Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — Non-Deal Roadshow (June 2012)
25 slides from Bci Minerals's roadshow presentation, Jun 26, 2012
Slide 1: Company Announcements Office cover letter
25 June 2012 For personal use only Company Announcements Office Australian Securities Exchange BC Iron Limited (ASX: BCI) Please find attached the Company Presentation that Managing Director, Mike Young will be presenting during the BCI East Coast Road Show of Tuesday 26 to Thursday 28 June 2012. Re
Slide 2: Company Update June 2012
Company Update June 2012 For personal use only June 2012 Mike Young – Managing Director Morgan Ball – Finance Director
Slide 3: BC Iron is an iron ore mining company
For personal use only AN IRON ORE MINING COMPANY BC Iron is an iron ore mining company Points of difference Focused on development since 1H 2007: Production at ‘steady state’ at 5Mtpa Joint Venture with Fortescue Metals Group Quality product – “Bonnie Fines” Direct Ship Ore – CID pisolite
Slide 4: Company Snapshot
For personal use only COMPANY SNAPSHOT Shareholders Capital Structure Consolidated Minerals 23.9% Ordinary Shares 103.9m Regent Pacific 23.0% Market Cap at $2.50 $259.8m Henghou Ningbo 9.9% Cash as at 30 March 2012 $52.5m Debt $19.6m BC Iron Directors 2.6% Institutions 21.1% Enterprise Value $240m T
Slide 5: Board of Directors
For personal use only BC IRON LIMITED Board of Directors Tony Kiernan, Non-exec Chairman – a solicitor with Terry Ransted, Non-exec Director – a geologist with extensive experience in management and operation of Alkane Resources managing exploration and Australian public companies. Chairman of Ventu
Slide 6: Company History
For personal use only COMPANY HISTORY 2006 to 2012: Rapid Growth 2006 – Listing on ASX 2007 – Discovery of DSO iron ore at Outcamp Well 2008-2009 – Drilling, Feasibility, JV with FMG 2010 – Construction and Mining commences 2011 – Iron ore exports commence & maiden profit 2012 – Ramp up
Slide 7: Exceeding Guidance
For personal use only EXCEEDING GUIDANCE TARGETS Exports of 1Mt Exports of 3.5Mt Run Rate of 3.5Mtpa Run Rate of 5 Mtpa FY 2011-12 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 ACHIEVEMENTS Run Rate of 5 Mtpa Run Rate of >4.0 Mtpa Exports of 1.1 Mt Exports of >3
Slide 8: BC Iron Project Location
For personal use only BC IRON PROJECT LOCATION Nullagine Iron Ore Project Joint Venture with Fortescue (50:50) The Project is located 55 km north of Fortescue’s Christmas Creek (CC) Operations Ore is trucked to CC, then railed to Port Hedland for export via Fortescue’s port infrastructure Mi
Slide 9: Nullagine Joint Venture
For personal use only NULLAGINE JOINT VENTURE Nullagine Joint Venture BC Iron is the operator and Manager of the JV 50/50 share of revenue and costs Contract mining, haulage, rail & port Fortescue provide marketing services Ramp-up complete all activities now at “steady state” Expect t
Slide 10: Geology at Outcamp Deposit
For personal use only GEOLOGY AT OUTCAMP DEPOSIT Current Mining Area Bottom of Orebody Water Table Shallow “pits” using surface mining – ore from start of operations Above water table - lower environmental impact, no wet ore. 9
Slide 11: Mining at Outcamp Deposit
For personal use only MINING AT OUTCAMP DEPOSIT Mining panels with Mined material in stocks Surface Miners Wirtgen & Vermeer Surface Miners Rotating drum cutters – no drill & blast Provides primary crushing Surface results in reduced equipment wear Cut material 5 units on site – spare capaci
Slide 12: BC Iron - Contract Partners
For personal use only BC IRON - CONTRACT PARTNERS WATPAC Mining - Crushing & screening Currently at >5.0 Mtpa 2 Vermeer & 3 Wirtgen surface miners Further mill upgrade will provide up to 1mtpa additional ‘sprint’ capacity in Q1 FY2013 Toll Holdings - PowerTrans Pit Haulers 55 km dedicated bi
