Bci Minerals Ltd · ASX:BCI
Bci Minerals — Investor Presentation (February 2021)
27 slides from Bci Minerals's investor presentation, Feb 11, 2021
Slide 1: Developing the Multi-Generational Mardie Salt & Potash Project
For personal use only Developing the Multi-Generational Mardie Salt & Potash Project Corporate Presentation 11 February 2021 ASX:BCI www.bciminerals.com.au
Slide 2: Important Notices
Important Notices Not an Offer of Securities This document has been prepared by BCI Minerals Limited ABN 21 120 646 924 (“BCI”) and is provided for information purposes only. For personal use only This document does not constitute or contain an offer, invitation, solicitation or recommendation with
Slide 3: BCI Overview
BCI Overview For personal use only IRON VALLEY MARDIE SALT & ROYALTIES POTASH PROJECT ▪ ~$190M market cap1 ▪ ~$80M cash and zero debt2 Record 1H FY21 Tier 1: 100-year project EBITDA of $17M BCI SHARE PRICE BCI PERFORMANCE RELATIVE TO PEERS 0.35 7 250% MinRes 0.30 6 200% Kalium Share Price ($) Perfor
Slide 4: Why Salt and SOP?
Why Salt and SOP? Strong growth markets Stable pricing For personal use only +30%; +50Mtpa1 SALT Salt & SOP prices less cyclical than ▪ >10,000 products derived from salt ASIAN Iron Ore; Copper and Nickel (PVC, alumina, glass, paper, water DEMAND purification) (2030) ▪ Asian market size of ~160Mtpa
Slide 5: Australian Salt & SOP Landscape
Australian Salt & SOP Landscape Mardie: ideal location to produce high-purity salt and SOP For personal use only Western Australia – Salt and SOP Projects ▪ Pilbara has ideal climate to produce high purity salt – High temperature, high wind, low rainfall, low humidity – Proven salt production region
Slide 6: Mardie – A Tier 1 Project
Mardie – A Tier 1 Project Large scale, low cost and long operating life For personal use only 3. QUALITY 5. STRONG 1. LARGE SCALE 2. SUSTAINABLE 4. LOW COST PRODUCTS CASHFLOWS ▪ Largest salt project ▪▪ 100-year 100-year life life ▪▪ High High purity purity salt salt ▪▪ Lowest Lowest quartile quartil
Slide 7: Feasibility Study Design
Feasibility Study Design DFS completed in June 2020 with positive results For personal use only Project Layout SITE CONDITIONS ▪ 100km2 clay soils – ideal to retain water ▪ High net evaporation rates (~10mm/day) PRODUCTION ▪ 9 evaporation ponds ▪ 34 salt and 18 SOP crystallisers ▪ Salt wash plant pr
Slide 8: Mardie Scale will be Globally Significant
Mardie Scale will be Globally Significant Third largest solar salt project globally1 Project footprint vs Sydney/Perth For personal use only Salt Capacity (Mtpa) 0 1 2 3 4 5 6 7 8 Parramatta Guerrero Negro [Mexico] Manly Hajipir [India] Sydney Mardie Salt/SOP Project [WA] 4.4Mtpa Salt Dampier [WA] S
Slide 9: Final Detailed Design Underway
Final Detailed Design Underway Multiple industry experts involved – low residual construction risk at FID For personal use only 1. MAIN SEAWATER PUMP STATION 2. SALT WASH PLANT 3. SOP PROCESS PLANT 4. PORT / TRANSHIPPER 9
Slide 10: Early Construction Works Underway
Early Construction Works Underway Establish key infrastructure to accelerate Mardie development For personal use only Geotechnical Drilling and Surveys Mardie Road 1. Major roads 5 1 2. Accommodation village 3. Trial pond earthworks Trial Pond 3 4 4. Support infrastructure Village – Communications –
Slide 11: Large Scale Trial Pond
Large Scale Trial Pond Test wall designs and construction For personal use only Trial Pond (March 2021 to June 2021) to test INSERT constructability of evaporation pond wall types: 1. Trafficable outer seawall Future Pond 7 2. Non-trafficable pond separation wall 3. Non-trafficable pond dividing wal
Slide 12: Salt and SOP Pilot Plants
Salt and SOP Pilot Plants For personal use only 1. SALT PILOT PLANT (UNDER CONSTRUCTION) 2. MARDIE SALT PLANT (ARTIST’S IMPRESSION) 3. SOP PILOT PLANT (AS PLANNED) 4. MARDIE SOP PLANT (ARTIST’S IMPRESSION) 12
Slide 13: Positive Stakeholder & Approval Progress
Positive Stakeholder & Approval Progress Native title in place; Approvals and tenure on track for 1H 2021 For personal use only Government ▪ Major Project Status (Federal) - one of 20 in Australia ▪ Lead Agency Status (WA) ▪ NAIF loan approval (Federal) - $450M is largest in WA Environment ▪ 3 years
