Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — H1 FY2016 Earnings Presentation
14 slides from Mgx Resources's earnings presentation, Feb 17, 2016
Slide 1: December 2015 Half-Year Financial Result
December 2015 Half-Year Financial Result For personal use only MGX Investor Presentation 17 February 2016
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: Financial Result H1 2015-16 Overview
Financial Result H1 2015-16 Overview For personal use only Six month sales revenue of $124 million (H1 2014-15: $180 million) after provisional pricing adjustments. Iron ore sales of 2.6 Mwmt (H1 2014-15: 3.1 Mwmt^). Gross profit from continuing operations of $12.0 million before tax and impai
Slide 4: At a glance
Financial Result H1 2015-16 At a glance For personal use only • The Platts 62% Fe price averaged US$51/dmt CFR in the December half, down 38% compared with the prior corresponding period. • Total group ore sales of 2.6 Mwmt, down 17%. • Total ore sales revenue of $124 million, down 31%. • Cost of Go
Slide 5: Cash operating expenditure
Financial Result H1 2015-16 Cash operating expenditure For personal use only Six months ended 31 December: 2015 2014 Sales Volume (Mwmt) 2.6 3.1 (2.8 excluding Tallering Peak) Sales Revenue (A$m) 124.0 179.8 Realised FOB Price (A$/wmt sold, including 48 61 penalties and FX hedging) Cost breakdown A$
Slide 6: Cash movements over the half-year
Financial Result H1 2015-16 Cash movements over the half-year For personal use only 6
Slide 7: Business Overview
Financial Result H1 2015-16 Business Overview For personal use only Koolan Island • Acacia East Pit mining to be completed in March Quarter 2016, sales complete late March/early April. • Transition to care and maintenance mid-2016. • Evaluation of Main Pit seawall rebuild options ongoing. • Main Pit
Slide 8: Extension Hill: Low-capital growth platform
Extension Hill Low-capital growth platform • For personal use only Established road, rail and port solutions. • Site cash cost target $44-47/wmt FOB. N • Able to flex production between 3-4 Mtpa without materially impacting unit costs. • Extension Hill pit scheduled for completion in early 2017. • I
Slide 9: Koolan Island: Extracting value
Koolan Island Extracting value For personal use only • Main Pit inundated after seawall failure in December quarter 2014. • Most of workforce demobilised in late 2014. • Acacia East satellite mining campaign commenced in early 2015. • Acacia East mining to conclude in current quarter, sales to concl
Slide 10: Koolan Island: Future Potential
Koolan Island Future Potential For personal use only • Technical investigation into seawall failure completed. • Insurance claim progressing: • Property damage and business interruption cover. • Conditional confirmation that policies will respond with initial partial progress payment received in mid
Slide 11: The Future
The Future MGX has significant upside potential For personal use only • Flexible Extension Hill production plan to extend current pit to early 2017. • Iron Hill Resource confirms potential for production beyond Extension Hill • Koolan Island seawall rebuild evaluation offers significant future produ
Slide 12: December 2015 Half-Year Financial Result
December 2015 Half-Year Financial Result For personal use only MGX Investor Presentation 17 February 2016
Slide 13: Supplementary Information: Financial Result Breakdown
Supplementary Information Financial Result Breakdown Results for 6 months ended 31 December 2015 compared with the prior 6 months 6 months For personal use only corresponding 6 month period: ended ended 31 December 31 December 2015 2014 Ore tonnes mined^ wmt (mill) 3.4 3.2 Ore tonnes sold^ wmt (mill
Slide 14: Mineral Resources and Ore Reserves at 30 June 2015
Supplementary information Appendix Mineral – Reserves Resources and Resources and Ore Reserves at 30 June 2015 Total Group Mineral Resources and Ore Reserves at 30 June 2015 For personal use only Koolan Island Tonnes Fe SiO2 Al2O3 P millions % % % % Tonnes Fe SiO2 Al2O3 P (above 50% Fe) Mineral Reso