Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — Investor Presentation (June 2013)
24 slides from Bci Minerals's investor presentation, Jun 12, 2013
Slide 1: ASX cover letter: East Coast presentations
For personal use only 12 June 2013 The Manager Company Announcements Office Australian Securities Exchange Dear Sir, BC Iron Limited (ASX: BCI) The following presentation is to be given at two events on the East Coast of Australia on 12 and 13 June 2013. Yours faithfully, ANTHEA BIRD COMPANY SECRETA
Slide 2: East Coast Presentation
For personal use only East Coast Presentation Morgan Ball – Managing Director 1 June ‘13
Slide 3: Attractive Investment Proposition
ATTRACTIVE INVESTMENT PROPOSITION For personal use only Scale & liquidity: ASX 300 member, liquidity significantly enhanced post Dec 12 TSR focus: Outperformed peers on TSR basis FY13 to date Capital Management: Robust balance sheet, conservative gearing, sustainable franked dividends At tar
Slide 4: Corporate Overview
CORPORATE OVERVIEW For personal use only Capital Structure Share Price and Volume $4.50 5 Ordinary Shares 123.2m Share Price (at 6-June-13) $3.03 $4.00 4 Volume (m) Share Price Market Capitalisation $373m $3.50 3 Cash (at 31-Mar-13) $100m $3.00 2 Debt (at 31-Mar-13) $139m $2.50 1 Enterprise Value $4
Slide 5: Peer Comparison
PEER COMPARISON For personal use only Total Shareholder Return – FY13 to Date BC Iron has outperformed other mid-tier ASX-listed 40% 28% 20% iron ore companies on a total shareholder return - basis since Jul 12 – driven by: (20%) (6%) (40%) Continued strong operational performance (29%) (37%) (60%
Slide 6: Nullagine Joint Venture (NJV)
NULLAGINE JOINT VENTURE (NJV) For personal use only A producing DSO project with access to world-class infrastructure. Unincorporated joint venture – 75% BC Iron, 25% FMG BC Iron is the Operator and Manager of the NJV FMG provides rail & port services (through its wholly-owned infrastructure s
Slide 7: Mining - Overview
MINING - OVERVIEW For personal use only A fully contracted operation - low capital intensity. Contract mining by WATPAC, utilising Wirtgen and Vermeer surface miners Mine plan comprises four deposits Currently mining Outcamp and Warrigal Bonnie East commences in FY15 and Coongan in FY17 Mi
Slide 8: Mining – Surface Miners
MINING – SURFACE MINERS For personal use only Mining panels with Mined material in stocks Surface Miners Wirtgen & Vermeer Surface Miners Rotating drum cutters – no drill & blast Environmental benefits, reduced run off Provides primary crushing 7 Surface mining results in reduced equipment w
Slide 9: Processing and Logistics
PROCESSING AND LOGISTICS For personal use only Crushing / Screening (WATPAC) Road Haulage (Toll & Roadtrim) Rail and Port Services (FMG/TPI) Main plant upgrade now Ore trucked via private sealed World class rail and port complete road to dedicated stockyard at Access to Capesize vessels up C
Slide 10: NJV Operational Performance
NJV OPERATIONAL PERFORMANCE For personal use only Ore Mined (wmt) Ore Processed (wmt) Ore Shipped (wmt) 1.6 1.6 1.6 1.4 1.4 1.4 1.2 1.2 1.2 1.0 1.0 1.0 0.8 0.8 0.8 0.6 0.6 0.6 0.4 0.4 0.4 0.2 0.2 0.2 0.0 0.0 0.0 9
Slide 11: Production Rates
PRODUCTION RATES For personal use only Production Profile & BBSO Exploration Target 22.5 20.0 million tonnes 17.5 15.0 12.5 10.0 7.5 5.0 “Project Inventory” 2.5 BBSO - DSO 0.0 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Ore (dmt) Waste (dmt) Forecast productio
Slide 12: Reserve Replacement & Project Inventory
RESERVE REPLACEMENT & PROJECT INVENTORY For personal use only History of Reserve replacement Project Inventory assessing potential for further increases in Reserves and mine life Bonnie East added to Reserves in FY12 Results to date are encouraging Grade control drilling delivered increase
