SOPerior Fertilizer Corp. · OTC:POTRF
SOPerior Fertilizer — Investor Presentation (November 2018)
26 slides from SOPerior Fertilizer's investor presentation, November 2018
Slide 1: Blawn Mountain, Utah
Blawn Mountain UTAH Nov 2018 FERTILIZER CORP.
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements in this presentation may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Potash Ridge Corporation (the "Corporation"), or in
Slide 3: About Us
ABOUT US SOPerior is bringing a large scale potassium sulphate (SOP) fertilizer projects into production at Blawn Mountain, Utah, USA TSX:SOP TSX:PRK 3
Slide 4: Potassium Sulphate: Two Macronutrients in One
POTASSIUM SULPHATE: Two Macronutrients in One ALUNITE Nitrogen Sulphur Phosphate Calcium CRUSHING & GRINDING Potassium Magnesium CALCINATION SO2 ACID PLANT SUPHURIC ACID Potassium Sulphate (SOP) K2SO4 WATER LEACH Low chloride, high Sulphur Significant benefits for fruits, vegetables, nuts Improves y
Slide 5: SOP: superior product with attractive market
SOP: superior product with attractive market SOP (K2SO4) MOP (KCI) Significant benefits over MOP for fruits, vegetables, Primarily for corn and grain crops that can withstand nuts, potatoes, tobacco – many other high value crops chloride Global market 5 million tpy, with potential market Global mark
Slide 6: Potassium Sulphate Eliminates Chloride Damage (SOP vs MOP)
POTASSIUM SULPHATE ELIMINATES CHLORIDE DAMAGE (SOP vs MOP) Clemson University, The Australian and New Zealand Field Peach and grape leaves suffering salt (chloride) damage Guide to Diseases, Pests and Disorders of Grapes 6
Slide 7: Potassium Application Improves Yield and Quality – Impact on Tomatoes
POTASSIUM APPLICATION IMPROVES YIELD AND QUALITY – IMPACT ON TOMATOES 100lb/acre 200lb/acre 300lb/acre University of Florida: Comparison of Potassium Sources and Rates For Tomato Production in Florida 7
Slide 8: Potassium Sulphate Improves Yield and Quality
POTASSIUM SULPHATE IMPROVES YIELD AND QUALITY Which one are you buying? 8
Slide 9: Sources of Potassium Sulphate
SOURCES OF POTASSIUM SULPHATE CHEMICAL REACTION: Mannheim Process SOP 85% of all SOP produced uses Mannheim Process Used in Asia, Middle East and Europe Soluble and granular form MINERAL PROCESSING: Alunite SOP Proven process BLAWN MOUNTAIN Soluble and granular form (Utah) EVAPORATION: Salt Lake SOP
Slide 10: SOP: Superior Product with Attractive Market Dynamics
SOP: SUPERIOR PRODUCT WITH ATTRACTIVE MARKET DYNAMICS SOP: A top performing commodity in last 5 years $US/ton 800.0 SOP1 MOP2 700.0 600.0 500.0 SOP price influenced by high-value crop economics not MOP price 400.0 300.0 200.0 100.0 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 SER
Slide 11: SOP Consumption Matches Local Available Production
SOP CONSUMPTION MATCHES LOCAL AVAILABLE PRODUCTION North America is Under-served 000’s tonnes 5000 4500 North American SOP Market 4000 Current Production: 400,000 tonnes/year 3500 Current Consumption: 500,000 tonnes/year 3000 Projected demand: 1,000,000 tonnes/year 2500 2000 1500 1000 500 0 North A.
