Itafos Inc · TSXV:IFOS
Itafos — Investor Presentation (November 2017)
28 slides from Itafos's investor presentation, November 2017
Slide 1: Corporate Presentation
Corporate Presentation Integrated Producer of Phosphate Based Fertilizers November 2017
Slide 2: Cautionary statements and forward-looking information
Cautionary statements and forward-looking information FORWARD-LOOKING INFORMATION This presentation contains forward-looking information (“FLI”) regarding future events or the future performance of the company (“Itafos”). Generally, FLI can be identified by expressions of belief, expectation or inte
Slide 3: Table of contents
Table of contents 1 Executive Summary 2 Investment Highlights A Appendix: Portfolio Highlights 3
Slide 4: Executive Summary
Executive Summary ITAF@S
Slide 5: Company overview
Company overview Key highlights Shareholder highlights ▪ Itafos is an integrated producer of phosphate based 17% fertilizers and owner of a portfolio of long-term strategic assets including - Itafos-Arraias, an integrated phosphate rock mine 5% and 500kt per year Single Super Phosphate (SSP) operati
Slide 6: Portfolio overview
Portfolio overview Key highlights 31.3% TSXV GBL 100% 100% 100% 100% 100% 100% Itafos-Paris Itafos-Arraias GBL-Farim Itafos-Santana Itafos-Araxá Itafos-Mantaro Hills Operations Project Project Project Project Project Only operational High grade integrated High grade High grade integrated Unique rare
Slide 7: Investment highlights overview
Investment highlights overview Industry leading board of directors and highly experienced 1 management team Solid business fundamentals anchored by Itafos-Arraias, a high 2 quality operating and strategic business located in Brazil Attractive portfolio of 3 long-term and strategic phosphate assets P
Slide 8: Investment Highlights
[2] Investment Highlights ITAF@S
Slide 9: Industry leading board of directors
1 Industry leading board of directors ▪ Partner at Castlelake, responsible for the ▪ Managing Partner at Pala, responsible for firm’s investments in emerging markets the firm’s investments globally ▪ Over 20 years of investment and asset ▪ Over 15 years of investment and asset management experience
Slide 10: Highly experienced management team
1 Highly experienced management team ▪ Senior executive with over 20 years of ▪ Senior executive with over 35 years of hands-on and diverse corporate and fertilizer industry experience business development, mergers and ▪ Previous experience includes Founder and acquisitions, capital raising and inve
Slide 11: Integrated phosphate rock mine and SSP production operation
2 Integrated phosphate rock mine and SSP production operation Key highlights Reserve and resources highlights1 ▪ Producer of SSP (500kt per year) and sulfuric acid Item Tons (Mt) Grade (%) P2O5 (Mt) (210t per year – allows for sale of excess sulfuric acid Reserves 64.8 5.1% 3.3 of 40kt per year) M&I
Slide 12: Located in Brazil, one of the fastest growing fertilizer markets in the world
Located in Brazil, one of the fastest growing fertilizer markets 2 in the world Brazil is a key market for fertilizers Fertilizers have been a key driver of growth ▪ Global leader in export of agricultural products - Sugar at 47%; Soybeans at 42%; Coffee at 27%; 310 262 273 49 Corn at 24% and Beef a
Slide 13: Strategic position in the MAPITOBA region of Central Brazil
2 Strategic position in the MAPITOBA region of Central Brazil Target region Estimated agricultural production by state (Mt) CERRADO – 70% LEGEND 17 Itafos-Arraias 9 7 Yara 14 12 14 5 143 Timac Cibrafertill 20 MA PA Galvani / Yara 96 TO PI Vale 1, 000 Km Anglo Fosfatos 122 1 BA 72 MT Heringer (Idle)
Slide 14: Adds competitive domestic supply to SSP market
2 Adds competitive domestic supply to SSP market SSP domestic SSPcapacity domesticis in capacity coastal /southern Phosphate fertilizer imports have less impact on SSP LEGEND Itafos-Arraias 34% Yara 50% Timac Cibrafertill 89% 100% PA MA Galvani / Yara TO PI Vale 66% 50% Anglo Fosfatos 1, 000 Km 1 BA
Slide 15: Disciplined sales and marketing strategy
2 Disciplined sales and marketing strategy Target region Key highlights Upstream sales strategy LEGEND Itafos-Arraias ▪ Strong relationship with main distributors ensures Blenders minimization of “seasonality” impact FOB Arraias 1 Low risks of credit FOB Uberaba 2 ▪ Focus on a few large customers, p
