Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — FY2016 Earnings Presentation
14 slides from Mgx Resources's earnings presentation, Aug 17, 2016
Slide 1: FY2016 Financial Results
FY2016 Financial Results For personal use only MGX Investor Presentation 17 August 2016
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: FY2016 Overview
FY2016 Overview (All figures are expressed in Australian dollars unless stated otherwise) For personal use only Underlying $19.4 million gross profit1 comprising an underlying $13.4 million gross profit from continuing operations after administration and finance costs, and a profit of $6.0 million
Slide 4: Profit: A solid performance in a challenging year
FY2016 Profit A solid performance in a challenging year Year Year For personal use only Group Summary Results ended ended 30 June 30 June 2016 2015 Ore tonnes sold1 M wmt 5.0 5.8 Average realised price, all products1 (FOB) $/wmt 48.4 55.6 Consolidated sales revenue1 $m 240.5 324.6 Continuing Operati
Slide 5: Cash, Term Deposits & Liquid Investments
FY2016 Cash, Term Deposits & Liquid Investments For personal use only 5
Slide 6: A solid performance in a challenging year
FY2016 A solid performance in a challenging year For personal use only 12 months ended 30 June: 2016 2015 Sales Volume (Mwmt) 5.0 5.8 Sales Revenue (A$m) 240 325 Realised FOB Price (A$/wmt sold, incl. penalties & FX hedging) 48 56 Cost Breakdown (continued operations) A$m A$/wmt sold A$m A$/wmt sold
Slide 7: FY2017 Outlook
FY2017 Outlook Continued focus on cash margins and cost reductions For personal use only Sales Guidance: − Mid West/Extension Hill sales of 2.8 - 3.1 million tonnes in FY2017. − Extension Hill to contribute ~2.0Mt of standard DSO. − Remainder to comprise mix of Iron Hill and/or Extension Hill low gr
Slide 8: Extension Hill
Extension Hill Low-capital sales platform • For personal use only All-in site cash cost^ of $46/wmt FOB in FY2016. • Extension Hill pit scheduled for completion early in N December 2016 quarter, sales to continue to early 2017. • Iron Hill Deposit, 3km south of current pit, offers significant potent
Slide 9: Koolan Island
Koolan Island Continued value extraction in FY2016 For personal use only • Acacia East satellite pit mining campaign Acacia East commenced in early 2015 and was satellite pit completed February 2016. • Total Acacia East production of 2.2Mt achieved vs original target of 1.2Mt. • Cash generative with
Slide 10: Koolan Island Future Potential
Koolan Island Future Potential For personal use only • Seawall insurance claim progressing: $86m property damage settlement agreed, all funds received by end-July 2016. No restrictions on deployment of settlement proceeds. Business interruption component of claim progressing with the insurers.
Slide 11: Summary
FY2016 Summary For personal use only MGX continues to generate strong performance and has real upside potential on multiple fronts: • Proven cost reduction capability – all-in group cash costs reduced 26% in FY2016. • Proven ability to generate positive operating cashflow in a low price environment.
Slide 12: FY2015 Financial Results
FY2015 Financial Results For personal use only MGX Investor Presentation 17 August 2016
Slide 13: Supplementary Information
Supplementary Information Business is positioned for upside For personal use only Koolan Island • Acacia East satellite pit completed in February 2016. • Transitioned to care and maintenance in the June 2016 quarter. • Evaluation of Main Pit seawall rebuild options underway. • Progression of the Bus
Slide 14: Appendix – Reserves and Resources
Appendix – Reserves Supplementary information and Resources Mineral Resources and Ore Reserves at 30 June 2015* Total Group Mineral Resources and Ore Reserves at 30 June 2015 For personal use only Koolan Island Tonnes Fe SiO2 Al2O3 P millions % % % % Tonnes Fe SiO2 Al2O3 P (above 50% Fe) Mineral Res