Slide 1: Company Announcements Office cover note
5 September 2012 For personal use only Company Announcements Office Australian Securities Exchange BC Iron Limited (ASX: BCI) Please find attached Company Presentation in relation to the 30 June 2012 full year results. Regards Linda Edge Company Secretary
Slide 2: Full Year Results – 30 June 2012
Full Year Results – 30 June 2012 5 September 2012 For personal use only Mike Young – Managing Director Morgan Ball – Finance Director
Slide 3: BC Iron is an iron ore mining company
For personal use only AN IRON ORE MINING COMPANY BC Iron is an iron ore mining company Points of difference Focused on development since 1H 2007: Production at ‘steady state’ at 5Mtpa Joint Venture with Fortescue Metals Group Quality product – “Bonnie Fines” Direct Ship Ore – CID pisolite
Slide 4: FY2012 – Year in Review
For personal use only FY2012 – YEAR IN REVIEW Key achievements of BC Iron & NJV for FY2012: • Mined and shipped record tonnes across all four quarters • Achieved EBITDA of $68.8M for FY2012 • Cash balance doubles in Q4 to $92.8M at end off FY12 • Exceeded FY2012 guidance targets (100% JV): • Exports
Slide 5: Delivering Results NJV - FY2012
DELIVERING RESULTS NJV - FY2012 For personal use only 4
Slide 6: FY2012 – Financial Highlights
For personal use only FY2012 – FINANCIAL HIGHLIGHTS • Cash balance at 30 June 2012 of $92.8M • Record revenues of $205M and EBITDA of $68.8M • Net profit after tax of $50.6M • C1 costs of ~$53 per wmt for FY2012 trending strongly downwards as ramp-up completed • Maiden dividend of 15.0 cents per sha
Slide 7: FY11 to FY12 – EBITDA Analysis
For personal use only FY11 to FY12 – EBITDA ANALYSIS 6
Slide 8: FY2012 – Earnings Analysis
For personal use only FY2012 – EARNINGS ANALYSIS 7
Slide 9: FY2012 - Company Performance
For personal use only FY2012 - COMPANY PERFORMANCE Full Year ended 30 June 2012 ($m) June June Variance Variance 2012 2011 NIOJV (100%) Tonnes Shipped (millions – wmt) 3.55 0.25 3.25 1,320% Average CFR price realised ($USD/dmt) $124 $161 -$37 (30%) BC IRON Revenue watch 204.5 19.1 185.4 971% EBITDA
Slide 10: Company History
For personal use only COMPANY HISTORY 2006 to 2012: Rapid Growth 2006 – Listing on ASX 2007 – Discovery of DSO iron ore at Outcamp Well 2008-2009 – Drilling, Feasibility, JV with FMG 2010 – Construction and Mining commences 2011 – Iron ore exports commence & maiden profit 2012 – Name pla
Slide 11: Company Snapshot
For personal use only COMPANY SNAPSHOT Shareholders Capital Structure Consolidated Minerals 24 % Ordinary Shares 103.9m Regent Pacific 23 % Market Cap at $2.50 ~$260m Henghou Ningbo 10 % Cash as at 30 June 2012 $92.8m Debt $16.7m BC Iron Directors 3% Institutions 21 % Enterprise Value ~$185m Top 20
Slide 12: BC Iron Limited - Board
For personal use only BC IRON LIMITED - BOARD Board of Directors Tony Kiernan, Non-exec Chairman – formerly a solicitor Terry Ransted, Non-exec Director – a geologist with with extensive experience in management and operation Alkane Resources managing exploration and of Australian public companies.
