Agrimin Limited · ASX:AMN
Agrimin — Investor Presentation (February 2017)
32 slides from Agrimin's investor presentation, Feb 6, 2017
Slide 1: Investor Presentation February 2017
For personal use only Investor Presentation February 2017 ASX | AMN
Slide 2: Important Notices and Disclaimers
Important Notices and Disclaimers Nature of Document For personal use only This presentation has been prepared as a summary only, and does not contain all information about Agrimin Limited’s (“Agrimin” or “the Company”) assets and liabilities, financial position and performance, profits and losses,
Slide 3: Important Notices and Disclaimers – Scoping Study Cautionary Statement
Important Notices and Disclaimers Scoping Study Parameters – Cautionary Statement For personal use only The Scoping Study results, production target and forecast financial information referred to in this Presentation are based on low accuracy level technical and economic assessments that are insuffi
Slide 4: Agrimin Highlights
Agrimin Highlights For personal use only Developing the 100% owned Mackay SOP Project, the world’s largest undeveloped salt lake SOP (sulphate of potash) deposit and comparable to major producing salt lakes Leading the way towards creating a new multi-generational industry in Western Australia
Slide 5: Corporate Snapshot
Corporate Snapshot Capital Structure (3 Feb 2017) Board of Directors For personal use only Share price $0.59 Brad Sampson, Non-Executive Chairperson – Mining Engineer with 30 years of management and board experience in the Ordinary shares 123.9m international resources industry. Has led the financin
Slide 6: Sulphate of Potash (SOP) Specialty Fertilizer for Modern Agriculture
For personal use only Sulphate of Potash (SOP) Specialty Fertilizer for Modern Agriculture
Slide 7: Fertilizers
Fertilizers For personal use only Fertilizers include three macronutrients – Nitrogen (N), Phosphorus (P) and Potassium (K) Consumption of fertilizers containing these Global Potash Production nutrients is approx.: (70Mtpa) 240Mtpa of nitrogen fertilizer MOP 90Mtpa of phosphate fertilizer
Slide 8: Major Fertilizers
Major Fertilizers For personal use only Potash mine Phosphate mine Sulphur Gas field Oil field Coal mine Sulphuric acid Synthetic gas Carbon dioxide Phosphoric acid Ammonia NPK K K P P NP Nitric acid NPK N N MOP & SOP SOP SSP TSP MAP & DAP (Mannheim) Ammonium nitrate Urea Investor Presentation | Feb
Slide 9: Sulphate of Potash (SOP)
Sulphate of Potash (SOP) For personal use only Approx. 10% of the total potash market is SOP SOP is chloride free, compared to MOP (muriate of potash) which contains 46% chloride SOP is essential for chloride-sensitive crops, such as fruits and vegetables, and saline soils SOP improves the n
Slide 10: SOP Demand
SOP Demand Arable Land Per Person For personal use only Since 2000, SOP demand growth has been 5.0% per year, compared to MOP demand growth of 2.3% In 2016, SOP demand reached a record of 7Mt due to increasing use in China, mainly for application on fruits and vegetables 1960 – 4,300m2 2010 – 2,
Slide 11: Potash Prices
Potash Prices For personal use only Prices for standard SOP products are currently Potash Prices for Last 20 Years (US$/t) US$500/t $1,200 The price premium for SOP over MOP is US$275/t, $1,000 the largest it has ever been due to increasing demand and supply constraints for SOP $800 Key supply
Slide 12: SOP Supply
SOP Supply For personal use only In the last decade there has been a shift towards Installed SOP Production Capacity (Top 10 Producers) environmentally friendly SOP production from salt lakes The current SOP supply shortage is caused by the inability of Mannheim producers to dispose of hydrochlo
Slide 13: SOP Production
SOP Production For personal use only There are five SOP salt lake operations: SDIC Luobupo at Lop Nur salt lake Map of SOP Operations (Top 10 Producers) Bindi Potash at Kunteyi salt lake Yara Tessenderlo Kemira SDIC Compass Minerals at Great Salt Lake K+S Bindi Compass SQM at Salar de Atac
Slide 14: Mackay SOP Project Western Australia
For personal use only Mackay SOP Project Western Australia
Slide 15: Project Overview
Project Overview Project Map For personal use only Mineral Resources of 23.2Mt of SOP (drainable) 100% owned tenement package covering 2,784km2 Western Australia ranked as the No. 1 jurisdiction in the world for mining investment by the Fraser Institute Supportive local community and Native
Slide 16: Development Highlights
Development Highlights Project Layout For personal use only SOP production target of 370,000tpa over a 20 year life, with potential to increase both operational capacity and life Extraction of brine is designed exclusively from trenches in the top 5.5m of the deposit Huge lakebed surface area
Slide 17: Scoping Study Highlights
