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2022 Annual Report
Mount Gibson Iron Limited is an established Australian producer and exporter of iron ore.
The Company was incorporated in 1996 and listed on the Australian Securities Exchange in 2002.
The Company seeks to provide sustainable, long-term returns to shareholders by optimising its
existing operations and growing long-term profitability through the discovery, development,
participation in and acquisition of mineral resources.
Headquartered in Perth, Western Australia, Mount Gibson’s primary operating asset is the Koolan
Island mine off the Kimberley coast in the remote north-west of the State. In the Mid-West
region of WA, Mount Gibson holds key export infrastructure at Geraldton Port, the suspended
Shine Iron Ore Mine and prospective mining and exploration tenure.
Our MGX Values provide us with a behavioural guide on how to sustainably deliver
shareholder value. It includes always putting the health and safety of our people first,
working together with the communities in which we operate, and undertaking our
activities in an environmentally responsible and sustainable manner.
MGX Values
COURAGE
INTEGRITY
SAFETY
AGILITY
RESPECT
Taking and giving feedback
Do what you say you will do
Genuine care for self
and others
Make timely decisions
Be approachable and open
to other points of view
Be prepared to admit
being wrong
Do the right thing, even
when no one is looking
Constant concern
(hazard identification)
Be dynamic and
embrace change
Treat others as you would
expect to be treated
Challenge the norm
constructively
“walk the talk”
Actively intervene
to improve
Grab the opportunity
Encourage and develop
people
Make the hard calls
Corporate Directory
All information correct as at 30 June 2021
Board of Directors
Lee Seng Hui
Chairman, Non-Executive Director
Alan Jones
Non-Executive Director
Ding Rucai
Non-Executive Director
Russell Barwick
Non-Executive Director
Paul Dougas
Non-Executive Director
Simon Bird
Non-Executive Director
Company Secretary
David Stokes
Registered Office
Level 1, 2 Kings Park Road
West Perth 6005, Western Australia
Telephone: +61 8 9426 7500
Facsimile: +61 8 9485 2305
Email:
admin@mgx.com.au
Website: www.mtgibsoniron.com.au
Solicitors
Herbert Smith Freehills
Level 36, QV1 Building
250 St George’s Terrace
Perth 6000, Western Australia
Auditors
Ernst & Young
Ernst & Young Building
11 Mounts Bay Road
Perth 6000, Western Australia
Bankers
HSBC Bank Australia Ltd
188-190 St George’s Terrace
Perth 6000, Western Australia
Stock Exchange Listing
ASX Code: MGX
The company’s shares are listed on the Australian Securities Exchange.
Share Registry
Computershare Investor Services Pty Ltd
Level 11, 172 St George’s Terrace
Perth 6000, Western Australia
Telephone: 1300 787 272
Facsimile: +61 8 9323 2033
Annual General Meeting of Shareholders
Mount Gibson will hold a hybrid AGM at 10:30am AWST (1:30pm AEDT)
on Wednesday 9 November 2022. Information explaining how
shareholders who are unable to attend the meeting in person may
access, vote and ask questions at the meeting is provided in the
Company’s Notice of AGM released to the ASX in October 2022.
Easy Access to Information
See our website at www.mtgibsoniron.com.au for regular quarterly
reports and financial results. Additionally, shareholders or interested
parties can register to receive emailed updates shortly after the
company makes any regular or major announcement.
2
MOUNT GIBSON IRON LIMITED 2022 Annual Report
MOUNT GIBSON IRON LIMITED 2022 Annual Report
103
Contents
20
21/22
Performance Summary
Chairman’s Report
Chief Executive Officer’s Report
Health & Safety
Operational Review
Environment and Community Affairs
Resources and Reserves Statement
Financial Report
Directors’ Report
Corporate Governance
Additional ASX Information
Corporate Directory
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103
2021/22 Performance Summary
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Lost Time Injury Frequency Rate (LTIFR) of 1.7 incidents per million manhours and a
Total Recordable Injury Frequency Rate (TRIFR) of 11.4, reduced from 4.4 and 13.8
respectively at prior year end.
Total sales revenue of $131.1 million Free on Board from ore sales of 1.65 million tonnes.
Net loss after tax of $174.1 million, after pre-tax impairments totalling $184.6 million
reflecting weaker iron ore prices.
Year-end cash, term deposits and liquid investments of $125.6 million.
Net assets of $533.1 million at 30 June 2021.
Koolan Island upper footwall ground support works, crusher upgrade and elevated
stripping program all completed or nearing completion at year end to enable increased
sales and cashflow over remaining life.
Mining access to high-grade ore ramping up and shipping of 65% Fe ore shipments
recommenced.
Shine iron ore mine in Mid-West placed on care and maintenance to preserve asset value
for the future.
MOUNT GIBSON IRON LIMITED 2022 Annual Report3
Chairman’s Report
I am pleased to present Mount Gibson Iron’s
Annual Report for the 2021/22 financial year.
During the year the Company substantially
completed its major capital improvement
projects at Koolan Island despite volatile iron
ore market conditions and challenges
associated with the COVID-19 pandemic,
i n fl a t i o n a r y p r e s s u r e s , s u p p l y c h a i n
disruptions and tight labour availability.
Ore sales revenue totalled $131.1 million Free
on Board (FOB) from the sale of 1.65 million
wet metric tonnes (Mwmt) of ore from the
Koolan Island and Shine operations in the
Kimberley and Mid-West regions of Western
Australia. This compared with revenue of
$311.7 million on sales of 3.0 Mwmt in the
preceding year. The reduction reflected
lower sales at Koolan Island while the major
capital improvement projects were under way,
a n d l i m i t e d s a l e s f r o m S h i n e w h e r e
deteriorating market conditions warranted
the operation being placed on care and
maintenance in late 2021 in order to preserve
the value of the deposit.
The Company recorded a loss after tax of
$174.1 million, after pre-tax impairments
totalling $184.6 million on the carrying value of
Koolan Island ($147.4 million) and the
suspended Shine operation ($37.2 million
previously recorded at the end of December
2021). These impairments resulted from the
Company’s normal practice of reviewing the
book carrying values of its assets at each
balance date in the context of prevailing
commodity prices and market outlook.
At year end, the Company’s cash and liquid
investments totalled $125.6 million, a
reduction of $239.1 million over the year,
reflective of the capital investment at Koolan
Island totalling $188.1 million on advanced
waste stripping, the upper footwall ground
support program and the processing plant
upgrade. It also reflected the lower iron ore
sales volumes during the year, weaker iron ore
prices and suspension of the Shine operation.
The investments at Koolan Island were
necessary to position the operation to deliver
significantly increased sales of high-grade iron
ore at reduced costs and to generate
substantial cashflows over the remainder of
Koolan Island’s operating life. The key capital
investment programs at Koolan Island were
either completed or nearing completion at the
end of the reporting period.
The benefits of these investments began to
emerge in the second half of the year, notably
in the June 2022 quarter during which
production and sales of high-grade ore more
than doubled, unit costs declined in step with
the reducing waste to ore stripping ratio, and
shipments of high grade 65% Fe grade iron ore
recommenced.
These benefits are anticipated to grow in the
2 0 2 2 / 2 3 fi n a n c i a l y e a r a n d b e y o n d ,
particularly as the Company regains full
processing capacity following the recent fire
within the product screen area of the Koolan
Island processing plant.
The ongoing COVID-19 pandemic continued to
impact our business and our workforce over
the year, however by effectively managing
these impacts, the Company minimised
disruption to its operations. I thank and
commend Mount Gibson’s employees and
contractors for their commitment and
resilience during this time.
