Bci Minerals Ltd · ASX:BCI
Bci Minerals — Investor Presentation (May 2021)
24 slides from Bci Minerals's investor presentation, May 7, 2021
Slide 1: Developing the Multi-Generational Mardie Salt & Potash Project
For personal use only Developing the Multi-Generational Mardie Salt & Potash Project Forging Ahead To Construction 7 May 2021 ASX:BCI www.bciminerals.com.au
Slide 2: Important Notices
Important Notices Not an Offer of Securities This document has been prepared by BCI Minerals Limited ABN 21 120 646 924 (“BCI”) and is provided for information purposes only. This document does not constitute or contain an offer, invitation solicitation or recommendation with respect to the purchase
Slide 3: BCI Overview
BCI Overview For personal use only IRON VALLEY MARDIE SALT & ROYALTIES POTASH PROJECT ~$200M market cap1 ~$100M cash and zero debt2 FY21 Q1-Q3 EBITDA of ~$37M Tier 1; Sustainable; ~$260M/a EBITDA BCI SHARE PRICE BCI PERFORMANCE RELATIVE TO PEERS 0.40 7 250% MinRes 0.35 6 200% Kalium 0.30 Share Price
Slide 4: Iron Valley Mine
Iron Valley Mine Strong royalty payments to BCI IRON VALLEY MINE For personal use only Quarterly royalty earnings from operating agreement with Mineral Resources Ltd (MIN) 82Mt Reserves1; Potential mine life of ~10 years Since first production in 2014: – BCI received revenue: $400M – BCI recei
Slide 5: Australian Salt & SOP Landscape
Australian Salt & SOP1 Landscape Mardie: ideal location to produce high-purity salt and SOP For personal use only Pilbara has an ideal climate to produce high purity salt WESTERN AUSTRALIA – SALT AND SOP PROJECTS – High temperature, high wind, low rainfall, low humidity – Proven region for product
Slide 6: Positive Salt Market Outlook
Positive Salt Market Outlook Strong demand growth in Asia and insufficient new supply For personal use only CONTESTABLE ASIAN MARKET1 DEMAND/SUPPLY; 2019-2030 (MT) 110 100 10 Large established market 83 >10,000 direct and indirect uses across many market segments Strong correlation (r=0.97) be
Slide 7: SOP – High Quality Potassium Fertiliser
SOP – High Quality Potassium Fertiliser Solid growth market driven by demand for high quality fruits and vegetables For personal use only 7 15 19 12 16 20 Sulphate of Potash or SOP (K2SO4) is a premium fertiliser N P K Mg S Ca and source of potassium for Nitrogen Phosphorus Potassium Magnesium Sulph
Slide 8: Optimised Feasibility Study Design
Optimised Feasibility Study Design Bigger project with better economics For personal use only SITE CONDITIONS PROJECT LAYOUT >100km2 clay soils – ideal to retain water High net evaporation rates (~10mm/day) PRODUCTION 9 evaporation ponds 42 salt and 20 SOP crystallisers Salt wash plant - 5
Slide 9: Mardie Production Process
Mardie Production Process1 99% Sun and Wind Energy 4. Salt Wash For personal use only Plant 5. Salt Stockpiles C. SOP Storage Shed 7. Transhipper 6. 2.4km (12,000t) Jetty B. SOP Process Plant 8. Ocean Going Vessel A. KTMS2 (up to Capesize) Crystallisers (5km2) 9. Export 3ii. Secondary Salt Crystalli
Slide 10: $60M Enabling Works Underway
$60M Enabling Works Underway Establish key infrastructure1 to accelerate Mardie development For personal use only GEOTECHNICAL INVESTIGATIONS SALT PILOT PLANT (PERTH) EMBANKMENT TRIAL3 VILLAGE2 MAIN PUMP STATION2 NORTH-SOUTH ROAD3 1All enabling works subject to special permitting 2Artist impression
Slide 11: Positive Stakeholder & Approval Progress
Positive Stakeholder & Approval Progress Native title agreements in place; Approvals and tenure on track For personal use only GOVERNMENT Major Project Status - one of 20 in Australia Largest NAIF loan in WA approved - $450M ENVIRONMENT Public Environmental Review (PER) process completed Tar
Slide 12: Salt MOUs Show Strong Customer Support
Salt MOUs Show Strong Customer Support MOUs to be converted to offtake contracts over next 18-months For personal use only Asian salt market is deep and diversified TARGET MARKETS SALT (5.35MTPA) Typical buyers include: chloralkali, soda ash, water China Japan South Korea Taiwan Other treatment,
