Agrimin Limited · ASX:AMN
Agrimin — RIU Explorers Conference 2018
30 slides from Agrimin's conference presentation, Feb 21, 2018
Slide 1: Investor Presentation February 2018
For personal use only Investor Presentation February 2018
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: Agrimin highlights
Agrimin highlights For personal use only ➢ Developing a globally significant Sulphate of Potash (SOP) operation on the world’s largest undeveloped SOP-bearing salt lake ➢ Long-life operation to be underpinned by a low-risk jurisdiction and first quartile cost position ➢ Leveraged to increasing deman
Slide 4: Corporate snapshot
Corporate snapshot Capital Structure (19 February 2018) Share Price Chart (1 July 2014 to 19 February 2018) For personal use only ASX Code AMN Native Title Shares 156.2m $1.20 Agreement Positive Signed Share Rights & Options 8.5m Scoping Maiden Study $1.00 Share Price A$0.88 Mackay SOP SOP Resource
Slide 5: Key people
Key people Board of Directors Key Technical Personnel For personal use only Mark Savich | Chief Executive Officer Tom Lyons | General Manager Financial analyst (CFA) with 14 years of experience in the resources Geologist with experience in a range of commodities including industrial minerals, metals
Slide 6: Sulphate of Potash (SOP): Specialty Fertilizer for Modern Agriculture
For personal use only Sulphate of Potash (SOP) Specialty Fertilizer for Modern Agriculture
Slide 7: Commodity fertilizers are currently over-supplied
Commodity fertilizers are currently over-supplied For personal use only ➢ Commodity fertilizers provide three macronutrients that every crop needs: ➢ Nitrogen (N) – the most important for healthy plant growth, such as leaf size, colour and yield ➢ Phosphorus (P) – vital for photosynthesis and enhanc
Slide 8: Major fertilizer producers are adding value downstream
Major fertilizer producers are adding value downstream For personal use only Potash mine Phosphate mine Sulphur Gas field Oil field Coal mine Sulphuric acid Synthetic gas Carbon dioxide Phosphoric acid Ammonia NPK K K P P NP Nitric acid NPK N N MOP & SOP SOP SSP TSP MAP & DAP (Mannheim) Ammonium nit
Slide 9: SOP is chloride-free potash & a high value product
SOP is chloride-free potash & a high value product For personal use only ➢ 90% of all potash production is MOP (muriate of potash) which contains 46% chloride ➢ SOP (sulphate of potash) is chloride-free and vital for high value crops, such as fruits and vegetables ➢ SOP improves the nutritional valu
Slide 10: SOP demand is growing rapidly
SOP demand is growing rapidly For personal use only ➢ Demographic shift from rural to urbanised populations is increasing the consumption of fruits and vegetables SOP Demand (Deliveries) ➢ Agricultural pollution, water scarcity and technological advancements are causing a structural change in food p
Slide 11: SOP supply is already unable to keep up with demand
SOP supply is already unable to keep up with demand For personal use only ➢ Current supply shortage of SOP is caused by Mannheim Installed SOP Capacity of Major Producers producers being unable to dispose of hydrochloric acid (Overlayed on Population Density) Mannheim Process: MOP + Sulphuric Acid =
Slide 12: Lake Mackay is set to be the next major SOP salt lake
Lake Mackay is set to be the next major SOP salt lake Current SOP Production Rates of Major Producers1 For personal use only ➢ There are five major salt lakes with installed SOP capacity, three of which started in the last 10 years: 1,500,000tpa ➢ CITIC Guoan Group at Xitai Jinair salt lake (2012) 1
Slide 13: Lake Mackay is comparable to current SOP operations
Lake Mackay is comparable to current 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
Slide 14: SOP prices are incentivising new production
SOP prices are incentivising new production For personal use only ➢ Prices for standard SOP products are currently US$500/t Potash Prices for Last 20 Years $1,200 ➢ Since 2000, SOP demand growth has been 5.0% per year, $1,100 compared to MOP demand growth of 2.3% $1,000 $900 $800 ➢ Robust outlook fo
Slide 15: Mackay SOP Project, Western Australia
For personal use only Mackay SOP Project Western Australia
Slide 16: A globally significant project in the making
A globally significant project in the making Project Location For personal use only ➢ Project is 100% owned by Agrimin and located 500km east of Alice Springs ➢ Targeting a production rate of 370,000tpa of SOP1 commencing in 2021 and operating for 20 years ➢ Native Title Agreement signed for the pro
Slide 17: Key attributes support large-scale & low-cost production
