Reward Minerals Ltd · ASX:RWD
Reward Minerals — Non-Deal Roadshow (May 2015)
17 slides from Reward Minerals's roadshow presentation, May 29, 2015
Slide 1: Focussed on Developing the LD Project
REWARD MINERALS LIMITED Focussed on Developing the LD Project Roadshow & AGM Presentation May 2015 ASX Code: RWD
Slide 2: Forward Looking Statements & Disclaimer
FORWARD LOOKING STATEMENTS & DISCLAIMER This document includes forward-looking statements. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should”, and similar expressions are forward-looking statements. Although RWD believes that t
Slide 3: Company Highlights
COMPANY HIGHLIGHTS Reward is delineating and de-risking a potentially World-Class Potassium Sulfate (SOP) brine resource at its LD Potash Project in Western Australia SOP is a premium Potash fertilizer with excellent fundamentals (SOP prices are currently ~AU$1,000/t) and limited new supply is avail
Slide 4: Corporate Overview
CORPORATE OVERVIEW Capital Structure 28 May 2015 ASX:RWD Price History (1 Year) Ordinary Shares on Issue 111.7m Options on Issue ($0.25 – $1.09) 24.1m Share Price $0.76 Undiluted Market Capitalisation $85m Cash & Equivalents1 A$4m Undiluted Enterprise Value A$81m 1. Cash based on cash + listed inves
Slide 5: Board & Senior Management
BOARD & SENIOR MANAGEMENT Board of Directors Senior Management Colin McCavana – Non-Executive Director, Chairman Daniel Tenardi – Projects Director - 30+ years experience in mining and earthmoving - 25+ years mining experience for various organisations industries including the management, acquisitio
Slide 6: Potash: Global SOP Demand
POTASH SOP currently makes up ~10% of the Potash market with forecast growth of 4% Sulfate of Potash – SOP, K2SO4 Contains 18.4% Sulphur (MOP: 46% Cl) Potassium is essential for photosynthesis and protein production, enhances nutrient uptake, disease resistance, drought tolerance thereby improving y
Slide 7: The SOP Premium
THE SOP PREMIUM SOP attracts a premium price (50+%), price is underpinned by limited brownfield & greenfield supply and increasing demand 1,200 SOP(A$) 1,000 Potash Price per Tonne ($/t) 800 SOP(US$) 600 400 MOP(US$) 200 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 7 Source: Bloomberg, Greenm
Slide 8: LD Project Overview
LD PROJECT OVERVIEW Project Overview Little Sandy Desert (W.Australia) Location ~340km east of Newman Current 24.4Mt @ 12.37kg/m3 SOP Resource (Indicated, in Brine, to only 4m depth) (K2SO4) In-situ playa brine Type of Deposit Similar chemistry to Great Salt Lake (high sulphate brine) ILUA Registere
Slide 9: LD Project Production Process
LD PROJECT PRODUCTION PROCESS Conventional process - harvested salt goes through a milling, conversion and crystallization process - SOP ready for crop application. 9
Slide 10: LD Scoping Study – Key Metrics
LD SCOPING STUDY – KEY METRICS 1,200 LD is the lowest CAPEX SOP project Total Project Capex - Bar Chart 1,000 800 under development in the world (US$M) 600 Capital cost estimate of A$320M 400 (US$256M) 200 Pre-Tax NPV10 of A$534M - Reward EPM South Boulder Allana IC Potash Potash Ridge Pre-Tax IRR o
Slide 11: Global SOP Cost Curve (Mine Gate)
GLOBAL SOP COST CURVE (MINE GATE) Primary (brine) SOP deposits ensure low production costs while Mannheim production provides an artificial price floor 500 450 400 Reward Estimated Cost of Production2 Estimated Operating Cost / t (US$) 1 350 Mine Gate: A$204/t FOB: A$328/t 300 250 200 150 100 50 0 L
Slide 12: LD Resource Expansion Program
LD RESOURCE EXPANSION PROGRAM Targeting expansion of the existing surface to 4m Resource at depth Existing 24.4Mt resource down to an average of 4m depth Recent exploration encountering brine open at 135m depth Significant Resource upside based on recent results Drilling is ongoing targeting near-te
Slide 13: Regional Projects
REGIONAL PROJECTS Reward has a number of highly prospective pipeline projects Overview of Regional Projects Karly Project Dora Project Exploration Licences and Projects Level of Access Lake Winifred Project Applications Lake Auld Project Great Sandy Desert LD testwork results and Location Production
Slide 14: Valuation Metrics
VALUATION METRICS As Reward de-risks LD on approach to production significant upside exists in the Company’s valuation Share Price Market Cap Net Debt EV EV/EBITDA EV/EBITDA Company Name ($/sh) (US$m) (US$m) (US$m) FY14 FY15 Arab Potash 24.5 2,041 -416 1,625 8x 8x Intrepid Potash 11.9 904 72 976 10x
Slide 15: LD Project Timeline
LD PROJECT TIMELINE Reward is focused on de-risking the LD Project as it moves toward completion of the Feasibility Study 2015 2016 Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 LD Exploration Scoping Study Feasibility Study Environmental Impact Assessment Mining Lease Applications Pilot Ponds Project Funding Po
Slide 16: Summary
SUMMARY Reward World-Class Potassium Sulfate (SOP) brine resource at the LD Potash Project in Western Australia SOP’s excellent fundamentals (SOP prices are ~A$1,000/t) remain intact with limited new supply is available globally LD has Major resource upside with drilling to +100m depth for resource
Slide 17: Competent Person Statement
COMPETENT PERSON STATEMENT Reward Minerals Ltd advise that Resource Parameters provided in this presentation relating to the LD Project are based on information compiled by Mr Simon Coxhell of CoxsRocks who is a Member of the Australasian Institute of Mining and Metallurgy and is a technical consult