Kropz Plc · LSE:KRPZ
Kropz — Investor Presentation (September 2021)
26 slides from Kropz's investor presentation, September 2021
Slide 1: Kropz Plc - Emerging African Phosphate Rock Producer
KROPZ PLC EMERGING, AFRICAN PHOSPHATE ROCK PRODUCER Presentation | September 2021 Mark Summers Chief Executive Officer
Slide 2: Investment Proposition
INVESTMENT PROPOSITION Phosphate Sub-Saharan Africa Opportunity § Essential to food § Fastest growing population § Shipping advantages to production on earth major markets § Underpinned by global § Low per hectare arable § Quality rock population expansion land fertilizer consumption concentrates §
Slide 3: Projects
Projects ELANDSFONTEIN $207m § Value underpinned by tangible assets § US$160m invested in high quality processing plant and mine infrastructure § Provides near term cashflows – steady state production 2022 Spent to date HINDA § US$47m invested in drilling, test work and studies § Future growth suppo
Slide 4: Projects: Elandsfontein and Hinda
Projects ELANDSFONTEIN, REPUBLIC OF SOUTH AFRICA Near-term cashflow, 74% owned by Kropz § South Africa’s second-largest phosphate deposit § Low cadmium resource § Test work confirmed robust process solution § >1Mtpa processing facility and infrastructure largely constructed HINDA, REPUBLIC OF CONGO
Slide 5: Opportunity for Kropz
Opportunity for Kropz TOP PHOSPHATE ROCK COUNTRIES AND ACCESS TO MARKETS KROPZ POSITION § Cost advantages through geographical location (and shipping net-backs) § Potential synergies from blending of Elandsfontein and Hinda concentrate streams to meet specific market requirements § Elandsfontein and
Slide 6: Phosphate market: ready for a rebound
Phosphate market: ready for a rebound § Main driver of phosphate rock demand is fertilizer production PHOSPHATE § Fertilizers critical to crop yields and sustaining global food supplies for expanding population MARKET AND § Phosphate rock prices hit 10 year low in April 2020 DRIVERS § CRU forecasts
Slide 7: Corporate structure
Corporate structure 82.7% PARENT COMPANY Kropz Plc (AIM: KRPZ) SUBSIDIARY Kropz Elandsfontein (Pty) Ltd Cominco SA (74%) (90%) PROJECT Elandsfontein Mine Hinda Project LOCAL PARTNER ARC Fund (26%) ROC Government (10%)1 7 1 Subject to 10% potential participation by Republic of Congo Government
Slide 8: Strong board and shareholding
Strong board and shareholding Lord Robin Renwick of Clifton, Chairman Linda Beal, Non-executive Director § Former UK ambassador to USA and South Africa § Former partner at PwC § Former Deputy Chairman of JP Morgan Europe § UK chartered accountant for over 30 years § Extensive corporate mining experi
Slide 9: ESG: Being a responsible mining company
ESG: Being a responsible mining company 1. Mining industry in 2. Public Markets 3. Risk Management the spotlight Investors expectations Climate, social and We need to incorporate and shareholder governance risks = ESG in our business activism business risks strategy 5. Employee Value 6. Existential
Slide 10: Sustainability development goals
Sustainability development goals We are committed to work in line with the UN Sustainable Development Goals: 10
Slide 11: Our Mine: Elandsfontein
OUR MINE Elandsfontein § $160m invested at Elandsfontein to date § $100m equity and shareholder loan from Kropz Plc § $30m equity and shareholder loan from ARC Fund § 43km from port of Saldanha, serviced by surfaced mine road and national freight route § Port capacity, power and water secured § Proj
Slide 12: Elandsfontein: Timeline
Elandsfontein: Timeline DFS Water use completed license awarded Start-up Mining right suspended awarded 2017 2015 2013 2016 Prospecting Construction right awarded and mining development commenced 12
Slide 13: Elandsfontein: Timeline
Elandsfontein: Timeline Planned construction Test work completion Circuit design Commissioning 2019 2021 2018 2020 IPO and initial fund Further fund raise raise Test work EPCM contract award 13
Slide 14: Elandsfontein: Resources and Mining
ELANDSFONTEIN RESOURCES AND MINING 101Mt Quantity Grade Contained Well-defined resource, Resource1, 2 (Mt) (%P 2O5) P 2O5 (Mt) box cut developed, ore Measured 47.5 10.3 4.9 exposed Indicated 30.3 5.1 1.6 Inferred 23.3 5.5 1.3 § Free digging, sandy § Mining method proven deposit (15m to 30m to be suc
Slide 15: Elandsfontein: Processing
ELANDSFONTEIN PROCESSING 1Mtpa Direct – reverse circuit configuration, based on tried and tested Crago process § Plant designed to upgrade to >31% P2O5 § Plant now modified to cater for a direct float, (68% BPL) with capacity of >1.0Mtpa followed by reverse flotation § Continuous pilot scale test wo
Slide 16: March 2017 Elandsfontein footprint
March 2017 Elandsfontein footprint 16
Slide 17: Elandsfontein 3D model for modifications
2020 Elandsfontein 3D MODEL for modifications 17
Slide 18: July 2021 Elandsfontein footprint
July 2021 Elandsfontein footprint 18
Slide 19: Elandsfontein: LOM and economics
Elandsfontein: LOM and economics Metric Project Current LOM (potential to extend) 9 years Steady state annual production >1Mt Phosphate rock concentrate 31% P2O5 LOM phosphate rock production 8.7Mt LOM selling price (FOB) $136/t1 LOM cash costs (FOB) $86/t 19 1 CRU, June 2021
Slide 20: Our Project: Hinda
OUR PROJECT § US$47 million invested in Hinda to date § Extensive geological drilling (929 holes) § DFS completed in 2015 for 4Mtpa project, favourable economics but >$600 million Hinda investment (in 2015 terms) § Laboratory and pilot scale test work § Attractive investment environment in completed
Slide 21: Hinda: Timeline
Hinda: Timeline Extensive ESIA laboratory and (environmental pilot test work authorisation) completed approved 2014 2016 2013 2015 JORC / NI43- DFS completed for 101 resource 4Mtpa project declared Mining right awarded 21
Slide 22: Hinda: Timeline
Hinda: Timeline Updated (phased) Planned construction feasibility study completion completed by HATCH Commissioning 2021 2024 2018 2022 Mining Investment Fund raise Agreement finalised EPCM contract award 22
Slide 23: Hinda: Resources and Mining
HINDA RESOURCES AND MINING 676Mt One of the world’s Resource1 Quantity Grade Contained (Mt) (%P2O5) P2O5 (Mt) largest undeveloped phosphate reserves Measured 200.5 11.6 23.3 Indicated 380.9 9.8 37.3 Inferred 94.4 7.5 7.1 § Large (>650Mt), shallow § Total reserve of resource1 at 10% P2O5 Total 675.8
Slide 24: Hinda: Optimised Production Plan
HINDA OPTIMISED PRODUCTION PLAN 10% Large, shallow resource at 10% P2O5 § Feasibility study update will § Replacement slurry pipeline § Possible removal of in-pit target phased production infrastructure with trucking for crushing and conveying capacity of 1Mtpa, increasing to transport of concentrat
Slide 25: Hinda: infrastructure
Hinda: infrastructure ROAD RN1 highway, Pointe Noire PORT New quay at Pointe Noire 25
Slide 26: Thank You
THANK YOU www.kropz.com [email protected] 26