Turnstone Resources Ltd · ASX:TSR
Turnstone Resources — Davenport Resources — Investor Presentation (September 2020)
28 slides from Turnstone Resources's investor presentation, September 2020
Slide 1: Corporate Presentation September 2020
Corporate Presentation September 2020 WESTERN EUROPE’S LARGEST POTASH INVENTORY © Davenport Resources Ltd. www.davenportresources.com.au
Slide 2: Disclaimer
DISCLAIMER Davenport Resources Limited (“Davenport”, “DAV”, “The Company”) has issued this Presentation for informational purposes only. It is not intended to, and does not, constitute specific advice to any particular party or person. The information in this presentation is based on publicly availa
Slide 3: Davenport Resources - A Compelling Investment Case
DAVENPORT RESOURCES - A COMPELLING INVESTMENT CASE • Massive resources across four potash projects in Germany, largest in Western Europe, 5.3 billion tonnes containing 567 Mt K2O in areas adjacent to historic potash mines. • Davenport holds perpetual mining licences & results from over 300 explorati
Slide 4: South Harz: A Significant Historic Potash Mining Area in Germany
SOUTH HARZ: A SIGNIFICANT HISTORIC POTASH MINING AREA IN THE HEART OF GERMANY South Harz Region in Thuringia, Germany • South Harz region has a long history of potash mining • 180 Mt potash has been mined since the 1890’s. There is a high understanding of mining these deposits, hence low risk. • Pot
Slide 5: Attractive Portfolio with Total of 5.3Bt of Resource
ATTRACTIVE PORTFOLIO WITH TOTAL OF 5.3Bt OF RESOURCE • Total of JORC Inferred Resources of over 5.3 billion tonnes containing 567 Mt K2O across 4 projects 2 1 • Four stand-alone projects identified: Nohra Elende (1), Ohmgebirge (2), Mühlhausen-Keula (3), Ebeleben (4) • Two exploration targets: Külls
Slide 6: Ohmgebirge - A Potential Starter Project
OHMGEBIRGE - A POTENTIAL STARTER-PROJECT Resource Production NPV Opex Capex Mineralisation IRR Potential size (Mt) Kt/a Potential Target Target Scoping Study 500 MOP LOW OHMGEBIRGE ✔️ ✔️ 325 42 Mt K2O (grading 9.8% to 14.0% 1000 MOP ✔️✔️ ✔️✔️ LOW V.LOW K2O) at relatively shallow depth. Scoping Study
Slide 7: Ohmgebirge Licence Area
OHMGEBIRGE LICENCE AREA • Ohmgebirge scoping study supports potential for low- • Historic drilling records reduce exploration risk and cost, low mining and processing risk, long-life project facilitate faster timetable • Shallow depth of resource, access to bulk samples and • Confirmatory drilling t
Slide 8: Nohra-Elende and Mühlhausen-Keula Specialty Fertiliser Potential
NOHRA-ELENDE AND MÜHLHAUSEN-KEULA PROJECTS WITH POTENTIAL FOR PREMIUM SPECIALTY FERTILISER PRODUCTS • Mineralisation of the potash deposits in Germany • These premium products have been the basis of K+S’ is unique in the world specialty fertilizer product strategy from its German mining operations •
Slide 9: Competitive Target Operating Conditions Compared to Global Peers
COMPETITIVE TARGET OPERATING CONDITIONS COMPARED TO GLOBAL PEERS Davenport’s aspirational position on the potash cost curve Reasons for Low Opex 250 • High labour cost in Germany typically offset by higher productivity 200 • Wage costs in the area competitive due to low level of economic activity 15
Slide 10: Strong Competitive Position Relative to Belarusian and Russian Operators
STRONG COMPETITIVE POSITION RELATIVE TO BELARUSIAN AND RUSSIAN OPERATORS Target costs per tonne MOP for France and Germany, US$ Perm V’grad S’gorsk DAV Mine Gate 46 80 56 Rail to port 48 50 50 Sub-Total 94 130 106 Perm EU Tariff 16 16 16 ZERO Rail to 16 16 16 Soligorsk Depot South Harz Volgograd Del
Slide 11: Proximity to Western European End Markets
PROXIMITY TO WESTERN EUROPEAN END MARKETS: SIGNIFICANT NET IMPORTS OF POTASH Global Potash Production and Sales 22.4Mt 12.2Mt 10.7Mt Current production is heavily 16.8Mt concentrated in Canada, 5Mt 2.7Mt 7.5Mt Belarus and Russia 11.2Mt 3.8Mt Western Europe remains a 5.7Mt 7Mt significant net importe
Slide 12: Attractive Near-Term Catalysts for Davenport's Stock
ATTRACTIVE NEAR-TERM CATALYSTS FOR DAVENPORT’S STOCK Months following Funding Next Steps Timeline subject to funding 0 5 10 15 20 DRILLING Preparation for drilling Conduct drilling Assay Drill 2 holes to upgrade resource in Ohmgebirge area Resource upgrade Release preliminary studies Feasibility SOW
Slide 13: Current Potash Development Projects
CURRENT POTASH DEVELOPMENT PROJECTS Company Davenport Emmerson** Highfield*** Location Germany Morocco Spain M&I Resource - 375 Mt 266 Mt Inferred Resource 5.3 Bt 162 Mt 150 Mt Grade % K2O 10.8* 9.2 13.0 Status Exploration Exploration Post-DFS Output ktpa MOP 1000 810 500 Capex, US$m Competitive 406
Slide 14: What Makes a Tier One Asset?
