Black Rock Mining Limited · ASX:BKT
Black Rock Mining — Shaw and Partners Graphite Conference 2023
27 slides from Black Rock Mining's conference presentation, Jun 20, 2023
Slide 1: Mahenge Graphite Mine: Simply Better Graphite Investor Update
Black Rock Mining Mahenge Graphite Mine Simply Better Graphite: Investor Update For personal use only Shaw and Partners Graphite Conference June 2023
Slide 2: Important notices
Important notices This presentation has been prepared by Black Rock Mining Limited (Black Rock or the Company) and has been approved by the Board of Black Rock. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in su
Slide 3: Table of Contents
Black Rock Corporate overview: Black Rock at a glance 4 and the Black Rock team 5 Mahenge The outlook for graphite 6 For personal use only A snapshot of the Mahenge graphite mine 10 Graphite First quartile on the cost curve 11 Mine Why Mahenge? 12 ESG Focused Ecosystem 13 Table of Cont
Slide 4: Black Rock at a glance
Black Rock at a glance Capital structure ASX ticker BKT Premium graphite player Share price (19 June 2023) $0.11 Shares on issue 1,074.9 M Developing the Mahenge graphite project in Tanzania: For personal use only - Tier 1 scale (2nd largest reserve globally) Options and performance rights 86.0 M -
Slide 5: Black Rock team
Black Rock team Board of Directors Management Richard Crookes, Non-exec Chairman: Geologist with over 30 years Steuart McIntyre, GM Corporate Development: Mining analyst with over 15 executive experience in the resources and finance industries; raised capital years experience. Previous roles include
Slide 6: Graphite in batteries
Graphite in Graphite is the dominant anode material, regardless of battery chemistry batteries LFP 17% NMC 111 15% NMC 532 16% NMC 811 16% NCA 11% For personal use only There is more 29% 43% graphite in Li-ion Cathode (+) 68% 73% batteries by volume 83% 29% 24% than any other 27% 8% material, regard
Slide 7: Could battery demand start to drive graphite pricing from 2023?
Could battery demand start to drive graphite pricing from 2023? Battery demand for graphite at a For personal use only tipping point? Battery demand ~60% of lithium market Battery demand ~60% of graphite market Battery demand for graphite expected to mesh hit ~60% in 2023 Syrah commissions Battery d
Slide 8: Graphite pricing by Mahenge product
Graphite pricing by Mahenge product (last 12 months) US$/t Robust 2,000 1,750 graphite 1,500 1,250 prices For personal use only 1,000 750 Current graphite 500 14/06/22 14/09/22 14/12/22 14/03/23 14/06/23 prices support healthy Split in Mahenge basket: 32% -195 9% +195 36% +895 18% +595 5% +3295 pote
Slide 9: Near term outlook for graphite prices
Near term Graphite fines prices softened ~10% during the March quarter due to China cutting EV subsidies outlook for However, Mahenge’s basket price has only dropped ~7% to US$1,085/t YTD to 14 June 2023 from US$1,168/t at 1 Jan 20231 graphite prices For personal use only Fastmarkets expects s
Slide 10: A snapshot of the Mahenge Graphite Project
A snapshot of the Mahenge Graphite Project Simple open pit mine development with outstanding forecast returns1 For personal use only US$1.4B 36% 89ktpa NPV10 nom post tax, post 16% FC Post-tax, ungeared IRR Module 1 production* (1Mtpa) US$182M 347ktpa 95 – 99%+ TGC purity 59% +80 mesh, 41% -80 Modul
Slide 11: First quartile on the global cost curve
First quartile on the global 2024 Adjusted C1 Cost Curve* cost curve For personal use only First quartile assets are higher margin and more robust through the cycle Sources: Benchmark Mineral Intelligence Flake Graphite Report Q2 CY22, Black Rock Mining, Company Data C1 Cash Costs are defined as Cas
Slide 12: Why Mahenge?