Given the substantial investments undertaken
during the year and the current priority of
resuming the growth trajectory in high grade
sales at Koolan Island, the Board took a
prudent approach and did not declare a
dividend for the 2021/22 year. The Company
is pursuing a plan to drive substantial
production and cashflow growth from Koolan
Island, and the Board’s intention is to pay
dividends as and when the Company’s
financial performance justifies, consistent with
the approach adopted in prior years. Mount
Gibson has distributed approximately $332
million in fully franked dividends since 2011.
Looking ahead, the Board’s corporate
objective is to grow the Company’s cash
r e s e r v e s a n d c o n t i n u e t o p u r s u e a n
appropriate balance between the retention
and utilisation of cash reserves for value-
accretive investments. The Board has
determined the following key business
objectives for the 2022/23 financial year:
Ÿ Safety and Environment – continue the
focus on safety improvements for the
Company’s worksites, the high standard of
environmental and rehabilitation activities,
and the pursuit of appropriate carbon
reduction initiatives.
Ÿ Koolan Island – increase the mining and
export of high grade iron ore to maximise
sales and cashflow of the operation.
Ÿ Mid-West – maintain the Shine mine site
in a low-cost care and maintenance state
until assessment of iron ore market
conditions support a restart of the
operation, whilst continuing to pursue
opportunities for ongoing revenue and
value creation from the Company’s
existing Mid-West assets, including its
export infrastructure at Geraldton Port.
Complete final rehabilitation at Extension
Hill mine site.
Ÿ Cost reductions – continue to drive for
s u s t a i n a b l e p r o d u c t i v i t y a n d c o s t
improvements across all business units.
Ÿ
Treasury management – responsibly
manage the Group’s cash and financial
reserves.
Ÿ Growth – accelerate the search for
r e s o u r c e a c q u i s i t i o n a n d g r o w t h
opportunities.
By focusing on these priorities, we are
confident that Mount Gibson can continue to
navigate fluid market conditions and deliver
strong long term capital growth and dividend
returns for all shareholders.
In summary, I would like to thank my fellow
Directors and the employees and contractors
of Mount Gibson for their commitment and
efforts over the year.
I look forward to reporting improved
performance in 2023 and future years.
Lee Seng Hui
Chairman
4MOUNT GIBSON IRON LIMITED 2022 Annual Report Chief Executive Officer’s Report
Disappointingly, subsequent to the end of the
financial year, the Company suffered a fire in
the product screening area of the processing
plant at Koolan Island during a maintenance
shutdown. Importantly, no injuries were
sustained. However, while mining operations
are unaffected and access to increasing
quantities of high grade ore continues to plan,
processing will be temporarily interrupted in
the December 2022 half-year period as repairs
are undertaken and interim processing
arrangements are established utilising mobile
crushing equipment.
Koolan Island is well positioned to recover the
deferred shipments once processing capacity
returns to planned levels. Mount Gibson
continues to expect substantially improved ore
sales and a stronger overall performance in the
2022/23 financial year as it consolidates its
status as Australia’s highest grade producer of
direct-shipping hematite iron ore.
I thank the Mount Gibson Board members for
their ongoing support and guidance as we drive
production increases at Koolan Island and seek
to maximise outcomes for our shareholders.
I also thank all of Mount Gibson’s hard working
e m p l o y e e s a n d c o n t ra c t o r s fo r t h e i r
commitment throughout the last year. We can
be proud of the efforts and achievements made
in often challenging circumstances and look
forward to a substantially stronger year ahead.
Peter Kerr
Chief Executive Officer
During the 2021/22 financial year Mount
Gibson invested substantially in its business,
primarily to prepare the Koolan Island
operation for significant increases in high grade
iron ore shipments going forward. The capital
programs at Koolan Island comprised bulk
overburden stripping and upper footwall
ground support works in the Main Pit, as well as
an upgrade of the processing plant, totalling
$188.2 million.
The Company’s performance reflected this
substantial investment and associated work
programs, particularly in the first half of the
financial year, and the suspension of
operations at the Shine iron ore mine in the Mid
West in late 2021 due to rapidly deteriorating
market conditions.
Group ore sales totalled 1.65 million wet metric
tonnes (Mwmt) for the financial year,
comprising 1.35 Mwmt from Koolan Island and
0.3 Mwmt from Shine. This compared with 3.0
Mwmt in the prior year when the Mid West
business contributed substantial sales of
stockpiled lower grade material before the
Extension Hill site moved to final closure.
The Group’s cost of sales averaged $125 per
wet metric tonne (wmt) sold on a Free on Board
(FOB) basis, compared with $65/wmt sold FOB
in the prior financial year. This increase
reflected lower sales and higher costs at Koolan
Island due to the elevated waste stripping
requirements, footwall ground support works,
additional costs associated with the impact of
COVID-19 restrictions on operating efficiencies
and labour availability, and operating
expenditure incurred at Shine.
From an operational perspective, the year
comprised two very distinct halves.
In the first half of the financial year, production
at Koolan Island was restricted to reduced
volumes of mostly lower grade material from
satellite deposits and the fringes of the Main Pit
orebody as high-grade zones remained
inaccessible while the overburden stripping
program was undertaken. At Shine, where
sales commenced in August 2021, mining and
production performed in line with plan,
however a rapid decline in iron ore prices, rising
shipping freight charges and increased
discounts on iron ore products grading below
60% Fe made the operation uneconomic. The
Company consequently suspended operations
at Shine to preserve the value of the deposit
pending an improvement in market conditions.
In the second half of the financial year, Mount
Gibson achieved significant operational
improvement as the Koolan Island bulk
stripping program, upper footwall ground
support works and processing plant upgrade
progressed. These programs were either
completed or nearing completion at period end.
This enabled mining access to high-grade iron
ore zones in the Main Pit to resume from
Fe b r u a r y 2 0 2 2 o n w a r d s , f a c i l i t a t i n g
significantly improved ore production, quality
and sales, particularly in the June 2022 quarter
when exports totalled 0.7 million wmt of high-
grade ore. Importantly, shipments of high
grade 65% Fe iron ore from Koolan Island
recommenced in June 2022 and shipment
grades are expected to remain around this level
going forward.
The COVID-19 pandemic presented some
challenges, however Mount Gibson’s personnel
responded positively and the impacts were
controlled. In the first half of the year,
restrictions on entry into Western Australia
l i m i t e d t h e i n c i d e n c e o f c o m m u n i t y
transmission but also substantially reduced the
availability of skilled labour. In the second half
of the year, the emergence of more
transmissible COVID-19 variants at the same
time as the State’s border restrictions were
lifted resulted in a sharp increase in community
transmission, including among the Company’s
workforce. Mount Gibson adapted its response
measures in step with conditions to minimise
the direct impacts on its personnel and
operations. The Company acknowledges the
positive efforts of its employees and contractor
workforce in achieving this outcome.
The safety of our people remains a priority and
c o n t i n u o u s i m p r o v e m e n t i n s a f e t y
performance is a critical focus of the Company.
It was encouraging to again achieve improved
safety statistics through the year. Amid
elevated activity levels and personnel numbers
at Koolan Island, the Company recorded a
significantly reduced Lost Time Injury
Frequency Rate (LTIFR) of 1.7 incidents per
million manhours in the 12 months to the end
of June 2022, down from 4.4 in the prior year,
and a reduced Total Recordable Injury
Frequency Rate (TRIFR) of 11.4 incidents per
million manhours compared with 13.8
previously. Continued improvements are
targeted.
MOUNT GIBSON IRON LIMITED 2022 Annual Report5 Health and Safety
workforce to help ensure Mount Gibson’s
people are not injured in their workplaces.
The Company will be actively working to
achieve continuing improvements in the
coming year.
