Slide 1: FY15 Financial Results Presentation
For personal use only FY15 Financial Results Presentation Morgan Ball (MD) and Chris Hunt (CFO) ASX:BCI 26 Aug ‘15
Slide 2: FY15 Summary
FY15 SUMMARY For personal use only Full-year NJV sales of 5.26M wmt Nullagine Joint Solid performance in last 7 months of year, with 3.62M wmt shipped at C1 cash costs of A$47/wmt Venture (“NJV”) Cost saving initiatives have lowered cost base by A$7-10/wmt compared to FY14, or up to A$50M in s
Slide 3: FY15 Summary (Continued)
FY15 SUMMARY (CONTINUED) For personal use only Full-year results affected by NJV clay-related challenges in the first half and declining iron ore prices, particularly in the second half Revenue of A$281.2M, EBITDA of A$0.1M and net loss after tax of A$158.5M Non-cash impairment of A$70.7M (pre
Slide 4: FY15 Key Metrics
FY15 KEY METRICS For personal use only 5 months to 7 months to Year ended Year ended Item 30-Nov-14 30-Jun-15 30-Jun-15 30-Jun-144 Ave 62% Fe CFR price (US$/dmt) 85 62 72 123 Ave capesize freight rate to China (US$/wmt) 8.3 4.8 6.3 9.3 Ave exchange rate (AUD:USD) 0.9043 0.7890 0.8371 0.9179 NJV sale
Slide 5: Operational Performance
OPERATIONAL PERFORMANCE For personal use only NJV Ore Shipped (M wmt) Iron Valley Ore Shipped (M dmt) 6 6 5 5 4 4 3 3 2 2 1 1 Not in production 0 0 FY12 FY13 FY14 FY15 FY14 FY15 NJV C1 Cash Costs (A$/wmt, FOB) 60 50 40 30 20 10 0 FY12 FY13 FY14 FY15 Note: C1 cash costs exclude royalties, marketing a
Slide 6: Financial Performance
FINANCIAL PERFORMANCE For personal use only Revenue (A$M) EBITDA (A$M) 500 160 400 120 300 80 200 40 100 0 0 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 Underlying NPAT (A$M) Cash and Debt (A$M) 100 200 Cash Debt 75 150 50 25 100 0 50 -25 -50 0 FY12 FY13 FY14 FY15 30-Jun-12 30-Jun-13 30-Jun-14 30-Jun-15
Slide 7: EBITDA Variance (A$M)
EBITDA VARIANCE (A$M) For personal use only Volume variance Price variance 200 149.9 (32.8) 150 21.7 100 50 4.1 (6.4) 10.9 (1.4) 0.1 - (174.3) 28.4 (50) FY14 EBITDA Revenue Costs Revenue - Costs - Costs - Iron Valley IOH Other FY15 EBITDA Price and FX Price Linked Operational Transaction Costs Note:
Slide 8: Cash Balance Movement (A$M)
CASH BALANCE MOVEMENT (A$M) For personal use only 200 180 158.9 (28.5) 160 24.7 (59.3) 140 (4.3) (11.3) 120 100 (18.7) 80 6.2 67.7 60 40 20 - Cash at Pre-tax Tax Capex Net Cash From Debt Dividends FX Impact Cash at 30-Jun-14 Operating Cash Acquisitions / Repayments on Cash 30-Jun-15 Flow Divestments
Slide 9: FY16 Guidance
FY16 GUIDANCE For personal use only NJV Iron Valley NJV sales of 4.9-5.3M wmt (BCI share 3.7-4.0M wmt) Continued as a DSO, truck haulage operation NJV C1 cash costs of A$42-45/wmt (FOB) BC Iron EBITDA of A$5-14M2 BCI all-in cash costs1 of A$48-54/wmt (FOB) Other Capital and E&E NJV capex
Slide 10: BC Iron Overview
For personal use only BC Iron Overview Nullagine BC Iron Overview Iron Valley Buckland 10
Slide 11: Corporate Overview
CORPORATE OVERVIEW For personal use only Capital Structure Share Price vs Iron Ore Price 6.00 250 Ordinary Shares 196.2m Iron Ore Price (US$/t) 5.00 Share Price (at 25-Aug-15) $0.23 200 Share Price (A$) 4.00 Market Capitalisation $45.1m 150 Cash (at 30-Jun-15) $67.7m 3.00 100 Debt (at 30-Jun-15) $6.
