Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Investor Presentation (September 2004)
18 slides from Mgx Resources's investor presentation, Sep 22, 2004
Slide 1: Investor Presentation ASX cover letter
Mount Gibson Iron Limited ABN 87 008 670 817 First Floor, 7 Havelock Street West Perth 6005, Western Australia PO Box 55, West Perth WA 6872 Telephone: 61-8-9485 2355 Facsimile: 61-8-9485 2305 E-mail: [email protected] 22 September 2004 No. Pages = 18 The Manager Company Announcements Austra
Slide 2: Investor Presentation September 2004
INVESTOR PRESENTATION September 2004
Slide 3: Project Locations Resources (JORC)
PROJECT LOCATIONS RESOURCES (JORC) Project Measured Indicated Inferred Total Resource Resource Resource Mt Mt Mt Mt Hematite Tallering Peak 4.9 14.6 19.5 Mt Gibson 12.8 12.8 Total 4.9 27.4 32.3 Magnetite Mt Gibson 165 22 44 231 (54%) 1
Slide 4: Corporate Development – Phase One (Hematite)
CORPORATE DEVELOPMENT – PHASE ONE (HEMATITE) MGI’s primary focus is to progressively increase the mining rate of direct shipping grade hematite to 2.5Mtpa from either existing Tallering Peak mine (6 years at full production) or Mt Gibson (5 years) when developed Utilise all rail capacity currently a
Slide 5: Corporate Development – Phase One (Hematite) (contd)
CORPORATE DEVELOPMENT – PHASE ONE (HEMATITE) (contd) Low cost of developing Mt Gibson mine ($10 million) Sales to China of 1.6Mtpa from Tallering Peak contracted for life of mine (Stemcor, Sinom, Shanghai Industrial, Prosperity Minerals) Excess production to be sold on spot market (which remains str
Slide 6: Corporate Development – Phase Two (Magnetite/Pellets)
CORPORATE DEVELOPMENT – PHASE TWO (MAGNETITE/PELLETS) MGI’s second phase of development will be the production of magnetite concentrate as feed for iron pellet production in China. MGI to sell its magnetite resources at Mt Gibson and technical data to Hong Kong based Asia Iron Holdings Limited (Asia
Slide 7: Corporate Development – Phase Two (Magnetite/Pellets) (contd)
CORPORATE DEVELOPMENT – PHASE TWO (MAGNETITE/PELLETS) (contd) Commissioning at Koolanooka will coincide with completion of the first pellet plant at Longtan on the Yangtze river near Nanjing. Asia Iron intends to develop its second mine and pellet plant twelve months after the first. Nanjing Iron an
Slide 8: Corporate Development – Phase Two (Magnetite/Pellets) (contd)
CORPORATE DEVELOPMENT – PHASE TWO (MAGNETITE/PELLETS) (contd) Asia Iron’s concept of constructing pellet plants 450km up the Yangtze River in a major steel making region means that it will be able to ship directly from Geraldton to the river port of Longtan and avoid expensive transhipment and bargi
Slide 9: Pellet Plant – similar to that proposed for Longtan
PELLET PLANT – (Beijing Shougang Design Institute plant similar to that proposed for Longtan) 7
Slide 10: Mount Gibson Iron Group – Proposed Structure
MOUNT GIBSON IRON GROUP – PROPOSED STRUCTURE MOUNT GIBSON IRON LIMITED 30% ASIA IRON HOLDINGS LIMITED (Australia) (Hong Kong) 100% 100% 50% Mt Gibson Magnetite 50% MOUNT GIBSON (54%) MINING LIMITED Manager MAGNETITE LONG TAN HEMATITE Koolanooka PELLET PROJECT Tallering Peak Wolla Wolla (China) Mt Gi
Slide 11: Tallering Peak Hematite Mine
TALLERING PEAK HEMATITE MINE Current production 1.8Mtpa ramping to 2.1Mtpa in January 2005 based on commitment by Australian Railroad Group to supply additional rail wagons. Estimated (2004 – 5) $/tonne shipped Average sale price based on 65% lump ore and 35% fines at 72 cents exchange rate 36.30 Op
Slide 12: Financial Projections
FINANCIAL PROJECTIONS 2004 - 5 2005 - 6 2006 - 7 HEMATITE – TALLERING PEAK Production M Tonnes 1.8 2.1 2.3 Sales $Million 65.4 79.1 86.9 Operating Profit $Million 23.7 32.7 33.2 Royalties $Million (4.5) (5.5) (6.1) Depreciation & Amortisation $Million (4.2) (4.0) (3.9) Profit BIT $Million 15.0 23.2
Slide 13: Financial Projections (contd)
FINANCIAL PROJECTIONS (contd) 2004 - 5 2005 - 6 2006 - 7 TOTAL OPERATING PROFIT $Million 15.0 23.2 23.2 OVERHEADS & ADMINISTRATION $Million (1.1) (1.2) (1.4) DEVELOPMENT EXPENDITURE $Million (0.9) (1.7) (0.5) TOTAL PROFIT BIT $Million 13.0 20.3 21.3 INTEREST $Million (0.4) (0.1) (0.1) TAXATION $Mill
Slide 14: Share Structure
SHARE STRUCTURE Shares on Issue 291,566,000 Options Issued to Asia Iron (19 million) - (unlisted – December 2004 – 25 cents) (unlikely to be exercised) Options Issued to Sinom & Associates 18,800,000 (listed – October 2005 – 22 cents) Options Issued to Directors & Executives 12,000,000 (listed – Oct
Slide 15: Top Shareholders
TOP 20 SHAREHOLDERS No. Shareholder Shares Held (%) No. Shares 1 Chemco Pty Ltd 9.18% 26,775,720 2 National Nominees Limited 8.32% 24,258,151 3 Sinom (Hong Kong) Ltd 7.29% 21,250,000 4 Asia Iron Holdings Limited 6.52% 19,000,000 5 Link Traders (Aust) Pty Limited 4.89% 14,243,880 6 Nefco Nominees Pty
Slide 16: Directors
DIRECTORS Bill Willis (Chairman) Mr Willis is a geologist with extensive technical and management experience in the Australian mining sector, particularly in iron ore. He was Executive Director and Chief Executive of Robe River Mining Co Pty Ltd from 1993 to 1999 inclusive, and was responsible for t
Slide 17: Senior Executives
SENIOR EXECUTIVES John Arbuckle (Chief Financial Officer) Mr Arbuckle is a CPA with over 15 years experience in the mining industry, having previously occupied senior finance roles with Rio Tinto Limited, North Limited, Anaconda Nickel Limited and Perilya Limited. Kevin Malaxos (General Manager Oper
Slide 18: Important Statement
Important Statement This Document is Confidential 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. Distribution Limitations T
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