Fo r d e t a i l s o f t h e C o m p a ny ’s s a fe ty
performance, including statistics for each site,
please refer to Mount Gibson Iron’s 2022
Sustainability Report, as published on the
Mount Gibson website.
Mount Gibson is committed to maintaining a
safe work environment and safety oriented
culture in which all personnel consider both
their own wellbeing and that of their
colleagues. Continuous improvement in safety
performance is a critical focus of the Company.
Performance during the 2021/22 financial year
improved substantially compared with the
preceding year with further improvements now
targeted in safety leadership, culture and
performance. The rolling 12 month Total
Recordable Injury Frequency Rate (TRIFR)
declined to 11.4 incidents per one million
manhours worked as at 30 June 2022, down
from 13.8 at the end of the prior year. Similarly,
the Lost Time Injury Frequency Rate (LTIFR)
declined significantly to 1.7 incidents per one
million manhours worked, compared with 4.4
at the end of the prior year.
Two Lost Time Injuries (LTIs) were recorded
during the year, both at Koolan Island,
compared with seven in the previous year. The
Company’s operations at Geraldton Port were
again LTI-free and have remained so for almost
thirteen years, having recently passed 4,700
consecutive LTI-free days.
Overall safety performance is subject to
ongoing assessment by executive and site
management. This has resulted in the
implementation of a program of improvement
initiatives and increased focus on hazard
observations and task-specific safety protocols.
Mount Gibson’s definition of TRIFR includes
Lost Time Injuries, Restricted Work Injuries
and Medically Treated Injuries. Using TRIFR
provides a useful tool for safety conversations
and active communication with the entire
TRIFR
15
10
5
0
5
4
3
2
1
0
FY2018
FY2019
FY2020
FY2021
FY2022
LTIFR
FY2018
FY2019
FY2020
FY2021
FY2022
*LTIFR and TRIFR each represent incidents per one million manhours worked
6MOUNT GIBSON IRON LIMITED 2022 Annual Report Operational Review
In late August, the Company outlined its initial
recovery plan to resume ore processing at
approximately 30% of throughput capacity
utilising the unaffected parts of the processing
plant. This will be augmented by the addition of
mobile crushing equipment to site to enable a
further increase in crushing activities up to
approximately 70% of normal capacity towards
the end of September, thereby enabling the
Company to target a return to shipping rates of
around 3 shipments per month from that time.
In parallel, repairs are being undertaken to the
damaged screening plant and, depending on
equipment lead times, the main processing
plant is targeted to resume processing at full
capacity towards late 2022 or early 2023.
Subject to final assessment of the recovery plan,
the Company anticipates shipping volumes to
increase in the December 2022 quarter and then
significantly from early 2023 as the processing
plant resumes full capacity of 4-5 shipments per
month, minimising the impact on shipping
volumes targeted for the full 2022/23 financial
year. Retention of the mobile crushing
equipment may further support a production
catch-up in the June 2023 half year. Mount
Gibson maintains relevant insurance cover at
Koolan Island, and initial discussions
commenced with insurance providers during the
September 2022 quarter.
Koolan Island generated a loss before tax
of $190.9 million after recording impairment
expenses totalling $147.4 million. The
impairment reflected the Company’s normal
practice of reviewing the book carrying
values of its assets at period end in the
context of prevailing commodity prices and
market outlook.
Unit cash mining and administration costs for
the financial year, including all transport and
logistics charges for the island-based operation,
were $11.50 per tonne of ore and waste mined,
with rising costs over the year reflecting
inflationary pressures, particularly labour and
diesel fuel, and the impacts of COVID-19 related
absenteeism. The unit cash costs equated to
$119/wmt sold FOB for the financial year before
capital expenditure of $20.9 million on the upper
footwall ground support program (since
completed) and $123.3 million on overburden
stripping investment (nearing completion).
Indicative of the improved performance in the
latter part of the year, unit cash costs averaged
$77/wmt FOB in the June 2022 quarter during
which ore sales doubled to 0.7 Mwmt and
shipping of 65% Fe grade cargoes commenced.
Productivity and commercial initiatives to
reduce these costs are ongoing. As previously
reported, the Company is replacing the
primary mining fleet to better suit the future pit
design and assist with productivity, cost and
emissions objectives. The first four new trucks
arrived at site in July and August 2022, with
progressive delivery of a further four trucks
and two excavators scheduled to occur by
February 2023.
Subsequent to the end of the financial year, on
12 August 2022 a fire occurred in the product
sizing screen area within the Koolan Island
crushing plant during a scheduled maintenance
shutdown. All personnel working in the area
were evacuated and there were no injuries. The
fire damaged part of the product sizing screen
assembly, the associated feeder and conveyor
equipment, as well as some of the surrounding
steel structures in the upper levels of the
screening plant area. Mining and other site
activities were not directly affected and have
continued uninterrupted.
During 2021/22, Mount Gibson achieved total
ore sales of 1.65 million wet metric tonnes
(Mwmt), with the operational focus on
completing the Koolan Island waste stripping
program, upper footwall ground support
program and crusher upgrade works to
significantly increase high grade ore shipments
going forward. A more detailed review is
contained in the Directors’ Report.
Koolan Island
Koolan Island is located approximately 140km
north of Derby in the Kimberley region of
Western Australia.
Significant capital investment was made at
Koolan Island during the year to progress the
bulk overburden stripping program and
remedial upper footwall ground support works
in the Main Pit and to commission the
processing plant upgrade, all of which will
facilitate increased ore production, sales and
cashflow going forward. All three capital
projects were complete or nearing completion
by the end of the period.
Total material movement of waste and ore in
2021/22 was 17.4 Mwmt compared to 20.1
Mwmt in the prior year. Waste movement will
be materially lower in the 2022/23 financial
year while high grade ore volumes will be
materially higher.
Full year ore sales from Koolan Island totalled
1.35 Mwmt, of which 1.0 Mwmt was achieved in
the June 2022 half year during which mining
access was regained to the high grade orebody
in the Main Pit. Shipments of 65% Fe material
resumed in June, and sales grades are
expected to remain at this level going forward.
Sales grades averaged 64% Fe in the second
half, compared with under 59% Fe in the
December 2021 half year when production was
limited to lower grade material from the lateral
extents of the Main Pit deposit.
With the elevated phase of overburden stripping
now largely complete, the average waste to ore
stripping profile will progressively decline. After
averaging 17:1 in the December 2021 half year,
the stripping ratio reduced to 7.2:1 for the June
2022 half year period (including backfill
rehandle). In the upcoming 2022/23 financial
year the stripping ratio is anticipated to average
approximately 2:1 for the full financial year,
c o m p r i s i n g a n e x p e c t e d a v e r a g e o f
approximately 3.5:1 in the first half declining
further to around 1:1 in the second half.
MOUNT GIBSON IRON LIMITED 2022 Annual Report7 Mid-West Operations
Mid-West Rail Refund/Credit
The Mid-West operations comprise the
suspended Shine iron ore mine, transport
infrastructure and the Company’s bulk storage
facilities at the regional port of Geraldton. The
Mid-West operations incurred a loss before
interest and tax of $55.7 million for the year,
largely reflecting an impairment expense and
inventory write downs totalling $42.0 million
recorded in the December 2021 half year.
Shine
Development of the Shine project, 85km north
of the closed Extension Hill site, commenced in
late 2020. Mining operations commenced in
April 2021, with ore crushed on-site and
trucked 300km to the Company’s export
facilities at Geraldton Port. After initial
shipments were completed, the operation
suffered extreme economic pressure due to the
rapid deterioration in iron ore market
conditions, particularly for ores grading under
60% Fe, increased penalties for impurities and
a sharp increase in shipping freight costs.
