Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — Macquarie WA Forum 2013
25 slides from Bci Minerals's conference presentation, Oct 15, 2013
Slide 1: Cover letter: amended presentation to ASX
15 October 2013 For personal use only The Manager Company Announcements Office Australian Securities Exchange Dear Sir, BC Iron Limited (ASX:BCI) Following is an amended presentation on BC Iron Limited that will be delivered at the Macquarie WA Forum to be held in Perth on 15 to 17 October 2013. Tim
Slide 2: Macquarie WA Forum
For personal use only Macquarie WA Forum Morgan Ball – Managing Director 1 ASX:BCI 15 Oct ‘13
Slide 3: Attractive Investment Proposition
ATTRACTIVE INVESTMENT PROPOSITION For personal use only Scale & liquidity: ASX 300 member, liquidity significantly enhanced post Dec 12 TSR focus: Outperformed peers on TSR basis during FY13 Capital Management: Robust balance sheet, conservative gearing, sustainable franked dividends At targ
Slide 4: Corporate Overview
CORPORATE OVERVIEW For personal use only Capital Structure Share Price and Volume Ordinary Shares 123.6m $5.00 5 Share Price (at 14-Oct-13) $4.64 $4.50 4 Market Capitalisation $574m Volume (m) $4.00 Share Price 3 Cash (at 30-Jun-13) $139m $3.50 2 Debt (at 30-Jun-13) $106m $3.00 Enterprise Value $541
Slide 5: Peer Comparison
PEER COMPARISON For personal use only Total Shareholder Return – 1 Jul 12 to Current Why has BC Iron outperformed its peers? 106% Quality project with low capital intensity 63% Low risk 5% Continued strong operational performance (3%) Repeated delivery against guidance (50%) (59%) (72%) St
Slide 6: Nullagine Joint Venture (NJV)
NULLAGINE JOINT VENTURE (NJV) For personal use only A producing DSO project with access to world-class infrastructure. Unincorporated joint venture – 75% BC Iron, 25% FMG BC Iron is the Operator and Manager of the NJV FMG provides rail & port services (through its wholly-owned infrastructure s
Slide 7: Mining – Overview
MINING – OVERVIEW For personal use only A fully contracted operation with low capital intensity. Contract mining by WATPAC, utilising Wirtgen and Vermeer surface miners Mine plan comprises four major deposits Currently mining Outcamp and Warrigal Bonnie East contributes from FY16 and Coongan
Slide 8: Mining – Overview
MINING – OVERVIEW For personal use only Mining Area Bottom of Orebody Water Table Shallow “pits” using surface mining Above water table - lower environmental 7 impact, no wet ore.
Slide 9: Mining – Surface Miners
MINING – SURFACE MINERS For personal use only Mesa edge bund wall Surface miner cut panel Ore block piles Wirtgen & Vermeer Surface Miners Rotating drum cutters – no drill & blast Environmental benefits, reduced run off 8 Provides primary crushing Surface mining results in reduced equipment
Slide 10: Processing and Logistics
PROCESSING AND LOGISTICS For personal use only Crushing / Screening (WATPAC) Road Haulage (Toll & Roadtrim) Rail and Port Services (FMG/TPI) Main plant upgrade now Ore trucked via private sealed World class rail and port complete road to dedicated stockyard at Access to Capesize vessels up C
Slide 11: NJV Operational Performance
NJV OPERATIONAL PERFORMANCE For personal use only Ore Mined (wmt) Ore Processed (wmt) Ore Shipped (wmt) 1.8 1.8 1.8 1.6 1.6 1.6 1.4 1.4 1.4 1.2 1.2 1.2 1.0 1.0 1.0 0.8 0.8 0.8 0.6 0.6 0.6 0.4 0.4 0.4 0.2 0.2 0.2 0.0 0.0 0.0 10
Slide 12: Production Rates
PRODUCTION RATES For personal use only 18 16 14 12 Project Inventory potential million tonnes Current schedule “stretched out” as in- 10 pit BBSO supplements DSO 8 Potential for further extensions from near-pit BBSO and regional mesas 6 ? 4 2 0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY
Slide 13: Reserve Replacement & Project Inventory
