Black Rock Mining Limited · ASX:BKT
Black Rock Mining — Investor Presentation (October 2023)
26 slides from Black Rock Mining's investor presentation, Oct 27, 2023
Slide 1: Simply Better Graphite: Investor Update
Black Rock Mining Mahenge Graphite Mine For personal use only Simply Better Graphite: Investor Update Shaws Graphite Day October 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
▪ Corporate overview: Black Rock at a glance 4 Black Rock ▪ Black Rock team 5 and the ▪ The outlook for graphite 6 Mahenge For personal use only ▪ A snapshot of the Mahenge graphite mine 9 Graphite ▪ Why Mahenge? 10 ▪ First quartile on the cost curve Mine 11 ▪ ESG Focused Ecosystem 12 Table of Conte
Slide 4: Black Rock at a glance
Black Rock at a glance Capital structure ASX ticker BKT Premium graphite player Share price (26 Oct 2023) $0.11 Shares on issue 1,097.1 M Developing the Mahenge graphite project in Tanzania: For personal use only - Tier 1 scale (2nd largest reserve globally) Options and performance rights 58.2 M - F
Slide 5: Black Rock team
Black Rock team Board of Directors Management Richard Crookes, Non-exec Chairman: Geologist with over 30 years Steuart McIntyre, GM Corporate Development: Mining analyst with over 15 executive experience in the resources and finance industries; raised capital years experience. Previous roles include
Slide 6: Graphite in batteries
Graphite in Graphite is the dominant anode material, regardless of battery chemistry batteries LFP 17% NMC 111 15% NMC 532 16% NMC 811 16% NCA 11% For personal use only There is more 29% 43% Cathode (+) graphite in Li-ion 68% 73% 83% 29% batteries by volume 24% than any other 27% 8% 17% 14% material
Slide 7: Growing importance of natural graphite in batteries
Growing importance of natural graphite in batteries More natural 100% graphite in For personal use only 75% batteries 65% 41% 50% The use of natural 25% 50% graphite in batteries 30% has potential to grow 0% 2023 2030 from 30% of the Natural graphite Synthetic graphite Silicon LTO Other anode to 50%
Slide 8: Latest graphite prices
Graphite pricing by Mahenge product (last 12 months) US$/t Latest 2,000 1,750 graphite 1,500 1,250 For personal use only prices 1,000 750 Current graphite 500 3/10/22 3/01/23 3/04/23 3/07/23 3/10/23 prices support healthy Split in Mahenge basket: 32% -195 9% +195 36% +895 18% +595 5% +3295 potential
Slide 9: 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) 95 – 99%+ TGC purity US$182M 347ktpa 59% +80 mesh, 41% -80 Modul
Slide 10: 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 69.6mt Reserve makes
Slide 11: Forecast first quartile costs
Forecast first quartile costs 2024 Adjusted C1 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 Cash Costs ex
Slide 12: 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 Assessment supply chain strategy Tanzanian Government Customer Markets Permitted Robust Compliance Simple Processing ▪ Three stage polishing ▪
Slide 13: Graphite playbook
MAJORITY OF PRE-CONSTRUCTION INVESTMENT Graphite PILOT PLANT QUALIFICATION playbook CUSTOMERS & OFF-TAKES GOVERNMENT Free-Carried Interest For personal use only Shareholding Agreement EPC Sequential development that is customer driven DRILLING SOCIAL LICENCE STUDY WORK MINING LICENCE & FINANCING APR
Slide 14: Development timetable
Development ▪ Debt process well advanced, aiming for Term Sheets near term 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 soon. ▪ Targeting first production fr
Slide 15: POSCO's anode growth plans
POSCO’s anode growth plans POSCO’s ktpa 400 4.5x growth 370 35 anode growth 300 218 6 153 For personal use only 200 plans 100 82 2 58 154 182 40 In 2022, POSCO was 0 40 2022 2026 2030 the largest anode Natural graphite anode Synthetic graphite anode Silicon anode Source: POSCO Holdings Battery Mater
Slide 16: Strong near term news flow
Strong near Black Rock sees a number of potential de-risking milestones due near term: ▪ Potential POSCO milestones: term news ▪ Signing full-form offtake agreement ✓ ✓ For personal use only flow ▪ 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) Higher proportion of large flake scale Mahenge 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: Strategic Alliance with POSCO
Strategic ▪ POSCO is Black Rock’s major shareholder with a stake of 11.5% ▪ POSCO is Black Rock’s cornerstone offtake partner: Alliance with ▪ Module 1: For personal use only POSCO ▪ Binding life-of-mine offtake agreement for fines1 (32% of volume) ▪ MOU for 6ktpa of large flake2 (7% of volume) ▪ Mo
Slide 21: Battery demand for graphite at a tipping point?
Could battery demand start to drive graphite pricing from 2023? Battery demand for For personal use only graphite at a 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 22: 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 For personal use only jurisdiction for ▪ Equinor/Shell/Exxon Mobil recently struck a deal for the development of an LNG terminal in Tanzania expected to cost tens
Slide 23: Graphite supply chain for batteries is more dependent on China
Li-ion battery EXTRACTION PROCESSING ANODE/CATHODE PRODUCTION BATTERY CELL MANUFACTUARING raw materials GRAPHITE EU, 4% Other, China, Other, 17% US, 10% EU, 6% China, For personal use only supply chain 23% 73% 73% Other, 11% China, China, 100% 83% by country COBALT Other, 99% China, 1% EU, 17% Other
Slide 24: Working towards an IRA-compliant supply chain
Working The Inflation Reduction Act (IRA) in the US provides a Clean Vehicle Credit 2 under Section 30D for qualifying vehicles for up to US$7,500 per vehicle 1 towards an ▪ Starting in 2024, qualifying vehicles cannot have battery components For personal use only manufactured or assembled by a fore
Slide 25: Graphite uses
Price increases with flake size Graphite 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 26: 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 15 15 15 Module 1 production 70.0 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
Black Rock Mining — Investor Presentation (October 2023) on 6ix