Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — FY2013 Earnings Presentation
30 slides from Bci Minerals's earnings presentation, Aug 28, 2013
Slide 1: ASX cover letter: 2013 annual results presentation
28 August 2013 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’s 2013 annual results which will be given at investor briefings in Sydney and Melbourne on 28 to 30 August 2
Slide 2: Full Year Results – 30 June 2013
For personal use only Full Year Results – 30 June 2013 Morgan Ball – Managing Director 1 28 Aug ‘13
Slide 3: Attractive Investment Proposition
ATTRACTIVE INVESTMENT PROPOSITION For personal use only Scale & liquidity: ASX 300 member, liquidity significantly enhanced post Dec 12 TSR focus: Outperformed peers on TSR basis during FY13 Capital Management: Robust balance sheet, conservative gearing, sustainable franked dividends At targ
Slide 4: FY2013 – Year in Review
FY2013 – YEAR IN REVIEW For personal use only Key achievements of BC Iron and the NJV in FY2013: Shipped a record 5.0Mt (BC Iron share - 3.15Mt) a 41% increase Achieved EBITDA of $115.3M up 63% Cash balance of $138.5M after additional debt payment of US$30M ahead of schedule Declared a fully
Slide 5: NJV Operational Performance
NJV OPERATIONAL PERFORMANCE For personal use only Ore Mined (wmt) 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 4
Slide 6: FY2013 – Results Commentary
FY2013 – RESULTS COMMENTARY For personal use only Record revenue of $325.3M up 59% EBITDA of $115.3M up 63% Underlying NPAT of $71.4M up 41% (Statutory NPAT of $48.8M) Fully franked final dividend of 30.0 cents per share FY2013 total dividend of 35.0 cents per share at a payout ratio of 60
Slide 7: FY2013 – Company Performance
FY2013 – COMPANY PERFORMANCE For personal use only Full Year ended 30 June 2013 2013 2012 Variance Variance NJV (100%) Tonnes Shipped (millions – wmt) 5.00 3.55 1.45 41% Tonnes Shipped - BC Iron share (millions – wmt) 3.15 1.77 1.38 78% Average CFR price realised ($US/dmt) $112 $124 ($12) (10%) C1 O
Slide 8: FY2012 to FY2013 – EBITDA Analysis
FY2012 to FY2013 – EBITDA ANALYSIS For personal use only 7
Slide 9: FY2013 – Earnings Analysis
FY2013 – EARNINGS ANALYSIS For personal use only 8
Slide 10: FY2013 – NPAT Analysis
FY2013 – NPAT ANALYSIS For personal use only 9
Slide 11: FY2013 – Financial Analysis
FY2013 – FINANCIAL ANALYSIS For personal use only Calculated on Underlying Net Profit Calculated on Underlying Net Profit FY2013 ROE only reflects 6 months Board focus on Total Shareholder of earnings post the Fortescue Return transaction Dividend per Share of 35.0 cents in 10 relation to
Slide 12: FY2014 – Guidance
FY2014 - GUIDANCE For personal use only Platts CFR62 price of US$139.50/dmt on 26 Aug 13 LOM guidance of A$46-50/wmt FOB FY13 JV production – achieved guidance of 5Mt (BC iron equity share 3.15Mt) FY14 JV production guidance ~6Mt (BC Iron equity share ~4.5Mt) Underlying FOB C1 cash operating c
Slide 13: Corporate Overview
CORPORATE OVERVIEW For personal use only Capital Structure Share Price and Volume Ordinary Shares 123.5m $4.50 5 Share Price (at 23-Aug-13) $3.85 $4.00 4 Market Capitalisation $475m Share Price Volume (m) $3.50 3 Cash (at 30-Jun-13) $138m $3.00 2 Debt (at 30-Jun-13) $106m Enterprise Value $443m $2.5
Slide 14: Peer Comparison
PEER COMPARISON For personal use only Total Shareholder Return – 1 Jul 12 to Current Why has BC Iron outperformed its peers? 75% 59% Quality project with low capital intensity 50% 43% 25% Low risk - Continued strong operational performance (25%) (8%) (13%) (50%) Repeated delivery against gui
Slide 15: 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 16: Mining – Overview
MINING - OVERVIEW For personal use only A fully contracted operation - low capital intensity. Contract mining by WATPAC, utilising Wirtgen and Vermeer surface miners Mine plan comprises four major deposits Currently mining Outcamp and Warrigal Bonnie East commences in FY15 and Coongan in FY1
Slide 17: 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 16 impact, no wet ore.
