Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — H1 FY2015 Earnings Presentation
29 slides from Bci Minerals's earnings presentation, Feb 24, 2015
Slide 1: Half-year Results Presentation
For personal use only Half-year Results Presentation Morgan Ball (MD) / Chris Hunt (CFO) ASX:BCI 24 Feb ‘15
Slide 2: Attractive Investment Proposition
ATTRACTIVE INVESTMENT PROPOSITION For personal use only Cost focus: Achieving success in reducing operating costs At target production: NJV operating at 6Mtpa run-rate and Iron Valley operating at initial 4-6Mtpa run-rate Quality product: ‘Bonnie Fines’ a highly sought-after DSO sinter feed an
Slide 3: Half-Year Review
For personal use only HALF-YEAR REVIEW 3
Slide 4: Half-Year Review – Operational
HALF-YEAR REVIEW – OPERATIONAL For personal use only NJV shipped 2.33M wmt at FOB C1 cash costs of A$60/wmt, and realised a CFR price of US$64/dmt NJV production and costs impacted by clay-related operational challenges during Aug-Oct 2014 Shipped 0.78M wmt (3.1Mtpa run-rate) during this perio
Slide 5: Half-Year Review – Financial
HALF-YEAR REVIEW – FINANCIAL For personal use only Financial results impacted by declining iron ore prices and clay-related operational challenges at NJV BC Iron revenue of $133.3M and net loss after tax of $96.3M Underlying net loss of tax of $18.4M after adjusting non-cash and one-off items
Slide 6: Half-Year Key Metrics
HALF-YEAR KEY METRICS For personal use only Half-year to Half-year to Item 31-Dec-14 31-Dec-13 NJV shipments – 100% basis (M wmt) 2.33 3.14 NJV shipments – BC Iron share (M wmt) 1.84 2.46 Iron Valley shipments (M dmt) 0.79 n.a. BCI average realised price – NJV ($US/dmt, CFR) 64 119 Average exchange
Slide 7: NJV Operational Performance
NJV OPERATIONAL PERFORMANCE Ore Mined (M dmt) Ore Produced (M wmt) For personal use only 3.5 3.5 3.0 3.0 2.5 2.5 2.0 2.0 1.5 1.5 1.0 1.0 0.5 0.5 0.0 0.0 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 FY11 FY12 FY12 FY13 FY13 FY14 FY14 FY15 FY11 FY12 FY12 FY13 FY13 FY14 FY14 FY15 Ore Shipped (M wmt)
Slide 8: BCI Financial Performance
BCI FINANCIAL PERFORMANCE Revenue ($M) EBITDA ($M) For personal use only 350 140 300 120 250 100 80 200 60 150 40 100 20 50 0 0 -20 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 FY11 FY12 FY12 FY13 FY13 FY14 FY14 FY15 FY11 FY12 FY12 FY13 FY13 FY14 FY14 FY15 NPAT ($M) Cash and Debt ($M) 80 250 60 C
Slide 9: EBITDA Variance
EBITDA VARIANCE For personal use only Volume variance Price variance Other 160 Due to reduced tonnages associated 140 with clay-related 119.1 (75.6) production issues 120 100 44.5 80 Due to increased unit costs associated with clay-related 60 production issues 40 20 11.1 - (7.4) (91.8) (7.0) (1.2) (
Slide 10: Cash Balance Movement
CASH BALANCE MOVEMENT For personal use only 200 Due to clay-related production issues and revenue from two 180 shipments being outstanding 158.9 (29.8) as at 31-Dec-14 160 24.3 (18.6) 140 (4.3) (5.8) (18.7) 120 4.0 110.1 100 80 60 40 20 - Cash at Pre-tax Tax Capex Net Cash from Debt Dividends Other
Slide 11: BC Iron Outlook
BC IRON OUTLOOK For personal use only Successfully ramped back up to 6Mtpa run-rate in Nov-14 $2-3/wmt of sustainable C1 cash cost savings identified NJV sales guidance for FY15 of 5.2-5.6Mtpa NJV C1 cash costs of $47-51/wmt (FOB) for Dec-14 to Jun-15 period NJV Continue to build on sustai
Slide 12: BC Iron Overview
For personal use only BC IRON OVERVIEW 12
Slide 13: Corporate Overview
CORPORATE OVERVIEW For personal use only Capital Structure Share Price vs Iron Ore Price 6.00 250 Ordinary Shares 196.2m Iron Ore Price (US$/t) 5.00 Share Price (at 23-Feb-15) $0.53 200 Share Price (A$) 4.00 Market Capitalisation $104m 150 Cash (at 31-Dec-14) $110m 3.00 100 Debt (at 31-Dec-14) $43m
Slide 14: BC Iron Key Assets
BC IRON KEY ASSETS For personal use only Cape Preston East Port Tenure 20 year lease Maitland River Status Updating feasibility study Capacity 20 Mtpa Nullagine JV Ownership 75% Mardie Status Operating Production Rate 6 Mtpa Buckland Project Reserves1,2 29Mt @ 56.5% Fe Resources1,2 97Mt @ 52.9% Fe B
Slide 15: BC Iron Reserves / Resources
BC IRON RESERVES / RESOURCES For personal use only Reserves (Equity Basis)1 Tonnes Fe CaFe SiO2 Al2O3 P LOI Project (Mt) (%) (%) (%) (%) (%) (%) Nullagine2 21.6 56.5 64.1 3.2 2.2 0.02 12.0 Buckland 134.3 57.6 62.6 6.5 2.4 0.15 8.0 Iron Valley 134.7 58.5 63.0 4.9 3.2 0.17 7.2 Total 290.6 57.9 62.9 5.
