Kore Potash Plc · LSE:KP2
Kore Potash — Investor Presentation (March 2018)
20 slides from Kore Potash's investor presentation, March 2018
Slide 1: Kore Potash Ltd – a unique opportunity
Kore Potash Ltd – a unique opportunity Sean Bennett March 2018
Slide 2: Disclaimer
Disclaimer ▪ This presentation contains general information only and is, or is based upon, information which has been released to ASX. This presentation is not an invitation, offer or recommendation (express or implied) to apply for or purchase or take any other action in respect of securities and i
Slide 3: Building a world class MOP Project
Building a world class MOP Project Deep and well understood market ▪ MOP is the deepest and best understood fertiliser market representing c. 91% of global potash market Kore well placed to be among the world’s lowest cost MOP producers ▪ Shallow depth: 190m to 340m ▪ Close proximity to coast: withi
Slide 4: Board and Senior Management
Board and Senior Management Kore Potash Project management team has over 250 years of mining experience at an average of 25 years per person, across a range of industries & countries. In addition, major holder, SQM has dedicated significant senior resource to assisting Kore Potash in developing the
Slide 5: Asset overview
Asset overview Kola Sylvinite Deposit ▪ High grade – 35,4% KCl ▪ Shallow 190-340m below surface ▪ Large (508 Mt M+I*) and open laterally ▪ DFS commenced Q1 2017 ▪ Mining license granted in August 2013 ▪ ESIA approved ▪ Own Jetty ▪ Mining convention signed June 2017 Dougou Carnallite Deposit ▪ Very l
Slide 6: A new strategy differentiating the company
A new strategy differentiating the company Properly capitalised ▪ Investment of US$50m including recent US$5m investment arranged by Summit at AU$0.25 Off-take ▪ Preliminary provisional off-take for minimum of 40% of annual production Fixed construction costs ▪ Construction company involved with eng
Slide 7: World class new cornerstone Investors
World class new cornerstone Investors SQM (US $20m investment) SGRF (US$20m investment) ▪ Integrated producer and distributor of specialty plant ▪ Primary sovereign wealth fund of the Sultanate of nutrients, iodine, lithium, potassium-related fertilizers Oman with a focus on investing the Omani and
Slide 8: World class construction consortium
World class construction consortium ▪ A French engineering company founded in 1958 ▪ World’s largest private construction company by employing over 37,000 people revenue, employing approximately 183,490,000 people ▪ Listed on Euronext Paris with revenues of over €10bn ▪ A French company listed on Eu
Slide 9: Why is Kore a unique Potash opportunity?
Why is Kore a unique Potash opportunity? Quality ▪ High grade (Kola 35.4% KCl) with very low insoluble content Cost ▪ Expected to be one of the lowest MoP opex at c. US$101 per tonne Upside ▪ Kola open laterally and although early stage, Dougou Extension drilling confirmed widespread distribution of
Slide 10: Recent drilling demonstrates potential for additional sylvinite resources
Recent drilling demonstrates potential for additional sylvinite resources At the Kola Deposit • Drilling of two holes (EK_53 and EK_54) to test southward extension of the Kola Resource completed in August 2017. • If future exploration is carried out and is successful, an increase in the resource wou
Slide 11: What sets Kore apart from other African projects
What sets Kore apart from other African projects Close to the coast No port needed ▪ No requirement for building rail or major road ▪ Permission for dedicated Jetty Access to gas ▪ Oil industry generating excess gas Potential access to low cost power ▪ Gas powered power plant nearby Political suppor
Slide 12: Demand and supply
Demand and supply Supply Demand 12
Slide 13: Strategically advantageous opex
Strategically advantageous opex K2P enjoys the following cost advantages ✓ Dedicated ✓ Shallow Jetty resource ✓ Low electricity ✓ Low and gas costs, labour cost abundant water supply ✓ High grade – low insoluble ✓ Close to coast 13
Slide 14: Significant future news flow
Significant future news flow Q1-18 Q2-18 Q3-18 Q4-18 2019 2022 Kola drilling Analysis & London listing ✓ DFS ✓ ✓ ✓ Fixed price EPC ✓ ✓ Mining Convention Ratified into law ✓ Construction to commence ✓ Production to commence ✓ 14
Slide 15: Summary
Summary Transaction materially de-risks future K2P already world class project ▪ Funded DFS ▪ High Quality – and additional drilling – Shallow, high grade, low insoluble resource – Significant investors ▪ Quantity – with financial capability and expertise to take project – Significant resource of ov
Slide 16: Appendices
Appendices
Slide 17: Potash market
Potash market Better shape than many commodity markets Prices have been impacted by ▪ Population growth ▪ Break up of marketing alliance ▪ Reduction in arable land per capita ▪ Global economic conditions ▪ Change in dietary preference Long term prices are supported by a steep cost curve Potash deman
Slide 18: Corporate structure
Corporate structure Kore’ has a 97% holding in Sintoukola Potash which holds: Kore Potash Plc 100% Kore Potash Ltd (KPL – ASX) MGM RoC 100% 97% 3% Kore Potash Sintoukola Potash SA South Africa (PTY) Ltd RoC SPV 100% 100% Kola Potash Mining S.A. Dougou Potash Mining S.A. RoC SPV RoC SPV (Kola Deposit
Slide 19: Potash Mineral Resources
Potash Mineral Resources Resource Category Million Tonnes Grade KCl % Kola Sylvinite Deposit Measured 216 34.9 Indicated 292 35.7 Inferred 340 34.0 TOTAL 848 34.8 Kola Carnallitite Deposit Measured 341 17.4 Indicated 442 18.7 Inferred 1,266 18.7 TOTAL 2,049 18.5 Dougou Carnallitite Deposit Measured
Slide 20: ROC Mining Convention
ROC Mining Convention Aim Typical rights & obligations of K2P including ▪ To create a stable, transparent and predictable contractual ▪ Mining permit rights framework supporting the investors return on investment for ▪ Management obligations the period between the investment phase (construction) to