Slide 18: Mining – Surface Miners
MINING – SURFACE MINERS For personal use only Mining panels with Mined material in stocks Surface Miners Wirtgen & Vermeer Surface Miners Rotating drum cutters – no drill & blast Environmental benefits, reduced run off Provides primary crushing 17 Surface mining results in reduced equipment
Slide 19: Processing and Logistics
PROCESSING AND LOGISTICS For personal use only Crushing / Screening (WATPAC) Road Haulage (Toll & Roadtrim) Rail and Port Services (FMG/TPI) Main plant upgrade now Ore trucked via private sealed World class rail and port complete road to dedicated stockyard at Access to Capesize vessels up C
Slide 20: Production Rates
PRODUCTION RATES For personal use only Production Profile & BBSO Exploration Target 22.5 20.0 million tonnes 17.5 15.0 12.5 10.0 7.5 5.0 “Project Inventory” 2.5 BBSO - DSO 0.0 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Ore (dmt) Waste (dmt) Forecast productio
Slide 21: Reserve Replacement & Project Inventory
RESERVE REPLACEMENT & PROJECT INVENTORY For personal use only History of Reserve replacement Project Inventory assessing potential for further increases in Reserves and mine life Bonnie East added to Reserves in FY12 Results to date are encouraging Grade control drilling delivered increase
Slide 22: 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 23: Bonnie Fines Marketing & Pricing
BONNIE FINES MARKETING & PRICING For personal use only BCI CFR Received Price vs. Platts CFR62 Price ~2.6Mtpa of 6Mtpa NJV production is committed $200 Gap between BCI received to Henghou over next 6 years at a discount to price & Platts price has $180 Platts CFR62 price (after Fe adjustment) redu
Slide 24: 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 Three Priorities Brazilian Exploration Projects Priority 1 – extend life of NJV (Project Inventory) 2 MOUs ente
Slide 25: Appendices
APPENDICES For personal use only APPENDICES 24
Slide 26: BC Iron Limited – Board
BC IRON LIMITED – BOARD For personal use only Board of Directors Tony Kiernan, Non-exec Chairman – formerly a solicitor Terry Ransted, Non-exec Director – a geologist with with extensive experience in management and operation Alkane Resources managing exploration and of Australian public companies.
Slide 27: Ore Reserves & Mineral Resources – Jun '13
ORE RESERVES & MINERAL RESOURCES - 30 JUN ‘13 For personal use only Ore Reserves NJV (BC Iron 75%, FMG 25%) Classification Mt Fe% CaFe% Al2O3% SiO2% P% S% LOI Proved 18.9 57.3 65.0 1.8 3.0 0.015 0.012 11.8 Probable 18.3 56.9 64.8 2.0 3.0 0.014 0.011 12.2 Total 37.2 57.1 64.9 1.9 3.0 0.015 0.012 12.0
Slide 28: Competent Persons Statements
COMPETENT PERSONS STATEMENTS For personal use only JORC Competent Persons Statement The information that relates to the Mineral Resource Estimate at Outcamp, Coongan, and Warrigal has been compiled by Mr Mike Young who is a Member of the Australian Institute of Geoscientists a former employee (and c
Slide 29: 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 30: 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 www.bciron.com.au