Slide 1: Simply Better Graphite: Investor Update
Black Rock Mining Mahenge Graphite Mine For personal use only Simply Better Graphite: Investor Update Africa Down Under, Perth September 2022
Slide 2: Important notices
Important notices This presentation has been prepared by Black Rock Mining Limited (Black Rock or the Company) and has been approved by the Board of Black Rock . For personal use only The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and
Slide 3: Table of Contents
Black Rock ▪ Corporate overview: Black Rock at a glance 4 and the For personal use only ▪ Black Rock team 5 Mahenge ▪ Milestones delivered 6 Graphite ▪ The outlook for graphite 7 Mine ▪ Premier Location 13 ▪ A snapshot of the Mahenge graphite mine 14 Table of Contents ▪ ESG Focus 15 ▪ Graphite Playb
Slide 4: Black Rock at a glance
Black Rock at a glance Capital structure ASX ticker BKT Premium graphite player Share price (25 August 2022) $0.15 For personal use only Shares on issue 977.3 M Developing the Tier 1 scale Mahenge graphite project in Tanzania (2nd largest reserve globally) Options and performance rights 65.3 M Marke
Slide 5: Black Rock team
Black Rock team Board of Directors Management For personal use only Richard Crookes, Non-exec Chairman: Geologist with over 30 years’ Steuart McIntyre, GM Corporate Development: Mining analyst with over 15 executive experience in the resources and finance industries; raised capital years experience.
Slide 6: Milestones Delivered
Milestones ▪ Free Carried Interest Framework Agreement signed with Govt of Tanzania ▪ 500t pilot plant qualification run completed, the largest in the sector Delivered For personal use only ▪ Term Sheet signed with POSCO for Offtake and US$10m Pre-payment In the last 12 months ▪ ICA Partners appoint
Slide 7: Graphite in batteries
Graphite in Graphite is the dominant anode material, regardless of battery chemistry batteries For personal use only LFP NMC 111 NMC 532 NMC 811 NCA 17% 15% 16% 16% 11% There is more 29% 43% Cathode (+) graphite in Li-ion 68% 73% 83% 29% batteries by volume 24% than any other 27% 8% 17% 14% material
Slide 8: Growing importance of natural graphite in batteries
Growing importance of natural graphite in batteries Natural 100% graphite For personal use only 75% 48% 41% 58% increasing in 50% batteries 25% 39% 48% 49% 0% The use of natural 2020 2025 2030 Natural graphite Synthetic graphite Silicon LTO Other graphite in batteries has been growing Demand for LIB
Slide 9: Strong outlook for natural graphite
Strong Structural deficits in natural graphite predicted from 2022 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500,000 outlook for For personal use only natural 0 Market Balance (tpa) graphite -500,000 Market size ~1.2mt in 2022 -1,000,000 Benchmark expects -1,500,000 graph
Slide 10: Graphite supply chain for batteries is more dependent on China
Li-ion battery EXTRACTION PROCESSING ANODE/CATHODE PRODUCTION BATTERY CELL MANUFACTUARING raw materials Other, For personal use only EU, 4% 17% US, 10% EU, 6% GRAPHITE Other, China, China, supply chain 23% 73% 73% Other, 11% China, China, 100% 83% by country COBALT Other, 99% China, 1% EU, 17% Other
Slide 11: Price increases with flake size
Price increases with flake size Graphite Uses For personal use only Black Rock has a diversified product SMALL FLAKE (FINES) LARGE FLAKE JUMBO FLAKE mix with 60% Lithium-Ion Batteries Flame Retardants Flame Retardants exposure to the high Paint & Coatings Refractories Gaskets & Seals margin large fl
Slide 12: Robust graphite prices
Graphite prices over past 12-months for Mahenge's 5 products Robust US$/t 2,000 Graphite 1,750 For personal use only 1,500 prices 1,250 1,000 750 Current graphite 500 25/08/21 25/11/21 25/02/22 25/05/22 25/08/22 prices are similar to Split in Mahenge basket: 32% -195 9% +195 36% +895 18% +595 5% +32
