Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — Shareholder Meeting (November 2008)
26 slides from Bci Minerals's shareholder meeting presentation, Nov 6, 2008
Slide 1: Annual General Meeting, 2008
For personal use only Annual General Meeting, 2008 Mike Young, Managing Director
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS For personal use only This release may include forward-looking statements. These forward-looking statements are based on management’s expectations and beliefs concerning future events. events Forward-looking statements are necessarily subject to risks, risks uncertainties
Slide 3: The Year in Review
THE YEAR IN REVIEW For personal use only ¾ Successful capital raising $9.2M $9 2M by way of a placement of 5.4M 5 4M shares @ $1.70 ¾ Completed p exploration p drilling g of 1194 94 holes for 25,060 5, m ¾ Delineated a maiden resource estimate of 28 Mt @ 57.4% Fe and defined targets of a further 30
Slide 4: The Year in Review
THE YEAR IN REVIEW For personal use only ¾ Metallurgical sinter test work indicates that BC Iron ore has enhanced value as an ultra-low phosphorus, premium sinter blend ¾ Marketing/off g/ take negotiations g - Chinese,, North American,, and SE Asian customers ¾ Secured the reservation of 2 multi-use
Slide 5: Capital Structure
CAPITAL STRUCTURE For personal use only Shares h on issue i Trading 35.4 Restricted 24.0 TOTAL 59 4 59.4 Options 5.7 1.75 Fully Diluted 65.1 Top Shareholders Number % Total Consolidated Minerals 15.6 26% Alk Alkane Resources R 9.0 15% % Warrigal Well with 40 m iron ore cliffs in background UBS Wealt
Slide 6: Board and Management
BOARD AND MANAGEMENT For personal use only Board Tony Kiernan Chairman Mike Young g Managing g g Director Non-executive Directors Garth Higgo COO of Consolidated Minerals Terry Ransted Consultant Alkane Resources Steven Chadwick Consulting Metallurgist BCI Team Blair Duncan GM Operations Arthur Belo
Slide 7: Location
LOCATION For personal use only Nullagine Project ¾ Close to emerging infrastructure ¾ 35 km north of Fortescue’s Operations Bungaroo Creek Project ¾ Adjacent to Rio’s Bungaroo CID ¾ Greenfields project ¾ In application 7
Slide 8: Nullagine Project
NULLAGINE PROJECT For personal use only Bonnie Creek Channel Iron Deposit ¾ 28 Mt DSO 57.4% Fe (65% CaFe) ¾ +30 Mt CID at >56%Fe targeted ¾ Ultra-low P, High quality sinter blend ¾ Adjacent to FMG Nullagine River CID ¾ DSO & upgrade CID (~5 Mt) Shaw River CID ¾ Potential for DSO, upgrade CID & detri
Slide 9: Bonnie Creek Project
BONNIE CREEK PROJECT For personal use only Mining Options Option 1 – Scoping Study ¾ St t /R Startup/Ramp up 3/ Mtpa 3/5 Mt ¾ CapEx A$85 -100 M ¾ OpEx ~$40/tonne $40/tonne Option 2 – Capex Minimisation ¾ Startup/Ramp p/ p up p tpa p 1.5/3/5 / / Mtpa p ¾ CapEx A$20 -30 M ¾ OpEx ~$40/tonne ¾ In-pit se
Slide 10: Bonnie Creek Project Timing
BONNIE CREEK PROJECT For personal use only Timing ¾ Baseline Environmental Surveys Completed ¾ Infill drilling Completed ¾ Resource Estimate Second Half 2008 ¾ Feasibility Study First Half 2009 ¾ Mining Approvals Second Half 2009 ¾ Construction commences Second Half 2009 ¾ Production First Half 2010
Slide 11: Where Are Prices Going?
WHERE ARE PRICES GOING? For personal use only Hamersley Fines US$/t @ 58% Fe 90 80 70 -20%, -10%, 0% yoy 60 2007 50 40 4 2005 5 30 -20% yoy 20 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 11
Slide 12: Where Are Prices Going?