Consequently, in October 2021 the Company
announced a staged suspension of operations
to preserve the value of the Shine deposit and
provide time to assess the iron ore market
outlook. Sales were completed in December
and totalled 0.3 Mwmt for the year.
Mount Gibson receives a partial refund of
historical rail access charges from the Mid-West
rail leaseholder based upon the usage by third
parties of specific segments of the railway
network. This refund is calculated at various
volume-related rates and capped at a total of
approximately $35 million (subject to
indexation) and a time limit expiring in 2031.
The entitlement accrues at a rate of
approximately $2 million per quarter, with
payments made every six months. Mount
Gibson received $8.4 million during the year,
taking total cumulative proceeds by year end to
approximately $24.3 million.
Mid-West Infrastructure
Mount Gibson continues to receive and
consider external enquiries relating to its Mid-
West infrastructure assets, in particular key
rail sidings and storage sheds, and is already
earning income from third parties for initial
arrangements. Discussions are in progress
regarding further arrangements for utilisation
of spare capacity within those infrastructure
assets.
8MOUNT GIBSON IRON LIMITED 2022 Annual Report Environment and Community
For details of the Company's environmental
performance, including information relating to
each site, please refer to Mount Gibson Iron's
2022 Sustainability Report, as published on the
Mount Gibson website.
Community Affairs
Mount Gibson values its relationship with key
stakeholders and works hard to ensure a clear
mutual understanding of its impacts from
current and future operations. To do this, the
Company has an ongoing program of
s t a k e h o l d e r c o n s u l t a t i o n w i t h i n t h e
c o m m u n i t i e s n e a r t o i t s m i n i n g a n d
infrastructure operations, and with an
additional emphasis on the recognition of
Traditional Owners and areas of special
heritage and cultural significance.
Mount Gibson’s stakeholders include its
c u s t o m e r s , s h a re h o l d e r s , e m p l oye e s ,
suppliers, landowners, Traditional Owners,
regulators, local governments, interest groups
and the broader community. The Company
works throughout each year with each of
these stakeholder groups, whether through
formal agreements and meetings or through
i n f o r m a l u p d a t e s , w i t h t h e l e v e l o f
c o n s u l t a t i o n d e p e n d e n t o n s p e c i fi c
stakeholder interests.
Mount Gibson’s approach is to actively support
its local communities, with a particular focus
on youth and education. In line with our
commitments, Mount Gibson invested in these
areas in the last 12 months, including through
d i r e c t c o n t r i b u t i o n s t o c o m m u n i t y
organisations, sponsorships, educational
scholarships and direct support for community
events and initiatives.
For specific details of Mount Gibson Iron's
c o m m u n i t y i n v e s t m e n t a c t i v i t i e s a n d
e n g a g e m e n t w i t h c o m m u n i t i e s a n d
stakeholders, including total expenditure and
information relating to each site, please refer to
Mount Gibson Iron's 2022 Sustainability Report,
as published on the Mount Gibson website.
Mount Gibson recognises that it is critical for any
successful mining organisation to have a key
focus on environmental management and
rehabilitation, and on being a responsible
community citizen. These matters drive
towards sustainable outcomes.
Sustainability refers to the conditions under
which humans and nature can coexist in a
p r o d u c t i v e m a n n e r a n d p e r m i t t h e
e n v i r o n m e n t a l , s o c i a l a n d e c o n o m i c
requirements of present and future generations.
The social and community perspective remained
a significant focus for Mount Gibson during the
2021/22 financial year.
Environment
Mount Gibson places significant emphasis on
environmental management and compliance.
The Company has focused strongly on
continuous improvement and innovation in its
environmental management activities, always
performing in a responsible manner and
ensuring a high standard of environmental
performance and compliance.
Environmental reporting is a core component of
successful environmental management with
many regulatory organisations requiring
extensive periodic reports. These include
various Western Australian Government
agencies including the Department of Mines,
Industry Regulation and Safety (DMIRS), the
Department of Water & Environmental
Regulation (DWER), the Department of
Biodiversity Conservation and Attractions and
the Department of Health. In addition, plans
associated with specific species have been
approved by the Federal Department of
Agriculture, Water and Environment (DAWE).
No notices of non-compliance, letters of warning
nor any other materially adverse findings were
tabled by any regulatory authority in relation to
the Group’s operations.
A key reporting obligation is the National
Greenhouse and Energy Reporting Scheme
(NGERS) which provides data on greenhouse
gas emissions and energy production. Diesel
combustion is Mount Gibson’s single largest
source of greenhouse gas emissions from its
mining operations. Mount Gibson’s latest
NGERS report reflects the significant level of
mining activity associated with the temporary
bulk overburden stripping phase of operations at
Koolan Island, and the transition of activity from
production to care and maintenance at the Shine
operation in the Mid-West due to rapidly
deteriorating market conditions in late 2021.
MOUNT GIBSON IRON LIMITED 2022 Annual Report9 Resources and Reserves
Total Mineral Resources and Ore Reserves by Project as at 30 June 2022
Koolan Island
Mineral Resources, above 50% Fe
Measured
Indicated
Inferred
Total at 30 June 2022
Total at 30 June 2021
Ore Reserves, above 50% Fe
Proved
Probable
Total at 30 June 2022
Total at 30 June 2021
Shine
Mineral Resources, above 50% Fe
Measured
Indicated
Inferred
Total at 30 June 2022
Total at 30 June 2021
Ore Reserves, above 55% Fe
Total at 30 June 2022
Total at 30 June 2021
Iron Hill
Mineral Resources, above 50% Fe
Total at 30 June 2022
Total at 30 June 2021
Extension Hill
Mineral Resources, above 50% Fe
Total at 30 June 2022
Total at 30 June 2021
Tonnes
millions
2.8
32.1
9.8
44.7
46.2
-
16.0
16.0
17.5
5.1
6.3
3.6
15.1
15.7
-
2.7
-
3.7
-
1.8
Fe
%
60.1
64.9
60.5
63.6
63.7
-
65.4
65.4
65.3
59.2
58.1
56.9
58.2
58.1
-
59.5
-
55.0
-
55.8
2
SiO
%
13.46
5.80
12.31
7.71
7.59
-
4.79
4.79
4.80
8.98
9.97
9.58
9.54
9.55
-
7.94
3
Al O
2
%
0.29
0.64
0.59
0.61
0.61
-
0.85
0.85
0.88
1.60
1.27
1.18
1.36
1.44
-
2.24
P
%
0.007
0.014
0.013
0.013
0.013
-
0.013
0.013
0.013
0.078
0.070
0.063
0.071
0.071
-
0.079
-
12.76
-
1.99
-
0.076
-
9.53
-
2.44
-
0.074
Discrepancies may appear due to rounding. Mineral Resources are reported inclusive of Ore Reserves. All tonnages have been
estimated as dry tonnages.
Total Group Mineral Resources and Ore Reserves as at 30 June 2022 (above 50% Fe)
Total Mineral Resources at 30 June 2022
Total Ore Reserves at 30 June 2022
Total Mineral Resources at 30 June 2021
Total Ore Reserves at 30 June 2021
Tonnes
millions
59.8
16.0
67.6
20.3
Fe
%
62.2
65.4
61.7
64.5
2
SiO
%
8.17
4.79
8.39
5.23
3
Al O
2
%
0.80
0.85
0.94
1.06
P
%
0.028
0.013
0.032
0.022
Discrepancies may appear due to rounding. Mineral Resources are reported inclusive of Ore Reserves. All tonnages have been
estimated as dry tonnages.