Slide 12: Strategically Located to Serve SOP-Demanding Crops
STRATEGICALLY LOCATED TO SERVE SOP-DEMANDING CROPS Almonds Citrus Grapes Vegetables Apples Potatoes Lettuce Blawn Mountain Tobacco Alunite Mining 12
Slide 13: Our Goal Is to Become the SOP Market Leader in North America
OUR GOAL IS TO BECOME THE SOP MARKET LEADER IN NORTH AMERICA • SOP is highly sought after premium fertilizer • 1.5 million tonnes of unmet global demand • Includes 500k tonnes of unmet demand in North America Value • Only one existing producer North America Proposition • Blawn Mountain Project – pot
Slide 14: Blawn Mountain Projects Overview
Projects Overview Blawn Mountain (Utah) • Alunite Mining Salt Lake City • 230,000 tpy of SOP (downscaled 1st stage) • 645,000 tpy potential • Lowest cost producer in North America (US $177/ton) • < 3 years to production • $456 million CAPEX • US $107 million annual cashflow • NPV (after tax 10%) US
Slide 15: Utah
Utah Salt Lake City Blawn Mtn TSX:PRK
Slide 16: Blawn Mountain Project: Alunite - SOP and Alumina Source
BLAWN MOUNTAIN PROJECT : Alunite - SOP and Alumina source o Alunite : KAl3(SO4)2(OH)6 oGeologic characterization : Altered Volcanic Tuff oAlunite mineralization along ridge tops oHost tuff thickness over 1000 ft o Very rare to find such a large formation on surface Altered Volcanic Tuff oBlawn Mtn A
Slide 17: Blawn Mountain Project (Utah)
BLAWN MOUNTAIN PROJECT (UTAH) 1 Area 2 Mining Zone 2 Processing Plant Location 3 Access Road 4 Area 1 Mining Zone 5 Ore Test Pit 4 5 3 • 100% state-owned land 2 • Strong state government and local support 1 • All necessary infrastructure nearby (1) Fraser Institute, 2016 TSX:SOP TSX:PRK 17
Slide 18: Reserves and Mine Life
RESERVES AND MINE LIFE Drilling work to date Drilling to date has has established focused only on 26+ million tons of SOP two of the four – calculated by Reserve Category areas within the independent engineer (Norwest) 15,400 acre land NI 43-101 position Proven Probable Mineral Reserves by Category
Slide 19: Industry Proven Process Flowsheet
INDUSTRY PROVEN PROCESS FLOWSHEET Common industry accepted mining & processing techniques • Mining operations will use a conventional open-pit, truck and shovel mining approach. ALUNITE • Flowsheet similar to commercial-scale production processes historically used in US and Australia • Extensive tes
Slide 20: Permitting Essentially Completed
PERMITTING ESSENTIALLY COMPLETED The following table identifies the major permits and approvals that the Corporation has or still needs to obtain prior to construction: PERMIT/APPROVAL ISSUING AGENCY COMPLETED Exploration Permit Utah Division of Oil, Gas and Mining October, 2011 US Army Corps of Eng
Slide 21: Blawn Mountain Project (Utah) Economics
BLAWN MOUNTAIN PROJECT (UTAH) ECONOMICS Prefeasibility Study completed by Norwest in December 2013 Initial project design capacity was 645,000 tpy SOP , 1.4M tpy sulfuric acid Scaled down project $1.124 B Capital cost 230,000 tpy SOP IRRat 20.5% NPV10at $1.0 B PFS Economic Summary (US$) $221M/yr cas
Slide 22: Blawn Mountain Project: What about the Alumina?
BLAWN MOUNTAIN PROJECT : What about the Alumina? oTailings include 19.4 million tons of measured & indicated alumina resources over life of mine o Not valued in NPV o Metallurgical testing to be undertaken to assess potential as: o Bauxite substitute, oRequires gamma phase alumina (600C calcining te
Slide 23: Blawn Mountain Project Highlights
BLAWN MOUNTAIN PROJECT HIGHLIGHTS o Will be lowest cost producer in North America o Focused on serving California market with soluble SOP o Initial production rate of 255,000 tons per year o 46+ years proven + probable reserves o Permits and water rights secured o Off-take for sulphuric acid byprodu
Slide 24: Experienced and Proven Management
EXPERIENCED AND PROVEN MANAGEMENT ANDREW SQUIRES Chief Executive Officer Mr. Squires brings over three decades of international resource development experience in the energy and natural resources industries. In this time, he has established a proven history of success in creating strong management t
Slide 25: Board of Directors
BOARD OF DIRECTORS • BRUCE DUNCAN Chairman Mr. Duncan has over thirty years experience in the capital markets and brokerage industry, including eight years with Gordon Capital Corporation. Mr. Duncan is currently the President of West Oak Capital Partners Inc., which provides strategic advisory serv
Slide 26: SOPerior Fertilizer Corp. contact
SOPerior Fertilizer Corp. 10 King Street East, Suite 300 Toronto, Ontario 416.362.8640 www.sopfertilizer.com TSX:SOP
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