Black Rock Mining Limited · ASX:BKT
Black Rock Mining — 121 Mining Investment, Africa 2021
37 slides from Black Rock Mining's conference presentation, Feb 1, 2021
Slide 1: Mahenge Graphite Mine Investor Update
Black Rock Mining Mahenge Graphite Mine For personal use only Investor Update 121 Mining Investment, Africa 1-3 February 2021
Slide 2: Important notices
Important notices This presentation has been prepared by Black Rock Mining Limited (Black Rock or the Company). For personal use only The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which
Slide 3: Table of Contents
Black Rock § Corporate: Black Rock at a glance 4 and the For personal use only § Snapshot of the Mahenge Graphite Mine 6 Mahenge § Graphite Use 7 Graphite § Graphite Market Dynamics 8 Mine § Demand for Graphite 9 § Why Black Rock ? 10 Table of Contents § Foundation 11 § Market Entry Model 12 § POSCO
Slide 4: Black Rock at a glance
Black Rock at a glance Capital structure ASX ticker BKT Premium graphite player Share price (27 January 2021) $0.16 For personal use only Australian-listed company (ASX: BKT) Shares on issue 713.3 M Options and performance rights 69.0 M 100% owner of Mahenge Graphite Mine Market capitalisation (undi
Slide 5: Board
Board The leaders John de Vries, Managing Director and CEO § Mining Engineer with over 35 years’ experience in mine development and operations; professional experience to deliver spans Africa, the Pacific, the Former Soviet Union, North and South America and Australia For personal use only § Previou
Slide 6: A snapshot of the Mahenge Graphite Mine
A snapshot of the Mahenge Graphite Mine Simple open pit mine development with outstanding forecast returns For personal use only US$1.2B 45% 83ktpa Post-tax, ungeared, real NPV10 Post-tax, ungeared, real IRR Phase 1 output (1Mtpa ROM) 95 – 99%+ TGC purity US$116M 350ktpa 59% +80 mesh, 41% -80 Phase
Slide 7: Graphite Uses
Graphite Graphite Shapes 2% Recarburising 4% Other 9% Uses1 Lubricants For personal use only 5% Friction Products 6% Refractories Black Rock has a 46% diversified product Foundries mix with 60% 14% Batteries 14% exposure to the high margin large flake market SMALL FLAKE (FINES) LARGE FLAKE JUMBO FLA
Slide 8: Graphite market dynamics
Graphite § Electrification of transport to accelerate graphite demand ‒ EV battery pack price per kwh has dropped from US$295 in 2016 to market US$137 in 2020; projected to fall to US$94 by 2024 and US$62 by 20301 For personal use only ‒ Sub US$100 delivers electric vehicles at cost parity with gaso
Slide 9: Demand for Graphite
Demand for About 4.5 million tons of graphite is needed to be produced annually by 2050, or a cumulative of 68 million tons…..demonstrating the Graphite critical role graphite plays in the clean energy transition, being used For personal use only in Li-ion batteries, the most widely projected deploy
Slide 10: Why Black Rock?
