Black Rock Mining Limited · ASX:BKT
Black Rock Mining — 121 Mining Conference, Cape Town 2023
27 slides from Black Rock Mining's conference presentation, Feb 6, 2023
Slide 1: Simply Better Graphite: Investor Update
Black Rock Mining Mahenge Graphite Mine For personal use only Simply Better Graphite: Investor Update 121 Mining Conference, Cape Town February 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. For personal use only The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and t
Slide 3: Table of Contents
Black Rock Corporate overview: Black Rock at a glance 4 and the Black Rock team 5 For personal use only Mahenge The outlook for graphite A snapshot of the Mahenge graphite mine 6 11 Graphite First quartile on the cost curve 12 Mine Why Mahenge? 13 ESG focused ecosystem 14 Table of Cont
Slide 4: Black Rock at a glance
Black Rock at a glance Capital structure ASX ticker BKT Premium graphite player Share price (1 February 2023) $0.16 For personal use only Shares on issue 982.6 M Developing the Mahenge graphite project in Tanzania: - Tier 1 scale (2nd largest reserve globally) Options and performance rights 62.27 M
Slide 5: Black Rock team
Black Rock team Board of Directors Management For personal use only Richard Crookes, Non-exec Chairman: Geologist with over 30 years Steuart McIntyre, GM Corporate Development: Mining analyst with over 15 executive experience in the resources and finance industries; raised capital years experience.
Slide 6: Graphite in batteries
Graphite in Graphite is the dominant anode material, regardless of battery chemistry batteries For personal use only LFP NMC 111 NMC 532 NMC 811 NCA 17% 15% 16% 16% 11% There is more 29% 43% graphite in Li-ion Cathode (+) 68% 73% batteries by volume 83% 29% 24% than any other 27% 8% material, regard
Slide 7: Growing importance of natural graphite in batteries
Growing importance of natural graphite in batteries Natural 100% graphite For personal use only 75% 48% 41% increasing in 58% 50% batteries 25% 39% 48% 49% 0% The use of natural 2020 2025 2030 Natural graphite Synthetic graphite Silicon LTO Other graphite in batteries has been growing Demand for LIB
Slide 8: Material natural graphite supply deficits forecast from 2023
Material natural graphite supply deficits forecast from 2023 Strong 400,000 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 outlook for For personal use only 200,000 natural 0 -200,000 Market Balance (ktpa) graphite -400,000 -600,000 Supply deficit of ~135kt forecast in 2023 or 9% of for
Slide 9: Material natural graphite supply deficits forecast from 2023
Material natural graphite supply deficits forecast from 2023 Strong 400,000 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 3,000 outlook for For personal use only 200,000 2,500 natural 0 Mahenge Basket Price (US$/t) -200,000 2,000 Market Balance (ktpa) graphite -400,000 -600,000 1,500 -
Slide 10: Robust graphite prices
Graphite pricing by Mahenge product (last 12 months) US$/t Robust 2,000 1,750 graphite 1,500 For personal use only 1,250 prices 1,000 750 Current graphite 500 20/01/22 20/04/22 20/07/22 20/10/22 20/01/23 prices support healthy Split in Mahenge basket: 32% -195 9% +195 36% +895 18% +595 5% +3295 pote
Slide 11: 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) 95 – 99%+ TGC purity US$182M 347ktpa 59% +80 mesh, 41% -80 Modul
Slide 12: First quartile on the global cost curve
First quartile on the global For personal use only 2024 Adjusted C1 Cost Curve* cost curve 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 Cas
Slide 13: Why Mahenge?
Why Mahenge? For personal use only Unique competitive advantages driven by Geology and Geography GEOLOGY GEOGRAPHY ★ Mahenge’s 213mt resource makes it the 4th largest graphite ★ Access to key infrastructure, Grid Power, Rail, Airstrip, Water resource in the world1 and Tailings disposal (dry stack) ★
Slide 14: 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 15: Graphite playbook
MAJORITY OF PRE-CONSTRUCTION INVESTMENT Graphite PILOT PLANT QUALIFICATION playbook CUSTOMERS & For personal use only OFF-TAKES GOVERNMENT Free-Carried Interest Shareholding Agreement EPC Sequential development that is customer driven DRILLING SOCIAL LICENCE STUDY WORK MINING LICENCE & FINANCING APR
Slide 16: Development timetable
Development Debt process underway, data room open, Term Sheets expected Q1 20231 timetable For personal use only Black Rock is targeting up to 50% debt via traditional project finance Aiming to have debt finance in place for Construction period 20 months2 Module 1 in the next few months. Tar
Slide 17: 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: For personal use only Signing full-form offtake agreement flow Signing full-form prepay agreement for US$10m Potential for POSCO to take up it’s right to a BKT board s
Slide 18: BKT ready to deliver
BKT ready to deliver For personal use only Compelling Project Metrics Tier 1 Scale 1st Quartile Costs The significant Tier 1 (low-cost green power, low strip) Higher proportion of large flake scale Mahenge Higher purity concentrates graphite mine into an Strong macro tailwind undersupplied and growi
Slide 19: Contact details
Richard Crookes For personal use only John de Vries Chairman 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 20: Appendix
For personal use only Appendix
Slide 21: Milestones delivered
Milestones Free Carried Interest Framework Agreement signed with Govt of Tanzania delivered 500t pilot plant qualification run completed, the largest in the sector For personal use only Term Sheet signed with POSCO for Offtake and US$10m Pre-payment In the last 12 months ICA Partners appoint
Slide 22: Premier location
Premier location For personal use only AFRICA Well positioned in Dar es Salaam East Africa’s growing Graphite belt Mahenge Graphite Mine TANZANIA Tanzania seeking to encourage investment - BKT signed FCI Agreement with Govt (Dec 2021) - BHP committed US$100m in Kabanga Nickel (Jan 2022) 22
Slide 23: 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 24: Battery demand growth
Battery Battery Raw Material Demand Growth (kt) demand 6,000 5,903 For personal use only growth 5,000 4,241 A synchronised 4,000 3,689 global technology change is underway 3,000 2,645 2,869 and is expected to drive strong demand 2,000 1,652 for battery materials 914 1,000 654 693 506 342 185 0 2020
Slide 25: Expert consensus prices
Expert Expert Consensus Price Forecast for Mahenge Basket consensus For personal use only prices Based on Expert Consensus pricing and forecast supply deficits, graphite prices are expected to rally in 2023 Note: Expert Consensus comprises average graphite forecast prices provided by Benchmark Miner
Slide 26: Li-ion battery raw materials supply chain by country
Li-ion battery EXTRACTION PROCESSING ANODE/CATHODE PRODUCTION BATTERY CELL MANUFACTUARING raw materials EU, 4% Other, For personal use only 17% US, 10% EU, 6% GRAPHITE supply chain Other, China, China, 23% 73% 73% Other, 11% China, China, 100% 83% by country COBALT Other, 99% China, 1% EU, 17% Other
Slide 27: Offtake agreements
Offtake Mahenge Offtake for Module 1 (89ktpa) agreements For personal use only Over 80% of Mahenge’s Module 1 production is under binding offtake or option 27
Black Rock Mining — 121 Mining Conference, Cape Town 2023 on 6ix