Black Rock Mining Limited · ASX:BKT
Black Rock Mining — Africa Down Under 2024
27 slides from Black Rock Mining's conference presentation, Sep 4, 2024
Slide 1: Simply Better Graphite: Investor Update
Black Rock Mining Mahenge Graphite Mine For personal use only Simply Better Graphite: Investor Update Africa Down Under, Perth September 2024
Slide 2: Important notices
Important notices This presentation has been prepared by Black Rock Mining Limited (Black Rock or the Company) and has been approved by the Board of Black Rock. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in su
Slide 3: Black Rock at a glance and capital structure
Black Rock at a glance Capital structure ASX ticker BKT Premium graphite player Share price (28 August 2024) $0.053 Shares on issue 1,252.0m Developing the Mahenge graphite project in Tanzania: For personal use only - Tier 1 scale (2nd largest reserve globally) Options and performance rights 71.0m -
Slide 4: Black Rock team
Black Rock team Board of Directors Management Richard Crookes, Non-exec Chairman: Geologist with over 30 years Steuart McIntyre, GM Corporate Development: Mining analyst with over 15 executive experience in the resources and finance industries; raised capital years experience. Previous roles include
Slide 5: Graphite is the dominant anode material in batteries
Graphite in Graphite is the dominant anode material, regardless of battery chemistry batteries LFP 17% NMC 111 15% NMC 532 16% NMC 811 16% NCA 11% For personal use only Li-ion batteries 29% 43% Cathode (+) typically contain 68% 73% 83% 29% ~7-10x more graphite 24% than lithium. 27% 8% 17% 14% 8% LFP
Slide 6: Growing importance of natural graphite in batteries
Growing importance of natural graphite in batteries More natural 100% graphite in For personal use only 75% batteries 65% 41% 50% The use of natural 25% 50% graphite in batteries 30% has potential to grow 0% 2023 2030 from 30% of the Natural graphite Synthetic graphite Silicon LTO Other anode to 50%
Slide 7: Graphite pricing by Mahenge product
Graphite pricing by Mahenge product (last 12 months) US$/t Healthy margins 2,000 1,750 at spot prices 1,500 1,250 For personal use only Current graphite prices 1,000 support healthy potential 750 margins at Mahenge at 500 28/08/23 28/11/23 28/02/24 28/05/24 28/08/24 forecast AISC of US$518/t Split i
Slide 8: Diversified revenue stream: flake graphite prices
Diversified Flake graphite prices over last 4 years (Asian Metals) revenue stream US$/t For personal use only 1,400 Mahenge basket price 1,200 has been relatively steady as weaker fines 1,000 price has been offset 800 by stronger large flake price 600 The fines price (-194) appears to have 400 found
Slide 9: Fines price expected to recover
Fines price Graphite Flake, 94% C, -100 Mesh, FOB Qingdao, China expected to For personal use only recover Fastmarkets forecasting a ~50% increase in the -194 China price over the next ~18 months to ~US$680/t Source: Fastmarkets BRM Lithium & Graphite Short-term Forecast Tracker, 11 June 2024 Based
Slide 10: A snapshot of the Mahenge Graphite Project
A snapshot of the Mahenge Graphite Project Simple open pit mine development with outstanding forecast returns1 For personal use only US$1.4bn 36% 89ktpa NPV10 nom post tax, post 16% FC Post-tax, ungeared IRR Module 1 production* (1mtpa) 95 – 99%+ TGC purity US$231m 347ktpa 59% +80 mesh, 41% -80 Modu
Slide 11: Why Mahenge?
