Bci Minerals Ltd · ASX:BCI
Bci Minerals — Investor Presentation (November 2020)
30 slides from Bci Minerals's investor presentation, Nov 26, 2020
Slide 1: Developing the Multi-Generational Mardie Salt & Potash Project
For personal use only Developing the Multi-Generational Mardie Salt & Potash Project Corporate Presentation 26 November 2020 ASX:BCI www.bciminerals.com.au
Slide 2: The BCI Opportunity
The BCI Opportunity For personal use only MARDIE SALT & IRON VALLEY POTASH PROJECT ROYALTIES ▪ ~$150M market cap1 ▪ ~$88M cash and zero debt2 0.30 4 Shareholders 0.25 3 Australian Capital Equity 39.6% Share Price ($) Volume (m) 0.20 Sandon Capital 6.1% 0.15 2 Top 20 Shareholders ~68% 0.10 1 0.05 Num
Slide 3: Mardie Project: Why Salt and SOP?
Mardie Project: Why Salt and SOP? Strong growth in Mardie’s target markets For personal use only 30% SALT ASIAN DEMAND >50Mtpa additional demand ▪ >10,000 products derived from salt over next decade1 – (PVC, alumina, glass, paper, water (growing population, purification) requiring more industrial an
Slide 4: Australian Salt & SOP Landscape
Australian Salt & SOP Landscape Mardie: ideal location to produce high-purity salt and SOP For personal use only Western Australia – Salt and SOP Projects ▪ Pilbara has ideal climate to produce high purity salt – High temperature, high wind, low rainfall, low humidity – Proven salt production region
Slide 5: Significant Progress & Exciting Targets
Significant Progress & Exciting Targets Key milestones achieved in 2020 – preparing for construction in 2021 For personal use only 2020 Current 2021 | Jun | Jul | Aug | Sep | Oct | Nov | Dec Q1 Q2 Q3 FUNDING FID2 TENURE $48M EPA SECURED ENTITLEMENT ASSESSMENT ISSUE DEBT COMPLETE TERMS AGREED TENDER
Slide 6: Feasibility Study Design
Feasibility Study Design DFS completed in June 2020 with positive results For personal use only Project Layout SITE CONDITIONS ▪ 100km2 clay soils – ideal to retain water ▪ High net evaporation rates (~10mm/day) PRODUCTION ▪ 9 evaporation ponds ▪ 34 salt and 18 SOP crystallisers ▪ Salt wash plant pr
Slide 7: Mardie Scale will be Globally Significant
Mardie Scale will be Globally Significant Top 3 scale global solar salt project1 Project footprint vs Sydney/Perth For personal use only Salt Capacity (Mtpa) 0 1 2 3 4 5 6 7 8 Parramatta Guerrero Negro [Mexico] Manly Hajipir [India] Sydney Mardie Salt/SOP Project [WA] 4.4Mtpa Salt Dampier [WA] Sydne
Slide 8: Final Detailed Design Underway
Final Detailed Design Underway Multiple industry experts involved – low residual construction risk at FID For personal use only 1. MAIN SEAWATER PUMP STATION 2. SALT WASH PLANT 3. SOP PROCESS PLANT 4. PORT / TRANSHIPPER 8
Slide 9: Attractive Financials
Attractive Financials DFS delivered strong financial metrics over a 60 year life1 For personal use only FINANCIALS5 CAPITAL COST (A$780M) ▪ NPV7: A$1,197M ▪ ~A$580M direct capex ▪ ~A$200M indirects and contingency ▪ EBITDA: A$197Mpa (Salt 65%; SOP 35%) ▪ IRR: 15.3% OPERATING COST (60 year average) ▪
Slide 10: Salt Cost Curve – Contestable Market
Salt Cost Curve1 – Contestable Market2 Mardie will be a low cost supplier of salt into Asia For personal use only ▪ Mexican solar salt and Chinese rock salt the marginal cost suppliers to most Asian markets (~US$33/t) ▪ Mardie will be cost competitive with all Australian salt operations ▪ When SOP m
Slide 11: Expansion/Optimisation Potential
Expansion/Optimisation Potential Adjacent tenement acquisition allows optimisation and future expansion* For personal use only PROJECT OPTIMISATION (2020/21) PROJECT EXPANSION (2025/26) ▪ Reconfigure ponds 8 and 9, add a new Pond 10, ▪ New ponds and crystallisers, expand SOP relocate and expand Prim
Slide 12: Early Works Commence December 2020
Early Works Commence December 2020 Establish key infrastructure to accelerate Mardie development For personal use only Geotechnical Drilling and Surveys Mardie Road 1. Major roads 5 1 2. Accommodation village 3. Trial pond earthworks Trial Pond 3 4 4. Support infrastructure Village – Communications
Slide 13: Large Scale Trial Pond
Large Scale Trial Pond Test wall designs and construction For personal use only Trial Pond (March 2021 to June 2021) to test INSERT constructability of evaporation pond wall types: 1. Non-trafficable outer seawall Future Pond 7 2. Non-trafficable pond separation wall 3. Non-trafficable pond dividing
Slide 14: Mardie Village (400 Person)
Mardie Village (400 Person) For personal use only VILLAGE Utilities Permanent Rooms Comms Recreation Cultural Facilities Centre Permanent Rooms 14
