Bougainville Copper Limited · ASX:BOC
Bougainville Copper — Corporate Update (January 2025)
26 slides from Bougainville Copper's corporate update, Mar 5, 2025
Slide 1: ABG Briefing Presentation: Panguna Mine Project
For personal use only ABG Briefing Presentation PANGUNA MINE PROJECT Buka, Bougainville January 28, 2025
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer For personal use only The presentation titled “Panguna Mine Project – ABG Briefing Presentation” dated January 28, 2025 has been prepared by Bougainville Copper Limited (ASX: BCL) (Company). By accepting, accessing or reviewing this presentation, you acknowledge and a
Slide 3: Important Notice and Disclaimer (cont'd)
Important Notice and Disclaimer (cont’d) For personal use only Forward looking information This presentation contains certain forward-looking statements that involve risks and uncertainties. the Company can give no assurance that these expectations will prove to be correct. You are cautioned not to
Slide 4: BCL Team Introduction
BCL Team Introduction For personal use only Sir Melchior Togolo – BCL Chairman § Sir Mel has over 45 years of experience in public and private sector senior management roles including 35 years directly related to the mining and petroleum industries. This includes 15 years of experience with the Nort
Slide 5: BCL Team Introduction (cont'd)
BCL Team Introduction (cont’d) For personal use only Derrick Kelly – BCL Corporate Advisor § Mr. Kelly has worked in PNG for more than 20 years in the mining industry at the Lihir, Hidden Valley and Ok Tedi mine sites. He is an Engineering Geologist and has held senior roles in managing mines, proce
Slide 6: Outline
Outline For personal use only 1. BCL status update. 2. High-level summary of the Panguna Mine Project. 3. Bougainville economic modelling results. 4. Potential future funding structures. 5. Critical ingredient of success. 6. Next steps.
Slide 7: Meeting Objectives
Meeting Objectives For personal use only 1. Provide ABG with an overview of the Panguna Mine Project. 2. Present preliminary indications of potential benefits (direct and indirect). 3. Discuss potential funding structure and philosophy. 4. Obtain formal approval and support from ABG, as the governin
Slide 8: Bougainville Copper Limited Current Status
Bougainville Copper Limited Current Status For personal use only Ø Bougainville Copper Limited (BCL) is an ASX listed company § Following transfer of shares from Rio Tinto in 2016: § 36.45% is held by the ABG and landowners. § 36.45% is held by the PNG government who have committed to transfer to th
Slide 9: 2024 Milestones
2024 Milestones EL01 & LACA For personal use only Ø On 31 January 2024, ABG Minister for Mineral and Energy Resources, Hon. Ishmael Toroama granted BCL a 5-year extension of EL01 (Panguna). Ø The Landowner Access Compensation Agreement (LACA) was signed on 6 November 2024 . Ø Both are totemic and si
Slide 10: Project Progress
Project Progress Business Cases & Investment Structures Prepared For personal use only Ø BCL’s Intellectual Property (IP) relating to the Panguna deposit is a significant and valuable asset § Comprises a significant amount of geological data, technical reports & studies. Ø BCL has engaged specialist
Slide 11: Location & General Arrangement
Location & General Arrangement EL01 & Future Lease Requirements For personal use only Port & Power Access Road / Transmission Lines Potential Tailings Storage Facility Accommodation (TSF) Airport Office / EL01 - Mine / Mill / Storage Waste Rock Storage Historical Tailings Jaba Water Disposal Area Su
Slide 12: Project Scale: Panguna's Enormous Potential
Project Scale Panguna’s Enormous Potential For personal use only Ø JORC Compliant Resource Statement as of 31 December 2023. Ø With a resource of ~9.3Mt Copper equivalents (Cu EQ), Panguna compares favorably to other similar deposits. Ø Significant potential for additional mineralisation in pit (ope
Slide 13: Project Scale: Production & Financial Modelling
Project Scale Production & Financial Modelling For personal use only Ø Indicative production averages: § Copper production of 150,000 t Cu & gold production of 500,000 oz Au per annum. § Mining rate of 110 million tonnes pa; Processing rate - start at 20 Mtpa and ramp up to 60 Mtpa. Ø Conservative a
