Kropz Plc · LSE:KRPZ
Kropz — Investor Presentation (March 2022)
25 slides from Kropz's investor presentation, March 2022
Slide 1: Kropz Plc - Independent African Phosphate Rock Producer
KROPZ PLC INDEPENDENT AFRICAN PHOSPHATE ROCK PRODUCER Presentation | March 2022 Mark Summers Chief Executive Officer
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS NOT FOR PUBLIC RELEASE OR FOR RELEASE, PUBLICATION OR DISTRIBUTION (IN WHOLE OR IN PART) IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. These prese
Slide 3: Why Kropz?
KROPZ? WHY Phosphate Sub-Saharan Africa Kropz Opportunity § Essential to food production § Expanding population § Elandsfontein being § N P K commissioned § Improving diets § 85% of rock used in fertilizer § Global supply shortage production § Low fertilizer usage § Food demand to triple by 2050 § L
Slide 4: Phosphate Market
PHOSPHATE § Global phosphate rock market – US$30bn by 20301 MARKET § Phosphate rock CAGR of 3.2% forecast1 § Demand driven by fertilizer use § 85% of rock production integrated Robust demand on supply shortages § Major producers expanding downstream § Increases in production integrated downstream §
Slide 5: Assets
Assets ELANDSFONTEIN, HINDA, REPUBLIC OF CONGO REPUBLIC OF SOUTH AFRICA Near-term cashflow Future organic growth § 1Mtpa phosphate rock mine § One of world’s largest undeveloped phosphate reserves § Currently in ramp-up § Phased approach § Excellent logistics – close proximity to port § Low-cost nat
Slide 6: Our Rock
OUR ROCK § 66-68 BPL concentrate § Low cadmium – meets § Both suitable for phosphoric acid, DAP, current and future EU standards § Low sulphuric acid consumption in phosphoric acid MAP and SSP § MER < 0.1 § Less gypsum produced § Low radioactivity – gypsum meets EU standards 6
Slide 7: Strong freight position
Strong freight position KR@Pz ed
Slide 8: Sustainability development goals
Sustainability development goals We have identified the following UN Sustainable Development Goals as our key focus areas: 8
Slide 9: ESG
ESG COMMITTED TO Direct financial commitment to education in Congo and South Africa Strong community engagement 90% of employees at Elandsfontein from local municipal area 23% female workforce at Elandsfontein Continuous mine site rehabilitation World-class groundwater management 9
Slide 10: Balance Sheet
BALANCE SHEET WELL-FUNDED Cash and cash equivalents of US$ 12 million1 Total assets of US$ 202 million1 Total long term debt of US$ 46 million1 External long term debt of US$ 30 million1 10 1 Figures as at 30 June 2021
Slide 11: Mining at Elandsfontein
§ Free digging, sandy deposit § 15m to 30m ore thickness § Concurrent rehabilitation during mining § 2.2 million tonnes of overburden moved Quantity Grade Contained Resource1,2 (Mt) (%P2O5) P2O5 (Mt) Measured 47.5 10.3 4.9 Indicated 30.3 5.1 1.6 Inferred 23.3 5.5 1.3 Total 101.1 7.7 7.7 Quantity Gra
Slide 12: Processing at Elandsfontein
ELANDSFONTEIN PROCESSING AT § Pilot-scale testwork confirmed flotation recoveries § Robust circuit responds to all ore types § Based on proven Crago process § Plant modifications completed within time and budget § Currently in commissioning and ramp up § Exciting by-product opportunities for ultra-f
Slide 13: Economics - Elandsfontein
§ $170m invested in infrastructure and plant § $30m project finance from BNP Paribas Metric Project Current LOM (potential to 11 years1 extend) Steady-state annual production ±1 Mt1 Phosphate rock concentrate 31% P2O51 Nominal LOM price (FOB) $150/t2 Nominal LOM cash costs (FOB) $80/t1 ECONOMICS ELA
Slide 14: Hinda Project
HINDA PROJECT § Kropz acquired Cominco § Hinda development § 50km from port of Pointe- in 2018 - $40 million started in 2010 by Noire § Previous owners invested Cominco § 15km from national $44 million § 929 holes drilled highway § Kropz has invested a § Laboratory and pilot § Port occupancy and gas
Slide 15: Mining at Hinda
§ Opencast mining, low strip ratio § 300m to 800m wide ore corridor § Two phosphate bearing sedimentary layers up to 65m thick § Phased production of 1Mtpa and 2Mtpa § LOM to >25 years3 Quantity Grade Contained Resource1 (Mt) (%P2O5) P2O5 (Mt) Measured 200.5 11.6 23.3 Indicated 380.9 9.8 37.3 Inferr
Slide 16: Plant design at Hinda
HINDA PLANT DESIGN AT 16
Slide 17: Project location
Project location 17
Slide 18: Feasibility Study - Hinda
FEASIBILITY STUDY HINDA Capital cost - Phase 1 US$ 355 million, Phase 2 US$ 310 million (real, 2021) Peak funding US$ 392 million - Phase 2 funded from Phase 1 Operating cost: Phase 1 US$ 63/t FOB, Phase 2 US$ 70/t LOM EBITDA margin US$ 65/t Three year construction schedule - robust execution strate
Slide 19: Opportunities - Hinda
§ Immediate commencement of Phase 2 delivers nominal IRR of 21.0% and NPV11% of US$ 543 million § Mining model further optimised § Value engineering opportunities investigated § Port; and § Power supply § Engagement with local contractors presented opportunities for capital cost reduction OPPORTUNIT
Slide 20: Hinda infrastructure
Hinda infrastructure Multipurpose terminal at Port of Pointe-Noire RN1 highway from Pointe-Noire to Hinda village 20
Slide 21: The Way Forward
THE WAY FORWARD § Complete Elandsfontein § Complete Hinda fund § Continue engagement commissioning raising with Congolese § Commercialise § Expand value engineering government and other key phosphate rock sales investigations stake holders § Commence early works 21
Slide 22: Thank You
ea ~ THANK YOU www.kropz.com
Slide 23: Corporate structure
Corporate structure 83.0% PARENT COMPANY Kropz Plc (AIM: KRPZ) SUBSIDIARY Kropz Elandsfontein (Pty) Ltd Cominco SA (74%) (90%) PROJECT Elandsfontein Mine Hinda Project ARC Fund ROC Government LOCAL PARTNER (26%) (10%)1 23 1 Subject to 10% potential participation by Republic of Congo Government
Slide 24: Shareholdings and capital structure
Shareholdings and capital structure Shareholders – 7 March 2022 % ARC Fund 83.0 Kropz International 6.0 R&H Trust Company 2.0 THE Hong Investment Holdings 1.7 Management 0.8 Other 6.5 Current capital structure – 7 March 2022 Shares in issue 916.3m Share price 10.25p Market capitalisation GBP94m Cash
Slide 25: Strong board
Strong board Lord Robin Renwick of Clifton, Chairman Linda Beal, Non-executive Director § Former UK ambassador to USA and South Africa § Former partner at PwC § Former Deputy Chairman of JP Morgan Europe § UK chartered accountant for over 30 years § Extensive corporate mining experience § NED on var