Apc Minerals Limited · ASX:APC
Apc Minerals — Australian Potash — Investor Presentation (April 2018)
40 slides from Apc Minerals's investor presentation, Apr 18, 2018
Slide 1: Australian Potash Limited Investor Presentation
Australian Potash Limited (ASX:APC) Investor Presentation April 2018 Australian Potash Limited (ASX:APC) 1
Slide 2: Important Statements & Disclaimers
Important Statements & Disclaimers 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, (+/- 3
Slide 3: Australian Potash Limited (ASX: APC)
Australian Potash Limited (ASX: APC) APC is focused on the production of the premium specialty fertiliser potassium sulphate ("SOP") from Australia’s largest indicated SOP resource at Lake Wells in the Eastern Goldfields of Western Australia. Currently being assessed at second lowest level for Dev
Slide 4: Corporate Overview
Corporate Overview Capital structure Board of Directors Matt Shackleton, Executive Chairman ASX ticker APC Matt joined APC as Executive Chairman in July 2014. He is a Chartered Accountant, and has more than 20 years experience in senior management and 30 day VWAP Share price ( to 14 April 2018) A$0.
Slide 5: Why Invest in Sulphate of Potash
Why Invest in Sulphate of Potash Capturing the Demographic-Agricultural-Dietary mega-trends Global population (billion people) Global arable land per capita (Ha) Global and regional per capita food consumption (kcal/person/day) 3,450 3.2 1970 0.15 1970 2,950 9.7 2000 0.38 2000 6.1 2,450 2050 0.23 20
Slide 6: Why Invest in Australian Potash
Why Invest in Australian Potash Materially de-risked, high-value SOP Project in one of the World’s lowest risk mining jurisdictions Strong fundamental project economics with lowest quartile OPEX and highly efficient CAPEX Simple, proven and reliable brine abstraction (mining) and processing meth
Slide 7: Lake Wells Sulphate of Potash Project Definitive Feasibility Study Update
Lake Wells Sulphate of Potash Project Western Australia, 100% owned Definitive Feasibility Study Update Australian Potash Limited (ASX:APC) 7
Slide 8: Definitive Feasibility Study: Objectives and Scope
Definitive Feasibility Study: Objectives and Scope SOP production at Lake Wells will be a three-stage process SOP process DFS outcomes • Hypersaline brine is pumped from Establishment of definitive flow rates, Abstraction of brine underground aquifers into evaporation ponds pumping/extraction plan a
Slide 9: Definitive Feasibility Study Work Streams: Production Wells
Definitive Feasibility Study Work Streams Brine Abstraction Production Wells Production Wells Work stream Estimated Current 100% to complete completion position 90% DFS date 80% 70% Total number of Stage 60% 1 Wells required, 35 To install to 5 production 50% completion of DFS, 2 40% wells Additiona
Slide 10: Definitive Feasibility Study Work Streams: Test Pumping
Definitive Feasibility Study Work Streams Brine Abstraction Test Pumping Flow Rates from Production Wells, Constant Rate Work stream Estimated Current 25 to complete completion position 20 DFS date 20 15 3 production Short term 15 15.34 wells at 2 pump testing 10 sites have on new 5 been step & prod
Slide 11: Definitive Feasibility Study Work Streams: JORC Reserve Estimate
Definitive Feasibility Study Work Streams Brine Abstraction JORC Mineral Reserve Estimate JORC Mineral Resource Estimate Work stream Estimated Current 16 14.8 to complete completion position 14 12.7 DFS date Drainable SOP million tonnes 12 10 14.8 million 8 tonnes Total Completion 6 Drainable of hyd
Slide 12: Definitive Feasibility Study Work Streams: Geotechnical Survey
Definitive Feasibility Study Work Streams Brine Evaporation Continued Geotechnical Survey Program Surficial Clay Permeability and Recoveries from On-Playa Work stream Estimated Evaporation Ponds Current to complete completion 0.12 75% position DFS to date, 72% DFS date 0.1 70% 0.08 mm per day 65% Ge
Slide 13: Definitive Feasibility Study Work Streams: Pond Constructability
