Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — Shareholder Meeting (November 2015)
25 slides from Bci Minerals's shareholder meeting presentation, Nov 24, 2015
Slide 1: 2015 Annual General Meeting
For personal use only 2015 Annual General Meeting Morgan Ball – Managing Director ASX:BCI 24 Nov ‘15
Slide 2: Key Themes from FY15
KEY THEMES FROM FY15 For personal use only Persistent decline in iron ore prices, partially offset by exchange rate and freight Challenging FY15 Operational challenges affected 1H FY15 production and costs at the NJV Sales guidance lowered from 6Mtpa capacity for FY16 to facilitate near-mine N
Slide 3: Iron Ore Market
IRON ORE MARKET For personal use only Iron Ore Price ($/dmt) Commentary 100 Persistent decline in US$ CFR 90 iron ore prices 80 Increased supply and threat 70 of further supply 60 Softening steel demand in 50 China 40 Partially offset by favourable Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 m
Slide 4: FY15 Financial Results
FY15 FINANCIAL RESULTS For personal use only Full-year results affected by NJV operational challenges in the first half and declining iron ore prices, particularly in the second half Revenue of A$281.2M, EBITDA of A$0.1M and net loss after tax of A$158.5M Total non-cash impairment for FY15 of
Slide 5: BC Iron History
BC IRON HISTORY For personal use only NJV formed with Acquires 25% NJV interest FMG (50:50). from Fortescue and First ore on ship Infrastructure increases capacity to 6Mtpa at Iron Valley Extensive cost agreement signed cutting in response to iron ore price Construction NJV achieves decline commence
Slide 6: BC Iron Strategy
BC IRON STRATEGY For personal use only Continue to focus on Low risk cash flow. operational performance. Support MIN’s efforts to NJV Iron Valley Sustainably reduce costs expand production to 16Mtpa and improve operations. and enhance product quality BC Iron Vision To be a successful mining company
Slide 7: Key Assets
KEY ASSETS For personal use only Buckland Nullagine Joint Advanced iron ore Venture (“NJV”) development project Iron ore operation Feasibility completed 75:25 joint venture Key approvals in place between BCI and FMG 134Mt of Ore Reserves1 BCI the operator Proposed 8Mtpa operation F
Slide 8: Nullagine Joint Venture
NULLAGINE JOINT VENTURE For personal use only 1H FY15 impacted by occurrence of problematic clays in discrete parts of some mesas Ongoing cost reduction programme to improve profitability FY15 Full-year NJV sales of 5.26M wmt at C1 cash costs of A$54/wmt (FOB) C1 cash costs of A$47/wmt (FOB)
Slide 9: Cost Savings – NJV and Corporate
COST SAVINGS – NJV AND CORPORATE For personal use only NJV – major reduction in controllable costs, achieved by: Focusing on operational performance, productivity and strip ratio Working with Fortescue to protect NJV from further fall in iron ore price Three-month trial of revised rail & port
Slide 10: Iron Valley
IRON VALLEY For personal use only Exports commenced in Oct-14 Renegotiated agreement with MIN in Dec-14 FY15 Supports ongoing operation in lower price environment Facilitates evaluation of beneficiation and BOTS, which will benefit both parties 2.83M dmt shipped, generating BC Iron revenue
Slide 11: Buckland
BUCKLAND For personal use only Commenced review of feasibility study and discussions with key stakeholders FY15 Commenced project optimisation work to accommodate decline in iron ore price outlook Approvals for Cape Preston East progressed Project optimisation work progressed Completed co-
Slide 12: Exploration Projects
EXPLORATION PROJECTS For personal use only Portfolio of exploration projects Prospective for a range of commodities – base metals, gold, salt and iron ore BC Iron continuing to advance exploration – appropriate budget Focus on Mt Fraser, Peak Hill (Mt Padbury) and Black Hill 12
Slide 13: BC Iron Strategy
BC IRON STRATEGY For personal use only Continue to focus on Low risk cash flow. operational performance. Support MIN’s efforts to NJV Iron Valley Sustainably reduce costs expand production to 16Mtpa and improve operations. and enhance product quality BC Iron Vision To be a successful mining company
Slide 14: Appendices
For personal use only APPENDICES 14
Slide 15: Corporate Overview
CORPORATE OVERVIEW For personal use only Capital Structure Share Price vs Iron Ore Price 6.00 250 Ordinary Shares 196.2m Iron Ore Price (US$/t) 5.00 Share Price (at 23-Nov-15) $0.25 200 Share Price (A$) 4.00 Market Capitalisation $49.0m 150 Cash (at 30-Sep-15) $71.8m 3.00 100 Debt (at 30-Sep-15) $7.
Slide 16: 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 19.5 56.3 64.2 3.3 2.2 0.01 12.3 Buckland 134.3 57.6 62.6 6.5 2.4 0.15 8.0 Iron Valley 129.9 58.9 63.4 4.8 3.0 0.17 7.1 Total 283.7 58.1 63.1 5.
Slide 17: 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 manager of the NJV FMG provides rail & port and marketing services Capacity to export
Slide 18: NJV – Operations
NJV – OPERATIONS For personal use only Contract mining utilising BCI-owned Vermeer surface miners Currently mining at Outcamp and Warrigal; assessing Mulla Mulla Mining Mine life of ~4 years, with average remaining LOM strip ratio of 1.6:1 Processing Dry crushing & screening process Two cr
Slide 19: Iron Valley – Overview
IRON VALLEY – OVERVIEW For personal use only Operating mine that is generating cash flows via iron ore sale agreement with MIN. Iron ore sale agreement with Mineral Resources Limited (MIN) BC Iron retains tenement ownership and statutory obligations (incl. government royalties) MIN operates th
Slide 20: Buckland – Overview
BUCKLAND – OVERVIEW For personal use only Development project with an 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 (“FS”) completed by IOH in Jun
Slide 21: NJV Reserves & Resources
NJV RESERVES & RESOURCES For personal use only CID Mineral Resource at 30 June 2015 (BC Iron 75%, FMG 25%) Classification Mt Fe% CaFe% Al2O3% SiO2% P% S% LOI Measured 10.2 52.7 60.1 4.5 5.1 0.017 0.012 12.4 Indicated 34.1 54.2 62.0 3.2 4.3 0.017 0.011 12.5 Inferred 47.6 51.9 58.6 5.5 6.7 0.023 0.019
Slide 22: Iron Valley Reserves & Resources
IRON VALLEY RESERVES & RESOURCES For personal use only Mineral Resource at 30 June 2015 (100% BC Iron, subject to iron ore sale agreement with MIN) Classification Cut-off (% Fe) Tonnes (Mt) Fe (%) CaFe (%) SiO2 (%) Al203 (%) P (%) LOI (%) Measured 50 34.9 59.4 63.8 4.7 2.8 0.17 6.9 Indicated 50 172.
Slide 23: Buckland Reserves & Resources
BUCKLAND RESERVES & RESOURCES For personal use only Mineral Resource at 30 June 2015 (100% BC Iron) Deposit Classification Cut-off (%Fe) Tonnes (Mt) Fe (%) CaFe (%) SiO2 (%) Al2O3 (%) P (%) LOI (%) Bungaroo Measured 50 30.9 57.4 62.1 6.7 3.0 0.15 7.6 South Indicated 50 214.9 56.6 61.6 7.8 2.4 0.15 8
Slide 24: 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 25: 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 Web : www.bciron.com.au