Bci Minerals Ltd · ASX:BCI
Bci Minerals — Investor Presentation (January 2019)
26 slides from Bci Minerals's investor presentation, Jan 29, 2019
Slide 1: Driving the Mardie Project Towards Development
For personal use only Driving the Mardie Project Towards Development Corporate Presentation 29 January 2019 www.bciminerals.com.au
Slide 2: About BCI Minerals
About BCI Minerals For personal use only ▪ Based in Perth, Australia (ASX: BCI) ▪ Market cap of ~A$55M ▪ A$36M1 cash and zero debt ▪ Building a new Salt and Potash business supported by Iron Ore cash flow: – Mardie Salt & SOP Project: Pre- development studies and early site works being undertaken –
Slide 3: BCI Investment History
BCI Investment History BCI has a track record of funding, developing and operating mining projects For personal use only 1. Nullagine Joint Venture – Iron Ore: ▪ Developed from greenfields and operated from 2010-2015 ▪ Dividends paid to shareholders: A$100M 2. Iron Valley – Iron Ore: ▪ Developed in
Slide 4: The Mardie Opportunity
The Mardie Opportunity Mardie is a Tier 1 long life project that can supply the For personal use only Salt and Potash growth markets in Asia Salt as chemical feedstock Asian Demand MARDIE SALT & POTASH PROJECT Sulphate of Potash as premium fertiliser BCI believes rapidly developing its 100% owned Ma
Slide 5: Positive Salt (NaCl) Market Dynamics
Positive Salt (NaCl) Market Dynamics Supply deficit of >20Mtpa forecast in next decade (~5 Mardie sized projects) For personal use only SALT DEMAND INCREASING SALT SUPPLY CONSTRAINTS Increasing Salt required for environmental production of hurdles 1,000’s products Long lead time to production Increa
Slide 6: Positive SOP (K2SO4) Market Dynamics
Positive SOP (K2SO4) Market Dynamics Feeding the increasing Asian population For personal use only SOP DEMAND INCREASING SOP SUPPLY CONSTRAINTS SOP is a premium fertiliser for higher Most SOP projects value crops located in remote areas far from ports SOP contains no chlorine (soil friendly) No cu
Slide 7: Australian Salt & SOP Landscape
Australian Salt & SOP Landscape For personal use only ▪ Five large existing evaporative Salt operations in the Pilbara region of WA – Total production capacity of 14Mtpa – Up to 5 decades old 1,000km ▪ No existing SOP production in Australia with all 800km planned projects based on extraction of bri
Slide 8: Mardie – Ideal Location
Mardie – Ideal Location Large landholding in hottest part of Australia For personal use only ▪ Vast area of impermeable clay soils Mardie ▪ High temperature and high winds (= high evaporation) ▪ Low average rainfall Mardie’s large mudflats ▪ Suitable marine area for export jetty 8
Slide 9: Mardie Project Layout
Mardie Project Layout ▪ For personal use only Mardie Project footprint designed 3-5km Salt Plant & Port inland to limit disturbance of coastal Infrastructure ecosystem Crystallisers Export Jetty ▪ 6 pumps on floating pontoons with 10,000l/s capacity P8 P7 SOP Plant P6 ▪ 8 large ponds and 36 crystall
Slide 10: Simplified Process Flow
Simplified Process Flow Applying latest processing technology to produce high purity products For personal use only Recycled NaCl Primary Secondary Ocean Concentration Ponds Crystallisers Crystallisers Waste Seawater Concentrated Potassium Brine Rich Bitterns (or further processing to produce Magnes
Slide 11: Attractive PFS Economics to Improve in DFS
Attractive PFS Economics to Improve in DFS PFS1 DFS OBJECTIVES1 For personal use only ▪ Salt: 3.5Mtpa ▪ Salt: 4.0Mtpa Production ▪ SOP: 75ktpa ▪ SOP: 100ktpa ▪ Salt: A$175M ▪ Salt: A$240M Capex (Direct) ▪ SOP: A$65M ▪ SOP: A$75M Opex ▪ Salt: A$20/t ▪ Salt: A$16/t (FOB all-in cash cost basis) ▪ SOP:
Slide 12: Mardie's Competitive Positioning
Mardie’s Competitive Positioning For personal use only Seaborne High Purity Salt Cost Curve Simplified SOP Cost Curve Marginal Cost/Price 40 Marginal Cost/Price differential Mardie 400 Freight Mannheim Mardie US$/t CIF Asia US$/t CIF Asia cost 25 Mexico 200 China (Mannheim) Aus India China Aus Aus A
Slide 13: Approvals & Tenure Well Defined
