Slide 1: Updated Scoping Study December 2021
ASX:BEM ACN: 610168191 UPDATED SCOPING STUDY DECEMBER 2021 ASX:BEM
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT BlackEarth Minerals NL (“BlackEarth or “the Company”) now presents details regarding its updated Scoping Study The Scoping Study (“the Scoping Study” or “the Study”) referred to in this announcement is based on further studies following a scoping study (“the Original Study”) rel
Slide 3: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements contained in this presentation, including information as to the future financial or operating performance of BlackEarth Minerals NL (‘‘the Company’) and its projects, are forward-looking statements. Such forward-looking statements are necessarily based o
Slide 4: Key Scoping Study Updates
KEY SCOPING STUDY UPDATES • The updated December 2021 Scoping Study (“the Study”) is based on the Company’s original Scoping Study (published 30 January 2019(1)) and updated following a material upgrade in the Company’s Resource(3) and other improved factors • Significant progress has been made in t
Slide 5: Updated scoping study highlights & key assumptions
Updated scoping study highlights & key assumptions Updates to the Scoping Study have been driven by the following key factors:- 1. The material Increase to Resource Size and Grade announced on 17 November 2021– the additional resource increased BEM’s overall inventory by 22% in size with additional
Slide 6: Key Highlights Post Updated Maniry Scoping Study
Key Highlights Post Updated Maniry Scoping Study Maniry Pre-Tax NPV Consolidated Project(s) NPV Maniry Payback Period c.US$230m c.$US255m 1.2Yrs Combined Maniry & Metachem1 pre-tax Maniry payback (after-tax) from first ore • 126% increase from 2019 Scoping Study valuation has materially decreased fr
Slide 7: Significant NPV Uplift & Deep Value Proposition
Significant NPV Uplift & Deep Value Proposition1 Combined Project Valuation Breakdown vs BlackEarth Combined Capex and Enterprise Value (EV) US$25m2 US$152m US$127m NPV Uplift US$208m US$255m Value Gap US$223m US$103m US$40m US$15m Maniry 2019 Maniry 2021 Metachem JV NPV Consolidated NPV Post-Tax Co
Slide 8: Positive Graphite Market Sentiment
Positive Graphite Market Sentiment BOUYANT OUTLOOK AND INDICATORS GRAPHITE EQUITY PERFORMANCE SINCE JULY 2021 “The commodities market is not in “Alongside demand from energy a so-called supercycle, rather it is storage applications, the battery at the start of an unprecedented industry is due to bec
Slide 9: Corporate Overview
CORPORATE OVERVIEW CAPITAL STRUCTURE BOARD OF DIRECTORS & MANAGEMENT Over 30 years’ experience in the resources industry including 14 George Bauk years’ experience as a listed resources company director Non-Executive Has held global operational and corporate roles with WMC BEM $5.77M Chairman Re
Slide 10: Environmental, Social and Governance
Environmental, Social and Governance Our Commitment and Development v v v ENVIRONMENTAL SOCIAL GOVERNANCE Commitment to Green Energy Investing in our future leaders - Leading ASX listed Graphite focused Operation Malagasy team trained in Australia Company – regular stakeholder ESIA to be con
Slide 11: I. Updated Maniry Scoping Study
I. UPDATED MANIRY SCOPING STUDY A The details of Appendix 1 -3 are key assumptions underpinning many of the results of this section and should be read as part of this.
Slide 12: Updated scoping study: Significantly Improved Outcomes
Updated scoping study Significantly Improved Outcomes 2019 2021 Updated • BlackEarth Minerals NL is pleased to announce it has Financial Metric Unit Scoping Study revised the 2019 Scoping Study to produce a new 2021 Scoping Study Scoping Study for its 100%-owned Maniry Graphite Project Life (Yrs) 11
Slide 13: Maniry Resource Upgrade
Maniry Resource Upgrade MANIRY PROJECT ADDITIONAL MINERAL RESOURCES1 & NEW TOTAL MINERAL RESOURCE Maniry Mineral Resources Area Classification Tonnes (Mt) TGC (%) Contained Tonnes (t) Indicated 8.0 7.2 677,600 Razafy* Inferred 3.2 6.8 217,600 Indicated 1.9 9.6 182,000 Razafy North West* Inferred 1.0
Slide 14: Updated Scoping Study - Maniry: CAPEX / OPEX updates
Updated Scoping Study - Maniry Highlights – CAPEX / OPEX updates Stage 1 CAPEX analysis has resulted in CAPEX / OPEX Original Scoping Updated scoping Study reductions for some infrastructure and mine Change UPDATES Study - US$ - US$ camp development costs. This has been achieved by assessing the cos
Slide 15: Updated Scoping Study Decreased Operating Costs
Updated Scoping Study Decreased Operating Costs ~25% decrease US$593.07/t in operating costs/t • Through implementing a large mineral US$55.86/t resource, with higher grades, we have US$28.23/t been able to achieve substantial US$35.90/t US$447.76/t operating cost efficiencies US$26.48/t US$110.30/t
Slide 16: Maniry Costs Breakdown
Updated Scoping Study Highlights – Maniry – Costs Breakdown Original LOM average annual operating cost Scoping Study By implementing a large mineral resource, Av. Total Total Cost Feed Product Product with higher grades, in to the production plan, Annual Operating Costs (US$ k/y) (%) (US$/t) (US$/t)
Slide 17: Maniry Additional Resource November 2021
Updated Scoping Study Maniry – Additional Resource – November 2021 On 17 November 2021, the Company announced the results of its recent exploration program with the additional JORC compliant resource added. This additional data, along with other data, forms the basis for the updated scoping study To
Slide 18: Maniry Production / Mine Plan
Updated Scoping Study MANIRY – Production / Mine Plan Ore Mined (Mt) Grade (%TGC) • Production profile assumes processing of 500,000tpa of 1.2Mt 12.0% graphite ore for Yr1-Yr3 (Stage 1) increasing to 1.0Mtpa for Yr4 onwards (Stage 2) 1.0Mt 10.0% • Assumes mining 100% of the stated Indicated inventor
Slide 19: Maniry Production Processing Plan
UPDATED SCOPING STUDY Maniry – Production – Processing Plan Production Profile - Processing The Company’s production profile assumes 350.0 100% processing of 500,000 tonnes of graphite ore per annum for years 1 -3 (Stage 1) increasing to Thousands 98% 300.0 1,000,000 tonnes pa for years 4 onwards (s
Slide 20: Price Assumptions & Key Financial Parameters
Updated scoping study- Maniry Price Assumptions & Key Financial Parameters Graphite Product Specification and Pricing Original Scoping Updated scoping Price Assumptions – only 3.5% increase For the purpose of this study, the price assumptions for Study Study the likely graphite produced have been ba
Slide 21: Maniry Sensitivity Analysis Results
Updated Scoping Study Maniry – Sensitivity Analysis Results s Sensitivity Analysis Sensitivity Analysis - % Movement (NPV @ 10.0%, after tax, US$, real) (NPV @ 10%, after tax, US$, real) $350m Price (20.1%) 20.1% Price $300m Grade $250m Recovery (18.5%) 18.5% $200m $184m Capital Expenditure Grade (1
Slide 22: II. Metachem Project & Impact on Company Study
II. METACHEM PROJECT & IMPACT ON COMPANY STUDY
Slide 23: Impact From Joint Venture With Metachem
Updated Scoping Study Impact From Joint Venture With Metachem BlackEarth entered in to a JV Agreement with world leading expandable graphite producer in October 2021 and is on track to develop its plant and operations in the first half of 2022 and commence production in mid 2022. Highlights of the a
Slide 24: Revenue And OPEX Projections – JV With Metachem
Updated Scoping Study Revenue And OPEX Projections – JV With Metachem Financial Metric Unit Metachem JV • Metachem JV operation is a low CAPEX business BlackEarth Ownership (%) 50.0% model that will be established in a Special Economic Zone (“SEZ”) in India Project Life (Yrs) 25.0 Total Net Revenue
Slide 25: Revenue And OPEX Projections – JV With Metachem
Updated Scoping Study Revenue And OPEX Projections – JV With Metachem Price Assumptions US$/t • Proposed that graphite concentrate will be Grade 1 $4,000.0 sourced from external parties for years 1 -2 of Grade 2 $3,400.0 operations with product from Maniry supplying operations from years 3 onwards.
Slide 26: Sensitivity Analysis - Metachem
Updated Scoping Study Sensitivity Analysis - Metachem a Sensitivity Analysis Sensitivity Analysis - US$ Movement (NPV @ 10.0%, before tax, US$ real) (NPV @ 10%, after tax, US$, real) $80m Price $70m Price -$6.8m $6.8m $60m $49.0m Capital expenditure $50m $40m Operating Expenditure -$2.7m $2.7m Opera
Slide 27: Sensitivity Analysis - Metachem
Updated Scoping Study Sensitivity Analysis - Metachem a Commodity Price Sensitivity Analysis Sensitivity Analysis (NPV @ 10.0%, US$, real) (NPV @ 10.0%, after tax, US$, real) $80m $70m $75m Price $70m $66m $60m $59m $60m $57m $50m $53m Capital $49m $46m $39m expenditure $50m $40m $40m $39m $40m $30m
Slide 28: III. Overall Consolidated Company Updated Scoping Study
III. OVERALL CONSOLIDATED COMPANY UPDATED SCOPING STUDY
Slide 29: Updated Scoping Study Highlights - Consolidated
UPDATED SCOPING STUDY HIGHLIGHTS - CONSOLIDATED Financial Performance Summary Maniry Metachem JV Consolidated Financial Metric (%) 100% 50% Project Life (years) 13.6 25.0 Total Net Revenue (US$ M, real) 899.0 176.3 1,075.3 Total EBITDA (US$ M, real) 561.2 107.7 668.9 Total Net Cash Flows Before Tax
Slide 30: IV. Maniry Project Overview
"PROIECT (G) BLACKEARTH OVERVIEW Specialising in Critical Commodities
Slide 31: Madagascar Graphite
Madagascar Graphite Significant in-country graphite mines and a long term producer and exporter Toamasina – DNI Metals (CSE:DNI) Sahamamy (LSE:TGR) 1 Toamasina (CSE:DNI) 1 Mineral Resource 4.0Mt grading 5% TGC Historic producing graphite property 2 3 Vatomina (LSE:TGR) Sahamamy – Tirupati Graphi
Slide 32: Madagascar A Critical Global Graphite Supplier
Madagascar A Critical Global Graphite Supplier • Madagascar continues to grow as a major global supplier of natural graphite • Exports rose by > 50%* between 2018 and 2020. • This number is expected to grow significantly over the next 2 years as a result of the expansion to Tirupati and Gallois oper
Slide 33: Maniry Project Area
Maniry Project Area Significant expansion potential Project Area (Razafy); >14 yrs mine life based on 100% Indicated and 20% Inferred Resources Granted 40-year Mining Lease over the Razafy Resource Maniry tenements stretch over 20km2 35 large outcropping graphitic areas cover the Maniry tene
Slide 34: Maniry Graphite Specs
Maniry Graphite Specs Graphite from BlackEarth’s Maniry project meets the specifications required for applications in the expandables, refractory and lithium-ion battery industries. Expandables Refractory Li-Batteries NGS (Germany) achieved results of 400 Following successful testing, BlackEarth
Slide 35: Maniry Graphite Project
Maniry Graphite Project Process Product Application Partner Fine/Small Flake Li-ion Battery / Anode (30-35% BEM Product)1 Market Up to 25,000 tpa Graphite US$500-700/t Mining Processing Concentrate Mid-Sized Flake (15-20% BEM Product)1 Refractory Materials US$750- 1200/t LOM Strip Stage 1: 500ktpa S
Slide 36: Product Partners
Product Partners 1 2 3 4 5 MOU to fastrack Graphite Supply and Binding Offtake for Nature of Binding Offtake MOU 50/50 JV to Produce agreement downstream production Marketing Agreement Expandable Graphite Expandable Graphite Product US-based, premier provider of refined graphite powders globally
Slide 37: Project Development
Project Development 2022 Milestones JAN FEB MAR APR MAY JUN Q3 Q4 Q4 Infill Drilling BFS with Improved Economics Statutory Licensing & Permitting Project Financing Front End Engineering & Long Lead Items Management 37
Slide 38: Maniry – Process Flowsheet
Updated Scoping Study Maniry – Process Flowsheet * The basic process flowsheet proposed to treat the Maniry ore will include: • 2 – Stage crushing • Primary Rod mill to feed the rougher flotation cells with rougher tails being reground in a ball mill prior to a scavenging circuit • Coarse and fine f
Slide 39: Maniry – Project Location
Updated Scoping Study Maniry – Project Location The Maniry Graphite Project is in southwest Madagascar approximately 180 km south-east of Toliara, the capital of the Toliara Region. The Ianapera Project is located 70 km north- northeast of Maniry. Access to the Maniry Project is initially via the ar
Slide 40: Tom Revy, Managing Director; David Round, Finance Director
Tom Revy Managing Director tom.revy@blackearthminerals.com.au Phone: + 61 (0) 411 475 376 David Round Finance Director david.round@blackearthminerals.com.au Phone: + 61 (0) 411 160 445 L3 1138 Hay St West Perth, WA, Australia
Slide 41: Appendix One
Appendix One Source: Benchmark Mineral Intelligence 41
Slide 42: Appendix Two
Appendix Two Source: Benchmark Mineral Intelligence - 30 November 2021 42
Slide 43: Appendix Three: Production Profile - Mining
Appendix Three Updated Scoping Study Production Profile – Mining Production Profile - Mining For the Scoping Study, preliminary pit optimisation was undertaken based on the 1.2 12.0% Millions BlackEarth provided Resource block model. The work undertaken included pit optimisations of several scenario
Slide 44: Appendix Three: Mining and Processing Flowsheet
Appendix Three Mining (cont) Processing Flowsheet Updated JORC Compliant Resource as described in market release of 17 November The basic process flowsheet proposed to treat the Maniry ore is based on initially treating 2021 and outlined below - 500ktpa of ore. An expansion (Stage 2) is planned to b
Slide 45: Appendix Three: Metallurgical Testwork
Appendix Three Metallurgical Testwork An optimisation program was conducted on a Master Composite with results Introduction indicating: • The coarse flakes needed grinding to liberate the gangue material Diamond core drill programs were conducted in early 2018 and 2021 to generate samples for metall
Slide 46: Appendix Three: Metallurgical Testwork (cont)
Appendix Three Metallurgical Testwork (cont). Comminution Test Results Processing, Infrastructure and Logistics Bond Rod, Bond Abrasion and SMC (SAG Mill Comminution) tests were conducted. From the The plant and infrastructure will comprise: comminution test data, the Razafy material would be consid
Slide 47: Appendix Three: Processing, Infrastructure and Logistics
Appendix Three Processing, Infrastructure and Logistics (cont) A general site layout is shown below:- Laboratory A laboratory for sample preparation and to assay the various products generated through mining, crushing, milling and flotation will be located onsite. The laboratory will be supplied, op
Slide 48: Appendix Three: Power and Water Supply
Appendix Three Power Water Supply Process plant For a design basis, make-up water requirement was estimated at 0.7 m3/t of mill feed resulting in a total make-up water required for the operation at 0.35 A power station comprising diesel generator sets (gensets) rating with an N+1 strategy GL/y per s
Slide 49: Appendix Three: Tailings, Roads and Port
Appendix Three Tailings and Water Recovery On the 29 July 2021 the Company announced to the ASX that it received The plant will have tails and graphite product thickeners where overflow from both confirmation from the Port d’Ehoala SA that the Company had been granted thickeners gravitates to the pr
Slide 50: Appendix Three: Supply Chain and Accommodation
Appendix Three Supply Chain and Product Transport Accommodation village All supply-chain activities will be managed by BlackEarth. The transport of product to A camp consisting of modular prefabricated buildings will be constructed for non- the port, loading of containers, delivery to the ship and s
Slide 51: Appendix Three: Environment, Community, Permitting, Capital Cost
Appendix Three Environment, Social, Community and Permitting (Cont) Capital Cost Estimate Regulatory Requirements Estimate Overview and Qualifications There are several regulatory bodies providing the regulation of mining activities in The capital cost estimate for the original Scoping Study (refer
Slide 52: Appendix Three: Stage Capex Estimate
Appendix Three Stage 1 Capex Stage 2 Capex Cost Component Estimate Overview and Qualifications (cont) (US$ k) (US$ k) Process Plant For the Stage 2 development, based on doubling of Process plant total 11,309 11,309 Plant-site bulk earthworks and PW pond 1,066 1,066 the ore rate and duplication of t
Slide 53: Appendix Four: Madagascar's Economy
Appendix Four Madagascar’s Economy* • Agriculture, including fishing and forestry, is a mainstay of the economy, accounting for more than one-fourth of GDP and employing roughly 80% of the population. • Madagascar produces around 80% of the world’s vanilla and is largely reliant on this commodity fo