Definitive Feasibility Study Work Streams Brine Evaporation Evaporation Pond Constructability Program Scoping Study Estimated Pond Size Work stream Estimated Current 12 to complete completion position 10 DFS date 10.0 Square kilometres 8 Preliminary, 6 Develop trial scoping sites at Lake 4 study des
Slide 14: Definitive Feasibility Study Work Streams: SOP Trade Sample Production
Definitive Feasibility Study Work Streams Process SOP Trade Sample Production Program Work stream Estimated Current to complete completion position DFS date Harvest ‘feeder’ salts Pilot pond from ponds, harvest salts freight to Q3 2018 crystallising process facility, produce SOP Comment New work str
Slide 15: Definitive Feasibility Study Work Streams: Approvals
Definitive Feasibility Study Work Streams Approvals EPA Program Work stream to complete Current position Estimated completion date DFS • S38 Referral lodged with EPA 20 December 2017 • ERD to EPA • Environmental Review • Water abstraction license Document being prepared • Mining Proposal • Mining Le
Slide 16: Lake Wells Sulphate of Potash Project Appendices
Lake Wells Sulphate of Potash Project Western Australia, 100% owned Appendices Australian Potash Limited (ASX:APC) 16
Slide 17: Sulphate of Potash (SOP): the Premium Potash
Sulphate of Potash (SOP): the Premium Potash SOP does not contain chloride making it ideal for application to higher-value chloride cotton sensitive crops Citrus fruit, deciduous - Integer Research fruits, tree nuts, strawberries and melons coffee And … avocados cashews hops cucumbers Bright, leafy
Slide 18: Main Varieties of Potash
Global Trade in Potash $US Sales Price per tonne Main Varieties of Potash Sulphate of Potash: SOP 8 700 600 Muriate of Potash: MOP 60 SOP, 580 Global annual traded tonnes (approx. mT) 500 400 SOP commands a price premium over MOP of up to approx. $US300 per tonne 300 MOP, 300 • Lack of supply: margi
Slide 19: Production of SOP
Production of SOP Global SOP production by method Average cost of SOP production 2o production 1o production 550 Brine evaporation 20% 500 Mannheim, Hard rock extraction 5% $450 Mannheim 450 50% $US per metric tonne 400 KCl reaction Hard rock 25% 350 extraction, $350 Brine evaporation Hard rock extr
Slide 20: China is the World's Largest SOP Market
China is the World’s Largest SOP Market SOP Global Production 2004 - 2015 SOP Global Demand 2015 – 2026 12 World with China World without China 12 World with China World without China 9.6 9.6 10 10 8.9 9.3 8.3 8.6 7.7 7.8 7.9 8.0 7.5 7.5 7.6 8 8 Million metric tonnes Million metric tonnes 6.9 5.6 5.
Slide 21: The Lake Wells SOP Project: Abstraction of brine
The Lake Wells SOP Project SOP production at Lake Wells will be a three-stage process Abstraction of • Hypersaline brine is pumped from underground aquifers into evaporation ponds brine • Bore-field development to depths of 175m • Water is evaporated off the brine, leaving Evaporation of crystallise
Slide 22: The Lake Wells SOP Project: Brine abstraction bores
The Lake Wells SOP Project Abstraction of brine is the ‘mining’ part of an SOP operation Short-term pump tests 90 yielded up to 34l/s 40 Required Flow Rate per Production Bore (l/s) Lake Wells will use a 80 35 bore-field brine 70 Number of Production Bores abstraction method 30 60 Long-term pump tes
Slide 23: The Lake Wells SOP Project: Evaporation of water
The Lake Wells SOP Project Evaporation of water is the ‘beneficiation’ part of an SOP operation Development of evaporation pond network on the lake Hypersaline brine is surface at Lake Wells confirmed through geotechnical pumped into the pond network from field program comprising the bore-field Pre-
Slide 24: The Lake Wells SOP Project: SOP processing and CAPEX
The Lake Wells SOP Project Lake Wells will process SOP from brine evaporation and KCl reaction CAPEX WITHOUT AND WITH KCL REACTION Indicative Prices for SOP Brine bore field Evaporation ponds Grade and Type Process plant Non-process infrastructure $650 Indirects Contingency $630 52% 22.6 24.4 $610 S
Slide 25: The Lake Wells SOP Project: Marketing
