Bci Minerals Ltd · ASX:BCI
Bci Minerals — Investor Presentation (February 2022)
26 slides from Bci Minerals's investor presentation, Feb 10, 2022
Slide 1: Mardie Construction Commencement Corporate Presentation
For personal use only MARDIE CONSTRUCTION COMMENCEMENT CORPORATE PRESENTATION 10 FEBRUARY 2022 1
Slide 2: Important Notices
For personal use only 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. This document does not constitute or contain an offer, invitation solicitation or recommendation with r
Slide 3: Overview
For personal use only OVERVIEW MARDIE SALT & ~$495M market cap1 IRON VALLEY POTASH PROJECT ~$334M cash and zero debt2 ROYALTIES BCI TOP SHAREHOLDERS BCI SHARE PRICE vs ASX 300 Australian Capital Equity (Wroxby) 39.5% 120% Australian Super 14.0% 100% 80% New Shares Performance Ryder Capital Limited (
Slide 4: Salt and Potash Markets
For personal use only SALT AND POTASH MARKETS 4
Slide 5: Salt and SOP: Strong growth in Mardie's target markets
SALT AND SOP Strong growth in Mardie’s target markets For personal use only ~35% SALT ASIAN DEMAND >50Mt additional annual demand over ▪ >10,000 products derived from salt (PVC, next decade1 – (growing population, alumina, glass, paper, water purification) requiring more industrial and consumer ▪ As
Slide 6: Salt and SOP Price Strength
SALT AND SOP PRICE STRENGTH Salt and SOP prices driven by strong demand and limited new supply For personal use only Australian Imported Salt into China1,2 SOP Price6 Spot Price 80 US$70/t 900 (CNSIG) 70 800 US$/t, CFR US$/t, FOB 60 MARDIE 60-year average 700 50 40 600 MARDIE 60-year average +50% 30
Slide 7: Mardie Project
For personal use only MARDIE PROJECT 7
Slide 8: 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 9: Mardie Scale Will Be Globally Significant
MARDIE SCALE WILL BE GLOBALLY SIGNIFICANT Top 3 Scale global salt project1 For personal use only 1Roskill (November 2020) 9 9
Slide 10: Mardie Project Design
MARDIE PROJECT DESIGN Largest salt project in Australia – fully integrated with port For personal use only SITE CONDITIONS ▪ >100km2 clay soils – ideal pond floor Jetty ▪ High net evaporation rates (~10mm/day) Salt Plant PRODUCTION ▪ 9 evaporation ponds SOP 9 Plant ▪ 42 salt and 20 SOP crystallisers
Slide 11: Early Construction Progress
EARLY CONSTRUCTION PROGRESS >$60M of enabling construction works in last 12-months to de-risk Project For personal use only Seawater intake structure Accommodation village Salt pilot plant 11
Slide 12: Tenders to Total ~$500M in FY22
TENDERS TO TOTAL ~$500M IN FY22 >60% of capital cost to be delivered via fixed price contracting model1 For personal use only Main seawater pump station Salt wash plant Port / transhipper SOP process plant 1Planned lump sum packages include those awarded under Engineering, Procurement and Constructi
Slide 13: Strong Financial Metrics
STRONG FINANCIAL METRICS Annuity-style cash flow >60 years1 with material upside For personal use only SALT SOP 5.35Mtpa 140Ktpa FINANCIALS4 Volume NPV: A$1.56B ▪ NPV: ~$1.6B ~60% ▪ EBITDA: $256Mpa (Salt 72%; SOP 28%) Revenue2 (A$/t FOB) $55 Margin $819 EBITDA: A$256Mpa ▪ 60-year cumulative cashflow
Slide 14: Salt Cost Curve – Contestable Market
SALT COST CURVE – CONTESTABLE MARKET Mardie will be a low-cost supplier of salt into contestable1 Asian market For personal use only 60 Mardie 50 Salt Only ▪ Mexican solar salt and Chinese Mardie rock salt the marginal cost Chinese Rock 3rd Tier with SOP Other suppliers to most Asian Chile 40 CIF eq
Slide 15: Salt and SOP Market Strategies
