Bci Minerals Ltd · ASX:BCI
Bci Minerals — BC Iron — Merger or Acquisition (December 2012)
35 slides from Bci Minerals's merger presentation, Dec 10, 2012
Slide 1: Company Announcements Office cover letter
10 December 2012 For personal use only Company Announcements Office Australian Securities Exchange BC Iron Limited (ASX: BCI) Please find attached Investor Presentation in relation to the recently announced Acquisition and Capital Raising. Regards Linda Edge Company Secretary
Slide 2: Acquisition & Capital Raising
Acquisition & Capital Raising DECEMBER 2012 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES For personal use only Mike Young – Managing Director Morgan Ball – Finance Director
Slide 3: Important Notice & Disclaimer
For personal use only IMPORTANT NOTICE & DISCLAIMER 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. Summary information This document contains summary information about BC Iron and its subsidiari
Slide 4: Important Notice & Disclaimer
For personal use only IMPORTANT NOTICE & DISCLAIMER Past performance Past performance information given in this document is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. Forward-looking statements This document contains “forwa
Slide 5: Important Notice & Disclaimer
For personal use only IMPORTANT NOTICE & DISCLAIMER No liability BC Iron Limited has prepared this document based on information available to it at the time of preparation. Neither Macquarie Capital (Australia) Limited (“Lead Manager”), nor any of its respective directors, employees, officers and ad
Slide 6: Executive Summary
For personal use only EXECUTIVE SUMMARY v Acquisition of an additional 25% interest in the NJV from Fortescue increasing BC Iron’s interest to 75% v Agreement with Fortescue to increase rail and port capacity for NJV from 5Mtpa to 6Mtpa Acquisition & Ø Increases BC Iron’s attributable production
Slide 7: Rationale & Investment Highlights
For personal use only RATIONALE & INVESTMENT HIGHLIGHTS ü Conforms with business development strategy and strengthens relationship with Fortescue ü Logical and low risk acquisition of an additional interest in an asset that BC Iron knows very well Logical and low risk ü Increased exposure to a lo
Slide 8: Acquisition Terms
For personal use only ACQUISITION TERMS v Acquisition of an additional 25% of NJV from Fortescue NJV acquisition v BC Iron receives 75% of all revenues and liabilities from NJV from the effective date Additional 1Mtpa of v Agreement with Fortescue subsidiary, The Pilbara Infrastructure Pty Ltd (“
Slide 9: Nullagine Joint Venture
For personal use only NULLAGINE JOINT VENTURE Producing DSO Project with access to infrastructure v Joint Venture with Fortescue – BC Iron is operator and Manager v Fortescue provides marketing services v Project located 55km north of Fortescue’s Christmas Creek (“CC”) Operations v Quality produ
Slide 10: Nullagine Joint Venture: Updated guidance post acquisition
For personal use only NULLAGINE JOINT VENTURE Updated guidance – post acquisition v Minimal mining related capex required to increase to 6Mtpa now that additional infrastructure capacity secured Ø Previously announced JV FY13 capex of A$25 million, including: Project Inventory, haul road construct
Slide 11: Profile of Enlarged BC Iron
For personal use only PROFILE OF ENLARGED BC IRON Acquisition pro-forma Unit BC Iron Acquisition & Pro-forma post Acquisition Pre-Acquisition Raising Adjustment & Raising (pre-SPP) (pre-SPP) Project Metrics BCI Nullagine JV Interest % 50% 25% 75% Nullagine JV Iron Ore production BCI attributable iro
Slide 12: Profile of Enlarged BC Iron
For personal use only PROFILE OF ENLARGED BC IRON Unique opportunity - attractively positioned with respect to production and operating costs ASX Iron Ore Producers1 Operating Costs2 115 12 Magnetite producers 10 Hematite producers Production (Mtpa) 8 6 4 2 BC Iron LOM CFR C1 Cash Cost - shipping ~U
Slide 13: Acquisition Funding
For personal use only ACQUISITION FUNDING Amortising term loan overview v US$130 million amortising 5 year term loan facility from ANZ and Commonwealth Bank of Australia v Competitive margin on LIBOR with principal repayments to be made 6 monthly commencing with US$18 million on 30 June 2013. Repa
Slide 14: Equity Raising Overview
For personal use only EQUITY RAISING OVERVIEW – Fully underwritten Placement to qualified and sophisticated institutional investors to raise approximately A$44-48 million Offer structure – Approximately 15.6 million shares to be issued under the Placement representing 15% of BC Iron’s shares on issu
Slide 15: Indicative Offer Timetable
For personal use only INDICATIVE OFFER TIMETABLE Placement Date Trading halt Monday 10 December 2012 Bookbuild opens 4:00 p.m. Monday 10 December 2012 Bookbuild closes 5:00 p.m. Tuesday 11 December 2012 Trading halt lifted and shares recommence trading Wednesday 12 December 2012 Settlement of new sh
Slide 16: Summary of Key Risks
For personal use only SUMMARY OF KEY RISKS v There are various risks associated with an investment in BC Iron and many of these are outside the control of the company. Please refer to the expanded key risks section in the Appendix of this document v Key risk factors include: 1. Operating and devel
Slide 17: Appendix – Background Information