Why Black Rock ? For personal use only Unique competitive advantages driven by Geology and Geography GEOLOGY GEOGRAPHY ★ Mahenge’s 212mt resource makes it the 4th largest graphite ★ Access to key infrastructure, Grid Power, Rail, Airstrip, Water resource in the world and Tailings disposal (dry stack
Slide 11: The Foundation
The § Largest pilot plant operations of any graphite development project globally § Highest TGC* purity achieved at commercial scale through simple flotation Foundation For personal use only § Diverse portfolio of credible offtake partners § Detailed offtake pricing framework agreed A sector-leading
Slide 12: Market Entry Model
Market Entry § Sensible Module 1 entry size (~85ktpa): limited enough to allow product market integration but significant enough to deliver meaningful returns Model § Coarse distribution of Mahenge enables an effective dual project: For personal use only ‒ Approx. 60% coarse flake (+80 mesh; +180 mi
Slide 13: POSCO Strategic Alliance
POSCO § The partnership with POSCO validates the credibility of Black Rock’s Mahenge Graphite deposit. It’s real. Strategic § POSCO has a clear view on EV/Battery demand with a significant growth For personal use only ambition of 20% global share of the battery materials sector Alliance § This is al
Slide 14: Sensible price discovery
BAIINFO Sensible FASTMARKETS price For personal use only ASIANMETAL discovery REFWIN Visible sources to index China share ~85% of global supply. Price benchmark must be China sourced. § www.refwin.com BLACK ROCK DFS PRICE ASSUMPTIONS Enhanced DFS Segment pricing Basket weight Shipping Channel & agen
Slide 15: Financing Mahenge
Financing § Targeting a blended project financing model § Matching risks to participants best placed to manage them Mahenge For personal use only § Key potential finance stakeholders include EPC vendor, offtake counterparties and Tanzanian government risk-adjusted finance § POSCO/EPCM de-risks the f
Slide 16: Black Rock: The premier graphite exposure
Black Rock: The premier graphite exposure A world-class deposit with a superior development strategy For personal use only 01 Upstream focus with highly economic mine project 06 Premier location and logistics options 02 Deep evaluation work at real commercial scale 07 Fit-for-purpose project executi
Slide 17: For personal use only
For personal use only John de Vries Richard Crookes Chairman Managing Director and CEO T: +61 438 356 590 T: +61 438 356 590 E: richard.crookes@blackrockmining.com.au E: jdv@blackrockmining.com.au A: 45 Ventnor Avenue Elvis Jurcevic West Perth WA 6005 Investor Relations T: +61 408 268 271 www.blackr
Slide 18: Appendix A: The Premier Graphite Exposure
Appendix A: For personal use only The Premier Graphite Exposure
Slide 19: Upstream focus with highly economic mine project
01 § Core upstream, mine development strategy at Mahenge Upstream § Strongly differentiated from many of our graphite development peers For personal use only § Key competitive advantage is our resource and its properties focus with § Focussed on where our experience and expertise lets us extract val
Slide 20: Deep work at real commercial scale
02 § Graphite is far from homogeneous Deep work § We have done the work needed to truly understand our deposit properties, mine and process parameters, and key product streams For personal use only at real § Our testwork results have been delivered at commercial scale § Two major pilot plant runs to
Slide 21: Leading product purity and residual chemistry
03 Leading product purity and residual chemistry For personal use only A critical differentiator Product concentrates TGC range (%) § No overprint mineralisation = ability to deliver superior 100.0% 99%+ product purity and residual chemistry 99.0% 98.0% § Enables 99%+ TGC concentrate purity with sol
Slide 22: Sensible market entry and growth strategy
§ Deep pilot plant testing via composite orebody sampling – superior process de-risking and highly representative product samples 04 § Sensible Module 1 entry size (~85ktpa): limited enough to allow product Sensible For personal use only market integration but significant enough to deliver meaningfu
Slide 23: Realistic, transparent price views
05 § Balanced approach relative to peers ‒ Lower relative large flake prices given less liquid markets and Realistic, significance to basket price calculation For personal use only transparent ‒ Higher relative medium/fine flake prices given observed purity premium and Mahenge concentrate grades pri
Slide 24: Premier location and logistics
