Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Merger or Acquisition (July 2006)
12 slides from Mgx Resources's merger presentation, Jul 24, 2006
Slide 1: E: E =
E: 5 E 2 3 =
Slide 2: 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 Iron Limited and any of its related entities (collectively MGI) or their respective
Slide 3: Summary of Offer
Summary of Offer ¢ Mount Gibson is offering 1 new Mount Gibson share for every 3 Aztec shares ¢ The Offer equates to a value of $0.263 per Aztec share based on the volume weighted average price (“VWAP”) of Mount Gibson on 21 July of $0.789, being the last trading day before announcement of the Offer
Slide 4: Transaction Rationale
Transaction Rationale e The merger of Mount Gibson and Aztec will create a leading Australian pure-play iron ore producer with approximately 9.5 Mtpa of hematite production in 2009 e Merged company will have a market capitalisation in excess of $600 million, placing it in the ASX 200 ¢ Improved acce
Slide 5: Transaction Rationale
Transaction Rationale e Mount Gibson’s current cash generating asset will assist in development of Aztec’s Koolan Island project e Experienced management team, with complimentary technical and operating skills e« Merged company well placed for future growth and to progress further industry consolida
Slide 6: Leading Australian Pure-Play Iron Ore Producer
Leading Australian Pure-Play Iron Ore Producer The merger would create a strong platform for future growth Attractive Production Outlook) Increasing Market Presencet’) Mtpa 2,500 - 42.05 300 | 10.0] 8.07 600 4 6.0; 400 { 4.0) 2.05 200 + 0.0 T , jt - 0 | | | A 2007 2008 2009 2010 2011 ° : wee & Ce =
Slide 7: Well Balanced Asset Base of High Quality Projects
Well Balanced Asset Base of High Quality Projects Complimentary asset portfolios with significant cash flows and immediate growth plans Mount Gibson Aztec MergeCo ¢ Tallering Peak oa « Increasing production ‘Pr oducing a v x vo to 3Mtpa Assets « Strong cash flows ¢ Extension Hill « Production start-
Slide 8: The Offer Represents an Attractive Premium
The Offer Represents an Attractive Premium Offer Premium”) 0.280 - Offer Price: $0.263 0.260 [TTT | woomeeneeeees | a ae 0.240 - | 1 0.220 - 38.4% 1 33.5% 40.9% 0.200 - = — 0.197 0.180; 9-190 | 0.187 0.160 - - 0.140 ! 1__ 1__ 1 Month 3 Months 6 Months 12 Months VWAP VWAP VWAP VWAP 1) To 19 July 2006
Slide 9: The Proposed Transaction
The Proposed Transaction Ve Ordinary Options to be Diluted Value Pro Forma shares converted shares AS million Shareholding (million) (million) (million) oes eres Merged 756 i?) 775 612 company (1) Based on fully diluted issued capital of Aztec and Mount Gibson 9
Slide 10: The Benefits of Increased Scale
The Benefits of Increased Scale e Pro forma market capitalisation of over Index Inclusion AS600 million”, placing it 160th in the ASX 200 (absent a re-rating) @ As a leading independent Australian iron ore Market Presence producer, the combined entity will appear and Enhanced on the ‘radar screens’
Slide 11: Transaction Milestones
Transaction Milestones 1. Lodgement of Bidder’s Statement as soon as practicable 2. Dispatch of Bidder’s Statement to Aztec shareholders and opening of Mount Gibson offer 3. Lodgement and dispatch of Target’s Statement to Aztec shareholders 11
Slide 12: Questions
Questions 12
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