Mgx Resources Limited · ASX:MGX

Mgx Resources — Mount Gibson Iron — 2nd Earth's Resources Conference 2012

15 slides from Mgx Resources's conference presentation, Jun 21, 2012

  1. Slide 1: Mount Gibson Iron Limited – 2nd Earth's Resources Conference

    MOUNT GIBSON IRON LIMITED For personal use only 2nd Earth’s Resources Conference Hong Kong, June 2012 1

  2. 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

  3. Slide 3: Company overview

    Company overview For personal use only Australia based multi-operation quality hematite iron ore producer exporting to China • Leadership renewal …... Board and Management • Quality assets …………………. Optimising existing opportunities • Financial position …….….. Strong balance sheet and cash flow gener

  4. Slide 4: Company overview

    Company overview For personal use only Currently Australia’s fifth largest iron ore exporter by volume • Issued capital 1085.5 million shares, 2 million options • Market cap1 A$944 million • Cash @ 31 Dec 2011 A$421 million • Total debt2 nil • Index S&P/ASX 200 • Finance facilities A$115m (equipment

  5. Slide 5: Leadership renewal

    Leadership renewal For personal use only Board – Renewal well underway with mining, construction and M&A experience • Geoffrey Hill - Chairman • Russell Barwick • Paul Dougas • Alan Jones • Li Shaofeng • Chen Zhouping • Lee Seng Hui • Simon Bird Management – Senior executive skills base being broade

  6. Slide 6: Optimising existing opportunities

    Quality assets – optimising existing opportunities For personal use only Koolan Island – up to 4 Mtpa production • Reserves 32.1 Mt at 64% Fe, low contaminants (at 30 June 2011) • Commenced mining premium Main Pit ore in November 2011 • Planning underway to define pathway from ~3Mtpa to ~4Mtpa • Tra

  7. Slide 7: Koolan Island

    Quality assets - Koolan Island For personal use only • Mount Gibson’s flagship asset • Premium products • Simple logistics – no rail, standalone shiploading facilities • Remaining mine life of ~8years at ~3Mtpa • Detailed planning underway to define pathway to ~4Mtpa • Transition to owner mining com

  8. Slide 8: Koolan Island

    Quality assets - Koolan Island For personal use only • Main Pit the mainstay of Acacia East production (planned) East Pit Mullet Acacia (completed) • Seawall complete late 2011 • Main Pit mining commenced late 2011 Barramundi (completed) • Mining currently focused in western end of Main Pit Main Pit

  9. Slide 9: Mid-West

    Quality assets – Mid-West For personal use only 9

  10. Slide 10: Geraldton Port

    Quality assets – Geraldton Port • Port facility upgrades For personal use only completed May 2012 • Significantly reduces rail/shipping constraints • MGI nominal export capacity doubled to 6Mtpa • Rail unloader commissioning and ramp-up commenced mid- Rail Unloader May 2012 • Nominal rail unloader c

  11. Slide 11: Extension Hill

    Quality assets – Extension Hill For personal use only • First ore sales December 2011 • Diversified customer base (Glencore, Rizhao Steel) • Simple, low cost operation, life of mine strip ratio ~1:1 • Strong cash generator • Significant stockpiles built up during port/rail works 4 • ~5 year life at

  12. Slide 12: Tallering Peak

    Quality assets – Tallering Peak For personal use only • Mining scheduled for completion in mid 2013 • Targeting ~2.5Mt production in FY’13 • Heritage approval granted to access T1 prospect • 50 hole RC drilling program at T1 underway • Potential 3-9 months T1 additional production at T1 • Shipping f

  13. Slide 13: Strategy – Positioning for Growth

    Strategy – Positioning for Growth Optimising existing business, getting set for M&A and exploration-driven growth For personal use only PRIORITIES • Build up and establish new executive team • Optimise existing assets to maximise cash generation • Reinvigorate the exploration strategy in footprint a

  14. Slide 14: Summary

    Summary Disciplined business strategy For personal use only Mount Gibson has…  First mover status & access to Strong cash flow generation existing infrastructure  Proven operational  Established DSO products performance  Growing FY2013 production profile  Divested high risk, high cost Clean & s

  15. Slide 15: Attributions

    Attributions For personal use only The information in this report relating to Mineral Resources is based on information compiled by Rolf Forster, who is a member of the Australasian Institute of Mining and Metallurgy. Rolf Forster is a consultant to Mount Gibson Mining Limited, and has sufficient ex

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