Turnstone Resources Ltd · ASX:TSR
Turnstone Resources — South Harz Potash — Investor Presentation (March 2023)
23 slides from Turnstone Resources's investor presentation, March 2023
Slide 1: Building a world-class potash business
SOUTH HARZ POTASH LTD. Building a world-class potash business ASX:SHP March 2023
Slide 2: Disclaimer
Disclaimer Forward looking and Competent Person’s statements This presentation has been prepared by South Harz Potash Limited (“South Harz Potash”, “SHP”, “The Company”). The information contained herein is a professional opinion only and is provided in good faith. Certain information has been deriv
Slide 3: South Harz Potash
South Harz Potash Building the MOP business of choice for European markets and beyond 1. WORLD-CLASS PROJECT 5.3 billion $ tonnes1 ATTRIBUTES LARGE MINERAL COMPELLING TIER-1 ENDOWMENT ECONOMICS SCALE 2. PREMIER POTASH LOCATION DEEP POTASH REGIONAL DEVELOPED MINING HISTORY EXPERTISE INFRASTRUCTURE 3.
Slide 4: 1. World-class project attributes
1. World-class project attributes Large, high-quality mineral endowment 5.3 OF HIGH–QUALITY JORC MINERAL RESOURCE WITH 89% OF OHMGEBIRGE SYLVINITE SEAM IN Ohmgebirge Bt THE INDICATED CATEGORY1 1 2 568Mt 659km Muhlausen – CONTAINED K2O IN THE HISTORIC Nohra AT SHALLOW 2 HEART OF POTASH DEPTH ACROSS C
Slide 5: 1. World-class project attributes
1. World-class project attributes Large, high-quality mineral endowment 5.3 Bt HIGH–QUALITY TOTAL RESOURCE WITH JORC MINERAL RESOURCE WITH 568Mt 89% OF OHMGEBIRGE SYLVINITE Ohmgebirge SEAM IN THE 1 2 CONTAINED K2O AT SHALLOW DEPTH INDICATED CATEGORY1 Muhlausen – Nohra ▪ Land area covering 659km2 in
Slide 6: 1. World-class project attributes
1. World-class project attributes Ohmgebirge Scoping Study (1Mtpa MOP) evidences compelling project economics KEY OHMGEBIRGE PARAMETERS (+/- 30%)1 US$385/t US$1,279 Ore throughput Mtpa ROM 4.5 Weighted average MOP Post-tax NPV8% Initial life-of-mine Years 21 FOB price (real basis, ungeared) K2O head
Slide 7: 1. World-class project attributes
1. World-class project attributes Tier-1 scale with modular expansion potential ▪ Resource size directly comparable to BHP’s Operator Jansen project ▪ Very high proportion of Sylvinite ore Ownership 100% 100% 100% 100% ▪ Resource grades equivalent to Highfield’s Country Germany Morocco Spain Canada
Slide 8: 2. Premier potash location
2. Premier potash location Safe, stable jurisdiction with a deep MOP and salt mining history SOCIAL LICENCE TO 1 Ohmgebirge 2 Muhlausen–Nohra (North) OPERATE Supportive regional government and community, pro job creation 1 2 ▪ Region with a proud century-long history in potash mining and a positive
Slide 9: 2. Premier potash location
2. Premier potash location Regional production expertise, well understood geology and chemistry Kali+Salz AG Global chemical group and largest supplier of potash in Europe ▪ Underground MOP mines producing 3.2mtpa across 3 separate operations in Germany and proximate to South Harz ▪ Werra Mines the
Slide 10: 2. Premier potash location
2. Premier potash location Well developed local infrastructure SITE SELECTION WELL ADVANCED Potential zones include a brownfield site offering significant cost advantages ▪ Modern, maintained state and federal roads linked to national roads connecting to regional and trans-regional railway networks
Slide 11: 3. Low-risk, low-impact approach
3. Low-risk, low-impact approach Optimum access to Europe and the global seaborne market ▪ Located IN THE MIDDLE of the central European Ohmgebirge Project agricultural market Port of Rotterdam (NL) Port of Bremerhaven ▪ Small relative transport distances deliver low-carbon Port of Hamburg logistics
Slide 12: 3. Low-risk, low-impact approach
