Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — Diggers and Dealers 2012
23 slides from Bci Minerals's conference presentation, Aug 9, 2012
Slide 1: ASX announcement cover letter
9 August 2012 For personal use only Company Announcements Office Australian Securities Exchange BC Iron Limited (ASX: BCI) Please find attached the Company Presentation that Managing Director, Mike Young presented at Diggers and Dealers on 8 August 2012. Regards Linda Edge Company Secretary
Slide 2: Diggers and Dealers August 2012
Diggers and Dealers August 2012 For personal use only Mike Young – Managing Director
Slide 3: BC Iron is an iron ore mining company
For personal use only AN IRON ORE MINING COMPANY BC Iron is an iron ore mining company Points of difference v Focused on development since 1H 2007: Ø Production at ‘steady state’ at 5Mtpa v Joint Venture with Fortescue Metals Group v Quality product – “Bonnie Fines” Ø Direct Ship Ore – CID piso
Slide 4: Company History
For personal use only COMPANY HISTORY 2006 to 2012: Rapid Growth Ø 2006 – Listing on ASX Ø 2007 – Discovery of DSO iron ore at Outcamp Well Ø 2008-2009 – Drilling, Feasibility, JV with FMG Ø 2010 – Construction and Mining commences Ø 2011 – Iron ore exports commence & maiden profit Ø 2012 – Ra
Slide 5: Company Snapshot
For personal use only COMPANY SNAPSHOT Shareholders Capital Structure Consolidated Minerals 24 % Ordinary Shares 103.9m Regent Pacific 23 % Market Cap at $2.50 $260m Henghou Ningbo 10 % Cash as at 08 August 2012 ~$100m Debt $20m BC Iron Directors 3% Institutions 21 % Enterprise Value $180m Top 20 77
Slide 6: Board of Directors
For personal use only BC IRON LIMITED 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. Chairman
Slide 7: Q4 FY2012 Achievements
For personal use only Q4 FY2012 ACHIEVEMENTS Q4 FY2012 – All FY2012 Targets Achieved During the Quarter: ü Cash at $93m June 30, 2012 ü Record 1,479,116 tonnes mined & crushed ü Record 1,431,260 tonnes shipped ü Operations achieve steady state at 5Mpta Ore Mined FY2012 – 3.54mt ü Ore Reserve in
Slide 8: Exceeding Guidance
For personal use only EXCEEDING GUIDANCE TARGETS Exports of 1Mt Exports of 3.5Mt Run Rate of 3.5Mtpa Run Rate of 5 Mtpa FY 2011-12 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 ACHIEVEMENTS Run Rate of 5 Mtpa Run Rate of >4.0 Mtpa Exports of 1.1 Mt Exports of >3
Slide 9: BC Iron Project Location
For personal use only BC IRON PROJECT LOCATION Nullagine Iron Ore Project Ø Joint Venture with Fortescue (50:50) Ø The Project is located 55 km north of Fortescue’s Christmas Creek (CC) Operations Ø Ore is trucked to CC, then railed to Port Hedland for export via Fortescue’s port infrastructure Ø
Slide 10: Nullagine Joint Venture
For personal use only NULLAGINE JOINT VENTURE Nullagine Joint Venture Ø BC Iron is the operator and Manager of the JV Ø 50/50 share of revenue and costs Ø Contract mining, haulage, rail & port Ø Fortescue provide marketing services Ø Ramp-up complete à all activities now at “steady state” Ø E
Slide 11: BC Iron Limited
For personal use only 10 BC IRON LIMITED
Slide 12: Production Rates
For personal use only PRODUCTION RATES 16 Ore Mined 14 Waste Mined million tonnes 12 10 8 6 4 2 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Past and forecast production FY12 to FY21 FY22 è DSO+BBSO è Ø Production capacity rate at 5Mtpa à steady state production Ø LOM strip ratio of 1:1 è
Slide 13: Forecast Costs
For personal use only FORECAST COSTS Price 7 August US$117 Targeted OpEx Forecast costs Source: Macquarie Research Ø FOB cash operating costs estimated at $45 to $50 per tonne over LOM - varies with waste/ore ratio Ø Cash costs exclude State royalties, Aboriginal royalties, marketing and head offi
Slide 14: Iron Ore Prices
For personal use only IRON ORE PRICES Ø CFR62% Fe Tianjin Spot history to June 30, 2012 Ø Forward consensus April 2012 Ø LT (Nominal) $90/dmt CFR62% Fe 13
Slide 15: Marketing Bonnie Fines
For personal use only MARKETING BONNIE FINES West Australian - Channel Iron Deposits Customer ratings of "Bonnie Fines" Element Grade Comments Rating Ø “Bonnie Fines” pisolite sinter blend improves Fe 57.0% Typical for Channel Iron ✔ Deposit (CID) sintering productivity at the steel mill Low. Typic
Slide 16: Marketing Bonnie Fines
For personal use only MARKETING BONNIE FINES Ø “Bonnie Fines” Phosphorus Grades amongst the world’s lowest DSO Source: RBC August 2012 15
Slide 17: Marketing Bonnie Fines
For personal use only MARKETING BONNIE FINES Ø “Bonnie Fines” highly competitive Alumina and Silica grades Source: RBC August 2012 16
Slide 18: China Drivers – Steel Intensity
For personal use only CHINA DRIVERS – STEEL INTENSITY Source: Drysdale & Hurst (2012) 17
Slide 19: China Drivers – Steel Intensity
For personal use only CHINA DRIVERS – STEEL INTENSITY Ø Australia GDP per capita $65,477 Ø Australia steel intensity 261kg per capita Ø Australia population 22.7m Source: Drysdale & Hurst (2012) 18
Slide 20: Business Development
For personal use only BUSINESS DEVELOPMENT A Pilbara iron ore miner Ø Rapid development history Ø Focused on development & production Ø Established partnerships - FMG, stakeholders, government Three Priorities Ø Priority 1 – extend Nullagine Mine Life Ø Phase 2 – extend influence of NIOJV Ø Pr
Slide 21: Reserves and Resources
For personal use only RESERVES AND RESOURCES Proved and Probable Ore Reserves NJV (BC Iron 50%, Fortescue 50%) Ore Reserves Deposit Mt Fe% CaFe% Al2O3% SiO2% P% S% LOI Proved 13 57.3 65 1.8 3.1 0.013 0.013 11.9 Probable 28 57 64.8 2 3.1 0.016 0.011 12.1 Total 41 57.1 64.9 1.9 3.1 0.015 0.012 12 DSO
Slide 22: Supporting Statements
For personal use only SUPPORTING STATEMENTS 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 and an employee of BC Iron, and
Slide 23: BC Iron Limited
BC IRON LIMITED Mining iron ore. Growth through cash flow. 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