Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — Macquarie WA Forum 2014
25 slides from Bci Minerals's conference presentation, Oct 15, 2014
Slide 1: Presentation on BC Iron Ltd cover letter to ASX
15 October 2014 For personal use only The Manager Company Announcements Office Australian Securities Exchange Dear Sir/Madam, PRESENTATION ON BC IRON LTD (ASX:BCI) Following is a presentation on BC Iron Limited which will be given by Managing Director Morgan Ball at the Macquarie Bank WA Forum in Pe
Slide 2: Macquarie WA Forum Presentation
For personal use only Macquarie WA Forum Presentation Morgan Ball – Managing Director ASX:BCI 15 Oct ‘14
Slide 3: Attractive Investment Proposition
ATTRACTIVE INVESTMENT PROPOSITION For personal use only Scale & liquidity: Iron ore producer, with increasing scale and liquidity. S&P/ASX 200 member TSR focus: Outperformed peers on TSR basis since Jul-12 Capital management: Robust balance sheet, conservative gearing, strong record of paying
Slide 4: Corporate Overview
CORPORATE OVERVIEW For personal use only Capital Structure Share Price and Volume Current Post-IOH 6.00 250 Ordinary Shares 124.3m 196.2m Iron Ore Price (US$/t) 5.00 200 Share Price (A$) Share Price (at 14-Oct-14) $1.60 $1.60 4.00 150 Market Capitalisation $199m $314m 3.00 Cash (at 30-Jun-14)1 $159m
Slide 5: Iron Ore Market Update
IRON ORE MARKET UPDATE For personal use only Downward trending iron ore price in 2014 to date Iron Ore Price and Discounts 180 25% Platts 58 Discount (FOB) Increase in supply from Australian majors Platts 62 Price (US$/t) 160 20% Demand concerns in China – softer property 140 15% sector and ti
Slide 6: BC Iron Update
BC IRON UPDATE For personal use only NJV Operations Reduced production and shipping in September quarter in line with announcement in August Good progress being made with initiatives – production ramping back up to 6Mtpa rate Iron Ore Holdings Transaction Takeover offer closed on 14 October
Slide 7: Rationale for IOH Transaction
RATIONALE FOR IOH TRANSACTION For personal use only Secures BC Iron’s long-term future in the Pilbara and provides growth options beyond the existing NJV mine life Significantly increases BC Iron’s Reserves and Resources Delivers BC Iron a presence in the West Pilbara, a well- located region w
Slide 8: BC Iron Strategy
BC IRON STRATEGY For personal use only Continue with select initiatives to manage clays detected in parts of NJV some mesas Optimise operation and reduce costs to maximise value Consider all mine / infrastructure / financing options for 6-12 months Determine optimal development and financing
Slide 9: MergeCo Pilbara Assets
MERGECO PILBARA ASSETS For personal use only Cape Preston East Port Maitland River Tenure 20 year lease Ownership 100% Status Feasibility complete Status Exploration/Concept Study Capacity 20 Mtpa Resources1 1,106Mt @ 30.4% Fe Nullagine JV Ownership 75% Status Operating Mardie Production Rate 6 Mtpa
Slide 10: MergeCo Reserves / Resources
MERGECO RESERVES / RESOURCES For personal use only Reserves (Equity Basis)1 Tonnes Fe CaFe SiO2 Al2O3 P LOI Project (Mt) (%) (%) (%) (%) (%) (%) Nullagine2 23.7 56.8 64.7 3.1 2.0 0.02 12.1 Buckland 134.3 57.6 62.6 6.5 2.4 0.15 8.0 Iron Valley 134.7 58.5 63.0 4.9 3.2 0.17 7.2 Total 292.7 57.9 63.0 5.
