Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Global Iron & Steel Forecast Conference (February 2006)
31 slides from Mgx Resources's conference presentation, Feb 24, 2006
Slide 1: Established and Expanding
Established and Expanding AJM
Slide 2: Disclaimer
Disclaimer 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 approvat from Mount Gibson Iron Limited. This Document is not a Prospectus nor an Offe
Slide 3: Existing Operations, Financial Performance, Growth Potential
e Existing Operations ¢ Financial Performance ¢« Growth Potential 3 23/02/2006
Slide 4: Mount Gibson Iron Limited Operations Video
Mount Gibson Iron Limited Operations Video Mount Gibson Iron 4 23/02/2006
Slide 5: 5 23/02/2006
5 23/02/2006
Slide 6: Direct Shipping Grade Hematite
Direct Shipping Grade Hematite Tallering Peak ee oe ¢ First hematite SR soa jen ore shipped ; Feb 2004 ¢ 2004/05 - 1.84 £ Eo million tonnes i Ee a aoe produced ee ; ¢ Current production 2.0 Mtpa = rowiite 18 a eae of saaentn Ci Bean pane ¢ 70% Lump & pont ee |e 30% fines ratio ie ° 6: 1 Life of Mine
Slide 7: Direct Shipping Grade Hematite
Direct Shipping Grade Hematite « Excavator - truck - crush & screen operation ¢ Cut back of starter pits commenced January 2006 e« 3 Mtpa rates achieved in second half of 2006 e Rail and port contra Rig” - [wea access secured e Further exploration upside with a cut back to T5 likely 889006 BEREOO 35
Slide 8: Tallering Peak Site Layout
Tallering Peak Site Layout Waste 0 ; y T4 Waste Sump
Slide 9: Financial Performance
Siryed iota eto; robe ye BPS) Law £ yw dt Papas PLD ee ah me BO Bah FELD e Financial Performance J a 9 23/02/2006
Slide 10: Performance
Performance e Increased production e Increased sales e Increase asset base e Increased profit e Increased cash generation e Clean balance sheet and no significant debt e Strong cash balance 10 23/02/2006
Slide 11: Performance
Performance fudieds. ORESOLD Nats 20 Wace i ii ede ORE MINED 30K oY OEG 2064 2004 4 MONTHS ENDEE: = i 4 z ee 10 eel acy * I wl Si DEG JOJUN st DEC WwJEN at BEG 30.J0K 31 DEC 2008 2004 2004 2005 2003 2004 2004 @ MONTES ENDED: 6 MONTHS ENDED vee “asa. EARNINGS PER SHARE Andinds NET PROFIT AFTER TAX Fr
Slide 12: Performance
Performance Pv EBITDA PER SHARE Meas oenoiten sal IONS 88) Si snomia BETA PEP EHARE (FSi ira iene oi ncRNA 30 JUN $1 bet 3003 «= 200d = 2008 3004 30nd GMONTHS ENDED BMONTIS ENDRD Medfinds. CASH FROM OPERATIONS PER SHARE Aedes. CASH FROM OPERATIONS ASHE ue, vie 2 2 & & 2 5 = s & BEDEG 28 SUN DFE SDB
Slide 13: Performance
Performance TARLIGNS (8) at DEC 2003 Aidiate. TOTAL ASSETS faeanoreese be A ‘Sulit ; 1 08C 26042004 € MONTHS ENDED ® BME. LIONS SB RBHBESHESB wMiedinds. NET ASSETS & SHAREHOLDERS FUNDS Hheunl Bren kor ORC 2003 030n kighce 2004 2004 SO MONTHS ENDED ET ASSET VALUE PER SHAGE (293 ye NET ASSET VALUE PER
Slide 14: Growth Potential
¢« Growth Potential 14 23/02/2006
Slide 15: Growth Strategy
Growth Strategy ¢ Growth will be incremental and sensibly managed: Increase hematite production at Tallering Peak Develop hematite resource at Mount Gibson commencing with Extension Hill hematite Leverage from Chinese approval to construct a pellet plant at Longtan Maximise value of the extensive Mo
Slide 16: Extension Hill Hematite - Outstanding Opportunity
Extension. Hill Hematite - Outstanding Opportunity LLDPLADPDDDIII ES if DRE EXTENSION HILL SECTION 115258 « 100% Mount Gibson Mining Limited ¢ Strip ratio less than 1:1 ¢ Outstanding exploration upside « Low capital cost « Pre-feasibility by June 2006 * Targeting commencement of hematite operations
Slide 17: Extension Hill Magnetite Project & Longtan Pellet Plant
Extension Hill Magnetite Project & Longtan Pellet Plant e Construction costs differ substantially for each project e Construction schedules vary significantly e Project risks vary significantly 17 23/02/2006
