Bci Minerals Ltd · ASX:BCI
Bci Minerals — Investor Presentation (August 2021)
27 slides from Bci Minerals's investor presentation, Aug 20, 2021
Slide 1: Developing the Multi-Generational Mardie Salt & Potash Project
For personal use only Developing the Multi-Generational Mardie Salt & Potash Project Corporate Presentation 20 August 2021 ASX:BCI www.bciminerals.com.au
Slide 2: 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 or contain an offer, invitation solicitation or recommendation with respect to the purchase
Slide 3: BCI Overview
BCI Overview For personal use only IRON VALLEY MARDIE SALT & ROYALTIES POTASH PROJECT ~$260M market cap1 ~$110M cash and zero debt2 BCI SHARE PRICE BCI PERFORMANCE RELATIVE TO PEERS 0.60 200% MinRes 0.50 150% Kalium Share Price ($) Performance 0.40 Salt Lake 100% Agrimin 0.30 Highfield 0.20 50% Comp
Slide 4: FY21 Highlights
FY21 Highlights KEY GROUP FINANCIALS IRON VALLEY For personal use only $160.5M $28.9M $69.5M $75.4M REVENUE EBITDA EBITDA ROYALTIES PAID2 108% on FY20 248% on FY20 202% on FY20 55% on FY20 MARDIE HEALTH & SAFETY $22.0M $129M 6 Years 1 NPAT MARDIE 5,400% on FY20 CONTRACTS without Lost Time
Slide 5: Iron Valley Mine
Iron Valley Mine Strong royalty payments to BCI IRON VALLEY MINE For personal use only ▪ Quarterly royalty earnings from operating agreement with Mineral Resources Ltd (MIN) ▪ 82Mt Reserves1; Potential mine life of ~10 years ▪ Since first production in 2014: – BCI received revenue: $450M – BCI recei
Slide 6: Australian Salt & SOP Landscape
Australian Salt & SOP1 Landscape Mardie: ideal location to produce high-purity salt and SOP For personal use only ▪ Pilbara has an ideal climate to produce high purity salt WESTERN AUSTRALIA – SALT AND SOP PROJECTS – High temperature, high wind, low rainfall, low humidity – Proven region for product
Slide 7: Mardie – Key Characteristics
Mardie – Key Characteristics For personal use only 1. GROWTH MARKETS 5. SUSTAINABLE 2. LARGE SCALE 3. COMPETITIVE COST 4. STRONG CASHFLOWS 7
Slide 8: Salt Demand Closely Correlated with GDP
Salt Demand Closely Correlated with GDP Salt’s extensive range of end uses covering all key sectors of the economy For personal use only ▪ 350Mtpa global market ▪ >10,000 direct and indirect uses across many market segments ▪ Strong correlation (r=0.97) between salt demand and Asian GDP Asia Salt Co
Slide 9: Positive Salt Market Outlook
Positive Salt Market Outlook Strong demand growth in Asia and insufficient new supply For personal use only CONTESTABLE1 ASIAN MARKET DEMAND/SUPPLY; 2019-2030 (Mt) 110 100 10 83 ▪ Mardie’s contestable market in Asia currently ~83Mtpa ▪ 30% demand growth forecast over next decade1,2 ▪ Insufficient ne
Slide 10: Salt Cost Curve – Contestable Market
Salt Cost Curve – Contestable Market Mardie will be a low-cost supplier of salt into contestable1 Asian market For personal use only 60 ▪ Mardie will be cost Mardie Salt 50 Only competitive with all Australian salt operations2 Chinese Rock 3rd Tier Other Mardie with Chile 40 CIF eq. Cost (US$/t) SOP
Slide 11: Salt Market Strategy
Salt Market Strategy Strong customer interest - MOUs to be converted to offtake contracts For personal use only ▪ Typically 2-year contracts and price settlements with individual customers – no official published benchmark TARGET MARKETS SALT (5.35MTPA) China Japan South Korea Taiwan Other ▪ 20-year
Slide 12: SOP – High Quality Potassium Fertiliser
SOP – High Quality Potassium Fertiliser Solid growth market driven by demand for high quality fruits and vegetables For personal use only ▪ ~6.6Mtpa global market SOP BENEFITS IN PLANTS ▪ Premium fertiliser and source of potassium for high- value crops and chloride intolerant crops Encourages strong
Slide 13: SOP Market Strategy
SOP Market Strategy MOUs to be converted to offtake contracts over next 18-months For personal use only ▪ Typical buyers include: fertiliser distributers, compound and bulk fertiliser companies TARGET MARKETS SOP (140KTPA) China Japan Oceania USA SE Asia Other Asia ▪ Typically 2-5 year tonnage contr
Slide 14: Mardie Project Design
