Black Iron Inc. · TSX:BKI
Black Iron — Investor Presentation (November 2012)
24 slides from Black Iron's investor presentation, November 2012
Slide 1: A Compelling Iron Ore Investment Opportunity
A Compelling Iron Ore Investment Opportunity Corporate Presentation November 2012 TSX: BKI
Slide 2: Disclaimer: Forward Looking Statement
Disclaimer Forward Looking Statement TSX: BKI This Presentation contains ‘‘forward-looking information’’ which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its subsidiaries (collectively, the ‘‘Company’’) and its mine
Slide 3: What Sets Black Iron Apart?
What Sets Black Iron Apart? Access to Skilled Labour & Infrastructure – Two of the Most Challenging Iron Ore Project Development Risks TSX: BKI Key Development Risks Taxes/Royalties Human Resources Canada Ukraine Access to Infrastructure Community Opposition Licensing/Permitting Access to Water Afri
Slide 4: 5 Fundamentals for Iron Ore Success
5 Fundamentals for Iron Ore Success A High-Quality Iron Ore Development Opportunity TSX: BKI Good access to skilled labour, power, rail & ports Exceptional • 35km from city of Kryviy Rih (pop. 750k); paved road to site Infrastructure • 2 km from state-owned rail and power lines with surplus capacity
Slide 5: Project Backed by Forbes & Manhattan
Project Backed by Forbes & Manhattan Success with Consolidated Thompson’s Bloom Lake Iron Mine TSX: BKI • World class 8Mtpa iron ore concentrate Forbes & Manhattan Involvement mine in Quebec • Advanced from exploration stage through development to construction Recently acquired − 8 mtpa capacity (66
Slide 6: A Track Record of Iron Ore Success
A Track Record of Iron Ore Success with Consolidated Thompson Iron Mines, Rio Tinto’s Iron Ore Company of Canada, and Ferrexpo TSX: BKI Key Management Board of Directors Matt Simpson – President & CEO Bruce Humphrey – Chairman • Former General Manager, Mining for Rio Tinto’s • Former Chairman of Con
Slide 7: Sound Capital Structure
Sound Capital Structure Attractive Valuation with substantial upside TSX: BKI Capital Structure Historical Share Price $0.90 Shares Outstanding 141.0 million $0.80 (1) $0.70 Warrants 1.7 million $0.60 (2) $0.50 Stock Options 8.5 million $0.40 $0.30 Fully Diluted Shares 151.2 million $0.20 $0.10 Mark
Slide 8: Deposits In Mining Friendly Region
Deposits In Mining Friendly Region Adjacent to existing Iron Ore Producers TSX: BKI ArcelorMittal’s Kryviy Rih Iron Ore Complex • Two mining and exploration permits Black Iron’s covering 5.92 km2 Shymanivske Project − Mining permit at Shymanivske, which M&I: 646Mt @ 31.6% has been extensively explor
Slide 9: Large Ore Deposit with Growth Potential
Large Ore Deposit with Growth Potential TSX: BKI • Banded iron formation consisting primarily of magnetite with some hematite − Iron band thickness ranges from 40-80 m − Only 9.7-21.2 m of overburden − Very clean ore body low in phosphorus, manganese and aluminum • The resource is defined by ~37,000
Slide 10: Potential Resource Extension at Shymanivske
Potential Resource Extension at Shymanivske Ground Gravity Shows Iron Ore Mineralization at North End TSX: BKI Potential resource • Ground gravity and magnetic surveys upside to be drilled show potential extension of iron ore mineralization at North end of property as circled in red Property • This
Slide 11: Extensive Pit Shell Design and 3D Model Completed
Extensive Pit Shell Design and 3D Model Completed TSX: BKI Significant Portion of the Resource Falls within Black Iron’s 3D Model Developed as Part of the the Economic Pit Shell Feasibility Study 11
Slide 12: Conventional Flowsheet (simplified)
Conventional Flowsheet (simplified) Producing High Quality Iron Ore Products TSX: BKI Drill Blast Load & Haul Crush Vertical Mill Ball Mill (x2) HPGR Magnetic Separator Sulphur Floatation Concentrate Pellet Plant (optional) Fe 68.0% Pellets SiO2 4.5% Fe 65.0% P 0.02% SiO2 4.13% S 0.05% P 0.025% Al2O
