ECONOMICS

(TSX.V: BKI)

ECONOMICS

Updated Economic Study Highlights*

Annual Production Phase 1 4Mt
Phase 2 8Mt
Iron Content 68.00%
Estimated Capital Investment: (capital intensity, includes 17% contingency) Phase 1: US$452 million Phase 2: US$364 million
Estimated Operating Expenses (average FOB) US$33/t
Long-Term CFR China Benchmark Price (62% iron) US$62/t
Estimated Realized Selling Price (68% iron FOB port Yuzhny) US$97/t
Net Present Value (10% discount rate unlevered) (pre-tax) US$1.9 billion
(after-tax) US$1.4 billion
Internal Rate of Return (unlevered) (pre-tax) 41%
(after-tax) 34%
Annual Average Free Cash Flow (pre-tax) US$360 million
(after-tax) US$301 million
Estimated Mine Life 17 years
*Preliminary Economic Assessment completed by BBA in November 2017 with amendment in February 2020.
ECONOMICS

Favourable macro developments have pushed iron ore prices to record highs, and the trend is expected to continue.