Black Rock Mining Limited · ASX:BKT
Black Rock Mining — Noosa Mining Conference 2023
26 slides from Black Rock Mining's conference presentation, Nov 15, 2023
Slide 1: Simply Better Graphite: Investor Update
Black Rock Mining Mahenge Graphite Mine Simply Better Graphite: Investor Update For personal use only Noosa Mining Conference November 2023
Slide 2: Important notices
Important notices This presentation has been prepared by Black Rock Mining Limited (Black Rock or the Company) and has been approved by the Board of Black Rock. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in su
Slide 3: Black Rock at a glance and capital structure
Black Rock at a glance Capital structure ASX ticker BKT Premium graphite player Share price (10 Nov 2023) $0.115 Shares on issue 1,097.1 M Developing the Mahenge graphite project in Tanzania: For personal use only - Tier 1 scale (2nd largest reserve globally) Options and performance rights 56.2 M -
Slide 4: Energy minerals increasingly attractive
Energy Minerals Several new energy components at “hockey stick” moment (see charts below) increasingly Graphite has a strong demand outlook attractive But graphite is also opaque and dominated by China which For personal use only makes new supply difficult to bring into production A very sim
Slide 5: Graphite supply chain for batteries is more dependent on China
Li-ion battery EXTRACTION PROCESSING ANODE/CATHODE PRODUCTION BATTERY CELL MANUFACTUARING raw materials EU, 4% Other, 17% US, 10% supply chain GRAPHITE Other, China, 73% EU, 6% China, 73% For personal use only 23% Other, 11% China, China, 99% 83% by country COBALT Other, 99% China, 1% EU, 17% Other,
Slide 6: POSCO's anode growth plans
POSCO’s anode growth plans POSCO’s ktpa 400 370 anode growth 35 4.5x growth 300 218 153 plans 6 200 For personal use only 58 82 100 2 182 154 40 In 2022, POSCO was 0 40 the largest anode 2022 2026 2030 Natural graphite anode Synthetic graphite anode Silicon anode producer outside China Source: POSCO
Slide 7: Graphite playbook: customer-driven sequential development
Graphite MAJORITY OF PRE-CONSTRUCTION INVESTMENT PILOT PLANT QUALIFICATION playbook CUSTOMERS & OFF-TAKES GOVERNMENT Free-Carried Interest For personal use only Shareholding Agreement Sequential EPC development that is customer driven DRILLING SOCIAL LICENCE STUDY WORK MINING LICENCE & FINANCING APR
Slide 8: Latest graphite prices by Mahenge product
Graphite pricing by Mahenge product (last 12 months) Latest US$/t 2,000 1,750 graphite 1,500 1,250 prices For personal use only 1,000 750 Current graphite 500 10/11/22 10/02/23 10/05/23 10/08/23 10/11/23 prices support healthy -195 +195 +895 +595 +3295 Split in Mahenge basket: 32% 9% 36% 18% 5% pote
Slide 9: A snapshot of the Mahenge Graphite Project
A snapshot of the Mahenge Graphite Project Simple open pit mine development with outstanding forecast returns1 For personal use only US$1.4B 36% 89ktpa NPV10 nom post tax, post 16% FC Post-tax, ungeared IRR Module 1 production* (1Mtpa) US$225m 347ktpa 95 – 99%+ TGC purity 59% +80 mesh, 41% -80 Modul
Slide 10: Why Mahenge?
