Black Rock Mining (BKT) Noosa Mining Investor Conference summary

Market Context and Strategic Positioning

• Graphite is essential for anode production, with China controlling over 95% of the market, creating supply chain risks and opportunities for alternative sources.

• Mahenge is the world's second largest graphite ore reserve, offering a scalable solution with a high proportion of large flake graphite and up to 99% concentrate purity.

• Only two major graphite suppliers remain, positioning Mahenge to meet growing EV and industrial demand, with battery demand growing at over 30% annually.

• Large flake graphite supports both industrial and next-gen tech applications, with Mahenge's 70% large flake output supporting higher average prices despite depressed fines pricing from China.

• Tanzania's stable economic environment and infrastructure investments support project development, aligning with Vision 2050.

Project Economics and Operational Advantages

• Project NPV is US $1.4bn post-tax, with a 36% post-tax IRR and initial capex of US $231m for Module 1.

• Weighted average price at the bottom of the cycle is twice the cost of production, ensuring strong margins, with all-in sustaining cost forecast at US $518/t.

• Access to low-cost grid hydro power (AUD 0.08/unit), first quartile cost position, and proximity to East Africa's largest port reduce operational costs.

• Initial operating life of 26 years with a steady production plan across four modules, using only a third of the resource.

• Modular development approach allows for phased expansion, risk management, and supports offtake and funding for future modules.

Partnerships, Funding, and Offtake

• POSCO is a cornerstone partner, providing up to US $50m in development finance, holding a board seat, and securing downstream expertise and offtake.

• Debt facility of US $204m secured from local African banks, with additional equity support from POSCO and local financiers including DBSA, IDC, and CRDB.

• Over 95% of Module 1 production is secured under binding offtake, option, or MOU agreements, including a 12-year contract with POSCO and additional contracts with Chinese buyers.

• Local Tanzanian contractor engaged for US $40m in mining services, supporting community development and project stability.

• POSCO to build a new spherical graphite plant in Korea, supporting downstream integration.