10MOUNT GIBSON IRON LIMITED 2022 Annual Report Resources and Reserves Continued
Material Change
The only material change in the annual reporting period was the removal of the Shine Ore Reserve after the mine was placed in care maintenance in late
2021. Non-material changes included depletion by mining at Koolan Island and Shine, and the removal of remnant Mineral Resources at the closed
Extension Hill and Iron Hill mines in the Mid-West. The Company confirms that all material assumptions and technical parameters underpinning the
estimates continue to apply and have not materially changed.
Competent Persons and Responsibilities
Mineral Resources:
The information in this report relating to Mineral Resources is based on information compiled by Elizabeth Haren, a Competent Person who is a
member and Chartered Professional of the Australasian Institute of Mining and Metallurgy and member of the Australian Institute of Geoscientists. Ms
Haren was a full-time employee of, and is a consultant to, Mount Gibson Iron Limited. Ms Haren has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012
Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’, and Ms Haren consents to the inclusion
in this report of the matters based on her information in the form and context in which it appears.
Ore Reserves:
The information in this report relating to Ore Reserves at Koolan Island is based on information compiled by Brett Morey, a member of the Australasian
Institute of Mining and Metallurgy. Mr Morey is a full-time employee of Mount Gibson Iron Limited. Mr Morey has sufficient experience that is relevant to
the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the
2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’, and Mr Morey consents to the
inclusion in the report of the matters based on his information in the form and context in which it appears.
For more information, refer to Mount Gibson’s Annual Statement of Mineral Resources and Ore Reserves at 30 June 2022 as released to the ASX and
published on the Mount Gibson website.
MOUNT GIBSON IRON LIMITED 2022 Annual Report11 Financial Report
MOUNT GIBSON IRON LIMITED AND CONTROLLED ENTITIES
ABN 87 008 670 817
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
Directors’ Report
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Balance Sheet
Consolidated Cash Flow Statement
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Report
Introduction
Term Deposits and Subordinated Notes
Financial Assets Held for Trading
1.
2. Other Significant Accounting Policies
3. Revenue and Other Income
4.
Expenses
5. Taxation
6. Cash and Cash Equivalents
7.
8.
9. Trade and Other Receivables
10. Inventories
11. Derivative Financial Assets
12. Interests in Subsidiaries
13. Property, Plant and Equipment
14. Right-of-use Assets
15. Deferred Acquisition, Exploration and Evaluation Costs
16. Mine Properties
17. Impairment of Non-Current Assets
18. Trade and Other Payables
19. Interest-Bearing Loans and Borrowings
20. Derivative Financial Liabilities
21. Provisions
22. Issued Capital
23. Reserves
24. Accumulated Losses
25. Expenditure Commitments
26. Share-Based Payment Plans
27. Earnings Per Share
28. Dividends Paid and Proposed
29. Contingent Liabilities
30. Key Management Personnel
31. Related Party Transactions
32. Auditor’s Remuneration
33. Segment Information
34. Events After the Balance Sheet Date
35. Financial instruments
36. Parent Entity Information
37. New and Amended Accounting Standards and Interpretations
Directors’ Declaration
Independent Audit Report
13
34
35
36
37
38
39
39
40
41
43
45
49
50
50
50
51
52
52
54
56
56
57
59
60
61
62
63
65
66
67
67
68
70
71
71
71
72
72
73
76
76
84
86
90
91
12MOUNT GIBSON IRON LIMITED 2022 Annual Report
Directors’ Report
Your Directors submit their report for the year ended 30 June 2022 for Mount Gibson Iron Limited (Company or Mount Gibson) and
the consolidated group incorporating the entities that it controlled during the financial year (Group).
DIRECTORS
The names and details of the Company’s Directors in office during the financial period and until the date of this report are set out below.
Directors were in office for the entire period unless otherwise stated.
Names, Qualifications, Experience and Special Responsibilities
Lee Seng Hui LLB (Hons)
Chairman, Non-Executive Director
Mr Lee was appointed as a Non-Executive Director on 29 January 2010, Non-Executive Deputy Chairman on 14 December 2012, and
Chairman on 18 February 2014. Mr Lee graduated with Honours from the University of Sydney Law School. Mr Lee is the Chief Executive
and an Executive Director of Allied Group Limited which is listed on the Hong Kong Stock Exchange. He is also the Chairman and a
Non-Executive Director of Tian An China Investments Company Limited, and a Non-Executive Director of APAC Resources Limited, one
of Mount Gibson’s substantial shareholders. Mr Lee was previously the Chairman and a Non-Executive Director of Asiasec Properties
Limited. Mr Lee has not served as a director of any other ASX or Hong Kong listed companies during the past three years.
Simon Bird B.Acc.Science (Hons) CA, FCPA, FAICD
Lead Independent Non-Executive Director
Mr Bird was appointed as an Independent Non-Executive Director on 23 February 2012. Mr Bird is the Lead Independent Director and
Chairman of the Audit and Financial Risk Committee. Mr Bird is a Chartered Accountant, Fellow of CPA Australia and Fellow of the
Australian Institute of Company Directors. Mr Bird has over 35 years of international corporate experience, including holding the
positions of Finance Director with Xpansiv Limited, General Manager Finance at Stockland Limited, Chief Financial Officer of GrainCorp
Limited, and Chief Financial Officer of Wizard Mortgage Corporation. He was also Chief Executive Officer of ASX-listed King Island
Scheelite Limited, a former Managing Director of ASX-listed Sovereign Gold Limited, a former Chairman of ASX-listed Rawson Resources
Limited and ASX-listed Tubi Group and a former Director of CPA Australia Limited. Mr Bird is a non-executive Chairman of ASX-listed
Maronan Metals Limited and former Director of ASX-listed Pacific American Holdings Limited.
Alan Jones CA
Independent Non-Executive Director
Mr Jones was appointed as an Independent Non-Executive Director on 28 July 2006 and is the current Chairman of the Nomination,
Remuneration and Governance Committee. Mr Jones is a Chartered Accountant with extensive senior management and board
experience in listed and unlisted Australian public companies, particularly in the construction, engineering, finance and investment
industries. Mr Jones has been involved in the successful merger and acquisition of a number of public companies in Australia and
internationally. He is a Non-Executive Director of Mulpha Australia Ltd, Sun Hung Kai & Co Ltd (Hong Kong), Allied Group Ltd (Hong
Kong), Allied Properties (H.K.) Limited and Air Change International Limited.
Russell Barwick Dip.Min.Eng., FAICD, FAusIMM
Independent Non-Executive Director
Mr Barwick was appointed as an Independent Non-Executive Director on 16 November 2011 and is Chairman of the Operational Risk
and Sustainability Committee. Mr Barwick is a mining engineer with 45 years of technical, operational, managerial and corporate
experience in international mining companies covering various commodities. He has worked for Bougainville Copper Limited (CRA),
Pancontinental Mining Ltd (Jabiluka Uranium) and CSR Limited (coal). He has spent 16 years with Placer Dome Asia Pacific in key
development, operational and corporate roles in numerous countries culminating in his appointment as Managing Director of Placer
Niugini Ltd. He then served as Managing Director of Newcrest Mining Limited (2000 to 2001). For the four years to the end of 2006,
Mr Barwick was the Chief Operating Officer of Wheaton River Minerals Ltd and Goldcorp Inc., based in Vancouver, Canada. He was
subsequently the Chief Executive Officer of Canada-based Gammon Gold Inc. before returning to Australia in 2008. His extensive
geographic and corporate mining experience ranges from: Latin America, North America, Europe, Africa and Asia Pacific. He is currently
the Chairman of ASX-listed Red Metal Ltd, a non-executive director of ASX-listed Lithium Power International and its unlisted associate
Minera Salar Blanco S.A. (Chile) and former non-executive director of Regis Resources Ltd.