Slide 13: BC Iron Project Location
For personal use only BC IRON PROJECT LOCATION Nullagine Iron Ore Project Joint Venture with Fortescue (50:50) The Project is located 55 km north of Fortescue’s Christmas Creek (CC) Operations Ore is trucked to CC, then railed to Port Hedland for export via Fortescue’s port infrastructure Mi
Slide 14: Nullagine Joint Venture
For personal use only NULLAGINE JOINT VENTURE Nullagine Joint Venture BC Iron is the operator and Manager of the JV 50/50 share of revenue and costs Contract mining, haulage, rail & port Fortescue provide marketing services Ramp-up complete all activities now at “steady state” Expect t
Slide 15: Geology at Outcamp Deposit
For personal use only GEOLOGY AT OUTCAMP DEPOSIT Current Mining Area Bottom of Orebody Water Table Shallow “pits” using surface mining – ore from start of operations Above water table - lower environmental impact, no wet ore. 14
Slide 16: Mining at Outcamp Deposit
For personal use only MINING AT OUTCAMP DEPOSIT Mining panels with Mined material in stocks Surface Miners Wirtgen & Vermeer Surface Miners Rotating drum cutters – no drill & blast Provides primary crushing Surface results in reduced equipment wear Cut material 5 units on site – spare capaci
Slide 17: BC Iron - Contract Partners
For personal use only BC IRON - CONTRACT PARTNERS WATPAC Mining - Crushing & screening Following upgrades now at ~5.8 Mtpa 2 Vermeer & 3 Wirtgen surface miners Toll Holdings - PowerTrans Pit Haulers 55 km dedicated bitumen haul road 8 units on site 3 x standby units available (110t triples
Slide 18: Production Rates
For personal use only PRODUCTION RATES 16 Ore Mined 14 Waste Mined million tonnes 12 10 8 6 4 2 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Past and forecast production FY12 to FY21 FY22 DSO+BBSO Production capacity rate at 5Mtpa steady state production LOM strip ratio of 1:1 Maxim
Slide 19: Forecast Costs
For personal use only FORECAST COSTS Price 31 August US$90.50 Targeted OpEx Source: Macquarie Research Forecast costs FOB cash operating costs estimated at $45 to $50 per tonne over LOM - varies with waste/ore ratio FY13 cash costs expected to be at lower end of LOM range Cash costs exclude St
Slide 20: China Drivers – Steel Intensity
For personal use only CHINA DRIVERS – STEEL INTENSITY Source: Drysdale & Hurst (2012) – www.eaber.org 19
Slide 21: China Drivers – Steel Intensity
For personal use only CHINA DRIVERS – STEEL INTENSITY Australia GDP per capita $65,477 Australia steel intensity 261kg per capita Australia population 22.7m Source: Drysdale & Hurst (2012) – www.eaber.org 20
Slide 22: Bonnie Fines
For personal use only BONNIE FINES - West Australian - Channel Iron Deposits Customer ratings of "Bonnie Fines" Element Grade Comments Rating “Bonnie Fines” pisolite sinter blend improves Fe 57.0% Typical for Channel Iron ✔ sintering productivity at the steel mill Deposit (CID) Low. Typically allo
Slide 23: Marketing Bonnie Fines
For personal use only MARKETING BONNIE FINES “Bonnie Fines” highly competitive Alumina and Silica grades 22
Slide 24: Marketing Bonnie Fines
For personal use only MARKETING BONNIE FINES “Bonnie Fines” Phosphorus Grades amongst the world’s lowest DSO 23
Slide 25: Business Development
For personal use only BUSINESS DEVELOPMENT A Pilbara iron ore miner Priority 1 Rapid development history - Focus Ore Reserve increase 10mt during FY12 Focused on resource development & Project Inventory underway – 2H FY13 ore production – Cash generation Priority 2 Established relationship
Slide 26: Reserves and Resources
For personal use only RESERVES AND RESOURCES Proved and Probable Ore Reserves NJV (BC Iron 50%, Fortescue 50%) Ore Reserves Deposit Mt Fe% CaFe% Al2O3% SiO2% P% S% LOI Proved 13 57.3 65 1.8 3.1 0.013 0.013 11.9 Probable 28 57 64.8 2 3.1 0.016 0.011 12.1 Total 41 57.1 64.9 1.9 3.1 0.015 0.012 12 DSO
Slide 27: Supporting Statements
SUPPORTING STATEMENTS For personal use only JORC Competent Persons Statement The information that relates to the Mineral Resource Estimate at Outcamp, Coongan, and Warrigal has been compiled by Mr Mike Young who is a Member of the Australian Institute of Geoscientists and an employee of BC Iron, and
Slide 28: BC Iron Limited
BC IRON LIMITED Mining iron ore. Growth through cash flow. For personal use only Level 1, 15 Rheola Street West Perth, WA, Australia Phone : +61 8 6311 3400 email : info@bciron.com.au www.bciron.com.au