Julius Nyerere Hydropower Project (2115MW) Why Mahenge? For personal use only Unique competitive Large container port in Dar es Salaam advantages driven by geology and substantial existing infrastructure Tazara Railway Line Geology Substantial existing infrastructure ★ Mahenge’s 213mt resource makes
Slide 13: ESG focused ecosystem
ESG focused ecosystem For personal use only A new greener source of graphite with best Battery Large Flake practice whole of Environmental and Social Impact supply chain strategy Tanzanian Assessment Customer Markets Government Permitted Robust Compliance Simple Processing Three stage polishing
Slide 14: Graphite playbook
Graphite MAJORITY OF PRE-CONSTRUCTION INVESTMENT PILOT PLANT QUALIFICATION playbook CUSTOMERS & OFF-TAKES GOVERNMENT Free-Carried Interest For personal use only Shareholding Agreement Sequential EPC development that is customer driven DRILLING SOCIAL LICENCE STUDY WORK MINING LICENCE & FINANCING APR
Slide 15: Development timetable
Development Debt process well advanced, aiming for Term Sheets in Q2 CY23 timetable Black Rock is targeting up to 50% debt via traditional project finance For personal use only Aiming to have debt finance in place for Construction period 20 months1 Module 1 in the next few months. Targeting
Slide 16: Strong near term news flow
Strong near Black Rock sees a number of potential de-risking milestones due near term: term news Potential POSCO milestones: Signing full-form offtake agreement flow For personal use only Signing full-form prepay agreement for US$10m Potential for POSCO to take up it’s right to a BKT boa
Slide 17: BKT ready to deliver
BKT ready to deliver Compelling Project Metrics Tier 1 Scale For personal use only 1st Quartile Costs The significant Tier 1 (low-cost green power, low strip) scale Mahenge Higher proportion of large flake Higher purity concentrates graphite mine into an Strong macro tailwind undersupplied and growi
Slide 18: For personal use only
Richard Crookes John de Vries Chairman For personal use only E: richard.crookes@blackrockmining.com.au Managing Director and CEO Steuart McIntyre T: +61 438 356 590 GM Corporate Development E: jdv@blackrockmining.com.au T: +61 413 555 609 A: Level 1, 1 Walker Avenue E: sm@blackrockmining.com.au West
Slide 19: Appendix
For personal use only Appendix
Slide 20: Tanzania: An improving jurisdiction for investment
Tanzania: Moody’s recently upgraded Tanzania to a B2 Positive due to reduced political risk and structural reform agenda 1 An improving jurisdiction for Equinor/Shell/Exxon For personal use only Mobil recently struck a deal for the development of an LNG terminal in Tanzania expected to cost tens
Slide 21: POSCO's anode growth plans
kt POSCO’s anode growth plans POSCO’s 400 320 anode growth 300 22 170 152 200 plans 10 For personal use only 82 80 100 2 40 146 80 40 In 2022, POSCO was 0 2022 2025 2030 the largest anode Natural graphite anode Synthetic graphite anode Silicon anode producer outside China Source: POSCO Chemical Earn
Slide 22: Li-ion battery raw materials supply chain by country
Li-ion battery EXTRACTION PROCESSING ANODE/CATHODE PRODUCTION BATTERY CELL MANUFACTUARING raw materials EU, 4% Other, 17% US, 10% supply chain GRAPHITE Other, China, 73% EU, 6% China, 73% For personal use only 23% Other, 11% China, China, 100% 83% by country COBALT Other, 99% China, 1% EU, 17% Other
Slide 23: Natural graphite increasing in batteries
Natural Growing importance of natural graphite in batteries 100% graphite 75% 48% increasing in 58% 41% For personal use only 50% batteries 25% 39% 48% 49% 0% The use of natural 2020 2025 2030 graphite in batteries Natural graphite Synthetic graphite Silicon LTO Other has been growing Demand for LIB
Slide 24: Strong outlook for natural graphite
Material natural graphite supply deficits forecast from 2023 Strong 400,000 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 outlook for 200,000 natural 0 For personal use only -200,000 Market Balance (ktpa) graphite -400,000 -600,000 Supply deficit of ~135kt forecast in 2023 or 9% of for
Slide 25: Strong outlook for natural graphite
Material natural graphite supply deficits forecast from 2023 Strong 400,000 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 3,000 outlook for 200,000 2,500 natural 0 For personal use only Mahenge Basket Price (US$/t) -200,000 2,000 Market Balance (ktpa) graphite -400,000 -600,000 1,500 -
Slide 26: Graphite uses
Graphite Price increases with flake size uses For personal use only Black Rock has a diversified product SMALL FLAKE (FINES) LARGE FLAKE JUMBO FLAKE mix with 60% Lithium-Ion Batteries Flame Retardants Flame Retardants exposure to the high Paint & Coatings Refractories Gaskets & Seals margin large fl
Slide 27: Offtake agreements
Offtake Mahenge Offtake for Module 1 (89ktpa) agreements 100.0 90.0 For personal use only 9 9 9 9 9 ~89% of Mahenge’s 80.0 Module 1 production 70.0 15 15 15 is under binding 60.0 45 45 offtake, option or 50.0 30 30 30 MOU 40.0 30.0 6 6 6 6 6 20.0 28.5 28.5 28.5 28.5 28.5 10.0 0.0 Year 1 Year 2 Year
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