Aguia Resources Limited · ASX:AGR
Aguia Resources — Investor Presentation (November 2018)
34 slides from Aguia Resources's investor presentation, Nov 7, 2018
Slide 1: November 2018 Investor Presentation
November 2018 AGUIA Resources Limited ASX: AGR | TSXV: AGRL
Slide 2: Disclaimer
DISCLAIMER This document has been prepared as a summary only, and does not contain all information about Aguia Resources Limited (the “Company”) assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company’s securit
Slide 3: AGUIA: A Brazilian Resource Company
AGUIA: A Brazilian Resource Company Derisked phosphate project advancing towards production Simple open pit with infrastructure in place; rail, road, Manaus Sao Luis power, town, regional fertiliser blenders Approval of Environmental Impact Assessment and granting of Preliminary License (LP) is
Slide 4: Phosphates Forecast More Optimistic
Phosphate Phosphates Forecast More Optimistic Strong, less volatile demand for phosphate globally, a slowdown in new Fertilizer – MAP* CFR Brazil (USD/tonne) capacity into 2022 and supply 550 adjustments (i.e. idling of Mosaic’s Plant City in Dec. 2017) are creating tighter market conditions 500
Slide 5: Brazil Outpaces Global Demand Growth
Brazil Outpaces Global Demand Growth Brazilian Phosphate Demand 7 Brazil is a key driver for global phosphate growth 6 CAGR: 5.7% Demand up >2x since 5 2000 4 Due to increased; 3 Harvested land area Fertilizer application 2 rates 1 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2
Slide 6: Brazil Phosphate Demand by Region
Brazil Phosphate Demand by Region 7 6.5 Million Tonnes North & 6 Northeast 13% 5 4.6 Imports 4 Mt Midwest 39% Midwest Brazil has been the 3 engine of agricultural growth in recent years, but is >1,000 km from major ports Southeast 18% 2 so logistic costs and delays complicate the fertilizer supply c
Slide 7: Domestic Producer Cost Advantage
Domestic Producer Cost Advantage Southern Brazil is 100% reliant on phosphate imports with no new mines planned or under development Aguia has a sustained cost advantage Southern Brazil currently consumes 1.8 Mt of 45 days phosphate imports annually1 from Morocco to Aguia’s production of 300
Slide 8: Brazil's Soil Requires lots of Nutrients
Brazil’s Soil Requires lots of Nutrients Soybean Case Study - 2017/2018 Statistics Increased soybean production driving phosphate demand – since 2000 CAGR 7% with yields up 31% and harvested area up 69% In 2018/19, Brazil expected to overtake US as biggest soybean producer Record harvests remo
Slide 9: Três Estradas Phosphate Project
Why) tt Ay RE DR ESTRADA PHOSPHATE PROJECT
Slide 10: Três Estradas Summary
Três Estradas Summary Located in southern Brazil in the State of Rio Grande Du Sol Open pit phosphate project, BFS completed March 2018, now awaiting permitting Phosphate present in rock as P2O5 and will be concentrated for sale as “rock phosphate” to fertiliser plants. Low CAPEX, existing i
Slide 11: On the Pathway to Production
On the Pathway to Production 1 2 3 Exploration Engineering & Permitting Construction Drilled 28,300 metres increasing BFS complete March 2018 LI allows construction to geologic assurance and commence resource classification Pilot plant tests confirm premium recoveries and concentrate Expec
Slide 12: Três Estradas Phosphate Resource
Três Estradas Phosphate Resource JORC/43-101 compliant resource 36 Mt Measured @ 4.01% P2O5 47 Mt Indicated @ 4.18% P2O5 21.8 Mt Inferred @ 3.67% P2O51 28,300 meters of drilling now complete Pilot plant scale flotation test results confirm excellent recoveries and concentrate grades for
Slide 13: High-Grade Oxide Ore At Surface
High-Grade Oxide Ore At Surface First 4-5 years of production will focus on shallow high-grade oxide (saprolite) in the first 25 to 30 meters from surface Measured and Indicated resource of oxidized material occurring of 5.3 million tonnes grading 8.8% P2O5 with a cut-off grade of 3% P2O5 13
Slide 14: BFS Confirms Robust Economics
BFS Confirms Robust Economics Bankable Feasibility Study for the Três Estradas Project demonstrates the technical and economic viability of the project as a low cost producer of phosrock and calcite Existing infrastructure and proximity to market decrease construction costs and provide a competi
Slide 15: Sensitivity Analysis
Sensitivity Analysis Sensitivity for Pre-tax, Unlevered NPV@5% 400 Nov 2018 BRL:USD exchange rate 360 320 NPV (M USD, Pre-tax) 280 240 200 P2O5 PRICE 160 OPEX CAPEX Saprolite 120 CAPEX Carbonatite Exchange Rate 80 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% -30% Três Estradas BFS released in
Slide 16: Community and Government Outreach
