Agrimin Limited · ASX:AMN
Agrimin — Investor Presentation (August 2014)
23 slides from Agrimin's investor presentation, August 2014
Slide 1: Investor presentation – August 2014
Investor presentation – August 2014 “As iron ore was the boom commodity over the past 10 years, we highlight potash as the commodity for the next decade.” – Goldman Sachs
Slide 2: Disclaimer
Global Resources Corporation Disclaimer This presentation has been prepared as a summary only, and does not contain all information about Global Resources Corporation Limited’s (“Global”) assets and liabilities, financial position and performance, profits and losses, prospects, and the rights and li
Slide 3: Corporate snapshot
Global Resources Corporation Corporate snapshot Share capital Directors and management Share price $0.17/share Stephen Everett, Non-Executive Chairman Ordinary shares 81.1m Chemical engineer with more than 35 years of management and board experience in the international resources industry. Has held
Slide 4: Potash Industry
Potash Industry 4
Slide 5: The food security story
The food security story Rising food consumption is a long term trend United Nations forecasts approximately 71 million new mouths to feed each year While at the same time arable land is shrinking around the world Emerging markets will need to improve agricultural yields through the use of fert
Slide 6: What is SOP
What is SOP Demand is driven by high value crops SOP (K2SO4) is 17.5% sulphur and contains no chloride, compared to MOP (KCl) which contains 46% chloride A premium form of potash that is used on high value crops such as vegetables, fruit and tree nuts Essential for chloride-sensitive crops and
Slide 7: Potash market: SOP is a highly strategic commodity
Potash market SOP is a highly strategic commodity Global potash production is 64Mt per annum, including 55Mt of muriate of potash (MOP) and 6Mt of sulphate of potash (SOP) The SOP market is worth circa US$3.5 billion per annum SOP is far more strategic and geologically scarce than MOP More t
Slide 8: Potash market: a highly concentrated supply side
Potash market A highly concentrated supply side Potash supply is highly concentrated, both geographically and at a corporate level The major deposits being mined – in Russia, Belarus and Canada – all produce MOP For the past decade, circa 65% of the world’s potash production has been marketed
Slide 9: SOP market: brine producers at bottom of cost curve
SOP market Brine producers sit at the bottom of the cost curve There are only three primary producers of SOP – SDIC in China, Compass Minerals in the USA and SQM in Chile All three producers are exploiting brine deposits via low cost pumping and solar evaporation techniques More than 50% of gl
Slide 10: SOP market: new sources of SOP are extremely scarce
SOP market New sources of SOP are extremely scarce More than 4Mt per annum of high cost secondary production to be displaced Most new projects are extremely capital Potential SOP production (million tonnes per annum) intensive, i.e. both IC Potash and Potash Ridge have a CAPEX requirement of ove
Slide 11: SOP market: prices remain strong post-BPC break up
SOP market Prices remain strong post-BPC break up In July 2013 Uralkali withdrew from BPC and caused a price shock in MOP Uralkali is the world’s lowest cost producer with the most unused capacity and publicly stated that in future it would prioritise volume over price SOP prices have remained
Slide 12: Mackay Project
Mackay Project 12
Slide 13: Mackay Project Overview
Mackay Project Overview Project background: Applicant to five Exploration Licences covering 2,276km2 in Western Australia Situated on Lake Mackay, the largest salt lake in Western Australia Arid environment is well suited to low cost solar evaporation A program of 24 shallow holes were drill
Slide 14: Mackay Project: 2009 drilling program
Mackay Project 2009 drilling program A program of 24 shallow drill holes was completed in September 2009 Drilling was completed using a helicopter supported and purpose built Vibrocore rig The holes were drilled on wide spaced grid of 10km by 10km Drilling was completed to a maximum depth of
Slide 15: Mackay Project: current activities
Mackay Project Current activities Recent site visit confirmed favourable logistical conditions from Alice Springs Work program: All technical and commercial data acquired from Reward Minerals is being thoroughly reviewed Previous drilling data is being verified and used in calculating a Mine
Slide 16: Mackay Project: conceptual development plan
Mackay Project Conceptual development plan The Lake Mackay region benefits from a very hot, windy and dry environment with excellent evaporation conditions Low cost solar evaporation techniques could result in very competitive capital intensity and operating costs There are five solar evaporat
Slide 17: Great Sandy Desert Project
Great Sandy Desert Project 17
Slide 18: Great Sandy Desert Project Overview
Great Sandy Desert Project Overview Project background: Extensive land position covering 2,570km2 in the East Pilbara Situated in a new globally significant SOP province Arid environment is well suited to low cost solar evaporation Heritage Agreement has been executed Desktop Study is bein
Slide 19: Great Sandy Desert: geological model
Great Sandy Desert Project Geological model Tenements cover approximately half of the Waukarlycarly Embayment, a major depositional sink for inflowing brines Permian sediments of the Poole Sandstone and Paterson Formation represent the targeted geological horizon The underlying Grant Group is
Slide 20: Great Sandy Desert: regional brine flows
Great Sandy Desert Project Regional brine flows Very hot and arid environment combined with saline water flow has resulted in the widespread presence of salt lakes Many salt lakes host known occurrences of potash-bearing brines and some host existing Mineral Resources*: Lake Disappointment: Indi
Slide 21: Seismic data demonstrates scale of embayment
Great Sandy Desert Project Seismic data demonstrates scale of embayment Waukarlcarly Embayment is a large graben feature composed of Canning Basin sediments up to 3.5km deep Embayment is possibly acting as a major depositional sink for groundwater flow from the Canning Palaeoriver Permian sand
Slide 22: Airborne electromagnetic data suggests brine exists
Great Sandy Desert Project Airborne electromagnetic data suggests brine exists Airborne electromagnetic (AEM) survey has indicated that the Waukarlycarly Embayment is highly prospective for potash bearing brines Government funded $2.7 million AEM survey conducted in 2008 Survey covered ~50,000
Slide 23: Company summary
Global Resources Corporation Company summary Strategic focus on exploration and development of high value sulphate of potash (SOP) deposits SOP price has increased from US$250/t in 2004 to over US$700/t in 2014 and market fundamentals remain strong SOP is a geologically scarce commodity and gl