Agrimin Limited · ASX:AMN
Agrimin — Investor Presentation (December 2016)
29 slides from Agrimin's investor presentation, Dec 1, 2016
Slide 1: Investor Presentation December 2016
For personal use only Investor Presentation December 2016 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 Leveraged to increasing global food demand and the challenge of achieving food security SOP (sulphate of potash) is a specialty fertilizer with a robust market outlook and limited options for global supply growth 100% ownership of the Mackay SOP Project
Slide 5: Corporate Snapshot
Corporate Snapshot Capital Structure (30 Nov 2016) Board of Directors For personal use only Share price $0.60 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 financi
Slide 6: Mackay SOP Project, Western Australia
For personal use only Mackay SOP Project Western Australia
Slide 7: Project Overview
Project Overview Location Map For personal use only Mineral Resources of 23.2 million tonnes of SOP (drainable) Extensive tenement package covering 2,784km2 100% owned and located in low-risk Western Australia Supportive local community and Native Title Land Access Agreement in place Excel
Slide 8: Project Highlights
Project Highlights Project Map For personal use only A world-class salt lake asset with internationally significant scale and compelling financial metrics Scoping Study indicates production of 370,000tpa of SOP over a 20 year life, with potential to increase both operational capacity and life
Slide 9: 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 10: An Industry Leader in Australia
An Industry Leader in Australia Drill Hole Locations Large and near-surface SOP Mineral Resources defined (drainable) For personal use only Trial trenches and pump testing supports large-scale brine extraction Geotechnical testwork indicates excellent conditions for un-lined ponds Evaporatio
Slide 11: Hydrogeology
Hydrogeology Hydrogeological Model of Lake Mackay For personal use only Hydrogeological model supports brine flow of 66.5GL (gigalitres) per year over a 20 year life, exclusively from trenches Lake Mackay is the end point of an enormous groundwater catchment area of approx. 87,000km2 (i.e. the s
Slide 12: 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 13: 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 14: Conventional Production Process
Conventional Production Process Evaporation Trial in Perth (2016) For personal use only Extraction of brine is designed exclusively from trenches in the top 5.5m of the deposit Huge lakebed surface area provides the ideal geotechnical setting for large-scale solar evaporation ponds Process pla
Slide 15: Scoping Study Highlights
Scoping Study Highlights For personal use only Study delivered strong technical and economic Scoping Study Material Assumptions and Outcomes fundamentals Parameter Unit Value Development Period months 24 Average production rate of 370,000tpa of SOP over a Operating Life years 20 20 year life Bri
Slide 16: Industry Comparison – Production
Industry Comparison – Production For personal use only SOP market turnover is approx. US$4 billion per year Installed SOP Production Capacity (Top 10 Producers) The last decade has seen a shift towards environmentally friendly SOP production from salt lakes Five salt lakes currently account fo
Slide 17: Industry Comparison – Costs
Industry Comparison – Costs For personal use only An industry low capital intensity of US$700/t, making An estimated bottom quartile mine gate cost, providing the Project an attractive development proposition an opportunity to displace high-cost production from the Mannheim Process Total devel
Slide 18: 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 19: 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 20: 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 21: Sulphate of Potash (SOP): Specialty Fertilizer for Modern Agriculture
For personal use only Sulphate of Potash (SOP) Specialty Fertilizer for Modern Agriculture
Slide 22: Fertilizers and SOP
Fertilizers and SOP For personal use only Fertilizers include three macronutrients – Nitrogen (N), Phosphorus (P) and Potassium (K) Compound fertilizers or NPKs are manufactured Global Potash Production by combining the three macronutrients, possibly (67Mt per annum) with secondary nutrients (Ca
Slide 23: Sulphate of Potash (SOP)
Sulphate of Potash (SOP) For personal use only SOP is chloride free, compared to muriate of potash (MOP) which contains 46% chloride SOP is essential for chloride-sensitive crops (i.e. fruits, vegetables and tree nuts) and saline soils SOP improves the nutritional value, taste, appearance and
Slide 24: Fundamental Demand Drivers
Fundamental Demand Drivers Arable Land Per Person For personal use only Approx. 71 million new people to feed each year (i.e. the population of Germany), while arable land is declining around the world Approx. 80% of future growth in crop production is expected to come from higher yields and cro
Slide 25: Potash Prices
Potash Prices For personal use only Prices for standard SOP products are currently trading at approx. US$540/t (NW Europe FOB) Potash Prices – January 2012 to April 2016 Current weakness in MOP prices has had limited impact on SOP prices Key supply and demand fundamentals support the current S
Slide 26: Summary
Summary For personal use only Agrimin is well placed to take advantage of the robust market outlook and demand for specialty fertilizers The trend towards low-cost and environmentally friendly SOP production from salt lakes will continue Western Australia is an emerging SOP province and Agrimi
Slide 27: Registered Office and Further Information
For personal use only Registered Office Level 9, 190 St Georges Terrace Perth, Western Australia 6000 Australia Further Information Mark Savich Chief Executive Officer M: +61 402 746 757 E: [email protected]
Slide 28: 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 29: 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