Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — H1 2015 Earnings Presentation
10 slides from Mgx Resources's earnings presentation, Feb 17, 2015
Slide 1: Interim Financial Results H1 2015
Interim Financial Results H1 2015 For personal use only MGX 17 February 2015 1
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, For personal use only in whole or in part, for any purpose without prior written approval from Mount Gibson Iron Limited. This Document is not a
Slide 3: A challenging period but still financially strong
H1 2015 A challenging period but still financially strong For personal use only Price weakness and Koolan Island seawall failure impacted results, but balance sheet remains strong: • Underlying* pre-tax gross operating profit of $2.7 million before impairments, compared with $121.1 million in prior
Slide 4: Successfully reducing costs and preserving capital
H1 2015 Successfully reducing costs and preserving capital • Koolan Island workforce reduced in line site with ramp-down For personal use only – 200 roles made redundant in December 2014 – 125 roles retained for duration of Acacia East satellite mining – Acacia East mining to generate gross cash mar
Slide 5: HY2015 A challenging period
HY2015 A challenging period For personal use only Six months ended: 31-Dec-14 31-Dec-13 Ore tonnes mined Mwmt 3.2 3.8 Ore tonnes sold Mwmt 3.1 5.1 Sales revenue $ mill 188.9 509.5 Interest income $ mill 7.2 7.4 Cost of goods sold $ mill (193.4) (395.8) Underlying* Gross profit before impairments $ m
Slide 6: H1 2015 Cash operating expenditure
H1 2015 Cash operating expenditure Impacted by Koolan Island For personal use only Six months ended 31 December: 2014 2013 Sales Volume (Mwmt) 3.1 5.1 Sales Revenue (A$m) 188.9 509.5 Realised FOB Price (A$/wmt sold, including 60.94 100.28 penalties and FX hedging) Cost breakdown A$m A$/wmt sold A$m
Slide 7: Extension Hill - strong base and reducing costs
Extension Hill - strong base and reducing costs For personal use only • Established road, rail and port solutions • Low mine-site costs, low strip ratio • Quality product • High lump yield • H1 operating cashflow of $15 million • H1 cash costs $49/wmt FOB (excl. royalties) • H2 cash cost guidance $4
Slide 8: Koolan Island update
Koolan Island update For personal use only Acacia East pit • Seawall assessment on track for decision in June Half 2015 • Rebuild will only proceed if clearly viable and best use of capital • Focus on maximising value from site in its current state • Engagement with insurers progressing • Mining in
Slide 9: Summary
Summary For personal use only • First half results impacted by iron ore price decline and Koolan Island Main Pit seawall failure • Strong balance sheet with period-end cash reserves of $354 million • Focused on preserving capital and reducing costs while Koolan Island evaluation work completed • Sub
Slide 10: Supplementary information: Mineral Resources and Ore Reserves
Supplementary information Mineral Resources and Ore Reserves For personal use only Mineral Resources and Ore Reserves at 30 June 2014 Total Group Mineral Resources and Ore Reserves at 30 June 2014 Koolan Island Tonnes Fe SiO2 Al2O3 P Total Group Mineral Resources and Ore Reserves at 30 June millions