Bougainville Copper Limited · ASX:BOC
Bougainville Copper — Investor Presentation (February 2017)
20 slides from Bougainville Copper's investor presentation, Feb 22, 2017
Slide 1: Presentation to Shareholders: Development of a New Panguna Project
Bougainville Copper Limited Presentation to Shareholders Development of a New Panguna Project February 2017
Slide 2: Disclaimer
Disclaimer • Presentation Outline The material in this presentation has been prepared by Bougainville Copper Limited ARBN 007 497 869 (BCL) and is general background information about BCL activities current as at 22 February 2017 and has been prepared without taking account of any particular reader’
Slide 3: Introduction to BCL
Introduction to BCL Presentation BCL is an independently managed PNG company, Outline listed in Australia. BCL Board Rob Burns (Chairman) Sir Rabbie Namaliu (Independent Director) Dame Carol Kidu (Independent Director) Sir Moi Avei (Independent Director) Peter Taylor - Advisor to the Board BCL Manag
Slide 4: Presentation Outline
Presentation Outline Presentation Outline • Purpose • Current situation • What will be different this time • BCL developer of choice • Our values and development principles • The funding challenge • Staged development • Why is the BCL Proposal of Value to Bougainville • Key tasks • Summary • What’s
Slide 5: Purpose
Purpose Presentation Outline 1. To present a proposal for development of a new Panguna 2. To obtain commitment and support for BCL’s vision Return to active exploration and profitable, sustainable mining. The new Panguna will be for the benefit of the stakeholders
Slide 6: Current Situation
Current Situation • ABG is a major shareholder Presentation Outline • ABG is the regulator • Uncertainty is and has been the barrier to development: Ownership Tenure Safe and secure access Project development support Regulatory and tax regime Funding Project viability • BCL is best pla
Slide 7: What is different about the new Panguna
What is different about the new Panguna – we have all learned Presentation from the past Outline • Bougainville and BCL inclusive project • Landowner and community involvement in development decisions • Development is on Bougainville terms with ABG as regulator • Operating in a new era of environmen
Slide 8: BCL's Strengths
BCL’s Strengths • Project knowledge and intellectual property Presentation Outline • Tenure in place • Bougainvillean families remember the contribution that BCL made • Positive relations with Bougainvillean stakeholders • Acted respectfully and contributed to Bougainville since mine closure • Credi
Slide 9: Our Approach To Development
Our Approach To Development Presentation Outline • The development of the new Panguna will be for the benefit of Bougainville and all shareholders • Full involvement of landowners and community is essential • Major shareholder support is essential • The agreed way forward must be honoured • Project
Slide 10: The Funding Challenge
The Funding Challenge Presentation Outline • Need to raise significant funds at two different stages of the project: Feasibility studies >$100 million Construction – multi billions (?) • Feasibility Funding (high risk stage): Equity raising will be unlikely at current share price May need to
Slide 11: Relative positioning of large greenfield copper projects
Relative positioning of large greenfield copper projects Copper Projects with Capital Spend >US$1B 50% Kamoa Internal rate of return 40% Rosemount Tampakan 30% Carapateena El Pachon La Verde Constellation Quellaveco 20% Frieda River Panguna Pebble Kerr Sulphurets Mitchell Wafi Golpu 10% Resolution S
Slide 12: Proposal for a Staged Development
Proposal for a Staged Development Presentation Outline Stage 0 Remove the impediments to development Stage 1 Demonstrate project viability to identify and secure funding for bankable feasibility study Stage 2 Undertake bankable feasibility study, obtain permits and approvals and secure funding Stage
Slide 13: Staged Development - Value versus Risk
Staged Development - Value versus Risk Removing Demonstrate Bankable Approvals and Production, impediments viability Feasibility Build operational improvement 100% 95% High Risk 65% Value 30% 15% Low Value Stage 0 Stage 1 Stage 2 Stage 3 Production Risk
Slide 14: Stage 0: Remove impediments to development
Stage O Remove impediments to development Presentation Outline Timeline: Target by December 2017 – Budget of K12.5 million • Resolve the 17.4% shareholding Rio Tinto transferred to the PNG government • ABG to formalise and announce support for BCL as developer • Reserve land needed for project • Uni
Slide 15: Stage 1: Demonstrate project viability to secure feasibility study funding
Stage 1 Demonstrate project viability to secure feasibility study funding Timeline: Target by mid 2019 – Budget K25 million Presentation Outline Undertake scoping study to demonstrate technical, social and financial viability Expand resource tenure Consolidate community support for project dev
Slide 16: Stage 2: Bankable feasibility study, permits and approvals, funding
Stage 2 Undertake bankable feasibility study, obtain permits and approvals and secure funding Timeline: Target end 2020, Feasibility studies could require Presentation Outline up to 18 months – Budget >K250 million • Monitor referendum outcome • Complete bankable feasibility study • Undertake ESIA a
Slide 17: Staged Development - Key Tasks
Staged Development - Key Tasks • Obtain shareholder agreement and alignment Presentation Outline • Undertake Stage 0 remove project impediments using internal resources • Seek approval to proceed to Stage 1 (demonstrated viability) with agreed scope • Obtain equity funding or developer funding to fi
Slide 18: Why is the BCL Proposal of Value to Bougainville
Why is the BCL Proposal of Value to Bougainville Presentation Outline • Substantial existing Bougainville shareholding • Contributes fiscal independence • BCL understands the realities and challenges: BCL has always been in country BCL is committed in the long term to the people of Bougainville
Slide 19: Summary
Summary • BCL is here and ready to go, and already delivering • BCL is best positioned to succeed • BCL is committed to Bougainville and we have demonstrated so • We understand and respect the culture • Progress requires ABG and landowner’s unwavering support
Slide 20: Discussion Session
Discussion Session Presentation Outline • Thank you for your attention • I invite your comments, suggestions and questions • Summarise feedback
Bougainville Copper — Investor Presentation (February 2017) on 6ix