Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — Investor Presentation (September 2016)
26 slides from Bci Minerals's investor presentation, Sep 6, 2016
Slide 1: Resetting BC Iron for Growth
For personal use only Resetting BC Iron for Growth 6 September 2016 1
Slide 2: Investment Highlights
Investment Highlights For personal use only Unique pipeline of assets from exploration to operating mine (including multiple royalties) CURRENT ASSETS Low-risk annual Iron Valley earnings (FY17 EBITDA guidance: $6-16M) Upside potential from a Nullagine operations restart or value realisation t
Slide 3: BCI Strategy on a Page
BCI Strategy on a Page Generate value from multiple assets as a disciplined minerals portfolio manager For personal use only Strategy and internal restructure Reset BC Iron External litigation settled Maximise value of Target new existing assets assets 1. Iron Valley Solid, low-risk earnings 4
Slide 4: Overview of Key Assets
Overview of Key Assets Cape Preston East Port For personal use only Tenure 20 year lease Status Development ready2 Capacity 20Mtpa Nullagine Ownership 75% Temporary Status suspension Bungaroo South Capacity 6 Mtpa Buckland Project DSO Reserves1 21.6Mt @ 56.6% Fe Ownership 100% Optimising Status Feas
Slide 5: Assets Across all Phases of Development Pipeline
Assets Across all Phases of Development Pipeline BCI is differentiated from small cap companies For personal use only Feasibility / Exploration Construction Operation Development Pilbara Tenements • Gold / base metals Buckland Mine- Iron Valley • Iron ore to-Port Project • Salt 3x Iron Ore Royalty T
Slide 6: ASX Iron Ore Comparison
ASX Iron Ore Comparison BCI’s enterprise value per tonne of Resources and Reserves is low relative to peers For personal use only EV/Resource (A$/dmt Contained Fe) 0.5 2.76 Enterprise Value 26.4 0.4 Contained Fe (M dmt) 329.6 0.31 0.30 EV/Resource (A$/dmt) 0.08 0.3 0.2 0.16 0.14 0.12 0.09 0.1 0.08 0
Slide 7: BCI Objective – Derisk and Maximise Project Value
BCI Objective – Derisk and Maximise Project Value BCI’s task is to convert unrecognised project value into real project value For personal use only Current Projects Enhance Market View Generate Value Generate Value Potential Projects New Assets Valuation of Iron Valley from NJV from Buckland Valuati
Slide 8: Corporate Overview
Corporate Overview For personal use only Capital Structure Board and Management Ordinary Shares 196.3m Tony Kiernan Non-Executive Chairman Share Price (at 2-Sep-16) $0.140 Martin Bryant Non-Executive Director Market Capitalisation $27.5m Andy Haslam Non-Executive Director Cash (30-Jun-16) $9.5m Bria
Slide 9: Iron Valley Overview
Iron Valley Overview Operating mine with low-risk BCI earnings from royalty payments For personal use only Royalty-type agreement with Mineral Resources Limited (MIN) BCI retains tenement ownership MIN operates the mine entirely at MIN’s cost MIN buys ore from BCI at a price linked to MIN’s
Slide 10: Iron Valley Key Metrics
Iron Valley Key Metrics For personal use only Record quarterly EBITDA for BCI in Q2 CY16 of Iron Valley Quarterly Shipments (M wmt) 2.0 A$4.6M (resulting from favourable contractual revision) FY16 results – 6.5M wmt shipped 1.5 BCI revenue of A$39.9M and EBITDA of A$10.2M 1.0 FY17 guidance –
Slide 11: Nullagine Overview
Nullagine Overview Mine with access to world-class infrastructure For personal use only Located ~55km north of FMG’s Christmas Creek Unincorporated joint venture – 75% BCI, 25% FMG Capacity to export up to 6Mtpa on FMG’s rail and port infrastructure JORC Ore Reserves of 21.6Mt at 56.6% Fe1
Slide 12: Buckland Mine-to-Port Project Overview
Buckland Mine-to-Port Project Overview Strategic 100% owned mine and port infrastructure project For personal use only West Pilbara hosts significant undeveloped deposits including APIJV’s West Pilbara Iron Ore Project 100% owned mine-to-port development project, incl. independent infrastructure
Slide 13: Cape Preston East Port Overview
