Agrimin Limited · ASX:AMN
Agrimin — Shareholder Meeting (November 2022)
25 slides from Agrimin's shareholder meeting presentation, Nov 21, 2022
Slide 1: Annual General Meeting Shareholders Address
Agrimin Limited | ABN 15 122 162 396 ASX Code: AMN 2C Loch Street Nedlands, Western Australia 6009 ASX Release T: +61 8 9389 5363 For personal use only 21 November 2022 E: [email protected] | W: www.agrimin.com.au ANNUAL GENERAL MEETING SHAREHOLDERS ADDRESS Chairperson of the Board, Mr Richard Se
Slide 2: Further information, About Agrimin, Forward-Looking Statements
For further information, please contact: Investors Media For personal use only Mark Savich Michael Vaughan Chief Executive Officer Fivemark Partners T: +61 8 9389 5363 T: +61 422 602 720 E: [email protected] E: [email protected] Or visit our website at www.agrimin.com.au This ASX
Slide 3: Developing a Tier 1 SOP asset to sustain global food production
AGRIMIN LIMITED For personal use only Developing a Tier 1 SOP asset to sustain global food production Annual General Meeting | November 2022 ASX: AMN
Slide 4: Important notices and disclaimers
Important notices and disclaimers Nature of Document Competent Person Statements For personal use only This presentation has been prepared as a summary only, and does not contain all information about Agrimin The information in this presentation that relates to Exploration Results for the Mackay Pot
Slide 5: Agrimin provides unrivaled exposure to potash
Agrimin provides unrivaled exposure to potash For personal use only Developing the world’s leading Sulphate of Potash (SOP) asset Committed to maximising shareholder value Focused on disciplined development and retaining leverage to record potash prices 100% ownership of a Tier 1 asset in WA Mackay
Slide 6: Corporate snapshot
Corporate snapshot Board of Directors For personal use only Capital Structure (21 November 2022) Brad Sampson Richard Seville Mark Savich Alec Pismiris Non-Executive Director Non-Executive Chair CEO & Executive Director Non-Executive Director & Co. Sec. Market cap. Share price (ASX: AMN) Appointed:
Slide 7: SOP prices remain at record highs
SOP prices remain at record highs Global prices support new SOP project developments For personal use only • Current SOP prices are approximately US$1,000/t 5 Year SOP Price History2 • Agrimin’s DFS1 was prepared using a long-term flat 1400 SOP price of US$500/t FOB Wyndham 1200 • Supply constraints
Slide 8: Project highlights
Project highlights A world-class potash project For personal use only Project ownership 100% portfolio Largest SOP development outside of Africa in WA 450ktpa Lowest global forecast total cash cost US$159/t FOB Outstanding DFS results1 $1bn NPV & 21% IRR (post-tax) Binding offtake for 70% of product
Slide 9: Detailed and differentiated feasibility work
Detailed and differentiated feasibility work Over $50m invested to date For personal use only • Industry's most extensive DFS program completed in July 2020, including: – 2 years of long-term trench pumping at 22 representative sites across Lake Mackay – 1½ year pilot evaporation trial on Lake Macka
Slide 10: 2020 DFS highlights
2020 DFS highlights1 Agrimin set to have the world’s lowest SOP production cost For personal use only • Lowest quartile cash costs are driven by: Parameter Value 1. Economies of scale Production rate 450ktpa 2. Brine extraction and gravity flow via trenches Total cash cost US$159/t FOB 3. Consistent
Slide 11: Lake Mackay is a Tier 1 potash deposit
Lake Mackay is a Tier 1 potash deposit A unique potash opportunity For personal use only • 20Mt contained SOP1 = Australia’s largest SOP Ore Reserves for Australian SOP Projects2 Ore Reserve and the world’s largest undeveloped 25 potash-bearing salt lake • 2,815mg/L potassium = high-grade Ore Reserv
Slide 12: Large SOP deposits are very rare
Large SOP deposits are very rare Lake Mackay is a globally strategic asset For personal use only Country Forecast Primary SOP Production Rates of Projects Being Developed1 Company Colluli 472ktpa2 Lake Mackay 450ktpa3 Kumpupintil Lake 407ktpa Lake Sevier 215ktpa2 Lake Way 200ktpa4 Lake Wells 135ktpa
Slide 13: Industry-leading renewables penetration
