INFORMATION
Black Iron 2023 AGM
ECONOMICS
(TSX.V: BKI)
OVERVIEW
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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.
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