Approvals & Tenure Well Defined For personal use only Environmental ▪ Significant surveys completed and no material issues identified ▪ Environmental approvals on track for late 2019 (EPA endorsed timeline) Heritage ▪ Land access agreements with Native Title claim groups secured ▪ Heritage surveys f
Slide 14: Mardie Timeline
Mardie Timeline Final investment decision targeted by Q1-20, allowing first salt sales in early 2023 For personal use only 2019 2020 Activities Q1 Q2 Q3 Q4 Q1 Q2 Environmental Surveys & Approvals Mardie Port – Gov’t Endorsement Mardie Port – Leases Pond, Crystalliser & Plant Design Port Design DFS R
Slide 15: BCI is Well Funded to FID in Early 2020
BCI is Well Funded to FID in Early 2020 For personal use only 2019 2020 2021 2022 2023 Project Salt Ponds / Crystallisers DFS + Early Works FEED Salt Plant + Port Construction Ramp up Phases Construction SOP Cryst. SOP Plant Construction Construct. Project Expenditure $25M $400M Cash Cash ($36M) + S
Slide 16: Mardie – Unique Project Opportunity
Mardie – Unique Project Opportunity For personal use only 1. Market: Strong market outlook for salt & SOP 2. Project: Tier 1 asset – ideal location, long life, large scale & low costs 3. Sustainability: Inexhaustible seawater resource and production utilising ~95% solar and wind energy 4. Company: B
Slide 17: Important Notices
Important Notices This presentation has been prepared by BCI Minerals Limited ABN 21 120 646 924 (“BCI”). For personal use only This document contains background information about BCI current at the date of this presentation. The presentation is in summary form, has not been independently verified a
Slide 18: Appendix
For personal use only Appendix
Slide 19: Corporate Information
Corporate Information For personal use only Capital Structure Shareholding and Trading Ordinary Shares 397.6M Wroxby Pty Ltd 27.6% Share Price (25-Jan-19) $0.135 Top 20 Shareholders ~50% Market Capitalisation $53.7M Number of Shareholders ~7,000 Cash (31-Dec-18) $36.6M Ave Daily Volume (Last 6 Month
Slide 20: Iron Valley Mine – Royalty Earnings
Iron Valley Mine – Royalty Earnings ▪ For personal use only Quarterly earnings for BCI via royalty agreement with Mineral Resources Ltd (MIN) – Underlying BCI EBITDA of ~A$8M in FY18 and ~A$16M in FY17 ▪ 6-8Mtpa iron ore operation; 50% lump production; potential mine life of ~15 years ▪ Average ore
Slide 21: What is Salt?
What is Salt? ▪ For personal use only Salt (NaCl) is 40% sodium (Na) and 60% chlorine (Cl) Solar Evaporation ▪ Essential for many aspects of modern living ▪ >300Mtpa of Salt produced and consumed globally Global Salt Production India, Other Asia, 32Mt 19Mt China, 90Mt Africa, 6Mt Australia, 10Mt Eur
Slide 22: Salt Uses
Salt Uses Salt is an essential feedstock for thousands of products For personal use only Mardie Target Markets Paper Construction Glass ▪ Industrial/chemical/pharmaceutical: including glass, PVC, paper, textiles, medicines, oils etc. Aluminium & Metals Ceramics ▪ Water treatment: increases purity an
Slide 23: Positive Asian Salt Market Dynamics
Positive Asian Salt Market Dynamics Supply deficit of ~20Mtpa forecast in next decade (~5 Mardie sized projects) For personal use only SALT DEMAND DRIVERS 200 55Mtpa 20Mtpa Increasing Asian Increasing demand for consumer & New middle class Asian industrial products 20Mtpa Mtpa Demand by 2027 15Mtpa
Slide 24: What is Sulphate of Potash (SOP)?
What is Sulphate of Potash (SOP)? ▪ Global agricultural industry ▪ Potassium improves crop yield & For personal use only depends on three primary quality, and increases resistance to fertilisers – Nitrogen (N) diseases Phosphate (P), and Potassium (K) ▪ Two main types of potassium fertilisers: – Mur
Slide 25: Positive SOP Market Dynamics
Positive SOP Market Dynamics More food needed from less land………… increases need for premium quality fertilisers For personal use only SOP DEMAND DRIVERS Increasing Asian Needing more and middle class better quality food New SOP Demand ✓ ✓ Likely Potential New SOP SOP Supply Projects Reducing Crop yi
Slide 26: For personal use only
For personal use only T +61 8 6311 3400 Level 1, 15 GPO Box 2811 E info@bciminerals.com.au Rheola St West West Perth WA 6872 W www.bciminerals.com.au Perth WA 6005