The Lake Wells SOP Project Marketing Lake Wells SOP project development will be SOP Demand underpinned by off-take agreements supplying 4,000 initially into the Chinese market 3,500 Two MOUs in place for up to 100,000tpa with 3,000 Sino-Agri, China’s largest agricultural company ‘000 metric tonnes
Slide 26: The Lake Wells SOP Project: Approvals
The Lake Wells SOP Project Approvals Environment Protection Authority (EPA) Western Australia’s Environmental Protection Agency (EPA) is assessing the Lake Wells SOP project development on an Environmental Review Document, no Public Comment Ministerial Approval anticipated Q4 2018/Q1 2019 Department
Slide 27: The Lake Wells SOP Project: Logistics
The Lake Wells SOP Project Logistics Quad-combination road haulage Lake Wells to Leonora Rail haulage Leonora rail siding to Esperance Port APC’s Lake Wells SOP project is the closest Australian SOP project to bulk rail infrastructure Australian Potash Limited (ASX:APC) 27
Slide 28: The Lake Wells SOP Project: Location
The Lake Wells SOP Project Location Lake Wells SOP project Lake Wells SOP project Lake Wells SOP project High mean daily temperatures High average daily sunshine hours Low annual rainfall Australian Potash Limited (ASX:APC) 28
Slide 29: The Lake Wells SOP Project: Timeline
The Lake Wells SOP Project Timeline Continued long-term pump testing Abstraction JORC Compliant Reserve estimate Pond constructability trials Evaporation Second round of trial evaporation pond Processing Production of trade samples of SOP Marketing Formal off-take discussions EPA recom
Slide 30: Historical SOP Pricing
Historical SOP Pricing Standard SOP bulk fob NWE € 900 € 800 € 700 22 March € 600 2018 A$676 € 500 € 400 € 300 € 200 € 100 €0 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 31: JORC Compliant Resource Estimate
JORC Compliant 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% 549 3,738
Slide 32: Data Information Sources
Data Information Sources www.greenmarkets.com Green Markets www.integer-research.com Integer www.argusmedia.com Argus Media www.cru.com CRU International Limited www.fertilizer.org The International Fertilizer Association www.sopib.com Sulphate of Potash Information Board www.fao.org Food and Agricu
Slide 33: History of Progress
History of Progress Mining lease applications 10km 10km 10km 2015 2016 2017 • High-grade Sulphate of Potash deposit • Maiden JORC Compliant SOP Resource • Mining Leases recommended for grant with NIL Native Title identified through brine sampling • Initial test-production bores developed claims • Dr
Slide 34: Yamarna Gold Project
Yamarna Gold Project Western Australia, 100% owned Australian Potash Limited (ASX:APC) 34
Slide 35: Yamarna Gold Project
Yamarna Gold Project • Location - proven gold mineralised system south of and contiguous with Yamarna Gold project tenure • Structural review and targeting conducted with 18 targets identified • Pathfinder geochemistry & alteration mapping review conducted with 16 targets identified Area 1 • 23,000
Slide 36: Yamarna Shear – Structural Dilationary Zone
Yamarna Shear – Structural Dilationary Zone Outstanding regional success • June 2017 adjoining neighbour Gold Road Resources (ASX: GOR) 3 released outstanding gold results 2kms south-east of APC’s tenement holding at Ibanez prospect including Area 1 – 10m @ 28.76g/t Au – 9m @ 4.56g/t Au – 8.20m @ 11
Slide 37: Structural Analogues: Archean greenstone
Structural Analogues: Archean greenstone Australian Potash Limited (ASX:APC) 37
Slide 38: Geochemical targeting
Geochemical targeting Geochemical analysis by Dr Scott Halley indicates intrusion related mineralization, where analogues include; Kanowna Belle (+6Moz WA), Wallaby (+8Moz WA), Jupiter (+1.3Moz WA), Hemlo (+20Moz Canada) Australian Potash Limited (ASX:APC) 38
Slide 39: 23,000m Air-Core Drilling Program
23,000m Air-Core Drilling Program APC drill program lines APC will execute 23,000m AC drilling program to explore continuation of structural and geochemical anomalies shown to host +8m oz. gold to date Australian Potash Limited (ASX:APC) 39
Slide 40: 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) 40
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