Apc Minerals Limited · ASX:APC
Apc Minerals — Australian Potash — Investor Presentation (October 2017)
33 slides from Apc Minerals's investor presentation, October 2017
Slide 1: Australia's Premier Sulphate of Potash Project
Australia’s Premier Sulphate of Potash Project ASX:APC Investor Presentation October 2017 Australian Potash Limited (ASX:APC) 1
Slide 2: Cautionary Statement & Disclaimer
Cautionary Statement & Disclaimer Scoping study – cautionary statement The Study referred to in this announcement is a preliminary technical and economic investigation of the potential viability of the Lake Wells Potash Project. It is based on low accuracy technical and economic assessments, (+/- 35
Slide 3: Competent Persons Statement
Competent Persons Statement The information in the announcement that relates to Exploration Targets and Mineral Resources is based on information that was compiled by Mr Jeffery Lennox Jolly. Mr Jolly is a principal hydrogeologist with AQ2, a firm that provides consulting services to the Company. Ne
Slide 4: Company Overview
Company Overview Australian Potash Limited (ASX:APC) • Focussed on the exploration and development of: – Lake Wells Sulphate of Potash (SOP) Brine Project • Definitive Feasibility Study concluding H1 2018 into developing a 300,000 tonne per annum brine evaporation SOP operation • 100,000tpa MOUs in
Slide 5: Directors & Management
Directors & Management Matt Shackleton Rhett Brans Brett Lambert Executive Chairman Non-executive Director Non-executive Director Matt is a resources executive and Chartered Mr Brans is an experienced director and civil Mr Lambert is a mining engineer and Accountant with 20 years experience in senio
Slide 6: Industry Overview: Sulphate of Potash (SOP)
Industry Overview: Sulphate of Potash (SOP) Global potash market c. US$60 billion per annum SOP is forecast to grow from current 10% to 20% by 2025 SOP, or Potassium Sulphate (K2O4), is a premium quality nutrient for the growth of high-value crops. – Chloride-free and highly concentrated – Contains
Slide 7: Industry Overview: Sulphate of Potash (SOP)
Industry Overview: Sulphate of Potash (SOP) Demand fundamentals driven by: – Reduction in arable land and chase for higher yields – Rising global population and income growth in key emerging markets – Changing dietary preferences towards high value crops – Improved produce storage and shelf life – E
Slide 8: Industry Overview: Sulphate of Potash (SOP)
Industry Overview: Sulphate of Potash (SOP) Costs of Operation by project and type Scoping study results position Lake Wells in the bottom quartile of the cost curve SOP industry cost curve incentivising primary production brine assets: – high cost secondary Mannheim production represents ~60% of gl
Slide 9: Lake Wells Sulphate of Potash (SOP) Project
Lake Wells Sulphate of Potash (SOP) Project Western Australia, 100% owned Australian Potash Limited (ASX:APC) 9
Slide 10: Lake Wells SOP Project: Overview
Lake Wells SOP Project: Overview Rapidly Advancing Australia’s Premier SOP Project • 100% ownership of +2,000km2 Lake Wells SOP project – low risk mining jurisdiction – no Native Title • Long life, lowest cost quartile SOP operation – large easily extractable resource – highly efficient capital expe
Slide 11: Lake Wells SOP Project: Part 1: Brine Extraction
Lake Wells SOP Project: Part 1: Brine Extraction Borefield brine abstraction is a developed technology APC will use bores to extract the brine Indicated Inferred Total Mt SOP 12.7 2.0 14.7 SOP grade mg/l 8,267 5,963 7,896 Aquifer volume 17,050 3,279 20,329 (Mm3) Drainable resource 1,521 340 1,861 (M
Slide 12: Lake Wells SOP Project: Part 2: Brine Evaporation
Lake Wells SOP Project: Part 2: Brine Evaporation • Q4 2017 - Q1 2018: SOP trial-production ponds program – Produce feeder salts for spec. SOP products • Q4 2018: Additional trial ponds – Test constructability techniques for large scale pond development – Replicate test-work data confirming highly i
Slide 13: Lake Wells SOP Project: Part 3: Processing into SOP
Lake Wells SOP Project: Part 3: Processing into SOP Capital efficient 2 stage development strategy First mover advantage • Stage 1:US$140m 150,000tpa SOP • Stage 2:US$131m 150,000tpa SOP • SOP production from two identical processing trains • Double-salts produced through the evaporation process are
Slide 14: Lake Wells SOP Project: Logistics
Lake Wells SOP Project: Logistics Extensive existing infrastructure Bulk minerals rail terminals c.300kms Leg Mode Km $A/t Lake Wells - Road 300 14 Leonora Leonora - Rail 800 55 Fremantle Lake Wells – Fremantle 69 • The Lake Wells SOP project enjoys considerable logistical advantages over peer proje
Slide 15: Lake Wells SOP Project: Work Program
Lake Wells SOP Project: Work Program Rapid progress across key areas Permitting & approvals on track Resource • Currently installing # 6 of 7 test-production bores • Q4 2017: Long-term test-pumping • Q4 2017: Resource extension drilling • Q4 2017/Q1 2018: Reserve estimation • Q4 2017: Fresh water te
Slide 16: Lake Wells SOP Project: Marketing Milestones
Lake Wells SOP Project: Marketing Milestones 100,000 tpa SOP MOUs signed with Sino-Agri and Hubei-Agri • China: preferential policies to support fertiliser production and transport have been cancelled and Government positioning encourages environmentally friendly fertiliser production, i.e. non-Mann
Slide 17: Milestones – Project Development Timeline
