Black Rock Mining Limited · ASX:BKT
Black Rock Mining — Investor Presentation (September 2020)
34 slides from Black Rock Mining's investor presentation, Sep 17, 2020
Slide 1: Mahenge Graphite Project Market Update
Black Rock Mining Mahenge Graphite Project For personal use only Market Update Investor Briefing, Webinar 17 September 2020
Slide 2: Important notices
Important notices This presentation has been prepared by Black Rock Mining Limited (Black Rock or the Company). For personal use only The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which
Slide 3: Solid foundation supports transition from project to production
Prepped for § Strong foundation built through best in class study process § eDFS US$1.2B real ungeared, post tax NPV10 Success § 130 tonne through two independent pilot plants For personal use only § Strong on ground engagement support Community Licence to Operate Solid foundation § Operating model
Slide 4: The Foundation
The § Largest pilot plant run of any graphite development project globally § Highest TGC* purity achieved at commercial scale through simple flotation Foundation § Diverse portfolio of credible offtake partners For personal use only § Detailed offtake pricing framework agreed § Right-sized market en
Slide 5: Deep work at commercial scale
Deep work at commercial § Heavy DFS For personal use only § POSCO Battery testing scale Truly understood deposit Strong knowledge of properties, mine and our full project process parameters, and proposition key product streams § 300-cycle battery CONDUCTED AT § Two major pilot plant charge/discharge
Slide 6: A small, sustainable footprint with large impact
A small, Resettlement Action Plan (RAP) sustainable § Ongoing, relationship-led, well supported by affected people § Front-end strategy of community engagement well received For personal use only footprint with Logistics large impact § Road/rail combination reduces vehicle risk § Rail access to port
Slide 7: Lessons learnt
Lessons Financing requires Relatively small learnt? For personal use only preparation terminal markets A380 vs A320 Industrial PREPARATION MARKETS minerals (graphite) is customer Product goes Sampling volumes SAMPLING QUALITY driven, not for Resource and Customer into specific-use, manufactured comm
Slide 8: Graphite market dynamics
Graphite market For personal use only Battery 2020 Electrification dynamics technology of transport Intergenerational life = competitive advantage Macro economics = competitive advantage Black Rock is Emerging tech such as Manufacturers aligned to how Graphene developing products the market is 91 Gr
Slide 9: Positioned well to complete the puzzle
Positioned well Relocation Action POSCO Strategic to complete Plan Alliance For personal use only Strong community Provides certainty around the puzzle endorsement of project supports legislative process volume and price risk and provides cornerstone investor Disciplined development path EPCM Deferr
Slide 10: Sensible price discovery
BAIINFO Sensible FASTMARKETS price For personal use only ASIANMETAL discovery REFWIN Credible and visible sources to index China share ~85% of global supply. Price benchmark must be China sourced. BLACK ROCK DFS PRICE ASSUMPTIONS § www.refwin.com Enhanced DFS Segment pricing Basket weight Shipping C
Slide 11: A snapshot of the Mahenge Graphite Project
A snapshot of the Mahenge Graphite Project Simple open pit mine development with outstanding forecast returns For personal use only US$1.2B 45% 83ktpa Post-tax, ungeared, real NPV10 Post-tax, ungeared, real IRR Phase 1 output (1Mtpa ROM) 95 – 99%+ TGC purity US$116M 350ktpa 59% +80 mesh, 41% -80 Pha
Slide 12: Thank You
For personal use only Thank You for attending the BLACK ROCK MINING Investor Briefing
Slide 13: Contact details
For personal use only John de Vries Richard Crookes Chairman Managing Director and CEO T: +61 438 356 590 T: +61 438 356 590 E: richard.crookes@blackrockmining.com.au E: jdv@blackrockmining.com.au A: 45 Ventnor Avenue Elvis Jurcevic West Perth WA 6005 Investor Relations T: +61 408 268 271 www.blackr
Slide 14: Board: The leaders to deliver
Board The leaders John de Vries, Managing Director and CEO § Mining Engineer with over 35 years’ experience in mine development and operations; professional experience to deliver spans Africa, the Pacific, the Former Soviet Union, North and South America and Australia For personal use only § Previou
Slide 15: Appendix A: The Premier Graphite Exposure
Appendix A: For personal use only The Premier Graphite Exposure
Slide 16: Upstream focus with highly economic mine project
01 § Core upstream, mine development strategy at Mahenge Upstream § Strongly differentiated from many of our graphite development peers For personal use only § Key competitive advantage is our resource and its properties focus with § Focussed on where our experience and expertise lets us extract val
Slide 17: Deep work at real commercial scale
02 § Graphite is far from homogeneous Deep work § We have done the work needed to truly understand our deposit properties, mine and process parameters, and key product streams For personal use only at real § Our testwork results have been delivered at commercial scale § Two major pilot plant runs to
Slide 18: Leading product purity and residual chemistry
03 Leading product purity and residual chemistry For personal use only A critical differentiator Product concentrates TGC range (%) § No overprint mineralisation = ability to deliver superior 100.0% 99%+ product purity and residual chemistry 99.0% 98.0% § Enables 99%+ TGC concentrate purity with sol