Professor Paul Dougas B.Eng (Chem), M.Eng.Science, FAICD, CEng., Hon Fellow Engineers Australia, FATSE
Independent Non-Executive Director
Professor Dougas was appointed as an Independent Non-Executive Director on 16 November 2011 and is Chairman of the Contracts
Committee. He has 40 years of design, process, project engineering, managerial, commercial and corporate experience having
commenced his career in the Melbourne & Metropolitan Board of Works before joining engineering firm Sinclair Knight Merz (SKM) in
1978. From initial technical roles, he assumed leadership roles in Sydney before returning to Melbourne as Associate Director and
Victorian Branch Manager in 1985. In 1995 he was appointed Managing Director Elect and Director of Marketing before becoming Chief
Executive Officer and Managing Director in 1996. For the following 15 years, he led a significant expansion of SKM locally and
internationally involving more than 50 local and international acquisitions. Professor Dougas was a Non-Executive Director of
ConnectEast Ltd from 2009 until its takeover in September 2011 and was also on the SKM Board from 1990 until 2011. He is currently
a Non-Executive Director of Epworth Healthcare and is a former Chairman of the Global Carbon Capture and Storage Institute, and
Norman, Disney & Young and a former Non-Executive Director of Beacon Foundation and Calibre Group Limited. Professor Dougas is
also a Professorial Fellow in the School of Engineering at Melbourne University and a staff member.
MOUNT GIBSON IRON LIMITED 2022 Annual Report13
Ding Rucai
Non-Executive Director
Mr Ding was appointed to the Board on 12 December 2019. Mr Ding is the Chairman and executive director of Hong Kong listed
Shougang Fushan Resources Group Limited (Shougang Fushan). Shougang Fushan is Mount Gibson’s second largest shareholder.
Shougang Fushan also hold a significant share interest in APAC Resources Limited, Mount Gibson’s largest shareholder. Mr. Ding is also
a director of Shougang Holding (Hong Kong) Limited, a company wholly owned by Shougang Group Co., Ltd. A senior engineer with a
doctoral degree in ferrous metallurgy from the University of Science and Technology Beijing, Mr Ding has more than 30 years’ experience
in the steel and coal resources industry, having held a variety of senior management and executive roles since joining the Shougang
organisation in 1989.
Andrew Ferguson
Alternate Director to Lee Seng Hui
Mr Ferguson was appointed Alternate Director to Lee Seng Hui on 24 September 2012. Mr Ferguson is Chief Executive Officer and an
Executive Director of APAC Resources Ltd, one of Mount Gibson’s substantial shareholders. Mr Ferguson holds a Bachelor of Science
Degree in Natural Resource Development and worked as a mining engineer in Western Australia in the mid 1990’s. He has over 20 years
of experience in the finance industry specialising in global natural resources. In 2003, Mr Ferguson co-founded New City Investment
Managers in the United Kingdom. He was the former co-fund manager of City Natural Resources High Yield Trust, and managed New
City High Yield Trust Ltd and Geiger Counter Ltd. He has also worked as Chief Investment Officer for New City Investment Managers
CQS Hong Kong.
COMPANY SECRETARY
David Stokes B.Bus, LLB, ACIS
Company Secretary & General Counsel
Mr Stokes was appointed Company Secretary and General Counsel on 2 April 2012. He is a corporate lawyer with a diverse range of
mining, commercial and governance experience having worked at a corporate and operational level in the energy and resources sectors
for over 20 years. Prior to joining Mount Gibson, Mr Stokes was General Counsel and Company Secretary at Gindalbie Metals Limited,
Corporate Counsel for Iluka Resources Limited and Resolute Mining Limited, and has also worked in private practice for a number of
years.
CORPORATE INFORMATION
Corporate Structure
Mount Gibson is a company limited by shares that is incorporated and domiciled in Australia. It is the ultimate parent entity and has
prepared a consolidated financial report incorporating the entities that it controlled during the financial year. The structure of the Group
as at 30 June 2022 was as follows:
14MOUNT GIBSON IRON LIMITED 2022 Annual Report
Nature of Operations and Principal Activities
The principal activities of the entities within the Group during the year were:
mining, processing and direct shipment of hematite iron ore at the Koolan Island mine site in the Kimberley region of Western
Australia;
mining and processing of hematite iron ore at the Shine mine site in the Mid-West region of Western Australia, and haulage of the
ore via road for export from the Geraldton Port;
treasury management; and
the pursuit of mineral resources acquisitions and investments.
Employees
The Group employed 337 employees (excluding contractors) as at 30 June 2022 (2021: 355 employees).
OPERATING AND FINANCIAL REVIEW
Introduction
The Board presents the 2021/22 Operating and Financial Review which has been prepared to provide shareholders with a clear and
concise overview of Mount Gibson’s operations, financial position and business strategies. This review also provides a summary of the
impact of key events which occurred in 2021/22 and the material business risks so that shareholders can make an informed assessment
of the results and prospects of the Group.
The review complements Mount Gibson’s financial statements for the year ended 30 June 2022 and has been prepared in accordance
with Regulatory Guidance 247 published by the Australian Securities and Investments Commission (ASIC).
Overview of the 2021/22 Financial Year
During the financial year ended 30 June 2022, the Company’s primary focus was on its key capital investment programs at Koolan Island
to deliver increasing ore production and cashflow over the remaining mine life, and first shipments from the Shine Iron Ore Project in
the Mid-West.
The capital programs at Koolan Island comprised bulk waste stripping and upper footwall ground support works in the Main Pit, and
completion and commissioning of the processing plant upgrade. Due to the ongoing capital works in the Main Pit, in the first half of the
year, production was restricted to limited volumes of mostly lower grade material from satellite deposits and the fringes of the Main Pit
deposit as high-grade zones in Main Pit remained inaccessible.
Ore sales from Shine commenced in August 2021, at the same time as the benchmark Platts 62% Fe iron ore prices fell dramatically
from the peaks above US$230 per dry metric tonne (dmt) CFR in May 2021 to lows under US$90/dmt in November 2021. This volatility
and decline in iron ore prices, together with increased discounts applied to ore grading below 60% Fe, rapidly rising shipping freight
charges and high road haulage costs from the site to Geraldton Port, made continued operation uneconomic. The Company suspended
operations at the newly developed site in order to preserve its value, pending an improvement in market conditions that could potentially
support a resumption of operations.
In the second half of the year, iron ore prices partially recovered, although the emergence of more transmissible variants of the COVID-19
and reopening of the Western Australian state border saw rising community transmission rates which caused increased absenteeism
and reduced availability of site labour. Inflationary pressures also escalated due to COVID-19 related impacts on global supply chains
and issues associated with the Ukraine-Russia conflict in Europe.
While external conditions were challenging, Mount Gibson achieved significant operational improvement in the June half of the year as
the Koolan Island bulk stripping program, upper footwall ground support works and processing plant upgrade were either completed or
nearing completion at period end. This enabled mining access to high-grade ore zones in Main Pit from February 2022 onwards,
facilitating significantly improved ore production, quality and sales, particularly in the June quarter when 0.71 million wet metric tonnes
(Mwmt) of high-grade ore were exported.
Group ore sales in 2021/22 totalled 1.65 Mwmt comprising 1.35 Mwmt from Koolan Island and 0.29 Mwmt from the suspended Shine
operation in the Mid-West, generating total ore sales revenue of $141,832,000 including shipping and freight services and provisional
pricing adjustments, and $132,214,000 on a Free on Board (FOB) basis, before $1,131,000 in realised losses from foreign exchange
hedging contracts. This compared with Group ore sales of 3.0 Mwmt in the prior financial year which generated total sales revenue of
$327,698,000 including shipping and provisional pricing adjustments and $309,623,000 on a FOB basis, before $2,029,000 in realised
gains from foreign exchange hedging and commodity collar option contracts.
