Slide 1: Building an Industrial Minerals & Iron Ore Business
For personal use only Building an Industrial Minerals & Iron Ore Business AMEC Convention – Perth 13 June 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$60M (at $0.15) ▪ A$17.5M1 cash and zero debt ▪ Royalty earnings from the 6-8Mtpa Iron Valley Mine ▪ BCI is building an Industrial Minerals & Iron Ore business: – Finalise f
Slide 3: Corporate Information
Corporate Information For personal use only Capital Structure Shareholding and Trading Ordinary Shares 395M Wroxby Pty Ltd 27.7% Share Price (8-Jun-18) $0.14 Top 20 Shareholders ~50% Market Capitalisation $55.3M Number of Shareholders ~7,500 Cash (31-Mar-18) $17.5M Ave Daily Volume (Last 6 Months) ~
Slide 4: Delivering on Key Project Value Drivers
Delivering on Key Project Value Drivers For personal use only Mardie: positive PFS for Salt and SOP ✓ Kumina: positive iron ore drilling results confirm presence of >60% Fe mineralisation ✓ Kumina: maiden JORC Mineral Resource Jun-18 Mardie & Buckland: JVs / funding solutions Nov-18 Iron Valley: MIN
Slide 5: Mardie Salt & SOP Project
For personal use only Mardie Salt & SOP Project
Slide 6: Why Salt and SOP?
Why Salt and SOP? Both Salt and SOP have an attractive long term demand outlook For personal use only ▪ Strong demand growth forecast in 58Mtpa 26Mtpa Asian chemical 200 New industry Asian 17Mtpa Demand ▪ ~26 Mt/a supply by 2027 15Mtpa NaCl Mtpa gap possible by 150 Supply New Salt (Salt) 2027 Capaci
Slide 7: Mardie Salt & SOP – Unique Opportunity
Mardie Salt & SOP – Unique Opportunity ▪ Located in Australia’s key salt production region For personal use only Mardie (BCI) ▪ Ideal site for a large-scale solar evaporation project ▪ Positive PFS completed in Jun-181 ▪ Two product strategy: Port Hedland Onslow (Dampier Salt) – 3.5Mtpa high purity
Slide 8: Highly Competitive Operating Costs
Highly Competitive Operating Costs For personal use only Salt Cost Curve – High Purity Supply into Asia SOP Cost Curve 45 600 40 ESSA 500 China Cash Costs (US$/t CIF Qingdao) (Mannheim) Cash Costs (CIF Qingdao) 35 Onslow & Aus Peer 4 Lake Mardie Shark Bay Aus Peer 3 30 Port 400 Macleod Aus Peer 2 Ma
Slide 9: Attractive PFS Economics
Attractive PFS Economics For personal use only Key Metrics1 Project Cashflows (A$M) 250 Salt SOP Production 3.5Mtpa 75Ktpa 200 Operating Life2 >50 years >50 years 150 Capex A$248M A$87M 100 US$30/t US$500/t Price (FOB) 50 A$40/t A$667/t Opex (FOB) A$20/t A$250/t - EBITDA/t A$20/t A$417/t (50) EBITDA
Slide 10: Mardie Conclusion
Mardie Conclusion Mardie is an attractive and relatively unique project development opportunity For personal use only ✓ Project in stable investment country close to Asian growth markets ✓ Ideal site location and conditions for a solar evaporation project ✓ PFS confirmed feasibility of high purity S
Slide 11: Iron Ore
For personal use only Iron Ore
Slide 12: 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) (FY17 BCI EBITDA of ~$16M) ▪ 6-8Mtpa iron ore operation; 50% lump production; potential mine life of ~15 years ▪ Average 12-month grades: Lump 59.9% Fe; Fines
Slide 13: Buckland Iron Ore
Buckland Iron Ore ▪ Iron ore mine/s, road and port development For personal use only 15-20Mtpa project in the West Pilbara – Bungaroo South: FS completed and fully approved for 8Mtpa operation1 – Kumina: exploration aiming to deliver 7-12Mtpa of production potential ▪ Aspirational development scenar
Slide 14: Kumina – Transforming Buckland
Kumina – Transforming Buckland Potential to underpin attractive 15-20Mtpa Buckland business case, or to be For personal use only developed into a stand-alone higher grade mine ▪ Large (480km2) tenement package with zero historical exploration information, acquired in late 2017 ▪ Multiple channel iro
Slide 15: Kumina – Drilling Results
Kumina – Drilling Results1 ▪ Kumina A: For personal use only Kumina E Cross Section – CID deposit, mineralisation from surface – Typical CID grades (~58% Fe) with impurity levels complementary to Bungaroo South – potential blending source ▪ Kumina E: – BID, with associated high-grade DID – Mineralis
Slide 16: Other Projects
Other Projects Carnegie SOP Joint Venture (30%1) – Progress For personal use only ▪ Kalium Lakes as JV partner and manager ▪ Scoping Study completion targeted by mid-18 Exploration (100% BCI) – Add value & monetise ▪ Black Hills: base metals ▪ Marble Bar: gold & lithium ▪ Peak Hill: gold & base meta
Slide 17: Attractive Value Proposition with Upside
Attractive Value Proposition with Upside For personal use only Mardie Salt & SOP 3.5Mtpa Salt & ▪ Positive PFS a catalyst to commence DFS and secure credible JV partners 75ktpa SOP or pursue spin-out (100%) Buckland Iron Ore ▪ High grade ore discovery at Kumina will transform product mix and project
Slide 18: 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 19: 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