Slide 13: Feasibility Study On Track for Q4 Completion
Feasibility Study On Track for Q4 Completion Layouts finalized as shown below TSX: BKI Rail Loop Primary Crusher Beneficiation Plant Cobbing Building Secondary Crushing Building Secondary Crushing Building 13
Slide 14: Excellent Infrastructure
Excellent Infrastructure Key to a Successful Iron Ore Project TSX: BKI • Paved roads to site, located 35km away from the major city of Kryviy Rih which has a skilled work force • Surplus electricity readily accessible from high voltage power lines that run beside property • ~2 km from main state-own
Slide 15: Strategic Global Location
Strategic Global Location Close Proximity to Target Markets with Abundant Port and Rail Access TSX: BKI • Project is surrounded by steel mills in Europe, Turkey and the Middle East • River barge & rail access to Western Europe. • Five dry bulk tonnage ports accessible using railway running beside pr
Slide 16: Ukraine: A Mining Friendly Country
Ukraine: A Mining Friendly Country Strong Local and National Support TSX: BKI • Politically stable Democratic republic ― Following Presidential elections in 2012, country is currently united with a President and Prime Minister from the same Political Party ― S&P Sovereign Risk of B+ • Economy domina
Slide 17: Globally Significant Iron Ore District
Globally Significant Iron Ore District Ukraine: 6th largest iron ore producer & 4th largest reserve base TSX: BKI • Black Iron’s projects are located in the heart of Ukraine’s 2010E Iron Ore Production iron ore belt 1000 900 – 35km from city of 750,000 people 800 – 98% of Ukraine population has comp
Slide 18: Permit Process for Shymanivske Deposit
Permit Process for Shymanivske Deposit Black Iron Remains on Track TSX: BKI Exploration Extraction Mining Land Construction Operations Permit Permit Allotment Allotment Approval Approval Explore Deem deposit Pit shell reserves Obtain surface Start mine Operate mine & resource economical & environmen
Slide 19: Shymanivske PEA Highlights
Shymanivske PEA Highlights High Value, Low Net Cost Iron Ore Development Project TSX: BKI Production Case: Pellet Plant Feed Pellet Annual Production: 7.3 Mt 7.6 Mt Iron Content: 67.0% 65.0% Estimated Capital Investment: US$896.0 million US$1,571.3 million Estimated Operating Expenses: (life of mine
Slide 20: Black Iron's Capital Cost Advantage
Vale (Shimandou 1) African Minerals (phase2) Xstrata (Askaf) 84 87 90 92 African Minerals (DSO) ArcelorMittal (Western… Fortescue (Expansion) 109 109 Rio Tinto (IOC) Black Iron Alderon 122 123 124 Sundance Kumba Ferrexpo (Yeristovo) Source: Company data; Renaissance Capital estimates IRC (Kuranakh)
Slide 21: Black Iron Compares Favourably
Black Iron Compares Favourably Black Iron to Other Iron Ore Developers TSX: BKI Pre-Tax & Royalty NPV8 Tax Regime Post-Tax & Royalty NPV8 30% (US$ billions) (US$ billions) +30%1 7.3 39%2 4.9 2.5 3.0 3.1 3.3 3.4 1.8 1.8 2.1 1.5 29% 1.0 0.3 0.5 1.1 0.1 0.3 0.6 26% Northland Northland Black Iron Aldero
Slide 22: Black Iron Continues to Deliver
Black Iron Continues to Deliver Shymanivske Project Development Timeline TSX: BKI 2011 2012 Future H1 H2 H1 H2 Drill metallurgical holes Scoping Study/PEA Definition Drilling Definitive Feasibility Study Exploration Drilling Environmental Studies Permitting Detailed Engineering Construction Producti
Slide 23: 5 Fundamentals for Iron Ore Success
5 Fundamentals for Iron Ore Success A High-Quality Iron Ore Development Opportunity TSX: BKI Good access to skilled labour, power, rail & ports Exceptional • 35km from city of Kryviy Rih (pop. 750k); paved road to site Infrastructure • 2 km from state-owned rail and power lines with surplus capacity
Slide 24: Contact Information
CONTACT INFORMATION 65 Queen Street West Suite 805, P.O. Box 71 Toronto, Ontario, Canada M5H 2M5 www.blackiron.com Investor Relations Toronto: +1 (416) 309-2950 London: +44 (0) 207 466 5000 Ukraine: +380 (67) 619-0454 info@blackiron.com TSX: BKI