Agrimin Limited · ASX:AMN
Agrimin — Investor Presentation (May 2016)
25 slides from Agrimin's investor presentation, May 11, 2016
Slide 1: Investor Presentation May 2016
ASX | AMN For personal use only Investor Presentation May 2016
Slide 2: Company Highlights
Company Highlights For personal use only Our vision is to create a new potash export industry in Australia Strategic focus on sulphate of potash (SOP) in Western Australia SOP is premium potash fertilizer used for high-value crops Supply shortage is an incentive for new primary (salt lake) produ
Slide 3: Corporate Snapshot
Corporate Snapshot Capital Structure Key Personnel For personal use only Share price (10 May 2016) $0.16 Ordinary shares 103.1m Brad Sampson, Non-Executive Chairman – Mining Engineer with 30 years of management and board Performance shares 2.7m experience in the international resources industry. Has
Slide 4: Sulphate of Potash (SOP)
Sulphate of Potash (SOP) A specialty potash fertilizer for high-value crops For personal use only Sulphate of potash (SOP) is used on crops such as fruits, vegetables and tree nuts It improves the nutritional value, taste, appearance and shelf life of crops Its use is essential for chloride-se
Slide 5: Potash Consumption
Potash Consumption SOP market turnover is circa US$4 billion per annum For personal use only In 2015, global potash consumption was approx. 60Mt – including 54Mt of MOP (KCl) and 6Mt of SOP (K2SO4) Primary production (i.e. salt lakes) currently accounts for 2.3Mtpa or 40% of global SOP productio
Slide 6: SOP Production
SOP Production High-cost secondary production provides a price floor For personal use only Industry Cash Cost Curve (2015) Top 10 SOP Producers Installed Production Capacity May 2016 6
Slide 7: Potash Prices
Potash Prices SOP prices have decoupled from MOP prices For personal use only Prices for standard SOP products are currently trading at Global SOP and MOP Prices approx. US$700/t Current weakness in MOP prices has had limited impact on SOP prices Key supply and demand fundamentals support the
Slide 8: Mackay SOP Project
For personal use only Mackay SOP Project Western Australia, 100% Owned
Slide 9: Project Overview
Project Overview Five 100% owned tenements in Western Australia Location Map For personal use only Extensive area of 2,294km2 spanning Lake Mackay Tenements were granted in 2015 Land Access Agreement in place with Traditional Owners Drainable Mineral Resources of 23.2Mt of SOP within 25m f
Slide 10: Competitive Advantages
Competitive Advantages Lake Mackay offers the key geological features needed for a potash brine operation For personal use only Suitable lakebed surface for Shallow brine and high flows evaporation ponds for extraction May 2016 10
Slide 11: Geological Model
Geological Model Lake Mackay consists of two flat lying units For personal use only Upper Zone (0 – 6m) Geological Model of Lake Mackay A unit of coarse gypsum sand of approx. 2m thick grading downward into sandy and silty clay, with significant sand, to depths beyond 6m Lower Zone (6 – 25m) A u
Slide 12: Mineral Resources
Mineral Resources Substantial and shallow Mineral Resources Mineral Resource Outline and Drill Collar Locations For personal use only Indicated and Inferred Mineral Resources of 44,088 gigalitres of brine at 3,603mg/L Potassium – based on specific yield (drainable porosity) Indicated and Inferre
Slide 13: Brine Extraction
Brine Extraction Hydrogeological model supports large-scale flow rates Trench Design used in Hydrogeological Model For personal use only Preliminary hydrogeological modelling supports potential to yield large-scale quantities of brine to support commercial production Lake Mackay is the end point
Slide 14: Example: Qarhan Salt Lake, China
Example: Qarhan Salt Lake, China Qinghai Salt Lake Industry Co. Ltd produces significant volumes of brine via trenching for its MOP operation For personal use only Brine is extracted from a 130km trenching network which is approx. 16m deep and has been operating for 50 years The below pumping st
Slide 15: Solar Evaporation Ponds
Solar Evaporation Ponds Geotechnical study confirms suitable conditions for large-scale ponds For personal use only Silty Clay for Evaporation Ponds Field investigations and laboratory testwork confirm suitable lakebed materials for un-lined ponds Geotechnical study indicated that a simple cut-t
Slide 16: Processing
Processing Evaporation trial demonstrates brine suitability for conventional processing Evaporation Trial For personal use only Evaporation trial at an independent laboratory in Perth has been completed using a 460L brine sample (actual Lake Mackay brine – not synthetically modified in any way)
Slide 17: Ideal Climate
Ideal Climate Excellent climatic conditions for solar evaporation Weather Station Installed by Agrimin For personal use only Temperature extremes range between a low of 2°C and a high of 47°C Annual evaporation rate of 3,600mm and annual rainfall of 250mm Average daily solar exposure of 22.1 M
Slide 18: Example: Lake MacLeod Salt Mine, WA
Example: Lake MacLeod Salt Mine, WA Trenches and solar evaporation ponds are currently used in WA For personal use only Collection trenches have been dug into Lake MacLeod and brine is pumped out at an average rate of 920 L/sec into an 8.5km transport channel A total of 16.5km2 of solar evaporat
Slide 19: Transport Infrastructure in Place
Transport Infrastructure in Place Transport Study confirms high-quality infrastructure 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: Alic
Slide 20: Social Licence to Operate
Social Licence to Operate Growing genuine community relationships For personal use only Agrimin has a strong working relationship with the local community and has a Land Access Agreement in place The Mackay Project has an exciting potential to greatly improve community and employment opportuniti
Slide 21: Benchmarking to Existing SOP Operations
Benchmarking to Existing SOP Operations Comparison to Existing SOP Operations For personal use only Mackay, Australia Luobupo, China Great Salt Lake, USA Extraction Method Trenching of Near Surface Brines Trenching of Near Surface Brines Pumping of Near Surface Brines Potassium Grade 3,603 mg/L 10,4
Slide 22: Summary
Summary For personal use only Agrimin’s competitive advantages: Shallow and drainable SOP Mineral Resources Flow rates for large-scale brine extraction via trenching Geotechnical conditions for un-lined evaporation ponds Brine chemistry for conventional processing routes Climatic condition
Slide 23: 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 24: 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]
Slide 25: Mineral Resources
Mineral Resources For personal use only Mineral Resources – Total Porosity 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 45.0% 8.25 26.0 Inferred Lower 6.0 – 24.7 33,004