Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Diggers & Dealers 2021
26 slides from Mgx Resources's conference presentation, Aug 2, 2021
Slide 1: Diggers & Dealers Presentation
Mount Gibson Iron Limited For personal use only MGX Diggers & Dealers Presentation 2 August 2021
Slide 2: Disclaimer
Disclaimer For personal use only This Document 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 Prospectus nor an Of
Slide 3: Business Overview
Business Overview For personal use only Kimberley Region Koolan Island • High grade hematite Direct Shipping Ore (DSO) with a 65.2% Fe ore reserve grade*. • Ore sales 1.8 Mwmt in 2020/21 financial year. • Elevated waste stripping phase on track for completion in December half 2021. • Sales and cashf
Slide 4: Corporate Overview
Corporate Overview For personal use only MGX Share Price Issued shares 1,188 million shares 1.2 Share Price (A$/share) 1 Market capitalisation A$1.0 billion ($0.85/share) 0.8 Cash/investments A$365 million (30 June 2021) 0.6 Bank Borrowings Nil 0.4 Index ASX-300 0.2 Dividends A$309 million (fully fr
Slide 5: Group Highlights 2020/21
Group Highlights 2020/21 (Australian dollars unless stated otherwise) For personal use only • Total iron ore sales of 3.0 million wet metric tonnes (Mwmt) comprising 1.8 Mwmt from Koolan Island and 1.2 Mwmt from Extension Hill in the Mid-West. • Group unit cash costs of $66/wmt FOB, before capital i
Slide 6: Market Conditions - Iron Ore Pricing
Market Conditions - Iron Ore Pricing For personal use only 300 Iron Ore Price 250 (Platts: US$/dmt CFR North China) • Chinese-led demand and global supply-side constraints. 200 • High/low grade pricing differential has widened after 150 compressing in 2020/21, reflecting Chinese steel makers’ profit
Slide 7: Koolan Island - Mount Gibson's Flagship Asset
Koolan Island Mount Gibson’s Flagship Asset For personal use only 1km N Koolan Island is located in Yampi Sound in the Buccaneer Archipelago off the northern Kimberley coast of Western Australia, approximately 140 kilometres north of Derby. Original Airstrip Seawall Mangrove deposit Western Australi
Slide 8: Koolan Island - Steady progress in a year of major investment
Koolan Island Steady progress in a year of major investment For personal use only Koolan Island wharf & shiploader • Ore sales in line with guidance at 1.8 Mwmt for 2020/21. • Full year operating cashflow of $121 million before capitalised waste stripping investment of $138 million and capital impro
Slide 9: Koolan Island - Main Pit Operations
Koolan Island Main Pit Operations For personal use only Seawall embankment Main Pit, looking west, July 2021. 9
Slide 10: Koolan Island - Mining Operations
Koolan Island Mining Operations For personal use only Mining in Western Cutback, July 2021. • Advanced waste stripping program to be substantially completed in the December 2021 quarter to open up high-grade Main Pit ore for increased production and cashflows thereafter. • Total mining movement incr
Slide 11: Koolan Island - Upper footwall geotechnical program drilling & bolting
Koolan Island Upper footwall geotechnical program drilling & bolting For personal use only Main Pit upper west end footwall, June 2021. • Geotechnical controls are key, with focus on various aspects of the seawall, hanging wall and footwall. • The footwall geotechnical program involves the installat
Slide 12: Koolan Island - Increasing Production - Processing plant upgrade
Koolan Island Increasing Production - Processing plant upgrade For personal use only Footings for crusher upgrade, • An upgrade of the ore crushing plant is being undertaken to June 2021. ensure it can safely and cost-effectively handle the substantial increase in ore production expected over the re
Slide 13: Koolan Island - Low ore processing, handling and shiploading costs
Koolan Island Low ore processing, handling and shiploading costs Koolan Island processing and shiploading For personal use only infrastructure, June 2021 13
Slide 14: Koolan Island - Mine life extension targets
Koolan Island Mine life extension targets For personal use only • Opportunities exist for incremental extensions beyond the current 5 year mine life. • Main Pit – existing resources and development potential along strike, to the west and east. • Acacia East satellite pit providing supplementary ore
Slide 15: Koolan Island - New airstrip operational
Koolan Island New airstrip operational For personal use only Official opening of Laawun Airport, 26 November 2020 15
Slide 16: Mid-West Operations - Shine Iron Ore Project
Mid-West Operations Shine Iron Ore Project Shine personnel at the commencement For personal use only of mining, March 2021 16
Slide 17: Shine Iron Ore Project - Overview
Mid-West Operations Shine Iron Ore Project – Overview For personal use only • Initial Ore Reserve of 2.8Mt @ 59.4% Fe* in Stage 1 Pit, for initial two-year mine life at circa 1.5 Mtpa. • Potential to extend life by a further ~2 years, subject to market conditions, sourced from total Mineral Resource
Slide 18: Mid West Operations - Shine Iron Ore Project
Mid West Operations Shine Iron Ore Project For personal use only Shine Open Pit Waste and low grade dumps Bore installation, February 2021 ROM stockpiles Crushing plant and crushed ore Maintenance stockpiles workshops Shine open pit area, looking north, February 2021 Site administration Turkey’s nes
Slide 19: Mid West Operations - Shine Iron Ore Project
Mid West Operations Shine Iron Ore Project For personal use only Mining in Shine Open Pit, looking north, July 2021. Bore installation, February 2021 Shine open pit area, looking north, February 2021 Turkey’s nest dam embankment Site water supply, January 2021 construction, February 2021 19
Slide 20: Shine Iron Ore Project - Ore production
Mid-West Operations Shine Iron Ore Project Ore production, Shine open pit, April 2021 For personal use only 20
Slide 21: Mid-West Operations - Geraldton Port assets
Mid-West Operations Geraldton Port assets For personal use only Berth 5 Ship Loader Train Unloader MGX Berth 5 Shed MGX Berth 4 Shed 21
Slide 22: Mid-West Operations - Early Entrant with Strategic Assets
Mid-West Operations Early Entrant with Strategic Assets For personal use only Geraldton Port Trucking operations Mid-West • Strategic port holdings – MGX has 360,000t storage capacity in two sheds, integrated with the Port Authority’s train unloader and shiploader. • Surplus storage capacity not req
Slide 23: Communities are Critical
Communities are Critical (Figures as at 30 June 2021) For personal use only • Local employment - we seek to increase employment from our local communities. Over 25% of our Koolan Island employees reside in Derby, Broome and surrounds, while 30% of our Mid-West team live in that region. • Gender dive
Slide 24: Mount Gibson Iron (MGX) Summary
Mount Gibson Iron (MGX) Summary For personal use only • MGX is an established independent mid-tier iron ore producer offering meaningful exposure to production growth and high grade hematite iron ores. • Profitable, with a disciplined pathway to materially higher sales and cashflows at both its Kool
Slide 25: 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 25
Slide 26: Supplementary Information - Mineral Resources and Ore Reserves
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 Measur