Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Shareholder Meeting (November 2006)
26 slides from Mgx Resources's shareholder meeting presentation, Nov 30, 2006
Slide 1: Mount Gibson Iron: Taking the next step
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 approval from Mount Gibson lron Limited. This Document is not a Prospectus nor an Offe
Slide 3: Highlights
Highlights e« Record profit « Market capitalisation has increased by in excess of 50% « Achieved record production rates « Record shipping rates expected in the December quarter « Increased reserves by 75% e Promising drill intersections along strike and adjacent to current operation « Completed the
Slide 4: Chinese monthly iron ore imports
Chinese monthly iron ore imports ¢30% growth year on year 30,000 — 25,000 + 20,000 + 2 15,000 + 10,000 + . sett 1999 2000 2001 2002 2003 2004 2005 2006 Source : TR 4 30/11/2006
Slide 5: Seaborne Trade
Seaborne Trade ‘06e 4 'O8F ‘10f (Mt) 5 30/11/2006
Slide 6: Main import countries
Main import countries China £6. v6. S6. 96. 26. 86. 66. 00. LO. ZO. £0. v0. $0. Source : UNCTAD 6 30/11/2006
Slide 7: Main iron ore export countries
Main Iron ore export countries 300 5 250 4 aD 200 - ; <a Australia = 1504 Leemronensern Brazil 100 4 a India 50 ne ~ South Africa (6) 1 T T 1 T 1 1 1 1 1 1 1 1 6 € #€ € 4 € € § S$ § S&S E F g Source : UNCTAD 7 30/11/2006
Slide 8: Supply x Demand - Seaborne Trade
Supply x Demand..- Seaborne Trade The seaborne trade may not be enough to satisfy the demand 800 - , 30% 700 4 p 25% L 20% 600 - Mt L 15% 500 4 . L 10% 400) . L 5% 300 4 / | ox 200 -5% Source: liS], TR 8 30/11/2006
Slide 9: Where is Mount Gibson Iron and Aztec located
Where is Mount Gibson Iron and Aztec located 9 30/11/2006
Slide 10: Mid West sites
Mid West sites gS on neaues: Egret * Tailering Peak Hematite 65 kan. Shiploading Facilities {60,000DWT) Three. y_ Springs. Hematite Extension Hill jron Hilt f SCALE 1: 1500 000 at Ad (AMG) Legend wees Hod Route ‘2 Bae Rail loule sates Pipeine Corridor 30/11/2006
Slide 11: Geraldton Port - Strategic position
Geraldton Port - Strategic position "Snel 1 S0m0 AS LeseWe = ork canary pokess Reads sm 2 Berth Lease Ares 8 Bane Steace ares 2 Benn & Commer Routes Bern 6 Comeper Rules awLives an Sidings wee Rah Uioater GERALOTON TowNSITE le Hest Tate ‘Unnaden Fades P| GERALDTON PORT LEASE AREA - ACCESS ROADS AND
Slide 12: Operations data
Operations data 12 30/11/2006
Slide 13: Direct shipping grade hematite
Direct shipping grade hematite south-we Tallering Peak e First hematite ore shipped Feb 2004 e Producing 3Mtpa « 65% Lump & 35% Fines ratio e Quality high grade low contaminant product (61.8% Fe, 4.51 SiO,, 2.15 ALO, & 0.03 P) 13 30/11/2006
Slide 14: Tallering Peak site layout
“Tallering Peak site layout. 5 Wat Dump her and ROM Pad T3 Mine Pit commodation Ca SE Td Wast Dung
Slide 15: Status of Tallering Peak mine development in December 2005
Status of Tallering Peak mine development in December 2005 looking south 30/11/2006
Slide 16: Tallering Peak T3b open pit design and progress
Tallering Peak. T3b open pit design and progress September 2006 looking south _ Access ral /11/2006
Slide 17: Tallering Peak open pit design and expected progress to September 2007
Tallering Peak-open pit design and expected progress to September 2007 ith 30/11/2006
Slide 18: Extension Hill hematite location
Extension Hill hematite location gS on neaues: Egret * Tailering Peak Hematite 65 kan. Shiploading Facilities {60,000DWT) Three. y_ Springs. Hematite Extension Hill jron Hilt f SCALE 1: 1500 000 at Ad (AMG) Legend wees Hod Route ‘2 Bae Rail loule sates Pipeine Corridor 30/11/2006
Slide 19: Extension Hill hematite desktop study
Extension Hill hematite desktop study ¢ Available resource for mining will be increased ¢ Operationally robust and straightforward e Low capital cost e Up to 3Mt production rate ¢ Low strip ratio - 1:1 or better ¢ Lump / Fines ratio of approximately 50:50 ¢ 60.7% Fe, 4.79 SiO,, 1.61 Al,O,, 0.06 P «
Slide 20: Extension Hill - 2006 interpretation
Extension Hill - 2006 interpretation LLL ———— eee . i ss si) 7. en) re a ce Ni es a i ii one E : KK Kh ie il OOT_OETE_ Xi Tilt 30/11/2006
Slide 21: Extension Hill hematite mine layout
Extension Hill hematite mine layout
Slide 22: Extension Hill hematite desktop results
Extension Hill hematite desktop results « Capital expenditure $67M e Average LOM Cash cost $34/t e NPV S106M e IRR 115% « EBITDA $281M e All estimates are based on the level of accuracy provided by desktop evaluation e Feasibility study due for completion by year end 22 30/11/2006
Slide 23: Recent evolution—Mount Gibson's current profile
Recent evolution—Mount Gibson’s current profile Investor Key themes understanding Contention Inde Mount Gibson pursues hematite strategy allowing it to Benelits of this include low level of contaminants in io to be maintained until 201 2) pricng of 18) ce Fleas Peak provides cash flow certainty by i
Slide 24: Determining the broader strategic direction
Determining the broader strategic direction There are three strategies which Mount Gibson could potentially pursue from an acquisition perspective Diversified strategy 24 30/11/2006
Slide 25: Summary
Summary « Mount Gibson Iron - has retained and enhanced its first mover status - is growing production - enjoys long term access agreements to services and infrastructure - is focusing on accretive low risk assets - has excellent leverage to strong iron ore prices - has exposure to quality assets an
Slide 26: Competent Person
Competent Person The information in this report relating to Mineral Resources is based on information compiled by Rolf Forster, who is a member of the Australasian Institute of Mining and Metallurgy and holds a Bachelor of Applied Science in Geology. Rolf Forster is a consultant to Mount Gibson Mini
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