Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — Morgans Financial Limited breakfast, Perth (May 2014)
27 slides from Bci Minerals's conference presentation, May 20, 2014
Slide 1: ASX cover letter for Morgans breakfast presentation
20 May 2014 For personal use only The Manager Company Announcements Office Australian Securities Exchange Dear Sir, BC Iron Limited (ASX:BCI) Following is a presentation on BC Iron Limited which will be given by Managing Director Morgan Ball at a breakfast hosted by Morgans Financial Limited in Pert
Slide 2: Morgans Breakfast Presentation
For personal use only Morgans Breakfast Presentation Morgan Ball – Managing Director 1 ASX:BCI 21 May ‘14
Slide 3: Optimising the NJV | Paying dividends | Considering growth
For personal use only Optimising the NJV | Paying dividends | Considering growth 2
Slide 4: Attractive Investment Proposition
ATTRACTIVE INVESTMENT PROPOSITION For personal use only Scale & liquidity: Market cap and liquidity significantly enhanced post Dec-12. Now an ASX200 member TSR focus: Outperformed peers on TSR basis since Jul-12 Capital management: Robust balance sheet, conservative gearing, ongoing dividends
Slide 5: March 2014 Quarter Review
MARCH 2014 QUARTER REVIEW For personal use only NJV sales of 1.22Mt Exceeded wet season guidance of 1.13Mt Platts CFR62 price of Mining (0.95Mt, NJV basis) and crushing (1.05Mt, NJV US$99.75/dmt on 16 May 14 basis) impacted by very wet January and flow-on effects FY14 C1 cash costs of Invent
Slide 6: NJV Operational Performance
NJV OPERATIONAL PERFORMANCE For personal use only Ore Mined (dmt) Ore Processed (wmt) Ore Shipped (wmt) 1.8 1.8 1.8 1.6 1.6 1.6 1.4 1.4 1.4 1.2 1.2 1.2 1.0 1.0 1.0 0.8 0.8 0.8 0.6 0.6 0.6 0.4 0.4 0.4 0.2 0.2 0.2 0.0 0.0 0.0 5 The NJV budgets for reduced production during the March quarter (Q3) due t
Slide 7: Iron Ore Industry Observations
IRON ORE INDUSTRY OBSERVATIONS For personal use only Volatile, downward trending iron ore price in CY14 Iron Ore Price (62% Fe, CFR China) 150 Customers have recently commenced seeking 140 Iron Ore Price (US$/t) discounts and quotation period flexibility 130 FY14 average Pricing pressure drive
Slide 8: Iron Ore Outlook
IRON ORE OUTLOOK For personal use only Current industry dynamics will place pressure on higher cost / lower quality sources of supply Private domestic production in China is high on cost curve and expected to react rationally to price falls Preference for higher quality ores, which will impact
Slide 9: Corporate Overview
CORPORATE OVERVIEW For personal use only Capital Structure Share Price and Volume Ordinary Shares 124.0m $5.50 7 Share Price (at 19-May-14) $3.63 $5.00 6 $4.50 5 Market Capitalisation $450m Volume (m) Share Price $4.00 4 Cash (at 31-Mar-14) $149m $3.50 3 Debt (at 31-Mar-14) $65m $3.00 2 Enterprise V
Slide 10: Peer Comparison
PEER COMPARISON For personal use only Total Shareholder Return – 1 Jul 12 to Current Why has BC Iron outperformed its peers? Quality project with low capital intensity 76% Low risk Continued strong operational performance (7%) (6%) Strong management and appropriate capital (60%) (57%) (90%)
Slide 11: Dividends and Dividend Guidance
DIVIDENDS AND DIVIDEND GUIDANCE For personal use only FY14 FY13 FY13 FY12 Interim Dividend Final Dividend Interim Dividend Full Year Dividend1 Dividend (cps) 17 30 5 15 Franking Fully franked Fully franked Fully franked Fully franked Total Dividend ($M) 21.1 37.1 6.2 15.6 Payout Ratio (% Statutory N
Slide 12: Nullagine Joint Venture (NJV)
NULLAGINE JOINT VENTURE (NJV) For personal use only A producing DSO project with access to world-class infrastructure. Unincorporated joint venture – 75% BC Iron, 25% FMG BC Iron is the Operator and Manager of the NJV FMG provides rail & port services (through its wholly-owned infrastructure s
Slide 13: Mining – Overview
MINING – OVERVIEW For personal use only A fully contracted operation with low capital intensity. Contract mining by WATPAC, utilising Vermeer and Wirtgen surface miners Mine plan comprises four major deposits Currently mining Outcamp and Warrigal Bonnie East contributes from FY16 and Coongan
Slide 14: Mining – Overview
MINING – OVERVIEW For personal use only Mining Area Bottom of Orebody Water Table Shallow “pits” using surface mining Above water table - lower environmental 13 impact, no wet ore.