Slide 18: Extension Hill Magnetite
Extension Hill Magnetite . Feasibility completed Produce 5 Mtpa magnetite tage } ‘ t i oo Rae concentrate (68% Fe) N: i : 5 : : 50% of concentrate sold to JV partner for feed to their blast furnaces and 50% delivered to Asia lron’s (71% MGI and MGM) pellet plant at Longtan Mine life approx 20 years
Slide 19: Mount Gibson Locality
Mount Gibson Locality \ ‘Magnetic Signature \ N ‘ 59-339, aoa Gageaa 56-609 mg-01-118.dge 23/02/2006
Slide 20: Extension Hill Geological Section
Extension Hill Geological Section oe at gh Mount Gibson iron Weathered Zone Transition Zone mt Classification | Tonnes Recovery %: Conc Fe % | Cone Sid. % 46.4% 69.2% 42% Mg EXTENSION HILL mo-Ot-t20.dan
Slide 21: Extension Hill Site Layout
Extension Hill Site Layout 760 1000m fF a aioe y , 60 ) 4, Co-located Waste Dump/ ‘ f Dry Tallings Storage Facility SEE Henvailte Conveyor We
Slide 22: Outstanding High Quality Resource
Outstanding High Quality Resource PERCENT 0 - emeaoregs 2967 Samples vy Extension Hill Sampfe Data Mount Gibson Iron: meth1-149.den
Slide 23: Pellet Production
Pellet Production ' i : . PEOPLE'S REPUBLIC OF CHI \__eYangtze aad Mills and Discharging Ports YELLOW SEA JIANGSU eed i popes —— : . Klemeties Nanjing @HEISHAN ‘@MA'ANSHAN ¢ BHANGHA Majishan ‘3 fae constecion?) cg oie 3044 Beilun @ (Ningbo) “%S read ’ ZHEJIANG @200 DWT @ CAPE SIZE (PART DISCHARGED)
Slide 24: Nanjing Pellet Plant
Nanjing Pellet Plant e Capacity of 2.5 Mtpa itabira Fines versus Nibrasco Pellets for Japan blast furnace grade pellets ° Location advantages: Reduce shipping costs - Expanding steel making region - Located at a new port - Lower capex and opex than Australia - Skilled workforce available - Nanjing a
Slide 25: Exploration & Joint Ventures
Exploration & Joint Ventures e« Hematite focus - Tallering Peak - Mount Gibson - Koolanooka South - Walebing ¢ Outstanding real estate at the best address - Earning 60% of Poondano Exploration’s 2,500+ km2 in Pilbara (shallow pisolite deposits & Marra Mamba style deposits - significant targets adjac
Slide 26: Pilbara Tenement Area
Pilbara Tenement Area 9 ‘Bakers SathO pe Downs Silas Ba
Slide 27: Joint Venture & Optioned Leases with Geology
Joint Venture & Optioned Leases with Geology rt Sette. 1 ¢ 780.806 spot Raitvay FL4.G Raley Hope Downs Raiwoy seer Drainage Alnsviure > Recent Lower Wyleo Grourt Formations Tonosnsnt Holdoss ‘fMft Bruce Supergroup vn & Jeetinah Fomeation ESET} Geren Fostescue Graup below Jeerinah Formation EEABB} Ta
Slide 28: East Newman Project Area
East Newman Project Area eae ae ea ay Pisolite: Foandarra Exmoration Pry Lid EESEND. . ry E47/4392, 1393 LJ Poondens exsloration tenement Geology 5 8 5 16 (27 indcpender ce Croup terement Ee CYS err Kilometers en _cewanss [eee Seale: 3:24 000 Pease a Bee FRojoan SextemmeS Jone eo 28 23/02/2006
Slide 29: Wonmunna Lease & Drilling Targets
Wonmunna Lease & Drilling Targets iy a Poondang Expiuraiion Pty Lid Location LEGEND Mee. N 47/4137 ‘pia TSF ceoondone Sploration tonoment Geotogy a 5 # s we EI inoopandonce Group anement Te oO Kitometers: apes armen bs Sooke: §:286 dod 29 23/02/2006
Slide 30: Wonmunna Lease & Current Drilling
Wonmunna Lease & Current Drilling aie POR Pie Le 7 ne oe aa ie ea Be Oe ie : Nell a ISSO ir Si0,, 2.69% ALO, & 0.077% P ‘ 0 1 2 Paondano Exploration Ptyttd Wonnamunna 847/137 Drifting Teen Tipmetere Scale: 1:80.00 - Current drilling area EZ 30 23/02/2006
Slide 31: Summary
Summary e Mount Gibson is an established and expanding iron ore producer e Building internal capacity and capability e Strong cash reserves e Enjoys long term access agreements to services and infrastructure e Positioned to springboard from current market conditions ¢ Project pipeline underwrites gr
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