Slide 1: BCI Minerals FY23 Full Year Results
For personal use only BCI Minerals FY23 Full Year Results 18 August 2023 1
Slide 2: Acknowledgement of Country
Acknowledgement of Country For personal use only BCI Minerals acknowledges and has deep respect for the ongoing physical and spiritual connection Aboriginal people have to the land associated with our projects. BCI acknowledges the Traditional Custodians of country throughout Australia and pays resp
Slide 3: Contents
Contents 1. Important Notices For personal use only 2. FY23 Highlights 3. Sustainability 4. Health, Safety and Wellbeing 5. FY23 Financial Results 6. Mardie Update 3 3
Slide 4: Important Notices
Important Notices Not an Offer of Securities This document has been prepared by BCI Minerals Limited ABN 21 120 646 924 (“BCI”) and is provided for information purposes only. This document does not constitute an offer to sell, or a solicitation of an offer to buy, For personal use only or a recommen
Slide 5: Important Notices (continued)
Important Notices (continued) Risks There are a number of potential known and unknown risks which may impact BCI’s ability to develop and operate the Project in accordance with the base case forecast presented in this announcement, some of which are beyond the control of BCI. BCI applies a risk fram
Slide 6: Highlights
FY23 Highlights • BCI recorded a Total Recordable Injury Frequency Rate (TRIFR) of 4.1 • BCI earned $60.9M in revenue and A$30.7M EBITDA from Iron Valley during FY23 For personal use only • Mardie project plan reconfigured to focus on salt as the initial product, with SOP plant design to be progress
Slide 7: Sustainability Performance
FY23 Sustainability Performance Sustainability is a key enabler of BCI’s vision, with the project designed to minimise social, heritage and biodiversity impacts For personal use only Key sustainability achievements in FY23: • Reduced design footprint in the Robe River Delta Mangrove Management area
Slide 8: Health, safety, and wellbeing
FY23 Health, safety, and wellbeing BCI places the highest priority on providing a safe For personal use only and healthy working environment for all staff and contractors • To ensure safety performance continues to improve, all BCI employees have safety as a KPI • Fatality prevention is a key compon
Slide 9: FY23 Financial Results
For personal use only FY23 Financial Results 9
Slide 10: Snapshot as at June 2023
FY23 Snapshot as at 30 June 2023 Mardie Project For personal use only • Project approvals and tenure progressed $1421M • Construction packages completed in FY23 delivered in line with, or under, expected cost • Offtake and financing negotiations progressing well $208M Base Capital 1 Contingency Over
Slide 11: Mardie Expenditure
FY23 Mardie Expenditure • Total Mardie expenditure increased from For personal use only $162.7M in FY22 to $409M in FY23 including operating expenditure and enabling capital expenditure $’000 FY23 FY22 • Continued capital expenditure in FY23 Early enabling works program - 4,700 • Marine structures •
Slide 12: Earnings
FY23 Earnings $’000 FY23 FY22 • Iron Valley revenue and royalty For personal use only Revenue – sale of goods 60,959 65,198 payments down – earnings impacted by higher iron ore prices offset Royalties (30,242) (37,383) with lower volumes shipped Development & evaluation expenditure (19,198) (20,616)
Slide 13: Balance Sheet
FY23 Balance Sheet $’000 As at As at 30 June 23 30 Jun 22 For personal use only • Strong cash position following successful Cash and cash equivalents 109,470 232,021 convertible note* funding in December 2022 Short term investments 317 657 • Property, plant and equipment (PP&E) Trade and other recei
Slide 14: Mardie Update
For personal use only Mardie Update 14
Slide 15: Key Project Highlights
Key Project Highlights Mardie is one of the highest quality, largest For personal use only scale new salt projects globally FY23 has seen: Attractive market fundamentals Updated and more robust Strong demand Positive Stakeholder capital and operating cost from potential offtakers Relationships estim
Slide 16: The Mardie Salt and Potash Project
The Mardie Salt and Potash Project For personal use only Once developed, Mardie will be a global top three producer. Sustainable supplier of salt and potash for decades to come with 99% energy required deriving from renewable sources. Mardie is situated in an ideal location for producing high purity
