Bci Minerals Ltd · ASX:BCI
Bci Minerals — Roskill International Salt Conference 2018
21 slides from Bci Minerals's conference presentation, Apr 9, 2018
Slide 1: Mardie Salt: An Emerging Australian Project
For personal use only Mardie Salt An Emerging Australian Project Roskill International Salt Conference – London UK Alwyn Vorster – Managing Director April 2018 www.bciminerals.com.au
Slide 2: Contents
For personal use only CONTENTS 1. Australian Salt Landscape 2. Market Dynamics 3. Mardie Project 4. Ownership Structures
Slide 3: About BCI Minerals
About BCI Minerals For personal use only ▪ ASX-listed resources company based in Perth, Australia (ASX: BCI) ▪ Market capitalisation of ~A$70M ▪ A$19M cash, zero debt and royalty earnings from the Iron Valley mine (~A$18M EBITDA in FY17) ▪ BCI aims to become a mining company with multiple earnings s
Slide 4: Australian Salt Projects
Australian Salt Projects For personal use only ▪ Ideal climatic conditions for solar evaporation salt production Mardie Dampier,4.2Mtpa ▪ Currently ~16Mtpa production (Dampier Salt) capacity – 95% solar salt ~3.5Mtpa (BCI) Port Hedland, 3.2Mtpa ▪ Key production region is the (Dampier Salt) Pilbara/M
Slide 5: Australian Production and Exports
Australian Production and Exports Production and Exports (Mtpa) For personal use only ▪ Production has trended down in recent 16 years from ~14Mtpa to ~10Mtpa due to: 14 12 – Lower quality salt from other countries 10 aggressively priced into Asia 8 – Above average weather impacted on Pilbara 6 oper
Slide 6: Australian Export Prices
Australian Export Prices Positive price outlook for Asian salt market For personal use only Salt - average trade values with Australia, (US$/t CIF) Challenging market during last 7-years 90 80 ▪ Prices have been on a downward trend 70 US$50/t ▪ Volatile shipping freight rates had a 60 material impac
Slide 7: Global Salt Demand Outlook
Global Salt Demand Outlook Roskill1 forecast strong Asian salt demand growth For personal use only 2026 Forecast 2016 Demand Consumption Chloralkali 123Mt +50Mt 73Mt Asia Soda ash 48Mt +8Mt Asia 160Mt 40Mt 223Mt +63Mt Food World 21Mt +1.5Mt 19.5Mt 339Mt De-icing 4Mt +1Mt 3Mt ROW ROW 179Mt 201Mt Othe
Slide 8: Asian Salt Demand & Supply Outlook
Asian Salt Demand & Supply Outlook Supply gap likely to develop over next decade For personal use only 63Mt/a 26Mt/a 200 Mt Asia New 21Mt/a Demand 2026 16Mt/a GAP 2026 utilization SUPPLY New Salt Capacity projects by 2026 150 Mt Supply 160Mt/a Actual Demand 2016 100 Mt ~26 Mt/a supply gap possible b
Slide 9: Mardie - Salt & Potash Project
For personal use only Mardie - Salt & Potash Project
Slide 10: Mardie Project Overview
Mardie Project Overview For personal use only ▪ Project 100% owned by BCI ▪ ~300km2 tenements located on Pilbara coast in ideal proximity to Asian growth markets ▪ Site conditions highly favourable for solar salt production ‒ Long dry season with <300 mm rainfall p.a. ‒ High net evaporation rates of
Slide 11: Design and Site Layout
Design and Site Layout For personal use only ▪ Eight concentrator ponds – continuous flow methodology ▪ 12 primary NaCl salt crystallisers ▪ Up to 24 secondary K+NaCl salt crystallisers ▪ Pond design avoids most of sensitive coastal vegetation and allows natural two-way water flow ▪ ~3.5Mtpa high pu
Slide 12: Simplified Process Flow – 3.5Mtpa NaCl
