Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — Investor Presentation (October 2016)
27 slides from Bci Minerals's investor presentation, Oct 13, 2016
Slide 1: Entitlement Offer: Resetting BC Iron for Growth
For personal use only Entitlement Offer Resetting BC Iron for Growth 13 October 2016 1
Slide 2: Important Notices
Important Notices For personal use only This presentation has been prepared by BC Iron Limited ABN 21 120 646 924 (“BC Iron”). This document contains background information about BC Iron current at the date of this presentation. The presentation is in summary form, has not been independently verifie
Slide 3: Investment Highlights
Investment Highlights For personal use only Unique pipeline of assets from exploration to operating mine (including multiple royalties) CURRENT ASSETS Low-risk earnings from Iron Valley Potential future value from the Buckland Project’s proposed mine and port infrastructure Binding terms she
Slide 4: Rationale and Use of Proceeds
Entitlement Offer – Rationale and Use of Proceeds For personal use only BCI is currently transitioning to a new phase, ‘resetting for growth’ and focusing activities on actively generating value from existing assets while also considering, in a disciplined manner, other new opportunities Rationale
Slide 5: Details
Entitlement Offer – Details For personal use only Pro-rata renounceable entitlement offer of 1 Share for every 1 Share held at an issue price of Offer A$0.13 per Share to raise approximately A$25.5M (“Offer”) Rights trading allows Shareholders to sell Entitlements or purchase additional Entitlem
Slide 6: Indicative Timetable
Entitlement Offer – Indicative Timetable1 For personal use only Item Date Announcement of Offer 13 October 2016 "Ex" Date (date Shares are quoted ex-rights) 20 October 2016 Record Date to determine Entitlements 5.00pm (WST) 21 October 2016 Prospectus sent to Shareholders and Offer opens 26 October 2
Slide 7: Pro-forma Information
Entitlement Offer – Pro-forma Information For personal use only 30-Jun-16 Net 30-Jun-16 Pro-Forma Balance Sheet Proceeds Pro-forma Pro-Forma Capital Structure Number A$000’s A$000’s A$000’s Cash and cash equivalents 9,450 24,300 33,750 Shares currently on issue 196,263,455 Trade and other receivable
Slide 8: 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 Entitlement offer to raise A$25.5M Maximise value of Target new existing assets assets Soli
Slide 9: Corporate Overview
Corporate Overview For personal use only Capital Structure Board Ordinary Shares 196.3m Tony Kiernan Non-Executive Chairman Share Price (at 10-Oct-16) $0.215 Alwyn Vorster Managing Director Market Capitalisation $42.2m Martin Bryant Non-Executive Director Cash (30-Jun-16) $9.5m Andy Haslam Non-Execu
Slide 10: Project Location
For personal use only Project Location 10
Slide 11: Assets Across all Phases of Development Pipeline
Assets Across all Phases of Development Pipeline BCI is differentiated from most other small cap companies For personal use only Feasibility / Exploration Construction Operation Development Pilbara Tenements • Gold / base metals Buckland Iron Valley Mine-to-Port • Iron ore Project • Salt 3 x Iron Or
Slide 12: 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 Low-risk cash flows for BCI (contractual safeguar
Slide 13: Iron Valley Key Metrics
Iron Valley Key Metrics Strong recent operating and financial performance For personal use only FY16 – 6.5M wmt shipped FY16 – BCI revenue of A$39.9M and EBITDA of A$10.2M A$3.4M EBITDA for first two months of FY17 from shipments of 1.4M wmt Iron Valley Quarterly Shipments (M wmt) BCI Quarterl
Slide 14: Nullagine Overview
Nullagine Overview BCI plans to sell its 75% Nullagine interest to FMG for an ongoing royalty For personal use only Unincorporated joint venture – 75% BCI, 25% FMG Binding term sheet to sell 75% interest in Nullagine to FMG Sale will eliminate BCI holding costs and existing liabilities (incl.
Slide 15: Buckland Mine-to-Port Project Overview
Buckland Mine-to-Port Project Overview Strategic 100% owned mine and port infrastructure project For personal use only Proposed mine at Bungaroo South, private haul road linking the mine with proposed transhipment port at Cape Preston East All major permits and approvals secured for mine, road a
Slide 16: 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 BCI holds port lease agreements with the Pilbara Ports Authority (“PPA”) Right to construct and operate onshore & marine facilities of 20Mtpa for an initial term of
Slide 17: 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 18: Summary
Summary For personal use only Unique development pipeline of assets from exploration to operations BCI believes current assets have significant potential value upside Targeting new opportunities with early cash flow potential Strong support from major shareholder New & experienced Manageme
Slide 19: Risk Factors: Risks Specific to the Offer
Entitlement Offer – Risk Factors For personal use only Risks Specific to the Offer Control Wroxby may increase its voting power in the Company to a maximum of 40.76% on completion of the Offer depending on take up by Shareholders of their Entitlements. As the Offer may have a significant effect on t
Slide 20: Risk Factors: Risks Specific to the Company
Entitlement Offer – Risk Factors For personal use only Risks Specific to the Company Foreign exchange risk The Company holds some of its cash on hand in US dollars, whilst costs and revenue received from the Iron Valley project are mainly in Australian dollars. Movements in the AUD:USD exchange rate
Slide 21: Risk Factors: Nullagine divestment
Entitlement Offer – Risk Factors For personal use only Nullagine divestment As announced on 10 October 2016 the Company has entered into a legally binding conditional terms sheet for the disposal of the Company’s interest in the Nullagine project (and related assets). That agreement is subject to an
Slide 22: Risk Factors: Operating and development risks
Entitlement Offer – Risk Factors For personal use only Operating and development risks MIN is the operator of the Iron Valley mine. The ability of MIN to achieve production targets within anticipated time lines, or at all, or meet operating and capital expenditure estimates cannot be assured. The Co
Slide 23: Risk Factors: Exploration risk
Entitlement Offer – Risk Factors For personal use only Exploration risk Exploration activities are speculative by nature and therefore are often unsuccessful. Such activities also require substantial expenditure and can take several years before it is known whether they will result in additional min
Slide 24: Risk Factors: Cape Preston East vesting
Entitlement Offer – Risk Factors For personal use only Cape Preston East vesting The rights of the Company under its agreement with the PPA for the proposed port at Cape Preston East remain conditional upon the satisfaction of a number of matters, including the State of Western Australia vesting the
Slide 25: Risk Factors: Labour market and key personnel
Entitlement Offer – Risk Factors For personal use only Labour market and key personnel risks The Company is dependent upon a number of key management personnel and executives to manage the day-to-day requirements of its businesses. Although Company enters into employment and incentive arrangements w
Slide 26: Risk Factors: Economic conditions
Entitlement Offer – Risk Factors For personal use only Economic conditions The operating and financial performance of the Company is influenced by a variety of general economic and business conditions, including levels of consumer spending, oil prices, inflation, interest rates and exchange rates, s
Slide 27: 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) 27