Agrimin Limited · ASX:AMN
Agrimin — Investor Presentation (October 2015)
24 slides from Agrimin's investor presentation, Oct 21, 2015
Slide 1: Specialty fertilizer for modern agriculture
Specialty fertilizer for modern agriculture For personal use only Investor Presentation ASX | AMN October 2015
Slide 2: Company Highlights
Company Highlights Strategic focus on sulphate of potash (SOP) in Western Australia For personal use only SOP is premium potash fertilizer used for high-value crops Supply shortage is supportive of new production Current prices are ~US$700 per tonne (~A$960 per tonne) Key focus is the Mackay S
Slide 3: Corporate Snapshot
Corporate Snapshot Capital Structure Directors and management For personal use only Share price $0.23 Ordinary shares 90.1m Stephen Everett – Non-Executive Chairman Options + performance rights 16.7m Chemical engineer with over 35 years of management and board experience in the Fully diluted market
Slide 4: SOP Uses
SOP Uses A specialty 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-sensitive crops and has a
Slide 5: Potash Consumption
Potash Consumption SOP market turnover is circa US$4 billion per annum For personal use only In 2013, global potash consumption was 56Mt – including 51Mt of MOP (KCl) and 5Mt of SOP (K2SO4) SOP contains almost no chloride, compared to MOP which contains 46% chloride More than half of the world
Slide 6: SOP Production
SOP Production Brine-hosted SOP operations lie at the bottom of the industry operating cost curve For personal use only Industry Cash Cost Curve Top 10 SOP Producers Installed Production Capacity www.agrimin.com.au 6
Slide 7: SOP Prices
SOP Prices SOP prices have more than doubled since 2007 For personal use only Prices for standard SOP products are currently trading between Global SOP and MOP Potash Prices ~A$700/t – A$1,100/t 1 Key supply and demand fundamentals: Price inelasticity: SOP demand is driven by high-value crop
Slide 8: Mackay SOP Project
For personal use only Mackay SOP Project Western Australia, 100% Owned
Slide 9: Project Summary
Project Summary 100% owned by Agrimin For personal use only Extensive 2,457km2 ground holding spanning Lake Mackay Brine-hosted SOP deposit starts near surface and remains open at depth SOP grades are highly homogenous across the project area Constant rate pump tests identified areas of pr
Slide 10: Key Features of Lake Mackay
Key Features of Lake Mackay Shallow brine and high flows for extraction: For personal use only Suitable lakebed surface for evaporation ponds: 75km www.agrimin.com.au 10
Slide 11: 2015 Field Program
2015 Field Program Extensive field program completed in September 2015, For personal use only including: Drill Collar and Trench Locations 27 aircore holes drilled to an average depth of 24.7m for resource definition 14 piezometers installed for water monitoring purposes 2 cased wells installe
Slide 12: Drilling and Auger Program
Drilling and Auger Program Brine saturated sediments start from an average of 40cm below surface MA18 0-7m Core Sample MA11 0-30m Drill Sample For personal use only and remain open below the 30m depth of drilling in the east Near surface sand-dominated zone gradually varying in thickness from 30
Slide 13: Trenching Program
Trenching Program Trench at MT1: Trench at MP1: For personal use only MT1 was approximately 110m long and 2.5m deep MP1 was approximately 23m long and 0.5m deep Located near the western edge of the lake Located in the eastern area of the lake Constant rate pump test was performed for 19 co
Slide 14: Scoping Study Underway
Scoping Study Underway Key activities in progress: For personal use only Resource estimation – brine reanalyses are being incorporated into a resource model and physical properties testwork is being undertaken on core samples Hydrogeological evaluation – pump test data from cased wells and trenc
Slide 15: Indicative Timeline
Indicative Timeline For personal use only 2014 2015 2016 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Acquisition of Project Data Verification Mineral Resource Land Access Agreement Transport Study Planning & Permitting Drilling & Trenching Pump Tes
Slide 16: High Quality Infrastructure In Place
High Quality Infrastructure In Place Transport Study was completed in March 2015 Map of Export Routes 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
Slide 17: 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 18: Benchmarking to Existing SOP Operations
Benchmarking to Existing SOP Operations Key attributes of existing brine SOP operations: For personal use only Large and impermeable lakebed surface is necessary to support the use of un-lined evaporation ponds Substantial shallow resource is necessary to support the use low cost trenches to rec
Slide 19: Benchmarking to Existing SOP Operations
Benchmarking to Existing SOP Operations Overview of key parameters for SOP production: For personal use only The initial concentration of potassium in the brine is important and will define the concentration factor and the recovery The SO4:K ratio is important and will determine whether it is a
Slide 20: Example: Lake MacLeod Salt Mine, WA
Example: Lake MacLeod Salt Mine, WA Trenches and 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 55m3 per minute into an 8.5km transport channel A total of 1,650 hectares of evapora
Slide 21: 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 22: For personal use only
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 23: Appendix 1: Mineral Resource Estimate
Appendix 1: Mineral Resource Estimate For personal use only Mineral Resource Estimate – November 2014 Inferred Mineral Resource containing 22.2Mt of SOP Resource Brine Volume SOP Grade Contained SOP Category (m3) (kg/m3) (Mt) Inferred 3,299,260,425 6.72 22.16 Calculated to a shallow average dept
Slide 24: Appendix 2: Global Exploration Target
Appendix 2: Global Exploration Target For personal use only Exploration Target – November 2014 Exploration Target containing between 30.0 and 110.0Mt of SOP Brine Volume SOP Grade Contained SOP Target Range (m3) (kg/m3) (Mt)* Lower 4,600,000,000 6.69 30.00 Target was based on a depth range of 8m