Blackstone Minerals Ltd · ASX:BSX
Blackstone Minerals — Investor Presentation (June 2021)
35 slides from Blackstone Minerals's investor presentation, Jun 2, 2021
Slide 1: BSX Investor Presentation
BSX INVESTOR PRESENTATION ASX:BSX June 2021 1
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT The Scoping Study at Ta Khoa, referred to in this announcement, has been undertaken to determine the potential to restart the Ta Khoa Nickel-Cu-PGE project and develop downstream processing This report contains forward-looking statements which are identified by words such as ‘ma
Slide 3: Investment Thesis
INVESTMENT THESIS Exposure to rapidly intensifying green electrification Cathode Production Capacity* (kt) vs Nickel Demand (kt) movement - 500 1,000 1,500 2,000 2,500 ▪ Blackstone provides excellent exposure to the growing Electric Vehicle (EV) and Li-ion battery thematic ▪ Once in a generation opp
Slide 4: Corporate Snapshot
CORPORATE SNAPSHOT BLACKSTONE MINERALS LIMITED BOARD OF DIRECTORS ASX Code BSX Scott Williamson Hamish Halliday Andrew Radonjic Alison Gaines Hoirim Jung OTCQX Code BLSTF Shares on Issue 331.8m Last Share Price (1 June 2021) $A0.35 Market Capitalisation A$116m Managing Non-Executive Non-Executive No
Slide 5: Strong Macro Tail Winds
STRONG MACRO TAIL WINDS NICKEL DEMAND DRIVERS Significant amounts of capital committed (existing, under construction and planned) into production of high nickel content cathodes. Forecast Cathode Market Composition - 2025 8% 16% 8% 68% NCM NCA LFP Other Source: Benchmark Minerals Intelligence Nickel
Slide 6: Unique Business Model
UNIQUE BUSINESS MODEL INTEGRATION OF NICKEL SUPPLY CHAINS Mine Security of supply concern is driving investment further upstream into Li-ion battery supply chains Ore → Concentrate Top 10 cathode producers globally* Ecopro BM Chemical Refinery LG Chem Concentrate → MHP → Precursor NCM Nichia Chemica
Slide 7: Competitive Operating Advantage: Attractive Product Pricing
COMPETITIVE OPERATING ADVANTAGE ATTRACTIVE PRODUCT PRICING The PFS refinery design will enable the production of multiple products, including NCM 811 which attracts a strong premium to metal prices. Illustration of Nickel Product Payability vs Metal Spot Price Blackstone will be able to process and
Slide 8: Competitive Operating Advantage: Vietnam Low Labor Costs
COMPETITIVE OPERATING ADVANTAGE VIETNAM HAS SOME OF THE LOWEST LABOR COSTS IN THE WORLD Low labor costs are a competitive advantage for Blackstone’s DBU and make Vietnam an ideal location for a future EV manufacturing hub. Manufacturing labor costs per hour (in US$) 2.99 2.91 Vietnam 2.73 2.55 2.38
Slide 9: Competitive Operating Advantage: Green Credentialed Nickel Products
COMPETITIVE OPERATING ADVANTAGE GREEN CREDENTIALED NICKEL PRODUCTS OEMs are demanding Li-ion batteries sourced from green nickel™ supply chains. The industry will be willing to pay a premium for responsibly sourced green nickel™. Carbon intensity (CO2/ t ore mined) Coal / diesel powered mine sites a
Slide 10: Upstream Business Unit
1. UPSTREAM UPSTREAM BUSINESS UNIT Blackstone – Listed Co 100% 100% 1. Upstream Downstream 2. Downstream Business Partner(s) Business Unit Unit (UBU) (DBU) Future Asset Investments 90% Future Alliances Alliance 1 Alliance 2 Alliance 3 Alliance 4 Ta Khoa - Vietnam NCM precursor production The Upstrea
Slide 11: Timeline: Upstream Business Milestones
TIMELINE UPSTREAM BUSINESS MILESTONES Multiple active drill rigs targeting Massive Sulfide Vein (MSV) and Disseminated Sulfide (DSS) prospects, intended to support the restart of the existing concentrator and subsequent construction of a new 4Mtpa concentrator Restart MSV & DSS DFS Mining & Commerci