Julius Nyerere Hydropower Project (2115MW) Why Mahenge? For personal use only Unique competitive Large container port in Dar es Salaam advantages driven by geology and substantial existing infrastructure Tazara Railway Line Geology Substantial existing infrastructure ★ Mahenge’s 69.6mt Reserve makes
Slide 12: Forecast first quartile costs
Forecast first quartile costs 2024 Adjusted C1 Cost Curve* For personal use only First quartile assets are higher margin and more robust through the cycle Sources: Benchmark Mineral Intelligence Flake Graphite Report Q2 CY22, Black Rock Mining, Company Data C1 Cash Costs are defined as Cash Costs ex
Slide 13: A simpler development plan
▪ Black Rock pursuing a simple mine only strategy initially: A simpler ▪ Lower risk development ▪ Much lower capital intensity For personal use only plan A lower risk, much ▪ Unlike many peers, Mahenge is expected to make healthy margins at lower capex pathway current prices due to key competitive a
Slide 14: ESG focused ecosystem
ESG focused ecosystem For personal use only A new greener source of graphite with best Battery Large Flake practice whole of Environmental and Social Impact Assessment supply chain strategy Tanzanian Government Customer Markets Permitted Robust Compliance Local Content & Community ▪ 55% of capex in
Slide 15: Graphite playbook
MAJORITY OF PRE-CONSTRUCTION INVESTMENT Graphite PILOT PLANT QUALIFICATION playbook CUSTOMERS & OFF-TAKES GOVERNMENT Free-Carried Interest For personal use only Shareholding Agreement EPC Sequential development that is customer driven DRILLING SOCIAL LICENCE STUDY WORK MINING LICENCE & FINANCING APR
Slide 16: Development timetable
Development ▪ US$153m in debt approvals with DBSA, IDC and CRDB1 comprising: ▪ US$113m Term Debt timetable ▪ US$20m Working Capital Facility ▪ US$20m Cost Overrun Facility For personal use only Completion of loan documentation ▪ US$50m from POSCO approved2 (US$40m equity + US$10m prepay) imminent ▪
Slide 17: Strong near term news flow
Strong near Black Rock sees a number of potential de-risking milestones due near term: ▪ Potential POSCO milestones: term news ▪ Signing full-form offtake agreement ✓ ✓ For personal use only flow ▪ Signing full-form prepay agreement for US$10m ▪ Potential for POSCO to take up it’s right to a Black R
Slide 18: Black Rock ready to deliver
Black Rock ready to deliver Compelling Project Metrics Tier 1 Scale For personal use only 1st Quartile Costs The significant Tier 1 (low-cost green power, low strip) Higher proportion of large flake scale Mahenge Higher purity concentrates graphite mine into an Strong macro tailwind undersupplied an
Slide 19: For personal use only
Richard Crookes John de Vries Chairman For personal use only E: richard.crookes@blackrockmining.com.au Managing Director and CEO Steuart McIntyre T: +61 438 356 590 GM Corporate Development E: jdv@blackrockmining.com.au T: +61 413 555 609 A: Level 1, 1 Walker Avenue E: sm@blackrockmining.com.au West
Slide 20: Appendix
For personal use only Appendix
Slide 21: Strategic Alliance with POSCO
Strategic ▪ POSCO is Black Rock major shareholder holding a 10.1% stake ▪ POSCO is Black Rock’s cornerstone offtake partner: Alliance with ▪ Module 1: For personal use only POSCO ▪ Binding offtake agreement for fines1 (32% of volume) ▪ MOU for 6ktpa of large flake2 (7% of volume) ▪ Module 2: Black R
Slide 22: Tanzania: an improving jurisdiction for investment
Tanzania: ▪ Moody’s recently upgraded Tanzania to a B2 Positive due to reduced political risk and structural reform agenda 1 An improving For personal use only jurisdiction for ▪ Equinor/Shell/Exxon Mobil recently struck a deal for the development of an LNG terminal in Tanzania expected to cost tens
Slide 23: Li-ion battery raw materials supply chain by country
Li-ion battery EXTRACTION PROCESSING ANODE/CATHODE PRODUCTION BATTERY CELL MANUFACTUARING raw materials GRAPHITE EU, 4% Other, China, Other, 17% US, 10% EU, 6% China, For personal use only supply chain 23% 73% 73% Other, 11% China, China, 99% 83% by country COBALT Other, 99% China, 1% EU, 17% Other,
Slide 24: Energy Minerals increasingly attractive
Energy Minerals ▪ Several new energy components at “hockey stick” moment (see charts below) increasingly ▪ Graphite has a strong demand outlook ▪ But graphite is also opaque and dominated by China which attractive For personal use only makes new supply difficult to bring into production ▪ A very sim
Slide 25: Working towards an IRA-compliant supply chain
Working The Inflation Reduction Act (IRA) in the US provides a Clean Vehicle Credit 2 under Section 30D for qualifying vehicles for up to US$7,500 per vehicle 1 towards an ▪ Starting in 2024, qualifying vehicles cannot have battery components For personal use only manufactured or assembled by a fore
Slide 26: Graphite uses
Price increases with flake size Graphite uses For personal use only Black Rock has a diversified product SMALL FLAKE (FINES) LARGE FLAKE JUMBO FLAKE mix with 60% Lithium-Ion Batteries Flame Retardants Flame Retardants exposure to the high Paint & Coatings Refractories Gaskets & Seals margin large fl
Slide 27: Offtake agreements
Offtake Mahenge Offtake for Module 1 (89ktpa) agreements 100.0 For personal use only 90.0 5 5 5 5 5 ~95% of Mahenge’s 80.0 20 20 20 Module 1 production 70.0 is under binding 60.0 50 50 offtake, option or 50.0 30 30 30 MOU 40.0 30.0 6 6 6 6 6 20.0 28.5 28.5 28.5 28.5 28.5 10.0 0.0 Year 1 Year 2 Year