Black Iron Inc. · TSX:BKI
Black Iron — Investor Presentation (June 2011)
20 slides from Black Iron's investor presentation, June 2011
Slide 1: An Emerging Iron Ore Company
An Emerging Iron Ore Company Corporate Presentation June 2011 TSX: BKI
Slide 2: Disclaimer
Disclaimer Forward Looking Statement TSX: BKI This Presentation contains ‘‘forward-looking information’’ which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its subsidiaries (collectively, the ‘‘Company’’) and its mine
Slide 3: Solid Fundamentals for Success
Solid Fundamentals for Success Shymanivske Project: A High-Quality Development Opportunity TSX: BKI Project surrounded by 7 other iron ore mines in one of the world’s Location Krivoy Rog, Ukraine major iron ore districts • Close to target markets: W.Europe, Turkey, Russia, Asia and Middle East Large
Slide 4: Black Iron at a Glance
Black Iron at a Glance An Emerging Iron Ore Company TSX: BKI • Company formed to acquire property in one of world’s major iron ore districts − Acquired 100% interest in the Shymanivske and Zelenivske projects located in the Krivoy Rog Iron Basin in central Ukraine • Extensive past exploration by age
Slide 5: Key Management and Board of Directors
Key Management and Board of Directors Strong Industry and Relevant Experience TSX: BKI Matt Simpson Recently left Rio Tinto where served as General Manager, Mining for the Iron Ore Company of Canada President, CEO and Director Previously worked for Hatch consulting, designing and building metall
Slide 6: Capital Structure
Capital Structure Attractive Valuation TSX: BKI Prior & Current Financing Details Capital Structure • Company has recently filed a final Shares Outstanding prospectus in all provinces of Canada, (Basic) 139.4 million excluding Quebec, in connection with an Initial Public Offering (IPO) Warrants Outs
Slide 7: Forbes & Manhattan Involvement
Proven Track Record Consolidated Thompson’s Bloom Lake Iron Mine TSX: BKI • World class 8Mtpa iron ore concentrate Forbes & Manhattan Involvement mine in Quebec • Advanced from exploration stage through development to construction Recently acquired − 8 mtpa capacity (66% Fe concentrate) for $4.9 exp
Slide 8: Iron Ore Market
Iron Ore Market Strong Global Demand Growth for Iron Ore TSX: BKI • China has limited domestic supply − Chinese firms have invested ~US$12bn into projects and signed ~US$82bn worth of offtake agreements since 2001 Seaborne Iron Ore Demand Growth Iron Ore Fines Price 1600 2009-2013E CAGR 250 Pellet f
Slide 9: Ukraine: A Mining Friendly Country
Ukraine: A Mining Friendly Country Strong Local and National Support TSX: BKI • Socially stable democratic republic • Recently announced desire to sign “Association Agreement” as first step to joining European Union • Strong economic growth − Expected 3.3% GDP growth in 2010 and expected to increase
Slide 10: Globally Significant Iron Ore District
Globally Significant Iron Ore District Ukraine: 6th largest iron ore producer & 4th largest reserve base TSX: BKI • Black Iron’s projects are located in the heart of 2010E Iron Ore Production Ukraine’s iron ore belt 1000 900 – 35km from city of 750,000 people 800 Only 3% of world production • Iron o
Slide 11: World Class Neighbours
World Class Neighbours Adjacent to Large ArcelorMittal Operation TSX: BKI • ArcelorMittal purchased Kryviy Rih integrated steelmaking complex in 2005 for US$4.8 billion • Located adjacent to Black Iron’s projects • 2009 production of 7.07 million tonnes iron ore concentrate • Iron ore resource of 1.
Slide 12: Prospective Iron Ore Deposit
Prospective Iron Ore Deposit Significant Regional Iron Ore Production TSX: BKI ArcelorMittal’s Kryviy Rih Iron Ore Complex • Primarily magnetite with some Resource: 1.8Bt hematite • Two mining and exploration permits Black Iron’s covering 5.92 km2 Shymanivske Project − Mining permit at Shymanivske,
Slide 13: Shymanivske Has A Large Resource Base
Shymanivske Has A Large Resource Base Major Iron Deposit with Potential to Grow TSX: BKI • Banded iron formation consisting of 4 iron-rich layers, with the resource comprising 3 of these layers − Layer’s thicknesses range from 40-80 m • The resource is defined by ~37,000 metres of historical drillin
Slide 14: Potential Resource Extension at Shymanivske
Potential Resource Extension at Shymanivske Ground Gravity Shows Iron Ore Mineralization at North End TSX: BKI Potential resource upside to • Ground gravity and geophysics survey be drilled shows potential extension of iron ore mineralization at North end of property • This area has not been include
Slide 15: Excellent Infrastructure
Excellent Infrastructure Key to a Successful Iron Ore Project TSX: BKI • Paved roads to site, located 35km away from the major city of Krivoy Rog which has a skilled work force • Surplus of low-cost electricity readily accessible from high voltage power lines that run beside property • 2 km from mai
Slide 16: Strategic Global Location
Strategic Global Location Close Proximity to Target Markets with Abundant Port and Rail Access TSX: BKI • Rail access to Western Europe and port access via Black Sea to global seaborne iron ore markets − Target markets include Asia, Western Europe, Turkey, and Middle East • Several dry bulk tonnage
Slide 17: Key Milestones for Value Creation
Key Milestones for Value Creation Project Development Timeline TSX: BKI 2011 2012 Future H1 H2 H1 H2 Drill metallurgical holes Scoping Study/PEA Definition Drilling Feasibility Study Environmental Studies Permitting Detailed Engineering Construction Production 17
Slide 18: Public Comparable Companies
Public Comparable Companies Iron Ore Exploration/Development TSX: BKI Market Data as at 31-May-11 Fe Contained Resource & Reserve (mm t) EV / Fe R&R (C$/t) Adj. EV / Capacity Price Market Cap Enterprise Value 2P + Total Total Total Funding & Company Primary Asset Location (US$) (US$ mm) (US$ mm) M&I
Slide 19: Solid Fundamentals for Success
Solid Fundamentals for Success Shymanivske Project: A High-Quality Development Opportunity TSX: BKI Project surrounded by 7 other iron ore mines in one of the world’s Location Krivoy Rog, Ukraine major iron ore districts • Close to target markets: W.Europe, Turkey, Russia, Asia and Middle East Large
Slide 20: Contact Information
CONTACT INFORMATION 65 Queen Street West Suite 805, P.O. Box 71 Toronto, Ontario, Canada M5H 2M5 www.blackiron.com Investor Relations Investor Cubed Inc. Telephone: +1 (647) 258-3311 Toll-Free: +1 (888) 258-3323 Fax: +1 (416) 363-7977 TSX: BKI info@blackiron.com 20