Slide 12: BC Iron Key Assets
For personal use only BC IRON KEY ASSETS 12
Slide 13: BC Iron Reserves / Resources
BC IRON RESERVES / RESOURCES For personal use only Reserves (Equity Basis)1 Tonnes Fe CaFe SiO2 Al2O3 P LOI Project (Mt) (%) (%) (%) (%) (%) (%) Nullagine2 19.5 56.3 64.2 3.3 2.2 0.01 12.3 Buckland 134.3 57.6 62.6 6.5 2.4 0.15 8.0 Iron Valley 129.9 58.9 63.4 4.8 3.0 0.17 7.1 Total 283.7 58.1 63.1 5.
Slide 14: NJV – Overview
NJV – OVERVIEW 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 manager of the NJV FMG provides rail & port and marketing services Capacity to export
Slide 15: NJV – Operations
NJV – OPERATIONS For personal use only Contract mining utilising BCI-owned Vermeer surface miners Mine plan has four areas – currently mining at Outcamp and Warrigal Mining Mine life of ~4 years, with average remaining LOM strip ratio of 1.6:1 Processing Dry crushing & screening process Tw
Slide 16: Iron Valley – Overview
IRON VALLEY – OVERVIEW For personal use only Operating mine that is generating cash flows via iron ore sale agreement with MIN. Iron ore sale agreement with Mineral Resources Limited (MIN) BC Iron retains tenement ownership and statutory obligations (incl. government royalties) MIN operates th
Slide 17: Buckland – Overview
BUCKLAND – OVERVIEW For personal use only Development project with an 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 (“FS”) completed by IOH in Jun
Slide 18: BC Iron Asset Outlook
BC IRON ASSET OUTLOOK For personal use only FY16 sales guidance of 4.9-5.3M wmt (100% basis) NJV C1 cash costs of A$42-45/wmt BC Iron all-in cash costs of A$48-54/wmt Long life asset currently being operated by MIN as a DSO, truck haulage operation FY16 EBITDA of A$5-14M (based on range of
Slide 19: Appendices
For personal use only APPENDICES 19
Slide 20: NJV Reserves & Resources
NJV RESERVES & RESOURCES For personal use only CID Mineral Resource at 30 June 2015 (BC Iron 75%, FMG 25%) Classification Mt Fe% CaFe% Al2O3% SiO2% P% S% LOI Measured 10.2 52.7 60.1 4.5 5.1 0.017 0.012 12.4 Indicated 34.1 54.2 62.0 3.2 4.3 0.017 0.011 12.5 Inferred 47.6 51.9 58.6 5.5 6.7 0.023 0.019
Slide 21: Iron Valley Reserves & Resources
IRON VALLEY RESERVES & RESOURCES For personal use only Mineral Resource at 30 June 2015 (100% BC Iron, subject to iron ore sale agreement with MIN) Classification Cut-off (% Fe) Tonnes (Mt) Fe (%) CaFe (%) SiO2 (%) Al203 (%) P (%) LOI (%) Measured 50 34.9 59.4 63.8 4.7 2.8 0.17 6.9 Indicated 50 172.
Slide 22: Buckland Reserves & Resources
BUCKLAND RESERVES & RESOURCES For personal use only Mineral Resource at 30 June 2015 (100% BC Iron) Deposit Classification Cut-off (%Fe) Tonnes (Mt) Fe (%) CaFe (%) SiO2 (%) Al2O3 (%) P (%) LOI (%) Bungaroo Measured 50 30.9 57.4 62.1 6.7 3.0 0.15 7.6 South Indicated 50 214.9 56.6 61.6 7.8 2.4 0.15 8
Slide 23: Important Notices
IMPORTANT NOTICES For personal use only Ore Reserves and Mineral Resources Disclosures The information in this announcement that relates to Mineral Resources and Ore Reserves at the Nullagine Joint Venture is extracted from the ASX announcement entitled NJV Ore Reserves and Mineral Resources dated 2
Slide 24: 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