relative to 62% index) 50% 100 40% 80 30% 20% 60 10% 40 0% -10% 20 -20% -30% 0 -40% -50% 65% 62% 58% HG Premium LG Discount Koolan Island will be Australia’s
Slide 10: Forecast Operational Profile
Koolan Island Mine Restart Forecast Operational Profile Operating Year 21 Mt Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 (from production commencement) Total Ore Mined (Mt) 2.9 1.9 5.1 7.4 4.0 - 21.3# Waste Mined (Mt) 19.1 20.5 16.3 8.8 2.7 - 67.5 Total Movement (Mt) 22.0 22.4 21.4 16.3 6.7 - 88.8 Str
Slide 11: Project Schedule
Koolan Island Mine Restart Project Schedule • Project +88% complete overall. • On track for first ore sales late in March 2019 Quarter. • Seawall embankment construction commenced June 2017, completed September 2017. • Concrete seepage barrier completed in July 2018. • Dewatering and footwall refurb
Slide 12: Dewatering progressing to plan
Koolan Island Mine Restart Dewatering progressing to plan Main Pit dewatering and footwall refurbishment progressing, October 2018 Main Pit October 2017 12
Slide 13: Dewatering progressing to plan
Koolan Island Mine Restart Dewatering progressing to plan Re-profiling of central inner seawall, looking west, October 2018 Starter embankment before closure of breach , July 2017 13
Slide 14: Footwall refurbishment
Koolan Island Mine Restart Footwall refurbishment Shotcreting of Main Pit Footwall, October 2018. Barge-mounted shotcreting equipment in Main Pit 14
Slide 15: Main Pit footwall refurbishment
Koolan Island Mine Restart Main Pit footwall refurbishment Avalanche mesh installation on Avalanche mesh installation on footwall, October 2018 footwall, July 2018 15
Slide 16: Site infrastructure and mining fleet
Koolan Island Mine Restart Site infrastructure and mining fleet Koolan Island Shiploader Mining fleet on-site at Koolan Island Koolan Island jetty and shiploader Crushing facility & stockpile yard 16
Slide 17: FY2019 Business Objectives
Mount Gibson Iron FY2019 Business Objectives • Mid-West operations – complete mining and sales from the Iron Hill operation and transition the Mid West operations to closure in early 2019. • Koolan Island – conclude pit dewatering and commence production as scheduled in order to achieve first ore sa
Slide 18: Summary
Mount Gibson Iron Summary • High Grade Koolan Island Restart Project represents a compelling investment that capitalises on the structural shift in favour of high grade iron ores. • MGX is the only Australian producer that will provide investors with direct exposure to cashflows from sales of high g
Slide 19: September Quarter 2018 MGX
September Quarter 2018 MGX Investor Update 24 October 2018
Slide 20: Supplementary Information: Mineral Resources and Ore Reserves at 30 June 2018
Supplementary Information Mineral Resources and Ore Reserves Information at 30 June 2018 Koolan Island Total Group Mineral Resources and Ore Reserves at 30 June 2018 Tonnes Fe SiO2 Al2O3 P (above 50% Fe) millions % % % % Mineral Resources, above 50% Fe Tonnes Fe SiO2 Al2O3 P Measured 3.71 60.2 13.29