Key attributes support large-scale & low-cost production For personal use only ➢ Saline groundwater (brine) within Lake Mackay contains high-grade Potassium and Sulphate in solution Shallow Brine Resources Across the Entire Deposit ➢ Mineral Resources of 23.2Mt of SOP1 (drainable brine) have been de
Slide 18: Shallow resources have excellent potential to grow
Shallow resources have excellent potential to grow Drill Hole Locations For personal use only ➢ 98 drill holes on a 5km grid provide a strong geological understanding of the deposit ➢ Mineral Resources are defined within a single geological unit over an area of 2,201km2 ➢ Shallow Mineral Resources c
Slide 19: Low-risk development plan for a long-life operation
Low-risk development plan for a long-life operation Project Layout For personal use only ➢ Trench extraction of 78.5Mtpa of groundwater grading 0.7% SOP ➢ Evaporation ponds start at 34km2 and expand to 59km2 over 20 years ➢ Harvesting of 2.5Mtpa of potash salts grading 17.8% SOP ➢ Production of 370k
Slide 20: On-lake geotechnics support large-scale unlined ponds
On-lake geotechnics support large-scale unlined ponds For personal use only ➢ Full-scale ponds will cover less than 2% of Lake Mackay at the end of the operation’s proposed 20 year life ➢ Remoulded permeability values of 9.7 x 10-9 to 4.6 x 10-11 m/s indicate suitable on-lake setting for unlined pon
Slide 21: High quality SOP samples produced during testwork
High quality SOP samples produced during testwork For personal use only ➢ Process testwork has produced commercial grade SOP Simplified Process Flow Diagram samples (>52% K2O) that exceed industry benchmark grades ➢ PFS process testwork successfully validates the use of conventional SOP production t
Slide 22: Transport infrastructure in place
Transport infrastructure in place Map of Transport Corridors 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 mining operations and communities ➢ Rail: Alice Springs is connected to ship
Slide 23: Scoping study indicates a compelling investment case
Scoping study indicates a compelling investment case For personal use only ➢ Scoping Study (August 2016) confirmed globally significant scale and compelling economics Scoping Study Material Assumptions and Outcomes Parameter Value Operating Life 20 years ➢ Targeted SOP production of 370,000tpa over
Slide 24: Forecasted to have industry low capex & opex
Forecasted to have industry low capex & opex For personal use only ➢ Industry low capital intensity of US$700/t, making the Project ➢ Bottom quartile cost, providing an opportunity to displace an attractive development proposition high-cost production from the Mannheim Process Capital Intensity for
Slide 25: Project delivery schedule targets SOP production in 2021
Project delivery schedule targets SOP production in 2021 For personal use only 2018 2019 2020 2021 Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Pre-Feasibility Study Environmental Assessment Definitive Feasibility Study Regulatory Approvals Financing Trench & Pond Earthworks Plant Construction
Slide 26: Exploration upside from lateral and depth extensions
Exploration upside from lateral and depth extensions Tenement Map For personal use only ➢ Current Mineral Resources are hosted by a single contiguous deposit covering an area of 2,201km2 ➢ The Company controls a contiguous on-lake area of 3,383km2 and the northern and eastern parts of Lake Mackay ha
Slide 27: Creating sustainable economic development
Creating sustainable economic development For personal use only ➢ Agrimin’s proposed A$346 million fertilizer operation at Lake Mackay is the only advanced industrial development in this very remote part of the Australia ➢ The Mackay SOP Project will create substantial economic and public benefits f
Slide 28: Summary
Summary For personal use only ➢ Agrimin is developing a globally significant SOP project in one of the best mining jurisdictions in the world ➢ Robust outlook for SOP prices is supported by: ➢ Urbanised populations rotating to healthier diets ➢ Structural change to food production practices for high
Slide 29: For personal use only
Office Contact: 2C Loch Street Nedlands, Western Australia 6009 For personal use only Australia T: +61 8 9389 5363 E: [email protected] W: www.agrimin.com.au Investor Relations Contact: Mark Savich Chief Executive Officer M: +61 402 746 757 E: [email protected] Media Contact: Michael Vaughan
Slide 30: Appendix 1. Mineral Resources Statement (JORC Code 2012)
Appendix 1. Mineral Resources Statement (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