Agrimin Limited · ASX:AMN
Agrimin — Investor Presentation (July 2019)
27 slides from Agrimin's investor presentation, Jul 31, 2019
Slide 1: Investor Presentation July 2019
For personal use only Investor Presentation July 2019
Slide 2: Company Overview
For personal use only 2 Company Overview • Agrimin Limited is an ASX-listed company with a market capitalisation of $110m • Developing the world-class Mackay Potash Project in Western Australia • Targeting production of a premium potash fertiliser to support the world’s growing consumption of fruits
Slide 3: Vision: establish a new potash export industry in Australia
For personal use only To establish a new potash export industry in Australia and to make a positive impact on some of the country’s most remote Aboriginal communities through the creation of opportunities and sustainable economic development
Slide 4: Corporate Snapshot
Share Price Chart ASX | AMN $1.20 Capital Structure (as at 29 July 2019) For personal use only $1.00 ASX Code AMN Share Price $0.65 $0.80 Shares on Issue 170.6m $0.60 Share Rights 8.0m Market Capitalisation $111.7m $0.40 Cash (as at 30 June 2019) $5.7m $0.20 Debt $0.0m $- 1 July 14 1 July 15 1 July
Slide 5: Mackay Potash Project
For personal use only 5 Mackay Potash Project
Slide 6: Developing Australia's Largest Potash Project
Developing Australia’s Largest Potash Project For personal use only ✓World-class resource base of potassium magnesium sulphate Lake Mackay ✓Methodical and long-term de-risking of key project parameters ✓Scalable logistics chain to support the creation of a globally relevant seaborne supplier ✓Low ca
Slide 7: Mackay Potash Project Overview
Mackay Potash Project Overview For personal use only • 100% owned by Agrimin • Situated on Lake Mackay, 785km south of Wyndham Port in Western Australia • Acquired in 2014 and $25m invested to date • Native Title Agreement in place for the full-scale project • Definitive Feasibility Study and Enviro
Slide 8: Highly Attractive SOP Industry Cost Curve / Project Economics
Highly Attractive For personal use only SOP Industry Cost Curve Project Economics • Pre-Feasibility Study1 completed in 2018 and led by Advisian • SOP production target of 426,000tpa • Cash cost of US$222/t FOB • Annual revenue of A$315m and EBITDA of A$183m Dark section of bars represent site costs
Slide 9: A Globally Significant SOP Deposit
9 For personal use only A Globally Significant SOP Deposit • Lake Mackay spans 3,500km2 and is the world’s largest undeveloped SOP-bearing salt lake deposit • Groundwater starts 40cm below surface and contains high levels of dissolved potassium, magnesium and sulphate which can be processed into a r
Slide 10: Historic Native Title Agreement Signed
10 For personal use only Historic Native Title Agreement Signed • Native Title Agreement signed in 2017 with the Final Negotiation Meeting in October 2017 Kiwirrkurra People, the recognised native title holders of the land at the Mackay Potash Project • Agrimin has received strong support and accept
Slide 11: More than $25m Spent to Date
11 For personal use only More than $25m Spent to Date • Definitive Feasibility Study is underway and being led by Agrimin’s owners team • More than 267 drill holes have been completed across Lake Mackay to support the current Mineral Resource Estimate • Industry leading hydrogeological, geotechnical
Slide 12: Completion of Two Years of Long-Term Pumping Tests
12 For personal use only Completion of Two Years of Long-Term Pumping Tests • Groundwater within the salt lake to be extracted using low-cost shallow trenches • Agrimin has constructed 22 pilot trenches and 122 associated monitoring bores across Lake Mackay as part of the Definitive Feasibility Stud
Slide 13: Industry-Leading Pilot Evaporation Trial Underway
Industry-Leading Pilot For personal use only Evaporation Trial Underway • Groundwater to be transferred via trenches into large-scale ponds to allow solar evaporation and the crystallisation of potash salts for processing • Full-scale solar evaporation ponds facilitate an eco-friendly process and wi
Slide 14: High Quality SOP Samples Produced
