Black Rock Mining Company Profile

BLACK ROCK MINING

Mahenge Graphite Project, Best of Class Graphite Project
Company Exposure

Graphite

Company Listing

Black Rock Mining

Stock Code

ASX:BKT

Contact Details

W: www.blackrockmining.com.au

E: info@blackrockmining.com.au

T +61 8-9320-7550

Company Overview



Black Rock Mining Limited (ASX:BKT) is an Australian-based company listed on the Australian Securities Exchange. The Company owns graphite tenure in the Mahenge region of Tanzania.

The Company’s 100%-owned Mahenge Graphite Project is one of the largest JORC-compliant flake graphite Mineral Resource Estimates globally, with a Mineral Resource Estimate of 211.9m tonnes at 7.8% TGC for 16.6m tonnes of contained graphite. Importantly, more than 50% of the Mineral Resource is in the Measured and Indicated categories.

Black Rock released an exceptional optimised Preliminary Feasibility Study (PFS) for the Mahenge Graphite Project, which considered a three-stage construction to deliver up to 250,000 tonnes per annum of 98.5% graphite concentrate for 31 years. The Company plans to fund stages two and three from free cash flow. The pre-production capex is US$90.1m to deliver a post-tax unlevered project NPV10 of US$905m incorporating the proposed 16% government free carry and increased royalty rate.

The optimised PFS confirmed Black Rock has the potential for a long-life, low capex, high margin operation. Black Rock is moving towards commencing a Definitive Feasibility Study (DFS). Following the successful completion of the DFS and the associated financing, construction is expected to commence late-2018 with first production in 2019.

INVESTMENT HIGHLIGHTS

  • 100% Project Ownership – Black Rock Mining has a 100% interest in the Mahenge Graphite Project located in Tanzania
  • Exceptional PFS – Optimised PFS completed in Aug 2017 with the following key metrics
    • Long life and meaningful scale – Three stage construction to deliver 250k tonnes per annum for 31 years
    • Low capex – Pre-production capex only US$90m for 83k tonnes per annum
    • Cash flow funding – Stages two and three funded from cash flow
    • Low opex – Steady state opex of US$378 per tonne (likely to be lower with train)
    • Brilliant financial metrics – Post tax unlevered NPV10 of US$905m with IRR of 45.1% inclusive of 16% Government free carry
  • Industry leading graphite – Industry leading product attributes (concentrate grade and flake size distribution) confirmed in first pilot plant test
  • Simple processing – Arguably the most simple process flow sheet in the industry
  • Strong management capability – Proven management team focused on project execution
  • Path to market established – Real partners in place
  • Graphite market improving – Graphite market dynamics becoming increasingly positive
Live Financials

Latest Announcements

Share Price Performance

DIRECTORS & MANAGEMENT

John de Vries – CEO, Managing Director
Richard Crookes – Non-Exective Chairman
Gabriel Chiappini – Non-Executive Director & Company Secretary
Stephen Copulos – Non-Executive Director

MAJOR SHAREHOLDERS

Copulos Group – 24.63%
Top 20 Shareholders – ~50%

VIDEOS

PROJECTS


Mahenge – Graphite Project

3 graphite mineralised structures located within Exploration permit PL7802/2012:

  • Epanko North
  • Ulanzi
  • Cascades
STRATEGY – Black Rock’s Company Strategy is to deliver shareholder wealth in FY18 by having a clear focus.

MAHENGE GRAPHITE PROJECT

  • Three stage construction to deliver a maximum of 250k tonnes per annum of 98.5% graphite concentrate for 31 years. Stages two and three to be funded from free cash flow
  • Pre-production capex of US$90.1m
  • Steady state opex of US$378 per tonne
  • Realistic basket price assumption of US$1,241 per tonne delivering an operating margin of US$863 per tonne
  • Assumed feed grade of 8.5% TGC
  • Life of mine strip ratio of 0.8:1 (early years are 0.5:1)
  • Post-tax unlevered project NPV10 of US$905m
  • Post-tax, unlevered IRR of 45.1%
  • EBITDA in first full year of production US$220 million (EBITDA margin of 66%)

EXECUTION TIMELINE

MEIWA

  • Part of Mitsubishi group of companies
  • Existing major player in battery space

BOTIAN

  • Existing spherioniser in Chinese market
  • Creates capacity to deliver final product without investing capital, organisational development and management bandwidth

BATTERY TESTING

  • Long cycle data available to customers to facilitate acceptance testing
  • Concentrate from pilot plant testworks in hands of potential customers and partners

Contact Details

WEBSITE: www.blackrockmining.com.au

EMAIL: info@blackrockmining.com.au

PHONE: +61 8-9320-7550

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