Bci Minerals Ltd · ASX:BCI
Bci Minerals — Investor Presentation (November 2018)
29 slides from Bci Minerals's investor presentation, Nov 22, 2018
Slide 1: Driving the Mardie Project Rapidly Towards Development
For personal use only Driving the Mardie Project Rapidly Towards Development Corporate Presentation 22 November 2018 www.bciminerals.com.au
Slide 2: BCI's Investment Opportunity
BCI’s Investment Opportunity Mardie is a Tier 1 long life project that presents an exciting For personal use only opportunity to supply the Salt and Potash growth markets in Asia Salt as chemical feedstock Asian MARDIE Demand SALT & POTASH PROJECT Sulphate of Potash as premium fertiliser BCI believe
Slide 3: The Salt Market
For personal use only The Salt Market
Slide 4: What is Salt?
What is Salt? ▪ For personal use only Salt (NaCl) is 40% sodium (Na) and 60% chlorine (Cl) Solar Evaporation ▪ Essential for many aspects of modern living ▪ >300Mtpa of Salt produced and consumed globally Global Salt Production India, Other Asia, 32Mt 19Mt China, 90Mt Africa, 6Mt Australia, 10Mt Eur
Slide 5: Salt Uses
Salt Uses Salt is an essential feedstock for thousands of products For personal use only Mardie Target Markets Paper Construction Glass ▪ Industrial/chemical/pharmaceutical: including glass, PVC, paper, textiles, medicines, oils etc. Aluminium & Metals Ceramics ▪ Water treatment: increases purity an
Slide 6: Positive Asian Salt Market Dynamics
Positive Asian Salt Market Dynamics Supply deficit of ~25Mtpa forecast in next decade (~6 Mardie sized projects) For personal use only SALT DEMAND DRIVERS 200 55Mtpa 25Mtpa Increasing Asian Increasing demand for consumer & New middle class Asian 15Mtpa industrial products Mtpa Demand by 2027 15Mtpa
Slide 7: The Potash Market
For personal use only The Potash Market
Slide 8: What is Sulphate of Potash (SOP)?
What is Sulphate of Potash (SOP)? ▪ Global agricultural industry ▪ Potassium improves crop yield & For personal use only depends on three primary quality, and increases resistance to fertilisers – Nitrogen (N) diseases Phosphate (P), and Potassium (K) ▪ Two main types of potassium fertilisers: – Mur
Slide 9: Positive SOP Market Dynamics
Positive SOP Market Dynamics More food needed from less land………… increases need for premium quality fertilisers For personal use only SOP DEMAND DRIVERS Increasing Asian Needing more and middle class better quality food New SOP Demand ✓ ✓ Likely Potential New SOP SOP Supply Projects Reducing Crop yi
Slide 10: Mardie Salt & Potash Project
For personal use only Mardie Salt & Potash Project
Slide 11: Australian Salt & SOP Landscape
Australian Salt & SOP Landscape For personal use only ▪ Five large existing evaporative Salt operations in the Pilbara region of WA – Total production capacity of 14Mtpa – Up to 5 decades old 1,000km ▪ No existing SOP production in Australia with all 800km planned projects based on inland salt lake
Slide 12: Mardie – Ideal Location
Mardie – Ideal Location Large landholding in hottest part of Australia For personal use only ▪ Vast area of impermeable clay soils ▪ Suitable marine area for export jetty ▪ High temperature and high winds (= high evaporation) ▪ Low average rainfall Mardie’s large mudflats Annual Evaporation Annual R
Slide 13: Mardie Project Layout
Mardie Project Layout ▪ For personal use only Mardie Project footprint designed 3-5km Salt Plant & Port inland to limit disturbance of coastal Infrastructure ecosystem Crystallisers ▪ 6 pumps on floating pontoons with Export Jetty 10,000l/s capacity P8 P7 SOP Plant ▪ 8 large ponds and 36 crystallise
Slide 14: Simplified Process Flow
Simplified Process Flow Applying latest processing technology to produce high purity products For personal use only Recycled NaCl Primary Secondary Ocean Concentration Ponds Crystallisers Crystallisers Waste Seawater Concentrated Potassium Brine Rich Bitterns (or further processing to produce Magnes