RESERVE REPLACEMENT & PROJECT INVENTORY For personal use only 50 History of reserve replacement Reserves 45 Cumulative Ore Mined Bonnie East added to Reserves in FY12 40 Grade control drilling delivered increased tonnages for Ore (Mt) 35 all 5 pits remodeled to date 30 Project Inventory is a
Slide 14: Beneficiation Trial
BENEFICIATION TRIAL For personal use only -10mm / +5mm Low-grade Beneficiation trial now underway Material +10mm Secondary Crusher Secondary Simple crush and screen process Screen Potential BBSO Treating material from existing low-grade Primary -5mm / +1.5mm Primary stockpile as well as newly
Slide 15: FY2014 - Guidance
FY2014 - GUIDANCE For personal use only Platts CFR62 price of US$134/dmt on 11 Oct 13 LOM guidance of A$46-50/wmt FOB FY14 JV production guidance 5.8-6.2Mt (BC Iron equity share 4.4-4.6Mt) Underlying FOB C1 cash operating costs of A$46-50/wmt over life-of-mine (varies with waste/ore ratio) C1
Slide 16: Bonnie Fines Overview
BONNIE FINES OVERVIEW For personal use only Bonnies Fines well accepted - consistent demand. “Bonnie Fines” pisolite sinter blend improves sintering productivity at the steel mill High calcined Fe driven by high Loss On Ignition (LOI) Low impurities, low ultra-fines and low moisture Low Al a
Slide 17: Bonnie Fines Marketing & Pricing
BONNIE FINES MARKETING & PRICING For personal use only BCI Attributable Tonnes BCI CFR Received Price vs. Platts CFR62 Price $200 Bonnie Fines Gap between BCI received price & Platts price has $180 reduced due to increased Iron Ore Price (US$/dmt) share of uncommitted ore $160 $140 ~3.2Mtpa til 2018
Slide 18: Business Development
BUSINESS DEVELOPMENT For personal use only Goals Retain and enhance ability to pay dividends Generate value for shareholders (risk adjusted) via organic and inorganic opportunities Three Priorities Brazilian Exploration Projects Priority 1 – extend life of NJV (Project Inventory) BC Iron / C
Slide 19: Appendices
APPENDICES For personal use only APPENDICES 18
Slide 20: FY13 Performance
FY13 PERFORMANCE For personal use only Full Year ended 30 June 2013 2013 2012 Variance Variance NJV (100%) Tonnes Shipped (millions – wmt) 5.00 3.55 1.45 41% Tonnes Shipped - BC Iron share (millions – wmt) 3.15 1.77 1.38 78% Average CFR price realised ($US/dmt) $112 $124 ($12) (10%) C1 Operating Cas
Slide 21: BC Iron Limited – Board
BC IRON LIMITED – BOARD For personal use only Board of Directors Tony Kiernan, Non-exec Chairman – formerly a solicitor Terry Ransted, Non-exec Director – a geologist with with extensive experience in management and operation Alkane Resources managing exploration and of Australian public companies.
Slide 22: Ore Reserves & Mineral Resources - Jun '13
ORE RESERVES & MINERAL RESOURCES - 30 JUN ‘13 For personal use only Ore Reserves NJV (BC Iron 75%, FMG 25%) Classification Mt Fe% CaFe% Al2O3% SiO2% P% S% LOI Proved 18.9 57.3 65.0 1.8 3.0 0.015 0.012 11.8 Probable 18.3 56.9 64.8 2.0 3.0 0.014 0.011 12.2 Total 37.2 57.1 64.9 1.9 3.0 0.015 0.012 12.0
Slide 23: Competent Persons Statements
COMPETENT PERSONS STATEMENTS For personal use only JORC Competent Persons Statement The information that relates to the Mineral Resource Estimate at Outcamp, Coongan, and Warrigal has been compiled by Mr Mike Young who is a Member of the Australian Institute of Geoscientists a former employee (and c
Slide 24: Important Notice
IMPORTANT NOTICE For personal use only This document has been prepared by BC Iron Limited (“BC Iron” or “Company”) to provide an update of BC Iron to investors and potential new shareholders. Past performance Past performance information given in this document is given for illustrative purposes only
Slide 25: For personal use only
For personal use only ASX:BCI Level 1, 15 Rheola Street West Perth, WA, Australia Phone : +61 8 6311 3400 email : info@bciron.com.au www.bciron.com.au