Slide 13: Production Rates
For personal use only PRODUCTION RATES 16 Ore Mined 14 Waste Mined million tonnes 12 10 8 6 4 2 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Past and forecast production FY12 to FY21 FY22 DSO+BBSO Production capacity rate at 5Mtpa steady state production LOM strip ratio of 1:1 Maxim
Slide 14: Forecast Costs
For personal use only FORECAST COSTS Price 16 June US$133 Lowest Price 28-Oct-2011 Targeted OpEx Source: Macquarie Research Forecast costs FOB cash operating costs estimated at $45 to $50 per tonne over LOM - varies with waste/ore ratio Cash costs exclude State royalties, Aboriginal royalties, m
Slide 15: Marketing Bonnie Fines
For personal use only MARKETING BONNIE FINES West Australian - Channel Iron Deposits Customer ratings of "Bonnie Fines" Element Grade Comments Rating “Bonnie Fines” pisolite sinter blend improves Fe 57.0% Typical for Channel Iron ✔ sintering productivity at the steel mill Deposit (CID) Low. Typica
Slide 16: Iron Ore Prices
For personal use only IRON ORE PRICES CFR62% Fe Tianjin Spot history to June 18, 2012 Forward consensus April 2012 LT (Nominal) $90/dmt CFR62% Fe 15
Slide 17: China Drivers – Steel Intensity
For personal use only CHINA DRIVERS – STEEL INTENSITY Source: Drysdale & Hurst (2012) 16
Slide 18: China Drivers – Steel Intensity
For personal use only CHINA DRIVERS – STEEL INTENSITY Australia GDP per capita $65,477 Australia steel intensity 261kg per capita Australia population 22.7m Source: Drysdale & Hurst (2012) 17
Slide 19: Business Development
For personal use only BUSINESS DEVELOPMENT A Pilbara iron ore miner Rapid development history Focused on development & production Established partnerships - FMG, stakeholders, government Bringing experience to growth Maximising resources at Nullagine DSO hematite, BBSO hematite Priority
Slide 20: Business Development
For personal use only BUSINESS DEVELOPMENT WORLD STRATEGIC PARTNERSHIPS NEW PROJECT NEXT MINE AUSTRALIA INCREASE NULLAGINE DSO NULLAGIN JV BBSO E PILBAR RESERVES A EXPLORE EVALUATE CONSTRUCT OPERATE 19
Slide 21: Reserves and Resources
For personal use only RESERVES AND RESOURCES TABLE 1: ORE RESERVES NJV (BC IRON 50%, FORTESCUE 50%) Probable Ore Reserves by Deposit Deposit Mt Fe% CaFe% Al2O3% SiO2% P% S% LOI Outcamp 18.3 56.8 64.7 1.9 3.2 0.014 0.010 12.2 Coongan 6.0 57.0 65.0 1.8 2.5 0.011 0.012 12.4 Warrigal 10.4 57.0 64.6 2.1
Slide 22: Reserves and Resources
For personal use only RESERVES AND RESOURCES TABLE 3: CID MINERAL RESOURCE ESTIMATE NJV (BC IRON 50%, FORTESCUE 50%) CID Mineral Resources by Deposit Deposit Mt Fe% CaFe% Al2O3% SiO2% P% S% LOI Outcamp 37.9 53.8 61.8 2.8 4.4 0.015 0.010 12.9 Warrigal 23.4 54.5 62.0 3.5 4.7 0.024 0.013 12.0 Coongan 1
Slide 23: Reserves and Resources
For personal use only RESERVES AND RESOURCES TABLE 5: CID MINERAL RESOURCE ESTIMATE NJV (BC IRON 50%, FORTESCUE 50%) CID Mineral Resources by Classification Category Mt Fe% CaFe% Al2O3% SiO2% P% S% LOI Measured 1.8 54.1 61.6 4.0 5.1 0.020 0.018 12.3 Indicated 81.4 54.1 61.9 3.0 4.4 0.017 0.011 12.7
Slide 24: Supporting Statements
For personal use only SUPPORTING STATEMENTS This release may include forward-looking statements. These forward-looking statements are based on management’s expectations and beliefs concerning future events as of the time of the release of this document. Forward-looking statements are necessarily sub
Slide 25: BC Iron Limited
BC IRON LIMITED Mining iron ore. Growth through cash flow. For personal use only Level 1, 15 Rheola Street West Perth, WA, Australia Phone : +61 8 6311 3400 email : info@bciron.com.au www.bciron.com.au