Slide 13: SOP MOUs Show Strong Customer Support
SOP MOUs Show Strong Customer Support MOUs to be converted to offtake contracts over next 18-months For personal use only Global SOP market is fragmented and specialised TARGET MARKETS SOP (140KTPA) Typical buyers include: fertiliser distributers, compound China Japan Oceania USA SE Asia Other A
Slide 14: Optimised Feasibility – Bigger and Better
Optimised Feasibility – Bigger and Better1 Strong financial metrics providing annuity-style cash flow For personal use only CAPITAL COST (A$913M) A$737M direct; A$175M indirect & contingency A$63M Early Works (being implemented) FINANCIALS6 OPERATING COST (60 year average) NPV7: A$1,670M Sal
Slide 15: Salt Cost Curve – Contestable Market
Salt Cost Curve – Contestable Market Mardie will be a low-cost supplier of salt into contestable1 Asian market For personal use only 60 Mardie will be cost Mardie Salt 50 Only competitive with all Australian salt operations2 Chinese Rock 3rd Tier Other Mardie with Chile 40 CIF eq. Cost (US$/t) SOP
Slide 16: Robust Financial Sensitivities
Robust Financial Sensitivities Robust project even with >10% downside risk For personal use only BASE CASE NPV7 $1,670M1 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300 Exchange Rate: US$0.70 ± 10% 1,280 2,140 Production: 5.35Mtpa & 140ktpa ± 10% 1,245 2,085 Salt
Slide 17: Funding Strategy Advanced
Funding Strategy Advanced NAIF loan approved; positive engagement with banks For personal use only New Funding Requirement ~$1.1 billion $850M capex1 plus working capital, and funding costs ~$700M3 ~$400M4 NAIF2: Positive Equity to be sourced Investment Decision from existing cash, new for $450M
Slide 18: Delivery Model
Delivery Model Maximise fixed price contracts to reduce cost overrun risk For personal use only BCI Owners Team Project Management Contractor (Engenium) EPC Packages D&C Packages Construction Packages BOO/T Packages Salt Wash Plant 3 Main Seawater Station Evaporative Ponds 12 Desalination Plant 1 9
Slide 19: Project Schedule
Project Schedule 2021 2022 2023 2024 2025 For personal use only Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 H1 | H2 FUNDING; APPROVALS EARLY WORKS PONDS CRYSTALLISERS FID1 GROW SALT INVENTORY SALT PLANT FIRST SALT MAIN ON SHIP CONSTRUCTION START GROW SOP INVENTORY OPERATI
Slide 20: Mardie – A Tier Project
Mardie – A Tier 1 Project Large scale, low cost and long operating life For personal use only 3. QUALITY 5. STRONG 1. LARGE SCALE 2. SUSTAINABLE PRODUCTS 4. LOW COST CASHFLOWS Largest salt project in 99% of energy from High purity salt Lowest quartile Long term annuity Australia wind and s
Slide 21: Why Invest in BCI?
Why Invest in BCI? Strong Iron Valley earnings and significant Mardie upside potential For personal use only CURRENT VALUATION MARDIE POTENTIAL Low enterprise value of Salt & SOP growth markets ~$100M Tier 1 – sustainable, large Record Iron Valley scale, low cost & long life royalties ~$26
Slide 22: BCI Board of Directors
BCI Board of Directors Brian O’Donnell Alwyn Vorster For personal use only NON-EXECUTIVE CHAIRMAN MANAGING DIRECTOR Banking and investment background Geology, Mining and MBA degrees Director, Finance and Investments - Kumba; Rio Tinto; Iron Ore Holdings Australian Capital Equity (ACE) Geol
Slide 23: BCI Executive Team / Key Personnel
BCI Executive Team / Key Personnel Alwyn Vorster Sam Bennett Stephanie Majteles For personal use only MANAGING DIRECTOR PROJECT DIRECTOR GENERAL COUNSEL Geology, Mining and MBA degrees Civil engineering degree Law degree Kumba; Rio Tinto; Iron Ore Holdings Fortescue; Roy Hill; WSP Freehi
Slide 24: For personal use only
For personal use only T +61 8 6311 3400 Level 1, 1 Altona St GPO Box 2811 E info@bciminerals.com.au West Perth West Perth W www.bciminerals.com.au WA 6005 WA 6872