Brazil Potash Corp. · AMEX:GRO
Brazil Potash — Investor Presentation (July 2023)
25 slides from Brazil Potash's investor presentation, July 2023
Slide 1: A World-Class Investment in Food Security
Apresentação da marca 1 potassio_logo_final_traco_negativo_cmyk.aiActionspotassio_logo_final_trac o_negativo_rgb.pngActions A World-Class Investment in Food Security Corporate Presentation Winter 2023
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Brazil Potash Inc. (“Brazil Potash”, “Potassio do Brasil”, “BPC” or the “Company”). The Company is a pre-revenue development stage company. It does not purport to contain all the information that a prospective investor may require in connection with
Slide 3: An Asset of Global Food Security Significance Located in Brazil
An Asset of Global Food Security Significance Located in Brazil Strong fundamentals for potash global market 1 ▪ Long-term demand driven by population growth, increasing caloric consumption, finite amount of land, and nutrient depletion in soils ▪ Concentrated supply-side with strong price support a
Slide 4: Highlights by The Numbers
Highlights by The Numbers 2nd Largest Consumer Import Dependent Supply Security Brazil Market ~20% >95% 102 Days of global consumption of Brazil’s potash Reduction in delivery stems from Brazil demand is imported time to Brazil farms Production at Scale Low Cost ~86% lower Low Capital Intensity2 Ope
Slide 5: Strong Management in Sustainability: Track Record
Strong Management in Sustainability: Track Record Environmental Avoided Emissions from Significant Emissions Savings Support Brazil Decarbonization Displaced Imports Brazil Potash is predominantly using electricity ~77% generated by renewables Reforestation Established seed nursery for reforestation
Slide 6: Potash Fundamentals: A key commodity to sustain the future
Potash Fundamentals: A key commodity to sustain the future • Potash 101: An essential nutrient with the lowest environmental footprint • Demand Drivers: Crop area & yields need to rise, increasing the need for potash • Global Supply & Demand: A large, growing and structurally attractive market • Sup
Slide 7: There Are Primary Nutrients: Potash Is The Most Sustainable
There Are 3 Primary Nutrients: Potash Is The Most Sustainable Agronomic Benefits: Potash is the name for minerals that help provide potassium for plant growth Nitrogen (N) ▪ Essential to formation of 90-95% of Potash is used as fertilizer to improve crop resiliency protein, the most and root strengt
Slide 8: Crop Area & Yields Need to Rise Increasing The Need for Potash
Crop Area & Yields Need to Rise Increasing The Need for Potash Growing Population Increasing Calorie Consumption Requires More Global Crop Production Population set to reach 9B people by 2045 Calorie consumption increases with income Crop production must increase to meet per capita growing populatio
Slide 9: Potash Is A Large, Growing Market With A Concentrated Supply Side
Potash Is A Large, Growing Market With A Concentrated Supply Side Expected Long term Potash Demand Global Potash Supply Profile Million Tonnes of KCl (Mt) 2020-2045 CAGR Million Tonnes (Mt) % of Global KCl Exports 28 26 South Row 3% 3.7% 24 America Chile 1% 22 Rest of Asia 2.9% 20 Jordan 4% 18 East
Slide 10: Zoom-In on Brazil: The #1 Global Potash Importer
Zoom-In on Brazil: The #1 Global Potash Importer • Brazil is the largest global importer of potash with nearly no domestic production • Brazil’s economy is heavily reliant on agri-business & the world is heavily reliant on Brazil • Pricing: Brazil Is one of the most valuable markets for potash produ
Slide 11: The World Is Heavily Reliant on Brazil for Agricultural Production
The World Is Heavily Reliant on Brazil for Agricultural Production World is Reliant on Brazil Agriculture Brazil Produces Daily Consumables Availability of Arable Land Hectares (Millions) Exports in 2020/2021 400 Orange Juice 74% 1st 350 3.8x Growth Potential Coffee 32% 1st 303 300 269 Soybeans 50%
Slide 12: Brazil Is The Largest Global Importer of Potash
Brazil Is The Largest Global Importer of Potash Highlights Brazilian MOP Imports by Source (2021) % Other Germany 4% 2 Second largest potash market globally 9% ▪ >80% of global consumption Canada is met by imports2 Israel 33% >95% reliant on imports for supply of Potash (MOP) 7% ▪ 80% of global impo
