Black Rock Mining

Website: www.blackrockmining.com.au
Primary ticker: ASX:BKT
Stage of development: Development
Primary minerals: Graphite
Project to promote: Mahenge

Live financials

Black Rock Mining is an ASX (BKT) listed developer and 100% owner of the globally significant Mahenge Graphite Project. An Enhanced Definitive Feasibility Study completed in 2019 delivered exceptional investment metrics of NPV10 of $US 1.16B and an IRR 44.8%, after tax, and after FCI. An initial capital cost of $USD 116m, cash flow funds a further three stages of development. A JORC Mineral Reserve globally of 69.6 Mt at 8.5% TGC, supports a 32 year mine life delivering over 6 million of concentrate with a steady state EBITDA of over $USD 306m.

View Research Report by Patersons on 7 May 2019 View Research Report by Patersons on 21 June 2019

Management Profile

John de Vries – 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?

Black Rock’s Mahenge project has been advanced in a through and diligent manner to its current status of having completed a Definitive Feasibility Study. The project is well regarded and is recognised by Mining Journal as being one of the top 5 Development Stage Projects globally.

Black Rock is seeking to introduce debt and equity investors to the project as part of the development process.


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

Over the last six months Black has made significant progress in delivering the Mahenge Graphite Project:
o Delivery of transparent pricing and volume framework achieved with foundation offtakers
o Successful completion of second pilot plant, located in China demonstrating repeatability of optimised design delivering industry leading concentrate grades and flake size
o Increase NPV to US $1.16 bn after tax and after government participation through delivery of enhanced Definitive Feasibility Study (eDFS) including addition of a fourth module and compressed development timeline
o Delivery of bulk spheronisation trials demonstrating industry leading yields to battery pre-cursor material at scale, and in conventional processing plants


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

3 Months:

Secure shareholders agreement, and advance project finance term sheets to a Conditions Precedent stage

6 Months:

Complete all major contracts and final design. Have commenced construction under a Gross Maximum Price arrangement.

12 Months:

Construction is well advanced and remains on time and within budget with industry leading safety and environmental performance.


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

With demonstrated demand and established pricing framework agreements in place, Black Rock is well positioned to articulate of the unique value proposition of Mahenge.

Financing is being approached as a blend of offtake finance, vendor finance and conventional debt finance. The integrated approach to finance allows a “best of bred” approach to managing investment risk and increasing investment attractiveness.


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

Black Rock is currently trading at around 4% of NPV10. With over over 60% of its product in the premium and large flake category, a segment where demand exceeds available supply, Mahenge is strongly differentiated from its peers as a premium supplier in an uncontested market space.

Black Rock’s Mahenge project has been advanced in a through and diligent manner to its current status of having completed a Definitive Feasibility Study. The project is well regarded and is recognised by Mining Journal as being one of the top 5 Development Stage Projects globally.

Black Rock is seeking to introduce debt and equity investors to the project as part of the development process.