Slide 13: Premier location
Premier location For personal use only AFRICA Well positioned in Dar es Salaam East Africa’s growing Graphite belt Mahenge Graphite Mine TANZANIA Tanzania seeking to encourage investment - BKT signed FCI Agreement with Govt (Dec 2021) - BHP committed US$100m in Kabanga Nickel (Jan 2022) 13
Slide 14: A snapshot of the Mahenge Graphite Mine
A snapshot of the Mahenge Graphite Mine Simple open pit mine development with outstanding forecast returns1 For personal use only US$1.5B 45% 83ktpa NPV10 nom post tax, post 16% FC Post-tax, ungeared, real IRR Module 1 production (1Mtpa) 95 – 99%+ TGC purity US$116M 340ktpa 59% +80 mesh, 41% -80 Mod
Slide 15: ESG Focus
ESG Focus Digbee ESG engaged For personal use only to ensure best practice Customer Markets A new greener source ▪ Higher grade concentrate reduces manufacturing of graphite Hydro Electric Power ▪ Low carbon power supply, and transport footprint and energy consumption ▪ Reduced community vehicle int
Slide 16: Graphite Playbook
MAJORITY OF PRE-CONSTRUCTION INVESTMENT Graphite PILOT PLANT QUALIFICATION Playbook For personal use only CUSTOMERS & OFF-TAKES GOVERNMENT Free-Carried Interest Shareholding Agreement EPC Sequential development that is customer driven DRILLING SOCIAL LICENCE STUDY WORK MINING LICENCE & FINANCING APR
Slide 17: Development Timetable
Development ▪ Debt process underway, aiming to finalise debt in the next few months1 Timetable For personal use only ▪ Black Rock is targeting up to 50-60% debt via traditional project finance Aiming to have debt finance in place for ▪ Construction period 15 months2 Module 1 in the next few months.
Slide 18: Advancing Next Steps
Advancing ▪ Project milestones: ▪ Grant of SML to unify existing MLs (already agreed with Govt) Next Steps For personal use only ▪ Complete early works and Resettlement Action Plan ▪ Continue to recruit for key roles, particularly in Tanzania Black Rock expects to complete a number of ▪ Offtake mile
Slide 19: Black Rock: The premier graphite exposure
Black Rock: The premier graphite exposure A world-class deposit with a superior development strategy For personal use only 01 Upstream focus with highly economic mine project 06 Premier location and logistics options 02 Deep evaluation work for Tier 1 scale project 07 Fit-for-purpose project executi
Slide 20: For personal use only
Richard Crookes For personal use only John de Vries Chairman E: richard.crookes@blackrockmining.com.au Managing Director and CEO Steuart McIntyre T: +61 438 356 590 GM Corporate Development E: jdv@blackrockmining.com.au T: +61 413 555 609 A: Level 1, 1 Walker Avenue E: sm@blackrockmining.com.au West
Slide 21: Appendix
For personal use only Appendix
Slide 22: Why Black Rock?
Why Black Rock ? For personal use only Unique competitive advantages driven by Geology and Geography GEOLOGY GEOGRAPHY ★ Mahenge’s 213mt resource makes it the 4th largest graphite ★ Access to key infrastructure, Grid Power, Rail, Airstrip, Water resource in the world1 and Tailings disposal (dry stac
Slide 23: Battery demand growth
Battery Battery Raw Material Demand Growth (kt) 5,903 demand 6,000 For personal use only growth 5,000 4,241 4,000 3,689 A synchronised global technology 3,000 2,645 2,869 change is underway and is expected to 2,000 1,652 drive strong demand for battery materials 1,000 914 693 654 506 342 185 0 2020
Slide 24: Offtake Agreements
Offtake 100.0 Mahenge Offtake for Module 1 (83ktpa) Agreements For personal use only 90.0 Almost 90% of 80.0 15.0 15.0 15.0 15.0 15.0 Mahenge’s Module 1 70.0 production is under 60.0 15 15 15 binding offtake or 50.0 45 45 option 30 30 30 40.0 30.0 20.0 26.6 26.6 26.6 26.6 26.6 10.0 0.0 Year 1 Year 2