Avenira Limited · ASX:AEV
Avenira — Conference Presentation (February 2016)
23 slides from Avenira's conference presentation, February 2016
Slide 1: Nearing Rock Phosphate Production in Senegal
NEARING ROCK PHOSPHATE PRODUCTION IN SENEGAL …MAKING A DIFFERENCE ASX: AEV ♦ ABN 48 116 296 541
Slide 2: Important information
Important information Disclaimer This presentation is neither a prospectus nor an offer of securities for subscription or sale in any jurisdiction. This presentation is not a securities recommendation and does not constitute financial product or investment advice. The information contained in this p
Slide 3: Corporate Strategy
Corporate Strategy To become a major contributor to the world nutrient market through the development of a carefully selected portfolio of valuable phosphate and other nutrient projects. 2
Slide 4: Investment Thesis
Investment Thesis Production to commence from Baobab Phosphate Project in 2016 Low capex; low opex; simple mining; available infrastructure Permitted and financed Significant exploration potential to expand resource First production and revenue expected in 2nd half of 2016 IHP Technology S
Slide 5: Phosphate: In Use
Phosphate: In Use The majority of phosphate production is used in the manufacture of fertiliser Fertiliser (85%) Technical Phosphates (9%) Animal Feed (6%) Assists with seed formation Synthetic detergents Major structural component of Hastens plant maturity Metal treatment bones and teeth
Slide 6: Phosphate: Strong Fundamentals
Phosphate: Strong Fundamentals Global fertiliser market expected to be worth Rock phosphate has performed strongly US$172 billion during 2015 against a number of other commodities over the last 18 months 5 year average price of US$150/tonne Long term price forecasts of US$130/tonne Rock Phosph
Slide 7: Food & Nutrition Security
Food & Nutrition Security Fertilisers provide essential nutrients to soils, livestock & people resulting in more food, better nutrition and healthier lives. WORLD POPULATION GROWTH ARABLE LAND DECLINE PER INCREASED PER CAPITA CAPITA CONSUMPTION 3,000 Developing Countries Calories 2,572 2050 Per Calo
Slide 8: Baobab Phosphate Project
Baobab Phosphate Project Rapidly progressing towards first production in 2016 Port of Dakar Single exploration permit area of 1,553km2 Sedimentary rock phosphate mineralisation Small Mine Permit (SMP) granted over 5km2, allowing for unlimited production from the Gadde Bissik prospect Plan to
Slide 9: Location of Project and Port of Dakar
Location of Project and Port of Dakar 8
Slide 10: The Republic of Senegal
The Republic of Senegal Overview One of Africa’s most stable and successful democracies (IMF 2010) with a stable and investor friendly social and political environment Population of circa 14.6 million (2014 estimate) Substantial progress in combating poverty, improving social infrastructure an
Slide 11: Indicated Resource
Indicated Resource Updated Mineral Resource estimates released on 7 December 2015 Maiden Indicated Mineral Resource within SMP of 12.6 Mt at 21.0% P2O5 Inferred Mineral Resource within SMP of 16Mt at 20% P2O5 Inferred Mineral Resource outside SMP of 64Mt @ 19% P2O5 Only 40% of SMP currently
Slide 12: Baobab Project Financial & Commercial
Baobab Project Financial & Commercial The Baobab Phosphate Project is financed to production: Existing Avenira cash of $12m – as at 31 December 2015 J.P. Morgan Placement raising 3.1m – ASX announcement 3 November 2015 Binding agreements for the Mimran Natural Resources Placement and Baobab Pr
Slide 13: Baobab Project Progress
Baobab Project Progress TASK STATUS Inferred Resource – Initial Phase Complete RESOURCE Indicated Resource – Initial Phase Complete Contract mining and crushing Contract Signed. Mobilising to Site Contract Signed. Long lead time Wet screening components ordered. PROJECT Water Drilling Drilling in pr
Slide 14: Baobab Milestones 2016
Baobab Milestones 2016 Key: Complete In Progress Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Resource Development (Initial phase) Metallurgical Testwork Engineering Environmental Permit Community Relocation Agreement Preliminary Feasibility Study / PEA Commencement of overburden removal Offtake
Slide 15: Four Stage Growth Strategy
Four Stage Growth Strategy Focus on production from SMP • Fully financed and permitted Stage 1 • First production during 2nd half 2016 • Targeting 500,000tpa Expand Resource via Exploration Stage 2 • Progress high priority infill drill targets proximal to SMP • Targeting thicker, high grade minerali
Slide 16: Wonarah Project – Northern Territory
Wonarah Project – Northern Territory Project 100% owned by Avenira One of Australia’s largest JORC and NI43-101 compliant phosphate resource Measured + Indicated Resource 300Mt @ 18.3% P2O5 (10% cut-off) Inferred Resource 542Mt @ 18% P2O5 (10% cut- off) Excellent installed infrastructure i
Slide 17: Improved Hard Process (IHP)
Improved Hard Process (IHP) IHP is an advanced downstream process aimed at transforming low grade rock phosphate into high value superphosphoric acid (SPA), which is a key feedstock into the commercial fertiliser market. IHP offers significant benefits over the traditional wet-acid process Substan
Slide 18: Corporate Snapshot
Corporate Snapshot KEY STATISTICS ASSETS Ordinary shares on issue 419m Baobab Project– 100% holding • Located in Senegal Share price A$0.12 • Substantial phosphate opportunity Market Capitalisation A$50.3m Baobab Mining & • Progressing towards near-term production Chemicals Corporation Debt Nil Wona
Slide 19: Post Mimran Investment
Post Mimran Investment KEY STATISTICS ASSETS Ordinary shares on issue 524m Baobab Project– 80% holding • Located in Senegal Share price A$0.12 • Substantial phosphate opportunity Market Capitalisation A$62.9m Baobab Mining & • Progressing towards near-term production Chemicals Corporation Debt Nil W
Slide 20: Summary
Summary Development of the Baobab Phosphate Project is Avenira's priority Potential for near-term rock phosphate production and cash flow Strong strategic fit to Avenira's focus in the nutrient space Fully permitted and financed to production Ability to leverage significant existing Senega
Slide 21: Avenira Limited
Avenira Limited ABN 48 116 296 541 www.avenira.com Ground Floor, 20 Kings Park Road West Perth, WA 6005 AUSTRALIA PO Box 1704 West Perth WA 6872 AUSTRALIA +61 8 9264 7000 [email protected] For further information: Mr Cliff Lawrenson Managing Director and CEO Mr Rod Wheatley CFO and Company Secre
Slide 22: Phosphate Reserves and Production
Phosphate Reserves and Production More than 85% of global phosphate reserves in Africa and the Middle East. Global production in 2014 was 220 million tonnes. China production has traditionally been for the domestic market. However, China has become a meaningful exporter despite export quotas a
Slide 23: Importance of Macro Nutrients
Importance of Macro Nutrients “Commercial fertilizer is responsible for 40 to 60% of the world’s food production. Without fertilizer, the world would produce only about half as many staple foods” Dr. Roberts, President, International Plant Nutrition Institute Nitrogen - fulfils plant’s yield potenti