Slide 1: Developing a Diversified Minerals Portfolio
For personal use only Developing a Diversified Minerals Portfolio Investor Presentation August 2017 1
Slide 2: Important Notices
Important Notices For personal use only This presentation has been prepared by BC Iron Limited ABN 21 120 646 924 (“BCI”). This document contains background information about BCI current at the date of this presentation. The presentation is in summary form, has not been independently verified and do
Slide 3: Highlights
Highlights For personal use only ➢ Maintain iron ore presence – strong existing business ▪ Iron Valley Mine – ongoing earnings ▪ Buckland Project – increasing development momentum ➢ Clear strategy to diversify to other commodities in Australia ▪ Become leading player in the agricultural / industrial
Slide 4: Corporate Overview
Corporate Overview Capital Structure (7-Aug-17, unless stated) Earnings History For personal use only Ordinary Shares 392.5m 10 5 Share Price $0.18 Earnings ($M) - Market Capitalisation $70.7m (5) Cash (30-Jun-17) $36.4m (10) Deferred State Royalties $1.3m (15) Enterprise Value $35.6m (20) 1H FY15 1
Slide 5: Asset Portfolio Targets
Asset Portfolio Targets Diversifying the asset portfolio to broaden commodity exposure For personal use only Iron Ore Agricultural & Industrial Gold & Base Metals Key ➢ Asian infrastructure ➢ Agric: global food consumption, ➢ Gold: political / economic Drivers investment population growth and declin
Slide 6: Location of Key Projects
Location of Key Projects For personal use only 6
Slide 7: Maintain Presence in Iron Ore
For personal use only Maintain Presence in Iron Ore Iron Valley Buckland Current Earnings Growth 7
Slide 8: Iron Valley Mine
Iron Valley Mine ➢ Royalty-type agreement with Mineral Iron Valley mine For personal use only Resources Limited (MIN) providing ongoing cash flows for BCI ➢ Potential mine life of ~15 years @ 8Mtpa ➢ Simple DSO operation and ~50% lump production with a price premium ➢ MIN has consistently outperform
Slide 9: Buckland Project
Buckland Project ➢ Buckland is a mine, road and port development For personal use only Proposed Cape Preston East port project in the West Pilbara ➢ BCI is the foundation proponent and 20 Mtpa lease holder of the Cape Preston East port development ➢ BCI is planning for Cape Preston East to become a
Slide 10: Other Iron Ore Royalties
Other Iron Ore Royalties BCI has a portfolio of iron ore royalties established through the sale of non-core assets For personal use only Project Owner Royalty Status Nullagine ➢ Up to 2% FOB revenue ➢ On care & maintenance ➢ Can be restarted rapidly should Fortescue elect to Koodaideri ➢ 2% FOB reve
Slide 11: Become a Leading Australian Player in Agricultural & Industrial Minerals
For personal use only Become a Leading Australian Player in Agricultural & Industrial Minerals Carnegie Mardie Sulphate of Potash Salt 11
Slide 12: Mardie Salt
Mardie Salt ➢ Located on the Pilbara coast near BCI’s For personal use only proposed Cape Preston East port ➢ Site geometry allows natural inflow of seawater ➢ Excellent climate conditions for a solar salt evaporation operation ➢ Near existing infrastructure (North West Coastal Highway and gas pipel
Slide 13: Carnegie Potash
Carnegie Potash For personal use only ➢ Carnegie is a potential large sub-surface brine deposit which could produce sulphate of potash (SOP) via solar evaporation ➢ BCI’s objective is to become a significant player in the emerging Australian SOP industry ➢ SOP is a high quality potassium-containing
Slide 14: Australian SOP Peers
Australian SOP Peers The Carnegie Potash Project can contribute significant value to BCI within 2 years as it For personal use only progresses through the development phases 100 90 80 Agrimin Market Capitalisation ($M) 70 Salt Lake Potash 60 Kalium Lakes 50 40 Australian Potash 30 Reward Minerals 20
Slide 15: Create a Presence in Gold / Base Metals
For personal use only Create a Presence in Gold / Base Metals 15
Slide 16: Gold / Base Metals Opportunities
Gold / Base Metals Opportunities For personal use only ➢ BCI seeking to create a presence in the gold / base metals sector ➢ Targeting Australian assets with a strong value proposition ➢ Opportunities being assessed in two broad groups: ▪ Advanced assets with the potential for earnings within 2 year
Slide 17: Summary
Summary For personal use only ➢ Strong cash position and solid Iron Valley earnings underpin growth strategy ➢ Committed to current attractive iron ore portfolio, but also diversifying to mitigate commodity risk ➢ FY18 priorities: ▪ Progress Buckland and reach development decision ▪ Materially grow
Slide 18: For personal use only
For personal use only Iron Valley Bungaroo South (Buckland) Level 1, 15 Rheola Street Cape Preston East (Buckland) West Perth, WA, Australia Phone : +61 8 6311 3400 Email : info@bciron.com.au Web : www.bciron.com.au 18