Bci Minerals Ltd · ASX:BCI
Bci Minerals — Investor Presentation (November 2019)
24 slides from Bci Minerals's investor presentation, Nov 27, 2019
Slide 1: Developing the Tier 1 Mardie Salt & Potash Project
For personal use only Developing the Tier 1 Mardie Salt & Potash Project Corporate Presentation 27 November 2019 www.bciminerals.com.au
Slide 2: About BCI Minerals
About BCI Minerals For personal use only ▪ Based in Perth, Australia 0.24 7 0.22 6 Share Price (A$) 0.20 5 ▪ ASX listed as “BCI” Volume (m) 0.18 4 0.16 3 ▪ Market cap of ~A$70M 0.14 2 0.12 1 ▪ A$43M1 cash and zero debt 0.10 0 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 ▪ Australian Capital Equity grou
Slide 3: Iron Valley Mine
Iron Valley Mine For personal use only ▪ Quarterly earnings via royalty agreement with Mineral Resources Ltd (MIN) ▪ 6-8Mtpa production; 89Mt Reserves1 ▪ Potential mine life of ~11 years ▪ 50% lump ore; 59% Fe average ▪ Since first production in 2014: – BCI Revenue: $235M – BCI EBITDA: $60M Iron Val
Slide 4: The Mardie Opportunity
The Mardie Opportunity Strong demand growth for Salt and Potash For personal use only Salt as chemical feedstock Asian Demand MARDIE SALT & POTASH PROJECT • Ideal location • 100–year life Sulphate of Potash • Low cost as premium • Large scale fertiliser 4
Slide 5: Salt Market
Salt Market Increasing population requires more industrial products (with salt as primary input) For personal use only Paper Construction Glass Salt Uses in Asia, 2018 (150Mt / 300Mt globally) Aluminium & Metals Ceramics Chemical, 117Mt, 78% Paints Mineral Oils Others, Food, 12Mt, 8% 18Mt, 12% De-ic
Slide 6: SOP Market
SOP Market More people needing more & better quality food driving SOP fertiliser demand For personal use only Global Potash Demand by Product (70Mt) ▪ Plant growth depends on three primary nutrients – Nitrogen (N), Phosphate (P) and Potassium (K) ▪ Two main types of potassium fertilisers: MOP (KCl),
Slide 7: Australian Salt & SOP Landscape
Australian Salt & SOP Landscape Mardie has ideal location to produce high purity salt For personal use only ▪ Pilbara has ideal climate to produce high purity salt o High temperature, high wind, low rainfall, low humidity ▪ Five large existing solar Salt operations in WA: ▪ Controlled by Rio Tinto a
Slide 8: Mardie Project Footprint
Mardie Project Footprint 3km For personal use only Causeway • 150km2 clay soils – ideal to retain Site Conditions water in ponds Salt 3km Jetty Crystallisers SOP • Availability of construction materials Crystallisers • 9 evaporation ponds Salt Stockpiles • 42 salt & 22 SOP crystallisers P9 P8 SOP Pl
Slide 9: Mardie DFS on Target for Q1 2020
Mardie DFS on Target for Q1 2020 $5M land and marine geotechnical For personal use only Offtake: 7x MOUs for 2.5Mtpa salt and 10ktpa SOP programme completed Flowsheet, pond and crystalliser design completed Design of salt plant and SOP plant completed Port design completed 9
Slide 10: Small Scale Trial Ponds
Small Scale Trial Ponds For personal use only ▪ 1:40,000 scale version (~1 hectare) of entire pond / crystalliser layout to produce lab-scale and customer samples ▪ First salt recently harvested from salt crystallisers ▪ >20 pan evaporators for controlled evaporation tests at a range of densities Sm
Slide 11: Large Scale Trial Pond
Large Scale Trial Pond Construction of ~A$15M early works For personal use only programme commenced in October Large trial pond with ~2km pond walls (capacity 175 Olympic pools) 36-bed camp expandable to 250 beds Seawater pump station with 1 of 6 pumps installed (1 pump has 2,600l/s capacity) 11
Slide 12: Approvals & Tenure Well Defined