Cape Preston East Port Overview Cape Preston East can become a strategic, low capital cost transhipment port For personal use only Existing Cape Preston Port (CITIC Pacific) BCI holds port lease agreements with the Pilbara Ports Authority (“PPA”) Right to construct and operate onshore & marine f
Slide 14: Industry Outlook
Industry Outlook For personal use only IRON ORE OTHER MINERALS Large Pilbara deposits depleting at a fast A$ gold price at record levels with positive rate and ore quality is deteriorating outlook significantly Base metals prices still lagging but potential End-users will continue to support
Slide 15: Commodities Outlook
Commodities Outlook For personal use only 1 2 3 4 5 6 7 Graphite • Arrow presents 2-year outlook • Preferred entry in 4-6; Higher risks in 7-2 BCI to selectively target commodities with favourable long term dynamics, near term earnings potential, and attractive valuation parameters Note: Adapted fro
Slide 16: New Opportunities
New Opportunities BCI is also actively considering new projects and other commodities For personal use only Rationale: Create growth opportunities Diversify commodity exposure and risk profile BCI tenement exploration New project opportunities Current BCI tenements in Pilbara are prospective for
Slide 17: BCI Exploration Tenements and Royalties
BCI Exploration Tenements and Royalties For personal use only Portfolio of exploration projects that are prospective for iron ore, gold, base metals and salt Potential iron ore royalty over Rio Tinto- owned Koodaideri South tenement Potential deferred payments / royalties over AAMC’s iron ore
Slide 18: Board and Management
Board and Management For personal use only Tony Kiernan – Non-Executive Chairman Brian O’Donnell – Non-Executive Director Former solicitor with over 35 years’ experience in the 30 years’ experience in the finance and investment management and operation of listed companies industry, including in
Slide 19: BCI – Key Skills to Deliver Value
BCI – Key Skills to Deliver Value BCI has an experienced team (directors, senior managers and direct associates) with a For personal use only successful leadership track record across multiple commodities and across the mining development pipeline Studies & Exploration Construction Operations Market
Slide 20: BCI - Potential Financial Outlook
BCI - Potential Financial Outlook BCI can be cash positive during the next financial year For personal use only A$M Base Case High Case EBITDA from Iron Valley (as per guidance) 111 16 Nullagine suspension costs and commitments (2) (1) Nullagine (net of rehab liability) – via restart or divestment 0
Slide 21: Summary
Summary For personal use only New & experienced Management Team Unique development pipeline of assets from exploration to operations Focused on maximising value of existing assets Targeting new opportunities with early cash flow potential Strong support from major shareholder 21
Slide 22: Appendices
For personal use only Appendices 22
Slide 23: BCI Resources & Reserves
BCI Resources & Reserves For personal use only Mineral Resource at 30 June 2016 (BCI Share) Cut-off Tonnes Fe CaFe SiO2 Al203 P LOI Project (% Fe) (Mt) (%) (%) (%) (%) (%) (%) Iron Valley (100%) 50 238.7 58.4 62.8 5.2 3.2 0.17 7.0 Nullagine – CID (75%) 45 56.6 53.3 60.7 5.1 4.2 0.019 11.9 Buckland (
Slide 24: Important Notices
Important Notices For personal use only This document has been prepared by BC Iron Limited (“BC Iron”) to provide an update regarding the companies to investors. Past performance Past performance information given in this document is given for illustrative purposes only and should not be relied upon
Slide 25: Important Notices
Important Notices For personal use only Ore Reserves and Mineral Resources disclosures The information in this announcement that relates to Mineral Resources and Ore Reserves at the Nullagine Joint Venture is extracted from the ASX announcement entitled BC Iron Mineral Resources and Ore Reserves dat
Slide 26: For personal use only
For personal use only Iron Valley Nullagine Level 1, 15 Rheola Street West Perth, WA, Australia Phone : +61 8 6311 3400 Email : info@bciron.com.au Web : www.bciron.com.au Bungaroo South (Buckland) 26