Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — Diggers and Dealers 2014
27 slides from Bci Minerals's conference presentation, Aug 4, 2014
Slide 1: ASX cover letter for Diggers and Dealers presentation
4 August 2014 For personal use only The Manager Company Announcements Office Australian Securities Exchange Dear Sir, BC Iron Limited (ASX:BCI) Following is a presentation on BC Iron Limited which will be given by Managing Director Morgan Ball at Diggers and Dealers in Kalgoorlie on Wednesday 6 Augu
Slide 2: Diggers and Dealers Presentation
For personal use only Diggers and Dealers Presentation Morgan Ball – Managing Director ASX:BCI 6 Aug ‘14
Slide 3: Optimising the NJV | Paying dividends | Considering growth
For personal use only Optimising the NJV | Paying dividends | Considering growth 2
Slide 4: Attractive Investment Proposition
ATTRACTIVE INVESTMENT PROPOSITION For personal use only TSR focus: Outperformed peers on TSR basis since Jul-12 Capital management: Robust balance sheet, conservative gearing, ongoing dividends At target production: 6Mtpa (BCI share 4.5Mtpa) for FY14 No significant development risk: Current
Slide 5: Current Industry Observations
CURRENT INDUSTRY OBSERVATIONS For personal use only Falling iron ore prices and widening discounts for Iron Ore Price and Discounts lower Fe material in 1H 2014… 180 25% Platts 58 Discount (FOB) Platts 62 Price (US$/t) Increase in supply of 57-58% Fe ore from Australia 160 20% 140 15% Demand con
Slide 6: Current Industry Observations: Conditions in China
CURRENT INDUSTRY OBSERVATIONS For personal use only Conditions in China appear to be improving Targeted stimulus/easing announced Increased 2014 targeted investment in railways to CNY 720b (~USD 120b) Reduction in reserve ratios for certain banks Positive recent economic data China’s July
Slide 7: Current Industry Observations: BC Iron well insulated
CURRENT INDUSTRY OBSERVATIONS For personal use only BC Iron well insulated in the interim Breakeven Price Curve (62% Fe, CFR China Basis) 120 Attractive product characteristics – high calcined Fe and low impurities 100 80 Profitable in current pricing environment 60 Well placed on the breakeve
Slide 8: Iron Ore Outlook
IRON ORE OUTLOOK For personal use only Over the longer term, China fundamentals continue to deliver a robust outlook for iron ore GDP growth ~7% p.a. in the medium term – significant in absolute terms given China is the world’s 2nd largest economy New government positive about growth – significa
Slide 9: FY14 Review and FY15 Guidance
FY14 REVIEW AND FY15 GUIDANCE For personal use only FY14 results Record sales of 5.8M wmt (BCI share of 4.3M wmt) NJV C1 cash costs of $52/wmt (FOB) BCI C1 cash costs of $44/wmt (FOB) – lower due to prepayment for rail and port charges BCI Revenue of $467M (unaudited) and EBITDA of $152M (un
Slide 10: NJV Operational Performance
NJV OPERATIONAL PERFORMANCE For personal use only Ore Mined (dmt) Ore Processed (wmt) Ore Shipped (wmt) 7.0 7.0 7.0 6.0 6.0 6.0 5.0 5.0 5.0 4.0 4.0 4.0 3.0 3.0 3.0 2.0 2.0 2.0 1.0 1.0 1.0 0.0 0.0 0.0 FY11 FY12 FY13 FY14 FY11 FY12 FY13 FY14 FY11 FY12 FY13 FY14 9
Slide 11: NJV Initiatives
NJV INITIATIVES For personal use only Seeking to extend NJV mine life via beneficiation of low Project grade ore Inventory Beneficiation trial completed, initial evaluation of Reserves and mine life underway Dozer ripping trial for Outcamp 3 overburden removal Overburden Insert picture of succ
Slide 12: Corporate Overview
CORPORATE OVERVIEW For personal use only Capital Structure Share Price and Volume Ordinary Shares 124.3m $5.50 7 Share Price (at 1-Aug-14) $3.32 $5.00 6 $4.50 5 Market Capitalisation $413m Volume (m) Share Price $4.00 4 Cash (at 30-Jun-14) $159m $3.50 3 Debt (at 30-Jun-14) $54m $3.00 2 Enterprise Va
Slide 13: Peer Comparison