Slide 12: District Scale Nickel Sulfide Opportunity – Ta Khoa Project
DISTRICT SCALE NICKEL SULFIDE OPPORTUNITY – TA KHOA PROJECT AGGRESSIVE EXPLORATION TARGETING HIGH GRADE MSV & DSS MINE LIFE EXTENSIONS ▪ District scale Nickel PGE (Cu Co) green nickel™ sulfide project ▪ Limited regional exploration ▪ Target identification and prioritisation within a 5km of existing
Slide 13: Exploration Pipeline
DISTRICT SCALE NICKEL SULFIDE OPPORTUNITY – TA KHOA PROJECT EXPLORATION PIPELINE Suoi Chanh Nam Noi Queen Snake PRODUCTION Suoi Phuc READY CONCEPTUAL Co Muong TARGETS Phai Han Suoi Lap Suoi Hao Ban Phuc* Suoi Phang COMMITTED Resource: 44.3Mt @ 0.52% Ni RESOURCE DRILL TARGET Suoi Tao Ban Chang* DELIN
Slide 14: Ban Phuc Disseminated Open Pit Orebody
DISTRICT SCALE NICKEL SULFIDE OPPORTUNITY – TA KHOA PROJECT BAN PHUC DISSEMINATED OPEN PIT OREBODY Resource update expected in the third quarter of 2021 to support the UBU PFS Blackstone discovered the King Cobra shallow, high grade zone within the Ban Phuc DSS Ban Phuc Mt Ni (%) Cu Co Pd Pt S Ni Cu
Slide 15: Scoping Study Economics
SCOPING STUDY ECONOMICS UNDERPINNED BY THE BAN PHUC DSS OPEN PIT PROVIDING FEEDSTOCK TO ONE DOWNSTREAM REFINERY NPV Mining Resource Life of Mine Free Cash Flow US$665m 4Mtpa 44.3Mt @ 0.52% Ni 8.5 Years US$176mpa @0.5% Ni ▪ Scoping Study represents base case production and economics ▪ Annual NCM Prec
Slide 16: Ban Khoa Has Potential to Add Significant Mine Life
DISTRICT SCALE NICKEL SULFIDE OPPORTUNITY – TA KHOA PROJECT BAN KHOA HAS POTENTIAL TO ADD SIGNIFICANT MINE LIFE ▪ The Ban Khoa prospect is analogous to the Ban Phuc DSS orebody ▪ Blackstone has commenced drilling to delineate DSS resources at Ban Khoa 16
Slide 17: Maiden Resource at Ban Chang (MSV) Expected 2021 Q3
DISTRICT SCALE NICKEL SULFIDE OPPORTUNITY – TA KHOA PROJECT MAIDEN RESOURCE AT BAN CHANG (MSV) EXPECTED IN 2021 Q3 17
Slide 18: Drilling of New EM Conductors at King Snake
DISTRICT SCALE NICKEL SULFIDE OPPORTUNITY – TA KHOA PROJECT DRILLING OF NEW EM CONDUCTORS AT KING SNAKE IS INTERSECTING MASSIVE Ni SULFIDES - RESULTS INDICATE SYSTEM IS OPEN DOWN PLUNGE AND DOWN DIP 18
Slide 19: Taipan (Ta Cuong) Discovery Hole Intersects 20.4m @ 1.35% Ni
DISTRICT SCALE NICKEL SULFIDE OPPORTUNITY – TA KHOA PROJECT TAIPAN (TA CUONG) DISCOVERY HOLE INTERSECTS 20.4m @ 1.35% Ni 19
Slide 20: Significant Existing Infrastructure
SIGNIFICANT EXISTING INFRASTRUCTURE LARGE SCALE, INFRASTRUCTURE ADVANTAGE, EPICENTER OF ASIA ELECTRONICS AND EV MANUFACTURING Resource drill out well advanced Evaluating bulk mining options Mining infrastructure in place Evaluating Down Stream Precursor NCM refinery Ban Phuc DSS Ni PGE (Cu Co) Sulfi
Slide 21: Ta Khoa Project Location and Infrastructure
SIGNIFICANT EXISTING INFRASTRUCTURE TA KHOA PROJECT LOCATION AND INFRASTRUCTURE Existing 450ktpa concentrator Son La Hydropower Plant Hai Phong Port Hoa Binh Hydropower Plant Highway 37 - sealed road to Ta Khoa mine 21
Slide 22: Downstream Business Unit
2. DOWNSTREAM DOWNSTREAM BUSINESS UNIT Blackstone – Listed Co 100% 100% 1. Upstream Downstream 2. Downstream Business Unit Partner(s) Business Unit (UBU) (DBU) Future Asset Investments 90% Future Alliances Alliance 1 Alliance 2 Alliance 3 Alliance 4 Ta Khoa - Vietnam NCM precursor production Blackst
Slide 23: Timeline: Downstream Business Milestones
TIMELINE DOWNSTREAM BUSINESS MILESTONES The immediate priority is to deliver a PFS that considers expanded downstream refinery capacity in Vietnam. FID, Detailed NCM DFS & PFS Offtake, JVs Engineering & Construction Precursor Pilot Plant Design Production 2021 H1 2021 H2 - 2022 H1 2022 H2 2023 2024
Slide 24: Scalable and Modular: Partner Collaboratively on the Downstream
