Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Merger or Acquisition (September 2006)
14 slides from Mgx Resources's merger presentation, Sep 27, 2006
Slide 1: Mount Gibson
Mount Gibson 01
Slide 2: Summary of the Offer
Summary of the Offer ¢ 1 Mount Gibson share for every 3 Aztec shares ¢ Substantial premium - 38.4% to Aztec’s VWAP for the one month to 19 July 2006") - 40.9% premium to Aztec’s VWAP for the twelve months to 19 July 2006" - endorsed by Aztec’s largest shareholder ¢ Subject to limited conditions - mi
Slide 3: Mount Gibson already has a Blocking Stake
Mount Gibson already has.a Blocking Stake e Aztec’s largest shareholder, Cambrian Mining, has already accepted the Offer « Relevant interest in 32% of Aztec shares ¢ Could be used to block other potential counter bidders from acquiring full control of Aztec
Slide 4: Offer is Compelling - Benefits to You
Offer is Compelling - Benefits to You 1. Become a shareholder in Australia’s leading oY independent pure-play iron ore producer 2. Delivers growth strategy articulated by Aztec - 7 provide you with real benefits sooner 3. Gain access to peak cycle iron ore prices - Mount VY Gibson is producing iron
Slide 5: Offer is Compelling - Benefits to You
Offer is Compelling - Benefits to You 5. More balanced and diversified portfolio of assets, Y mitigating key risks identified by Aztec 6. Benefit from any financial and market re-rating of SY the Merged Group 7. Strongly endorsed by the largest shareholders in ay both Aztec and Mount Gibson 8. Attra
Slide 6: Target's Statement Failed to Recognise
Target’s Statement Failed to Recognise : ¢ Importance of providing Aztec shareholders with a clear and supportable assessment of value e Aztec’s major shareholder, Cambrian had already committed to accepting the Offer ¢ Offer is fair and at a substantial premium e Mount Gibson offers more than just
Slide 7: No Justification for Rejecting the Offer
No Justification for Rejecting the Offer e Aztec Board’s recommendation provides no substantiation of the claim that the Mount Gibson Offer is inadequate ¢ Notwithstanding established practice, the Board of Aztec has not provided you with a valuation (independent or otherwise) « A business headline
Slide 8: Offer is Fair and at a Substantial Premium
Offer is Fair and at a Substantial Premium Offer Premium 0,300 0,280 0.260 |” 0,240 0,220 0.200 0.180 0,160 0,000 4 Aztec Share Price AS 1: month VWAP 3 month VwaP 6 month VWAP 12 month VWAP e Offer is fair, Cambrian Mining at the time of the announcement said: ee Larkin PULUPE GIO! GING ese achievi
Slide 9: Mount Gibson Offers More Than Just Reserves and Resources
Mount.Gibson Offers More Than Just __R dR ¢ Currently producing, generating significant operating cash flows ¢ Superior lump : fines ratio than Aztec - lump trades at 28% premium to fines e Aztec mining lower grade satellite deposits containing high silica levels in early years: - significant sellin
Slide 10: The Merged Group Offers a Superior Risk Return Proposition
The Merged Group Offers a Superior Risk Significant benefits of mitigating single asset risks by being part of a larger group with multiple operations and existing cash flow: ¥ Strong balance sheet with cash flow generating assets ¥ Diversified asset portfolio with proven production V Access to a wi
Slide 11: Current Mount Gibson Management Delivering on Undertakings
Current Mount Gibson Management __ Delivering on Undertakings e Management developed an operating plan, now delivering record production e Strategy to focus and grow in hematite iron ore well progressed : - successfully divested Asia Iron for $52.5m!' - combination with Aztec to create a leading Aus
Slide 12: In the Absence of Mount Gibson's Offer, the Aztec Share Price is Likely to Fall
In the Absence of Mount Gibson’s Offer, _ the Aztec Share Price is Likely toFall e Since Mount Gibson announced its Offer, Aztec share price has consistently traded at or below the effective value of the Offer e Market recognises that a counter bid emerging or an increased Offer from Mount Gibson is
Slide 13: Offer is at a substantial premium reflecting full and fair value
¢ Offer is at a substantial premium reflecting full and fair value for Aztec shares ° Merger is strategically and operationally compelling and irrefutable e Aztec Board has not provided Aztec shareholders with a supportable assessment of value e Mount Gibson management will add further value to Azte
Slide 14: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation was prepared exclusively for the benefit of those persons to whom it is presented or transmitted, and is for the confidential use of those persons only. Mount Gibson [ron Limited and any of its related entities (collectively MGI) or their respective
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