Slide 14: Bougainville Economy: Modelling of Indirect Benefits
Bougainville Economy Modelling of Indirect Benefits For personal use only Ø Modelling conducted by Dr. Theo Levantis and Prof. Satish Chand (UNSW) both of whom have extensive experience in PNG. Ø PNG Government’s computerised General Equilibrium Model (PNGGEM) was used. Ø Three scenarios modelled: §
Slide 15: Economic Modelling Key Assumptions
Economic Modelling Key Assumptions For personal use only Ø Taxation – in line with current policy, no tax holidays and any taxes paid to PNG Government will be transferred back to ABG. Ø Construction period ~ 4 years. Ø Conservative metal prices (US$): § $3.50/lb Copper; $1,500/oz Gold; $20/oz Silve
Slide 16: Results: Gross Domestic Product
Results Gross Domestic Product For personal use only Ø Results are relative to the BAU scenario. Ø Increases sharply once mine production starts. Ø Mine production peaks in Year 7. Ø After Year 7, trajectories start to diverge depending on Good Governance vs. Wasteful Spending Scenarios
Slide 17: Results: Employment Numbers
Results Employment Numbers For personal use only Ø “Dutch disease” accounted for in modelling § (i.e. resource project “crowding out” other export sectors economy) Ø In both scenarios, Dutch disease causes rural employment to take a hit as soon as mine production commences. Ø Significant difference
Slide 18: Key Messages from Modelling Results
Bougainville Economy Key Messages from Modelling Results For personal use only Ø The PNGGEM modelling analysis confirms that the reopening of the Panguna Mine provides Bougainville with a tremendous opportunity to catapult its economy forward. Ø Long-term benefits will depend largely on the governan
Slide 19: Mining Partner / Investor Engagement
Mining Partner / Investor Engagement Overarching Philosophy For personal use only Ø Ensure Bougainvilleans receive majority of financial and social benefits from the project throughout mine life. Ø Develop a simple and transparent investment and benefit structure which cannot be abused or exploited
Slide 20: Economic Sharing Mechanism Structure
Economic Sharing Mechanism Structure Key Points & Principles For personal use only Ø Overall economic benefits to be shared on a cumulative basis based on a predetermined split. Ø Economic benefits comprise of fiscal payments and social benefits received by Bougainvillean stakeholders as well as cap
Slide 21: Project Benefit Distribution
Project Benefit Distribution Example of Potential Structure For personal use only Ø Similar model successfully used for other resource projects in PNG (e.g. Porgera). § Indicative only and will be used as basis for initial discussions with potential mining partner(s). Ø Bougainville parties to recei
Slide 22: Project Economic Benefits: Life of Mine Model
Project Economic Benefits Life of Mine Model For personal use only Ø 1 – Initial capital investment by Mining Partner (MP). 2 1 Ø 2 – Capital recovered by MP and BCL starts to receive dividends. 3 Ø 3 – Bougainville parties’ benefits always “ahead of “ MP throughout mine life.
Slide 23: Critical Ingredient to Project Success
Critical Ingredient to Project Success Stakeholder Support For personal use only Ø ABG’s granting of the 5-year licence extension for EL01 is a major show of confidence in BCL. Ø Strong landowner support demonstrated by signing of LACA. Ø In order to attract credible mining partner(s) to work with B
Slide 24: Next Steps
Next Steps For personal use only Ø With formal support from ABG as the regulatory agency, pursue potential mining partner(s) to discuss the project and gauge interest in investment. Ø Only progress negotiations with potential mining partner(s) who agree to the overall economic benefit sharing model
Slide 25: In Summary
In Summary For personal use only Ø The Panguna Mine is a well-known and well-defined asset with significant upside potential. § BCL’s existing IP contains a wealth of historical, accurate and reliable data. Ø The project will bring substantial benefits and investment to the Bougainville region – bot
Slide 26: Thank You
THANK YOU Comments / Questions? For personal use only
Bougainville Copper — Corporate Update (January 2025) on 6ix