Lake Wells SOP Project: Milestones – Project Development Timeline CY2017 CY2018 Q3 Q4 H1 H2 Final commissioning of pilot evaporation ponds Finalization of test-pumping program Completion of geotechnical field work JORC Reserve estimate Reporting of Feasibility Study results Formalize off-take agreem
Slide 18: Lake Wells SOP Project: Key Highlights
Lake Wells SOP Project: Key Highlights Australia’s Premier Sulphate of Potash Project ü Rapid time-line to project execution ü Largest Indicated JORC Resource estimate: resource has been significantly de-risked – +7,000m of drilling into palaeochannel, extensive test-pumping – reserve estimate based
Slide 19: Yamarna Gold Project
Yamarna Gold Project Western Australia, 100% owned Australian Potash Limited (ASX:APC) 19
Slide 20: Yamarna Gold Project: Overview
Yamarna Gold Project: Overview Exploration program commencing immediately Drill targets being defined Yamarna Gold Project – Northern terminus of the ‘Yamarna’ Shear – Dextral Lateral Ramp thrust domain – Strong Timmins (Abitibi Belt, Canada) similarities Axford – Relatively easy to constrain target
Slide 21: Yamarna Gold Project: Greenstone Belt
Yamarna Gold Project: Greenstone Belt The last under-explored belt in the Eastern Goldfields +6m ounces gold discovered to date Gruyere Gold Project JV: Gold Road Resources/Gold Fields Ltd – 148mt @ 1.3g/t for 6.2M ounces gold Axford intercepts includei 6m @ 3.46g/t Au – Gold Fields’ 50% buy-in A$35
Slide 22: Yamarna Shear - Dilationary Zone
Yamarna Gold Project: Yamarna Shear - Dilationary Zone Outstanding regional success • June 2017 adjoining neighbour Gold Road Resources (ASX: GOR) 2 3 released outstanding gold results 2kms south-east of APC’s tenement holding at Ibanez prospect including – 10m @ 28.76g/t Au – 9m @ 4.56g/t Au – 8.20
Slide 23: Yamarna Gold Project
Yamarna Gold Project Structurally analogous to Canada’s Abitibe archaean greenstone belt Australian Potash Limited (ASX:APC) 23
Slide 24: Yamarna Gold Project: Upcoming Milestones
Yamarna Gold Project: Upcoming Milestones – Q4 2017: ASSAY RESULTS from multi- element analysis on end of hole drill samples – Q4 2017: DRILLING programs to commence across high-priority targets – Board continuing to assess value development options for APC shareholders Drilling at the Yamarna Gold
Slide 25: Share Metrics
Share Metrics Australian Potash Limited ASX: APC Trading activity Share price (18 Sep 2017) A9.7c Oct-16 to Sep-17 18 Market capitalization A$25m 16 3,000,000 Total shares outstanding 256,473,073 14 14.2m Warrants (average price & expiration) A10c – A22.5c 12 11/18 – 4/21 2,000,000 10 Totally fully
Slide 26: Investor Highlights
INVESTOR HIGHLIGHTS - H1 2018: DEFINITIVE FEASIBILITY STUDY TARGETING COMPLETION - November 2017: 20% of stage 1 production bores to be developed - Q4 2017/Q1 2018: Pilot evaporation ponds commissioned and evaporating with first production of SOP - H1 2018: JORC compliant mineral reserve to be publi
Slide 27: Registered Office Address
Registered Office Address 31 Ord Street, West Perth WA 6005 PO Box 1941, West Perth WA 6872 Reception: +61 8 9322 1003 Email: m.shackleton@australianpotash.com.au Website: www.australianpotash.com.au ABN 58 149 390 394 Australian Potash Limited (ASX:APC) 27
Slide 28: Appendix 1: Brine Resource
Appendix 1: Brine Resource Massive aquifer of +20 billion tonnes SOP brine Highly permeable sands in upper & basal production aquifers 15m – 35m wide • Currently Australia’s largest indicated SOP resource estimated using specific yield, indicating significant de- risking of resource (please refer to
Slide 29: Appendix 1a: JORC Mineral Resource Estimate
Appendix 1a: JORC Mineral Resource Estimate Drainable K Volume of Specific SOP Grade SOP Brine Concentration Aquifer Yield (mg/L) Resource Hydrogeological Unit Volume (mg/L) Weighted Weighted MCM Mean MCM MT Mean Value Mean Value Indicated Resources Western High Grade Zone Surficial Aquifer 5,496 10
Slide 30: Appendix 2: Evaporation
Appendix 2: Evaporation Unlined on-playa evaporation ponds are used in the world’s largest brine SOP operations APC plans to build concentration ponds on the lake surface Table demonstrating additional CAPEX required for projects developing lined concentration ponds off the lake surface Pond constru
Slide 31: Appendix 3: Processing - Low CAPEX Development
Appendix 3: Processing - Low CAPEX Development Capital efficient 2 stage development strategy First mover advantage SCOPING STUDY CAPEX 4 Stage 1 Stage 2 Low upfront CAPEX Production SOP (tonnes) 150,000 300,000 400 450 $AUD $AUD 400 Annual SOP production (ktpa) 350 Pre production capex (A$m) 300 35
Slide 32: Appendix 3a: Processing – Lowest Quartile OPEX
Appendix 3a: Processing – Lowest Quartile OPEX Feasibility study H1 2018 Significant OPEX optimization SCOPING STUDY OPEX 4 Stage 1 Stage 2 Scope to optimize the cost base through feasibility study COST AREA $AUD $AUD • Pond permeability (smaller ponds = Reagents/consumable 127 126 less brine pumpin
Slide 33: Appendix 3b: Processing
Appendix 3b: Processing Capital efficient 2 stage development Managing market penetration • Granulation plant • Design can produce 100% premium grade granulated SOP or standard SOP to meet the market • Ultra-premium soluble SOP product line being modelled = meeting customer’s 2020 demands • Potentia
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