Mgx Resources Limited · ASX:MGX
Mgx Resources — Mount Gibson Iron — Investor Presentation (May 2005)
22 slides from Mgx Resources's investor presentation, May 2005
Slide 1: Investor Presentation May 2005
INVESTOR PRESENTATION May 2005 Available at www.mtgibsoniron.com.au
Slide 2: Mount Gibson Iron Group Resource Locations
MOUNT GIBSON IRON GROUP RESOURCE LOCATIONS MIDWEST REGION WESTERN AUSTRALIA 1
Slide 3: Corporate Development Phase One – Direct Shipping Grade Hematite
CORPORATE DEVELOPMENT PHASE ONE – DIRECT SHIPPING GRADE HEMATITE Current Focus Increase mining rate at Tallering Peak mine from 2.0Mtpa to 3.0Mtpa in January 2006 Utilise all rail capacity currently available in the MidWest region Maintain current operating profit at Tallering Peak of over $25.00 pe
Slide 4: Hematite Resources and Exploration Potential
HEMATITE RESOURCES Grade Measured Indicated Inferred Total %Fe Lump Resource Resource Resource Mt Mt Mt Mt Tallering Peak 63.5% 16.0 3.0 3.0 22.0 Extension Hill (Mt Gibson) 63.0% 10.7 2.0 - 12.7 Iron Hill (Mt Gibson) 63.0% 2.7 - - 2.7 29.4 3.0 3.0 37.4 HEMATITE – EXPLORATION POTENTIAL Extension Hill
Slide 5: Pisolite – Pilbara Exploration Areas
PISOLITE - PILBARA EXPLORATION AREAS PROSPECT AREA KM2 LOCATION South 1,040 Adjacent to Hamersley Fortescue Iron railway and centrally between Marandoo, Tom Price and Mt Brockman mines Margaret 330 Adjacent to BHP- Well Billiton railway and 30 km from Mt Whaleback mine Wonnmunna 200 20 km from Hamer
Slide 6: Corporate Development Phase Two – Magnetite Concentrate & Iron Pellets
CORPORATE DEVELOPMENT PHASE TWO - MAGNETITE CONCENTRATE & IRON PELLETS The Company’s second phase of development will involve investment in magnetite mines in the Mid West region of Western Australia and the production of iron pellets in China. Mount Gibson Iron Limited (“MGI”) currently has a 63% s
Slide 7: Corporate Development Phase Two – Magnetite Concentrate & Iron Pellets
CORPORATE DEVELOPMENT PHASE TWO – MAGNETITE CONCENTRATE & IRON PELLETS MGI will manage the development and operation of the Extension Hill mine and be paid an indexed fee of $3.50 per tonne of concentrate produced ($17.5 million per year) Asia Iron is currently recruiting highly experienced expatria
Slide 8: MGI Investment in Asia Iron
MGI INVESTMENT IN ASIA IRON MGI expect to invest a total of A$65 million for an ultimate 75% shareholding in Asia Iron (A$15 million to date and A$50 million in December 2005) Asia Iron requires A$80 million for its remaining equity contribution to the development of the 50% owned Extension Hill min
Slide 9: Magnetite Resources
MAGNETITE RESOURCES Measured Indicated Inferred Total Resource Resource Resource Mt Mt Mt Mt Extension Hill 153.0 50.0 45.0 248.0 (100% owned by Asia Iron) The proposed pit at Extension Hill has been scheduled for a 20 year mine life by independent consultants • annual production - 5.0Mtpa 68% Fe ma
Slide 10: Extension Hill Project Aerial Magnetic Survey
9 250 500 _750 __1000m te IM 5 Se3-5 J) EXTENSION HILL PROJECT Drawn: S. Coates Date: 02-05-04 Revised: B. Johnson Date: 04-05-05 AERIAL MAGNETIC SURVEY Dwg No. mg-07-061.dgn
Slide 11: Mt Gibson Magnetite Projects Layout and Geology
