Black Iron Inc. · TSX:BKI
Black Iron — Investor Presentation (April 2011)
20 slides from Black Iron's investor presentation, April 2011
Slide 1: An Emerging Iron Ore Company - Corporate Presentation
An Emerging Iron Ore Company Corporate Presentation April 2011 TSX: BKI
Slide 2: Disclaimer: Forward Looking Statement
Disclaimer Forward Looking Statement TSX: BKI This Presentation contains ‘‘forward-looking information’’ which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its subsidiaries (collectively, the ‘‘Company’’) and its mine
Slide 3: Solid Fundamentals for Success
Solid Fundamentals for Success Shymanivske Project: A High-Quality Development Opportunity TSX: BKI Shymanivske is an attractive iron ore project located in one of the Location Krivoy Rog, Ukraine world’s major iron ore districts • Close to target markets: W.Europe, Turkey, Russia, Asia and Middle E
Slide 4: Black Iron at a Glance
Black Iron at a Glance An Emerging Iron Ore Company TSX: BKI • Company formed to acquire property in one of world’s major iron ore districts − Acquired 100% interest in the Shymanivske and Zelenivske projects located in the Krivoy Rog Iron Basin located in central Ukraine • Extensive past exploratio
Slide 5: Key Management and Board of Directors
Key Management and Board of Directors Strong Industry and Relevant Experience TSX: BKI Matt Simpson Recently left Rio Tinto where served as General Manager, Mining for the Iron Ore Company of Canada President, CEO and Director Previously worked for Hatch developing metallurgical refineries Paul
Slide 6: Capital Structure
Capital Structure Attractive Valuation TSX: BKI Prior & Current Financing Details Capital Structure • Company has recently filed a final Shares Outstanding prospectus in all provinces of Canada, 134.8 million (Basic) excluding Quebec, in connection with an Initial Public Offering (IPO) Warrants Outs
Slide 7: Forbes & Manhattan Involvement
Proven Track Record Consolidated Thompson’s Bloom Lake Iron Mine TSX: BKI • Emerging world class iron ore project Forbes & Manhattan Involvement in Quebec • Advanced from exploration stage through development to construction To be acquired − 8 mtpa capacity (66% Fe concentrate) for $4.9 expanding to
Slide 8: Iron Ore Market: Strong Global Demand Growth
Iron Ore Market Strong Global Demand Growth for Iron Ore TSX: BKI • China has limited domestic supply − Chinese firms have invested ~US$12bn into projects and signed ~US$82bn worth of offtake agreements since 2001 Seaborne Iron Ore Demand Growth Iron Ore Prices 1600 2009-2013E CAGR 250 Pellet feed 2
Slide 9: Ukraine: A Mining Friendly Country
Ukraine: A Mining Friendly Country Strong Local and National Support TSX: BKI • Socially stable democratic republic • Strong economic growth − Expected 3.3% GDP growth in 2010 and expected to increase to 4.5% in 2011 • Steel production is Ukraine’s largest industry • Large, highly skilled labour for
Slide 10: Globally Significant Iron Ore District
Globally Significant Iron Ore District Ukraine: 6th largest iron ore producer & 4th largest reserve base TSX: BKI • Black Iron’s projects are located in the heart of 2010E Iron Ore Production Ukraine’s iron ore belt 1000 900 • Iron ore district trends 300 km with sedimentary rock 800 hosted banded i
Slide 11: In a Good Neighbourhood
In a Good Neighbourhood Well Developed Iron Ore Belt TSX: BKI • Seven operating mines in the Krivoy Rog area • 35 km from Krivoy Rog, Ukraine’s 8th largest city with population of 750,000 − Well trained labour available Project Location locally with a long tradition Krivoy Rog of iron ore mining 11
Slide 12: World Class Neighbours
World Class Neighbours Adjacent to Large ArcelorMittal Operation TSX: BKI • ArcelorMittal purchased Kryviy Rih integrated steelmaking complex in 2005 for US$4.8 billion • Located adjacent to Black Iron’s projects • 2009 production of 7.07 million tonnes iron ore concentrate • Iron ore resource of 1.
Slide 13: Prospective Iron Ore Deposit
Prospective Iron Ore Deposit Significant Regional Iron Ore Production TSX: BKI ArcelorMittal’s • Primarily magnetite with some Kryviy Rih Iron Ore Complex hematite Black Iron’s Resource: 1.8 bt Shymanivske Project • Two mining and exploration permits M&I: 345mt @31.83% Inferred: 469mt @31.05% coveri
Slide 14: Shymanivske Has A Large Resource Base
Shymanivske Has A Large Resource Base Major Iron Deposit with Potential to Grow TSX: BKI • Banded iron formation consisting of 4 iron-rich layers, with the resource comprising 3 of these layers − Noteworthy layer thicknesses ranging from 40-80 m thick • NI 43-101 compliant resource estimate* • The r
Slide 15: Excellent Infrastructure
Excellent Infrastructure Key to a Successful Iron Ore Project TSX: BKI • Paved roads to site, located 35km away from the major city of Krivoy Rog which has a skilled work force • Surplus of low-cost electricity readily accessible from high voltage power lines that run beside property • 2 km from mai
Slide 16: Strategic Global Location
Strategic Global Location Close Proximity to Target Markets with Abundant Port and Rail Access TSX: BKI • Rail access to Western Europe and port access via Black Sea to global seaborne iron ore markets − Target markets include Asia, Western Europe, Turkey, Middle East and Russia • Several dry bulk t
Slide 17: Key Milestones for Value Creation
Key Milestones for Value Creation Project Development Timeline TSX: BKI 2011 2012 Future H1 H2 H1 H2 Drill metallurgical holes Scoping Study/PEA Definition Drilling Feasibility Study Environmental Studies Permitting Detailed Engineering Construction Production 17
Slide 18: Public Comparable Companies
Public Comparable Companies Iron Ore Exploration/Development TSX: BKI Market Data as at 17-Mar-11 Fe Contained Resource & Reserve (mm t) EV / Fe R&R (US$/t) EV / Capacity FDITM M.Cap Enterprise Value Funding &(1) Company Primary Asset Location Price (C$) P&P+M&I Inf. Ttl. R&R Ttl. Grade P&P+M&I Ttl.
Slide 19: Solid Fundamentals for Success
Solid Fundamentals for Success Shymanivske Project: High-Quality Development Opportunity TSX: BKI Shymanivske is an attractive iron ore project located in one of the Location Krivoy Rog, Ukraine world’s major iron ore districts • Close to target markets: W.Europe, Turkey, Russia, Asia and Middle Eas
Slide 20: Contact Information
CONTACT INFORMATION 65 Queen Street West Suite 805, P.O. Box 71 Toronto, Ontario, Canada M5H 2M5 416-309-2950 www.blackiron.com Investor Relations: [email protected] TSX: BKI 20