Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Noosa Mining and Exploration Investor Conference 2019
17 slides from Mgx Resources's conference presentation, Jul 18, 2019
Slide 1: Mount Gibson Iron – Exporting Australia's highest grade direct shipping iron ore
Mount Gibson Iron Exporting Australia’s highest grade direct shipping iron ore For personal use only MGX Noosa Mining and Exploration Investor Conference 18 July 2019
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 – Long-standing mid-tier iron ore producer
Mount Gibson Iron Business Overview – Long-standing mid-tier iron ore producer For personal use only Koolan Island • Australia’s highest grade direct shipping (DSO) hematite iron ore mine. • Ore Reserves of 21.0Mt @ 65.5% Fe, for 6 year mine life.* • Seawall seepage barrier completed July 2018. • Or
Slide 4: Corporate Overview
Mount Gibson Iron Corporate Overview For personal use only MGX Share Price (Last 12 months, A$) Issued capital 1,130.1 million shares 1.40 Market capitalisation A$1.1 billion ($0.935/share) 1.20 1.00 Cash/investments A$385 million (30 June 2019) 0.80 Borrowings Nil 0.60 Index ASX-300 (admitted 18 Ma
Slide 5: A premier high grade iron ore opportunity
Koolan Island A premier high grade iron ore opportunity For personal use only To China Koolan Island located in Yampi Sound in the Buccaneer 1km Archipelago off the northern Kimberley coast of Western Australia approximately 140 kilometres north of Derby. N Main Pit One of the world’s premier high
Slide 6: The birthplace of Western Australia's iron ore industry
Koolan Island The birthplace of Western Australia’s iron ore industry For personal use only • “Iron Islands” of Yampi Sound a source of ships’ ballast in 19th Century. • 1907 - first commercial mining operation attempted on Koolan Island. • 1938 – mine closed due to Commonwealth embargo on iron ore
Slide 7: A unique high-grade hematite mine
Koolan Island A unique high-grade hematite mine Main Pit, looking west, June 2019. For personal use only Main Deposit - Ore Reserves Ore Reserves reported above 50% Fe Fe SiO2 Al2O3 Phos Category Mt % % % % Proved 0.1 63.4 7.25 1.11 0.013 Probable 20.9 65.5 4.53 0.88 0.012 Total 21.0 65.5 4.54 0.88
Slide 8: A premium product – Iron and Phosphorous comparison
A premium product Koolan Island moves MGX up the quality curve For personal use only WA DSO Iron Ore Fines – Comparative Iron and Phosphorous 66 MGX Koolan Island Main Pit 65 64 63 62 MGX Mid West 2018 Fe % 61 60 59 58 57 56 0 0.02 0.04 0.06 0.08 0.1 0.12 0.14 P% Sources: Mount Gibson Iron, public/c
Slide 9: A premium product – Iron and Alumina comparison
A premium product Koolan Island moves MGX up the quality curve For personal use only WA DSO Iron Ore Fines – Comparative Iron and Alumina 66 MGX Koolan Island Main Pit 65 64 63 62 MGX Mid West 2018 Fe (%) 61 60 59 58 57 56 0.75 1.25 1.75 2.25 2.75 3.25 3.75 Al2O3 (%) Sources: Mount Gibson Iron, publ
Slide 10: Iron Ore Market outlook
Iron Ore Market outlook Iron ore pricing remains well supported For personal use only Iron Ore Price HG Premium / LG Discount (US$/dmt CFR North China) (% per dmtu relative to 62% index) 160 50% 140 40% 120 30% 100 20% 80 10% 0% 60 Jul-16 Jul-17 Jul-18 Jul-19 Jan-16 Jan-17 Jan-18 Jan-19 Oct-16 Oct-1
Slide 11: Operational Profile – Feasibility Study Mine Plan (2018)
Koolan Island Operational Profile – Feasibility Study Mine Plan (2018) For personal use only Operating Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total (from sales commencement) 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.
Slide 12: Mining and ore production ramping up
Koolan Island Mining and ore production ramping up For personal use only Koolan crushing and screening plant, and stockpile yard, July 2019 12
Slide 13: Production ramp-up progress, June 2019 Quarter
Koolan Island Production ramp-up progress, June 2019 Quarter For personal use only High grade DSO shipments commenced April 2019. 0.4 Mwmt @ 65% Fe sold in June Quarter, each cargo worth $9-10M at today’s prices. Average realised sale price of US$106/dmt FOB in June quarter. Site cash cost ~
Slide 14: Mid-West – Extension Hill low grade sales program
Mid-West – Extension Hill Low grade sales program For personal use only • Prompted by the recent rise in iron ore prices, a program of low grade sales commenced in June 2019, with 0.24 Mwmt exported in the month. • Targeting 1 million tonnes over the next six months. • Mid-West business will then mo
Slide 15: 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. • Koolan Island sales ramping up and Mid West low grade sales underway, capitalising on buoyant iron ore market conditions. • Ability to
Slide 16: Mount Gibson Iron – Exporting Australia's highest grade direct shipping iron ore
Mount Gibson Iron Exporting Australia’s highest grade direct shipping iron ore For personal use only MGX Noosa Mining and Exploration Investor Conference 18 July 2019
Slide 17: Supplementary Information – Mineral Resources and Ore Reserves
Supplementary Information Mineral Resources and Ore Reserves Information at 30 June 2018 For personal use only Koolan Island Tonnes Fe SiO2 Al2O3 P millions % % % % Mineral Resources, above 50% Fe Measured 3.71 60.2 13.29 0.30 0.007 Indicated 38.23 65.1 5.48 0.65 0.013 Inferred 9.97 60.6 12.21 0.59
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