Mount Gibson Iron : AGM CEO Presentation

MGX

CEO Presentation 14 November 2018

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") make 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 MGX shares are considered highly speculative.

Issued capital Market capitalisation Cash and investments Borrowings

1,128.4 million shares

A$660 million (at $0.585/share, 13 Nov 2018)

A$452 million (30 September 2018)

Nil

Index

ASX All Ordinaries

APAC Resources

Australian Institutions

Shougang Fushan

Australian Retail

North America

UK & Europe

Management

Other

• • Lee Seng Hui - Non-Executive Chairman

• • Simon Bird - Independent Non-Executive Director

• • Russell Barwick- Independent Non-Executive Director

• • Paul Dougas - Independent Non-Executive Director

• • Alan Jones - Independent Non-Executive Director

• • Li Shaofeng - Non-Executive Director

• • Peter Kerr - CEO

• • Scott de Kruijff - COO

• • Gill Dobson - CFO

• • David Stokes - Co. Sec. & General Counsel

• • Australia's highest grade DSO hematite mine provides direct exposure to increasing high grade premium.

• • Ore Reserves upgraded to 21.0Mt @ 65.5% Fe.*

• • Seawall seepage barrier completed July 2018, dewatering progressing to plan and mining activities now underway.

• • On track for first ore sales at end of March 2019 Quarter.

• • Projected FY2019 ore sales of 0.7-1.0 Mwmt.

• • Planned DSO sales of 2.0-2.3 Mwmt in FY2019 at projected site cash cost of $38-42/wmt FOB.

• • Mining on track for completion in late 2018, followed by final ore sales in early 2019.

• • Lump and fines currently grading ~60% Fe.

• • Total site closure costs provisioned at ~$15m, of which ~$8m is anticipated to be spent in FY2019.

• • Right earned to a future income stream based on third party rail volumes, capped at ~$35 million.

*Refer ASX release dated 20 April 2018, and slide at end of this presentation.

•  Quarterly product sales of 1.1 Mwmt* for revenue of $65 million Free on Board (FOB).

•  Underlying operating cashflow of $18 million before Koolan Island restart expenditure of $23 million in the quarter.

•  Cash and liquid investments of $452 million at 30 September 2018.

•  All-in group cash costs** of $40/wmt FOB, and Mid West site cash costs of $37/wmt FOB^.

•  Mining at the Mid-West Iron Hill deposit scheduled for completion in late 2018, with ore sales to conclude in early 2019.

•  High-grade Koolan Island Mine Restart Project on track to commence ore sales late in March 2019 Quarter.

•  CEO transition from Jim Beyer to Peter Kerr completed.

•  Sales guidance for 2018/19 of 2.7- 3.3 Mwmt at all-in group cash cost** of $52-57/wmt FOB.

•  Net profit after tax of $99.1 million announced for FY2017/18 including $64.3 million insurance settlement proceeds.

•  Fully franked final dividend for FY2017/18 of 3.0 cents per share paid on 15 October 2018.

* Million wet metric tonnes (Mwmt).

**All-in group cash costs are reported FOB and include all operating, sustaining capital, royalties and corporate costs, excluding Koolan Island restart project development capital. ^Site cash costs are reported FOB and include royalties and sustaining capital.

All figures are expressed in Australian dollars unless stated otherwise

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