14 For personal use only High Quality SOP Samples Produced • Saskatchewan Research Council in Canada has completed testwork to support Agrimin’s proposed conventional process flowsheets for both SOP and SOPM • Agrimin has produced high-grade SOP samples (>52% K2O) that exceed industry benchmarks • P
Slide 15: Major Investment in Regional Roads
Major Investment in For personal use only Regional Roads • The Mackay Potash Project will result in new road infrastructure that will have a substantial supply chain impact for the north of Western Australia • Road upgrades will include 205km of the Tanami Road, which has been allocated funding by b
Slide 16: New Exports can Stimulate Trade
16 For personal use only New Exports can Stimulate Trade • The Mackay Potash Project will become a significant exporter of bulk potash through Wyndham, Western Australia • Large-scale fertiliser finishing plant to be located at Wyndham • New potash exports can lead to consistent and improved trade a
Slide 17: Strategic, Social and Economic Benefits
17 For personal use only Strategic, Social and Economic Benefits • The proposed Mackay Potash Project will employ over 150 direct full-time employees and create approximately 600 jobs through the regional supply chain1 • Agrimin is committed to providing business and employment opportunities for loc
Slide 18: First Potash Production is Targeted in 2022
For personal use only First Potash Production is Targeted in 2022 • Definitive Feasibility Study is scheduled for completion in Q4-2019 • Final Investment Decision for full-scale development is expected in Q4-2020 18 • First potash production is targeted in Q4-2022 18
Slide 19: Strong Government and Community Support
For personal use only Strong Government and Community Support 19
Slide 20: Specialty Potash Fertiliser
For personal use only 2 0 Specialty Potash Fertiliser
Slide 21: Targeting Production of a Specialty Fertiliser for World Markets
21 For personal use only Targeting Production of a Specialty Fertiliser for World Markets • Sulphate of Potash (SOP) and Sulphate of Potash Magnesia (SOPM) are premium forms of potash fertiliser that are vital for high value crops like fruits, vegetables and tree nuts • SOP and SOPM are chloride-fre
Slide 22: China Specialty Potash Demand is Supported by Global Megatrends
China 22 For personal use only Specialty Potash Demand is Source: CRU Supported by • Improving diets in developing countries are leading to increased consumption of fruits, vegetables and tree nuts Global • These types of high value crops require chloride-free potash fertiliser, such as SOP and SOPM
Slide 23: Modern Agriculture Requires More Specialty Potash
23 For personal use only Modern Agriculture Requires More Specialty Potash • Structural changes to farming practices are the result of public Traditional Farmer in Open Fields awareness of agricultural pollution and food quality • Governments of developing countries are focused on reducing environme
Slide 24: Prices Support Strong Economics
Prices Support Historical China SOPM, SOP and MOP Prices (US$/t) Strong Economics For personal use only 600 • Current SOP prices range from US$440/t 1 500 in China to US$625/t in the USA 400 • Current SOPM prices range from1US$260/t 300 in China to US$355/t in the USA 200 • Agrimin’s scalable resour
Slide 25: Contact Agrimin Limited
For personal use only Contact Agrimin Limited Mark Savich www.agrimin.com.au Chief Executive Officer 2C Loch Street, Nedlands WA 6009 +61 402 746 757 +61 8 9389 5363 [email protected] [email protected]
Slide 26: Important Notices and Disclaimers
Important Notices and Disclaimers 26 For personal use only Nature of Document Pre-Feasibility Study Parameters – Cautionary Statement This presentation has been prepared as a summary only, and does not contain all information about Agrimin The Pre-Feasibility Study results, production target and for
Slide 27: Mineral Resources Statement (JORC Code 2012)
Mineral Resources Statement (JORC Code 2012) 27 Mineral Resource – April 2018 (Total Porosity) For personal use only Category State Depth (mbgs) Volume (Mm3) Average Total Porosity SOP Grade (kg/m3) Contained SOP (Mt) Indicated WA 0.40 – 11.25 24,182 46.1% 8.3 92.2 WA 0.40 – 11.25 2,627 46.0% 8.2 9.