Bci Minerals Ltd · ASX:BCI
Bci Minerals — Investor Presentation (August 2020)
24 slides from Bci Minerals's investor presentation, Aug 6, 2020
Slide 1: Developing the Multi-Generational Mardie Salt and SOP Project
For personal use only Developing the Multi-Generational Mardie Salt and SOP Project Corporate Presentation 6 August 2020 ASX:BCI www.bciminerals.com.au
Slide 2: Important Notices
Important Notices Not an Offer of Securities This document has been prepared by BCI Minerals Limited ABN 21 120 646 924 (“BCI”) and is provided for information purposes only. For personal use only This document does not constitute or contain an offer, invitation, solicitation or recommendation with
Slide 3: The BCI Opportunity
The BCI Opportunity Developing a Tier 1 salt and SOP1 project supported by iron ore royalties For personal use only MARDIE SALT & IRON VALLEY POTASH PROJECT ROYALTIES ▪ DFS confirms Tier 1 asset ▪ ~$80M market cap2 ▪ 89Mt Ore Reserves4 ▪ Pre-tax NPV7 ~$1.2Bn ▪ ~$42M cash and zero debt3 ▪ 6-8Mtpa pro
Slide 4: Why Salt and SOP?
Why Salt and SOP? Strong growth in Mardie’s target markets For personal use only SALT ▪ >10,000 products derived from salt (PVC, ASIAN alumina, glass, paper, water purification) DEMAND Salt as chemical ▪ Asian market size of 160Mtpa salt with an feedstock annual value of US$6.5Bn ▪ 55Mtpa growth1 (3
Slide 5: Mardie Project DFS Summary
Mardie Project DFS1 Summary Tier 1 scale, cost and operating life For personal use only QUALITY STRONG LARGE SCALE SUSTAINABLE LOW COST PRODUCTS CASHFLOWS ▪ 4.4Mtpa will be the ▪ 100-year life ▪ High purity salt ▪ Lowest quartile ▪ ~$20Bn cashflow3 largest Australian potential2 (>99.5% NaCl) salt op
Slide 6: Large Scale Salt Project
Large Scale Salt Project Top tier global solar salt project1 Project footprint vs Sydney/Perth For personal use only Salt Capacity (Mtpa) 0 1 2 3 4 5 6 7 8 Parramatta Guerrero Negro [Mexico] Manly Hajipir [India] Sydney Mardie Salt/SOP Project [WA] 4.4Mtpa Salt Dampier [WA] Sydney Heads Hub-Pak [Pak
Slide 7: Mardie in Perspective
Mardie in Perspective Annual revenues similar to well-known operations, however Mardie has much higher life of mine (LOM) revenues For personal use only Annual Revenue (US$M)1 0 100 200 300 400 LOM Revenue (US$Bn)2 0 5 10 15 20 Mardie Salt & Potash (BCI) Mardie Salt & Potash (BCI) Gold: Thunderbox (
Slide 8: Australian Salt & SOP Landscape
Australian Salt & SOP Landscape Mardie: ideal location to produce high-purity salt and SOP For personal use only Western Australia – Salt and SOP Projects ▪ Pilbara has ideal climate to produce high purity salt – High temperature, high wind, low rainfall, low humidity – Proven salt production region
Slide 9: Mardie Project Overview
Mardie Project Overview 100% owned salt and SOP development opportunity For personal use only Project Layout SITE CONDITIONS ▪ 100km2 clay soils – ideal to retain water ▪ High net evaporation rates (~10mm/day) PRODUCTION ▪ 9 evaporation ponds ▪ 34 salt and 18 SOP crystallisers ▪ Salt wash plant prod
Slide 10: Mardie – Plants and Port Infrastructure
Mardie – Plants and Port Infrastructure For personal use only SALT WASH PLANT SOP PROCESS PLANT PORT 10
Slide 11: Attractive Financials
Attractive Financials DFS delivered strong outcomes for key financial metrics For personal use only PRODUCTION 60 YEARS ▪ Salt 4.4Mtpa FINANCIALS5 ▪ SOP 120ktpa ▪ NPV7: A$1,197M ▪ EBITDA: A$197Mpa (Salt 65%; SOP 35%) CAPITAL COST (A$779M) ▪ IRR: 15.3% ▪ A$580M direct capex ▪ A$199M indirect and cont
Slide 12: Salt Cost Curve – Contestable Market
Salt Cost Curve1 – Contestable Market2 Mardie will be a low cost supplier of salt into Asia For personal use only ▪ Mexican solar salt and Chinese rock salt the marginal cost suppliers to most Asian markets (~US$33/t) ▪ Mardie will be cost competitive with all Australian salt operations ▪ When SOP m