Mardie Project Design Largest salt project in Australia For personal use only SITE CONDITIONS PROJECT LAYOUT ▪ >100km2 clay soils – ideal to retain water ▪ High net evaporation rates (~10mm/day) PRODUCTION ▪ 9 evaporation ponds ▪ 42 salt and 20 SOP crystallisers ▪ Salt wash plant - 5.35Mtpa >99.5% N
Slide 15: Contracting Strategy - 60% Fixed Price Contracts
Contracting Strategy - 60% Fixed Price Contracts $60M+ Enabling works underway to derisk Main Construction1 For personal use only GEOTECHNICAL INVESTIGATIONS SALT PILOT PLANT (PERTH) EMBANKMENT TRIAL3 VILLAGE2 MAIN PUMP STATION2 NORTH-SOUTH ROAD 1All enabling works subject to special permitting 2Art
Slide 16: Positive Stakeholder & Approval Progress
Positive Stakeholder & Approval Progress Native title agreements in place; Approvals and tenure on track For personal use only GOVERNMENT ▪ Major Project Status - one of 26 in Australia ▪ NAIF loan of $450M approved – largest in WA ENVIRONMENT ▪ EPA positive referral1 to WA Environmental Minister ▪
Slide 17: Mardie - Strong Financial Metrics
Mardie - Strong Financial Metrics Strong financial metrics and annuity-style cash flow over at least 60 years1 For personal use only CAPITAL COST (A$913M Real) ▪ A$738M direct ▪ A$175M indirect & contingency FINANCIALS6 OPERATING COST (60 year average) ▪ NPV7: A$1,670M ▪ Salt A$21.50/t FOB2 ▪ EBITDA
Slide 18: Funding Strategy Advanced
Funding Strategy Advanced NAIF loan approved; positive engagement with banks For personal use only Funding Requirement ~$1.2 billion $913M capex1 plus working capital and funding costs ▪ NAIF2: Board Debt BCI Minerals Equity ▪ Target minimum approved $450M ~60% Limited ~40% $180M6 from existing loan
Slide 19: Project Schedule
Project Schedule 2021 2022 2023 2024 2025 For personal use only Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 Q1 | Q2 | Q3 | Q4 H1 | H2 Early Works; Approvals1 OFFTAKE CONTRACTS Funding EQUITY DEBT PONDS FID2 CRYSTALLISERS GROW SALT INVENTORY MAIN CONSTRUCTION START FIRST SALT SALT PLANT ON
Slide 20: Sustainability Focus
Sustainability Focus Inexhaustible resources, natural energy and waste minimization For personal use only ▪ 100+ year project life ▪ Inexhaustible seawater feedstock; no resource depletion Harness Renewable ▪ Zero landscape scarring - no mine pits, waste dumps or Resources large-scale dewatering Pro
Slide 21: Stakeholder Benefits
Stakeholder Benefits A multigenerational project benefiting multiple stakeholders For personal use only BENEFITS TO WA & COMMUNITY & HERITAGE AUSTRALIA1 ▪ Established Karratha office ▪ Corporate taxes: >$8Bn ▪ 500 construction jobs and 220 ongoing operating jobs ▪ State royalties: >$800M ▪ Prioritis
Slide 22: Why Invest in BCI?
Why Invest in BCI? Strong Iron Valley earnings and significant Mardie upside potential For personal use only CURRENT VALUATION MARDIE POTENTIAL ▪ Low enterprise value of ▪ Salt & SOP growth markets ~$150M ▪ Tier 1 – sustainable, large ▪ Record Iron Valley scale, low cost & long life royalties ▪ ~$26
Slide 23: BCI Board of Directors
BCI Board of Directors Brian O’Donnell Alwyn Vorster Michael Blakiston For personal use only NON-EXECUTIVE CHAIRMAN MANAGING DIRECTOR NON-EXECUTIVE DIRECTOR ▪ Banking and investment background ▪ Geology, Mining and MBA degrees ▪ Legal and mining business background ▪ Director, Finance and Investment
Slide 24: BCI Executive Team / Key Personnel
BCI Executive Team / Key Personnel Alwyn Vorster Sam Bennett Stephanie Majteles For personal use only MANAGING DIRECTOR PROJECT DIRECTOR GENERAL COUNSEL/JOINT COMPANY SECRETARY ▪ Geology, Mining and MBA degrees ▪ Civil engineering degree ▪ Law degree ▪ Kumba; Rio Tinto; Iron Ore Holdings ▪ Fortescue
Slide 25: Mardie Production Process
Mardie Production Process1 99% Sun and Wind Energy 4. Salt Wash For personal use only Plant 5. Salt Stockpiles C. SOP Storage Shed 7. Transhipper 6. 2.4km (12,000t) Jetty B. SOP Process Plant 8. Ocean Going Vessel A. KTMS2 (up to Capesize) Crystallisers (5km2) 9. Export 3b. Secondary Salt Crystallis
Slide 26: Embankment Trial Progress
Embankment Trial Progress For personal use only 26
Slide 27: For personal use only
For personal use only T +61 8 6311 3400 Level 1, 1 Altona St GPO Box 2811 E info@bciminerals.com.au West Perth West Perth W www.bciminerals.com.au WA 6005 WA 6872