WHERE ARE PRICES GOING? For personal use only Hamersley Fines US$/t @ 58% Fe 90 80 70 60 50 40 4 30 20 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 12
Slide 13: Where Prices Won't Go
WHERE PRICES WON’T WON T GO For personal use only Iron Ore Cash FOB Costs for 2008 - by Site 100 Aust Fines FOB Price 80 Port Loading ne Aust Fines US$60/t S$/dry tonn Royalty 60 Transport Pelletizing Processing Mining 40 US 20 0 0 100 200 300 400 500 600 700 800 900 Cumulative Forecast Production -
Slide 14: Bonnie Creek – Mineral Resource
BONNIE CREEK– Mineral Resource For personal use only Inferred Mineral Resource Estimate – March 2008 DSO Resource Estimate Prospect COG1 Zone Mt Fe CaFe SiO2 Al2O3 P S LOI1000 Outcamp 55.0 DSO 20.6 57.3 64.9 3.18 1.70 0.016 0.017 11.8 Coongan 55.0 DSO 7.4 57.8 65.5 2.39 1.86 0.013 0.017 11.8 TOTAL D
Slide 15: Iron Making
IRON MAKING For personal use only I Iron Smelting S lti • Iron is main ingredient in steel • Iron making is carried out in a blast furnace at very high temperatures ((~1400 1400o C) • Iron ore (Fe2O3) reduced to iron oxide (FeO) • Iron oxide is melted forming molten “pig iron” metal – tapped from bo
Slide 16: Blast Furnace
BLAST FURNACE For personal use only Blast furnace • Iron ore & coal are added at the top in alternating lt ti llayers – lump l & coke k only l • Hot air is blasted into the bottom of the furnace • Coke combustion creates hot CO which travels up, p, countercurrent to the descending g burden • Rising
Slide 17: Sintering
SINTERING For personal use only Sintering ¾ All iron ore mines produce a lump (6 – 30 mm) and a fines (< 6 mm) product ¾ Only lump ore can be used in the blast furnace ¾ Synthetic h i llump iis made d bby ffrom fines fi b hi by high h temperature agglomeration - sintering ¾ Optimal physical properti
Slide 18: Sintering
For personal use only 18 SINTERING
Slide 19: Sintering Quality and Upgrade
SINTERING QUALITY AND UPGRADE For personal use only Sintering Qualities of BCI Ore Sintering Upgrades BCI Ore ¾ Independantly tested in China Original Assay ¾ Blended with a typical fines sinter 57% Fe 57 ¾ Using 0, 10, 20, and 30% blend 10% LOI ¾ Resulted in increased quantity and quality of sinter
Slide 20: Iron Ore Deposits – Peer Comparison
IRON ORE DEPOSITS – Peer Comparison For personal use only Other DSO Element/ Typical BCI CID BHP CID RIO CID FMG Deposits Compound Spec Bonnie Ck Yandi Robe R Chichester Fe >57 57.4 58.0 57.0 59.1 CaFe 65.1 64.2 62.8 64.0 SiO2 3–5 30 3.0 50 5.0 57 5.7 42 4.2 Al2O3 < 2.0 1.7 1.3 2.7 2.3 P < 0.10 0.02
Slide 21: Bonnie Creek CID – Outcamp Prospect
BONNIE CREEK CID – Outcamp Prospect For personal use only 801,000E 802,000E 803,000E 804,000E 805,000E 7,562,000N 7,561,000N Scale 500 m Outcamp Well ¾ 21 Mt at 57.3% Fe DSO ¾ Low strip ratio 0.8:1 ¾ Outcropping mineralisation 21
Slide 22: Bonnie Creek CID – Outcamp Prospect
BONNIE CREEK CID – Outcamp Prospect For personal use only Conceptual ‘pit’ outline Regional surface s rface ¾ Shallow “pits” mainly above surrounding plains - mining ore from day 1 ¾Above water table - lower impact on subterranean aquatic fauna ¾Low OpEx - low strip ratio, use of surface miners 22
Slide 23: Bonnie Creek CID – Mining
BONNIE CREEK CID – Mining For personal use only VERMEER TL1255 Terrain Leveler ¾ Drill & Blast not required ¾ Primary Crushing not required ¾ Mine Haul Trucks not required VERMEER TL1255 operating i at Cloud l d Break k (FMG) ( ) – photo h b by BC Iron 23
Slide 24: Infrastructure
INFRASTRUCTURE For personal use only Short Term Strategy ¾ Rail Haulage Agreement with Fortescue Utilise available rail/port /p capacity p y during g Fortescue’s production ramp-up phase 2010-11 Negotiate port access via common user facility and/or lease of alternate available capacity 2009-10 L
Slide 25: Summary
SUMMARY For personal use only So far.... f 9 BCI is a Pilbara iron ore developer 100% project ownership 9 Maiden JORC Resource – 28 Mt at 57.4% Fe 9 E l ti targeting Exploration t ti an additional dditi l 30 Mt DSO 9 Feasibility Study on 3 - 5Mtpa operation – underway 9 Test work indicates “First Fi
Slide 26: Mike Young, Managing Director
For personal use only Mike Young, Managing Director