As noted above, iron ore prices were highly volatile over the course of the financial year, with the benchmark Platts 62% Fe price falling
from US$218/dmt CFR in July 2021, to a low of US$87/dmt in November 2021. The price subsequently recovered partially to a peak of
US$163/dmt in March 2022, before ending the financial year at US$120/dmt and averaging US$138/dmt for the 12 month period. The
price of 65% Fe grade ore averaged US$162/dmt CFR for the year, 7% lower than the prior year, reflecting an average grade-adjusted
premium to the Platts 62% Fe Index of approximately 13%. Lower grade ores were substantially more volatile, with the Platts index
price for ores grading 58% Fe averaging over 26% lower than the prior year at US$101/dmt, reflecting an average discount of
approximately 24%. The value of the Australian dollar was also volatile over the year, trading in a range between A$1.00/US$0.75 and
US$0.68, to average US$0.72 for the financial year. This compared with an average of US$0.75 in the prior year.
MOUNT GIBSON IRON LIMITED 2022 Annual Report15
Mount Gibson achieved an average realised price for all products sold in the year (including realised losses on foreign exchange hedging
contracts) of $80/wmt FOB, net of shipping freight, compared with $103/wmt FOB in 2020/21. This reflected the sale of lower grade
ore from Koolan Island and Shine in the December 2021 half year, before the return to high-grade ore sales from Koolan Island in the
June 2022 half year. Sales from Koolan Island, after post-balance date provisional pricing adjustments, realised an average price of
US$61/dmt FOB for the year, including an average realised price of US$87/dmt FOB for Koolan Island fines in the June half year in
which the sales grade averaged 64% Fe. Sales from Shine in the Mid-West realised an average price of US$59/dmt FOB for fines and
US$82/dmt FOB for lump.
The Company recorded a loss before impairment and tax of $63,608,000. After pre-tax impairment expenses totalling $184,633,000,
the Company recorded a net loss after tax of $174,116,000 for the year ended 30 June 2022, compared with a net profit after tax of
$64,006,000 in the prior financial year, reflective of the factors noted above and the lower overall sales revenue generated by the
reduced volume of ore sold relative to the preceding year.
The total cost of sales for the year was $215,483,000 including royalties and shipping freight costs. On an FOB basis, excluding shipping
freight, the total cost of sales was $205,865,000 which equated to $125/wmt sold, compared with $65/wmt sold in the prior financial
year. This increase reflected lower sales and higher costs at Koolan Island due to elevated waste stripping requirements, footwall
ground support works, additional costs associated with the impact of COVID-19 restrictions on operating efficiencies and labour
availability, and operating expenditure incurred at Shine.
Total cash reserves, comprising cash and cash equivalents, term deposits and subordinated notes, financial assets held for trading and
dual currency deposits, decreased by $239,150,000 over the year to a total of $125,573,000 as at 30 June 2022, reflecting substantial
capital investment at Koolan Island, higher operating costs as noted, ramp-up and suspension costs incurred at Shine, and the reduced
ore sales achieved in the year.
COVID-19 Business Response
Since the emergence of the COVID-19 global pandemic in March 2020, Mount Gibson has progressively adapted its response in step
with changing circumstances and government restrictions, including mandatory workforce vaccination, to minimise the impact on its
workforce, operations and host communities. In the first half of the 2021/22 year, restrictions on entry into Western Australia minimised
community transmission but also limited the availability of skilled labour. In the second half of the 2021/22 year, the emergence of
more transmissible COVID-19 variants at the same time as removable of the State’s border restrictions, resulted in a sharp increase in
community transmission, including among the Company’s workforce.
With the onset of increased community transmission of the Omicron variant in Western Australia, the Company enhanced its screening,
testing and transmission-mitigation measures. Onsite operational productivity was temporarily impacted in the June half as COVID-19
transmission rates peaked in Western Australia. Daily COVID-19 absenteeism, where individuals were unable to work either because
they had contracted COVID-19 or because they were close contacts of someone with COVID-19, peaked at approximately 15% in May
2022 then moderated to below 5% in June 2022 consistent with local transmission rates. The positive response of the Company’s
employees and contractor workforce is acknowledged.
Operating Results for the Financial Year
The summarised operating results for the Group for the year ended 30 June 2022 are tabulated below:
Year ended: 30 June 2022
30 June 2021
30 June 2020
30 June 2019
30 June 2018
Net profit/(loss) before tax
Taxation (expense)/benefit
Net profit/(loss) after tax
$’000
$’000
$’000
(248,241)
74,125
(174,116)
Earnings/(loss) per share
cents/share
(14.55)
92,133
(28,127)
64,006
5.46
120,717
(36,519)
70,462
62,907
99,129
-
84,198
133,369
99,129
7.35
11.98
9.08
16MOUNT GIBSON IRON LIMITED 2022 Annual Report
Consolidated quarterly operating and sales statistics for the 2021/22 financial year are tabulated below:
Unit
kwmt
kwmt
kwmt
kwmt
kwmt
kwmt
kwmt
kwmt
Consolidated Group
Mining & Crushing
Total waste mined
Total ore mined
Total ore crushed
Shipping/Sales
Standard Lump
Standard Fines
Low grade Lump
Low grade Fines
Total
Ave. Platts 62% Fe
CFR northern China price
MGX FOB average realised fines price
– Koolan*
MGX FOB average realised lump price
– Mid-West
MGX FOB average realised fines price
– Mid-West
kwmt = thousand wet metric tonnes
Sept
Quarter
2021
Dec
Quarter
2021
Mar
Quarter
2022
Jun
Quarter
2022
Year
2021/22
Year
2020/21
7,131
4,519
3,411
3,728
18,789
20,572
585
635
119
-
-
320
439
236
319
59
137
-
60
256
325
258
-
238
-
-
662
645
-
713
-
-
238
713
US$/dmt
163
110
142
138
US$/dmt
US$/dmt
US$/dmt
-
91
-
-
63
59
81
93
-
-
-
-
1,808
1,857
178
1,088
380
1,646
138
90
82^
59
2,064
2,629
-
1,781
888
346
3,016
154
104
43
30
US$/dmt = USD per dry metric tonne
CFR = cost and shipping freight included; FOB = free on board (i.e. cost and shipping freight excluded).
Realised FOB prices are shown after shipping freight and specification adjustments/penalties and before provisional pricing adjustments from prior
periods.
* Realised Koolan prices for the September and December 2021 quarters were minimal (
2. APAC RESOURCES INVESTMENTS LIMITED
3. TRUE PLUS LIMITED
4. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
5. CITICORP NOMINEES PTY LIMITED
6. J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
7. DEBORTOLI WINES PTY LIMITED
8. NATIONAL NOMINEES LIMITED
220,257,802
209,867,038
163,866,874
115,753,067
86,772,277
48,924,094
38,251,310
22,698,457
9. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
19,495,170
10. NATIONAL NOMINEES LIMITED
11. BNP PARIBAS NOMINEES PTY LTD
12. BNP PARIBAS NOMS PTY LTD
13. FIRST SAMUEL LTD ACN 086243567
14. MR PETER WALKER KERR
15. BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD
16. SAVIVE PTY LTD
17. MR DAVID JOHN STOKES
18. BNP PARIBAS NOMS (NZ) LTD
19. MR MARK MITCHELL
20. DR MARK BOFINGER
Top 20 Holders
Total Remaining Holders Balance
Total Issued Ordinary Shares
14,542,714
7,872,798
7,251,190
4,850,000
4,770,803
2,777,095
2,757,262
2,639,035
2,577,710
2,260,300
2,183,686
18.14
17.28
13.49
9.53
7.15
4.03
3.15
1.87
1.61
1.20
0.65
0.60
0.40
0.39
0.23
0.23
0.22
0.21
0.19
0.18
980,368,682
234,050,651
1,214,419,333
80.73
19.27
100.00
98MOUNT GIBSON IRON LIMITED 2022 Annual Report
Additional ASX Information Continued
(c) Substantial Shareholders
The names of Substantial Shareholders who have notified the Company in accordance with section 671B of the Corporations Act
2001 are provided below, together with details, as at the date of the Substantial Shareholder notification:
1.
