Bci Minerals Ltd · ASX:BCI
Bci Minerals — Investor Presentation (September 2019)
31 slides from Bci Minerals's investor presentation, Sep 30, 2019
Slide 1: Developing the Tier 1 Mardie Salt & Potash Project
For personal use only Developing the Tier 1 Mardie Salt & Potash Project Corporate Presentation 30 September 2019 www.bciminerals.com.au
Slide 2: About BCI Minerals
About BCI Minerals For personal use only ▪ Based in Perth, Australia 0.24 5 0.22 4 Share Price (A$) 0.20 ▪ ASX listed as “BCI” Volume (m) 0.18 3 0.16 2 ▪ Market cap of ~A$75M 0.14 1 0.12 ▪ A$36M1 cash and zero debt 0.10 0 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 ▪ Wroxby Pty Ltd – largest sharehold
Slide 3: The Mardie Opportunity
The Mardie Opportunity For personal use only Mardie is a Tier 1 long life project that can supply the Salt and Potash growth markets in Asia Salt as chemical feedstock Asian Demand MARDIE SALT & POTASH PROJECT Sulphate of Potash as premium fertiliser 3
Slide 4: Mardie – Long Term Benefits for all Stakeholders
Mardie – Long Term Benefits for all Stakeholders For personal use only 1. Renewable & Sustainable Inexhaustible seawater resource and 95% of energy derived from sun and wind 7. Strong Project Economics1 2. Environmentally Friendly Pre-tax NPV8: A$925M Ponds located 5km inland Pre-tax IRR: 19% and de
Slide 5: Salt Market
Salt Market Strong salt demand growth forecast in Asia For personal use only Salt Demand Growth in Asia (Mt) Salt Uses in Asia, 2018 (150Mt) 200 +26% 190 Chemical, 175 150 117Mt, 78% 150 Mt 125 100 Others, Food, 75 12Mt, 18Mt, 50 8% 12% 2018 2027 De-icing, 3Mt, 2% China India Japan Korea Indonesia O
Slide 6: Sulphate of Potash (SOP) Market
Sulphate of Potash (SOP) Market More people needing more and better quality food For personal use only ▪ Plant growth depends on three primary nutrients – Global SOP Demand Growth (Mt) Nitrogen (N), Phosphate (P) and Potassium (K) 9 ▪ Potassium improves nutrient flow through plants and +18% 7.7 8 in
Slide 7: Australian Salt & SOP Landscape
Australian Salt & SOP Landscape Mardie has ideal location to produce high purity salt For personal use only ▪ Pilbara region of Western Australia has optimum climate conditions to produce high purity salt with consistent quality via solar evaporation ▪ Five large existing solar Salt operations in th
Slide 8: Mardie's Competitive Positioning
Mardie’s Competitive Positioning Competitive salt costs; lowest SOP cost globally For personal use only Asian Salt Cost Curve – Global SOP Capacity Cost Curve 40 Supply into Mardie Contestable Market1 600 Inland Aus 35 US$/t CIF / Ex-Works 500 Mardie 30 Central China Rock US$/t FOB 25 400 Mexico Sol
Slide 9: Mardie Project Overview
Mardie Project Overview Key Parameters 3.5km For personal use only Causeway Production Rate • 4.0Mtpa Salt (>99.5% NaCl) • 100ktpa SOP (>51% K2O) (plus upside potential) Salt 3.2km Jetty Crystallisers SOP Operating Life • +60 years Crystallisers Site Conditions • Low rainfall, high temp and high win
Slide 10: Attractive Project Economics
Attractive Project Economics1 Production (60 years) For personal use only ▪ Salt: 4.0Mtpa ▪ SOP: 100ktpa Capex2 (nominal) Financials2,3 (pre-tax, ungeared, real) ▪ Salt & Port: A$470M ▪ NPV10: A$580M ▪ SOP: A$100M ▪ NPV8: A$925M Opex2 (FOB basis, real) ▪ EBITDA: A$165M/a ▪ Salt: A$14/t ▪ IRR: 19% ▪
Slide 11: Project Timeline – to Production
Project Timeline – to Production Targeting start of construction by mid 2020 For personal use only 2019 2020 2021 2022 2023 2024 Project DFS FEED Phases Early Works Approvals Funding Salt Ponds / Cryst. Salt Plant Salt Sales Construction Construction Port Construction SOP Cryst. SOP SOP Plant Constr
Slide 12: Mardie DFS Progress
For personal use only Mardie DFS Progress
Slide 13: Marketing & Offtake
Marketing & Offtake Positive progress with market development programme For personal use only ▪ BCI is developing an experienced salt marketing team with decades of sales experience ▪ Placement of both Salt and SOP will be primarily across Asian countries ▪ 5x non-binding MOUs agreed with large Asia
Slide 14: Ponds & Crystallisers
Ponds & Crystallisers For personal use only Pond layout ▪ Pond and crystalliser layout finalised – Worley consultants ▪ Flowsheet and mass balance finalised – Worley consultants ▪ GR Engineering as overall DFS lead engineer consolidating pricing quotations ▪ Ramp-up schedule being finalised ▪ Wall d
Slide 15: Processing Plants
Processing Plants For personal use only ▪ Salt plant – Salt Partners (Switzerland) provided basic engineering package – GR Engineering completing detailed design and engineering – 700tph nameplate capacity washing plant – Counter-current washing technology to achieve high purity product and minimise
Slide 16: Port Facilities
Port Facilities ▪ For personal use only Worley responsible for design and engineering ▪ 0.6Mt salt stockpile capacity ▪ 3.2km jetty to reach ~5m water depth ▪ 3,000tph shiploader for bulk salt and SOP loading ▪ Port lease will provide for 3rd party access to BCI facilities ▪ Transhipping to large ve
Slide 17: Small Scale Trial Ponds
Small Scale Trial Ponds ▪ 1:40,000 scale version (~1 hectare) of entire pond / crystalliser layout producing raw NaCl For personal use only salt and Kainite-type mixed salts (KTMS) for: – Continuous pilot test work (SOP); and – Customer samples (salt & SOP) ▪ >20 pan evaporators for controlled site
Slide 18: Large Scale Trial Pond Programme (1)
Large Scale Trial Pond Programme (1) For personal use only ▪ Construction of ~A$15M programme to Artist’s impression of trial pond commence in Q4 2019 which includes: 1. Large-scale trial pond 2. Seawater intake facility with 1 out of 6 pumps installed 3. Road access and supporting infrastructure 4.
