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TSX: BKI
2
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
believes to be reasonable assumptions, opinions and estimates of the date such statements are made based on information available to them at that time, including those factors discussed
in the section entitled ‘‘Risk Factors’’ in the Company’s annual information form for the year ended December 31, 2011 (and dated March 26, 2012) or as may be identified in the
Company’s public disclosure from time to time, as filed under the Company’s profile on SEDAR at www.sedar.com. Forward-looking information may include, but is not limited to,
statements with respect to results of the Feasibility Study (as defined below) and the mineral reserve and resource estimate, the future financial or operating performance of the Company,
its subsidiaries and its projects, the development of and the anticipated timing with respect to the Shymanivske project, the ability to obtain financing; and the impact of concerns relating
to permitting, regulation, governmental and local community relations. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans",
"expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and
phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Estimates underlying the results of the Feasibility Study
arise from engineering, geological and costing work of Lycopodium Minerals Canada Ltd. (“Lycopodium”), Soutex Inc. (“Soutex”), Watts, Griffis and McOuat Limited (“WGM”), Consulting
Geologists and Engineers of Toronto, P&E Mining Consultants Inc. (“P&E”) and the Company. See the technical report relating to the feasibility study for a description of all relevant
estimates, assumptions and parameters. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general
business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; other risks of the mining industry and the risks described in the
annual information form of the Company. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be
accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking
information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
This Presentation does not constitute an offer to sell, or solicitation of an offer to buy, any securities by any person in any jurisdiction in which it is unlawful for such person to make such an
offering or solicitation. No representation or warranty, express or implied, is made as to the accuracy or completeness of the information set out herein, and nothing contained herein is, or
shall be relied upon, as a promise or representation, whether as to the past or future.
Bankable Feasibility Study (the “Feasibility Study”) – For additional information, please see the Company’s press release dated January 23, 2014.
*Resource estimate compiled using historic Soviet data by Hugues de Corta, who is an independent qualified person as defined by NI 43-101. Readers should not place undue reliance on
historical estimates.
*The mineral resource estimate for the Shymanivske Project is based on results from 185 historical drill holes totaling 37,316 meters and 60 Black Iron drill holes, which were drilled during
the Company’s Twin Hole drill program and the Definition Drill program, totaling 16,518 meters and is effective as of September 2012. Watts, Griffis and McOuat Limted (“WGM”),
Consulting Geologists and Engineers of Toronto, Canada, was retained to audit an in-house mineral resource estimate completed by Black Iron. Mr. Michael Kociumbas, P.Geo, Vice-
President of WGM and Mr. Richard Risto, P.Geo, Senior Geological Associate of WGM, were retained by Black Iron as independent technical consultants and are Qualified Persons as defined
by NI 43-101 and are responsible for reviewing and approving this mineral resource estimate. The Feasibility Study was prepared in accordance with the guidelines of National Instrument 43-101 by the independent firms of WorleyParsons Canada Services Ltd., Watts, Griffis and McOuat Limited and P&E Mining Consultants Inc.
*Matt Simpson President & CEO of Black Iron, a Qualified Person as defined by NI-43-101, has reviewed and approved the scientific and technical information in this presentation.
TSX: BKI
3
What Sets Black Iron Apart? Access to Skilled Labour & Infrastructure –
Two of the Most Challenging Iron Ore Project Development Risks
Key Development Risks
Taxes/Royalties
Human Resources
Access to Infrastructure
Community Opposition
Licensing/Permitting
Access to Water
Electricity Supply
Canada
Brazil
Africa
Australia
Ukraine
3
TSX: BKI
* Please see note on Page 2 4
Black Iron has ALL the Key Fundamentals for
a Successful Low Cost Project in Place
Exceptional Infrastructure
• Significant infrastructure
advantages (power, rail
and port) with confirmed
access and capacity
• Skilled local workforce
• Local partnerships
Compelling Economics
• Bankable Feasibility Study
(Shymanivske Project):
- 9.9Mtpa of 68% Fe Conc.
