Slide 1: Simply Better Graphite: Completion of FEED and eDFS Update
Black Rock Mining Mahenge Graphite Mine For personal use only Simply Better Graphite: Investor Update Completion of FEED and eDFS Update October 2022
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. For personal use only The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and t
Slide 3: Table of Contents
Black Rock Corporate overview: Black Rock at a glance 4 and the Black Rock team 5 For personal use only Mahenge The outlook for graphite A snapshot of the Mahenge graphite mine 6 11 Graphite First quartile on the cost curve 12 Mine Why Mahenge? 13 ESG Focused Ecosystem 14 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 (14 October 2022) $0.16 For personal use only Shares on issue 977.3 M Developing the Mahenge graphite project in Tanzania: - Tier 1 scale (2nd largest reserve globally) Options and performance rights 65.3 M -
Slide 5: Black Rock team
Black Rock team Board of Directors Management Steuart McIntyre, GM Corporate Development: Mining analyst with over 15 For personal use only Richard Crookes, Non-exec Chairman: Geologist with over 30 years’ executive experience in the resources and finance industries; raised capital years experience.
Slide 6: Graphite in batteries
Graphite in Graphite is the dominant anode material, regardless of battery chemistry batteries For personal use only LFP NMC 111 NMC 532 NMC 811 NCA 17% 15% 16% 16% 11% 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: Natural graphite increasing in batteries
Natural Growing importance of natural graphite in batteries 100% graphite For personal use only 75% 48% increasing in 58% 41% 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 8: Strong outlook for natural graphite
Strong Structural deficits in natural graphite predicted from 2022 outlook for For personal use only natural graphite Market size ~1.2mt in 2022 Benchmark expects graphite market to Supply deficits forecast to exceed finish in deficit in 2022, current market within ~7 years with deficits growing Str
Slide 9: Expert consensus pricing appears conservative
Strong Structural deficits in natural graphite predicted from 2022 outlook for For personal use only natural graphite Expert Consensus pricing appears conservative given the magnitude of the forecast supply 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 deficits Expert Consensus - 97% c
Slide 10: Robust graphite prices
Graphite prices over past 12-months for Mahenge's 5 products Robust US$/t 2,000 Graphite 1,750 For personal use only 1,500 prices 1,250 1,000 750 Current graphite 500 prices support healthy 23/09/21 23/12/21 23/03/22 23/06/22 23/09/22 -195 +195 +895 +595 +3295 Split in Mahenge basket: 32% 9% 36% 18%
Slide 11: 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 12: First quartile on the global cost curve
First quartile on the global For personal use only 2024 Adjusted C1 Cost Curve* cost curve 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 13: Why Mahenge?
Why Mahenge? For personal use only Unique competitive advantages driven by Geology and Geography GEOLOGY GEOGRAPHY ★ Mahenge’s 213mt resource makes it the 4th largest graphite ★ Access to key infrastructure, Grid Power, Rail, Airstrip, Water resource in the world1 and Tailings disposal (dry stack) ★
Slide 14: 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 15: Graphite Playbook
Graphite MAJORITY OF PRE-CONSTRUCTION INVESTMENT PILOT PLANT QUALIFICATION Playbook CUSTOMERS & For personal use only OFF-TAKES GOVERNMENT Free-Carried Interest Shareholding Agreement Sequential EPC development that is customer driven DRILLING SOCIAL LICENCE STUDY WORK MINING LICENCE & FINANCING APR
Slide 16: Development Timetable
Development Debt process underway, data room open, Term Sheets expected Q4 20221 Timetable For personal use only Black Rock is targeting up to 50% debt via traditional project finance Aiming to have debt finance in place for Construction period 20 months2 Module 1 in the next few months. Tar
Slide 17: Urbix Agreement
Urbix Conditional Framework Agreement signed with Urbix in Sept 20221 Agreement For personal use only Urbix is a US-based clean tech graphite processing company Represents potential to bring forward Collaboration to establish new integrated and cost competitive supply chain development of with
Slide 18: Advancing Next Steps
Advancing Project milestones: Next Steps Grant of SML to unify existing MLs For personal use only Complete early works and Resettlement Action Plan Continue to recruit for key roles, particularly in Tanzania Black Rock expects to complete a number of Offtake milestones: important de-risk
Slide 19: BKT ready to deliver
BKT ready to MARKET Drivers Customers ESG deliver For personal use only Electrification of transport Lack of forward graphite markets ESG is not optional mean debt relies on customer Substantial graphite supply deficits Differentiated ESG position - targeting contracts predicted near-term EP4 and IF
Slide 20: Contact details
Richard Crookes For personal use only John de Vries Chairman 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 21: Appendix
For personal use only Appendix
Slide 22: Milestones Delivered
Milestones Free Carried Interest Framework Agreement signed with Govt of Tanzania Delivered 500t pilot plant qualification run completed, the largest in the sector For personal use only Term Sheet signed with POSCO for Offtake and US$10m Pre-payment In the last 12 months ICA Partners appoint
Slide 23: Premier location
Premier location For personal use only AFRICA Well positioned in Dar es Salaam East Africa’s growing Graphite belt Mahenge Graphite Mine TANZANIA Tanzania seeking to encourage investment - BKT signed FCI Agreement with Govt (Dec 2021) - BHP committed US$100m in Kabanga Nickel (Jan 2022) 23
Slide 24: Graphite price increases with flake size
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 25: Battery demand growth
Battery Battery Raw Material Demand Growth (kt) demand 6,000 5,903 For personal use only growth 5,000 4,241 A synchronised 4,000 3,689 global technology change is underway 3,000 2,645 2,869 and is expected to drive strong demand 2,000 1,652 for battery materials 914 1,000 654 693 506 342 185 0 2020
Slide 26: Expert Consensus Prices
Expert Expert Consensus Price Forecast for Mahenge Basket Consensus For personal use only Prices Based on Expert Consensus pricing and forecast supply deficits, graphite prices are expected to rally in 2023 Note: Expert Consensus comprises average graphite forecast prices provided by Benchmark Miner
Slide 27: 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, For personal use only 17% US, 10% supply chain GRAPHITE Other, China, 73% EU, 6% China, 73% 23% Other, 11% China, China, 100% 83% by country COBALT Other, 99% China, 1% EU, 17% Other
Slide 28: Offtake Agreements
Offtake Mahenge Offtake for Module 1 (89ktpa) Agreements For personal use only Over 80% of Mahenge’s Module 1 production is under binding offtake or option 28