PEER COMPARISON For personal use only Total Shareholder Return – 1 Jul 12 to Current Why has BC Iron outperformed its peers? Quality project with low capital intensity 65% Low risk (0%) Continued strong operational performance (7%) (65%) (63%) Strong management and appropriate capital (87%)
Slide 14: BC Iron Video
BC IRON VIDEO For personal use only http://www.bciron.com.au/about-us.html 13
Slide 15: Nullagine Joint Venture (NJV)
NULLAGINE JOINT VENTURE (NJV) For personal use only A producing DSO project with access to world-class infrastructure. Located ~55km north of FMG’s Christmas Creek Unincorporated joint venture – 75% BCI, 25% FMG BC Iron is the Operator and Manager of the NJV FMG provides rail & port services
Slide 16: Mining
MINING For personal use only Contract mining by WATPAC, utilising Vermeer and Wirtgen surface miners Reduced mining dilution Provides primary crushing Mesa edge bund wall Surface miner cut panel Ore block piles Mine plan comprises four major deposits – currently mining at Outcamp and Warriga
Slide 17: Processing and Logistics
PROCESSING AND LOGISTICS For personal use only Processing (WATPAC & Exact) Road Haulage (Toll & Roadtrim) Rail and Port Services (FMG/TPI) Simple crushing & screening Ore trucked via private sealed World class rail and port process road to dedicated stockyard at Access to Capesize vess
Slide 18: Project Inventory
PROJECT INVENTORY For personal use only Assessing mine life extension through beneficiation of low grade (50-55% Fe) Targeting in-pit low grade… … and near- Targeting: pit low grade Low grade within existing pit designs Low grade just outside pit boundaries DSO and low grade at regional me
Slide 19: Bonnie Fines
BONNIE FINES For personal use only Highly sought after pisolite sinter blend Improves sintering productivity at the steel mill High calcined Fe, due to high loss on ignition Low impurities and low moisture Used at 20-30% level in some sinter blends BCI Share of Bonnie Fines ~3.2Mtpa til 20
Slide 20: Business Development
BUSINESS DEVELOPMENT For personal use only Goals Retain ability to pay dividends Generate value for shareholders (risk adjusted) via organic and inorganic opportunities Business Development Priorities Extend life of the NJV Priority 1 (Project Inventory) Growth in the rest of Priority 2 the Pilb
Slide 21: Brazil Exploration Earn-In
BRAZIL EXPLORATION EARN-IN For personal use only BC Iron / Cleveland alliance staged earn-in to exploration projects in Bahia and Minas Gerais No upfront payments and appropriately staged expenditure and vendor payments provides optionality Encouraging results from first pass RC drilling and m
Slide 22: Optimising the NJV | Paying dividends | Considering growth
For personal use only Optimising the NJV | Paying dividends | Considering growth 21
Slide 23: Appendices
APPENDICES For personal use only APPENDICES 22
Slide 24: BC Iron Limited – Board
BC IRON LIMITED – BOARD For personal use only Tony Kiernan, Non-exec Chairman – formerly a solicitor Andy Haslam, Non-exec Director – over 30 years of with extensive experience in management and operation operational and senior executive experience in the of Australian public companies. Chairman of
Slide 25: Ore Reserves & Mineral Resources - Dec '13
ORE RESERVES & MINERAL RESOURCES - 31 DEC ‘13 For personal use only Ore Reserve Estimate NJV (BC Iron 75%, FMG 25%) Classification Mt Fe% CaFe% Al2O3% SiO2% P% S% LOI Proved 15.0 57.3 65.0 1.8 2.9 0.014 0.012 11.9 Probable 18.3 56.9 64.8 2.0 3.0 0.014 0.011 12.2 Total 33.3 57.1 64.9 1.9 3.0 0.014 0.
Slide 26: 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 27: For personal use only
For personal use only Level 1, 15 Rheola Street West Perth, WA, Australia Phone : +61 8 6311 3400 Email : info@bcircon.com.au Website : www.bciron.com.au