Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — UBS Australia Iron Ore and Coal Conference 2013
27 slides from Bci Minerals's conference presentation, Nov 27, 2013
Slide 1: Cover letter to ASX: UBS Iron Ore and Coal Conference presentation
27 November 2013 For personal use only The Manager Company Announcements Office Australian Securities Exchange Dear Sir, BC Iron Limited (ASX:BCI) Following is a presentation on BC Iron Limited that will be delivered by Managing Director Morgan Ball at the UBS Australia Iron Ore and Coal Conference
Slide 2: UBS Iron Ore Day Presentation
For personal use only UBS Iron Ore Day Presentation Morgan Ball – Managing Director 1 ASX:BCI 27 Nov ‘13
Slide 3: Optimising the NJV | Paying dividends | Considering growth
For personal use only Optimising the NJV | Paying dividends | Considering growth 2
Slide 4: Attractive Investment Proposition
ATTRACTIVE INVESTMENT PROPOSITION For personal use only Scale & liquidity: ASX 300 member, liquidity significantly enhanced post Dec 12 TSR focus: Outperformed peers on TSR basis since Jul-12 Capital management: Robust balance sheet, conservative gearing, ongoing dividends At target producti
Slide 5: Corporate Overview
CORPORATE OVERVIEW For personal use only Capital Structure Share Price and Volume Ordinary Shares 123.8m $5.50 7 Share Price (at 21-Nov-13) $5.12 $5.00 6 $4.50 5 Market Capitalisation $634m Volume (m) Share Price $4.00 4 Cash (at 30-Sep-13) $172m $3.50 3 Debt (at 30-Sep-13) $104m $3.00 2 Enterprise
Slide 6: Peer Comparison
PEER COMPARISON For personal use only Total Shareholder Return – 1 Jul 12 to Current Why has BC Iron outperformed its peers? 124% Quality project with low capital intensity 93% Low risk 34% 21% Continued strong operational performance Repeated delivery against guidance (39%) (49%) (74%) St
Slide 7: Nullagine Joint Venture (NJV)
NULLAGINE JOINT VENTURE (NJV) For personal use only A producing DSO project with access to world-class infrastructure. Unincorporated joint venture – 75% BC Iron, 25% FMG BC Iron is the Operator and Manager of the NJV FMG provides rail & port services (through its wholly-owned infrastructure s
Slide 8: Mining – Overview
MINING – OVERVIEW For personal use only A fully contracted operation with low capital intensity. Contract mining by WATPAC, utilising Wirtgen and Vermeer surface miners Mine plan comprises four major deposits Currently mining Outcamp and Warrigal Bonnie East contributes from FY16 and Coongan
Slide 9: Mining – Overview
MINING – OVERVIEW For personal use only Mining Area Bottom of Orebody Water Table Shallow “pits” using surface mining Above water table - lower environmental 8 impact, no wet ore.
Slide 10: Mining – Surface Miners
MINING – SURFACE MINERS For personal use only Mesa edge bund wall Surface miner cut panel Ore block piles Wirtgen & Vermeer Surface Miners Rotating drum cutters – no drill & blast Environmental benefits, reduced run off 9 Provides primary crushing Surface mining results in reduced equipment
Slide 11: Processing and Logistics
PROCESSING AND LOGISTICS For personal use only Crushing / Screening (WATPAC) Road Haulage (Toll & Roadtrim) Rail and Port Services (FMG/TPI) Simple crushing & screening Ore trucked via private sealed World class rail and port process road to dedicated stockyard at Access to Capesize vessels
Slide 12: NJV Operational Performance
NJV OPERATIONAL PERFORMANCE For personal use only Ore Mined (dmt) Ore Processed (wmt) Ore Shipped (wmt) 1.8 1.8 1.8 1.6 1.6 1.6 1.4 1.4 1.4 1.2 1.2 1.2 1.0 1.0 1.0 0.8 0.8 0.8 0.6 0.6 0.6 0.4 0.4 0.4 0.2 0.2 0.2 0.0 0.0 0.0 11
Slide 13: FY2014 – Year Ahead
FY2014 – YEAR AHEAD For personal use only Guidance: NJV production guidance of 5.8-6.2Mt BCI share 4.4-4.6Mt Platts CFR62 price of US$135/dmt on 21 Nov 13 NJV C1 cash costs of A$46-50/wmt (FOB) LOM guidance of BCI C1 cash costs of A$40-44/wmt (FOB), A$46-50/wmt FOB reflecting impact of rail
Slide 14: Production Rates
PRODUCTION RATES For personal use only 18 16 14 12 Project Inventory potential million tonnes Current schedule “stretched out” as in- 10 pit BBSO supplements DSO 8 Potential for further extensions from near-pit BBSO and regional mesas 6 ? 4 2 0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY
Slide 15: Reserve Replacement & Project Inventory
RESERVE REPLACEMENT & PROJECT INVENTORY For personal use only 50 History of reserve replacement Reserves 45 Cumulative Ore Mined Bonnie East added to Reserves in FY12 40 Grade control drilling delivered increased tonnages for Ore (Mt) 35 all 5 pits remodeled to date 30 Project Inventory is a
Slide 16: Beneficiation Trial
BENEFICIATION TRIAL For personal use only -10mm / +5mm Low-grade Beneficiation trial now underway Material +10mm Secondary Crusher Secondary Simple crush and screen process Screen Potential BBSO Treating material from existing low-grade Primary -5mm / +1.5mm Primary stockpile as well as newly
Slide 17: Iron Ore Outlook and China
IRON ORE OUTLOOK AND CHINA For personal use only Chinese fundamentals drive robust long term outlook for iron ore. Recent iron ore prices stronger than expected – absence of decline in Chinese steel production typically associated with December quarter GDP growth expected to remain strong (>7.5%
Slide 18: Bonnie Fines Overview
BONNIE FINES OVERVIEW For personal use only Bonnies Fines well accepted - consistent demand. “Bonnie Fines” pisolite sinter blend improves sintering productivity at the steel mill High calcined Fe driven by high Loss On Ignition (LOI) Low impurities, low ultra-fines and low moisture Low Al a
Slide 19: Bonnie Fines Marketing & Pricing
BONNIE FINES MARKETING & PRICING For personal use only BCI Attributable Tonnes BCI CFR Received Price vs. Platts CFR62 Price $200 Bonnie Fines $180 Iron Ore Price (US$/dmt) $160 $140 ~3.2Mtpa til 2018 ~1.3Mtpa til 2018 ~4.5Mtpa thereafter Nil thereafter $120 $100 Uncommitted ore Henghou commitment S
Slide 20: Business Development
BUSINESS DEVELOPMENT Goals For personal use only Retain and enhance ability to pay dividends Generate value for shareholders (risk adjusted) via organic and inorganic opportunities Three Priorities Brazilian Exploration Projects Priority 1 – extend life of NJV (Project Inventory) BC Iron / C
Slide 21: Appendices
APPENDICES For personal use only APPENDICES 20
Slide 22: BC Iron Limited – Board
BC IRON LIMITED – BOARD For personal use only Board of Directors Tony Kiernan, Non-exec Chairman – formerly a solicitor Andy Haslam, Non-exec Director – a mining engineer with extensive experience in management and operation with 27 years operational and management experience. of Australian public c
Slide 23: FY2013 – Performance
FY2013 – PERFORMANCE For personal use only Full Year ended 30 June 2013 2013 2012 Variance Variance NJV NJV Tonnes Shipped (M wmt) 5.00 3.55 1.45 41% BCI Tonnes Shipped (M wmt) 3.15 1.77 1.38 78% BCI Average CFR Price Realised ($US/dmt) $112 $124 ($12) (10%) BCI C1 Operating Cash Cost ($/wmt) $38 $5
Slide 24: Ore Reserves & Mineral Resources – Jun '13
ORE RESERVES & MINERAL RESOURCES - 30 JUN ‘13 For personal use only Ore Reserves NJV (BC Iron 75%, FMG 25%) Classification Mt Fe% CaFe% Al2O3% SiO2% P% S% LOI Proved 18.9 57.3 65.0 1.8 3.0 0.015 0.012 11.8 Probable 18.3 56.9 64.8 2.0 3.0 0.014 0.011 12.2 Total 37.2 57.1 64.9 1.9 3.0 0.015 0.012 12.0
Slide 25: Competent Persons Statements
COMPETENT PERSONS STATEMENTS For personal use only JORC Competent Persons Statement The information that relates to the Mineral Resource Estimate at Outcamp, Bonnie East, Coongan, Dandy and Warrigal has been compiled by Mr Rob Williams who is a Member of the Australasian Institute of Mining and Meta
Slide 26: Important Notice
IMPORTANT NOTICE For personal use only This document has been prepared by BC Iron Limited (“BC Iron” or “Company”) to provide an update of BC Iron to investors and potential new shareholders. Past performance Past performance information given in this document is given for illustrative purposes only
Slide 27: For personal use only
For personal use only ASX:BCI Level 1, 15 Rheola Street West Perth, WA, Australia Phone : +61 8 6311 3400 email : info@bciron.com.au www.bciron.com.au
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