Slide 17: Asian salt market outlook
Asian salt market outlook Asian salt consumption is expected to rise by For personal use only >50Mt over next decade, mainly driven by increase in chemical sector predominantly Chloralkali and Soda Ash industries.1 The result of this is an anticipated deficit in supply. 1 Wood Mackenzie: Independent
Slide 18: Salt market pricing
Salt market pricing Wood Mackenzie and Project Blue are forecasting For personal use only long term salt price of US$621-67/t2 (2023$) for Australian salt delivered into Asia, from FID price of US$49.60/t 3 Historical and Forecast Australian Salt Prices (Real US$/t) Significant uplift in the long te
Slide 19: Offtake and strategic partnerships
FY23 Offtake and strategic partnerships BCI has a focus on developing long term strategic For personal use only partnerships with significant customers • Offtake discussions are progressing well with several counterparties throughout the Asian market, reflecting the strong market growth for salt and
Slide 20: Attractive and sustainable economic performance
Attractive and sustainable economic performance Long life project 60+ years annuity style cashflows to For personal use only support debt capacity and long-term equity returns1 Project Cashflows to CY50 (A$M, Real) The Mardie Project is anticipated to deliver: 800 • Project NPV7$2.6Bn1 compared to F
Slide 21: Positive Stakeholder Engagement
FY23 Positive Stakeholder Engagement Lenders / Investors Approvals Native Title Tenure For personal use only • Strong debt and equity profile in • EPA approved the initial project • Key Native Title agreements in • All Definitive Feasibility Study new base case scope footprint1 place (DFS) mining te
Slide 22: Primary Seawater Intake Station and Ponds
FY23 Primary Seawater Intake Station and Ponds The primary seawater intake station was completed in December 2022, with all pumps tested and commissioned. For personal use only Civil works on Ponds 1 to 4 were completed in FY23, and Pond 5 95% complete at 30 June. Following the application of rock,
Slide 23: Marine structures
FY23 Marine structures Significant progress has been made on the marine structure For personal use only package, with 35% complete by 30 June 2023. The installation of the first pile in May signalled the commencement of the 2.4 km purpose-built jetty. McConnell Dowell have installed a transporter an
Slide 24: Accommodation and road infrastructure
FY23 Accommodation and road infrastructure 400-bed Accommodation village and facilities, which houses both construction and operations personnel on site, was completed and the final For personal use only Certificate of Occupancy received in September 2022. The road construction packages are on track
Slide 25: Cost and design review
Cost and design review BCI has undertaken a full review of all capital packages, development schedule, production For personal use only profile and operational costs to complete a compelling new Base Case Quantitative and technical De-risking activities have The design and cost review independent re
Slide 26: Confidence in design
Confidence in design The Mardie project has been reconfigured to focus Salt SOP on salt as the initial product, with SOP plant design For personal use only to be progressed during FY24. Commissioned or completed Of the $1,421M* Project Mardie base capital: ~15% Design complete • Primary seawater • 3
Slide 27: Funding progressing well
Funding progressing well For personal use only Project finance Approval Brine production First salt on agreed, Q3, 2023 achieved and commence ponds fill ship (FSOS) commence 2H 2023 2024 2026 2027 Drawdown Equity Debt finance $60M Con funding SOP plant H2, First SOP on Note complete Q4, 2023 2024 sh
Slide 28: FY24 Outlook
FY24 Outlook • Safety remains the highest priority of BCI, particularly as the construction workforce grows on site, and pond operations commence in FY24 For personal use only • The primary focus of construction will be on advancing several essential facilities in accordance with critical path activ
Slide 29: About BCI Minerals
About BCI Minerals (ASX: BCI) Established in 2006, BCI Minerals (BCI) is an Australian-based company For personal use only developing its 100% owned Mardie Salt and Potash Project. Our vision is to be a globally significant, sustainable industrial minerals business, with salt and potash as the initi