Approvals & Tenure Well Defined For personal use only Environmental ▪ 3 years of surveys completed and no material issues identified ▪ EPA approval targeted in 1H 2020 Heritage ▪ Land Use Agreements for production secured with Traditional Owners Tenure ▪ Mining Lease tenure applications well advance
Slide 13: Mardie's Competitive Positioning
Mardie’s Competitive Positioning Potential lowest cost quartile salt producer For personal use only Asian Salt Cost Curve – Supply into Mardie Contestable Market1 40 35 ▪ Mexican salt into Asia and Chinese rock salt sets the Asian salt floor price ~US$35/t CIF 30 US$/t CIF / Ex-Works Central China R
Slide 14: Attractive Project Economics
Attractive Project Economics1 Production (60 years) For personal use only ▪ Salt: 4.0Mtpa ▪ SOP: 100ktpa Capex2 (nominal) ▪ Salt & Port: A$470M Financials2 (pre-tax, ungeared, real) ▪ SOP: A$100M ▪ NPV10: A$580M ▪ NPV8: A$925M Opex2 (FOB basis, real) ▪ Salt: A$14/t ▪ EBITDA: A$165M/a ▪ SOP: A$200/t
Slide 15: Timeline to Production
Timeline to Production Targeting start of construction in 2H 2020 leading to first salt sales in 2H 2023 For personal use only 2H 2019 2020 2021 2022 2023 2024 DFS / Early Works / FEED Approvals Salt Construction Salt Sales Port Construction SOP Construction SOP Sales Start of Construction 15
Slide 16: Preliminary Financing Structure Concepts
Preliminary Financing Structure Concepts Positive engagement with potential debt and equity providers For personal use only Other Financial Offtake ACE Group shareholders Investor(s) Investor(s) Equity: A$200-250M NAIF1 Debt: A$400-500M Banks Mardie Minerals ECA / Other Mardie Project 1: North Austr
Slide 17: Long Term Stakeholder and Public Benefits
Long Term Stakeholder and Public Benefits For personal use only 1. Renewable & Sustainable Inexhaustible seawater resource and 95% of energy derived from sun and wind 7. Strong shareholder returns 2. Port common use facility Pre-tax NPV8: A$925M New port can unlock many Pre-tax IRR: 19% other projec
Slide 18: Mardie is a unique opportunity to create long term value
Mardie is a unique opportunity to create long term value For personal use only ▪ BCI current market capitalisation is ~A$70M; Assets include: 1. Cash: A$431 and zero debt 2. Iron Valley royalty NPV8 ~A$75M2 3. Mardie Project: peer comparable valuation ~A$100M3 ▪ Current upside plus additional value
Slide 19: Important Notices
Important Notices This presentation has been prepared by BCI Minerals Limited ABN 21 120 646 924 (“BCI”). For personal use only 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 a
Slide 20: Appendix
For personal use only Appendix
Slide 21: BCI Board and Management
BCI Board and Management Brian O’Donnell Alwyn Vorster Tony Chamberlain For personal use only Non-Executive Chairman Managing Director Project Director ➢ Director, Finance and Investments ➢ Geology, Mining and MBA degrees ➢ Chemistry/Metallurgy degrees for Australian Capital Equity group (PhD) ➢ Kum
Slide 22: Mardie Project Team
Mardie Project Team For personal use only External Support Internal Mardie Team Tony Chamberlain Lead DFS Engineer Project Director ➢ Chemistry / Metallurgy degrees (PhD) ➢ WMC; BHP; Vimy ➢ Feasibility studies; Construction; Operations Ponds & Crystallisers Andrew Wydler Laurie Huck Warwick Jones En
Slide 23: Buckland Iron Ore Project
Buckland Iron Ore Project ▪ Shovel-ready, iron ore development project in the West For personal use only Pilbara ▪ Close proximity to other significant undeveloped West Pilbara deposits (numerous APIJV deposits, MinRes’ Kumina deposit and Flinders’ Pilbara Iron Ore Project) ▪ Ore Reserve of 134.3Mt
Slide 24: For personal use only
For personal use only T +61 8 6311 3400 Level 2, 1 Altona St GPO Box 2811 E info@bciminerals.com.au West Perth WA 6005 West Perth WA 6872 W www.bciminerals.com.au