Appendix – Background Information For personal use only
Slide 18: Company History
For personal use only COMPANY HISTORY 2006 to 2012: Rapid Growth Ø 2006 – Listing on ASX Ø 2007 – Discovery of DSO iron ore at Outcamp Well Ø 2008-2009 – Drilling, Feasibility, JV with FMG Ø 2010 – Construction and Mining commences Ø 2011 – Iron ore exports commence & maiden profit Ø 2012 – Na
Slide 19: Company Snapshot
For personal use only COMPANY SNAPSHOT Shareholders – Pre Acquisition % Capital Structure – Pre Acquisition Consolidated Minerals 23.9% Ordinary shares 103.9m Regent Pacific 23.1% Market Cap (at $2.93 per share) A$304m Henghou Ningbo 9.9% Cash (at 30 September 2012) A$80.9m BC Iron Directors 3.0% De
Slide 20: Board of Directors
For personal use only BOARD OF DIRECTORS Tony Kiernan, Non-exec Chairman – formerly a solicitor Terry Ransted, Non-exec Director – a geologist with with extensive experience in management and operation Alkane Resources managing exploration and of Australian public companies. Chairman of Venturex Ltd
Slide 21: FY2012 – Year in Review
For personal use only FY2012 – YEAR IN REVIEW Full Year ended 30 June (A June June • Mined and shipped record tonnes across four $m) 2012 2011 quarters NJV (100%) • Achieved EBITDA of $68.8M for FY12 Tonnes Shipped (Mwmt) 3.55 0.25 • Cash balance doubles in Q4 to $92.8M at end of FY12 Average CFR pr
Slide 22: Production Rates
use only PRODUCTION RATES Production Profile & BBSO Exploration Target 22.5 20.0 million tonnes 17.5 15.0 For personal 12.5 10.0 7.5 5.0 “Project Inventory” 2.5 BBSO - DSO 0.0 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Ore (dmt) Waste (dmt) Forecast productio
Slide 23: Bonnie Fines
For personal use only BONNIE FINES West Australian - Channel Iron Deposits Bonnie Fines’ Phosphorus grades among the world’s lowest for a DSO Calcined Fe (%) 66 Fortescue Cloud Break 65 Ø “Bonnie Fines” pisolite sinter blend improves BC Iron Nullagine JV 64 sintering productivity at the steel mill
Slide 24: Business Development
For personal use only BUSINESS DEVELOPMENT A Pilbara iron ore miner Ø Focus - Rapid development history Ø Cash generation – Focused on resource development & ore production Ø Partnerships – Established relationships FMG, stakeholders, government Business Development - Three Priorities Ø Priority
Slide 25: Ore Reserves and Mineral Resources
ORE RESERVES AND MINERAL RESOURCES For personal use only Proved and Probable Ore Reserves NJV (BC Iron 75%, Fortescue 25%) – September 30, 2012 Ore Reserves Deposit Mt Fe% CaFe% Al2O3% SiO2% P% S% LOI Proved 20.8 57.3 64.9 1.9 3.2 0.017 0.013 11.7 Probable 20.5 56.9 64.8 2.0 2.9 0.014 0.010 12.2 Tot
Slide 26: Supporting Statements
For personal use only SUPPORTING STATEMENTS JORC Competent Persons Statement The information that relates to the Mineral Resource Estimate at Outcamp, Coongan, and Warrigal has been compiled by Mr Mike Young who is a Member of the Australian Institute of Geoscientists and an employee of BC Iron, and
Slide 27: Appendix – Key Risks and International Offer Restrictions
Appendix – Key Risks and International Offer Restrictions For personal use only
Slide 28: Key Risks
For personal use only KEY RISKS A number of risks and uncertainties, which are both specific to BC Iron and of a more general nature, may affect the future operating and financial performance of BC Iron and the value of BC Iron shares. You should carefully consider the following risk factors, as wel
Slide 29: Key Risks
For personal use only KEY RISKS – The document includes production targets for the Nullagine Iron Ore Project. – Whilst BC Iron considers there to be a reasonable basis for the production targets, actual future production may vary from the Risks to achieving targets and projects for a number of reas
Slide 30: Key Risks
For personal use only KEY RISKS – Changes in legislative and administrative regimes, taxation laws, interest rates, other legal and government policies in Australia may have an adverse effect on the assets, operations and ultimately the financial performance of BC Iron and the market price of BC Iro
Slide 31: Key Risks
For personal use only KEY RISKS – BC Iron will endeavour to maintain insurance within ranges of coverage in accordance with industry practice. However, in certain circumstances BC Iron's insurance may not be of a nature or level to provide adequate cover. The occurrence of an event that is not cover
Slide 32: Key Risks
For personal use only KEY RISKS – The operations and activities of BC Iron are subject to the environmental laws and regulations of Australia and the other places BC Iron conducts business. As with mining operations and exploration projects, BC Iron's operations and activities are expected to have a
Slide 33: International Offer Restrictions
For personal use only INTERNATIONAL OFFER RESTRICTIONS This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. New Shares may not be offered or sold in any country outside Australia except to the extent permitted below. Hong Kong WAR
Slide 34: International Offer Restrictions
For personal use only INTERNATIONAL OFFER RESTRICTIONS Switzerland The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared without r
Slide 35: BC Iron Limited
BC IRON LIMITED Focus – Partnerships – Revenue 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