Slide 16: Actively consolidating positions in high quality phosphate assets
3 Actively consolidating positions in high quality phosphate assets in U.S., Brazil, Peru and Guinea Bissau Manageable development, construction and financing plan ▪ Proven business development model with corporate and local management engaged in front-end planning and execution of new projects ▪ To
Slide 17: Phosphate is a critical nutrient
4 Phosphate is a critical nutrient Why phosphorus? Effect of phosphorus on plant and crop growth ▪ All life forms need the element Phosphorus (P), which is involved in photosynthesis, energy transfer, cell division and enlargement ▪ Important in root formation and growth that improves the quality of
Slide 18: Phosphate supply / demand expected to stabilize in mid-term
4 Phosphate supply / demand expected to stabilize in mid-term Projected 5-year phosphate demand Global supply to be outpaced by demand growth Global Phosphate Capacity Additions and Demand India 2,000 Growth China (Mt P2O5) Europe & FSU 1,500 8% Saudi Arabia 0% Saudi Arabia 2% 1,000 North America 20
Slide 19: Strong balance sheet
5 Strong balance sheet Assets Liabilities & shareholders equity Item US$mn Item US$mn Current assets 15.9 Current liabilities 24.6 Property, plant and equipment 237.8 Debt 2.8 Mineral properties 40.4 Other 21.8 Assets 328.3 Non-current liabilities 14.2 Notes: As at June 30, 2017 Debt 4.4 Other 9.8 L
Slide 20: Near-term and predictable cash flow profile
5 Near-term and predictable cash flow profile Key highlights Key assumptions ▪ Itafos-Arraias operations commenced in July 2017 ▪ Commercial Operations: 2018 first full year ▪ SSP Production: 500kt per year ▪ SSP production of 500kt per year and sulfuric acid net ▪ SSP Sales Price: See price range p
Slide 21: Significant progress made on execution of key business plan milestones
Significant progress made on execution of key business plan 6 milestones Key highlights 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 Completed On-boarded new Increased public Acquired 100% Completing restructuring board of directors float through of Stonegate financing plan to including CCAA and manageme
Slide 22: Appendix: Portfolio Highlights
A Appendix: Portfolio Highlights
Slide 23: Itafos-Arraias
Itafos-Arraias Operations Key highlights Location highlights ▪ The Itafos-Arraias Project is a integrated phosphate rock mine and SSP production facility operating project owned 100% owned by Itafos - Produces SSP to be sold to blenders and farmers PA MA - Located in Tocantins, Brazil on a property
Slide 24: Itafos-Paris Hills
Itafos-Paris Hills Near-term pipeline Key highlights Location highlights ▪ The Itafos-Paris Hills Project is a phosphate rock mine development project owned 100% owned by Itafos - Produces phosphate rock to be sold to producers of phosphate based fertilizers - Located in Idaho, U.S. on a property co
Slide 25: GBL-Farim
GBL-Farim Near-term pipeline Key highlights Location highlights ▪ The GBL-Farim Project is a phosphate rock mine development project owned 100% by GBL - Produces phosphate rock to be sold to producers of phosphate based fertilizers - Located in Farim, Guinea Bissau on a property consisting of approx
Slide 26: Itafos-Santana
Itafos-Santana Mid-term pipeline Key highlights Location highlights ▪ The Itafos-Santana Project is a integrated phosphate rock mine and SSP production facility development project owned 100% owned by Itafos - Produces SSP to be sold to blenders and farmers MA - Located in Para, Brazil on a property
Slide 27: Itafos-Araxá
Itafos-Araxá Mid-term pipeline Key highlights Location highlights ▪ The Itafos-Araxá Project is a rare earth oxide mine development project owned 100% owned by Itafos - Produces rare earth oxides to be sold to blenders and farmers PA MA - Located in Mina Gerais, Brazil on a property PI consisting of
Slide 28: Itafos-Mantaro
Itafos-Mantaro Mid-term pipeline Key highlights Location highlights ▪ The Itafos-Mantaro Project is a phosphate rock mine development project owned 100% owned by Itafos - Produces phosphate rock to be sold to producers of phosphate based fertilizers - Located in Junin, Peru on a property consisting