Community and Government Outreach Named a priority development project by the Secretary of Economic Development of the Rio Grande do Sul State Local outreach website launched for Três Estradas project providing information on development plans and positive impact on community – www.projetofosfat
Slide 17: Rio Grande Do Sul Belt Consolidation
Rio Grande Do Sul Belt Consolidation Regional geological map highlighting the Três Estradas and Joca Tavares Satellite Image of the Mato Grande Carbonatite highlighting the auger carbonatites and the exploration targets: Santa Clara, Mato Grande, Porteira drilling program that is currently in progre
Slide 18: Timeline and Key Milestones
Timeline and Key Milestones Três Estradas Project 2016 2017 2018 2019 2020 Future Resource Exploration & Development Drilling to Complete 43-101 Resource Reports Q3 2017 Permitting EIA-RIMA for industrial project Q3 2017 Environmental Permitting1 LP LI LO Q1 2019 Q1 2020 Q4 2020 Engineering Prelimin
Slide 19: Rio Grande Copper Belt
ER BELT
Slide 20: New Zone of Copper Mineralization
New Zone of Copper Mineralization1 BIG RANCH TARGET Aguia has staked 23 tenements, totalling COPPER SOIL 340km2 (34,000 hectares), within the prolific Rio ANOMALY GOSSANS Grande Copper Belt Mineralization is hosted in a 100km long x 60km wide belt with historical production from Iron ANDRADE DEP
Slide 21: Big Ranch: Drilling Underway
Big Ranch: Drilling Underway Chargeability map with anomalies on the northern side of the target, Dipole-Dipole grid lines and planned drill holes. Located along northern edge of Caçapava Granite – The target extends over approximately 6 km and is characterized by significant copper- and-gold-in-s
Slide 22: Exploration advancing at Canhada
Exploration advancing at Canhada Example of copper mineralization at surface on the Canhada Target. Hydrothermally altered volcanic rock with malachite filling fractures in stockwork pattern. Sample grading 4.09% Cu. Copper in soil geochemical grid of the Canhada Target. Located 20km south of Lavr
Slide 23: Experienced Board & Management
Experienced Board & Management Paul Pint, Executive Chairman Ryan Ptolemy, Chief Financial Officer Mr. Pint, is a capital markets professional with over 20 years of Mr. Ptolemy is a Chartered Professional Accountant, Certified General Accountant, experience in senior positions at various financial i
Slide 24: Capital Structure & Financing Activities
Capital Structure & Financing Activities AGR Performance YTD Fully Diluted Equity Ordinary Shares issued 131.5 m Options 9.5 m Warrants 20.3 m Fully Diluted 161.3 m Undiluted Market Cap at A$0.20 $26 m (31 October 2018) Fully Diluted Market Cap at A$0.20 $32 m 52 week range $0.12 - $0.41 Register –
Slide 25: Competent Persons Statement
Competent Persons Statement The Três Estradas Phosphate Project has a current JORC/43-101 compliant mineral resource which includes Measured Resources of 36 Mt grading 4.01% P2O5. Indicated Resources of 47 Mt @ 4.18% P2O5 and Inferred Resources of 21.8 Mt @ 3.67% P2O5. The Lucena Phosphate Project h
Slide 26: Appendix
APPENDIX
Slide 27: Bankable Feasibility Study (BFS)
Bankable Feasibility Study (BFS) 27 SAP – soft ore (saprolite)
Slide 28: Três Estradas Mineral Resource
Três Estradas Mineral Resource Resource Volume Tonnage Density P2O5 as Domain P2O5% Classification (m X 1,000) (T X 1,000 (T/m3) 3 Apatite (%) AMSAP 36 55 1.54 6.63 15.70 CBTSAP 491 796 1.63 10.18 24.11 Measured WMCBT 602 1,686 2.81 4.24 10.03 MCBT 11,619 33,004 2.85 3.85 9.12 MAMP 227 655 2.89 3.72
Slide 29: Key Brazil Mining Permits
Key Brazil Mining Permits • Most challenging permit milestone to obtain License (LP) Preliminary • Entails location, social and environmental approval of the project based on field studies and public hearings • Awarded by the Environmental Protection Agency of the State of Rio Grande do Sul (FEPAM)
Slide 30: Principle Assumptions
Principle Assumptions PhosRock Price Forecast (USD/t - FOB Morocco) 187 172 142 131 131 129 131 132 133 124 127 122 120 116 115 109 96 97 98 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 The Bankable Feasibility Study (BFS) referred to in this present
Slide 31: Três Estradas Phosphate Permits
Três Estradas Phosphate Permits 31
Slide 32: Rio Grande Copper Permits
Rio Grande Copper Permits g Sao Gabriel = | = a * RGP - Copper by Status Application Extension Submited Permit Permit Extension Big Ranch Target 31°S- a. = aa 32
Slide 33: Copper – Supply Deficit Looms
Copper – Supply Deficit Looms 30 Highly Probable Projects 25 Base Case Production Capability 10 million tonne deficit 20 Primary Demand by 2028 Mt 15 10 5 0 1992 1997 2002 2007 2012 2017 2022 2027 Source: Wood Mackenzie, Q4 2014 33
Slide 34: Thank You
A AGUIA THANK YOU
Aguia Resources — Investor Presentation (November 2018) on 6ix