Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — Merger or Acquisition (August 2014)
22 slides from Bci Minerals's merger presentation, Aug 11, 2014
Slide 1: Acquisition of Iron Ore Holdings
For personal use only Acquisition of Iron Ore Holdings BCI to Strengthen Pilbara Iron Ore Portfolio ASX:BCI ASX:IOH 11 Aug 2014
Slide 2: Transaction Details
Transaction Details For personal use only Structure Recommended off-market takeover for 100% of IOH shares 0.44 new BC Iron shares plus $0.10 cash for each IOH share BC Iron will enter into private treaty arrangements with IOH option holders to acquire all of their options Offer Value A$1.59
Slide 3: Strategic Rationale
Strategic Rationale For personal use only BC Iron to strengthen its Pilbara portfolio with acquisition of IOH. Enhanced asset Creates a leading mid-cap iron ore company with an attractive and complementary portfolio of 1 portfolio production and development assets in the Pilbara, the world’s best
Slide 4: Overview of Combined Group
Overview of Combined Group For personal use only Cape Preston East Port Maitland River Tenure 20 year lease Ownership 100% Status Feasibility complete Status Exploration/Concept Study Capacity 20 Mtpa Resources1 1,106Mt @ 30.4% Fe Nullagine JV Ownership 75% Status Operating Mardie Production Rate 6
Slide 5: Benefits to Shareholders
Benefits to Shareholders For personal use only The Boards of BC Iron and IOH believe the transaction delivers significant benefits to both sets of shareholders. Benefits for IOH Shareholders Benefits for BC Iron Shareholders Immediate and material value uplift through Secures long-term future in
Slide 6: Transaction Premiums
Transaction Premiums For personal use only The transaction terms imply premiums of 64-79% for IOH shareholders. $1.56 $1.58 $1.58 $1.59 64% 71% 77% 79% $0.95 $0.93 $0.89 $0.89 Last Closing Price 5 day VWAP 30 day VWAP 60 day VWAP Implied Offer Price IOH Share Price Note: Implied offer price calculat
Slide 7: Combined Group – Overview
Combined Group – Overview For personal use only Capital Structure Board Shareholder Breakdown Ordinary Shares 196.2m Tony Kiernan Morgan Ball Non-Executive Chairman Managing Director & CEO Share Price (at 8-Aug-14) $3.31 Andy Haslam Malcolm McComas Other IOH Non-Executive Director Non-Executive Dire
Slide 8: Nullagine Joint Venture
Nullagine Joint Venture For personal use only A producing DSO mine with access to world-class infrastructure. Located ~55km north of FMG’s Christmas Creek Unincorporated joint venture – 75% BC Iron, 25% FMG BC Iron is the Operator and Manager of the NJV FMG provides rail & port services (thr
Slide 9: Iron Valley
Iron Valley For personal use only Near production mine expected to generate meaningful, low risk cash flows. Mine gate sale agreement with Mineral Resources Limited (MIN) IOH to retain tenement ownership and statutory obligations (incl. government royalties) MIN to develop and operate mine at
Slide 10: Buckland Project – Overview
Buckland Project – Overview For personal use only A potential mine with an independent infrastructure solution. Wholly owned project located in the West Pilbara region JORC Ore Reserve of 134.3 Mt at 57.6% Fe1 JORC Resource of 283.2 Mt at 56.5% Fe1 Potential 8 Mtpa operation for 15 years at
Slide 11: Buckland Project – Feasibility Study Results
Buckland Project – Feasibility Study Results For personal use only The Feasibility Study has confirmed Buckland’s technical and financial viability. Capital Cost Estimate Operating Cost Estimate: LOM Average Area Initial ($M) Area $/dmt $/wmt1 Mining & Processing 149 Mining & Processing 18.36 Haul R
Slide 12: Buckland Project – Cape Preston East
Buckland Project – Cape Preston East For personal use only The Feasibility Study has confirmed Buckland’s technical and financial viability. Cape Preston East port lease secured Exclusive rights to construct and operate onshore & marine facilities Up to 20Mtpa operation for 20 years with optio
Slide 13: Combined Group – Other Assets
Combined Group – Other Assets For personal use only Asset Ownership Location Description Resources Koodaideri - Central Pilbara – 20 2% FOB revenue royalty is payable to - South Royalty km NW of Iron Valley IOH by Rio Tinto on any ore mined from the project North Marillana - Central Pilbara – 50
Slide 14: FY14 Final Dividend Guidance
FY14 Final Dividend Guidance For personal use only Following completion of the FY14 financial results audit, BC Iron expects to announce a fully franked, final dividend of A$0.15 per share (subject to Board approval on 27 August 2014) The dividend will be payable to BC Iron shareholders on the R
Slide 15: Indicative Timetable
Indicative Timetable For personal use only Milestone Indicative Date Transaction announcement Monday, 11 August Lodge Bidder’s & Target’s Statements Late August Despatch Bidder’s & Target’s Statements Late August Offer opens Late August Declare dividend Wednesday, 27 August Record date for dividend
Slide 16: Appendices
For personal use only Appendices 16
Slide 17: Nullagine JV Ore Reserves & Mineral Resources
Nullagine JV Ore Reserves & Mineral Resources For personal use only NJV Ore Reserve at 31 Dec 2013 (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.
Slide 18: IOH Ore Reserves
IOH Ore 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 0.15 8.1 Proved - -
Slide 19: IOH Mineral Resources
IOH Mineral Resources For personal use only IOH 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 ValleyA Iron Valley Pilbara Inferred
Slide 20: Notices Regarding Ore Reserves & Mineral Resources
Notices Regarding Ore Reserves & Mineral Resources For personal use only BC Iron Ore Reserves and Mineral Resources Disclosures The information in this announcement is extracted from the ASX announcement entitled NJV Ore Reserves and Mineral Resources dated 3 March 2014 and is available to view on h
Slide 21: Important Notice
Important Notice For personal use only This document has been prepared by BC Iron Limited (“BC Iron”) and Iron Ore Holdings Ltd (“IOH”) to provide an update regarding the companies to investors. Past performance Past performance information given in this document is given for illustrative purposes o
Slide 22: 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