Industry-leading renewables penetration Supporting the global transition to net zero emissions For personal use only • Site power station has a modelled 84% Scope 1 and 2 Emissions renewable energy penetration rate Site power station1 • Exceptional wind resource with low seasonal variability defined
Slide 14: Efficient and low-cost salt harvesting
Efficient and low-cost salt harvesting Conventional technology to drive industry-low operating costs For personal use only • Raw potash salts to be fed directly to the processing plant via wet harvesters • Wet harvesters will deliver major cost benefits, including: – Powered by reticulated renewable
Slide 15: Lowest cost logistics
Lowest cost logistics Fit-for-purpose and scalable logistics infrastructure For personal use only • Agrimin’s integrated haulage and shiploading solution can deliver the industry’s lowest SOP transportation cost • Road trains will deliver SOP directly from Lake Mackay to a dedicated storage and ship
Slide 16: Innovative haulage solution
Innovative haulage solution Alliance with proven bulk logistics operator For personal use only • Mine-to-port haulage to be provided by Newhaul Bulk, a JV between Agrimin and WA trucking specialist1 • Haulage JV will deliver major cost savings and reduce risk over the Project’s 40-year life • Newhau
Slide 17: Fully integrated port solution
Fully integrated port solution Mine-to-ship logistics chain to minimise handling For personal use only • Port infrastructure to be built on freehold land strategically located at Wyndham Port • SOP will be transported by a fleet of purpose-built road trains to a dedicated storage facility • SOP will
Slide 18: Tier 1 offtake partners
Tier 1 offtake partners Binding long-term offtakes secured for 70% of planned production For personal use only SOP Demand by Region (% of ~7Mt Global Market)2 Agrimin’s Offtake Book1 Europe 17% 115ktpa LatAm & Africa China North 62% 5% Middle America 3% East 150ktpa 50ktpa Southeast China 1% 1% USA
Slide 19: Next steps
Next steps Environmental approval is on the critical path to development For personal use only • Based on statutory guidelines the indicative timeline for environmental approval is early 2023 • Front End Engineering Design works have advanced with multiple work streams underway • Project financing a
Slide 20: Working closely with Traditional Owners
For personal use only Working closely with Traditional Owners A project of both local and national significance • Native Title Agreement with the Kiwirrkurra People, the native title holders of the land at the Mackay Potash Project1 • Extremely strong long-term support from Traditional Owners for th
Slide 21: Strong Indigenous engagement
For personal use only Strong Indigenous engagement Creating value for all stakeholders • Agrimin is committed to creating local jobs and delivering sustainable economic opportunities for Traditional Owners • The Project will create approximately 200 full-time jobs and an additional 800 jobs through
Slide 22: Contact
Contact For personal use only Office contact: 2C Loch Street Nedlands WA 6009, Australia T: +61 8 9389 5363 E: [email protected] ABN 15 122 162 396 Investor relations: Mark Savich Chief Executive Officer T: +61 8 9389 5363 E: [email protected] Media contact: Michael Vaughan Fivemark Partners
Slide 23: Appendix 1. Mineral Resource & Ore Reserve
Appendix 1. Mineral Resource & Ore Reserve Drainable Porosity Mineral Resource Estimate1 (JORC Code 2012) For personal use only Measured & Indicated Resource Aquifer Inferred Total Mineral Resource Measured Indicated Total Zone Volume (Mm3) K (mg/L) SOP (Mt) K (mg/L) SOP (Mt) K (mg/L) SOP (Mt) K (mg
Slide 24: Appendix 2. Information sources – production rates
Appendix 2. Information sources – production rates For personal use only Company Source Source Date Comments Danakali Ltd (ASX: DNK) ASX announcement titled “FEED Completion” 29 January 2018 Production rate of 472ktpa of SOP is based on Module I development (page 2) plan. Module II is expected to co
Slide 25: Appendix 3. Information sources – Ore Reserves
Appendix 3. Information sources – Ore Reserves For personal use only Project / Company Source Source Date Comments Lake Mackay ASX announcement titled “Agrimin to be the 21 July 2020 Total Ore Reserve of 20.0Mt of SOP comprises 3.7Mt in the Proved Agrimin Limited (ASX: AMN) World’s Lowest Cost SOP P