Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Global Iron Ore & Steel Forecast Conference 2020
23 slides from Mgx Resources's conference presentation, Dec 1, 2020
Slide 1: Exporting Australia's highest grade direct shipping iron ore
Mount Gibson Iron Limited Exporting Australia’s highest grade direct shipping iron ore For personal use only MGX Global Iron Ore & Steel Forecast Conference 1 December 2020
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
Business Overview For personal use only Kimberley Region Koolan Island • Australia’s highest grade direct shipping ore (DSO) hematite iron ore mine, with Ore Reserves of 18.7 Mt grading 65.2% Fe*. • Ore sales guidance of 1.8-2.1 Mwmt for FY2021. • Waste stripping investment phase in next 12 months.
Slide 4: Corporate Overview
Corporate Overview For personal use only MGX Share Price Issued shares 1,186 million shares 1.40 Share Price (A$/share) 1.20 Market capitalisation A$890 million ($0.75/share) 1.00 Cash/investments A$445 million (30 September 2020) 0.80 0.60 Bank Borrowings Nil 0.40 Index ASX-300 0.20 Dividends A$309
Slide 5: 2019/20 Financial Year in brief
2019/20 Financial Year in brief (Year ended 30 June 2020; all currency in Australian dollars unless stated otherwise) For personal use only • Total iron ore sales of 4.9 million wet metric tonnes (Mwmt), comprising 2.3 Mwmt of Koolan Island high grade fines and 2.6 Mwmt of Mid-West low grade materia
Slide 6: Positive start in September 2020 Quarter
Positive start in September 2020 Quarter For personal use only • Total iron ore sales of 1.4 Mwmt comprising: - 0.7 Mwmt of Koolan Island high grade fines. - 0.7 Mwmt of Mid-West low grade material. • Group cashflow of $32 million. • Group unit cash costs of $56/wmt before Koolan Island advanced was
Slide 7: Market Conditions
Market Conditions Iron Ore Pricing For personal use only Iron Ore Price (US$/dmt CFR North China) • Prices across all product types have remained elevated 160 140 on the back of strong Chinese demand for steel, and 120 ongoing mine supply disruption. 100 80 60 • Brazilian supply adversely impacted b
Slide 8: Australia's highest-grade DSO iron ore mine
Koolan Island Australia’s highest-grade DSO iron ore mine For personal use only Main Pit looking west, August 2020 8
Slide 9: A premium quality orebody
Koolan Island A premium quality orebody For personal use only Koolan Main Pit - Mineral Resources and Ore Reserves WA DSO Iron Ore Fines Tonnes Fe SiO2 Al2O3 P millions % % % % Comparative Iron and Phosphorus Mineral Resources, reported above 50% Fe Measured 2.7 60.1 13.40 0.34 0.007 66 Indicated 30
Slide 10: Positive start to FY2021
Koolan Island Positive start to FY2021 For personal use only • Progressing through waste stripping investment phase of the life-of-mine Kamsarmax-class vessel Super Grace being loaded, April 2020. plan, with ore production and cashflow to rise significantly from FY2022. • Ore sales guidance of 1.8–2
Slide 11: Site layout
Koolan Island Site layout For personal use only Koolan Island is located in Yampi Sound in the Buccaneer 1km Archipelago off the northern Kimberley coast of Western Australia, approximately 140 kilometres north of Derby. N Existing Airstrip Seawall Mangrove deposit (approximate) Western Australian M
Slide 12: Main Pit Operations
Koolan Island Main Pit Operations Looking west over mining operations in eastern end of Main Pit, November 2020. For personal use only 12
Slide 13: Crushing & Shiploading
Koolan Island Crushing & Shiploading ROM stockpiles, crushing plant and shiploader, September 2020 For personal use only 13
Slide 14: New Airstrip Operational
Koolan Island New Airstrip Operational For personal use only Completed airstrip, looking west, August 2020 14
Slide 15: New Airstrip Operational
Koolan Island New Airstrip Operational For personal use only First FIFO crew service landing, 14 October 2020 Official opening of Laawun Airport, 26 November 2020 15
Slide 16: Mine life extension targets
Koolan Island Mine life extension targets For personal use only • Numerous opportunities for incremental life extension beyond the current 5 year mine life. • Main Pit – existing resources and development potential along strike, to the west and east. • Mangrove deposit, adjacent to crusher/ROM pad,
Slide 17: Mid-West Operations
Mid-West Operations Long-Standing Production Presence For personal use only Shine 17
Slide 18: Extension Hill Low Grade Sales Program
Mid-West Operations Extension Hill Low Grade Sales Program For personal use only • FY2020 low grade sales totalled 2.6 Mwmt, versus initial Reclamation of low-grade stockpiles sales target of 1.0Mwmt. • Site operating cashflow of $22 million for FY2020 including rail credit refund of $8 million. • L
Slide 19: Shine Iron Ore Project
Mid-West Operations Shine Iron Ore Project For personal use only • Staged development plan to align with market conditions, targeting first shipments in mid-2021. • Ore Reserves of 2.8Mt @ 59.4% Fe* in Stage 1 Pit. • Initial two-year mine life at circa 1.5Mtpa. Shine Project area • Indicative develo
Slide 20: MGX – Part of our Communities
MGX – Part of our Communities (statistics as at 30 September 2020) For personal use only • Local employment - we seek to increase employment from our local communities. At Koolan Island, over 20% of our employees reside in Derby, Broome and surrounds. • Gender diversity - women account for 18% of ou
Slide 21: 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. • Profitable, with a disciplined pathway to significantly higher sales and cashflows at Koolan Island. • Mid-West low grade sales further
Slide 22: Mount Gibson Iron Limited
Mount Gibson Iron Limited For personal use only MGX Presentation authorised by Peter Kerr Chief Executive Officer Mount Gibson Iron Limited +618 9426 7500 www.mtgibsoniron.com.au
Slide 23: Supplementary Information
Supplementary Information Mineral Resources and Ore Reserves Information at 30 June 2020 For personal use only Koolan Island Tonnes Fe SiO2 Al2O3 P Total Group Mineral Resources and Ore Reserves at 30 June (above 50% Fe) millions % % % % Mineral Resources, above 50% Fe Tonnes Fe SiO2 Al2O3 P Measure
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