Black Rock Mining (BKT) investor relations material

Project overview and strategy

• Mahenge is one of the world's largest graphite resources, with the second largest JORC-compliant ore reserve and high purity, large flake graphite production capability.

• The project uses a modular, self-funding scale-up strategy to minimize upfront capital risk and align with market demand.

• Upstream-focused business model prioritizes low risk, low capex, and healthy margins, with downstream expansion supported by strategic partners.

• 95% of Module 1 production is secured under binding offtake, option, or MOU agreements, ensuring strong revenue visibility.

• POSCO is a cornerstone partner, providing equity, offtake, and board representation.

Financials and economics

• Project NPV (8% real, post-tax) is US$730m, with a post-tax ungeared IRR of 23% and initial capex of US$231m for Module 1.

• Debt support includes a US$204m facility from African banks, with additional equity from POSCO and a US$10m prepayment facility.

• Forecast all-in sustaining cost (AISC) is US$575/t, with a basket graphite price of US$1,495/t and a 27-year initial operating life.

• First quartile cost position is driven by access to hydro power, deepwater ports, and high-grade geology.

Market positioning and product differentiation

• Large flake graphite (68% of output) targets higher value, less contested markets, with pricing premiums for purity and flake size.

• Mahenge's diversified product mix and high purity support margin resilience, with a 10% basket price increase yielding a 20% NPV uplift.

• New pricing protocols reflect higher grades and larger flake premiums, with 2026 protocols projecting robust demand and pricing.