Bci Minerals Ltd · ASX:BCI
Bci Minerals — Investor Presentation (November 2021)
29 slides from Bci Minerals's investor presentation, Nov 25, 2021
Slide 1: Developing the Multi-Generational Mardie Salt & Potash Project
For personal use only Developing the Multi-Generational Mardie Salt & Potash Project Corporate Presentation Alwyn Vorster Managing Director 25 November 2021 ASX:BCI www.bciminerals.com.au
Slide 2: Important Notices
Important Notices Not an Offer of Securities This document has been prepared by BCI Minerals Limited ABN 21 120 646 924 (“BCI”) and is provided for information purposes only. This document does not constitute or contain an offer, invitation solicitation or recommendation with respect to the purchase
Slide 3: BCI Overview
BCI Overview For personal use only MARDIE SALT & IRON VALLEY POTASH PROJECT ROYALTIES ~$270M market cap1 ~$106M cash and zero debt2 BCI SHARE PRICE vs IRON ORE PRICE BCI SHARE PRICE vs ASX 300 150% 180% 100% 120% Performance Performance 50% 60% 0% 0% -50% -60% Last 12 Months Last 12 Months BCI Share
Slide 4: BCI Results in Numbers
BCI Results in Numbers FY21 GROUP FINANCIALS For personal use only $160.5M $28.9M $22.0M REVENUE EBITDA NPAT 108% on FY20 248% on FY20 5,400% on FY20 FY21 IRON VALLEY 1Q FY22 IRON VALLEY HEALTH & SAFETY $69.5M $17.1M >6 Years EBITDA EBITDA 202% on FY20 140% on 1Q FY21 without Lost Time Inj
Slide 5: A Year of Milestones
A Year of Milestones Mardie FID after significant project de-risking over several years For personal use only 2021 Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec OPTIMISED RECORD FID MINISTERIAL FEASIBILITY IRON VALLEY APPROVAL STUDY EARNINGS INDEPENDENT $740M EXPERT REPORTS D
Slide 6: Salt and Potash Markets
For personal use only Salt and Potash Markets 6
Slide 7: Why Salt and SOP?
Why Salt and SOP? Strong growth in Mardie’s target markets For personal use only ~35% SALT ASIAN DEMAND >50Mt additional annual ▪ >10,000 products derived from salt demand over next decade1 – (PVC, alumina, glass, paper, water (growing population, purification) requiring more industrial and ▪ Asian
Slide 8: Salt and SOP Price Strength
Salt and SOP Price Strength Salt and SOP Prices driven by strong demand and limited new supply For personal use only SALT Australian Imported Salt into China1,2 ▪ 15-year pricing from ~US$35/t to ~US$75/t 70 delivered1 in Asia 60 ▪ Delivered salt price in China has increased by US$/t, CFR ~30% in th
Slide 9: Mardie Salt & Potash Project
For personal use only Mardie Salt & Potash Project 9
Slide 10: Australian Salt & SOP Landscape
Australian Salt & SOP Landscape Mardie: ideal location to produce high-purity salt and SOP For personal use only Western Australia – Salt and SOP Projects ▪ Pilbara has ideal climate to produce high purity salt – High temperature, high wind, low rainfall, low humidity – Proven salt production region
Slide 11: Mardie Scale will be Globally Significant
Mardie Scale will be Globally Significant Top 3 scale global solar salt project1 PROJECT FOOTPRINT VS SYDNEY/PERTH For personal use only Salt Capacity (Mtpa) 0 1 2 3 4 5 6 7 8 Guerrero Negro [Mexico] Manly Hajipir [India] Parramatta Mardie Salt/SOP Project [WA] 5.3Mtpa Salt Sydney Dampier [WA] Hub-P
Slide 12: Mardie Project Design
Mardie Project Design Largest salt project in Australia – fully integrated with port For personal use only SITE CONDITIONS PROJECT LAYOUT Jetty ▪ >100km2 clay soils – ideal pond floor Salt Plant & ▪ High net evaporation rates (~10mm/day) Port Access Stockyard Road PRODUCTION SOP Pond 9 Plant ▪ 9 eva
Slide 13: Early Construction Progress
Early Construction Progress >$60M of enabling construction works last 12-months to derisk Project For personal use only NORTHERN EMBANKMENT TRIAL ACCOMMODATION VILLAGE SALT PILOT PLANT 13
Slide 14: >$350M Contracts Tendered
>$350M Contracts Tendered >60% of capital cost to be delivered via fixed price contracting model1 For personal use only 1. MAIN SEAWATER PUMP STATION 2. SALT WASH PLANT 3. SOP PROCESS PLANT 4. PORT / TRANSHIPPER 1Planned lump sum packages include those awarded under Engineering, Procurement and Cons
Slide 15: Strong Financial Metrics
Strong Financial Metrics Annuity-style cash flow >60 years1 with material upside For personal use only CAPITAL COST (A$954M real) ▪ A$789M direct ▪ A$165M indirect & contingency FINANCIALS6 ▪ NPV: A$1,561M OPERATING COST (60 year average, real) ▪ Salt A$21.50/t FOB2 ▪ EBITDA: A$256Mpa (Salt ~72%; SO