- Pre-tax NPV8 of US$3.3B
- Pre-tax IRR of 48%
• Pre-tax break even price of
$54/t (after-tax)
Sizable Resource
• Large NI 43-101 Compliant
Resource*
- Shymanivske
646Mt (M+I) @ 32% Fe
188Mt (Inf) @ 30% Fe
- Zelenivske (upside)
1.1 - 1.8Bt potential
Skilled
Leadership
• History of creating value
for shareholders
• Significant Ukrainian
political and iron ore
operations experience
Close to Target Markets
• Located in Kryviy Rih,
Ukraine a major iron ore
district, close to Europe,
Turkey, Russia, Asia and
Middle East
Metinvest Development Agreement
• Ukraine’s largest company,
9th globally in iron ore, 16th
in steel
• Committed to half of
project construction
financing (est. $250-$500M)
TSX: BKI
Board of Directors Key Management
Matt Simpson – President & CEO
• Former General Manager, Mining for Rio Tinto’s Iron Ore Company of Canada
• Worked for Hatch designing global metallurgical refineries
George Mover – COO
• Former Project General Director of Ferrexpo Yeristovo Mining, Ukraine
• Since 1994 worked on numerous mining projects in Former Soviet Union (Ukraine, Russia, Kazakhstan, Armenia)
Paul Bozoki – CFO
• Former CFO of CD Capital Partners, operating in Former Soviet Union & Ukraine
Aaron Wolfe – VP Corp Development
• Former investment banker with Macquarie
Nikolay Bayrak – VP Gov’t & Community Relations
• Former department head, Ukrainian Ministry of Emergencies and Public Protection; Former MP and President of MP’s Parliamentary Social Club
Bruce Humphrey – Chairman
• Former Chairman of Consolidated Thompson Iron Mines
Jaroslav Kinach
• Former Advisor to Ukraine Prime Minister and former Ukraine Country Head of EBRD
Chris Westdal
• Canadian Ambassador to Ukraine (1996-98) and to Russia (2003-06)
Pierre Pettigrew
• Former Canadian Minister for Foreign Affairs and international Trade
John Detmold
• Chairman & Founder of Invescture Group, S.A. de C.V. which owns Frontera Copper Corporation
Dave Porter
• Former VP for Rio Tinto’s Iron Ore Company of Canada and COO of Algoma Steel
Matt Simpson – President & CEO 5
A Track Record of Iron Ore Success with Consolidated Thompson Iron Mines, Rio Tinto’s Iron Ore Company
of Canada, and Ferrexpo
TSX: BKI
6
Project Backed by Forbes & Manhattan Success with Consolidated Thompson’s Bloom Lake Iron Mine
• World class 8Mtpa iron ore concentrate mine in Quebec
• Advanced from exploration stage through development to construction
− 8 mtpa capacity (66% Fe concentrate) expanding to 16 mtpa
− Completed scoping study, 3 feasibility studies, secured off-take with China’s third largest steel producer (WISCO)
• Raised over Cdn$1 bn in capital
• Attracted and put in place a qualified management team
Recently acquired for $4.9 billion
$1 mm market
cap
First F&M involvement
Forb
es
& M
anhatt
an I
nvolv
em
ent
2005 Q1-2011
Acquired for $4.9 billion
TSX: BKI
7
Major Local Development Partner: Metinvest Ukraine’s Largest Company and a Global Iron Ore & Steel Producer
• Over 100,000 employees; Generated US$12.6 billion of revenues and a 16% EBITDA margin in 2012
• Metinvest is owned by System Capital Management (SCM) and Smart Holding
• SCM has over US$28.4B in assets and operations across 13 different areas including ownership of:
• Global Commodity Ranking:
• DTEK >18GW of electricity production (~26%)
• Leman Trans, ~21% of railway cars
• Portinvest, ~13% of Ukraine’s port capacity
• 9th in Iron Ore with 33.9 MT • 16th in Steel with 18.4 MT • 33rd in Coal with 2.6 MT
TSX: BKI
Sound Capital Structure Attractive Valuation with Substantial Upside & Funding Support
8
Corporate Structure Capital Structure (TSX: BKI)
Shares Outstanding 141.5 million
Stock Options (1) 5.7 million
Fully Diluted Shares 147.2 million
Market Cap(2) ~US$29.3 million
Current Cash Balance(3) ~US$3.1 million
Debt Balance nil
1. 5,713,750 options exercisable at a weighted average price of $0.45 per share. 2. As at January 22, 2014, using a closing price of CAD $0.23 per share. 3. As at Sept 30, 2013 per Q3 Unaudited Financial Statements.