3. Low-risk, low-impact approach Conventional mining and processing route for low technical risk CONVENTIONAL COLD LEACH AND HOT CRYSTALLISATION BLOCK FLOW DIAGRAM OF PROCESS ROUTE ▪ Utilising established regional potash mining and processing practices Underground Crushing, screening mining of raw R
Slide 13: 3. Low-risk, low-impact approach
3. Low-risk, low-impact approach Unwavering commitment to low impact mining practices ▪ Environmentally and socially responsible process route selected eliminating waste brine and minimising solid waste ▪ Environmental Impact Assessment (EIA) underway – identification and evaluation of environmental
Slide 14: 4. Clear delivery pathway
4. Clear delivery pathway High calibre team with significant potash mine development experience Ian Farmer Non-Executive Chairman Dr Reinout Koopmans Non-Executive Director Rory Luff Non-Executive Director Luis da Silva Lawrence Berthelet Len Jubber Managing Director and CEO Chief Operating Officer
Slide 15: 4. Clear delivery pathway
4. Clear delivery pathway Ticking development milestones RECENTLY DELIVERED MILESTONES: EVALUATION ▪ Küllstedt and Gräfentonna exploration licence extensions ▪ Detailed initial scoping work complete ▪ Ohmgebirge identified as standout starter project with fast, granted by Thuringian mining authority
Slide 16: 4. Clear delivery pathway
4. Clear delivery pathway Parallel advancement of detailed studies and EIA H1 CY23 H2 CY23 H1 CY24 H2 CY24 H1 CY25 H2 CY25 H1 CY26 H2 CY26 H1 CY27 Site selection Pre-Feasibility Study Environmental Study (EIA) Definitive Feasibility Study Project Permitting Project construction Target development sc
Slide 17: 4. Clear delivery pathway
4. Clear delivery pathway Leveraged to continued strong MOP pricing and positioned to fill European supply shortfall Standard MOP NW Europe (fob, nominal) US$/t 1,000 NW Europe CY22 average price 800 >US$800/t 600 STRONG UPSIDE LEVERAGE TO A REBASED 400 EUROPEAN MOP PRICE ENVIRONMENT ▪ Europe has be
Slide 18: Compelling investment proposition
Compelling investment proposition Positioned to become Europe’s MOP supplier of choice ▪ Very large, robust grade potash resource of 5,281Mt at 10.8% K2O MARKET ▪ Tier 1 location with existing infrastructure and a long history of potash mining in the immediate CAPITALISATION1,2 South Harz region wit
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Slide 20: Mineral Resources estimates
Mineral Resources estimates Licence Area Categorisation Resource (Mt) K2O (%) K2O (Mt) Ohmgebirge Indicated 258 13.5 35 Total Indicated 258 13.5 35 Ebeleben Inferred 577 12.1 69 Mühlhausen-Nohra-Elende Inferred 1,698 9.7 165 Mühlhausen-Keula Inferred 1,130 11.1 125 Küllstedt Inferred 1,538 10.7 165
Slide 21: Permitting overview
Permitting overview Positioned to become Europe’s MOP supplier of choice Phase Detail and authority Step 1: Site ▪ Determines whether project can be implemented in a spatially, socially and environmentally compatible manner at the planned location ▪ Applies for projects with significant impact on de
Slide 22: Development funding
Development funding Multiple comparable precedents1 TSX/LSE LISTED BRAZILIAN ASX LISTED ERITREA ASX/LSE LISTED BOSNIAN ASX LISTED SPANISH NICKEL PROJECT POTASH PROJECT (50%) SILVER/ZINC PROJECT POTASH PROJECT DEVELOPMENT STAGE DEVELOPMENT STAGE CONSTRUCTION STAGE DEVELOPMENT STAGE ▪ PEA/SS completed
Slide 23: A large, growing MOP market
A large, growing MOP market Slow supply response from geopolitical tension and strong agricultural demand MOP SOP MURIATE OF POTASH SULPHATE OF POTASH VS MOP SOP GLOBAL POTASH DEMAND 60% K2O EQUIVALENT 52% K2O EQUIVALENT IS DOMINATED BY MOP ▪ Potassium chloride ▪ Potassium sulphate ▪ Large, well str
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