Slide 15: Mining – Surface Miners
MINING – SURFACE MINERS For personal use only Mesa edge bund wall Surface miner cut panel Ore block piles Vermeer & Wirtgen Surface Miners Rotating drum cutters – no drill & blast Environmental benefits, reduced run off 14 Provides primary crushing Surface mining results in reduced equipment
Slide 16: Processing and Logistics
PROCESSING AND LOGISTICS For personal use only Crushing / Screening (WATPAC) Road Haulage (Toll & Roadtrim) Rail and Port Services (FMG/TPI) Simple crushing & screening Ore trucked via private sealed World class rail and port process road to dedicated stockyard at Access to Capesize vessels
Slide 17: Project Inventory
PROJECT INVENTORY For personal use only Assessing potential for increases in Reserves and mine life Targeting in-pit low grade… … and near- Targeting a mine life extension of 2 to 5 years pit low grade Focus on beneficiation of low grade (50-55% Fe) Potential to increase Reserves and mine li
Slide 18: Bonnie Fines Overview
BONNIE FINES OVERVIEW For personal use only Bonnies Fines well accepted - consistent demand. “Bonnie Fines” pisolite sinter blend improves sintering productivity at the steel mill High calcined Fe driven by high Loss On Ignition (LOI) Low impurities, low ultra-fines and low moisture Low Al a
Slide 19: Business Development
BUSINESS DEVELOPMENT For personal use only Goals Retain and enhance ability to pay dividends Generate value for shareholders (risk adjusted) via organic and inorganic opportunities Business Development Priorities Extend life of the NJV Priority 1 (Project Inventory) Growth in the rest of Priorit
Slide 20: Brazil Exploration Earn-In
BRAZIL EXPLORATION EARN-IN For personal use only BC Iron / Cleveland alliance staged earn-in to exploration projects in Bahia and Minas Gerais No upfront payments and appropriately staged expenditure and payments provides optionality First pass RC drilling completed at 5 prospects in Bahia S
Slide 21: Optimising the NJV | Paying dividends | Considering growth
For personal use only Optimising the NJV | Paying dividends | Considering growth 20
Slide 22: Appendices
APPENDICES For personal use only APPENDICES 21
Slide 23: BC Iron Limited – Board
BC IRON LIMITED – BOARD For personal use only Board of Directors Tony Kiernan, Non-exec Chairman – formerly a solicitor Andy Haslam, Non-exec Director – a mining engineer with extensive experience in management and operation with 27 years operational and management experience. of Australian public c
Slide 24: Ore Reserves & Mineral Resources - Dec '13
ORE RESERVES & MINERAL RESOURCES - 31 DEC ‘13 For personal use only Ore Reserve Estimate NJV (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 0.014 0.
Slide 25: Important Notice
IMPORTANT NOTICE For personal use only This document has been prepared by BC Iron Limited (“BC Iron” or “Company”) to provide an update of BC Iron to investors and potential new shareholders. Past performance Past performance information given in this document is given for illustrative purposes only
Slide 26: Optimising the NJV | Paying dividends | Considering growth
For personal use only Optimising the NJV | Paying dividends | Considering growth 25
Slide 27: For personal use only
For personal use only ASX:BCI Level 1, 15 Rheola Street West Perth, WA, Australia Phone : +61 8 6311 3400 email : info@bciron.com.au www.bciron.com.au
BC Iron — Morgans Financial Limited breakfast, Perth (May 2014) on 6ix