Blackstone Minerals Ltd · ASX:BSX
Blackstone Minerals — Paydirt Nickel Conference 2021
29 slides from Blackstone Minerals's conference presentation, Oct 5, 2021
Slide 1: BSX Investor Presentation - Paydirt Nickel Conference
BSX INVESTOR PRESENTATION Paydirt Nickel Conference October 2021 ASX:BSX 1
Slide 2: Cautionary & Forward Looking Statement
CAUTIONARY & FORWARD LOOKING STATEMENT The PFS referred to in this Presentation is the study of the potential viability of the Ta Khoa Refinery Project. It has been undertaken to understand the technical and economic viability of the TKR. The Company has concluded that it has a reasonable basis for
Slide 3: Investment Thesis
INVESTMENT THESIS Exposure to rapidly intensifying green electrification Cathode Production Capacity* (kt) vs Nickel Demand (kt) movement - 1,000 2,000 3,000 ▪ Blackstone provides excellent exposure to the growing electric vehicle and Li-ion battery thematic ▪ Once in a generation opportunity to pos
Slide 4: Global Class I Nickel Producers
GLOBAL CLASS I NICKEL PRODUCERS FUTURE DEMAND FOR CLASS I NICKEL TO BE DRIVEN BY RAPID GROWTH IN THE LI-ION BATTERY INDUSTRY Increasing Nickel Demand from Li-ion batteries Majority of current Class I nickel Source: Benchmark Mineral Intelligence 250 1,600 demand is driven by non-battery applications
Slide 5: NCM Market
NCM MARKET BY 2030, NCM IS EXPECTED TO DOMINATE OTHER NICKEL RICH CHEMISTRIES INCLUDING NCA AND LMNO Within the NCM chemistry class, NCM811 Precursor is expected to gain the largest market share 2030 Snapshot – Adoption of Nickel Rich Battery Chemistries ▪ Blackstone began its life as an explorer wh
Slide 6: Blackstone Ta Khoa Project
BLACKSTONE TA KHOA PROJECT THE TA KHOA MINE & DOWNSTREAM REFINERY IS LOCATED IN THE HEART OF A MAJOR LITHIUM-ION BATTERY HUB Ta Khoa Mine (Nickel-PGE-Copper-Cobalt) ▪ 34.8km2 of tenements with multiple Ni PGE (Cu Co) prospects, a well maintained 450ktpa mill, concentrator and mine facilities built t
Slide 7: What Do We Mean by Green Nickel?
WHAT DO WE MEAN BY GREEN NICKEL™? Pressure Renewable Oxidation Power Leach Flowsheet Vertically Fossil Fuel Integrated Replacement Value Chain Sulfide Green Corporate commitment Nickel Nickel™ to ESG 7
Slide 8: Blackstone Minerals - Corporate Snapshot
BLACKSTONE MINERALS - CORPORATE SNAPSHOT BLACKSTONE MINERALS LIMITED BOARD OF DIRECTORS ASX Code BSX Scott Williamson Hamish Halliday Andrew Radonjic Alison Gaines Hoirim Jung OTCQX Code BLSTF Shares on Issue 341.2m Last Share Price (30 September 2021) A$0.465 Market Capitalisation A$159m Managing N
Slide 9: Blackstone Business Model
BLACKSTONE BUSINESS MODEL INTEGRATED UPSTREAM & DOWNSTREAM BUSINESS UNITS Blackstone – Listed Co 100% 100% 1. Upstream Downstream 2. Downstream Business Unit Partner(s) Business Unit (UBU) (DBU) Future Asset Investments 90% Future Alliances Alliance 1 Alliance 2 Alliance 3 Alliance 4 Ta Khoa - Vietn
Slide 10: PFS Development Strategy
PFS DEVELOPMENT STRATEGY INTEGRATION OF NICKEL SUPPLY CHAINS Mine Ore → Concentrate Third party concentrate M&A / Upstream JV Partners Ta Khoa Nickel-Cu-PGE Project Chemical Refinery Concentrate → MHP → Precursor NCM Downstream JV Partners Scalable Refinery Cathode Plant ▪ The BSX development strate
