Agrimin Limited · ASX:AMN
Agrimin — Argus FMB Asia Fertilizer 2015
28 slides from Agrimin's conference presentation, Apr 13, 2015
Slide 1: Investor Presentation
For personal use only Investor Presentation Argus FMB Asia Fertilizer 2015 Beijing, China ASX | AMN
Slide 2: Who we are
Agrimin Limited For personal use only Who we are Perth based company with a strategic focus on sulphate of potash (SOP) Late cycle commodity which is leveraged to a rising middle class Geologically scarce mineral used as a fertiliser on high-value crops Growing demand is exceeding supply and
Slide 3: SOP Industry
SOP Industry For personal use only SOP has a highly concentrated supply side SOP Production (‘000t per annum) There are only three primary producers of SOP worldwide: SDIC – Luobupo Operation, China Compass Minerals – Great Salt Lake, USA SQM – Salar de Atacama, Chile These three brine pro
Slide 4: Mackay SOP Project, Australia
Mackay SOP Project, Australia For personal use only Project scale is crucial… and the Mackay Project is comparable to existing operations Salt lake surface area of Lake Mackay is similar to existing SOP operations at Luobupo and the Great Salt Lake Brine composition at Lake Mackay is similar to
Slide 5: Mackay Project (100% owned)
For personal use only Mackay Project (100% owned)
Slide 6: Project Summary
Project Summary For personal use only Overview 100% ownership of six tenements covering 2,457km2 Native Title Land Access Agreement in place and key tenements granted Inferred Mineral Resource containing 22.2Mt of SOP Situated on Australia’s largest potash-bearing salt lake spanning 3,500km2
Slide 7: Indicative Project Timeline
Indicative Project Timeline For personal use only Key objectives for 2015 are to de-risk the project and validate it as a world-class asset 2014 2015 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Acquisition of Mackay Project Site Visits & Data Verification Mineral Resource
Slide 8: Mineral Resource
Mineral Resource For personal use only Highlights Mineral Resource Estimate – November 2014 Resource Brine Volume SOP Grade Contained SOP Inferred Mineral Resource containing 22.2Mt of SOP Category (m3) (kg/m3) (Mt) Inferred 3,299,260,425 6.72 22.16 One of the world’s largest undeveloped brine-h
Slide 9: Exploration Target
Exploration Target For personal use only Highlights Exploration Target – November 2014 Brine Volume SOP Grade Contained SOP Exploration Target containing between 30.0 and 110.0Mt of SOP Target Range (m3) (kg/m3) (Mt)* Lower 4,600,000,000 6.69 30.00 Upper 12,400,000,000 8.91 110.00 All previous d
Slide 10: Previous Exploration
Previous Exploration For personal use only Overview Shallow drilling program was completed in 2009 24 vibracore holes were drilled to an average depth of 2.7m and terminated due to drill rig capacity Vigorous brine flows were recorded in all but two of the holes Drilling was undertaken on gr
Slide 11: Brine Chemistry
Brine Chemistry For personal use only Overview Tri-plot Brine Composition for all Brine Samples 50 brine samples were collected from drill core and analysed for Na, K, Li, Ca, Mg, B, SO4, Cl, U, Br, total dissolved salts (TDS) and specific gravity (SG) using ICP-AES Brine composition is similar
Slide 12: 2015 Work Program
2015 Work Program For personal use only Planned activities Drill 44 infill and extensional aircore holes to depths of up to 30m Drilling will be undertaken on grid spacing of 5km by 5km A select number of holes may be cased and converted to test bores Excavate trial trenches and undertake pu
Slide 13: Conventional Processing
Conventional Processing For personal use only Western Australia has a history of solar salt production The Mackay Project benefits from a very hot and windy environment which is ideal for low-cost solar evaporation techniques Lake Mackay is estimated to have an annual evaporation rate of between
Slide 14: Transport Corridors
Transport Corridors For personal use only Highlights Transport Study was completed by GHD in March 2015 Confirms that existing infrastructure along a number of routes is capable of transporting bulk material from the Mackay Project to various ports Two preferred routes have been selected: 1) M
Slide 15: Darwin Corridor
Darwin Corridor For personal use only Road Mackay Project is connected to Alice Springs via well maintained sealed and unsealed roads Roads are currently used to transport fuel and supplies to communities Road is ideal for Agrimin’s requirements Rail Alice Springs is connected to shipping te
Slide 16: Wyndham Corridor
Wyndham Corridor For personal use only Road Mackay Project is connected to Wyndham via sealed and unsealed roads Roads are currently used to transport fuel and supplies to communities Road services minimal traffic Port The Port of Wyndham underwent a major $10 million government-funded upgra
Slide 17: Social Licence to Operate
Social Licence to Operate For personal use only Growing genuine community relationships Agrimin has been welcomed with acceptance and encouragement from local communities Land Access Agreement signed in December 2014 The Mackay Project has an exciting potential to greatly improve community and
Slide 18: Sulphate of Potash (SOP)
For personal use only Sulphate of Potash (SOP)
Slide 19: Introduction to SOP
Introduction to SOP For personal use only A fertiliser for high-value crops Sulphate of potash (SOP) is a premium form of potash fertiliser SOP contains almost no chloride, compared to standard potash which contains 46% chloride It is used on high-value crops such as vegetables, fruit and tree
Slide 20: Potash Demand
Potash Demand For personal use only Rising food consumption is a long term trend United Nations forecasts approx. 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
Slide 21: Potash Supply
Potash Supply For personal use only SOP resources are geologically rare Global potash production is 64Mt per annum, including 55Mt of muriate of potash (MOP) and 6Mt of SOP The SOP market segment is worth circa US$4 billion per annum SOP Market SOP is strategic and geologically scarce (~6Mt pe
Slide 22: SOP Industry
SOP Industry For personal use only SOP has a highly concentrated supply side SOP Production (‘000t per annum) There are only three primary producers of SOP worldwide: SDIC – Luobupo Salt Lake, China Compass Minerals – Great Salt Lake, USA SQM – Salar de Atacama, Chile These brine producers
Slide 23: Mannheim Process
Mannheim Process For personal use only Marginal cost of production Potassium chloride (MOP) is reacted with sulphuric acid, producing potassium sulphate (SOP) and a hydrochloric acid by-product MOP is the primary input and represents approx. 75% of the production cost for the Mannheim Process (2
Slide 24: Price Outlook
Price Outlook For personal use only Overview SOP prices are trading at approx. US$625/st FOB US Gulf, €445/t FOB NW Europe and ¥3,600/t landed in China (Source: Argus FMB Potash) Supply and demand fundamentals remain very strong: SOP supply is reliant on the high-cost Mannheim Process SOP de
Slide 25: Corporate Information
For personal use only Corporate Information
Slide 26: Corporate Snapshot
Corporate Snapshot For personal use only Capital Structure Directors and management Share price $0.14 Ordinary shares 87.7m Stephen Everett – Non-Executive Chairman Performance shares 4.0m Chemical engineer with +35 years of management and board experience in the international Options 15.0m resource
Slide 27: Important Information
Important Information For personal use only Important Information 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, prospects
Slide 28: Registered Office / Further Information
For personal use only Registered Office Further Information Level 7, BGC Centre, 28 The Esplanade Mark Savich Perth, Western Australia 6000 Chief Executive Officer Australia M: +61 402 746 757 E: [email protected]