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INVESTOR PRESENTATION

INVESTOR PRESENTATION. May 2005. Available at www.mtgibsoniron.com.au. MOUNT GIBSON IRON GROUP RESOURCE LOCATIONS MIDWEST REGION WESTERN AUSTRALIA. CORPORATE DEVELOPMENT PHASE ONE – DIRECT SHIPPING GRADE HEMATITE. Current Focus

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INVESTOR PRESENTATION

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  1. INVESTOR PRESENTATION May 2005 Available at www.mtgibsoniron.com.au

  2. MOUNT GIBSON IRON GROUPRESOURCE LOCATIONSMIDWEST REGION WESTERN AUSTRALIA 1

  3. 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 per tonne • Mine Tallering Peak at 3.0Mtpa for 5 – 6 years then relocate operation to Mt Gibson for minimum of 5 years • Profits from Mt Gibson mine should be similar to Tallering Peak – additional transport costs will be largely offset by low 1.0 to 1.0 waste to ore ratio • All production from Tallering Peak and Mt Gibson contracted for sale to China for life of mines (Stemcor, Sinom, Prosperity Minerals, Shanghai Industrial) 2

  4. HEMATITE RESOURCES HEMATITE – EXPLORATION POTENTIAL • Extension Hill South (Mt Gibson) • Sheldon Hill (Mt Gibson) • Koolanooka South • Walebing • 60% of Poondano Exploration’s 2730km² areas in Pilbara (shallow pisolite deposits - major exploration targets adjacent to existing infrastructure) • 7% strategic shareholding in Resource Mining Corporation – Argyle deposit in Kimberley region 3

  5. PISOLITE - PILBARA EXPLORATION AREAS 4

  6. CORPORATE DEVELOPMENT PHASE TWO - MAGNETITE CONCENTRATE & IRON PELLETS The Company’s second phase of development will involve investment in magnetitemines 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% shareholding in Hong Kong based Asia Iron Holdings Limited (“Asia Iron”) • Asia Iron, in a 50:50 joint venture with a major Chinese steel mill, will develop a mine at Extension Hill (Mt Gibson) to produce 5.0Mtpa of magnetite concentrate and two 2.5Mtpa pellet plants at Longtan, on the Yangtze River near Nanjing, China • Asia Iron will sell its entitlement to 2.5Mtpa of pellets to regional steel producers under long term contracts • The joint venture partner will consume 2.5Mtpa of pellets in its own blast furnaces • Asia Iron is well advanced in negotiations with the Nanjing Iron and Steel Group to become its partner and expects to finalise contract documentation in the near term 5

  7. CORPORATE DEVELOPMENT PHASE TWO– MAGNETITE CONCENTRATE & IRON PELLETS • MGI will manage the development and operation of the Extension Hill mine and bepaid an indexed fee of $3.50 per tonne of concentrate produced ($17.5 million per year) • Asia Iron is currently recruiting highly experienced expatriate management to work with Chinese staff provided by Nanjing Iron & Steel, to manage the pellet plant • Bankable Feasibility Study to be completed in September 2005 • Development of the Extension Hill mine and first pellet plant planned to commence December 2005 • Commissioning of 5Mtpa mine and first 2.5Mtpa pellet plant is expected in early 2007 with the second 2.5Mtpa plant six months later • MGI is also negotiating a second joint venture with another major Chinese steel mill to produce 5.0Mtpa of pellets in 2009 • The second joint venture will require the drilling and definition of an additional 250Mt of magnetite resources within MGI’s Group’s Midwest leases 6

  8. 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 mine, and the Longtan pellet plants • Asia Iron’s equity will be provided by; i) share subscription by MGI December 2005 (A$50 million) ii) advance payments on purchases from long term buyers of Asia Iron’s pellets (A$25 million)iii) existing resources (A$5 million) • MGI can fund its A$50 million subscription to Asia Iron from current cash reserves, share option conversions and retained earnings, without further share placements 7

  9. MAGNETITE RESOURCES • The proposed pit at Extension Hill has been scheduled for a 20 year mine life by independent consultants • annual production - 5.0Mtpa 68% Fe magnetite concentrate • average yield, concentrate to ore - 46% • average waste to ore ratio - 1.1 to 1.0 by weight after prestripping • (final ratio and ore reserves to be determined in the near future based on results of recent geotechnical investigations)Exploration Targets • Extension Hill South (100% owned by MGI) • Iron Hill (100% owned by MGI) • Sheldon Hill (100% owned by MGI) • Koolanooka South (100% owned by Asia Iron) • Wolla Wolla (100% owned by Asia Iron) 8

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  12. EXTENSION HILL MAGNETITE MINE & LONGTAN PELLET PLANTS – FINANCIAL SUMMARY 11

