Black Rock Mining Limited · ASX:BKT
Black Rock Mining — Battery Minerals Conference 2021
20 slides from Black Rock Mining's conference presentation, Jun 2, 2021
Slide 1: Mahenge Graphite Mine Investor Update
Black Rock Mining Mahenge Graphite Mine For personal use only Investor Update Battery Minerals Conference 2 June 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 Market Dynamics 8 Graphite § Why Black Rock ? 9 Mine § Graphite Playbook 11 § Foundation 12 Table of Contents § Near-term catalysts 13 § Operat
Slide 4: Black Rock at a glance
Black Rock at a glance Capital structure ASX ticker BKT Premium graphite player Share price (1 June 2021) $0.18 For personal use only Shares on issue 842.2 M Australian-listed company (ASX: BKT) Options and performance rights 92.4 M 100% owner of Mahenge Graphite Mine Market capitalisation (undilute
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: 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 10: Why Black Rock? Customer Markets
Customer Markets Why Black § Higher grade concentrate reduces manufacturing and energy consumption Rock ? For personal use only A new greener source of Graphite Hydro Electric Power § Low carbon power supply, and transport footprint Mahenge Graphite Deposit § Reduced community vehicle interaction §
Slide 11: Graphite Playbook
MAJORITY OF PRE-CONSTRUCTION INVESTMENT Graphite PILOT PLANT QUALIFICATION Playbook CUSTOMERS & For personal use only OFF-TAKES GOVERNMENT EPC Sequential development that is customer driven Y O DA T DRILLING SOCIAL LICENCE STUDY WORK MINING LICENCE & FINANCING APROVALS Rapid transition through to CO
Slide 12: 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 13: Near-term catalysts
Near-term § Continued focus on customer markets and supply chain § Sure up contracts catalysts For personal use only § In country works Focus on runway to § Mine optimisation construction Large scale Transition off- Front end load Tanzanian Update Transition to Front end load qualification takes to
Slide 14: Operating Drivers
Operating § Graphite is a customer driven market Drivers For personal use only Geology drives Margin curve drives Graphite is not Base ESG applies to whole basket price project value Metals of value chain ★ Enough flake to add ★ Customers need ★ Increasingly Key lessons learned value ★ Semi-bulk log
Slide 15: 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 16: 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 17: 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 18: 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 19: 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 20: 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