Slide 19: Large Scale Trial Pond Programme (2)
Large Scale Trial Pond Programme (2) For personal use only 3D image of trial pond ▪ Trial pond – 32-hectare surface area – 2.3km of pond walls to be constructed – Varying heights and armouring depending on location – Total pond capacity of 441,000m3 (4 days to fill) ▪ Access & infrastructure – Upgra
Slide 20: Large Scale Trial Pond Programme (3)
Large Scale Trial Pond Programme (3) For personal use only ▪ Seawater intake facilities – Complete civil pad and overall seawater intake infrastructure – Install and commission 1 of 6 pumps (2,660L/s capacity out of 16,000L/s) 3D image of seawater intake facility Insert diagram of pump area 3D image
Slide 21: Approvals & Tenure Well Defined
Approvals & Tenure Well Defined For personal use only ▪ 3 years of surveys completed and no material Environmental issues identified ▪ Environmental review document (ERD) submitted ▪ EPA approval expected by Q2 2020 Heritage ▪ Land use agreements for production secured with Native Title claim groups
Slide 22: Preliminary Financing Structure Concepts
Preliminary Financing Structure Concepts Excellent progress with initial engagements with debt and equity providers For personal use only Other Financial Offtake ACE Group1 shareholders Investor(s) Investor(s) Equity: A$200-250M BCI Minerals NAIF Debt: A$400-450M Mardie Banks Minerals ECA / Other Ma
Slide 23: Mardie is a unique opportunity to create long term value
Mardie is a unique opportunity to create long term value For personal use only ▪ BCI current market capitalisation is ~A$75M; Assets include: 1. Cash: A$36M1 (zero debt) 2. Iron Valley royalty NPV8 ~A$75M2 3. Mardie Project: peer comparable valuation ~A$100M3 ▪ Current upside plus additional value p
Slide 24: Important Notices
Important Notices This presentation has been prepared by BCI Minerals Limited ABN 21 120 646 924 (“BCI”). For personal use only This document contains background information about BCI current at the date of this presentation. The presentation is in summary form, has not been independently verified a
Slide 25: Appendix
For personal use only Appendix
Slide 26: BCI Board and Management
BCI Board and Management Brian O’Donnell Alwyn Vorster Tony Chamberlain For personal use only Non-Executive Chairman Managing Director Project Director ➢ Director, Finance and Investments ➢ Geology, Mining and MBA degrees ➢ Chemistry/Metallurgy degrees for Australian Capital Equity group (PhD) ➢ Kum
Slide 27: Mardie Project Team
Mardie Project Team For personal use only External Support Internal Mardie Team Tony Chamberlain Lead DFS Engineer Project Director ➢ Chemistry / Metallurgy degrees (PhD) ➢ WMC; BHP; Vimy ➢ Feasibility studies; Construction; Operations Ponds & Crystallisers Andrew Wydler Laurie Huck Warwick Jones En
Slide 28: BCI Project Development History
BCI Project Development History BCI has a track record of funding, developing and operating mining projects For personal use only 1. Nullagine Joint Venture – Iron Ore: ▪ Developed from greenfields and operated from 2010-2015 ▪ BCI as manager with Fortescue as 25% partner ▪ BCI paid A$100M dividends
Slide 29: Iron Valley Mine – Royalty Earnings
Iron Valley Mine – Royalty Earnings ▪ For personal use only Quarterly earnings for BCI via royalty agreement with Mineral Resources Ltd (MIN) – BCI EBITDA of A$12M in first FY19, A$6M in FY18 and A$18M in FY17 ▪ 95Mt Reserves; 6-8Mtpa iron ore operation; 50% lump production; potential mine life of ~
Slide 30: Buckland Iron Ore Project
Buckland Iron Ore Project ▪ Shovel-ready, iron ore development project in the West For personal use only Pilbara ▪ Close proximity to other significant undeveloped West Pilbara deposits (numerous APIJV deposits, MinRes’ Kumina deposit and Flinders’ Pilbara Iron Ore Project) ▪ Ore Reserve of 134.3Mt
Slide 31: For personal use only
For personal use only T +61 8 6311 3400 Level 2, 1 Altona St GPO Box 2811 E info@bciminerals.com.au West Perth WA 6005 West Perth WA 6872 W www.bciminerals.com.au
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