Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — Macquarie Australia Conference 2014
26 slides from Bci Minerals's conference presentation, May 6, 2014
Slide 1: ASX cover letter for Macquarie Conference presentation
6 May 2014 For personal use only The Manager Company Announcements Office Australian Securities Exchange Dear Sir, BC Iron Limited (ASX:BCI) Following is a presentation on BC Iron Limited which will be given by Chief Financial Officer Chris Hunt at the Macquarie Australia Conference in Sydney on 7 M
Slide 2: Macquarie Conference Presentation
For personal use only Macquarie Conference Presentation Chris Hunt – Chief Financial Officer 1 ASX:BCI 7 May ‘14
Slide 3: Optimising the NJV | Paying dividends | Considering growth
For personal use only Optimising the NJV | Paying dividends | Considering growth 2
Slide 4: Attractive Investment Proposition
ATTRACTIVE INVESTMENT PROPOSITION For personal use only Scale & liquidity: Market cap and liquidity significantly enhanced post Dec-12. Now an ASX200 member TSR focus: Outperformed peers on TSR basis since Jul-12 Capital management: Robust balance sheet, conservative gearing, ongoing dividends
Slide 5: March 2014 Quarter Review
MARCH 2014 QUARTER REVIEW For personal use only NJV sales of 1.22Mt Exceeded wet season guidance of 1.13Mt Platts CFR62 price of BCI share of sales of 0.76Mt (62% of NJV total) US$105/dmt on 2 May 14 Short term variances from 75% arise due to logistics planning and offtake commitments FY14 C
Slide 6: NJV Operational Performance
NJV OPERATIONAL PERFORMANCE For personal use only Ore Mined (dmt) Ore Processed (wmt) Ore Shipped (wmt) 1.8 1.8 1.8 1.6 1.6 1.6 1.4 1.4 1.4 1.2 1.2 1.2 1.0 1.0 1.0 0.8 0.8 0.8 0.6 0.6 0.6 0.4 0.4 0.4 0.2 0.2 0.2 0.0 0.0 0.0 5 The NJV budgets for reduced production during the March quarter (Q3) due t
Slide 7: Corporate Overview
CORPORATE OVERVIEW For personal use only Capital Structure Share Price and Volume Ordinary Shares 124.0m $5.50 7 Share Price (at 5-May-14) $4.20 $5.00 6 $4.50 5 Market Capitalisation $521m Volume (m) Share Price $4.00 4 Cash (at 31-Mar-14) $149m $3.50 3 Debt (at 31-Mar-14) $65m $3.00 2 Enterprise Va
Slide 8: Peer Comparison
PEER COMPARISON For personal use only Total Shareholder Return – 1 Jul 12 to Current Why has BC Iron outperformed its peers? 98% Quality project with low capital intensity Low risk 3% Continued strong operational performance (7%) (46%) Strong management and appropriate capital (54%) (87%) st
Slide 9: Dividends and Dividend Guidance
DIVIDENDS AND DIVIDEND GUIDANCE For personal use only FY14 FY13 FY13 FY12 Interim Dividend Final Dividend Interim Dividend Full Year Dividend1 Dividend (cps) 17 30 5 15 Franking Fully franked Fully franked Fully franked Fully franked Total Dividend ($M) 21.1 37.1 6.2 15.6 Payout Ratio (% Statutory N
Slide 10: Nullagine Joint Venture (NJV)
NULLAGINE JOINT VENTURE (NJV) For personal use only A producing DSO project with access to world-class infrastructure. Unincorporated joint venture – 75% BC Iron, 25% FMG BC Iron is the Operator and Manager of the NJV FMG provides rail & port services (through its wholly-owned infrastructure s
Slide 11: Mining – Overview
MINING – OVERVIEW For personal use only A fully contracted operation with low capital intensity. Contract mining by WATPAC, utilising Vermeer and Wirtgen surface miners Mine plan comprises four major deposits Currently mining Outcamp and Warrigal Bonnie East contributes from FY16 and Coongan
Slide 12: Mining – Overview
MINING – OVERVIEW For personal use only Mining Area Bottom of Orebody Water Table Shallow “pits” using surface mining Above water table - lower environmental 11 impact, no wet ore.
