Mount Gibson Iron : December Half Year Financial Results Presentation

Financial Results for December 2018 Half-Year

MGX

Investor Presentation

19 February 2019

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.

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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.

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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.

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Mount Gibson Iron Corporate Overview

Issued capital Market capitalisation Cash and investments Borrowings

1,128.4 million shares

A$767 million (at $0.68/share, 15 Feb 2019)

A$431 million (31 December 2018)

Nil

Index

ASX All Ordinaries

Shareholder Distribution (% issued shares)

APAC ResourcesAustralia/NZ Institutions

Shougang Fushan

Australian Retail

North America

UK & Europe

Management

Other

0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10

-Feb-18

Apr-18

Jun-18

Aug-18

Oct-18

Dec-18

Feb-19

Board and Management

• • 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

Mount Gibson Iron Business Overview

Koolan Island

• • Australia's highest grade DSO hematite mine.

• • Ore Reserves of 21.0Mt @ 65.5% Fe.*

• • Seawall seepage barrier completed July 2018, dewatering progressing and mining underway.

• • First ore sales in April 2019.

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

Mid-West Region

Extension Hill & Iron Hill, Perenjori Siding, Geraldton Port

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

• • Mining completed December 2018, final ore shipments in February 2019.

• • Total site closure costs provisioned at ~$15m, of which ~$7m 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.

December 2018 Half-Year Overview

(All figures are expressed in Australian dollars unless stated otherwise)

•  Net profit after tax of $45.1 million (1H 2017-18: $80.0 million, which included $64.3 million from the proceeds of the Koolan Island business interruption insurance settlement).

•  Total product sales of 2.2 million wet metric tonnes (Mwmt) (1H 2017-18: 1.7 Mwmt), for sales revenue of $177.4 million CFR, including shipping freight (1H 2017-18: $117.0 million).

•  Cash, term deposits and liquid investments of $431.0 million at 31 December 2018, a reduction of $26.5 million in the half year, arising from net operating cashflows and interest of $57.3 million, Koolan Island expenditure of $65.5 million and $18.3 million in cash dividends paid in October 2018.

•  Mid-West site cash costs* of $37/wmt FOB (1H 2017-18: $42/wmt) and Group all-in cash costs* of $40/wmt FOB (1H 2017-18: $46/wmt), both below guidance.

•  Iron Hill mining, processing and railing completed, with the final Mid West shipments currently being loaded for export from Geraldton Port.

•  Koolan Island Restart Project pre-production activity nearing completion, and mining of high grade ore about to commence. Koolan ore sales to commence in April 2019.

•  Sales guidance for 2018/19 unchanged at 2.7-3.3 Mwmt, including 0.7-1.0 Mwmt from Koolan Island, at an average all-in Group cash cost* of $52-57/wmt FOB.

Mwmt = million wet metric tonnes.

* Site all-in cash costs are reported as at the loading port (Free on Board, FOB) including royalties and capital expenditure, and Group all in cash costs are reported FOB and include all operating, capital, royalties and corporate costs, excluding development costs related to the Koolan Island restart project.

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