Slide 11: Timeline: Upstream Business Milestones
TIMELINE UPSTREAM BUSINESS MILESTONES Blackstone continues to aggressively drill several high confidence exploration targets within the Ta Khoa district. Restart MSV & DSS Mining & DFS Commercial Resource PFS Existing Production Delineation Concentrator 2021 H1 - 2021 H2 2022 2023 2024 11
Slide 12: District Scale Nickel Sulfide Opportunity - Ta Khoa Project
DISTRICT SCALE NICKEL SULFIDE OPPORTUNITY – TA KHOA PROJECT AGGRESSIVE EXPLORATION TARGETING HIGH GRADE MSV & DSS MINE LIFE EXTENSIONS ▪ District scale Nickel PGE (Cu Co) green nickel™ sulfide project ▪ Limited regional exploration ▪ Target identification and prioritisation within a 5km of existing
Slide 13: Ban Phuc Disseminated (DSS) Open Pit Orebody
DISTRICT SCALE NICKEL SULFIDE OPPORTUNITY – BAN PHUC DISSEMINATED (DSS) OPEN PIT OREBODY A resource update for the Ban Phuc DSS orebody is due in Q4 and will underpin the upcoming Upstream PFS Blackstone discovered the King Cobra shallow, high grade zone within the Ban Phuc DSS Ban Phuc Cu Co Pd Pt
Slide 14: Ban Khoa Disseminated (DSS) Open Pit Orebody
DISTRICT SCALE NICKEL SULFIDE OPPORTUNITY – BAN KHOA DISSEMINATED (DSS) OPEN PIT OREBODY Ban Khoa is bulk tonnage open pit opportunity that has potential to extend mine life and complement mining at the near by Ban Phuc DSS deposit 14
Slide 15: Maiden Resource at Ban Chang (MSV) Expected 2021 Q4
DISTRICT SCALE NICKEL SULFIDE OPPORTUNITY – MAIDEN RESOURCE AT BAN CHANG (MSV) EXPECTED IN 2021 Q4 Ban Chang is Blackstone’s most advanced MSV underground mining target MSV hosted within a broader disseminated halo 15
Slide 16: Maiden Resource at King Snake (MSV) Expected 2021 Q4
DISTRICT SCALE NICKEL SULFIDE OPPORTUNITY – MAIDEN RESOURCE AT KING SNAKE (MSV) EXPECTED IN 2021 Q4 Surface EM targeting has accurately guided the down plunge drilling of hundreds of meters from the historic surfaces showing 16
Slide 17: Exploration Pipeline
DISTRICT SCALE NICKEL SULFIDE OPPORTUNITY – TA KHOA PROJECT EXPLORATION PIPELINE Suoi Chanh CONCEPTUAL Nam Noi Queen Snake PRODUCTION TARGETS Suoi Phuc READY Co Muong Phai Han Suoi Lap Suoi Hao Ban Phuc Suoi Phang COMMITTED Resource: 44.3Mt @ 0.52% Ni RESOURCE DRILL TARGET Ban Chang* TESTING Suoi Ta
Slide 18: District Scale Nickel Sulfide Opportunity - Chim Van
DISTRICT SCALE NICKEL SULFIDE OPPORTUNITY – CHIM VAN BLACKSTONE TO WORK WITH VIETNAMESE GOVT TO IDENTIFY NEW OPPORTUNITIES Blackstone Minerals to jointly explore with the General Department of Geology & Minerals of Vietnam (GDGMV), initially conducting new geophysics exploration to advance the Chim
Slide 19: Ta Khoa Refinery Feed Sources
TA KHOA REFINERY FEED SOURCES BLACKSTONE IS CONFIDENT IT WILL BE ABLE TO FILL THE BASE CASE 400KTPA TA KHOA REFINERY Ta Khoa DSS Trafigura & others • Ban Phuc ~ 200ktpa *As per Oct 2020 Scoping Study Feed: Top up • Ban Khoa Ta Khoa MSV’s Third Party Feed Excluded from PFS study, but future ▪ New par
Slide 20: Downstream Pre-Feasibility Study Highlights
