Kore Potash Plc · LSE:KP2
Kore Potash — Investor Presentation (June 2020)
23 slides from Kore Potash's investor presentation, June 2020
Slide 1: Sustainably feeding the world
Sustainably feeding the world June 2020 PRIVATE & CONFIDENTIAL
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) has been prepared and issued by the directors of Kore Potash plc (“Kore” or the "Company" and, together with its subsidiaries, the “Group”). By attending (whether in person or by telephone) or reading the Presentation, you agree to be bound by the co
Slide 3: Introduction
Introduction Kore intends to be the lowest cost supplier of potash to the African and South American markets Kore has globally significant potash deposits in the Republic of Congo (RoC), at highest grade and lowest development cost of any peer in the world District scale development potential, 12km
Slide 4: More potash needed to feed the world
More potash needed to feed the world The world will need to grow 50% more food by 2050 … while global arable land per person is to feed an anticipated population of 9 billion people... declining sharply 0.4 Hectares per person 0.35 0.3 0.25 0.2 0.15 0.1 2004 1960 1964 1968 1972 1976 1980 1984 1988 1
Slide 5: Recent investments by mining majors
Recent investments by mining majors Globally operating mining companies have recently been investing in potash assets BHP Anglo American Jansen Project in Saskatchewan, Canada Purchase of Sirius Minerals for £405m 1000m deep Developing Woodsmith Mine in North Yorkshire Over 1,600km from the Port of
Slide 6: Dougou Extension (DX) Sylvinite project
Dougou Extension (DX) Sylvinite project 6
Slide 7: DX PFS Overview
DX PFS Overview Strong investment case Financing options • IRR of 22.9% (real ungeared post tax) • Modest capex and short construction period • 4.3 year payback period improves financing options • Indicative financing discussions have been Low capital cost positive • Pre-production capex of US$286m
Slide 8: Very low cost of supply into target markets
Very low cost of supply into target markets • Higher grade and shallower deposits than majority of existing potash producers contributes to competitive cost structure • Close proximity to deep water port at Pointe Noire, Republic of Congo means short transport distance in country as well as very sho
Slide 9: Benchmarking DX – high grade, low capex
Benchmarking DX – high grade, low capex Kore Deposits Pre-production assets Selected producers 45 40 Resource Grade KCl % • DX is the highest grade 35 30 undeveloped potash deposit 25 • The closest projects in terms 20 15 of grade are both well over 10 1,000 metres deep 5 0 • High grade contributes
Slide 10: Benchmarking DX – low cost production
Benchmarking DX – low cost production SOP & MOP US$300/t Polyhalite US$250/t US$242/t2 Operating cost FOB local port • DX is highly competitive in US$200/t terms of mine gate and FOB costs US$150/t US$135/t • Lower operating costs than US$115/t US$100/t any comparable project in US$100/t US$87/t dev
Slide 11: Environment and permitting
Environment and permitting DX produces no by-product tailings The Mining Convention for Kola and Dougou mining licence area is in place DX is situated within existing Dougou mining licence Advanced permitting in place – Kore has an approved 25 year ESIA for Kola and Dougou mining licence areas and a
Slide 12: District scale development potential
District scale development potential Kore is developing its globally significant potash deposits in the Republic of Congo (RoC) District scale development potential with over 6 Bt of potash Mineral Resources located 35 km from the coast Several high grade sylvinite projects: DX – High grade solution
Slide 13: Next steps
Next steps The DX PFS has proven that developing DX is both the fastest route to production and a low capex, high return project in its own right The Company intends to progress rapidly to undertaking a Definitive Feasibility Study (DFS) for DX A workplan for the DX DFS is currently being finalised
Slide 14: Summary
RE POTASH Summary FROM THE GROUND UP
Slide 15: Summary
Summary Sustainably feeding Long life at globally Advantageous location the world significant scale • Fertiliser use improves crop yields • Initial life of DX of 18 years at • Close to target markets for farmers, reducing the carbon 400ktpa MoP production • Project adjacent to coast footprint of far
Slide 16: Appendices
: RE POTASH Appendices FROM THE GROUND UP
Slide 17: DX PFS data
DX PFS data Project physicals Units Project financials Units Total MoP production kt 372 Total revenue US$M 3,113 MoP granular product grade %KCl 98.5% Average annual revenue US$M 169 Average MoP production ktpa 393 Average annual EBITDA US$M 118 Capital cost EBITDA margin % 69.8% Pre-production cap
Slide 18: Board of Directors
Board of Directors David Hathorn Chairman Brad Sampson Chief Executive Officer David Hathorn is the ex-CEO of the Mondi Group (30 April 2017). Brad Sampson has more than 25 years resources industry The Mondi Group, is a FTSE 100 global packaging and paper listed experience building and operating lar
Slide 19: Ore Reserves
Ore Reserves DX Sylvinite Ore Reserves (gross 100% basis) Ore Reserves KCl grade Mg Insolubles Classification (Mt) (% KCl) (% Mg) (% Insol.) Probable 17.7 41.7 0.06 0.19 Total Ore Reserves 17.7 41.7 0.06 0.19 Kola Sylvinite Ore Reserves (gross 100% basis) Ore Reserves KCl grade Mg Insolubles Classif
Slide 20: Mineral Resources — Sylvinite
Mineral Resources — Sylvinite Sylvinite deposits (gross 100% basis) Contained KCl Mineral Resource category Million Tonnes Grade KCl % Million tonnes Kola Sylvinite Measured 216 34.9 75 Indicated 292 35.7 104 Sub-total (Measured + Indicated) 508 35.4 180 Inferred 340 34.0 116 TOTAL 848 34.8 295 Doug
Slide 21: Mineral Resources — Carnallite
Mineral Resources — Carnallite Carnallite deposits (gross 100% basis) Contained KCl Mineral Resource category Million Tonnes Grade KCl % Million tonnes Dougou Carnallite Measured 148 20.1 30 Indicated 920 20.7 190 Sub-total (Measured + Indicated) 1,068 20.6 220 Inferred 1,988 20.8 414 TOTAL 3,056 20
Slide 22: Exploration Targets
Exploration Targets The potential quantity and grade of an Exploration Target is conceptual in nature and is an approximation, and is expressed as an expected range of tonnes and grade. There has been insufficient exploration at Kola South and DX North to estimate Mineral Resources and it is uncerta
Slide 23: Corporate snapshot
Corporate snapshot Key shareholders1 KP2 AIM share price / volume2 Shareholder % interest Oman Investment Authority (OIA) 19.74% Sociedad Quimica y Minera (SQM) 19.26% Dingyi Group Investments Ltd 12.91% Harlequin Investments Ltd 7.07% Mr David Stevens 6.72% Kore Board and Management 3.16% Ticker AI