Black Iron Inc. · TSX:BKI
Black Iron — Investor Presentation (November 2011)
20 slides from Black Iron's investor presentation, November 2011
Slide 1: A Compelling Iron Ore Investment Opportunity
A Compelling Iron Ore Investment Opportunity Corporate Presentation November 2011 TSX: BKI
Slide 2: Disclaimer: Forward Looking Statement
Disclaimer Forward Looking Statement TSX: BKI This Presentation contains „„forward-looking information‟‟ which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its subsidiaries (collectively, the „„Company‟‟) and its mine
Slide 3: Solid Fundamentals for Success
Solid Fundamentals for Success A High-Quality Iron Ore Development Opportunity TSX: BKI Good access to skilled labour, power, rail & ports Exceptional • 35km from city of Kryviy Rih (pop. 750k); paved road to site Infrastructure • 2 km from state-owned rail and power lines with surplus capacity & fi
Slide 4: Sound Capital Structure
Sound Capital Structure Attractive Valuation with substantial upside TSX: BKI Financing Details Capital Structure • Completed an Initial Public Offering (IPO) on Shares Outstanding March 29, 2011 139.4 million (Basic) – $38.5 million @ $1.40 per share Warrants Outstanding(1) 1.7 million • Previously
Slide 5: Project Backed by Forbes & Manhattan
Project Backed by Forbes & Manhattan Success with Consolidated Thompson’s Bloom Lake Iron Mine TSX: BKI • World class 8Mtpa iron ore concentrate Forbes & Manhattan Involvement mine in Quebec • Advanced from exploration stage through development to construction Recently acquired − 8 mtpa capacity (66
Slide 6: A Track Record of Iron Ore Success
A Track Record of Iron Ore Success TSX: BKI • Management & Board have a history of creating value for shareholders of iron ore projects – Consolidated Thompson Iron Mines, Rio Tinto‟s Iron Ore Company of Canada and Ferrexpo • Respected Ukraine professionals and former Government Advisors Key Managem
Slide 7: Deposits In Mining Friendly Region
Deposits In Mining Friendly Region Adjacent to existing Iron Ore Producers TSX: BKI ArcelorMittal’s Kryviy Rih Iron Ore Complex • Two mining and exploration permits Black Iron’s covering 5.92 km2 Shymanivske Project − Mining permit at Shymanivske, which M&I: 345Mt @ 31.83% has been extensively explo
Slide 8: Large Ore Deposit with Growth Potential
Large Ore Deposit with Growth Potential TSX: BKI • Banded iron formation consisting primarily of magnetite with some hematite − Iron band thickness ranges from 40-80 m − Only 9.7-21.2 m of overburden − Very clean orebody low in phosphorus, manganese and aluminum • The resource is defined by ~37,000
Slide 9: Potential Resource Extension at Shymanivske
Potential Resource Extension at Shymanivske Ground Gravity Shows Iron Ore Mineralization at North End TSX: BKI Potential resource • Ground gravity and magnetic surveys upside to be drilled show potential extension of iron ore mineralization at North end of property as circled in red Property • This
Slide 10: Excellent Infrastructure
Excellent Infrastructure Key to a Successful Iron Ore Project TSX: BKI • Paved roads to site, located 35km away from the major city of Krivoy Rog which has a skilled work force • Surplus electricity readily accessible from high voltage power lines that run beside property • ~2 km from main state-own
Slide 11: Strategic Global Location
Strategic Global Location Close Proximity to Target Markets with Abundant Port and Rail Access TSX: BKI • River barge & rail access to Western Europe and port access via Black Sea to global seaborne iron ore markets − Target markets include Asia, Western Europe, Turkey, and Middle East • Several dry
Slide 12: Ukraine: A Mining Friendly Country
Ukraine: A Mining Friendly Country Strong Local and National Support TSX: BKI • Socially stable democratic republic • Recently announced desire to sign “Association Agreement” as first step to joining European Union • Strong economic growth − GDP growth of 4.2% in 2010; expected to increase to 4.5%
Slide 13: Globally Significant Iron Ore District
Globally Significant Iron Ore District Ukraine: 6th largest iron ore producer & 4th largest reserve base TSX: BKI • Black Iron‟s projects are located in the heart of 2010E Iron Ore Production Ukraine‟s iron ore belt 1000 900 – 35km from city of 750,000 people 800 Only 3% of world production • Iron o
Slide 14: Shymanivske PEA Highlights
Shymanivske PEA Highlights High Value, Low Net Cost Iron Ore Development Project TSX: BKI Production Case: Pellet Plant Feed Pellet Annual Production: 7.3 Mt 7.6 Mt Iron Content: 67.0% 65.0% Estimated Capital Investment: US$896.0 million US$1,571.3 million Estimated Operating Expenses: (average init
Slide 15: Shymanivske Relative to Other Iron Ore Projects
Vale (Shimandou 1) African Minerals (phase2) Xstrata (Askaf) African Minerals (DSO) 84 87 90 92 ArcelorMittal (Western… Fortescue (Expansion) 109 109 Rio Tinto (IOC) Black Iron Alderon 122 123 124 Sundance Kumba Ferrexpo (Yeristovo) Source: Company data; Renaissance Capital estimates IRC (Kuranakh)
Slide 16: Black Iron Compares Favourably
Black Iron Compares Favourably Black Iron to Other Iron Ore Developers TSX: BKI Pre-Tax IRR (%) Pre-Tax NPV8 (US$ billions) 42.1 3.0 3.1 40.2 2.4 32.0 24.6 1.5 Gindalbie* Northland Alderon Black Iron Gindalbie Northland Alderon Black Iron (PPF) (PPF) * Gindalbie NPV is at 9% after-tax OPEX (US$/t) $
Slide 17: Public Comparable Companies
Public Comparable Companies Iron Ore Exploration/Development TSX: BKI Market Data Fe Contained EV / Fe as at Reserve & Resource Reserve & Resource 8-Nov-11 (mm t) (C$/t) Market Enterprise Price Cap Value Total Total Company Location (US$) (US$ mm) (US$ mm) Total Grade R&R Developers & Explorers Afri
Slide 18: Black Iron Continues to Deliver
Black Iron Continues to Deliver Shymanivske Project Development Timeline TSX: BKI 2011 2012 Future H1 H2 H1 H2 Drill metallurgical holes Scoping Study/PEA Exploration & Definition Drilling Definitive Feasibility Study Environmental Studies Permitting Detailed Engineering Construction Production 18
Slide 19: Solid Fundamentals for Success
Solid Fundamentals for Success A High-Quality Iron Ore Development Opportunity TSX: BKI Good access to skilled labour, power, rail & ports Exceptional • 35km from city of Kryviy Rih (pop. 750k); paved road to site Infrastructure • 2 km from state-owned rail and power lines with surplus capacity & fi
Slide 20: Contact Information
CONTACT INFORMATION 65 Queen Street West Suite 805, P.O. Box 71 Toronto, Ontario, Canada M5H 2M5 www.blackiron.com Investor Relations Investor Cubed Inc. Telephone: +1 (647) 258-3311 Toll-Free: +1 (888) 258-3323 Fax: +1 (416) 363-7977 TSX: BKI info@blackiron.com