Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — AJM Global Iron Ore & Steel Conference 2014
24 slides from Bci Minerals's conference presentation, Mar 11, 2014
Slide 1: Cover letter to ASX for conference presentation
11 March 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 Managing Director Morgan Ball at the AJM Global Iron Ore & Steel Conference in Perth o
Slide 2: BC Iron – A Resources Yield Play?
For personal use only BC Iron – A Resources Yield Play? Morgan Ball – Managing Director 1 ASX:BCI 12 Mar ‘14
Slide 3: Optimising the NJV | Paying dividends | Considering growth
For personal use only Optimising the NJV | Paying dividends | Considering growth 2
Slide 4: Corporate Overview
CORPORATE OVERVIEW For personal use only Capital Structure Share Price and Volume Ordinary Shares 124.0m $5.50 7 Share Price (at 10-Mar-14) $4.60 $5.00 6 $4.50 5 Market Capitalisation $570m Volume (m) Share Price $4.00 4 Cash (at 31-Dec-13) $197m $3.50 3 Debt (at 31-Dec-13) $66m $3.00 2 Enterprise V
Slide 5: Capital Management Strategy
CAPITAL MANAGEMENT STRATEGY For personal use only DIVIDENDS GROWTH AND We seek to provide both BC Iron’s strategy Consider growth in a measured fashion, with a focus on shareholder value Continue to repay debt ahead of schedule 4 Continue to reward shareholders with strong dividends If appro
Slide 6: Dividends Declared to Date
DIVIDENDS DECLARED TO DATE For personal use only FY14 FY13 FY13 FY12 Interim Dividend Final Dividend Interim Dividend Full Year Dividend1 Dividend (cps) 17 30 5 15 Franking Fully franked Fully franked Fully franked Fully franked Total Dividend ($M) 21.1 37.1 6.2 15.6 Payout Ratio (% Statutory NPAT)
Slide 7: Dividend Guidance
DIVIDEND GUIDANCE For personal use only Intend to pay interim and final dividend each year Target payout ratio of 30-50% of NPAT Annual target, rather than a target for both interim and final All else equal, final dividend expected to be larger than interim Franked to the maximum extent po
Slide 8: Market Commentary on Dividends
MARKET COMMENTARY ON DIVIDENDS For personal use only “In a market that now favours tried and “Analysts argue that other miners are true cashflow over grand visions of likely to follow their (BC Iron, growth at any cost, BC Iron has found Fortescue and Woodside’s) example as its sweet spot.” a spate
Slide 9: Dividend Yields
DIVIDEND YIELDS BC Iron is one of the highest yielding ASX 300 companies and the highest For personal use only yielding in the Metals and Mining sub-index. S&P ASX300 Metals and Mining Index 16% 14% BC Iron: ranked 1 12% 10% 8% 6% 4% 2% 0% S&P ASX300 Index 30% 25% All companies ranked higher than BC
Slide 10: Total Shareholder Return
TOTAL SHAREHOLDER RETURN For personal use only Total Shareholder Return – Since 1-Jul-12 Why has BC Iron outperformed its peers? Quality project with low capital intensity 104% Low risk Continued strong operational performance 4% 4% Repeated delivery against guidance Strong management and
Slide 11: 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 12: Project Inventory
PROJECT INVENTORY For personal use only Assessing potential for increases in Reserves and mine life Targeting a mine life extension of 2 to 5 years Focus on beneficiation of low grade (50-55% Fe) Potential to increase Reserves and mine life from: Low grade within existing pit designs Low
Slide 13: Project Inventory
PROJECT INVENTORY For personal use only Initial low grade beneficiation trial completed Beneficiation Trial Beneficiation Trial Simple dry crush and screen process Product Waste Trialled different plant configurations and different low grade types from stockpiles and current mining areas Nex
Slide 14: Growth Considerations
GROWTH CONSIDERATIONS For personal use only Deposit and BC Iron view on infrastructure commodity price 13 Specific circumstances
Slide 15: Brazil Exploration Earn-In
BRAZIL EXPLORATION EARN-IN For personal use only BC Iron / Cleveland alliance staged earn-in to 3 exploration projects No upfront payments and appropriately staged expenditure and payments provides optionality Mapping geophysical interpretation and rock chip sampling completed at the Bahia pro
Slide 16: BC Iron Video
BC IRON VIDEO For personal use only 15 http://www.bciron.com.au/about-us.html
Slide 17: 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 18: FY14 Guidance
FY14 GUIDANCE For personal use only FY14 guidance: NJV sales of 5.8-6.2Mt Platts CFR62 price of NJV plans to operate at 6.5Mtpa for 9 months US$105/dmt on 10 Mar 13 of the year and 4.5Mtpa for the 3 months during the January to March wet season LOM guidance of A$46-50/wmt FOB BCI share of sale
Slide 19: 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 18 Provides primary crushing Surface mining results in reduced equipment
Slide 20: 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 21: 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 22: 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 23: Optimising the NJV | Paying dividends | Considering growth
For personal use only Optimising the NJV | Paying dividends | Considering growth 22
Slide 24: 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
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