Black Rock Mining

Primary ticker: ASX:BKT
Stage of development: Production, Development
Primary minerals: Graphite
Project to promote: Mahenge Graphite Project

Live financials

Black Rock Mining is Australian based graphite developer. Black Rock’s Mahenge project has completed a Pre-Feasibility study in August 2017 and is planning to complete a Definitive Feasibility study in the H2 2018.

Pre-Feasibility outcomes indicate an exceptional quality project with a reserve ranked second behind Syrah. Project development is via a three stage self funded “bootstrap” model, delivering an after tax NPV10 of US$ 905m, with an IRR of 45.1%.

With pre-production capex of only US$ 90.1m, and an operating cost of only US$ 378 per tonne FOB, the Mahenge project is a unique high quality exposure to the emerging new energy and fire proof insulation thematics.

Management Profile

John de Vries – CEO and Managing Director

Mining Engineer with over 35 years-experience in mine development and operations. Previously, General Manager Technical Services with St Barbara and integral in the 2014 turnaround. John has held positions at BHP Ni West, and was Global Business Manager, Advanced Mining Solutions with Orica Mining Services. John’s geographic experience includes Africa, the Pacific, the FSU, North America and South America.

What is your rationale for attending 121 Mining Investment?

In October 2018, Black Rock Mining delivered the best in class Definitive Feasibility Study for the Mahenge Graphite Project. Black Rock is now actively funding the project with a view to commencing construction in mid 2019 with first production in late 2020. Exceptional operating costs are supported by our integrated logistics chain of Tazara and the Port of Dar es Salaam and access to grid power through Tanesco.

What recent news would you like to highlight to investors attending?

Black Rock Mining’s October 2018 Definitive Feasibility Study successfully leveraged the Mahenge Graphite Project’s unique geological and geographical advantages. The DFS is based on a 90 tonne pilot plant, a plant ten times larger than any other in the sector, and at 99.3% produced the highest grade concentrate ever achieved in a pilot plant. The study delivers exceptional economics, and de-risks the best in class Mahenge Graphite Project. Access to rail and grid power lowers operating costs to $400 a tonne FOB Dar es Salaam.
With an NPV10 of USD $895m and an IRR 42.8%, after tax, and after free carried interest, with a capital cost $USD 115m, Mahenge delivers a very efficient return for investors.

What are your key goals for the next 3, 6 and 12 months?

3 Months:

Secured pathway to financing project development

6 Months:

Commenced physical on ground activities

12 Months:

Construction well advanced and project deliver being delivered in a safe and environmentally responsible manner

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Black Rock has de-risked the market development by developing multiple distribution channels supported by market segmentation to deliver offtake in both expanded and the battery sectors. Segmenting the market and focusing on distribution channels highlighted gaps in the market for large high quality flake for the expanded graphite market, and demand for our high grade flake in the battery precursor market.

The demand profile is ideally suited to Mahenge’s product and it’s unique concentrate, and opens up some of the higher performance expanded materials segments. Importantly product performance can be demonstrated off large sized samples from the largest pilot plant in the sector.

In a sentence, what do you think makes your company such a compelling investment?

Mahenge, is unique combination of a long life, high quality resource in a project area with access to grid power, rail transport and the largest deep water port in the region, being executed by an experienced management team.