Metinvest Transaction Summary
Analyst Coverage
Black Iron Inc. (TSX: BKI)
Shymanivske Steel
Zelenivske Steel
Metinvest
Black Iron Cyprus
• Metinvest acquires 49% of Black Iron Cyprus for a total commitment up to US$535M
– US$20M due upon closing
– Matching of any further equity financed capital
• Metinvest option to increase ownership in Black Iron Cyprus to 51%
− Option vests after 3 consecutive months of production at nameplate capacity
− Option priced at a 30% premium to the fair market value as derived by an independent third party
TSX: BKI
9
Deposits In Mining Friendly Region Adjacent to existing Iron Ore Producers
• Two mining and exploration permits covering 5.92 km2
− Mining permit at Shymanivske, which has been extensively explored, covering 2.56 km2 valid until 2024
− Exploration permit at Zelenivske covering 3.36 km2 valid until 2014
• Adjacent to ArcelorMittal’s Kryviy Rih iron ore complex and Smart & Evraz’s YuGOK iron ore mine
• Plan to acquire a plot of land from Ukraine Government adjacent to the Shymanivske deposit for project waste dumps, concentrator and tailings
Black Iron’s Shymanivske Project
M&I: 646Mt @ 31.6% Inferred: 188Mt @ 30.1%
Black Iron’s Zelenivske
Project
ArcelorMittal’s Kryviy Rih Iron Ore Complex
Smart & Evraz’s YuGOK Iron Ore Mine
Railway lines
** See Black Iron’s website at www.blackiron.com for a Corporate Video highlighting the project location and infrastructure **
TSX: BKI
10
Large Ore Deposit with Growth Potential
• Banded iron formation consisting primarily of magnetite with some hematite
− Iron band thickness ranges from 40-80 m
− Only 9.7-21.2 m of overburden with a strip ratio of 1.63:1, life of mine; 1.36:1 for first 8 years
− Very clean ore body low in phosphorus, manganese and aluminum
• Resource defined by ~54,000 metres of drilling
― Black Iron completed a Twin Hole Drill Program consisting of 6,042 metres and a Phase II Drill Program consisting of 11,435 metres of infill drilling
― Total iron grade and band width align very well with 37,000 metres of historical drilled data
• Potential for total combined resource expansion of 1.1 to 1.8BT
− Additional drilling of Shymanivske at North end of deposit and to depth
− Exploration of the Zelenivske project
Shymanivske
Resource*
Tonnage
(Mt)
Fe Tot
(%)
Fe Mag
(%)
Measured 355.1 32.0 19.5
Indicated 290.7 31.1 17.9
Total Measured and Indicated
645.8 31.6 18.8
Inferred 188.3 30.1 18.4
* Please see note on page 2 Tonnage and grade rounded to first decimals. Cut-off grade of 10% Fe Mag
TSX: BKI
11
Potential Resource Extension at Shymanivske Ground Gravity Shows Iron Ore Mineralization at North End
• Ground gravity and magnetic surveys show potential extension of iron ore mineralization at North end of property as circled in red
• This area has not been included in the NI 43-101 resource as it has not yet been sufficiently drilled
• The identified area will be a target of a future drill program to allow for a second phase process plant expansion to increase production and project value
Potential resource upside to be drilled
Drill hole
Property boundary
Very likely Iron in ground
Likely just dirt in ground
TSX: BKI
Extensive Pit Shell Design and 3D Model
Completed (Property Overview)
12 * Bankable Feasibility Study complete by Lycopodium Minerals Canada Ltd.
TSX: BKI
Concentrator Footprint Compressed by
Staggering HPGRs and Stacking LIMS
13 * Bankable Feasibility Study complete by Lycopodium Minerals Canada Ltd.
TSX: BKI
14
Conventional Flowsheet Producing High Quality Iron Ore Products
Fe 68.0%
SiO2 4.5%
P 0.02%
S 0.05%
Al2O3 0.43%
Mn 0.03%
P80 32 µm
B.F. Concentrate
Fe 65.5%
SiO2 4.5%
S <0.01%
CaO/SiO2 0.15%
SiO2+Al2 O3 5.1%
CaO+MgO 1.0%
Compress. 318kg/pel
B.F. Pellets
Fe 69.5%
SiO2 1.3%
P 0.02%
S 0.05%
Al2O3 0.28%
Mn 0.03%
P80 32 µm
D.R. Concentrate
Fe 67.4%
SiO2 2.0%
S <0.01%
CaO/SiO2 0.34%
SiO2+Al2 O3 2.4%
CaO+MgO 1.2%
Compress. 283g/pel
D.R. Pellets
Co
re P
rod
uct
Va
lue
-Ad
d
Alt
ern
ati
ve
P
rod
ucts
TSX: BKI
15
Excellent Infrastructure with confirmed access Key to a Successful Iron Ore Project
• Paved roads to site, located 35km away from the major city of Kryviy Rih which has a skilled work force
• Surplus electricity readily accessible from high voltage power lines that run beside property
• ~2 km from main state-owned rail line
• Confirmation in July 2010 from Ukrainian Government that there is sufficient capacity to haul at least an additional 20 million tonnes of iron ore per annum
• 5 deep water ports accessible by rail with iron ore facilities available
• Preferred port option is Yuzhny located ~430 km away and providing access to the Black Sea and global seaborne iron ore markets
** See Black Iron’s website at www.blackiron.com for a Corporate Video highlighting the project location and infrastructure **
TSX: BKI
16
Strategic Global Location Close Proximity to Target Markets with Abundant Port and Rail Access
• Project is surrounded by steel mills in Europe, Turkey and the Middle East
• River barge & rail access to Western Europe.