Slide 15: Attractive Pre-Feasibility Economics
Attractive Pre-Feasibility Economics1 For personal use only ▪ 3.5Mtpa high-purity industrial salt (NaCl) Production ▪ 75ktpa sulphate of potash (SOP) Capex ▪ A$335M, comprising A$248M for salt and A$87M for SOP ▪ Salt: A$20/t FOB (all-in cash cost basis) Opex ▪ SOP: A$250/t FOB (all-in cash cost bas
Slide 16: Mardie's Competitive Positioning
Mardie’s Competitive Positioning For personal use only Seaborne High Purity Salt Cost Curve Simplified SOP Cost Curve Marginal Cost/Price 40 Marginal Cost/Price differential Mardie 400 Freight Mannheim Mardie US$/t CIF Asia US$/t CIF Asia cost 25 Mexico 200 China (Mannheim) Aus India China Aus Aus A
Slide 17: Project Improvement Initiatives
Project Improvement Initiatives During 2019, fast track development of an improved business case For personal use only Upside Bromine & Potential Epsomite Fast-track Mardie production Increased FID Target: Port Salt & SOP NPV >A$450M production EBITDA >A$130M/a PFS: NPV A$335M EBITDA A$100M/a 2018 2
Slide 18: Early Works in 2019
Early Works in 2019 Construct critical path elements in 2019 to accelerate development For personal use only ▪ Construct important support infrastructure Site Infrastructure Access Roads – Access roads; village; power & utilities Crystallisers ▪ Construct and operate a large trial pond Export Jetty
Slide 19: Approvals & Tenure Well Defined
Approvals & Tenure Well Defined For personal use only ▪ Environmental Scoping Document recently endorsed by EPA Board – formalises Environmental approvals process and timeline ▪ Significant studies completed and no material issues identified to date ▪ Environmental approvals on track for late 2019 H
Slide 20: Mardie Timeline
Mardie Timeline Final investment decision targeted by end-2019, allowing first salt sales in 2023 For personal use only 2018 2019 2020 Activities Q4 Q1 Q2 Q3 Q4 Q1 Q2 DFS Scoping & Contracting Pond & Crystalliser Design Process Plant Design DFS Report Environmental Surveys & Approvals Mardie Port De
Slide 21: BCI is well funded to FID in late 2019
BCI is well funded to FID in late 2019 For personal use only 2019 2019 FID 2020 Designs / Approvals / Early Works – Supporting Project Development Offtake / Funding Infrastructure & Trial Pond ~A$400M ~A$15M ~A$20M Iron Valley Earnings Equity Cash (30/9/18) Kumina Sale Proceeds (A$6-15M pa) A$11M
Slide 22: Mardie – Unique Project Opportunity
Mardie – Unique Project Opportunity For personal use only 1. Strong market outlook for salt & SOP 2. Tier 1 project – location, life, scale & costs 3. BCI well funded and supported to accelerate Mardie’s development during 2019 Mardie offers significant value potential over many decades 22
Slide 23: 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 24: Driving Mardie Rapidly Towards Development
For personal use only Driving Mardie Rapidly Towards Development 24
Slide 25: Appendix
For personal use only Appendix
Slide 26: Corporate Information
Corporate Information For personal use only Capital Structure Shareholding and Trading Ordinary Shares 397.6M Wroxby Pty Ltd 27.6% Share Price (21-Nov-18) $0.135 Top 20 Shareholders ~49% Market Capitalisation $53.7M Number of Shareholders ~7,100 Cash (30-Sep-18) $11.1M Ave Daily Volume (Last 6 Month
Slide 27: Project Locations
For personal use only Project Locations 27
Slide 28: Iron Valley Mine – Royalty Earnings
Iron Valley Mine – Royalty Earnings ▪ For personal use only Quarterly earnings for BCI via royalty agreement with Mineral Resources Ltd (MIN) – Underlying BCI EBITDA of ~A$8M in FY18 and ~A$16M in FY17 ▪ 6-8Mtpa iron ore operation; 50% lump production; potential mine life of ~15 years ▪ Average ore
Slide 29: For personal use only
For personal use only T +61 8 6311 3400 Level 1, 15 GPO Box 2811 E info@bciminerals.com.au Rheola St West West Perth WA 6872 W www.bciminerals.com.au Perth WA 6005