APAC Resources Limited and its subsidiaries
Allied Properties Investments (1) Company Limited and its related corporate entities
2.
Note: Substantial shareholdings 1 and 2 are not cumulative and arise through common shareholdings.
Number of
Shares
452,767,297
452,767,297
% of current
issued share
capital
37.40%
37.40%
Shougang Corporation and Shougang Concord International Enterprises Company Limited
and each of their controlled entities
154,166,874
13.64%
3.
4.
Shougang Fushan Resources Group Limited, True Plus Limited
and its subsidiaries
Note: Substantial shareholdings 3 and 4 are not cumulative and arise through common shareholdings.
154,166,874
13.64%
99,257,920
71,047,145
8.19%
5.87%
5.
6.
Paradice Investment Management Pty Ltd
FMR LLC and related entities
(d) Voting rights
All ordinary Shares carry one vote per Share without restriction.
No voting rights attach to options.
(e) Schedule of interests in mining tenements
Location
Tenements Held by MGX
Extension Hill
Extension Hill
Extension Hill
Koolan Island
Koolan Island
Koolan Island
Koolan Island
Koolan Island
Tallering Peak
Tallering Peak
Tallering Peak
Tallering Peak
Tallering Peak
Tallering Peak
Tallering Peak
Tallering Peak
Tallering Peak
Tallering Peak
Tallering Peak
Tallering Peak
Tallering Peak
Tallering Peak
Tenement
Status
Percentage Held
L70/133
G70/232
G70/238
M04/416-I
M04/417-I
E04/1266-I
L04/29
L04/68
M70/1062-I
M70/896-I
E70/3732
E70/5298
L70/60
L70/69
L70/73
L70/74
G70/192
G70/201
G70/202
G70/203
G70/204
G70/205
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
MOUNT GIBSON IRON LIMITED 2022 Annual Report99 (e) Schedule of interests in mining tenements (continued)
Location
MGX Has Interests In
Tenement
Status
Percentage Held
Extension Hill
Extension Hill
Extension Hill
Extension Hill
Extension Hill
Extension Hill
Extension Hill
Extension Hill
Extension Hill
Extension Hill
Extension Hill
Extension Hill
Extension Hill
Extension Hill
Extension Hill
Extension Hill
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Fields Find
1
Fields Find
1
Fields Find
1
Fields Find
1
Fields Find
1
Fields Find
1
Shine
2
Shine
2
Shine
2
Murchison
3
Murchison
3
M59/338-I
M59/339-I
M59/454-I
M59/455-I
M59/550-I
M59/526-I
M59/609-I
L59/63
G59/30
G59/31
G59/45
G59/33
G59/34
G59/35
G59/36
G59/41
E59/1268-I
M59/63-I
E59/1996
E59/1997
E59/2382
E59/2383
M59/406-I
M59/421-I
M59/731-I
E09/2266
E09/2499
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Pending
Tenements are held by another party. MGX has rights to Hematite, Goethite and Limonite.
Tenements are held by another party. MGX has rights to Iron on a portion of these tenements.
Tenements are held by another party. MGX is in a Farm-in and JV to earn 75% of these tenements.
1
2
3
100MOUNT GIBSON IRON LIMITED 2022 Annual Report
Notes
MOUNT GIBSON IRON LIMITED 2022 Annual Report101 Notes
102MOUNT GIBSON IRON LIMITED 2022 Annual Report Mount Gibson Iron Limited is an established Australian producer and exporter of iron ore.
The Company was incorporated in 1996 and was listed on the Australian Securities
Exchange in 2002.
The Company seeks to provide sustainable, long-term returns to shareholders by optimising
its existing operations and growing long-term profitability through the discovery,
development, participation in and acquisition of mineral resources.
Headquartered in Perth, Western Australia, Mount Gibson’s primary operating asset is the
Koolan Island mine off the Kimberley coast in the remote north-west of the State. In the
Mid-West region of WA, Mount Gibson holds key export infrastructure at Geraldton Port, the
suspended Shine Iron Ore Mine and prospective mining and exploration tenure in the region.
Our MGX Values provide us with a behavioural guide on how to sustainably deliver
shareholder value. It includes always putting the health and safety of our people first,
working together with the communities in which we operate, and undertaking our
activities in an environmentally responsible and sustainable manner.
MGX Values
COURAGE
INTEGRITY
SAFETY
AGILITY
RESPECT
Taking and giving feedback
Do what you say you will do
Make timely decisions
Genuine care for self
and others
Be approachable and open
to other points of view
Be prepared to admit
being wrong
Do the right thing, even
when no one is looking
Constant concern
(hazard identification)
Be dynamic and
embrace change
Treat others as you would
expect to be treated
Challenge the norm
constructively
“walk the talk”
Actively intervene
to improve
Grab the opportunity
Encourage and develop
people
Make the hard calls
Corporate Directory
All information correct as at 30 June 2022
Board of Directors
Auditors
Lee Seng Hui
Chairman, Non-Executive Director
Alan Jones
Non-Executive Director
Ding Rucai
Non-Executive Director
Russell Barwick
Non-Executive Director
Paul Dougas
Non-Executive Director
Simon Bird
Non-Executive Director
Company Secretary
David Stokes
Registered Office
Level 1, 2 Kings Park Road
West Perth 6005, Western Australia
Telephone: +61 8 9426 7500
Facsimile: +61 8 9485 2305
Email:
Website: www.mtgibsoniron.com.au
admin@mgx.com.au
Solicitors
Herbert Smith Freehills
Level 36, QV1 Building
250 St George’s Terrace
Perth 6000, Western Australia
Ernst & Young
Ernst & Young Building
11 Mounts Bay Road
Perth 6000, Western Australia
Bankers
HSBC Bank Australia Ltd
188-190 St George’s Terrace
Perth 6000, Western Australia
Stock Exchange Listing
The company’s shares are listed on the Australian Securities Exchange.
ASX Code: MGX
Share Registry
Computershare Investor Services Pty Ltd
Level 11, 172 St George’s Terrace
Perth 6000, Western Australia
Telephone: 1300 787 272
Facsimile: +61 8 9323 2033
Annual General Meeting of Shareholders
Mount Gibson will hold a hybrid AGM at 10:30am AWST (1:30pm AEDT)
on Wednesday 9 November 2022. Information explaining how
shareholders who are unable to attend the meeting in person may
access, vote and ask questions at the meeting is provided in the
Company’s Notice of AGM released to the ASX in October 2022.
Easy Access to Information
See our website at www.mtgibsoniron.com.au for regular quarterly
reports and financial results. Additionally, shareholders or interested
parties can register to receive emailed updates shortly after the
company makes any regular or major announcement.
2
MOUNT GIBSON IRON LIMITED 2022 Annual Report
MOUNT GIBSON IRON LIMITED 2022 Annual Report
103
www.mtgibsoniron.com.au