Apc Minerals Limited · ASX:APC
Apc Minerals — Australian Potash — Investor Presentation (October 2018)
32 slides from Apc Minerals's investor presentation, October 2018
Slide 1: Australian Potash Limited (ASX:APC) Investor Presentation
Australian Potash Limited (ASX:APC) Investor Presentation October 2018 Australian Potash Limited (ASX:APC) 1
Slide 2: Important Statements & Disclaimers
Important Statements & Disclaimers Scoping study – cautionary statement Competent Person statement The Study referred to in this announcement is a preliminary technical and economic investigation of The information in the announcement that relates to Exploration Targets and Mineral Resources is the
Slide 3: Investment Highlights
Investment Highlights APC is focused on the production of the premium specialty fertiliser potassium sulphate ("SOP") from its Lake Wells Project in the Eastern Goldfields of Western Australia SOP is used in the production of high value, chloride-sensitive crops such as fruits, vegetables, and tree
Slide 4: Corporate Snapshot
Corporate Snapshot 12 Month Share Price Performance and Volume Capital Structure 5,000 0.14 Share Price (1 October 2018) A$0.071 Shares on Issue (ASX: APC) 305m 0.12 4,000 Listed Options (ASX: APCOA, 20c, October 38m 0.1 2019) 3,000 Unlisted Options (10c - 22.5c, 2021) 34m Volume (‘000) 0.08 Price (
Slide 5: Board and Management
Board and Management Board Management James Walker Mr Walker has 45 years’ experience in the resources industry, at both senior management and board level. Prior to retiring from Executive Chairman the position in 2013, Jim was the Managing Director and Chief Executive Officer of WesTrac Pty Ltd, du
Slide 6: Lake Wells Sulphate of Potash Project Definitive Feasibility Study Update
Lake Wells Sulphate of Potash Project Western Australia, 100% owned Definitive Feasibility Study Update Australian Potash Limited (ASX:APC) 6
Slide 7: Milestones to Project Financing & Development
Milestones to Project Financing & Development 2018 2019 October November December January February March April May June July Abstraction Evaporation Processing Approvals Marketing Reporting Financing Development Definitive feasibility study targeted for completion Q1 2019 Australian Potash Limited (
Slide 8: Definitive Feasibility Study Work Streams: Production Wells
Definitive Feasibility Study Work Streams Brine Abstraction Production Wells Production Wells Work stream to Estimated 100% Current position 90% complete DFS completion date 80% 70% Total number of Stage 60% 1 Wells required, 35 To install to 50% completion of DFS, 2 5 production wells 40% Additiona
Slide 9: Definitive Feasibility Study Work Streams: Test Pumping
Definitive Feasibility Study Work Streams Brine Abstraction Test Pumping Flow Rates from Production Wells, Constant Rate (l/s) Work stream to Estimated 25 Current position complete DFS completion date 20 20 15 15 15.34 10 3 production wells Short term pump at 2 sites have testing on new 5 been step
Slide 10: Definitive Feasibility Study Work Streams: Reserve Estimate
Definitive Feasibility Study Work Streams Brine Abstraction JORC Mineral Reserve Estimate JORC Mineral Resource Estimate Work stream to Estimated 16 14.8 Current position 14 12.7 complete DFS completion date Drainable SOP million tonnes 12 10 8 14.8 million 6 tonnes Total Completion of 4 2.1 Drainab
Slide 11: Definitive Feasibility Study Work Streams: Geotechnical Survey
Definitive Feasibility Study Work Streams Brine Evaporation Continued Geotechnical Survey Program Surficial Clay Permeability and Recoveries from On-Playa Evaporation Ponds Work stream to Estimated Current position 0.12 DFS to date, 72% 75% complete DFS completion date 0.1 70% 0.08 mm per day 65% 0.
Slide 12: Definitive Feasibility Study Work Streams: Pond Constructability
Definitive Feasibility Study Work Streams Brine Evaporation Evaporation Pond Constructability Program Scoping Study Estimated Pond Size Work stream to Estimated 12 Current position complete DFS completion date 10 10.0 Square kilometres 8 6 Preliminary, Develop trial sites 4 scoping study at Lake Wel
Slide 13: Definitive Feasibility Study Work Streams: Pilot Evaporation Ponds
Definitive Feasibility Study Work Streams Brine Evaporation Pilot Evaporation Pond Program Successful brine transfer from the Pre- Concentration Pond to First Harvest Pond – APC transferred 110 tonnes of pre-concentrated brine Brine will continue to evaporate in H1 pond until 10 October then be
Slide 14: Definitive Feasibility Study Work Streams: SOP Trade Samples
Definitive Feasibility Study Work Streams Process SOP Trade Sample Production Program Work stream to Estimated Current position complete DFS completion date Harvest ‘feeder’ salts from ponds, Pilot pond harvest freight to process Q4 2018 salts crystallising facility, produce SOP The task is now to
Slide 15: Definitive Feasibility Study Work Streams: EPA Program
Definitive Feasibility Study Work Streams Approvals EPA Program Current position Work stream to complete DFS Estimated completion date • S38 Referral lodged with EPA 20 December • ERD to EPA 2017 • Water abstraction license • Environmental Review Document being • Mining Proposal prepared: Scoping Do
Slide 16: Definitive Feasibility Study Work Streams: Mining Leases Granted
