Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — AJM Global Iron Ore and Steel Forecast Conference 2012
23 slides from Bci Minerals's conference presentation, Mar 21, 2012
Slide 1: AJM Global Iron Ore and Steel Forecast Company Update
AJM Global Iron Ore and Steel Forecast Company Update For personal use only March 2012 Mike Young – Managing Director
Slide 2: BC Iron is an iron ore producer and exporter
For personal use only AN IRON ORE MINING COMPANY BC Iron is an iron ore producer and exporter Points of difference ! Focused on development since 2007 ! Exports commenced in Feb 2011 ! NJV current production rate at >3Mtpa ! Ramp up to 5Mtpa during 1H CY2012 " Rail and Port infrastructure secure ! J
Slide 3: Delivering Results: NJV Q2 FY2012
DELIVERING RESULTS NJV Q2 FY2012 For personal use only Mining & Crushing Truck & Rail Haulage Shipping & Marketing • 5 PowerTrans units on site • First full cape size ship Nov 11 • Mining now at > 3mtpa • 1.1Mt shipped 1H FY2012 • 3 surface miners operating • Haulage now at ~ 4.5Mtpa • FMG markets B
Slide 4: 2011 Achievements
For personal use only 2011 ACHIEVEMENTS 2011 - Milestone year for BC Iron $ Feb – First Ore on Ship from Port Hedland $ Aug to Oct – ore haulage starts to Christmas Creek • 360t Power Trans Pit Haulers • 55km private, sealed haul road $ Nov – achieved >3Mtpa production rate FMG Christmas Creek – Buc
Slide 5: 1H FY2012 Highlights
For personal use only 1H FY2012 HIGHLIGHTS • Commencement of Cape size shipments during November 2011 • Surpassed guidance of 1Mt for 1H FY12 and production rate of 3Mtpa • First positive cashflow quarter – December 2011 • Net profit before tax for 6 months to 31 Dec 11 ~ $9M BC Iron - Half Year end
Slide 6: Company Performance
For personal use only COMPANY PERFORMANCE Half Year ended 31 December 2011 ($m) Dec Dec % June 2011 2010 2011 NIOJV (100%) Tonnes Shipped (millions – wmt) 1.1 - N/A 0.3 Average CFR Price ($USD/dmt) $125 - N/A $161 BC IRON Revenue 65.2 2.7 2,315% EBITDA 12.2 0.5 2,340% Depreciation & Amortisation 2.6
Slide 7: Company History
For personal use only COMPANY HISTORY 2006 to 2011: Rapid Growth ! 2006 – Listing on Australian Securities Exchange ! 2007 – Discovery of DSO iron ore at Outcamp Well ! 2008-2009 – Drilling, Feasibility, JV with Fortescue ! 2010 – Construction and Mining commences ! 2011 – Iron ore exports commence
Slide 8: Company Snapshot
For personal use only COMPANY SNAPSHOT Code: ASX:BCI Management Team Shares 103.9 m Unlisted Options 1.2 m Blair Duncan - Chief Operating Officer Performance Rights 0.2 m Fully Diluted 105.3 m John McCarthy – Resident Manager Market Cap - fully diluted @ A$3.00 ~ A$315 m Robert Williams – Technical
Slide 9: BC Iron Limited Board of Directors
For personal use only BC IRON LIMITED Board of Directors BC Iron Tony Kiernan, Non-exec Chairman – a solicitor with Terry Ransted, Non-exec Director – a geologist with extensive experience in management and operation of Alkane Resources managing exploration and Australian public companies. Chairman
Slide 10: Pilbara Projects Location
For personal use only PILBARA PROJECTS LOCATION Bungaroo Project (BCI 100%) ! Bungaroo near RIO Tinto’s Bungaroo Creek & IOH’s Buckland Hills ! CID mineralisation identified in 2010: drilling complete – pending assays Nullagine Project (BCI 50%: FMG 50%) ! Operating iron ore mine ! At >3Mtpa moving
Slide 11: Nullagine Joint Venture
For personal use only NULLAGINE JOINT VENTURE Nullagine Joint Venture (BCI 50%) ! Joint Venture with Fortescue (50:50) ! BC Iron operator and Manager of the Nullagine JV Project ! Contract mining, haulage and rail ! 50/50 share of revenue and costs ! Mine centres at Outcamp, Warrigal, Coongan and Bo
Slide 12: Nullagine JV – Outcamp
For personal use only NULLAGINE JV – OUTCAMP Current Mining Area Bottom of Orebody Water Table ! Shallow “pits” using surface mining – ore from start of operations ! Above water table - lower environmental impact, no wet ore. 12
Slide 13: Mining at Outcamp
For personal use only MINING AT OUTCAMP Mining panels with Mined material in stocks Surface Miners Wirtgen & Vermeer Surface Miners ! WATPAC Mining ! Rotating drum cutter – no drill & blast ! Provides primary crushing Cut material ! 4 units on site – spare capacity 13
Slide 14: Crushing & Haulage
For personal use only CRUSHING & HAULAGE Crushing & screening ! WATPAC Mining ! Currently at ~4.0 Mtpa ! Capacity moving to >5 Mtpa 4Q FY12 ! Upgrade will provide 1mtpa ‘sprint’ capacity PowerTrans Pit Haulers ! Toll Holdings ! 5 units on site moving to 8 units by June 2012 ! 360 t payload - 512 t g
Slide 15: Production Rates
For personal use only PRODUCTION RATES Ore Mined 2010 to 2018 14,000 13,000 12,000 Coongan start 11,000 LOM Ore:Waste ~1:1 10,000 9,000 ,000 t Bonnie East 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0,000 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/2018 Ore Waste Total Productio
Slide 16: Marketing Bonnie Fines
For personal use only MARKETING BONNIE FINES West Australian - Channel Iron Deposits ! “Bonnie Fines” pisolite sinter blend improves sintering productivity at the steel mill ! Low impurities, low ultra-fines, low moisture, and high calcined iron grade ! Sintering test work in China - Bonnie Fines su
Slide 17: Forecast Costs
For personal use only FORECAST COSTS Lowest Price 28-Oct-2011 Forecast costs Source: Macquarie Research ! FOB cash costs at site estimated to be mid-$40s per tonne over LOM - varies with waste/ore ratio ! Cash costs excludes State royalties, Aboriginal royalties, marketing and head office costs ! Co
Slide 18: Iron Ore Prices
For personal use only IRON ORE PRICES Iron historical prices and forecast ! CFR62% Fe Tianjin Spot ! Forward consensus Jan 2012 2009 2010 2011 2012 2013 2014 18
Slide 19: Business Development
For personal use only BUSINESS DEVELOPMENT An experienced iron ore miner…. ! A Pilbara iron ore miner ! Rapid development history ! Focused on development & production ! Established partnerships - FMG, stakeholders, government ..…Bringing experience to growth ! Maximising existing resources at Nulla
Slide 20: Reserves and Resources
For personal use only RESERVES AND RESOURCES 20
Slide 21: Reserves and Resources
For personal use only RESERVES AND RESOURCES 21
Slide 22: Supporting Statement
For personal use only SUPPORTING STATEMENT This release may include forward-looking statements. These forward-looking statements are based on management’s expectations and beliefs concerning future events as of the time of the release of this document. Forward-looking statements are necessarily subj
Slide 23: BC Iron Limited
BC IRON LIMITED Producing iron ore, Producing value For personal use only 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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