WHAT MAKES A TIER ONE ASSET ? Source: Mining News October 2019 How does Davenport measure up? Size and Quality – DAV cumulative growth potential Sustainable consumption growth – Solid LT market fundamentals Expansion opportunities, flexibility – Bite size modular growth options Barriers to entry – R
Slide 15: A Compelling European Potash Opportunity
A COMPELLING EUROPEAN POTASH OPPORTUNITY Davenport’s potash strategy presents a compelling investment opportunity as the growing world population demands an increasing amount of high-quality food products 5.3Bt JORC Resources supports long-life Tier One potential in historic potash projects region 5
Slide 16: Investor & Media Enquiries
16 INVESTOR & MEDIA ENQUIRIES Dr Chris Gilchrist - Managing Director Nathan Ryan Davenport Resources Ltd NWR Communications +353 41 988 3409 +61 420 582 887 [email protected] [email protected] © Davenport Resources Ltd. www.davenportresources.com.au 16 www.daven
Slide 17: Appendix
Appendix © Davenport Resources Ltd. www.davenportresources.com.au 17
Slide 18: Potash: A Key Source of Primary Nutrient Potassium
POTASH: A KEY SOURCE OF PRIMARY NEUTRIENT POTASSIUM (K) Potassium (K) Potassium, Nitrogen and Phosphate essential for plant • Improves plant’s durability and resistance to drought, disease, weeds, parasites and cold growth weather • Potassium is severely lacking in many countries’ H2O O2 + CO2 soil
Slide 19: Food Supply Faces Two Significant Global Issues
FOOD SUPPLY FACES TWO SIGNIFICANT GLOBAL ISSUES POPULATION GROWTH LAND AVAILABILITY The world’s population is set to increase to 9 Arable land per person continues to dramatically billion by 2050, massively increasing food demand decrease as food demand increases 4,500 2,400 1,800 1960 2005 2050 Pot
Slide 20: Fundamentals Will Drive Volume and Price Growth
FUNDAMENTALS WILL DRIVE VOLUME AND PRICE GROWTH Global MOP demand is expected to increase Prices are forecast to rise over the next ten years. steadily to 88 Mt by 2033 Demand being driven by population increases and Significant growth will be seen from both Europe and changing dietary demands nearb
Slide 21: Davenport Can Be a Multi-Product Company
DAVENPORT CAN BE A MULTI-PRODUCT COMPANY Possibilities for Value-Add Products using Mineral Suites at Nohra-Elende and Mühlhausen-Keula Mineral Products Value-add products Market Price World Market USD/tonne Mt/annum Sylvinite Standard MOP 25 Chlorides 250 NaCl 50 - 150 350 Carnallite MgCl2 100 4-5
Slide 22: Permitting Expected to Be Fast and Accommodating
PERMITTING EXPECTED TO BE FAST AND ACCOMMODATING Davenport plans to utilise eco-friendly technologies, located on former industrial sites which will facilitate the permitting process in which Davenport has a high level of confidence. Project Description & Regional Planning Preliminary Impact Analysi
Slide 23: Eco-Friendly Technologies Will Address Environmental Challenges
ECO-FRIENDLY TECHNOLOGIES WILL ADDRESS ENVIRONMENTAL CHALLENGES THAT AFFECTED K+S BADLY IN RECENT YEARS German legacy operations resulted in significant salt water pollution of local rivers (waste water disposal) and ground water (injection of waste water) Water ✓ Current German environmental legisl
Slide 24: Favourable Operating Conditions Due to Proximity of Infrastructure
FAVOURABLE OPERATING CONDITIONS DUE TO PROXIMITY OF INFRASTRUCTURE AND AVAILABILITY OF BROWNFIELD SITES • The region was heavily industrialised in GDR times • Utilisation of former industrial sites will reduce capex and facilitate permitting • Much of the original infrastructure remains (roads, rail
Slide 25: Corporate Overview
CORPORATE OVERVIEW CAPITAL STRUCTURE SUBSTANTIAL HOLDERS % Shares on issue 197m Parkway Minerals 17.4% Options 60.4m Delphi Unternehmenberatung AG 8.7% Share price $0.045 Lions Bay Capital Inc 5.2% Market cap (fully diluted) $8.2m Davenport Directors & 11.1% Management A$ Share Price Performance © D
Slide 26: Strong Management Team with Deep Potash Track Record
STRONG MANAGEMENT TEAM WITH DEEP POTASH TRACK RECORD Executive Non Executive Previous experience: Gold Fields, De Beers, Cleveland Potash, Kenmare Resources, South Boulder Mines, Circum Minerals Dr Chris Gilchrist Ian Farmer Managing Director Chairman Previous experience: VP Operations – Allana Pota
Slide 27: Strong Recent Corporate Momentum
STRONG RECENT CORPORATE MOMENTUM Progress to date Near-term milestones ✓ Created JORC Inferred Resource for Ebeleben, Mühlhausen-Küllstedt, Ohmgebirge and Nohra-Elende ✓ Completed scoping studies for Nohra-Elende and Operational Ohmgebirge; concept studies for Mühlhausen-Keula and Ebeleben ✓ Commenc
Slide 28: Total JORC Inferred Resources
TOTAL JORC INFERRED RESOURCES HORIZON TONNAGE (MT) K2O % K2O (MT) EBELEBEN Sylvinite 324 15.6 50 Carnallitite 253 7.5 19 MŰHLHAUSEN KEULA Sylvinite 834 12.1 101 Carnallitite 296 8.2 24 MŰHLHAUSEN NOHRA-ELENDE Sylvinite 101 14.2 14 Carnallitite 1,597 9.4 150 KŰLLSTEDT Sylvinite 333 13.0 43 Carnalliti
Davenport Resources — Investor Presentation (September 2020) on 6ix