Slide 13: Guidance
GUIDANCE For personal use only Platts CFR62 price of ~US$113/dmt on 6 June 13 LOM guidance of A$45-50/wmt FOB FY13 JV production guidance ~5Mt (BC iron equity share ~3.2Mt) FY14 JV production guidance ~6Mt (BC Iron equity share ~4.5Mt) Underlying FOB C1 cash operating costs of A$45-50/wmt over
Slide 14: China Growth
CHINA GROWTH For personal use only Long term growth to support iron ore industry. Global Steel Stock Inventory (1950-2012) Japan 30 GDP growth metrics strong, particularly given Germany 29 now the 2nd largest economy in the world Taiwan 27 South Korea 23 C anada 22 Urbanisation process expected
Slide 15: Bonnie Fines Overview
BONNIE FINES OVERVIEW For personal use only Bonnies Fines well accepted - consistent demand. “Bonnie Fines” pisolite sinter blend improves sintering productivity at the steel mill High calcined Fe driven by high Loss On Ignition (LOI) Low impurities, low ultra-fines and low moisture Low Al a
Slide 16: Bonnie Fines Marketing & Pricing
BONNIE FINES MARKETING & PRICING For personal use only BCI CFR Received Price vs. Platts CFR62 Price ~2.6Mtpa of 6Mtpa NJV production is committed $200 Gap between BCI received price to Henghou over next 6 years at a discount to & Platts price expected to $180 Platts CFR62 price (after Fe adjustme
Slide 17: Business Development
BUSINESS DEVELOPMENT For personal use only Goals Retain and enhance ability to pay dividends Generate value for shareholders (risk adjusted) via organic and inorganic opportunities Three Priorities Brazilian Exploration Projects Priority 1 – extend life of NJV (Project Inventory) 2 MOUs ente
Slide 18: Appendices
APPENDICES For personal use only APPENDICES 17
Slide 19: Financial Performance
FINANCIAL PERFORMANCE For personal use only Half Years Jun 2011 Dec 2011 Jun 2012 Dec 2012 NJV (100%) Tonnes Shipped (m wmt) 0.25 1.09 2.46 2.28 Average CFR price realised (US$/dmt) $161 $125 $124 $100 C1 Cash Costs (A$/wmt) N/A $64 $48 $47 BC IRON Revenue (A$m) 16.4 63.4 141.1 103.8 EBITDA (A$m) (2
Slide 20: BC Iron Limited – Board
BC IRON LIMITED – BOARD For personal use only Board of Directors Tony Kiernan, Non-exec Chairman – formerly a solicitor Terry Ransted, Non-exec Director – a geologist with with extensive experience in management and operation Alkane Resources managing exploration and of Australian public companies.
Slide 21: Ore Reserves & Mineral Resources - Dec '12
ORE RESERVES & MINERAL RESOURCES - 31 DEC ‘12 For personal use only Ore Reserves NJV (BC Iron 75%, FMG 25%) Classification Mt Fe% CaFe% Al2O3% SiO2% P% S% LOI Proved 19.4 57.4 65.0 1.9 3.2 0.016 0.013 11.7 Probable 20.5 56.9 64.8 2.0 2.9 0.014 0.010 12.2 Total 39.9 57.1 64.9 1.9 3.1 0.015 0.011 12.0
Slide 22: Competent Persons Statements
COMPETENT PERSONS STATEMENTS For personal use only JORC Competent Persons Statement The information that relates to the Mineral Resource Estimate at Outcamp, Coongan, and Warrigal has been compiled by Mr Mike Young who is a Member of the Australian Institute of Geoscientists a former employee (and c
Slide 23: Important Notice
IMPORTANT NOTICE For personal use only This document has been prepared by BC Iron Limited (“BC Iron” or “Company”) to provide an update of BC Iron to investors and potential new shareholders. Past performance Past performance information given in this document is given for illustrative purposes only
Slide 24: For personal use only
For personal use only Level 1, 15 Rheola Street West Perth, WA, Australia Phone : +61 8 6311 3400 email : info@bciron.com.au www.bciron.com.au