Slide 19: Sensible project entry and growth strategy
§ Deep pilot plant testing via composite orebody sampling – superior process de-risking and highly representative product samples 04 § Sensible Module 1 entry size (~85ktpa): limited enough to allow product Sensible For personal use only market integration but significant enough to deliver meaningfu
Slide 20: Realistic, transparent price views
05 § Balanced approach relative to peers ‒ Lower relative large flake prices given less liquid markets and Realistic, significance to basket price calculation For personal use only transparent ‒ Higher relative medium/fine flake prices given observed purity premium and Mahenge concentrate grades pri
Slide 21: Premier location and logistics
06 § Northern location of Mahenge offers significant competitive cost advantage Premier § Proximity and access to rail and major port at Dar es Salaam For personal use only § Dar es Salaam the premier coastal export option location and ‒ High-volume container port, superior logistics, no seasonal in
Slide 22: Fit-for-purpose project execution plan
07 Fit-for-purpose project execution plan For personal use only Low risk build and a plant design dedicated to product consistency § Major fabrication of plant components prior to shipping and on-site construction § Initial diesel genset power generation to minimise start-up and early supply risk §
Slide 23: Responsibly sourced, sustainable graphite
§ Equator Principles framework fully employed 08 § Complete traceability of supply chain and proof of ethical sourcing Responsibly For personal use only § Strong community support and predominant use of local workforce § Access to hydro grid power (low emissions footprint) sourced, § Large grind siz
Slide 24: Blended, risk-adjusted finance process
09 § Targeting a blended project financing model Blended, § Matching risks to participants best placed to manage them For personal use only § Key potential finance stakeholders include EPC vendor, offtake risk- counterparties and Tanzanian government § ICA Partners mandated as finance adviser adjust
Slide 25: Superior stakeholder engagement
10 § Focus on building appropriate, long-term sustainable relationships Superior § Tanzania remains an excellent domicile – stable and LT conflict-free For personal use only § All Mahenge permits received under new Mining Code requirements: stakeholder ‒ Environmental permit and Mining Licence(s) ‒
Slide 26: Appendix B: Mahenge Project Detail
Appendix B: For personal use only Mahenge Project Detail
Slide 27: Mineral Resource and Ore Reserve estimates
Mineral Resource and Ore Reserve estimates For personal use only Contained Category Tonnes (Mt) Grade (%TGC) Graphite (Mt) Ore Reserves Proven 0 0 0 Probable 69.6 8.5 6.0 Total Ore Reserves 69.6 8.5 6.0 Mineral Resources Measured 25.5 8.6 2.2 Indicated 88.1 7.9 6.9 Total Measured and Indicated Resou
Slide 28: Enhanced DFS: Projected economics
Enhanced DFS: Projected economics For personal use only Financial performance summary Unit LOM Project life Years 27.5 Operating life Years 26.0 Total LOM net revenue US$M, real 9,619 Graphite price (real) US$/t 1,301 Total project development capital costs * US$M 337 C1 cost: real (including withho
Slide 29: Enhanced DFS: Forecast cashflow profile
Enhanced DFS: Forecast cashflow profile Mahenge Graphite Project: 4-Phase Option Cashflow Profile For personal use only 400 Project Net Cashflow Post-Tax Project Net Cashflow Pre-Tax 350 6,250 Project Net Cashflow Pre-Tax Cumulative Project Net Cashflow Post-Tax Cumulative 300 5,250 Cumulative Cashf
Slide 30: Enhanced DFS: Mining profile
Enhanced DFS: Mining profile For personal use only Following release of the Enhanced Definitive Feasibility Study (DFS) on the Mahenge Graphite Project in July 2019 (see Black Rock ASX release dated 25 July 2019, Mahenge Enhanced DFS with Executive Summary), Black Rock confirms that it is not aware
Slide 31: Enhanced DFS: Process flowsheet
Enhanced DFS: Process flowsheet For personal use only Following release of the Enhanced Definitive Feasibility Study (DFS) on the Mahenge Graphite Project in July 2019 (see Black Rock ASX release dated 25 July 2019, Mahenge Enhanced DFS with Executive Summary), Black Rock confirms that it is not awa
Slide 32: Enhanced DFS: Operating cost estimates
Enhanced DFS: Operating cost estimates For personal use only Onsite power Grid power Cost Unit generation (rental) (TANESCO) Charge to provide services (fixed cost) US$/month 176,000 70,118 Power supply (variable cost) US$/kWh 0.263 0.067 LOM average Area US$M pa US$/t ore feed US$/t graphite produc
Slide 33: Enhanced DFS: Capital cost estimates
Enhanced DFS: Capital cost estimates* For personal use only Stage 1 Stage 2 Stage 3 Stage 4 Total Area (WBS Level 1)* '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ Mining 10,165 - - - 10,165 Ifakara 1,366 1,041 727 682 3,816 Infrastructure 14,315 3,325 53,705 40,976 112,321 Process plant 50,877 45,30
Slide 34: Enhanced DFS: Graphite pricing (at 98% LOI)
Enhanced DFS: Graphite pricing (at 98% LOI) For personal use only Enhanced DFS Segment pricing Basket weight Shipping Channel & agent Contract discounts Basket FOB price deck segments (US$/t) (%) (US$/t) (US$/t) (US$/t) (US$/t) (Mesh #) +32 1,579 5 1.65 1.97 1.97 73 +50 1,449 18 5.96 6.52 6.52 242 +
Black Rock Mining — Investor Presentation (September 2020) on 6ix