• Five dry bulk tonnage ports accessible using railway running beside properties
• Approx 20% to 25% shorter transport distance to growth markets of India and China compared to North and South American producers
• Excellent Ukrainian logistical advantages
• Densely populated roadway infrastructure
• 468 million tonnes of cargo transported via rail
• 155 million tonnes of cargo transported via ship
TSX: BKI
17
Ukraine: A Mining Friendly Country in
Transition
• S&P Sovereign Risk rating of B
− Next Presidential election to occur in Q1-2015 (5 year term)
− GDP growth of 4.2% in 2010; 5.2% in 2011; 0.2% in 2012 (impacted by slowdown in global economy and steel production)
− Member of WTO
− Strong desire by citizens and business for European integration (and further separation from Russia) but government has delayed signing “Trade Agreement” over concerns of increased cost for Russian gas and trade restrictions
• Joining the “Trade Agreement” with Europe would benefit Black Iron due to lower construction costs via reduced duties. However not joining is neutral for Black Iron, as the Bankable Feasibility Study was completed without those cost savings assumptions
• Economy dominated by agriculture & commodities
― Steel production is Ukraine’s largest industry
― 60% of Ukraine’s total exports are commodity-related (the majority of which is steel)
• Large, highly skilled labour force (pop. 45.4 million)
− GDP per capita only $7600/yr
− Literacy rate >99%
• Mining friendly jurisdiction with strong local and national support
― ArcelorMittal and Ferrexpo plc have operated in-country for over 7 years
• Low corporate tax rate of 16% reduced from 21% in 2012
• Favourable mining royalties of $0.09 per tonne of ore mined (<1%) payable to the Government
$5Bn Investment in Integrated Iron Mine/Steel Mill
$3.2Bn Market Cap Iron Ore and Steel Production
in Ukraine
$1.8Bn Investment in Shale Gas Development
$10Bn Investment in Shale Gas Development
$10Bn Investment in Shale Gas Development
Major Foreign Corporate Investors
TSX: BKI
18
Source: Based on know production and reserves as listed in the USGS 2012 Iron Ore report
Globally Significant Iron Ore District 4th largest iron ore producer & 2nd largest reserve base
Global Distribution of Fe Reserves & Fe Production
• Black Iron’s projects are located in the heart of
Ukraine’s iron ore belt
– 35km from city of 750,000 people
• Iron ore district trends 300 km with sedimentary rock
hosted banded iron formations (Dnenpovskog complex)
• Historically well explored resource base but
substantially under-exploited due to historic Soviet
policy
• 15 iron ore mines in Ukraine produced 88 million
tonnes in 2012
Kiev
Yeristovskoye
Poltavsky GOK
Tsentralny Kryviy Rih Iron Ore Complex
Ingulestky GOK
Yuzhny GOK Kryviv Rih Ordzhonikize Gok
Shymanivske
Zelenivske
C Gok YuGok
0%
10%
20%
30%
40%
50%
60%
Asi
a
Aust
ralia
S.
Am
eri
ca
FSU
N.