Definitive Feasibility Study Work Streams Approvals Mining Leases granted 30,000 Ha of granted mining leases covering Stage 1 & 2 development envelopes Project development area is not subject to NTA ‘Right to Negotiate’ APC continues to engage with and enjoy co-operative relationship with loca
Slide 17: Australian ASX Peer Comparison
Australian ASX Peer Comparison With its low EV/Resource value and proximity to legitimate infrastructure, APC presents as significantly undervalued against its ASX listed peers Australian Salt Lake Reward Agrimin Kalium Lakes Potash Potash Minerals (AMN) (KLL) (APC) (SO4) (RWD) Development metrics P
Slide 18: Lake Wells Sulphate of Potash Project Appendices
Lake Wells Sulphate of Potash Project Western Australia, 100% owned Appendices Australian Potash Limited (ASX:APC) 18
Slide 19: Sulphate of Potash (SOP): the Premium Potash
Sulphate of Potash (SOP): the Premium Potash SOP is low chloride making it ideal for application to higher-value chloride sensitive crops - Integer Research cotton coffee tobacco grapes tea Bright, leafy green vegetables, Citrus fruit, deciduous tomatoes, fruits, tree nuts, beans and potatoes strawb
Slide 20: Global Trade in Potash
Global Trade in Potash $US Sales Price per tonne Main Varieties of Potash 700 Sulphate of Potash: SOP 8 600 SOP, 580 Muriate of Potash: MOP 60 500 Global annual traded tonnes (approx. mT) 400 SOP commands a price premium over MOP of up to approx. $US300 per tonne 300 MOP, 300 Lack of supply: margi
Slide 21: Production of SOP
Production of SOP Global SOP production by method Average cost of SOP production 2o production 1o production 550 Brine evaporation 20% 500 Mannheim, Hard rock extraction 5% $450 Mannheim 450 50% $US per metric tonne 400 KCl reaction Hard rock 25% 350 extraction, $350 Brine evaporation Hard rock extr
Slide 22: China is the World's Largest SOP Market
China is the World’s Largest SOP Market SOP Global Production 2004 - 2015 SOP Global Demand 2015 – 2026 12 12 World with China World without China World with China World without China 9.6 9.6 10 10 8.9 9.3 8.6 8.3 7.8 7.9 8.0 7.5 7.5 7.6 7.7 8 8 Million metric tonnes Million metric tonnes 6.9 5.6 5.
Slide 23: Three-stage Production Process
Three-stage Production Process Hypersaline brine is pumped from underground aquifers into Abstraction evaporation ponds of brine Bore-field development to depths of 175m Water is evaporated off the brine, leaving Evaporation crystallised salts to be harvested of water On-playa concentration
Slide 24: Ideal Abstraction Method to Meet Production Targets
Ideal Abstraction Method to Meet Production Targets Abstraction of brine is the ‘mining’ part of an SOP operation Short-term pump tests 90 yielded up to 34l/s 40 Lake Wells will use a bore- Required Flow Rate per Production Bore (l/s) 80 35 field brine abstraction method 70 Number of Production Bore
Slide 25: Proven Evaporation Progression
Proven Evaporation Progression Evaporation of water is the ‘beneficiation’ part of an SOP operation Development of evaporation pond network on the lake surface at Lake Hypersaline brine is Wells confirmed through geotechnical field program comprising pumped into the pond network from 40 test pits
Slide 26: The Lake Wells SOP Project
The Lake Wells SOP Project Lake Wells will process SOP from brine evaporation and KCl reaction CAPEX WITHOUT AND WITH KCL REACTION Indicative Prices for SOP Grade and type Brine bore field Evaporation ponds Process plant Non-process infrastructure $650 Indirects Contingency $630 52% 22.6 24.4 $610 S
Slide 27: China is Ideal Target Market
China is Ideal Target Market SOP Demand Lake Wells SOP project development will be 4,000 underpinned by off-take agreements supplying initially into the Chinese market 3,500 Two MOUs in place for up to 100,000tpa with 3,000 Sino-Agri, China’s largest agricultural company ‘000 metric tonnes 2,500
Slide 28: Approvals Schedule
Approvals Schedule Q4 2018 Q2 2019 Department of Mines, Department of Water & Environment Protection Authority (EPA) Industry Regulation & Environment Western Australia’s Environmental Protection Safety (DMIRS) Regulation (DWER) Agency (EPA) is assessing the Lake Wells Mining Lease Existing water SO
Slide 29: JORC Compliant Resource Estimate
JORC Compliant Resource Estimate Drainable K Volume of Specific SOP Grade SOP Brine Concentration Aquifer Yield (mg/L) Resource Hydrogeological Unit Volume (mg/L) Weighted Weighted MCM Mean MCM MT Mean Value Mean Value Indicated Resources Western High Grade Zone Surficial Aquifer 5,496 10% 549 3,738
Slide 30: SOP Data Information Sources
SOP Data Information Sources www.greenmarkets.com Green Markets www.integer-research.com Integer www.argusmedia.com Argus Media www.cru.com CRU International Limited www.fertilizer.org The International Fertilizer Association www.sopib.com Sulphate of Potash Information Board Australian Potash Limit
Slide 31: Registered Office Address
Registered Office Address 31 Ord Street, West Perth WA 6005 PO Box 1941, West Perth WA 6872 Reception: +61 8 9322 1003 Email: [email protected] Website: www.australianpotash.com.au ABN 58 149 390 394 Australian Potash Limited (ASX:APC) 31
Slide 32: Australian Potash Limited (ASX:APC)
Australian Potash Limited (ASX:APC) 32
Australian Potash — Investor Presentation (October 2018) on 6ix