Slide 16: NJV – Overview
NJV – OVERVIEW For personal use only A producing mine 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 (through TPI) and mar
Slide 17: NJV – Operations
NJV – OPERATIONS For personal use only Contract mining utilising Vermeer and Wirtgen surface miners Mine plan has four areas – currently mining at Outcamp and Warrigal Mining Mine life of ~5 years, with average remaining LOM strip ratio of 1.5:1 Processing Dry crushing & screening process
Slide 18: Iron Valley
IRON VALLEY For personal use only Operating mine that is generating cash flows via iron ore sale agreement with MIN. Iron ore sale agreement with Mineral Resources Limited (MIN) BC Iron retains tenement ownership and statutory obligations (incl. government royalties) MIN operates the mine at M
Slide 19: Buckland – Overview
BUCKLAND – OVERVIEW For personal use only Development project with an independent infrastructure solution. Wholly owned project located in the West Pilbara region Ore Reserve of 134.3 Mt at 57.6% Fe1 and Mineral Resource of 283.2 Mt at 56.5% Fe1 Feasibility study completed by IOH in June 2014
Slide 20: Buckland – Cape Preston East
BUCKLAND – CAPE PRESTON EAST For personal use only Cape Preston East port lease secured Exclusive rights to construct and operate onshore & marine facilities Up to 20Mtpa operation for 20 years with options to expand Potential for third party tonnages Potential transhipment facility No r
Slide 21: Buckland – Strategy
BUCKLAND – STRATEGY For personal use only Consider all mine / infrastructure / financing options for 6-12 months and determine the optimal development and financing path for Buckland. Mine development options Develop mine as per feasibility study (i.e. 8Mtpa operation) Smaller scale, lower capit
Slide 22: BC Iron Outlook
BC IRON OUTLOOK For personal use only Successfully ramped back up to 6Mtpa run-rate in Nov-14 $2-3/wmt of sustainable C1 cash cost savings identified NJV sales guidance for FY15 of 5.2-5.6Mtpa NJV C1 cash costs of $47-51/wmt (FOB) for Dec-14 to Jun-15 period NJV Continue to build on sustai
Slide 23: Appendices
For personal use only APPENDICES 23
Slide 24: NJV Reserves & Resources
NJV RESERVES & RESOURCES For personal use only CID Mineral Resource at 31 December 2014 (BC Iron 75%, FMG 25%) Classification Mt Fe% CaFe% Al2O3% SiO2% P% S% LOI Measured 14.8 53.6 61.2 3.9 4.5 0.014 0.012 12.4 Indicated 34.6 54.1 61.6 3.2 4.4 0.018 0.012 12.1 Inferred 48.0 51.9 58.6 5.5 6.7 0.023 0
Slide 25: Buckland and Iron Valley Reserves
BUCKLAND AND IRON VALLEY RESERVES For personal use only Buckland Project Ore Reserve at 30 June 2014 JORC Cut-off TonnesB Fe CaFe SiO2 Al203 P LOI Project Deposit Ore Reserve (% Fe) (Mt) (%) (%) (%) (%) (%) (%) Proved 23.2 58.3 62.9 5.8 2.9 0.15 7.4 Bungaroo South Probable 106.7 57.5 62.6 6.6 2.3 0.
Slide 26: Buckland, Iron Valley and Maitland Resources
BUCKLAND, IRON VALLEY AND MAITLAND RESOURCES For personal use only IOH Projects Total Mineral Resource at 30 June 2014 JORC Cut-off TonnesB Fe CaFe SiO2 Al2O3 P LOI Location Type Project Deposit Class (%Fe) (Mt) (%) (%) (%) (%) (%) (%) Central Indicated 50 216.3 58.4 63.0 5.1 3.1 0.18 7.2 Iron Valle
Slide 27: Important Notices
IMPORTANT NOTICES For personal use only Ore Reserves and Mineral Resources Disclosures The information in this announcement that relates to Mineral Resources and Ore Reserves at the Nullagine Joint Venture is extracted from the ASX announcement entitled NJV Ore Reserves and Mineral Resources dated 2
Slide 28: Important Notices
IMPORTANT NOTICES For personal use only This document has been prepared by BC Iron Limited (“BC Iron”) to provide an update regarding the companies to investors. Past performance Past performance information given in this document is given for illustrative purposes only and should not be relied upon
Slide 29: For personal use only
For personal use only Level 1, 15 Rheola Street West Perth, WA, Australia Phone : +61 8 6311 3400 Email : info@bciron.com.au Website : www.bciron.com.au