Slide 14: Long Term Stakeholder and Public Benefits
Long Term Stakeholder and Public Benefits 1. BENEFITS TO WA & AUSTRALIA1 For personal use only ▪ Corporate taxes: >$6Bn ▪ State royalties: >$600M ▪ Native title payments >$150M 6. SECONDARY PROCESSING 2. SIGNIFICANT EMPLOYMENT ▪ Australian first to produce OPPORTUNITIES commercial SOP from seawater
Slide 15: Strong Customer Support
Strong Customer Support MOUs covering a significant proportion of initial sales For personal use only ▪ 13 Salt non-binding MOUs signed throughout Asia TARGET MARKETS SALT (4.4MTPA) covering >100% of first 3 years’ salt production China Japan South Korea Taiwan Other ▪ 2 SOP non-binding MOUs signed
Slide 16: Attractive Financials
Attractive Financials Strong financial metrics over a 60 year life1 For personal use only FINANCIALS5 CAPITAL COST (A$780M) ▪ NPV7: A$1,197M ▪ ~A$580M direct capex ▪ ~A$200M indirects and contingency ▪ EBITDA: A$197Mpa (Salt 65%; SOP 35%) ▪ IRR: 15.3% OPERATING COST (60 year average) ▪ Salt A$20.30/
Slide 17: Salt Cost Curve – Contestable Market
Salt Cost Curve1 – Contestable Market2 Mardie will be a low cost supplier of salt into Asia For personal use only ▪ Mardie will be cost competitive with all Australian salt operations – only salt project able to ship with large vessels ▪ When SOP margin treated as a by-product credit, Mardie becomes
Slide 18: Funding Strategy Advanced
Funding Strategy Advanced NAIF loan approved; positive engagement from banks For personal use only Funding Requirement ~$1 billion ($780M capex plus working capital, debt interest and funding costs) ~65% ~35% ▪ NAIF1: Positive BCI Minerals ▪ Equity: Corporate Debt Equity Investment Limited level inv
Slide 19: Next 6-months
Next 6-months Early construction; approvals and funding For personal use only 2021 Q1 Q2 Q3 FID1 EQUITY RAISE EPA POSITIVE COMPLETE REFERRAL TENURE & APPROVALS SECURED BANK DEBT APPROVALS EARLY CONSTRUCTION EARLY WORKS POND COMMENCE CONSTRUCTION COMMENCE 1Final Investment Decision 19
Slide 20: Long Term Project Schedule
Long Term Project Schedule 2021 2022 2023 2024 2025 For personal use only Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 H1 | H2 PONDS CRYSTALLISERS GROW SALT INVENTORY FIRST SALT CONSTRUCTION SALT PLANT ON SHIP START OPERATIONS START GROW SOP INVENTORY SOP PLANT FIRST SOP P
Slide 21: Why Invest in BCI?
Why Invest in BCI? Strong Iron Valley earnings and significant Mardie upside potential For personal use only CURRENT VALUATION MARDIE POTENTIAL ▪ Salt & SOP growth ▪ Low enterprise value markets of ~$110M ▪ Tier 1 – sustainable, ▪ Record Iron Valley large scale, low cost & royalties long life ▪ ~$80
Slide 22: Appendix
For personal use only Appendix
Slide 23: Iron Valley Mine
Iron Valley Mine Strong royalty payments to BCI For personal use only ▪ Quarterly royalty earnings from operating agreement with Mineral Resources Ltd ▪ ~7Mtpa production1; 82Mt Reserves2 ▪ Potential mine life of ~10 years ▪ 50% lump ore; 59% Fe average ▪ Since first production in 2014: – BCI receiv
Slide 24: Mardie – Site Activity
Mardie – Site Activity For personal use only 1. EXPANSION OF EXISTING CAMP FROM 36 TO 80 BEDS 2. ONGOING EVAPORATION TRIALS 3. GEOTECHNICAL TEST PIT FOR FEED 4. RAW SALT HARVESTING FOR SALT PILOT PLANT 24
Slide 25: Board
Board Brian O’Donnell Alwyn Vorster For personal use only NON-EXECUTIVE CHAIRMAN MANAGING DIRECTOR ➢ Banking and investment background ➢ Geology, Mining and MBA degrees ➢ Director, Finance and Investments - ➢ Kumba; Rio Tinto; Iron Ore Holdings Australian Capital Equity (ACE) ➢ Geology; Mining; Mark
Slide 26: Executive Team / Key Personnel
Executive Team / Key Personnel Alwyn Vorster Sam Bennett Tony Chamberlain For personal use only MANAGING DIRECTOR PROJECT DIRECTOR CHIEF OPERATING OFFICER ➢ Geology, Mining and MBA degrees ➢ Civil engineering degree ➢ Chemistry/Metallurgy degrees (PhD) ➢ Kumba; Rio Tinto; Iron Ore Holdings ➢ Fortesc
Slide 27: For personal use only
For personal use only T +61 8 6311 3400 Level 2 GPO Box E info@bciminerals.com.au 1 Altona Street 2811West Perth W www.bciminerals.com.au West Perth WA 6005 WA 6872