Slide 15: Strong Customer Support for Mardie
Strong Customer Support for Mardie MOUs covering a significant proportion of initial sales already in place For personal use only ▪ 13 Salt non-binding MOUs signed throughout Asia covering >100% of first 3 years’ salt production ▪ 2 SOP non-binding MOUs signed covering approximately 65% of first 5 y
Slide 16: Salt and SOP Pilot Plants (Illustrative)
Salt and SOP Pilot Plants (Illustrative) For personal use only 1. SALT PILOT PLANT 2. MARDIE SALT PLANT 3. SOP PILOT PLANT 4. MARDIE SOP PLANT 16
Slide 17: Environmental Approvals
Environmental Approvals For personal use only ▪ 3 years of surveys completed ▪ Project footprint moved inland ▪ No material sensitive impacts ▪ Public Environmental Review process completed ▪ EPA endorsement and Ministerial approval targeted by Q1 2021 17
Slide 18: Tenure Well Progressed
Tenure Well Progressed 1 Pastoral lands For personal use only ▪ Pastoral access agreement signed which allows for full development of the Mardie 3 Project 2 Gas pipeline easement ▪ Collaborative discussions with gas pipeline owners ▪ Mardie design will avoid construction and operating risk to pipeli
Slide 19: Native Title and Heritage
Native Title and Heritage ▪ Land access deeds in place with all native title For personal use only groups1; compensation obligations confirmed ▪ Heritage surveys completed for project footprint ▪ Local engagement initiatives commenced; Aboriginal and Pilbara businesses to be prioritised KM Land Acce
Slide 20: BCI Developing Regional Hub in Karratha
BCI Developing Regional Hub in Karratha Office leased; Head of Communities appointed; Focus on local engagement and contracting For personal use only ANGELA GLOVER – HEAD OF CORPORATE RELATIONS AND COMMUNITIES THE QUARTER – LOCATION OF BCI KARRATHA OFFICE 20
Slide 21: Long Term Stakeholder and Public Benefits
Long Term Stakeholder and Public Benefits 1. BENEFITS TO WA & AUSTRALIA1 For personal use only ▪ Corporate taxes: >$6Bn ▪ State royalties: >$600M ▪ Native title payments >$150M 6. SECONDARY PROCESSING 2. SIGNIFICANT EMPLOYMENT ▪ Australian first to produce OPPORTUNITIES commercial SOP from seawater
Slide 22: Funding Strategy Advanced
Funding Strategy Advanced Positive engagement from NAIF and Banks on potential debt financing For personal use only Funding Requirement ▪ Base case is a conventional funding model of debt (65%) and equity (35%) $780M Capital Cost (Excluding Working Capital and Funding Costs) ▪ Target is to secure de
Slide 23: Indicative Project Schedule
Indicative Project Schedule 2020 2021 2022 2023 2024 2025 For personal use only Q3 | Q4 Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 H1 | H2 FEED APPROVALS FUNDING EARLY WORKS PONDS DEFINITIVE FEASIBILITY STUDY CRYSTALLISERS FID GROW SALT INVENTORY FIRST SALT CONSTRUCTION
Slide 24: Why Invest in BCI?
Why Invest in BCI? Developing a Tier 1 salt and SOP project supported by iron ore royalties For personal use only TIER 1 PROJECT CASHFLOW POTENTIAL Mardie is sustainable, ~$10Bn1 over 60 years2 has large scale, low cost from Mardie & long life ▪ Low Enterprise value of ~$60M ▪ Supported by Iron Vall
Slide 25: Appendix
For personal use only Appendix
Slide 26: Iron Valley Mine
Iron Valley Mine Strong royalty payments to BCI For personal use only ▪ Quarterly royalty earnings from operating agreement with Mineral Resources Ltd ▪ ~7Mtpa production1; 82Mt Reserves2 ▪ Potential mine life of ~10 years ▪ 50% lump ore; 59% Fe average ▪ Since first production in 2014: – BCI receiv
Slide 27: Board
Board Brian O’Donnell For personal use only NON-EXECUTIVE CHAIRMAN ➢ Banking and investment background ➢ Director, Finance and Investments - Australian Capital Equity (ACE) Alwyn Vorster ➢ Numerous current and previous MANAGING DIRECTOR board positions on ASX-listed and ➢ Geology, Mining and MBA deg
Slide 28: Executive Team / Key Personnel
Executive Team / Key Personnel Alwyn Vorster Sam Bennett Tony Chamberlain For personal use only MANAGING DIRECTOR PROJECT DIRECTOR CHIEF OPERATING OFFICER ➢ Geology, Mining and MBA degrees ➢ Civil engineering degree ➢ Chemistry/Metallurgy degrees (PhD) ➢ Kumba; Rio Tinto; Iron Ore Holdings ➢ Fortesc
Slide 29: Mardie – Site Activity
Mardie – Site Activity For personal use only 1. EXISTING CAMP (36 ROOM) 2. TRIAL POND 3. TEST PIT (FEED) 4. SALT SAMPLES (TRIAL POND) 29
Slide 30: For personal use only
For personal use only T +61 8 6311 3400 Level 2 GPO Box E info@bciminerals.com.au 1 Altona Street 2811West Perth W www.bciminerals.com.au West Perth WA 6005 WA 6872