  13. EXTENSION HILL MAGNETITE MINE & LONGTAN PELLET PLANT – FINANCIAL SUMMARY OPERATING COSTS * ……. Note: MGI is investigating constructing slurry pipeline concentrate transport system which would greatly reduce delivery costs to port 12 (*Based on exchange rate of A$1.00 : US$0.78)

  14. ADVANTAGES OF PELLET PRODUCTION IN NANJING • lower shipping costsAsia 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 expensive transhipment and barging costs incurred by competitors importing pellets or pellet feed to the Nanjing steel making region particularly from Brazil which ships in capesize vessels • lower capital costsAsia Iron’s two pellet plants will cost a total of approximately A$100 million in China versus A$350 million in Australia • lower pelletising costs pelletising is expected to cost A$6.70 per tonne in China versus A$12.00 to A$15.00 in Australia • low taxation in early yearsAsia Iron as a foreign investor will pay no tax in first two years of operation in China, then 7.5% for next three years, allowing 4 year project payback • location at centre of expanding steel making region • low cost industrial land leased from Longtan Port Authority • skilled workforce and experienced management available in region • Nanjing attractive city for foreign residents 13

  15. IRON PELLETS – (Beijing Shougang Design Institute plant similar to that proposed for Longtan) 14

  16. MOUNT GIBSON IRON GROUP CORPORATE STRUCTURE MOUNT GIBSON IRON LIMITED 100% 100% 100% 63% increasing to 75% WESTRALIAN INFRASTRUCTURE HOLDINGS PTY LTD SHELDON HILL PTY LTD MOUNT GIBSON MINING LIMITED ASIA IRON HOLDINGS LIMITED (Hong Kong) • Slurry Pipeline Mt Gibson - Geraldton• Water Pipeline Geraldton - Mt Gibson• Port Facilities Geraldton Magnetite • Sheldon Hill • Extension Hill South • Iron Hill Hematite • Tallering Peak • Extension Hill (Mt Gibson) • Iron Hill (Mt Gibson) • Sheldon Hill (Mt Gibson) • Koolanooka South • Walebing Investments • Poondano Exploration (60%) (Pilbara Pisolite) • Resource Mining Corporation (7%) (Argyle Hematite) Manager 50% 50% EXTENSION HILL PTY LTD ASIA IRON (NANJING) LTD(PRC) Magnetite Extension Hill (Mt Gibson) Pellet Plant Longtan (Nanjing) 50% 50% NANJING IRON & STEEL GROUP (PRC) 15

  17. FINANCIAL PROJECTIONS – MOUNT GIBSON IRON LIMITED 16

  18. 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 Director Options (December 2007 - 50 cents) 5,000,000 Unlisted Managing Director Options (December 2008 - 55 cents) 5,000,000 SHARES ON ISSUE DEC 2008 420,268,093 17

  19. TOP 20 SHAREHOLDERS(as at 25 April 2005) 18

  20. 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 the joint venture between North Limited, Nippon Steel, Mitsui, and Sumitomo Metals for the management, operation and expansion of the Robe River iron ore project in the Pilbara region of Western Australia. Prior to this, Mr Willis worked for BHP and was responsible for exploration, mine geology and management of iron ore production at BHP’s iron ore mines at Mt Newman, Koolyanobbing and Yampi Sound. Brian Johnson (Managing Director) Mr Johnson is a civil engineer with extensive experience in the construction and mining industries in Australia, South East Asia and North America. As a major shareholder and Chief Executive, Mr Johnson was instrumental in establishing Portman Limited’s presence in the iron ore industry between 1991 and 1994, developing mines at Koolyanobbing and Cockatoo Island. He also personally partnered Mr Lang Hancock in the development and operation of McCamey’s Monster iron ore mine in the Pilbara, prior to its sale to BHP. Craig Readhead (Non-Executive Director) Mr Readhead is a lawyer who has spent the last 24 years practicing in the resources law area and is now a partner of the law firm Pullinger Readhead Lucas. Mr Readhead has had a significant legal role in the development of a number of mining projects within Australia, Africa and South East Asia. Mr Readhead is a director of a number of listed and unlisted mining and exploration companies and is a past President of the Australian Mining and Petroleum Law Association, and a past Vice President of the Association of Mining and Exploration Companies. Ian Macliver (Non-Executive Director) Mr Macliver is a Chartered Accountant with many years experience as a senior executive and director of both resource and industrial companies (including Portman Limited), with particular responsibility for capital raising and other corporate initiatives. 19

  21. 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 Operations) Mr Malaxos is a Mining Engineer with extensive experience in both open pit and underground mining operations. Mr Malaxos was the Resident Manager of the Broken Hill mine of Perilya Limited and was responsible for the start-up of that operation. Prior to this he managed the Australian operations of contract miner, Byrnecut Mining Pty Ltd, and held senior management roles with WMC Resources Ltd and KCGM Pty Ltd. 20

  22. 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, 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 MGI, 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 MGI may be influenced by a number of factors, uncertainties and contingencies many of which are outside the control of MGI and its directors. 21

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