Simplified Process Flow – 3.5Mtpa NaCl Primary Secondary Ocean Concentration Ponds For personal use only Crystallisers Crystallisers Waste Sea Water Concentrate Bitterns Raw NaCl Raw K + NaCl Salts Recovered Raw NaCl Waste Waste NaCl Purification SOP Plant Plant Recovered Recovered NaCl SOP 3.5Mtpa
Slide 13: Export Logistics
Export Logistics For personal use only Salt ▪ 50km sealed road linking Mardie site with BCI’s proposed CITIC’s Cape Preston Port Shiploader Cape Preston East Port Iron Ore Site Infrastructure Shiploader 1.4km Jetty ▪ Heavy haul road trains (~220t) used for efficient and low Covered Salt cost transpo
Slide 14: Mardie Minerals – Marketing Approach
Mardie Minerals – Marketing Approach For personal use only PRODUCT PLACEMENT ▪ NaCl: >99.5% (dry), Ca <0.06%, Mg <0.03% ▪ NaCl: 70% Chloralkali; 15% Food; 15% Soda ash [Asia focussed] ▪ SOP: >50% K20, <1% Cl ▪ SOP: Agricultural [Australia, Asia] PRICE PROMOTION ▪ NaCl: LT price >US$35/t CIF Asia ▪ T
Slide 15: Attractive Scoping Study Economics
Attractive Scoping Study1 Economics For personal use only Key Metrics (Salt only – SOP excluded) Projected Project Cashflows (US$M) 150 NaCl Production 3.5Mtpa Operating Life 20 years 100 Capex US$190M 50 Opex (FOB) US$14/t - EBITDA US$70M p.a. (50) Pre-tax NPV10 US$285M (100) Pre-tax IRR 27% Paybac
Slide 16: Project Timeline
Project Timeline For personal use only 2018 2019 2020 2021 2022 2023 Pre-Feasibility Study Feasibility Study Primary Enviro, Heritage & Operational Approvals Final Investment Decision FEED, Construction Commissioning First Production Stockpile Dewatering First Export 16
Slide 17: Mardie PFS: BCI's Supporting Teams
Mardie PFS: BCI’s Supporting Teams Engineering Environment For personal use only Flora and fauna studies (Marine), Salt purification plant design ocean studies SOP production circuit design Fauna studies (Turtles) K F Wellisch & Evaporation consultant Flora and fauna studies (Terrestrial) Associates
Slide 18: Ownership Structures
Ownership Structures Potential Future Structures For personal use only BCI Minerals Ltd (ASX Listed) Mardie Minerals 100% Joint Venture 1 Mardie Minerals 25-50% 0-25% 50-75% Pty Ltd OR BCI Financial Industry Investor Player 2 Mardie Minerals Mardie Minerals Board IPO Brian O’Donnell Alwyn Vorster Ch
Slide 19: Mardie Salt – Attractive Development Project
Mardie Salt – Attractive Development Project For personal use only ✓ Project in stable investment country close to Asian growth markets ✓ Ideal project location and site conditions for a solar evaporation project ✓ Potential1 for >US$250M NPV and >US$70M p.a. EBITDA from Salt ✓ Upside value potentia
Slide 20: Important Notices
Important Notices This presentation has been prepared by BCI Minerals Limited ABN 21 120 646 924 (“BCI”). For personal use only This document contains background information about BCI current at the date of this presentation. The presentation is in summary form, has not been independently verified a
Slide 21: Mardie Salt Project - Key Facts
For personal use only Mardie Salt Project - Key Facts LONG LIFE ASSET; STABLE COUNTRY CAPEX: ~US$190M HIGH PURITY CLEAR 3.5 MTPA FOR CLOSE TO ASIAN OPEX: ~US$14/t SALT & POTASH APPROVALS >50 YEARS GROWTH MARKETS NPV10: ~US$285M PATHWAY 21
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