Agrimin Limited · ASX:AMN
Agrimin — Investor Presentation (March 2019)
26 slides from Agrimin's investor presentation, Mar 26, 2019
Slide 1: Investor Presentation March 2019
For personal use only Investor Presentation March 2019
Slide 2: Company Overview
For personal use only 2 Company Overview • Founded in 2014, Agrimin Limited is an ASX-listed company with a market capitalisation of $90m • Developing the globally significant Mackay Potash Project in Western Australia • Targeting production of a premium potash fertiliser to support the world’s grow
Slide 3: Company vision: establish a new potash export industry in Australia
For personal use only To establish a new potash export industry in Australia and to make a positive impact on some of the country’s most remote Aboriginal communities through the creation of opportunities and sustainable economic development
Slide 4: Mackay Potash Project
For personal use only 4 Mackay Potash Project
Slide 5: Overview of the Mackay Potash Project
5 For personal use only Overview of the Mackay Potash Project • 100% owned by Agrimin • Situated on Lake Mackay, 785km south of Wyndham Port in Western Australia • Acquired in 2014 and $20m invested to date • Native Title Agreement in place for the project’s full-scale development • Definitive Feasi
Slide 6: Targeting Production of a Specialty Fertiliser for World Markets
6 For personal use only Targeting Production of a Specialty Fertiliser for World Markets • Sulphate of Potash (SOP) is a premium form of potash fertiliser that is vital for high value crops like fruits, vegetables and tree nuts • SOP is a Chloride-free fertiliser and improves the nutritional value,
Slide 7: Highly Attractive Project Economics
Highly Attractive Project Economics For personal use only • Pre-Feasibility Study1 completed in 2018 and led by Advisian, the consulting business line of WorleyParsons Group • Annual SOP production target of 426,000 tonnes • First quartile cash cost of US$222/t FOB • Annual revenue of A$315m and EBI
Slide 8: Historic Native Title Agreement Signed
8 For personal use only Historic Native Title Agreement Signed • Native Title Agreement signed in 2017 with the Final Negotiation Meeting in October 2017 Kiwirrkurra People, the recognised native title holders of the land at the Mackay Potash Project • Agrimin has received strong support and accepta
Slide 9: A Globally Significant Potash Deposit
9 For personal use only A Globally Significant Potash Deposit • Lake Mackay spans 3,500km2 and is the world’s largest undeveloped potash-bearing salt lake • Groundwater within the salt lake contains high levels of dissolved Potassium and Sulphate which can be extracted and processed into potash fert
Slide 10: More than $20m Spent to Date
10 For personal use only More than $20m Spent to Date • More than 267 drill holes have been completed across Lake Mackay to support the Mineral Resource estimate • World-leading hydrogeological, geotechnical and processing consultants from Australia, Canada, Chile and the USA have been involved in t
Slide 11: Long-Term Pumping Tests Underway Since 2017
11 For personal use only Long-Term Pumping Tests Underway Since 2017 • Groundwater within the salt lake will be extracted using low-cost shallow trenches • Agrimin has constructed 21 pilot trenches and 111 associated monitoring bores across Lake Mackay • Agrimin’s hydrogeological team has been opera
Slide 12: Eco-friendly Solar Evaporation Process
12 For personal use only Eco-friendly Solar Evaporation Process • Groundwater will be transferred via trenches into ponds to allow solar evaporation and the crystallisation of potash salts for processing • Agrimin’s process engineering team is currently operating pilot-scale solar evaporation ponds
Slide 13: High Quality SOP Samples Produced
13 For personal use only High Quality SOP Samples Produced • Saskatchewan Research Council in Canada has completed testwork to support Agrimin’s proposed conventional process flowsheet • Agrimin has produced high-grade SOP samples (>52% K2O) that exceed industry benchmarks • Product samples have bee
Slide 14: Major Investment in Regional Roads
Major Investment in For personal use only Regional Roads • The Mackay Potash Project will result in new road infrastructure that will have a substantial supply chain impact for the north of Western Australia • Road upgrades will include 205km of the Tanami Road, which is identified as a Road of Stra
Slide 15: New Exports can Stimulate Trade
15 For personal use only New Exports can Stimulate Trade • The Mackay Potash Project will become a significant exporter of bulk potash through the Wyndham Port • Agrimin intends to establish a large-scale fertiliser finishing plant in Wyndham • New potash exports can lead to consistent and improved
Slide 16: Strategic, Social and Economic Benefits
16 For personal use only Strategic, Social and Economic Benefits • The proposed Mackay Potash Project will employ over 150 direct full-time employees and create approximately 600 jobs through the regional supply chain1 • Agrimin is committed to providing business and employment opportunities for loc
Slide 17: Strong Government and Community Support
For personal use only Strong Government and Community Support 17
Slide 18: First SOP Production is Targeted in 2022
For personal use only First SOP Production is Targeted in 2022 • Definitive Feasibility Study is scheduled for completion in Q4-2019 • Final Investment Decision for full-scale development is expected in Q4-2020 18 • First SOP production is targeted in Q4-2022 18
Slide 19: Sulphate of Potash
For personal use only 9 1 Potash Sulphate of
Slide 20: SOP Demand is Supported by Global Megatrends
20 For personal use only SOP Demand is Supported • Improving diets in developing countries are leading to Source: CRU by Global increased consumption of fruits, vegetables and tree nuts • These types of high value crops require Chloride-free potash Megatrends fertiliser, such as SOP • Chloride in st
Slide 21: Modern Agriculture is Demanding More SOP
21 For personal use only Modern Agriculture is Demanding More SOP • Structural changes to farming practices are the result of public Traditional Farmer in Open Fields awareness of agricultural pollution and food quality • Governments of developing countries are focused on reducing environmental impa
Slide 22: China SOP Prices
China SOP Prices For personal use only • SOP prices in China have increased by more than 30% in the last two years primarily as a function of rising production costs • Current published powder SOP price (52% K2O, ex-works, north-west China) is RMB3,050/t (approx. US$445/t) Source: CRU 22
Slide 23: Share Price Chart and Capital Structure
Share Price Chart ASX | AMN $1.40 Positive Pre-Feasibility Capital Structure (as at 25 March 2019) For personal use only $1.20 Native Title Study Agreement ASX Code AMN Positive $1.00 Signed Share Price $0.54 Scoping Mackay Study Shares on Issue 170.6m $0.80 Potash Project Share Rights 8.0m Acquired
Slide 24: Contact Agrimin Limited
For personal use only Contact Agrimin Limited Mark Savich www.agrimin.com.au Chief Executive Officer 2C Loch Street, Nedlands WA 6009 +61 402 746 757 +61 8 9389 5363 [email protected] [email protected]
Slide 25: Important Notices and Disclaimers
Important Notices and Disclaimers 25 For personal use only Nature of Document Pre-Feasibility Study Parameters – Cautionary Statement This presentation has been prepared as a summary only, and does not contain all information about Agrimin The Pre-Feasibility Study results, production target and for
Slide 26: Mineral Resources Statement (JORC Code 2012)
Mineral Resources Statement (JORC Code 2012) 26 Mineral Resource – April 2018 (Total Porosity) For personal use only Category State Depth (mbgs) Volume (Mm3) Average Total Porosity SOP Grade (kg/m3) Contained SOP (Mt) Indicated WA 0.40 – 11.25 24,182 46.1% 8.3 92.2 WA 0.40 – 11.25 2,627 46.0% 8.2 9.