SCALABLE AND MODULAR BLACKSTONE INTENDS TO PARTNER COLLOBORATIVELY ON THE DOWNSTREAM TO MAXIMISE RETURNS Conversion of nickel concentrate into a MHP chemical, and thereafter to Precursor NCM uses established and well understood technology. Proposed PFS Refinery Process Flow Diagram 24
Slide 25: Scalable and Modular: Potential for Multiple JV Partners
SCALABLE AND MODULAR POTENTIAL FOR MULTIPLE JV PARTNERS Ta Khoa Nickel-Cu-PGE Project Third party concentrate M&A Scalable Refinery Multiple JV Partners ▪ Blackstone’s strategy to secure supply will lay the foundations to collaborate with multiple JV partners on the downstream business ▪ Scalable ch
Slide 26: NCM Precursor Trades at a Premium to Metal Spot Prices
COMPETITIVE OPERATING ADVANTAGE NCM 811 PRECURSOR TRADES AT A SIGNIFICANT PREMIUM TO METAL SPOT PRICES Metal Spot Price (US$/t) Raw material cost of 1 tonne of NCM 811 based on metal spot prices 8 1 1 Nickel 18,073 Ni Co Mn OH Cobalt 54,184 US$9,188 US$3,457 US$182 Manganese 3,053 ~51% ~6% ~6% ~37%
Slide 27: Abundant Access to Hydropower Drives Lower Operating Costs
COMPETITIVE OPERATING ADVANTAGE ABUNDANT ACCESS TO HYDROPOWER DRIVES LOWER OPERATING COSTS Vietnam has excellent established infrastructure including hydro power, roads, river and port. Trade-off studies are being completed to assess the optimal location for downstream refineries, all with excellent
Slide 28: Appendices
APPENDICES Suite 3, Level 3, 24 Outram Street, West Perth, WA, 6005 T: +61 8 9425 5217 | F: +61 8 6500 9982 E: admin@blackstoneminerals.com.au | www.blackstoneminerals.com.au 28
Slide 29: Appendix 1 - Blackstone Board
APPENDIX 1 - BLACKSTONE BOARD BEST IN CLASS LEADERSHIP WITH A PROVEN TRACK RECORD OF CORPORATE SUCCESS Scott Williamson Hamish Halliday Andrew Radonjic Alison Gaines Hoirim Jung Managing Director Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Mining Engin
Slide 30: Appendix 2 - Management Team
APPENDIX 2 - MANAGEMENT TEAM DRIVING THE DEVELOPMENT OF TA KHOA AS A MINE-TO-MARKET NICKEL BUSINESS Jamie Byrde Steve Ennor CFO & Company Secretary GM Project Development Ta Khoa Project Chartered Accountant with more than 16 years’ experience in accounting, company Metallurgist with 30 years of exp
Slide 31: Appendix 3 - Management Team with International Experience
APPENDIX 3 – MANAGEMENT TEAM WITH INTERNATIONAL EXPERIENCE ACROSS MULTIPLE REGIONS 31
Slide 32: What Do We Mean by Green Nickel?
APPENDIX 4 - WHAT DO WE MEAN BY GREEN NICKEL™? Pressure Renewable Oxidation Power Leach Flowsheet Vertically Fossil Fuel Integrated Replacement Value Chain Sulfide Green Corporate commitment Nickel Nickel™ to ESG 32
Slide 33: Targeting Zero Carbon Mining
APPENDIX 5 -TARGETING ZERO CARBON MINING The Electric Mine Consortium ▪ Blackstone is targeting fully electrified, zero carbon mining at Ban Phuc ▪ In April 2021, Blackstone joined the Electric Mine Consortium ZERO FULLY ▪ EMISSION ELECTRIC The Electric Mine Consortium’s vision: ENERGY FLEET ▪ A zer
Slide 34: Our Partner
APPENDIX 6 – OUR PARTNER ▪ Spun off from its parent company ECOPRO in May 2016 ▪ Main Business Areas ▪ Cathode Active Material ▪ Precursor ▪ Specialization in cathode materials ▪ Leads the high-volume cathode material market at home and abroad, based on its success in developing and mass-producing h
Slide 35: Competent Person Statement
COMPETENT PERSON STATEMENT The information in this report that relates to Exploration Results and Exploration Targets is based on information compiled by Mr Andrew Radonjic, a Non-Executive Director and Technical Consultant of the company, who is a Member of The Australasian Institute of Mining and
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