Slide 13: Mining – Surface Miners
MINING – SURFACE MINERS For personal use only Mesa edge bund wall Surface miner cut panel Ore block piles Vermeer & Wirtgen Surface Miners Rotating drum cutters – no drill & blast Environmental benefits, reduced run off 12 Provides primary crushing Surface mining results in reduced equipment
Slide 14: Processing and Logistics
PROCESSING AND LOGISTICS For personal use only Crushing / Screening (WATPAC) Road Haulage (Toll & Roadtrim) Rail and Port Services (FMG/TPI) Simple crushing & screening Ore trucked via private sealed World class rail and port process road to dedicated stockyard at Access to Capesize vessels
Slide 15: Project Inventory
PROJECT INVENTORY For personal use only Assessing potential for increases in Reserves and mine life Targeting in-pit low grade… … and near- Targeting a mine life extension of 2 to 5 years pit low grade Focus on beneficiation of low grade (50-55% Fe) Potential to increase Reserves and mine li
Slide 16: Iron Ore Outlook and China
IRON ORE OUTLOOK AND CHINA For personal use only Short term pricing pressure, but long term fundamentals remain strong. Iron ore prices have been volatile in CY14 to date and trending downwards Demand affected by steel mill profitability, increasing environmental constraints and tightening finan
Slide 17: Bonnie Fines Overview
BONNIE FINES OVERVIEW For personal use only Bonnies Fines well accepted - consistent demand. “Bonnie Fines” pisolite sinter blend improves sintering productivity at the steel mill High calcined Fe driven by high Loss On Ignition (LOI) Low impurities, low ultra-fines and low moisture Low Al a
Slide 18: Bonnie Fines Marketing & Pricing
BONNIE FINES MARKETING & PRICING For personal use only BCI Attributable Tonnes BCI CFR Received Price vs. Platts CFR62 Price $200 Bonnie Fines $180 Iron Ore Price (US$/dmt) $160 $140 ~3.2Mtpa til 2018 ~1.3Mtpa til 2018 ~4.5Mtpa thereafter Nil thereafter $120 $100 Uncommitted ore Henghou commitment T
Slide 19: Business Development
BUSINESS DEVELOPMENT For personal use only Goals Retain and enhance ability to pay dividends Generate value for shareholders (risk adjusted) via organic and inorganic opportunities Business Development Priorities Extend life of the NJV Priority 1 (Project Inventory) Growth in the rest of Priorit
Slide 20: Brazil Exploration Earn-In
BRAZIL EXPLORATION EARN-IN For personal use only BC Iron / Cleveland alliance staged earn-in to exploration projects in Bahia and Minas Gerais No upfront payments and appropriately staged expenditure and payments provides optionality First pass RC drilling completed at 5 prospects in Bahia S
Slide 21: Appendices
APPENDICES For personal use only APPENDICES 20
Slide 22: BC Iron Limited – Board
BC IRON LIMITED – BOARD For personal use only Board of Directors Tony Kiernan, Non-exec Chairman – formerly a solicitor Andy Haslam, Non-exec Director – a mining engineer with extensive experience in management and operation with 27 years operational and management experience. of Australian public c
Slide 23: Ore Reserves & Mineral Resources - Dec '13
ORE RESERVES & MINERAL RESOURCES - 31 DEC ‘13 For personal use only Ore Reserve Estimate NJV (BC Iron 75%, FMG 25%) Classification Mt Fe% CaFe% Al2O3% SiO2% P% S% LOI Proved 15.0 57.3 65.0 1.8 2.9 0.014 0.012 11.9 Probable 18.3 56.9 64.8 2.0 3.0 0.014 0.011 12.2 Total 33.3 57.1 64.9 1.9 3.0 0.014 0.
Slide 24: Important Notice
IMPORTANT NOTICE For personal use only This document has been prepared by BC Iron Limited (“BC Iron” or “Company”) to provide an update of BC Iron to investors and potential new shareholders. Past performance Past performance information given in this document is given for illustrative purposes only
Slide 25: Optimising the NJV | Paying dividends | Considering growth
For personal use only Optimising the NJV | Paying dividends | Considering growth 24
Slide 26: For personal use only
For personal use only ASX:BCI Level 1, 15 Rheola Street West Perth, WA, Australia Phone : +61 8 6311 3400 email : info@bciron.com.au www.bciron.com.au