Black Rock Mining Limited · ASX:BKT
Black Rock Mining — 121 Mining Investment Conference Cape Town 2018
28 slides from Black Rock Mining's conference presentation, Feb 1, 2018
Slide 1: 121 Mining Investment Conference Cape Town – Naturally Better Graphite
For personal use only 121 Mining Investment Conference C a p e To w n – F e b r u a r y 2 0 1 8 Naturally Better Graphite BLACK ROCK MINING (ASX: BKT) BLACKROCKMINING.COM.AU
Slide 2: Important information
Important information For personal use only The release, publication or distribution of this presentation in certain The information in this report that relates to Exploration Results and Mineral jurisdictions may be restricted by law and therefore persons in such Resource Statements is based on inf
Slide 3: Corporate Structure
Corporate Structure For personal use only ASX Ticker BKT 4.5 $0.18 Share Price $0.069 Millions 4 $0.16 Shares on Issue1 443.7m 3.5 $0.14 3 $0.12 Options 67.2m 2.5 $0.10 Performance Rights 3.4m 2 $0.08 Market Capitalisation $30.6m 1.5 $0.06 1 $0.04 Cash on hand as at 31 December 2017* $4.12m 0.5 $0.0
Slide 4: Peak capital intensity & Opex are first order issues
Peak capital intensity & Opex are first order issues For personal use only PEAK CAPITAL INTENSITY $USD PER ANNUAL TONNE CASH COST TO PORT $USD PER TONNE CON $1,800 700 $1,600 600 $1,400 500 Capex $ USD)/annual Opex $ USD)/annual tonne $1,200 400 $1,000 $800 300 tonne $600 200 $400 100 $200 $0 - BKT
Slide 5: Size and grade do matter
Size and grade do matter For personal use only RESOURCE - CONTAINED GRAPHITE VS GRADE RESERVE - CONTAINED GRAPHITE VS GRADE 12% 18% SYR 16% 10% SYR 14% Resource grade % 8% BKT 12% Reserve grade % 10% 6% 8% BKT 4% 6% Low grade 4% 2% 2% 0% 0% 0 20 40 60 80 100 120 140 - 2.0 4.0 6.0 8.0 10.0 12.0 14.0
Slide 6: Opex sustainability
Opex sustainability ABSOLUTE STRIP RATIO (SR*GRADE*REC) VS OPEX $/T (FOB) For personal use only 700 600 Absolute strip ratio and head grade determine opex Opex $ USD)/annual tonne 500 BKT Marginal projects 400 sustainability SYR 300 Selling price is a function of 200 concentrate grade and flake size
Slide 7: Normalising the peer group for concentrate grade and basket size
Normalising the peer group for concentrate grade and basket size levels the field For personal use only CLAIMED BASKET $USD/T VS P50 SIZE PRICE & GRADE - NORMALISED BASKET $USD/T VS P50 Con price normalised for con grade and flake size $USD/t 3,000 3,000 2,500 2,500 2,000 2,000 BKT Claimed con price
Slide 8: High margin
High margin For personal use only NORMALISED MARGIN VS PEAK CAPITAL INTENSITY 2,000 1,800 1,600 1,400 Capital intensity $USD/ annual tonne 1,200 1,000 800 BKT 600 400 200 - - 200 400 600 800 1,000 1,200 Normalised margin USD $/t FOB After normalising for concentrate grade and flake size, BKT has the
Slide 9: Black Rock – Mahenge Graphite Project
Black Rock – Mahenge Graphite Project For personal use only Lowest peak capital 1800m met infill drilling complete intensity of the peer group Highest normalised margin of 500 t bulk sample complete any mine with meaningful scale Large scalable long life Pilot plant 140t Mar mine CY18 – Very low abs
Slide 10: Table of Contents
Table of Contents For personal use only 1. Black Rock Mining 2. Corporate Overview 3. 2017 – From explorer to developer 4. 2018 – Construction ready 5. The Mahenge Graphite Mine 6. Graphite Market 7. Summary 10
Slide 11: 1. Black Rock Mining
1. Black Rock Mining DEVELOPER OF THE MAHENGE GRAPHITE MINE For personal use only Mahenge Graphite Successfully delivered optimised Project – truly a PFS with disciplined “crawl walk Simple concentrate world-class deposit run” strategy only business model • Lowest quartile FOB costs of • Increased N
Slide 12: 2. Corporate Overview
2. Corporate Overview SENIOR MANAGEMENT TEAM IN PLACE TRANSITION FROM For personal use only EXPLORER TO DEVELOPER JOHN DE VRIES RICHARD CROOKES STEVE COPULOS GABRIEL CHIAPPINI ANTHONY HALL CEO and Managing Non-Executive Non-Executive Non-Executive Head of Strategy Director Chairman Director Director
Slide 13: Tanzanian centric operating model
2. Corporate Overview For personal use only TANZANIAN CENTRIC OPERATING MODEL BUILDING SYSTEMS AND PROCESSES TO UPLIFT LOCAL SKILLS TO A POINT WHERE ASSET CAN BE RUN FROM WITHIN COUNTRY: • Bolt on/off • Lower long term cost base • Increased premium (bolt on/off) • Consistent with legislative reset a
Slide 14: 3. 2017 – From Explorer to Developer
3. 2017 – From Explorer to Developer TRANSITIONAL YEAR THAT ESTABLISHED THE MAHENGE GRAPHITE MINE AS For personal use only A WORLD CLASS PROJECT Resource Compelling Optimised 300 cycle battery increased to PFS delivered PFS delivered test work complete PROJECT over 200m tonnes for 160k tonnes pa for
