Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — Shareholder Meeting (November 2014)
28 slides from Bci Minerals's shareholder meeting presentation, Nov 19, 2014
Slide 1: Annual General Meeting Presentation
For personal use only Annual General Meeting Presentation Morgan Ball – Managing Director ASX:BCI 19 Nov ‘14
Slide 2: Key Themes
KEY THEMES For personal use only Record year at NJV with 5.8M wmt shipped (BC Iron share 4.3M wmt) Excellent FY14 Record revenue ($471M) and NPAT ($74M) $0.32 per share in fully franked dividends declared Additional clay detected in discrete areas – affected Sep Q production and costs Operat
Slide 3: Corporate Overview
CORPORATE OVERVIEW For personal use only Capital Structure Share Price vs Iron Ore Price 6.00 250 Ordinary Shares 191.7m Iron Ore Price (US$/t) 5.00 Share Price (at 18-Nov-14) $0.655 200 Share Price (A$) 4.00 Market Capitalisation $126m 150 Pro-forma Cash (at 30-Sep-14)1 $136m 3.00 100 Pro-forma Deb
Slide 4: Share Price in Perspective
SHARE PRICE IN PERSPECTIVE For personal use only Share Price 6.00 Despite recent share price decline: 5.00 BC Iron remains one of strongest 4.00 performers since Jul-12 3.00 Performance has been in line with 2.00 majority of peers since Jan-14 1.00 0.00 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 1 TSR
Slide 5: FY14 Review
For personal use only FY14 REVIEW 5
Slide 6: FY14 Highlights
FY14 HIGHLIGHTS For personal use only Record results across all NJV operating activities, $0.32 per share in fully franked dividends including Approximately $40M in total 5.8M wmt shipped (BCI share 4.3M wmt) Payout ratio of 54% of NPAT Record financial results Debt reduced by $51M (in
Slide 7: FY14 and Historical Dividends
FY14 AND HISTORICAL DIVIDENDS For personal use only $0.32 per share (fully franked) paid for FY14 Dividend History Approx. $40M in total Period Dividend (cps) Continues history of paying fully franked dividends FY14 Final 15 (fully franked) FY14 Interim 17 (fully franked) $0.82 per share pai
Slide 8: FY15 and Beyond
For personal use only FY15 AND BEYOND 8
Slide 9: Iron Ore Market Update
IRON ORE MARKET UPDATE For personal use only Downward trending iron ore price in 2014 to date Iron Ore Price and Discounts 180 25% Platts 58 Discount (FOB) Increase in supply from Australian majors Platts 62 Price (US$/t) 160 20% Soft property sector and tight credit conditions 140 15% in Chin
Slide 10: China Outlook
CHINA OUTLOOK For personal use only Further stimulus / easing recently announced US$113bn in new infrastructure projects approved since mid- Oct (16 railway projects and 5 airport projects) Property restrictions eased for 2nd and 3rd home buyers with no outstanding mortgage – lower deposits an
Slide 11: BC Iron Pilbara Assets
BC IRON PILBARA ASSETS 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 Mtpa
Slide 12: 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 23.7 56.8 64.7 3.1 2.0 0.02 12.1 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 292.7 57.9 63.0 5.
Slide 13: BC Iron Strategy
BC IRON STRATEGY For personal use only Consolidate operations at 6Mtpa run-rate for remainder of FY15 NJV Implement strategy to manage clays as they arise going forward Further optimise the operation and reduce costs to maximise value Consider all mine / infrastructure / financing options fo
Slide 14: NJV – Update
NJV – UPDATE For personal use only NJV Update Additional clays detected in discrete areas of mesas, as announced in August 2014 Reduced production and shipping in Sep quarter, in line with expectations Strategy now in place for managing clays if / when they arise going forward Ramping back u
Slide 15: 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 16: NJV – Operations
NJV – OPERATIONS For personal use only Contract mining utilising Vermeer and Wirtgen surface miners Mine plan comprises four areas – currently mining at Outcamp and Warrigal Mining Current mine life of ~6 years, with remaining LOM strip ratio of 1.3:1 Processing Dry crushing & screening proc
Slide 17: Iron Valley
IRON VALLEY For personal use only A producing mine that will generate cash flows via mine gate sale to MIN. Mine gate sale agreement with Mineral Resources Limited (MIN) BC Iron retains tenement ownership and statutory obligations (incl. government royalties) MIN operates the mine at MIN’s cos
Slide 18: Buckland – Overview
BUCKLAND – OVERVIEW For personal use only Development project with a potential 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 J
Slide 19: Buckland – Video
BUCKLAND – VIDEO For personal use only Available to view at: www.bciron.com.au/our-assets/buckland.html 19
Slide 20: Buckland – Strategy
BUCKLAND – STRATEGY Intention that BC Iron will not be required to fund the entire feasibility study derived For personal use only capex as debt / equity on its balance sheet Consider all mine / infrastructure / financing options for 6-12 months and determine the optimal development and financin
Slide 21: BC Iron Strategy Recap
BC IRON STRATEGY RECAP For personal use only Consolidate operations at 6Mtpa run-rate for remainder of FY15 NJV Implement strategy to manage clays as they arise going forward Further optimise the operation and reduce costs to maximise value Consider all mine / infrastructure / financing opti
Slide 22: Appendices
For personal use only APPENDICES 22
Slide 23: NJV Reserves & Resources
NJV RESERVES & RESOURCES For personal use only CID Mineral Resource at 30 June 2014 (BC Iron 75%, FMG 25%) Classification Mt Fe% CaFe% Al2O3% SiO2% P% S% LOI Measured 21.2 54 61.7 3.4 4.3 0.014 0.012 12.5 Indicated 38.1 53.8 61.7 3.3 4.5 0.017 0.012 12.7 Inferred 46.7 52.1 58.8 5.4 6.6 0.024 0.018 1
Slide 24: 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 25: Buckland, Iron Valley and Maitland Resources
BUCKLAND, IRON VALLEY AND MAITLAND 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 V
Slide 26: 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 27: 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 28: 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