Am
eri
ca
Oth
er
Afr
ica
% o
f W
orl
d P
roducti
on a
nd R
ese
rves
Production Reserves
Production Reserves
7%
21%
TSX: BKI
19
Permit Process for Shymanivske Deposit Black Iron Remains on Track
Exploration
Permit
Extraction
Permit
Land
Allotment
Construction
Approval
Operations
Approval
Deem deposit economical
• Complete Ukraine version of scoping study including evaluation of various mining methods & high level environmental impact
Pit shell reserves & environmental
impact Gov approval
• Complete field
environmental (OVOS) & archeological studies for Gov approval
• Submit pit shell design & mapped ground surface project for Gov. approval
Obtain surface rights for mine,
refinery & tailings
• Land use analysis
based on plot plan showing major buildings & agreed connections to utilities, rail and roads (Proekt)
• Approval of the project location
• Approval from all land owners & finalize lease
Start mine overburden
removal & plant construction
• Detailed design approved (Expertisa)
• Obtaining the construction permit
• Commissioning of the facility
• Registration of the ownership to the facility
Explore resource potential
• Conduct geophysical program
• Drill ore body
• State approval of explored deposit
Operate mine & refinery
• Ensure compliance with Ukraine Safety, Environment, Health and Employment laws as check by regular Gov inspections
• Finalize environmental permits
Mining
Allotment
Completed
TSX: BKI
BFS 2012 BFS 2014
Annual Production: 9.2 Mt 9.9 Mt
Iron Content: 68.0% 68.0%
Estimated Capital Investment:
(capital intensity)
US$1,094 million
US$119/t
US$1,097 million
US$111/t
Estimated Operating Expenses:
(average FOB)
(average at Mine Gate)
US$43.97/t
US$29.67/t
US$44.54/t
US$29.64/t
Long-Term CFR Benchmark Price(62%): US$95/t US$95/t
Net Present Value (8%): (pre-tax)
(after-tax)
US$3.5 billion
est. US$2.9 billion
US$3.3 billion
US$2.6 billion
Internal Rate of Return: (pre-tax)
(after-tax)
46%
est. 40%
48%
39%
Annual Average Cash Flow: (pre-tax)
(after-tax)
US$593 million
not reported
US$630 million
US$536 million
Projected Payback (8%): (pre-tax)
(after-tax)
2.2 years
not reported
2.0 years
2.5 years
Estimated Mine Life: modelled reserve
total defined resource
16 years
~21 years
14 years
~19 years
Projected Plant Start-Up Q4 2015 Q4 2016
Projected Revenue Commencement Q1 2016 Q1 2017
BFS Highlights – High Grade Concentrate High Value, Low Net Cost Iron Ore Development Project
20 ** See Disclaimer on page 2 ** * Bankable Feasibility Study completed by Lycopodium
TSX: BKI
Black Iron’s Operating Cost Competitiveness Shymanivske: First Quartile to Local Markets; Second Quartile to China
21 ** See Disclaimer on page 2 **
Source: Company data; Wood Mackenzie; BMO Capital Markets * Adjusted for iron content and shipping distance
2013E Iron Ore Cost Curve
BKI delivered to
Europe/Middle East
Markets
BKI delivered
to China
World Cumulative Production (%)
Spot: $124/t
Tota
l Cash
Cost
(U
S$/t
CFR)
TSX: BKI
** See Disclaimer on page 2 **
Black Iron’s Capital Cost Advantage Shymanivske Relative to Other Iron Ore Projects
22
Vale
(Shim
andou 1
)
Afr
ican M
inera
ls (
phase
2)
Xst
rata
(Ask
af)
Afr
ican M
inera
ls (
DSO
)
Arc
elo
rMit
tal (W
est
ern
…
Fort
esc
ue (
Expansi
on)
Bla
ck Iro
n
Rio
Tin
to (
IOC)
Sundance
Kum
ba
Ferr
expo (
Yeri
stovo)
IRC (
Kura
nakh)
London M
inin
g
IRC (
K&
S)
Ald
ero
n
Auila (
Hard
ey)
Xst
rata
(Zanaga)
Atl
as
Iron (
Rid
ley)
Rio
Tin
to (
Pilbara
)
Gin
dalb
ie (
Kara
ra)
Anglo
Am
eri
can (
Min
as
Rio
)
BH
P (
RG
P5&
6)
Aquila (
West
Pilbara
)
Arc
elo
rMit
tal (W
est
ern
…
BH
P (
Sam
arc
o)
Atl
as
Iron (
Balla B
alla)
CIT
IC P
acif
ic (
Sin
o)
Baff
inla
nd
Xst
rata
(G
eulb
el Aouj)
Gra
nge R
eso
urc
es …
84 87 90 92 109 109 111 122
134 135 141 142 157 159 159 160 167
180 186 188 189 190 192 200 211 217 221 222 236
258
CAPEX Forecast (US$/t of capacity)
Source: Company data; Renaissance Capital estimates
Average = 162
0%
25%
50%
75%
100%
TSX: BKI
Disclaimer: Post-tax and royalty graphs are for illustrative purposes only using simple math. These numbers have not been reported, nor are they substantiated by a financial model. 1
Super-Profits tax >A$75 million profit. 2 Includes Brazil mining tax of $4 / tonne of iron ore. 3 Royalties of $0.09 per tonne of ore mined.