SALT AND SOP MARKET STRATEGIES Strong customer interest – MOUs to be converted to offtake contracts For personal use only SALT SOP ▪ 2-year contracts typical; SALT ▪ 2-5-year tonnage contracts SOP price settlements with TARGET MARKETS with 1-2-year pricing typical – TARGET MARKETS individual custome
Slide 16: Funding for Development and Ramp-Up
FUNDING FOR DEVELOPMENT AND RAMP-UP Debt and equity funding secured For personal use only $740M1 38% $460M BCI Minerals Limited ▪ $740M of Mardie NAIF Project debt1 $490M Placement secured; includes $240M $600M Government 62% funding support Total funding up to EFA ~$1.2 billion (NAIF & EFA) SPP $11
Slide 17: Project Schedule
For personal use only PROJECT SCHEDULE 2022 2023 2024 2025 2026 Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 H1 | H2 H1 | H2 OFFTAKE CONTRACTS NEGOTIATED EQUITY CONTRIBUTION DEBT PERIOD PONDS CRYSTALLISERS MAIN CONSTRUCTION GROW SALT INVENTORY START FIRST SALT SALT PLANT ON SHIP GROW SOP IN
Slide 18: Positive Stakeholder and Approval Progress
POSITIVE STAKEHOLDER AND APPROVAL PROGRESS Native title agreements in place; Approvals and tenure near complete For personal use only GOVERNMENT ✓ NAIF loan of $490M approved1 – largest in WA ✓ EFA loan of $110M approved1 ENVIRONMENT ✓ State and Federal Government approve project implementation1 ▪ S
Slide 19: Sustainability Focus
SUSTAINABILITY FOCUS An environmentally friendly multi-generational project For personal use only ▪ Inexhaustible seawater resource ▪ 99% solar and wind energy1 ▪ Target >50% renewables within 5-years ▪ SOP fertiliser from salt waste ▪ No mine pits, no waste dumps, no dewatering ▪ Pilbara office; lo
Slide 20: Mardie Will Become a Tier One Project
MARDIE WILL BECOME A TIER ONE PROJECT Large scale, low-cost and long operating life For personal use only ROBUST MARKETS; QUALITY LARGE SCALE; LOW COST; STRONG STAKEHOLDER SUSTAINABLE SUPPORT PRODUCTS MULTI-GENERATIONAL STRONG CASHFLOWS ▪ High purity salt ▪ Largest Australian salt ▪ 60+ year life1 ▪
Slide 21: BCI Investment Case
BCI INVESTMENT CASE Steady Capital Growth; Significant Mardie upside potential For personal use only Up Up BCI SHARE BCI 150% 735% PRICE ($) CASH ($M) $0.41 $3342 $0.30 Feb 2022 $78.5 Feb 2022 Feb 2021 Feb 2021 $0.165 $40 Feb 2020 Feb 2020 BCI MARKET Up CAP ($M) 650% $4951 150% return on investment
Slide 22: Appendices
For personal use only APPENDICES 22
Slide 23: Funding Provided by Iron Ore Valley Royalty
FUNDING PROVIDED BY IRON ORE VALLEY ROYALTY Royalty payments provide funding support for Mardie construction For personal use only ▪ Quarterly royalty earnings from operating agreement with Mineral Resources Ltd (ASX: MIN) ▪ Iron Valley royalty earnings forecast to provide additional funding to firs
Slide 24: Mardie Production Process
MARDIE PRODUCTION PROCESS1 99% Sun and Wind Energy For personal use only 5. Salt 4. Salt Wash Stockpiles Plant C. SOP Storage Shed 7. Transhipper 6. 2.4km (12,000t) Jetty B. SOP Process Plant 8. Ocean Going Vessel A. KTMS2 (up to Capesize) Crystallisers (5km2) 9. Export 3b. Secondary Salt Crystallis
Slide 25: BCI Board of Directors
BCI BOARD OF DIRECTORS Brian O’Donnell Alwyn Vorster Michael Blakiston For personal use only NON-EXECUTIVE CHAIRMAN MANAGING DIRECTOR NON-EXECUTIVE DIRECTOR ▪ Banking and investment background ▪ Geology, Mineral Economics, MBA ▪ Legal and mining business ▪ Kumba; Rio Tinto; Iron Ore background ▪ Dir
Slide 26: BCI Executive Team / Key Project Personnel
BCI EXECUTIVE TEAM / KEY PROJECT PERSONNEL Alwyn Vorster Kerryl Bradshaw Sam Bennett MANAGING DIRECTOR CHIEF FINANCIAL OFFICER PROJECT DIRECTOR For personal use only ▪ Geology, Mining and MBA degrees ▪ Chartered Accountant ▪ Civil engineering degree ▪ Kumba; Rio Tinto; Iron Ore Holdings ▪ Microsoft