Black Iron Inc. · TSX:BKI
Black Iron — Investor Presentation (June 2021)
17 slides from Black Iron's investor presentation, June 2021
Slide 1: A Compelling Investment Opportunity - Corporate Presentation 2021
TSX: BKI; OTC: BKIRF; FWB: BIN A COMPELLING INVESTMENT OPPORTUNITY Corporate Presentation 2021
Slide 2: Disclaimer - Forward Looking Statement
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
BLACK IRON HAS ALL THE KEY FUNDAMENTALS FOR A HIGHLY PROFITABLE COMPANY IN PLACE Globally Top Ranked Project Lower Environmental Impact • Ranked as lowest cost undeveloped Product in Supply Deficit 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 ~$18-54/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 Over Next Year
SEVERAL MAJOR MILESTONES BEING DELIVERED OVER NEXT YEAR 2021 2022-2023 Q1 Q2 Q3 Q4 Off-take Update feasibility study Enviro. Impact Assessment Ukraine Gov land transfer agreements All permits for construction Senior Debt Royalty Construction Production • Assumes no delays from COVID19 & expedient Uk
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) Black Iron’s $8.80 Shares Outstanding 273 million Potential Stock Options 15 million DSU 9 million $5.44 Warrants 46 Million
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 Five Existing Iron Ore Producers, 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 S
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: 805-65 Queen Street West www.blackiron.com Toronto, ON, Canada, M5H 2M5 Toronto: +1(416) 309 2138 Ukraine: +380 (56) 409 2536 [email protected]