Maca
rthur
Centa
uru
s
Iron R
oad
Nort
hla
nd
Bro
ckm
an
Gin
dalb
ie
Ald
ero
n
Bla
ck I
ron
0.1 0.3 0.6 1.0 1.8 1.8 1.9
2.6
4.9
Post-Tax & Royalty NPV8
(US$ billions)
Source: Company data; Press Release; Research Estimates
New
M
illeniu
m
Ald
ero
n
Nort
hla
nd
Gin
dalb
ie
Bro
ckm
an
Bla
ck I
ron
25.0 29.3 32.0 35.0 38.0 48.0
Pre-Tax & Royalty IRR
(%)
New
M
illeniu
m
Gin
dalb
ie
Bro
ckm
an
Nort
hla
nd
Ald
ero
n
Bla
ck I
ron
16.9 18.9 20.5 22.7 23.1
39.1
Post-Tax & Royalty IRR
(%)
Tax Regime
Royalties
30% +30%1
39%2
29%
16%
5%
2%
5-8%
<0.1%3
New
M
illeniu
m
New
M
illeniu
m
Maca
rthur
Centa
uru
s
Iron R
oad
Nort
hla
nd
Ald
ero
n
Bro
ckm
an
Bla
ck I
ron
Gin
dalb
ie
0.3 0.5 1.1 1.5 3.2 3.3 3.3 3.4
7.3
Pre-Tax & Royalty NPV8
(US$ billions)
Black Iron Stacks Up Relative to Competition Strong Economics Reinforced by Favourable Tax and Royalties
23
TSX: BKI
Black Iron’s Target Capital Funding Strategy 49% of Equity Capital Solidified with Metinvest Transaction;
100% of Off-Take Still Available
** See Disclaimer on page 2 **
Estimated Capital Investment US$1.1 billion
Equity Investment Debt Investment
Black Iron Inc. (TSX: BKI)
Metinvest
9.9Mtpa Off-take
Export Credit Agencies
Bank Debt / High-Yield Bonds
Capital Markets
60% 40%
49% 51%
(US$250-300 million)
(US$0-50 million)
(US$300-400 million)
(US$250-350 million)
Significant Off-take Opportunity with Equity Funding Support from Metinvest ** % and $ amounts are indicative only and subject to negotiation **
(US$250-300 million)
24
TSX: BKI
Black Iron Continues to Deliver Shymanivske Project Development Timeline
2011-2012 2013
Scoping Study/PEA
Bankable Feasibility Study
Off-take
Construction
Drill metallurgical holes
Definition Drilling
Land Acquisition
Detailed Engineering
Production
Future
** See Disclaimer on page 2 **
Pilot Plant Test Work
2014
Permitting
Milestone Achieved 2014 Milestone
25
TSX: BKI
26
Black Iron Value Proposition
Close to Steel Mills in: W.Europe, Turkey, Russia, Asia and Middle East Close to
Target Markets
Large iron ore deposit with NI 43-101 compliant resource*
• 646 Mt Measured & Indicated resource @ 31.6% iron; additional 188 Mt of Inferred resource @ 30.1% iron, which will be concentrated to ~68% iron
• Potential for resource expansion to 1.1-1.8 Bt
Sizable Resource
Excellent access to skilled labour, power, rail & ports Exceptional
Infrastructure
Experienced management team and Board with history of creating value for shareholders of Consolidated Thompson, RioTinto and Ferrexpo
Skilled Leadership
High margins due to close proximity to multiple steel mills, skilled labour cost advantage and favourable corporate tax rate of 16% • Bankable Feasibility Study for 9.9Mt of high-grade 68% iron ore concentrate
– NPV of US$3.3 billion and 48% IRR (US$2.6 billion and 39% after-tax)
Compelling Economics
* Please see note on Page 2 26
Strategic Partners
Metinvest: Largest company in Ukraine; committed to half of project financing
CONTACT INFORMATION
65 Queen Street West
Suite 805, P.O. Box 71
Toronto, Ontario, Canada
M5H 2M5
www.blackiron.com
TSX: BKI
Investor Relations
Toronto: +1 (416) 309-2950 - Michael McAllister, IR Manager
London: +44 (0) 207 466 5000
Ukraine: +380 (56) 409-2536
[email protected] Follow us: