Black Iron Inc. · TSX:BKI
Black Iron — Investor Presentation (September 2021)
17 slides from Black Iron's investor presentation, September 2021
Slide 1: A Compelling Investment Opportunity
TSX: BKI; OTC: BKIRF; FWB: BIN A COMPELLING INVESTMENT OPPORTUNITY Corporate Presentation 2021
Slide 2: Disclaimer
DISCLAIMER Forward Looking Statement This Presentation contains ‘‘forward-looking information’’ within the meaning of applicable Canadian securities legislation. Forward-looking information is based on what management of Black Iron Inc. (“Black Iron”, “BKI” or the “Company”) believes to be reasonabl
Slide 3: Black Iron's Top Ranked Iron Concentrate Development Project
BLACK IRON’S TOP RANKED IRON CONCENTRATE DEVELOPMENT PROJECT Black Iron’s Shymanivske Project has the highest economic returns and lowest costs Highest financial return Lowest cost Shymanivske Note: The cost values shown have been normalised to a 62% Fe fines product (CFR China) in order to allow fo
Slide 4: Black Iron Has All the Key Fundamentals for a Highly Profitable Company in Place
BLACK IRON HAS ALL THE KEY FUNDAMENTALS FOR A HIGHLY PROFITABLE COMPANY IN PLACE Globally Top Ranked Project1 Lower Environmental Impact Product in Supply Deficit • Ranked as lowest cost undeveloped pellet feed project globally • 68% iron content vs. benchmark 62% = • Preliminary Economic Assessment
Slide 5: What Sets Black Iron Apart?
WHAT SETS BLACK IRON APART? Ability to phase build due to close Ultra High Grade 68% Product proximity to rail, power, port and skilled people • Black Iron’s 68% iron content product Most new mines are located >100km sells for ~$18-90/T premium from rail and/or power lines plus a port • Price premiu
Slide 6: 68% Iron Product Is Ultra Premium & Reduces Environmental Emissions
68% IRON PRODUCT IS ULTRA PREMIUM & REDUCES ENVIRONMENTAL EMISSIONS Black Iron’s 68% product is top 4% globally Seaborne Iron Ore Product by Grade >67% 65 - 67% 70% 62 - 65% 65% 58 - 62% % Fe <58% 60% 55% 50% 0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 Cumulative Produc
Slide 7: Updated Economic Study Highlights
UPDATED ECONOMIC STUDY HIGHLIGHTS* High Value, Low Cost Iron Ore Development Project Phase 1: 4Mt Annual Production: Phase 2: 8Mt Iron Content: 68.0% Estimated Capital Investment: Phase 1: US$452 million (capital intensity, includes 17% contingency) Phase 2: US$364 million Estimated Operating Expens
Slide 8: Strong Investment Returns in All Price Scenarios
STRONG INVESTMENT RETURNS IN ALL PRICE SCENARIOS Low operating & capital costs to ride all market cycles After-Tax NPV(1); IRR (Based on 40% equity & 60% debt financing) (1) Based on a 10% discount rate 8
Slide 9: Black Iron's Capital Funding Strategy
BLACK IRON’S CAPITAL FUNDING STRATEGY Discussions currently ongoing with high quality group of investors that will contribute to financing construction Construction Capital Mezzanine & Equity Phase 1 Senior Debt ± 40% ± 60% Offtake Bank Debt / • EOI’s received from $75M High-Yield Bonds major Europe
Slide 10: Several Major Milestones Being Delivered in the Coming Months
SEVERAL MAJOR MILESTONES BEING DELIVERED IN THE COMING MONTHS 1. Binding offtake agreement with minimum US$75M construction funding 2. Binding Ukraine Government land transfer 3. Ukraine Government investment support & tax reduction agreement 4. Feasibility study completion 5. Environmental & Social
Slide 11: Significant Upside Potential vs Peer Producers
SIGNIFICANT UPSIDE POTENTIAL VS PEER PRODUCERS Attractive Valuation with Substantial Upside Potential as Project Advances to Production Producers Capital Structure (TSX: BKI) Shares Outstanding 302 million $33.91 Stock Options 14 million Black Iron’s DSU 9 Million Potential Warrants 50 Million Fully
Slide 12: Management & Board Have Track Record of Iron Ore Success
MANAGEMENT & BOARD HAVE TRACK RECORD OF IRON ORE SUCCESS Key Management Board of Directors Matt Simpson – CEO Bruce Humphrey – Chairman • Former General Manager, Mining for Rio Tinto’s Iron • Former Chairman of Consolidated Thompson Iron Ore Company of Canada Ore and Chief Operating Officer of Goldc
Slide 13: Deposit in Mining Friendly Region
DEPOSIT IN MINING FRIENDLY REGION Adjacent to Seven Operating Iron Ore Mines, Rail and Power lines Seven operating iron ore mines within 40km ArcelorMittal’s Kryvyi Rih Iron Ore Complex Adjacent to ArcelorMittal’s iron ore mine & steel mill and Metinvest/ Evraz’s YuGOK iron ore mine Black Iron’s Shy
Slide 14: Strategic Global Location
STRATEGIC GLOBAL LOCATION Close Proximity to Target Markets with Abundant Port and Rail Access Project surrounded by steel mills in Europe, Turkey and the Middle East – only 5hrs to reach Turkey Iron ore district trends 300km with sedimentary rock hosted banded iron formations 20% to 25% shorter tra
Slide 15: Business Conditions Improving in Ukraine
BUSINESS CONDITIONS IMPROVING IN UKRAINE Economy improving following geo-political and economic turbulence World Bank: Ease of Doing Business Rank • Fitch Sovereign Risk rating of B (stable) 64 out of 190 countries, the lower the rank the easier to do business • Recently upgraded based on newly elec
Slide 16: Now Is the Ideal Time to Invest in Black Iron
NOW IS THE IDEAL TIME TO INVEST IN BLACK IRON Top Ranked Project Highly respected market intelligence group Wood Mackenzie rank Black Iron as highest development stage IRR (internal rate of return) and CRU as lowest operating cost globally Solid Plan to Finance Construction Leveraging offtake + roya
Slide 17: Contact Us
TSX: BKI; OTC: BKIRF; FWB: BIN CONTACT US: FOLLOW US: 198 Davenport Rd. www.blackiron.com Toronto, ON, Canada, M5R 1J2 Toronto: +1(416) 309 2138 Ukraine: +380 (56) 409 2536 info@blackiron.com