06 § Northern location of Mahenge offers significant competitive cost advantage Premier § Proximity and access to rail and major port at Dar es Salaam For personal use only § Dar es Salaam the premier coastal export option location and ‒ High-volume container port, superior logistics, no seasonal in
Slide 25: Fit-for-purpose project execution plan
07 Fit-for-purpose project execution plan For personal use only Low risk build and a plant design dedicated to product consistency § Major fabrication of plant components prior to shipping and on-site construction § Initial diesel genset power generation to minimise start-up and early supply risk §
Slide 26: Responsibly sourced, sustainable graphite
§ Equator Principles framework fully employed 08 § Complete traceability of supply chain and proof of ethical sourcing Responsibly For personal use only § Strong community support and predominant use of local workforce § Access to hydro grid power (low emissions footprint) sourced, § Large grind siz
Slide 27: Blended, risk-adjusted finance process
09 § Targeting a blended project financing model Blended, § Matching risks to participants best placed to manage them For personal use only § Key potential finance stakeholders include EPC vendor, offtake risk- counterparties and Tanzanian government § ICA Partners mandated as finance adviser adjust
Slide 28: Superior stakeholder engagement
10 § Focus on building appropriate, long-term sustainable relationships Superior § Tanzania remains an excellent domicile – stable and LT conflict-free For personal use only § All Mahenge permits received under new Mining Code requirements: stakeholder ‒ Environmental permit and Mining Licence(s) ‒
Slide 29: Appendix B: Mahenge Project Detail
Appendix B: For personal use only Mahenge Project Detail
Slide 30: Mineral Resource and Ore Reserve estimates
Mineral Resource and Ore Reserve estimates For personal use only Contained Category Tonnes (Mt) Grade (%TGC) Graphite (Mt) Ore Reserves Proven 0 0 0 Probable 69.6 8.5 6.0 Total Ore Reserves 69.6 8.5 6.0 Mineral Resources Measured 25.5 8.6 2.2 Indicated 88.1 7.9 6.9 Total Measured and Indicated Resou
Slide 31: Enhanced DFS: Projected economics
Enhanced DFS: Projected economics For personal use only Financial performance summary Unit LOM Project life Years 27.5 Operating life Years 26.0 Total LOM net revenue US$M, real 9,619 Graphite price (real) US$/t 1,301 Total project development capital costs * US$M 337 C1 cost: real (including withho
Slide 32: Enhanced DFS: Forecast cashflow profile
Enhanced DFS: Forecast cashflow profile Mahenge Graphite Project: 4-Phase Option Cashflow Profile For personal use only 400 Project Net Cashflow Post-Tax Project Net Cashflow Pre-Tax 350 6,250 Project Net Cashflow Pre-Tax Cumulative Project Net Cashflow Post-Tax Cumulative 300 5,250 Cumulative Cashf
Slide 33: Enhanced DFS: Mining profile
Enhanced DFS: Mining profile For personal use only Following release of the Enhanced Definitive Feasibility Study (DFS) on the Mahenge Graphite Project in July 2019 (see Black Rock ASX release dated 25 July 2019, Mahenge Enhanced DFS with Executive Summary), Black Rock confirms that it is not aware
Slide 34: Enhanced DFS: Process flowsheet
Enhanced DFS: Process flowsheet For personal use only Following release of the Enhanced Definitive Feasibility Study (DFS) on the Mahenge Graphite Project in July 2019 (see Black Rock ASX release dated 25 July 2019, Mahenge Enhanced DFS with Executive Summary), Black Rock confirms that it is not awa
Slide 35: Enhanced DFS: Operating cost estimates
Enhanced DFS: Operating cost estimates For personal use only Onsite power Grid power Cost Unit generation (rental) (TANESCO) Charge to provide services (fixed cost) US$/month 176,000 70,118 Power supply (variable cost) US$/kWh 0.263 0.067 LOM average Area US$M pa US$/t ore feed US$/t graphite produc
Slide 36: Enhanced DFS: Capital cost estimates
Enhanced DFS: Capital cost estimates* For personal use only Stage 1 Stage 2 Stage 3 Stage 4 Total Area (WBS Level 1)* '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ Mining 10,165 - - - 10,165 Ifakara 1,366 1,041 727 682 3,816 Infrastructure 14,315 3,325 53,705 40,976 112,321 Process plant 50,877 45,30
Slide 37: Enhanced DFS: Graphite pricing (at 98% LOI)
Enhanced DFS: Graphite pricing (at 98% LOI) For personal use only Enhanced DFS Segment pricing Basket weight Shipping Channel & agent Contract discounts Basket FOB price deck segments (US$/t) (%) (US$/t) (US$/t) (US$/t) (US$/t) (Mesh #) +32 1,579 5 1.65 1.97 1.97 73 +50 1,449 18 5.96 6.52 6.52 242 +
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