LEGEND [5] retsic J cranite 5} matic CJ ar Fault — Dyke Topographic Contour (m AHD) 7 7 , 514 000mE 516 00mE $18 000nE N 9 250 £00 750 100m 1 —— 7 SCALE 1:40 000 at A4 (MGA) ‘ t ut MT GIBSON MAGNETITE PROJECTS Drawn: B. Johnson Date: 03-02-05 Revised: B. Johi Date: 04-05-05 PROJECT LAYOUT AND GEOLOG
Slide 12: Extension Hill Magnetite Mine & Longtan Pellet Plants – Financial Summary
EXTENSION HILL MAGNETITE MINE & LONGTAN PELLET PLANTS – FINANCIAL SUMMARY CAPITAL COSTS A$MIL Acquisition Costs Of Mining Leases 13.4 Capital Costs Mine Development And Pellet Plants 372.0 (Including 10% Contingency) Feasibility Study 15.0 Project Management 10.0 Interest During Construction 12.0 Wo
Slide 13: Extension Hill Magnetite Mine & Longtan Pellet Plant – Financial Summary
EXTENSION HILL MAGNETITE MINE & LONGTAN PELLET PLANT – FINANCIAL SUMMARY OPERATING COSTS * Australia A$/tonne pellets Mining 10.09 Concentrating 9.63 Rail Transport 16.38 ……. Note: MGI is investigating constructing slurry pipeline concentrate transport system Ship Loading 4.19 which would greatly re
Slide 14: Advantages of Pellet Production in Nanjing
ADVANTAGES OF PELLET PRODUCTION IN NANJING lower shipping costs Asia Iron’s concept of constructing a pellet plant 450km up the Yangtze River and within the precinct of the port of Longtan means that it will be able to ship concentrate directly from Geraldton to its plant at Longtan and avoid expens
Slide 15: Iron Pellets
IRON PELLETS – (Beijing Shougang Design Institute plant similar to that proposed for Longtan) 14
Slide 16: Mount Gibson Iron Group Corporate Structure
MOUNT GIBSON IRON GROUP CORPORATE STRUCTURE MOUNT GIBSON IRON LIMITED 100% 100% 100% 63% increasing to 75% WESTRALIAN ASIA IRON SHELDON HILL MOUNT GIBSON INFRASTRUCTURE HOLDINGS LIMITED PTY LTD MINING LIMITED HOLDINGS PTY LTD (Hong Kong) • Slurry Pipeline Mt Gibson - Geraldton Magnetite Hematite • W
Slide 17: Financial Projections – Mount Gibson Iron Limited
FINANCIAL PROJECTIONS – MOUNT GIBSON IRON LIMITED 2004/05 2005/06 2006/07 2007/08 Production Tallering Peak – hematite mill tonnes 1.9 2.5 3.0 3.0 Longtan – pellets (100% JV) mill tonnes - - 1.4 5.0 EBITDA Tallering Peak – hematite (after o’heads) A$ mill 25.9 74.2 87.8 87.8 MGI - magnetite manageme
Slide 18: Anticipated Growth in Shares
ANTICIPATED GROWTH IN SHARES Shares on Issue (30 April 2005) 366,819,793 Conversion of Notes (December 2005 – 30 cents) 1,500,000 Listed Options (October 2005 - 22 cents) 30,723,300 SHARES ON ISSUE JUNE 2006 399,043,093 Unlisted Employee Options (December 2006 -25 cents) 11,225,000 Unlisted Managing
Slide 19: Top Shareholders (as at April 2005)
TOP 20 SHAREHOLDERS (as at 25 April 2005) No. Shareholder Shares Held (%) No. Shares 1 National Nominees Limited 7.54% 27,654,734 2 Sinom (Hong Kong) Ltd 5.13% 18,800,000 3 Sun Hung Kai Investment Services Ltd <SHKIS No5 A/C> 4.50% 16,500,000 4 Sun Hung Kai Investment Services Ltd <SHKIS No2 A/C> 4.
Slide 20: 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 21: 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 22: Disclaimer
DISCLAIMER This Document is not a Prospectus nor an Offer to Subscribe for Shares. Mount Gibson Iron Limited and its subsidiaries (“MGI”) makes no representations or warranty (express or implied) as to the accuracy, reliability or completeness of this document. MGI and its respective directors, empl