Julius Nyerere Hydropower Project (2115MW) Why Mahenge? For personal use only Unique competitive Large container port in Dar es Salaam advantages driven by geology and substantial existing infrastructure Tazara Railway Line Geology Substantial existing infrastructure ★ Mahenge’s 69.6mt Reserve makes
Slide 11: Forecast first quartile costs
Forecast first quartile costs 2024 Adjusted C1 Cost Curve* For personal use only First quartile assets are higher margin and more robust through the cycle Sources: Benchmark Mineral Intelligence Flake Graphite Report Q2 CY22, Black Rock Mining, Company Data C1 Cash Costs are defined as Cash Costs ex
Slide 12: ESG focused ecosystem
ESG focused ecosystem For personal use only A new greener source of graphite with best Battery Large Flake practice whole of Environmental and Social Impact supply chain strategy Tanzanian Assessment Customer Markets Government Permitted Robust Compliance Simple Processing Three stage polishing
Slide 13: Development timetable
Development DBSA approval for part of the Project Debt, up to US$59.6m1 timetable Aiming for approval from other lenders near term For personal use only Aiming to have debt finance in place for Black Rock is targeting Project Debt of up to 50% of Initial Capex2 Module 1 soon. Construction pe
Slide 14: Strong near term news flow
Strong near Black Rock sees a number of potential de-risking milestones due near term: term news Potential POSCO milestones: Signing full-form offtake agreement flow For personal use only Signing full-form prepay agreement for US$10m Potential for POSCO to take up it’s right to a BKT boa
Slide 15: BKT ready to deliver
BKT ready to deliver Compelling Project Metrics Tier 1 Scale For personal use only 1st Quartile Costs The significant Tier 1 (low-cost green power, low strip) scale Mahenge Higher proportion of large flake Higher purity concentrates graphite mine into an Strong macro tailwind undersupplied and growi
Slide 16: For personal use only
Richard Crookes John de Vries Chairman For personal use only E: richard.crookes@blackrockmining.com.au Managing Director and CEO Steuart McIntyre T: +61 438 356 590 GM Corporate Development E: jdv@blackrockmining.com.au T: +61 413 555 609 A: Level 1, 1 Walker Avenue E: sm@blackrockmining.com.au West
Slide 17: Appendix
For personal use only Appendix
Slide 18: Black Rock team
Black Rock team Board of Directors Management Richard Crookes, Non-exec Chairman: Geologist with over 30 years Steuart McIntyre, GM Corporate Development: Mining analyst with over 15 executive experience in the resources and finance industries; raised capital years experience. Previous roles include
Slide 19: Strategic Alliance with POSCO
Strategic POSCO is Black Rock’s major shareholder with a stake of 11.5% Alliance with POSCO is Black Rock’s cornerstone offtake partner: Module 1: POSCO For personal use only Binding life-of-mine offtake agreement for fines1 (32% of volume) MOU for 6ktpa of large flake2 (7% of volume) Mo
Slide 20: Tanzania: an improving jurisdiction for investment
Tanzania: Moody’s recently upgraded Tanzania to a B2 Positive due to reduced political risk and structural reform agenda 1 An improving jurisdiction for Equinor/Shell/Exxon For personal use only Mobil recently struck a deal for the development of an LNG terminal in Tanzania expected to cost tens
Slide 21: Graphite in batteries
Graphite in Graphite is the dominant anode material, regardless of battery chemistry batteries LFP 17% NMC 111 15% NMC 532 16% NMC 811 16% NCA 11% For personal use only There is more 29% 43% graphite in Li-ion Cathode (+) 68% 73% batteries by volume 83% 29% 24% than any other 27% 8% material, regard
Slide 22: More natural graphite in batteries
More natural Growing importance of natural graphite in batteries graphite in 100% batteries For personal use only 75% 41% 65% 50% The use of natural 25% 50% graphite in batteries 30% has potential to grow 0% from 30% of the 2023 2030 Natural graphite Synthetic graphite Silicon LTO Other anode to 50%
Slide 23: Battery demand for graphite at a tipping point?
Could battery demand start to drive graphite pricing from 2023? Battery demand for graphite at a For personal use only tipping point? Battery demand ~60% of lithium market Battery demand ~60% of graphite market Battery demand for graphite expected to mesh hit ~60% in 2023 Syrah commissions Battery d
Slide 24: Working towards an IRA-compliant supply chain
Working The Inflation Reduction Act (IRA) in the US provides a Clean Vehicle Credit under Section 30D for qualifying vehicles for up to US$7,500 per vehicle 2 1 towards an Starting in 2024, qualifying vehicles cannot have battery components IRA-compliant Starting in 2025, qualifying vehicles’ ba
Slide 25: Graphite uses
Graphite Price increases with flake size uses For personal use only Black Rock has a diversified product SMALL FLAKE (FINES) LARGE FLAKE JUMBO FLAKE mix with 60% Lithium-Ion Batteries Flame Retardants Flame Retardants exposure to the high Paint & Coatings Refractories Gaskets & Seals margin large fl
Slide 26: Offtake agreements
Offtake Mahenge Offtake for Module 1 (89ktpa) agreements 100.0 90.0 For personal use only 9 9 9 9 9 ~89% of Mahenge’s 80.0 Module 1 production 70.0 15 15 15 is under binding 60.0 45 45 offtake, option or 50.0 30 30 30 MOU 40.0 30.0 6 6 6 6 6 20.0 28.5 28.5 28.5 28.5 28.5 10.0 0.0 Year 1 Year 2 Year