Scoping Study Highlights For personal use only Study confirmed an internationally significant scale Scoping Study Material Assumptions and Outcomes and compelling financial metrics Parameter Unit Value Development Period months 24 Operating Life years 20 SOP production of 370,000tpa over a 20 ye
Slide 18: Industry Comparison
Industry Comparison For personal use only An estimated industry low capital intensity of An estimated bottom quartile mine gate cost, providing US$700/t, making the Project an attractive an opportunity to displace high-cost production from the development proposition Mannheim Process Total dev
Slide 19: Path to Production
Path to Production Scoping Study Indicative Development Timeline and Historical Share Price For personal use only 2014 2015 2016 2017 2018 2019 2020 Share Price Activity Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 - $2.55 Project Acquisition - $2.40 Desktop Study -
Slide 20: The Past Months
The Past 18 Months Drill Hole Locations Large and near-surface SOP Mineral Resources defined (drainable) For personal use only Trial trenches support large-scale brine extraction Geotechnical testwork supports un-lined evaporation ponds Evaporation trial produced the targeted Potassium salts
Slide 21: Our Vision of the Next Months
Our Vision of the Next 15 Months For personal use only Investor Presentation | February 2017 21
Slide 22: Hydrogeology
Hydrogeology For personal use only Hydrogeological model supports brine flow of 66.5GL (gigalitres) per year over a 20 year life Extraction of brine is planned exclusively from trenches in the top 5.5m of the lakebed Lake Mackay is the end point of an enormous groundwater catchment area of app
Slide 23: Example: Lake MacLeod Salt Mine, WA
Example: Lake MacLeod Salt Mine, WA For personal use only Trenches and solar evaporation ponds are currently used throughout Western Australia Rio Tinto extracts 29GL per year of brine from trenches and transfers the brine to evaporation ponds via an 8.5km feed channel The operation uses evapo
Slide 24: Example: Qarhan Salt Lake, China
Example: Qarhan Salt Lake, China For personal use only Qinghai Salt Lake extracts brine via 130km of trenching which is approx. 16m deep and has been operating for 50 years The pumping station shown below is used to pump approx. 60GL per year of brine to the evaporation ponds The entire operat
Slide 25: Conventional Production Process
Conventional Production Process Mackay SOP Product Samples (2016) For personal use only Evaporation trials have successfully produced the targeted Potassium salts from the Lake Mackay brine Process testwork on those salts has successfully produced commercial grade SOP (53.8% K2O) PFS level pro
Slide 26: Benchmarking to Existing SOP Operations
Benchmarking to Existing SOP Operations Mackay, Australia Luobupo, China Great Salt Lake, USA For personal use only Extraction Method Trenching of Near Surface Brines Trenching of Near Surface Brines Pumping of Near Surface Brines Potassium Concentration 3,603 mg/L 10,413 mg/L 4,600 mg/L Lake Surfac
Slide 27: Transport Infrastructure in Place
Transport Infrastructure in Place Map of Transport Corridor For personal use only Road: Project is connected to Alice Springs via well-maintained sealed and unsealed roads which are used to transport fuel and supplies to communities Rail: Alice Springs is connected to shipping terminals via the
Slide 28: Community Relationships
Community Relationships For personal use only Agrimin has a strong working relationship with the local community and has a Land Access Agreement in place Agrimin and the Kiwirrkurra people have agreed to negotiate in good faith with a view to entering into a Mining Agreement The timeline for n
Slide 29: Summary
Summary For personal use only Agrimin is developing a world-class, long-life SOP operation There is a global shortage of SOP and the trend towards low-cost and environmentally friendly production from salt lakes will continue Western Australia is the world’s best jurisdiction for mining invest
Slide 30: For personal use only
For personal use only Office Address 2C Loch Street Nedlands, Western Australia 6009 Australia Further Information Mark Savich Chief Executive Officer M: +61 402 746 757 E: [email protected]
Slide 31: Appendix 1. Mineral Resources (JORC Code 2012)
Appendix 1. Mineral Resources (JORC Code 2012) Mineral Resources – December 2015 (Total Porosity) For personal use only Category Zone Depth (m) Volume (M m3) Average Total Porosity SOP Grade (kg/m3) Contained SOP (Mt) Indicated Upper 0.4 – 2.7 4,036 45.0% 8.41 15.0 Inferred Upper 0.4 – 6.0 7,047 45.
Slide 32: Appendix 2. Scoping Study Information
Appendix 2. Scoping Study Information For personal use only The Study is based on data collected and generated by Agrimin over the past two years Scoping Study Team Discipline Consultant Mineral Resources and hydrogeological modelling used Lead Engineer Lycopodium Minerals field and laboratory d