Slide 16: Salt Cost Curve – Contestable Market
Salt Cost Curve – Contestable Market Mardie will be a low-cost supplier of salt into contestable1 Asian market For personal use only 60 Mardie 50 Salt Only ▪ Mexican solar salt and Chinese rock salt the Mardie marginal cost suppliers Chinese Rock 3rd Tier Other with SOP to most Asian markets Chile 4
Slide 17: Funding for Development and Ramp-up
Funding for Development and Ramp-up Up to $360M of new equity and Convertible Notes to be issued1 For personal use only ▪ Forms part of BCI’s $460M total equity contribution to the Mardie Project, subject to shareholder approvals ▪ Additional to the recently secured $740M of Mardie Project debt2 $74
Slide 18: Positive Stakeholder & Approval Progress
Positive Stakeholder & Approval Progress Native title agreements in place; Approvals and tenure advanced For personal use only GOVERNMENT ▪ NAIF loan of $490M approved1 – largest in WA ▪ EFA loan of $110M approved1 ▪ Efficient WA Government facilitation across agencies ENVIRONMENT ▪ Ministerial Stat
Slide 19: Sustainability Focus
Sustainability Focus A multigenerational project with significant environmental and stakeholder benefits For personal use only 1. HARNESS RENEWABLE RESOURCES ▪ Inexhaustible seawater resource 5. PROVIDE A SAFE ENVIRONMENT ▪ Hybrid power solutions ▪ More than 6-years LTI free workplace 2. MITIGATE CL
Slide 20: Indicative Project Schedule
Indicative Project Schedule 2021 2022 2023 2024 2025 2026 For personal use only Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 H1 | H2 H1 | H2 Early Works; Approvals1 OFFTAKE CONTRACTS NEGOTIATED Funding EQUITY CONTRIBUTION DEBT PERIOD PONDS FID2 CRYSTALLISERS GROW SALT INVE
Slide 21: Mardie will become a Tier Project
Mardie will become a Tier 1 Project Large scale, low cost and long operating life For personal use only ROBUST MARKETS; LARGE SCALE, LOW COST; STRONG STRONG STAKEHOLDER SUSTAINABLE QUALITY PRODUCTS MULTI-GENERATIONAL CASHFLOWS SUPPORT ▪ High purity salt ▪ Largest Australian ▪ 60+ year life2 ▪ Lowest
Slide 22: Why Invest in BCI?
Why Invest in BCI? Steady Capital Growth; Significant Mardie upside potential For personal use only 160% return on investment since November 2019 BCI SHARE PRICE ($/sh) BCI CASH ($M) Up Up $0.4551 160%1 $3623 740%3 $0.4551 Pro Forma $1062 Pro Forma Nov 2021 Nov 2021 $0.25 $81 Nov 2020 Nov 2020 $0.17
Slide 23: Appendices
For personal use only Appendices
Slide 24: Corporate Structure
Corporate Structure Strong Balance Sheet and Supportive Shareholders For personal use only Capital Structure (Pre-raise) Board of Directors2 Shares on Issue 599.96M Brian O’Donnell Non-Executive Chairman Share Price (24 Nov-2021) $0.455 Alwyn Vorster Managing Director 6-month liquidity (24 Nov-2021)
Slide 25: Funding Provided By Iron Valley Royalty
Funding Provided By Iron Valley Royalty Royalty payments provide funding support for Mardie construction For personal use only ▪ Quarterly royalty earnings from operating agreement with IRON VALLEY MINE Mineral Resources Ltd (ASX: MIN) ▪ Iron Valley royalty earnings forecast to provide additional fu
Slide 26: Mardie Production Process
Mardie Production Process1 99% Sun and Wind Energy 4. Salt Wash For personal use only Plant 5. Salt Stockpiles C. SOP Storage Shed 7. Transhipper 6. 2.4km (12,000t) Jetty B. SOP Process Plant 8. Ocean Going Vessel A. KTMS2 (up to Capesize) Crystallisers (5km2) 9. Export 3b. Secondary Salt Crystallis
Slide 27: BCI Board of Directors
BCI Board of Directors Brian O’Donnell Alwyn Vorster Michael Blakiston For personal use only NON-EXECUTIVE CHAIRMAN MANAGING DIRECTOR NON-EXECUTIVE DIRECTOR ▪ Banking and investment background ▪ Geology, Mineral Economics, MBA ▪ Legal and mining business background ▪ Director, Finance and Investment
Slide 28: BCI Executive Team / Key Project Personnel
BCI Executive Team / Key Project Personnel Alwyn Vorster Sam Bennett Stephanie Majteles For personal use only MANAGING DIRECTOR PROJECT DIRECTOR GENERAL COUNSEL/JOINT COMPANY SECRETARY ▪ Geology, Mining and MBA degrees ▪ Civil engineering degree ▪ Law degree ▪ Kumba; Rio Tinto; Iron Ore Holdings ▪ F
Slide 29: For personal use only
For personal use only T +61 8 6311 3400 Level 1, 1 Altona St GPO Box 2811 E info@bciminerals.com.au West Perth West Perth W www.bciminerals.com.au WA 6005 WA 6872