DOWNSTREAM PRE-FEASIBILITY STUDY HIGHLIGHTS 28 Ni Nickel 43.5ktpa 85.6ktpa US$451m Globally significant refined Production of premium Average annual operating annual nickel output NCM811 Precursor for the cash flow Li-ion battery industry US$2.01bn Post-tax IRR of 67% Low Capital Intensity Superior
Slide 21: Ta Khoa Refinery Location Study
TA KHOA REFINERY LOCATION STUDY BLACKSTONE HAS RECEIVED STRONG PROVINCIAL GOVERNMENT SUPPORT Each of the proposed locations in the map below were qualitatively judged against key factors including provincial level support, residue disposal, tax incentives, logistics, renewable power supply, power co
Slide 22: Versatile Business Model
VERSATILE BUSINESS MODEL FLOWSHEET IS AMENABLE TO A RANGE OF INTERMEDIATE AND BATTERY GRADE PRODUCTS The PFS refinery design will enable the production of multiple products, including NCM 811 which attracts a strong premium to metal prices. Illustration of Nickel Product Payability vs Metal Spot Pri
Slide 23: Ta Khoa Refinery Process Flow Diagram
TA KHOA REFINERY DOWNSTREAM REFINERY PROCESS FLOW DIAGRAM Conversion of nickel concentrate into a MHP chemical, and thereafter to Precursor NCM uses established and well understood technology. Flash Steam Concentrate Transport Repulp & Pre-leach POX Autoclave Flash Vessel Residue Filtration Concentr
Slide 24: Downstream PFS Economic Outcomes
DOWNSTREAM PFS ECONOMIC OUTCOMES BASE CASE TA KHOA REFINERY GENERATES A POST-TAX NPV OF US$2.01bn The Ta Khoa Refinery valuation applies a conservative NCM811 Precursor price below current observable spot market rates. The economics of the Ta Khoa Refinery has low sensitivity to capital costs, with
Slide 25: NCM811 Precursor Price Forecast
NCM811 PRECURSOR PRICE FORECAST THE PFS ASSUMES AN NCM811 PRECURSOR PREMIUM of 20% The realised NCM811 Precursor Price in the PFS modelling is below currently observable on the spot market. 70% NCM811 premium over metal prices Item Nickel Cobalt Manganese NCM811 NCM811 NCM811 NCM811 Metal Metal Meta
Slide 26: Base Case Sensitivity Analysis
BASE CASE SENSITIVITY ANALYSIS THE TA KHOA REFINERY IS A CYCLE PROOF ASSET The table below is a two-way sensitivity analysis for the post-tax valuation of the Ta Khoa Refinery assuming a range of NCM811 Precursor Premium and concentrate payability. ▪ The Ta Khoa Refinery is a margin-based business w
Slide 27: Timeline: Downstream Business Milestones
TIMELINE DOWNSTREAM BUSINESS MILESTONES Over the next 12 months Blackstone will increase confidence in the Ta Khoa Refinery by progressing a DFS and proceeding to build a pilot plant in Northern Vietnam. Blackstone is inviting interested parties to collaborate during this phase. FID, Detailed NCM DF
Slide 28: Competent Person Statement
COMPETENT PERSON STATEMENT The information in this report that relates to Exploration Results and Exploration Targets is based on information compiled by Mr Andrew Radonjic, a Non-Executive Director and Technical Consultant of the company, who is a Member of The Australasian Institute of Mining and
Slide 29: Thank You
THANK YOU Suite 3, Level 3, 24 Outram Street, West Perth, WA, 6005 T: +61 8 9425 5217 | F: +61 8 6500 9982 E: admin@blackstoneminerals.com.au | www.blackstoneminerals.com.au 29