Slide 15: 4. 2018 – Construction Ready
4. 2018 – Construction Ready CLEAR FOCUS For personal use only Tanzania Complete Drill Out of first 5 years Mining code expected soon. Investment Currently at 50%. Quantifies variability assessment already includes free carried and range of plant performance and royalty changes outcomes. Defines pro
Slide 16: 5. Mahenge Graphite Mine
5. Mahenge Graphite Mine For personal use only Ulanzi HIGH-GRADE RESOURCE CAPABLE OF DELIVERING A MULTI- GENERATIONAL MINE WITH SIGNIFICANT Mahenge Graphite SCALE Project Cascades Image showing project location in Tanzania Image showing Ulanzi and Cascades localities. Grid spacing is 500m. Feed prof
Slide 17: Outstanding financial metrics
5. Mahenge Graphite Mine OUTSTANDING FINANCIAL METRICS For personal use only KEY PFS INVESTMENT METRICS • NPV10 of US$905m* ($1.1 bn AUD) • IRR of 45.1% • EBITDA in first full year of production of US$220m (EBITDA margin of 66%) *Post 16% free carry and new royalty regime PEAK CAPITAL INTENSITY VS F
Slide 18: Industry leading pre-production capex, margin, concentrate grade
5. Mahenge Graphite Mine INDUSTRY LEADING PRE-PRODUCTION CAPEX, MARGIN, CONCENTRATE GRADE WITH A MULTI-GENERATIONAL MINE LIFE For personal use only Key parameters of the Mahenge Graphite Project KEY FINANCIAL Unit Single Two Three LOM • Three stage construction to deliver a maximum of 250k PARAMETER
Slide 19: Staged development: low capex, meaningful scale
5. Mahenge Graphite Mine For personal use only Match likely Low Production Meaningful scale demand growth Capex in battery market Spheronising, Annual EBITDA of 1 2 3 purification and Coating US$220m PHASE PHASE PHASE Plant production of production of production of 80ktpa 80ktpa 80ktpa Targeting hig
Slide 20: Engineering studies, organisation and market development
5. Mahenge Graphite Mine ENGINEERING STUDIES For personal use only • Modular approach results in higher level of final engineering before execution decision is made • Modular approach minimises in-field risk via completion testing and fixed price deliver at factory gate • Assembly vs construction mi
Slide 21: MOUs signed with real industry participants
5. Mahenge Graphite Mine For personal use only MOU’S SIGNED WITH REAL INDUSTRY PARTICIPICANTS MEIWA BOTIAN BATTERY TESTING • Part of Mitsubishi group of • Existing spheroniser in Chinese • Long cycle data available companies market to customers to facilitate acceptance testing • Existing major playe
Slide 22: Cycle testing – industry standard for consumer appliance
5. Mahenge Graphite Mine For personal use only 300 CYCLE TESTING – INDUSTRY STANDARD FOR CONSUMER APPLIANCE • The evidence from Mahenge graphite’s performance at 300- cycles indicates it strongly outperforms commercially available products, potentially establishing new performance benchmarks of natu
Slide 23: Mining framework and next steps once mining code completed
5. Mahenge Graphite Mine For personal use only In the absence of a formal State Agreement, Black Rock Mining will be Black Rock Management assuming the announced mining believes the Mahenge Graphite framework applies and it will use the Project works under the framework subject to renegotiation of a
Slide 24: Demand increasing driven by energy efficiency and storage
6. Graphite Market DEMAND INCREASING DRIVEN BY ENERGY EFFICIENCY AND STORAGE For personal use only BUILDING CLADDING LI-ION BATTERIES Increased regulation to drive move from ProGraphite forecasts ~ 60% growth in flake graphite polystyrene to expandable flake graphite demand between 2016 and 2025, wi
Slide 25: Existing supply under pressure due to environmental regulation
6. Graphite Market EXISTING SUPPLY UNDER PRESSURE DUE TO ENVIRONMENTAL REGULATION For personal use only AND REDUCTION IN SYNTHETIC SUBSTITUTES Natural Majority of current global supply comes from China. China has moved to increase anti pollution emphasis, crack downs on undocumented and unlicensed o
Slide 26: Prices increasing due to demand increasing and supply decreasing
6. Graphite Market PRICES INCREASING DUE TO DEMAND INCREASING AND SUPPLY DECREASING For personal use only Source BAIINFO.com Source: Benchmark Mineral Gabriel Intelligence Chiappini – Non-Executive Director & Company Secretary Anthony Hall – Head of Strategy 26 26
Slide 27: 7. Black Rock Mining Summary
7. Black Rock Mining Summary For personal use only DEVELOPING THE MAHENGE GRAPHITE MINE The Mahenge Graphite Project has a JORC Compliant Mineral Resource Estimate of 211.9 million tonnes at 7.8% Total Graphitic Carbon (“TGC”) for over 16 million tonnes of contained graphite. INDUSTRY LEADING LOW CA
Slide 28: For personal use only
For personal use only BLACK ROCK MINING (ASX: BKT) BLACKROCKMINING.COM.AU
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