Kore Potash Plc · LSE:KP2
Kore Potash — Shareholder Meeting (June 2020)
20 slides from Kore Potash's shareholder meeting presentation, Jun 26, 2020
Slide 1: CEO's presentation following AGM
Kore Potash plc 25 Moorgate, London EC2R 6AY United Kingdom 26 June 2020 For personal use only KORE POTASH PLC (“Kore Potash” or “the Company”) CEO’s presentation following AGM Kore Potash plc, the potash development company whose flagship asset is the 97%-owned Sintoukola Potash Project, is pleased
Slide 2: Sustainably feeding the world
For personal use only Sustainably feeding the world June 2020 PRIVATE & CONFIDENTIAL
Slide 3: Disclaimer
Disclaimer For personal use only 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
Slide 4: Introduction
Introduction For personal use only 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 develo
Slide 5: More potash needed to feed the world
More potash needed to feed the world For personal use only 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
Slide 6: Recent investments by mining majors
Recent investments by mining majors For personal use only 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 1,6
Slide 7: Dougou Extension (DX)
Dougou Extension (DX) Sylvinite project For personal use only 6
Slide 8: DX PFS Overview
DX PFS Overview For personal use only 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-produc
Slide 9: Very low cost of supply into target markets
Very low cost of supply into target markets For personal use only • 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 count
Slide 10: Benchmarking DX – high grade, low capex
Benchmarking DX – high grade, low capex Kore Deposits Pre-production assets Selected producers 45 For personal use only 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 • H
Slide 11: Benchmarking DX – low cost production
Benchmarking DX – low cost production SOP & MOP US$300/t Polyhalite For personal use only 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$100/t any comparable project i
Slide 12: Environment and permitting
Environment and permitting For personal use only DX produces no by-product tailings The Mining Convention for Kola and Dougou mining licence area is in place DX is situated within existing Dougou mining licence Advanced permitting in place – Kore has an approved 25 year ESIA for Kola and Dougou mini
Slide 13: District scale development potential
District scale development potential For personal use only Kore is developing its globally significant potash deposits in the Republic of Congo (RoC) District scale development potential with over 6 Bt of potash Mineral Resources located 35 km from the coast Several high grade sylvinite projects: DX
Slide 14: Next steps
Next steps For personal use only The DX PFS has demonstrated that developing DX is both the fastest route to production and a low capex, high return project in its own right The Company intends to progress rapidly to undertaking a Definitive Feasibility Study (DFS) for DX A workplan for the DX DFS i
Slide 15: Summary
14 For personal use only Summary
Slide 16: Summary
Summary For personal use only Sustainably feeding Long life at globally Advantageous location the world significant scale • Fertiliser use improves crop yields • Initial life of DX of 18 years at • Close to target markets for farmers, reducing the carbon 400ktpa MoP production • Project adjacent to
Slide 17: Appendices
16 For personal use only Appendices
Slide 18: DX PFS data
DX PFS data For personal use only Project physicals Units Project financials Units Total MoP production kt 372 Total revenue US$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
Slide 19: 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 experience building and operating large scale mining projects For personal use only The Mondi Group, i
Slide 20: Corporate snapshot
Corporate snapshot For personal use only 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 Mana