title December 2015 Half-Year Financial Result


MGX


Investor Presentation 17 February 2016


Disclaimer


This Document is Confidential and 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 Offer to Subscribe for Shares.

Mount Gibson Iron Limited and its subsidiaries (ASX:MGX, "MGX") makes no representations or warranty (express or implied) as to the accuracy, reliability or completeness of this document. MGX and its respective directors, employees, agents and consultants shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matters (expressed or implied) arising out of, or contained in or derived from, or for any omissions from this document, except liability under statute that cannot be excluded.

This document contains reference to certain forecasts, projections, intentions, expectations and plans of MGX, which may or may not be achieved. They are based on certain assumptions which may not be met or on which views may differ.

The performance and operations of MGX may be influenced by a number of factors, uncertainties and contingencies many of which are outside the control of MGX and its directors.

No representation or warranty (expressed or implied) is made by MGX or any of its respective directors, officers, employees, advisers or agents that any forecasts, projections, intentions, expectations or plans set out in this document will be achieved, either totally or partially, or that any particular rate of return will be achieved.

Investments in shares in MGX are considered highly speculative.


2


Financial Result H1 2015-16

Overview


  • Six month sales revenue of $124 million (H1 2014-15: $180 million) after provisional pricing adjustments.

  • Iron ore sales of 2.6 Mwmt (H1 2014-15: 3.1 Mwmt^).

  • Gross profit from continuing operations of $12.0 million before tax and impairments

    (H1 2014-15: $12.3 million gross loss).

  • Reported statutory net loss after tax of $15.4 million (H1 2014-15: $869.8 million loss), after non-cash impairment charges of $23.6 million, and corporate and other expenses/income.

  • Cash and term deposits of $345.5 million at 31 December 2015, an increase of $11.5 million compared with 30 June 2015.

  • Total Cost of Goods Sold (COGS) of $44/wmt Free on Board (FOB), including non-cash costs, royalties and before impairments (H1 2014-15: $61/wmt).

  • All-in group cash costs* of $49/wmt FOB for December Half 2015 (H1 2014-15: $76/wmt).

  • FY2016 sales guidance maintained: 4.5 to 5.0 million tonnes at an all-in cash cost* of $50-54/wmt FOB.


All figures in Australian dollars unless stated otherwise

^Inclusive of sales from the discontinued Tallering Peak operations.

  • All-in cash costs are reported FOB and include all operating, capital, royalties, closure and head office costs.


    3


    Financial Result H1 2015-16

    At a glance


    • The Platts 62% Fe price averaged US$51/dmt CFR in the December half, down 38% compared with the prior corresponding period.

    • Total group ore sales of 2.6 Mwmt, down 17%.

    • Total ore sales revenue of $124 million, down 31%.

    • Cost of Goods Sold reduced by 28% to $44/wmt.



Sales Volume & Earnings

Dec-15

HY

Dec-14 HY

Sales Volume (Refer Note)


Mwmt

2.6

3.1

Sales Revenue


A$m

124.0

179.8

Gross profit/(loss) from continuing operations


A$m

12.0

(12.3)

Statutory profit/(loss) after tax


A$m

(15.4)

(869.8)

Unit Prices & Costs

Realised FOB Price (includes penalties, FX hedging and provisional pricing adjustments)


A$/wmt sold

48

64

Cost of Goods Sold (includes site cash and non-cash costs, and royalties)


A$/wmt sold

44

61


Note: The total sales volume for the December 2014 half-year includes the Tallering Peak operation which was classified as discontinued in FY2015. All other information excludes the Tallering Peak operation in order to provide a more useful comparison with current mining operations. All costs are reported on a Free on Board (FOB) basis.


4

Mount Gibson Iron Limited issued this content on 17 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 16 February 2016 22:11:27 UTC

Original Document: http://www.mtgibsoniron.com.au/wp-content/uploads/2016/02/MGX-H115-16-Financial-Results-Presentation-final.pdf