Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Shareholder Meeting (November 2018)
18 slides from Mgx Resources's shareholder meeting presentation, Nov 14, 2018
Slide 1: Annual General Meeting 2018 CEO Presentation
Annual General Meeting 2018 For personal use only MGX CEO Presentation 14 November 2018
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: Corporate Overview
Mount Gibson Iron Corporate Overview For personal use only MGX Share Price (last 12 months) $0.70 Issued capital 1,128.4 million shares $0.60 $0.50 Market capitalisation A$660 million (at $0.585/share, 13 Nov 2018) $0.40 Cash and investments A$452 million (30 September 2018) $0.30 Borrowings Nil $0.
Slide 4: Business Overview
Mount Gibson Iron Business Overview For personal use only 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 pla
Slide 5: September Quarter - Recap
September Quarter - Recap Strong start to FY2019 For personal use only 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 $23 million in the quarter. Cash and liquid inves
Slide 6: A premier high grade iron ore opportunity
Koolan Island Mine Restart A premier high grade iron ore opportunity For personal use only Koolan Island located in Yampi Sound in the Buccaneer Archipelago 1km off the northern Kimberley coast of Western Australia approximately 140 kilometres north of Derby. N Main Pit Seawall One of the world’s
Slide 7: An unrivalled high grade direct shipping hematite deposit
Koolan Island Mine Restart An unrivalled high grade direct shipping hematite deposit For personal use only • High grade hematite (65.5% Fe). • Low contaminants (P, Al, Si). • Well understood orebody, consistent grade and width. • Well understood mining characteristics. • High grade price premium cur
Slide 8: High grade premium is significant
Koolan Island Mine Restart High grade premium is significant For personal use only Iron Ore Price HG Premium / LG Discount (US$/dmt CFR North China) (% per dmtu relative to 62% index) 120 50% 40% 100 30% 80 20% 10% 60 0% Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oc
Slide 9: Forecast Operational Profile
Koolan Island Mine Restart Forecast Operational Profile For personal use only 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
Slide 10: Dewatering progressing to plan
Koolan Island Mine Restart Dewatering progressing to plan For personal use only Main Pit October 2017 Main Pit dewatering and footwall refurbishment progressing, mid October 2018. Water level now down ~24 metres. 10
Slide 11: Dewatering progressing to plan
Koolan Island Mine Restart Dewatering progressing to plan For personal use only Starter embankment before closure of breach , July 2017 Re-profiling of central inner seawall nearing completion, looking south-west, end October 2018 11
Slide 12: Dewatering progressing to plan
Koolan Island Mine Restart Dewatering progressing to plan For personal use only Shotcreting barge Geotech drilling barge Starter embankment before closure of breach , July 2017 Final stages of inner seawall re-profiling, looking west, late October 2018 12
Slide 13: Main Pit footwall refurbishment – shotcreting & meshing
Koolan Island Mine Restart Main Pit footwall refurbishment – shotcreting & meshing For personal use only Avalanche mesh installation on Avalanche mesh installation on footwall, October Shotcreting footwall and avalanche 2018 mesh installation on Main Pit footwall, November 2018 footwall, July 2018 1
Slide 14: Site infrastructure and mining fleet
Koolan Island Mine Restart Site infrastructure and mining fleet For personal use only Koolan Island Shiploader Mining fleet on-site at Koolan Island Koolan Island jetty and shiploader Crushing facility & stockpile yard 14
Slide 15: FY2019 Business Objectives
Mount Gibson Iron FY2019 Business Objectives For personal use only • 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 t
Slide 16: Summary
Mount Gibson Iron Summary For personal use only • 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 cashflow
Slide 17: Annual General Meeting 2018
Annual General Meeting 2018 For personal use only MGX 14 November 2018
Slide 18: Supplementary Information: Mineral Resources and Ore Reserves
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 For personal use only Tonnes Fe SiO2 Al2O3 P (above 50% Fe) millions % % % % Mineral Resources, above 50% Fe Tonnes Fe SiO2 Al2O3 P Me
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