Slide 13: Brazil is Vulnerable: National Fertilizer Plan Launched March 2022
Brazil is Vulnerable: National Fertilizer Plan Launched March 2022 National Fertilizer Plan - Highlights Infrastructure Investment Intended to reduce dependence on Governance and Logistics Attraction imports from 85% to 45% by 20501 and National Integration and with new International Relations marke
Slide 14: Brazil is Perhaps The Most Valuable Market
Brazil is Perhaps The Most Valuable Market Benchmark Prices, USD/tonne 1400 1200 1000 800 600 400 200 0 2018 2019 2020 2021 2022 2023 Vancouver Spot, MOP Standard FOB Brazil Spot, MOP Granular CFR China Contract, MOP Standard CFR Brazil is a spot market and key global benchmark ▪ Brazil is a fragmen
Slide 15: Brazil Potash has a strategic asset with defensible cost advantage
Brazil Potash has a strategic asset with defensible cost advantage • Well advanced project to near construction-ready state • Experienced management team backed by prominent local shareholders • Leading potash producers are rewarded with >8x EBITDA multiples Slides 16-23
Slide 16: Sustainable Potash Project with Attractive Financial Returns
Sustainable Potash Project with Attractive Financial Returns Project well advanced to near construction ready state Project By The Numbers ▪ >US$230M raised to date for project development Estimated Reserve Project 23 Years ▪ Feasibility study and environmental & social impact assessments Life(1) co
Slide 17: Construction on Cattle Land Minimizes Impacted Trees
Construction on Cattle Land Minimizes Impacted Trees Current status of land – primary deforestation occurred decades ago by prior land owners Future vision – underground mine with minimal surface footprint Mine Shafts (2) Processing Plant Road to port 17
Slide 18: Experienced Management Team and Sophisticated Shareholder Base
Experienced Management Team and Sophisticated Shareholder Base Select Executive Team Members Shareholder Base Matt Simpson, CEO & Director 15% ▪ Former General Manager Mine at Rio Tinto’s of Canada managing over $300M/y spend, all operations, maintenance and technical people to safely move >70 Mtpa
Slide 19: Strategic Value: Delivered Cost Advantage
Strategic Value: Delivered Cost Advantage Illustrative Brazilian Cost Curve1 Brazil Expenses Inland Transportation Port Costs Ocean Freight Transport to FOB Royalties Production Brazilian Potash 20% 40% 60% 80% 100% Demand Autazes anticipated to have the most competitive tonnes to market and signifi
Slide 20: Leading Potash Producers Are Rewarded with >8x EBITDA Multiples
Leading Potash Producers Are Rewarded with >8x EBITDA Multiples EBITDA Scenarios(1) EV/EBITDA Comparables (US $M) (As at March 29, 2022) 11,9x 12 2023E 11 10,1x Upside Case(3) >$1.5B 10 CFR Brazil 9,5x US$800/t KCl 9 8 8.2x 7,5x 7,0x 7 5,9x 5,7x 6 Base Case(2) ~$1B 5 CFR Brazil ~US$506/t KCl 4 3 ~$3
Slide 21: Enabling Supply Security with Shorter Supply Chain
Enabling Supply Security with Shorter Supply Chain A shorter supply chain means shorter delivery times The total transit time1 when purchased from Brazil Potash could be 20x shorter Primary Global Potash Routes Illustrative 2030s Cost Curve Autazes Production Costs Transport to FOB Associated with O
Slide 22: Enabling Supply Security by Being Closer to The Customer
Enabling Supply Security by Being Closer to The Customer Brazil Potash typically has a more efficient and shorter inland path to customers than importers Autazes is located only 8km from the Madeira River enabling efficient and reliable transportation to trucks that take product inland to key agricu
Slide 23: Autazes Project Detail: Milestone Schedule
Autazes Project Detail: Milestone Schedule Key Permits to Start of Operation Current Status Preliminary License (LP) Installation License (LI) Operational License (LO)2 Obtained In Progress Future ▪ Location, social and environmental ▪ Provides authorization to initiate construction ▪ Grant of Minin
Slide 24: Brazil Potash is a Compelling Investment Opportunity
Brazil Potash is a Compelling Investment Opportunity Food Security Brazil is the largest net exporter of food1, has the world’s largest amount of land & freshwater A domestic, in-market source of potash helps secure agricultural output and mitigate risk of global food and supply shocks Economics Bra
Slide 25: Thank You
Thank You 198 Davenport Road, Toronto ON, Canada www.brazilpotash.com