Bci Minerals Ltd · ASX:BCI
Bci Minerals — Investor Presentation (September 2018)
17 slides from Bci Minerals's investor presentation, Sep 25, 2018
Slide 1: Developing a Salt & Potash Business
For personal use only Developing a Salt & Potash Business Corporate Presentation September 2018 www.bciminerals.com.au
Slide 2: About BCI Minerals
About BCI Minerals For personal use only ▪ ASX-listed resources company based in Perth, Australia (ASX: BCI) ▪ Market cap of ~A$55M (at A$0.14) ▪ A$13.1M1 cash and zero debt ▪ Building a new Salt and Potash business supported by Iron Ore earnings: – Feasibility study being undertaken on the Mardie S
Slide 3: Iron Ore Divestment Process
Iron Ore Divestment Process ▪ Divestment process underway for the potential For personal use only sale of BCI’s iron ore asset portfolio – Iron Valley: 6-8Mtpa operating mine delivering royalty income (~A$8M in FY18 and ~A$16M in FY17) – Kumina: Resource of 115Mt at 58.0% Fe2 with significant upside
Slide 4: Why Salt and SOP?
Why Salt and SOP? Both Salt and SOP have an attractive long term demand outlook For personal use only 200 55Mtpa 25Mtpa ▪ Strong demand New growth forecast in Asian 15Mtpa Asian chemical Demand by 2027 Mtpa Salt industry 15Mtpa 150 Supply New Salt Potential Salt (NaCl) Capacity Projects by Supply Ga
Slide 5: Australian Salt & SOP Landscape
Australian Salt & SOP Landscape For personal use only ▪ Currently five large evaporative Salt operations with a total production capacity of ~14Mtpa salt – Key players are Dampier Salt (Rio Tinto, Marubeni and Sojitz) and Mitsui – Operations up to 5 decades old ▪ No existing SOP production in Austra
Slide 6: Mardie Salt & SOP – Unique Opportunity
Mardie Salt & SOP – Unique Opportunity ▪ Ideal site for a large-scale solar evaporation project For personal use only – Coastal location with large tenement holding – Excellent climate with high net evaporation rates – Large area of low permeability mudflats – Environmentally sensitive areas can be
Slide 7: Attractive PFS Economics
Attractive PFS Economics1 Key Metrics Salt SOP Salt Cost Curve – High Purity Supply into Asia For personal use only 45 Production 3.5Mtpa 75ktpa Cash Costs (US$/t CIF Qingdao) 40 ESSA 35 Operating Life2 >50 years >50 years 30 Dampier Salt Mardie Mitsui 25 Capex A$248M A$87M 20 15 Price (FOB) A$40/t
Slide 8: DFS Scope and Objectives
DFS Scope and Objectives PFS DFS1 For personal use only (Actual, Jun-18) (Objectives, Q3-19) -15% to +25% -10% to +15% Design Accuracy AACE Class 4 AACE Class 3 Salt Production 3.5Mtpa 4.0Mtpa SOP Production 75ktpa 100ktpa Cape Preston East Mardie Export Facility (70km haul) (No haulage) Time to Fir
Slide 9: Mardie Proposed FID Timeline
Mardie Proposed FID Timeline For personal use only 2018 2019 2020 Activities Q4 Q1 Q2 Q3 Q4 Q1 Q2 DFS Scoping & Contracting Pond & Crystalliser Design Process Plant Design DFS Report Environmental Surveys & Approvals Mardie Port Design & Approvals Contracting / Offtake / Funding Detailed Engineering
Slide 10: Mardie Conclusions
Mardie Conclusions For personal use only ✓ Strong market dynamics in target markets for high-purity salt and SOP ✓ Ideal site location and conditions for a solar evaporation project ✓ Potentially a very long life operation (>50 years) utilising seawater ✓ DFS will target >A$500M NPV and ~A$140M per
Slide 11: BCI Key Value Drivers
BCI Key Value Drivers For personal use only Buckland/Kumina: divest to provide funding Q4-18 for Mardie through to FID Iron Valley: BCI royalty upside once MIN H1-19 confirms light rail development Mardie: Final investment decision with DFS, Q4-19 approvals and funding in place 11
Slide 12: Important Notices
Important Notices This presentation has been prepared by BCI Minerals Limited ABN 21 120 646 924 (“BCI”). For personal use only This document contains background information about BCI current at the date of this presentation. The presentation is in summary form, has not been independently verified a
Slide 13: Appendix
For personal use only Appendix
Slide 14: Corporate Information
Corporate Information For personal use only Capital Structure Shareholding and Trading Ordinary Shares 397.6M Wroxby Pty Ltd 27.6% Share Price (17-Sep-18) $0.135 Top 20 Shareholders ~50% Market Capitalisation $53.7M Number of Shareholders ~7,200 Cash (30-Jun-18) $13.1M Ave Daily Volume (Last 6 Month
Slide 15: Iron Valley Mine – Royalty Earnings
Iron Valley Mine – Royalty Earnings ▪ For personal use only Quarterly earnings for BCI via royalty agreement with Mineral Resources Ltd (MIN) – Underlying BCI EBITDA of ~A$8M in FY18 and ~A$16M in FY17 ▪ 6-8Mtpa iron ore operation; 50% lump production; potential mine life of ~15 years ▪ Average ore
Slide 16: Buckland Iron Ore Project
Buckland Iron Ore Project ▪ Development project in the West Pilbara For personal use only – Bungaroo South: FS completed and fully approved for 8Mtpa operation1 – Kumina: maiden Resource of 78Mt at 59.1% Fe (57% Fe cut-off) or 115Mt at 58.0% Fe (53% Fe cut-off)2 with upside potential – Cape Preston
Slide 17: For personal use only
For personal use only T +61 8 6311 3400 Level 1, 15 GPO Box 2811 E info@bciminerals.com.au Rheola St West West Perth WA 6872 W www.bciminerals.com.au Perth WA 6005
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