Slide 11: Nullagine Joint Venture (NJV)
NULLAGINE JOINT VENTURE (NJV) For personal use only A producing mine with access to world-class infrastructure. Located ~55km north of FMG’s Christmas Creek Unincorporated joint venture – 75% BCI, 25% FMG BC Iron is the Operator and Manager of the NJV FMG provides rail & port services (throu
Slide 12: NJV – Operations
NJV – OPERATIONS For personal use only Contract mining utilising Vermeer and Wirtgen surface miners Mine plan comprises four areas – currently mining at Outcamp and Warrigal Mining Current mine life of ~6 years, with remaining LOM strip ratio of 1.3:1 Processing Dry crushing & screening proc
Slide 13: NJV – Bonnie Fines
NJV – BONNIE FINES For personal use only Highly sought after pisolite sinter blend Improves sintering productivity at the steel mill High calcined Fe, due to high loss on ignition Low impurities and low moisture Used at 20-30% level in some sinter blends BCI Share of Bonnie Fines ~3.2Mtpa
Slide 14: Iron Valley
IRON VALLEY For personal use only Near production mine expected to generate cash flows via agreement with MIN. Mine gate sale agreement with Mineral Resources Limited (MIN) IOH to retain tenement ownership and statutory obligations (incl. government royalties) MIN to develop and operate mine a
Slide 15: Buckland – Overview
BUCKLAND – OVERVIEW For personal use only Development project with a potential independent infrastructure solution. Wholly owned project located in the West Pilbara region Ore Reserve of 134.3 Mt at 57.6% Fe1 and Mineral Resource of 283.2 Mt at 56.5% Fe1 Feasibility study completed by IOH in J
Slide 16: Buckland – Cape Preston East
BUCKLAND – CAPE PRESTON EAST For personal use only Cape Preston East port lease secured Exclusive rights to construct and operate onshore & marine facilities Up to 20Mtpa operation for 20 years with options to expand Potential for third party tonnages Potential transhipment facility No r
Slide 17: Buckland – BC Iron Strategy
BUCKLAND – BC IRON STRATEGY Intention that BC Iron will not be required to fund the entire feasibility study derived For personal use only capex as debt / equity on its balance sheet Consider all mine / infrastructure / financing options for 6-12 months and determine the optimal development and
Slide 18: BC Iron Strategy
BC IRON STRATEGY For personal use only Continue with select initiatives to manage clays detected in parts of NJV some mesas Optimise operation and reduce costs to maximise value Consider all mine / infrastructure / financing options for 6-12 months Determine optimal development and financing
Slide 19: Appendices
For personal use only APPENDICES 18
Slide 20: NJV Reserves & Resources
NJV RESERVES & RESOURCES For personal use only CID Mineral Resource at 30 June 2014 (BC Iron 75%, FMG 25%) Classification Mt Fe% CaFe% Al2O3% SiO2% P% S% LOI Measured 21.2 54 61.7 3.4 4.3 0.014 0.012 12.5 Indicated 38.1 53.8 61.7 3.3 4.5 0.017 0.012 12.7 Inferred 46.7 52.1 58.8 5.4 6.6 0.024 0.018 1
Slide 21: IOH Project Reserves
IOH PROJECT RESERVES For personal use only Buckland Project Ore Reserve at 30 June 2014 JORC Cut-off TonnesB Fe CaFe SiO2 Al203 P LOI Project Deposit Ore Reserve (% Fe) (Mt) (%) (%) (%) (%) (%) (%) Proved 23.2 58.3 62.9 5.8 2.9 0.15 7.4 Bungaroo South Probable 106.7 57.5 62.6 6.6 2.3 0.15 8.1 Proved
Slide 22: IOH Project Resources
IOH PROJECT RESOURCES For personal use only IOH Total Mineral Resource at 30 June 2014 JORC Cut-off TonnesB Fe CaFe SiO2 Al2O3 P LOI Location Type Project Deposit Class (%Fe) (Mt) (%) (%) (%) (%) (%) (%) Central Indicated 50 216.3 58.4 63.0 5.1 3.1 0.18 7.2 Iron ValleyA Iron Valley Pilbara Inferred
Slide 23: Important Notices
IMPORTANT NOTICES For personal use only BC Iron Ore Reserves and Mineral Resources Disclosures The information in this announcement is extracted from the ASX announcement entitled NJV Ore Reserves and Mineral Resources dated 3 March 2014 and is available to view on http://www.bciron.com.au/investors
Slide 24: Important Notices
IMPORTANT NOTICES For personal use only This document has been prepared by BC Iron Limited (“BC Iron”) to provide an update regarding the companies to investors. Past performance Past performance information given in this document is given for illustrative purposes only and should not be relied upon
Slide 25: For personal use only
For personal use only Level 1, 15 Rheola Street West Perth, WA, Australia Phone : +61 8 6311 3400 Email : info@bciron.com.au Website : www.bciron.com.au