Slide 13: Approvals & Tenure Well Defined
Approvals & Tenure Well Defined Native title arrangements in place, approvals and tenure on track for early 2021 For personal use only ▪ 3 years of surveys completed and no material issues Environmental expected ▪ Public Environmental Review process underway ▪ EPA endorsement and Ministerial Approva
Slide 14: Strong Customer Support for Mardie
Strong Customer Support for Mardie MOUs covering a significant proportion of initial sales For personal use only SALT MOUs (Mt) ▪ 13 Salt non-binding MOUs signed throughout Asia 5.0 covering >100% of first 3 years 4.5 4.0 ▪ 2 SOP non-binding MOUs signed covering >75% of 3.5 first 5 years 3.0 Salt (M
Slide 15: Funding Strategy Advanced
Funding Strategy Advanced Positive engagement from NAIF and Banks on potential debt financing For personal use only ▪ Base case is a conventional funding model of debt (65%) and equity (35%) ▪ Secure debt commitments by end 2020 ▪ NAIF1: Formal DD phase; positive negotiations for potential long teno
Slide 16: Strong Government Support
Strong Government Support For personal use only Application for grant of “Major Project Major Project Status” from Federal Government in Status advanced stage WA Dept Jobs, Tourism, Science and Lead Agency Innovation (DJTSI) appointed as Lead Agency to facilitate approvals and tenure WA Minister for
Slide 17: Long Term Stakeholder and Public Benefits
Long Term Stakeholder and Public Benefits 1. BENEFITS TO WA & AUSTRALIA1 For personal use only ▪ Corporate taxes: >$6Bn ▪ State royalties: >$600M ▪ Native title payments >$150M 6. SECONDARY PROCESSING 2. SIGNIFICANT EMPLOYMENT ▪ Australian first to produce OPPORTUNITIES commercial SOP from seawater
Slide 18: Indicative Project Schedule
Indicative Project Schedule Next Steps: FEED, approvals, funding, ongoing site trials and early works For personal use only 2020 2021 2022 2023 2024 2025 Q3 | Q4 Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 H1 | H2 FEED1 APPROVALS FUNDING PONDS DEFINITIVE FID2 FEASIBILITY
Slide 19: Iron Valley Mine
Iron Valley Mine Strong royalty payments to BCI For personal use only ▪ Quarterly royalty earnings from operating agreement with Mineral Resources Ltd ▪ 6-8Mtpa production; 89Mt Reserves1 ▪ Potential mine life of ~11 years ▪ 50% lump ore; 59% Fe average ▪ Since first production in 2014: – BCI revenu
Slide 20: BCI Peer Comparison
BCI Peer Comparison Market valuation appears low relative to developer peers For personal use only ENTERPRISE VALUE (EV) EV/ANNUAL SOP PRODUCTION SELECTED SOP AND OTHER DEVELOPERS1,2 SOP DEVELOPERS1,3 300 1600 EV/SOP Eq. Production (A$/tpa) 1,297 250 244 205 1200 995 200 EV (A$M) 150 BCI ~60% DISCOU
Slide 21: Why Invest in BCI?
Why Invest in BCI? Developing a Tier 1 salt and SOP project supported by iron ore royalties For personal use only TIER 1 PROJECT CASHFLOW POTENTIAL Mardie has scale, low ~$20Bn1 over 100 years2 cost, long life from Mardie ▪ Enterprise value of only $38M ▪ Undervalued ATTRACTIVE MARKETS relative to p
Slide 22: Corporate Information
Corporate Information For personal use only Capital Structure 0.24 4 Ordinary Shares 399M 0.22 Share Price (5-Aug-20) $0.20 Share Price ($) 0.20 3 Volume (m) Market Capitalisation $79.8M 0.18 Cash (30-Jun-20)1 $41.5M 0.16 2 Debt (30-Jun-20)1 Nil 0.14 Enterprise Value $38.3M 0.12 1 0.10 0.08 0 Aug-19
Slide 23: Strong Board and Management
Strong Board and Management BOARD MANAGEMENT Brian O’Donnell Alwyn Vorster Tony Chamberlain For personal use only NON-EXECUTIVE CHAIRMAN MANAGING DIRECTOR PROJECT DIRECTOR ➢ Banking and investment background ➢ Geology, Mining and MBA degrees ➢ Chemistry/Metallurgy degrees (PhD) ➢ Director, Finance a
Slide 24: For personal use only
For personal use only T +61 8 6311 3400 Level 2 GPO Box E info@bciminerals.com.au 1 Altona Street 2811West Perth W www.bciminerals.com.au West Perth WA 6005 WA 6872