Turnstone Resources Ltd · ASX:TSR
Turnstone Resources — Davenport Resources — Investor Presentation (October 2018)
23 slides from Turnstone Resources's investor presentation, October 2018
Slide 1: Building Europe's Largest Potash Inventory
BUILDING EUROPE’S LARGEST POTASH INVENTORY in Germany’s South Harz Basin © Davenport Resources Ltd. October 2018 www.davenportresources.com.au
Slide 2: Disclaimer
DISCLAIMER Davenport Resources Limited (“Davenport”, “DAV”, “The Company”) has issued this Presentation This Presentation is not intended to be, and is not, a prospectus, offering memorandum or private for informational purposes only. It is not intended to, and does not, constitute specific advice t
Slide 3: Davenport at a Glance
DAVENPORT AT A GLANCE • 143.1 m Ordinary Shares • 67.5m shares listed on ASX Mkt • Cap A$6.2 mill • Cash A$1.7m @30 Sept 2018 Pat McManus: Chairman Rory Luff: NE Director A mining professional for more than 30 years, his work has taken him to many sites Founder of BW Equities and East Exploration wi
Slide 4: Davenport at a Glance
DAVENPORT AT A GLANCE Built a strategic position in Three perpetual mining licences Historic resources are substantial Davenport directors and Germany’s South Harz potash with historic high grade resources in size and high grade. They management have experience in basin, a globally significant regio
Slide 5: German South Harz Region
GERMAN SOUTH HARZ REGION • Davenport owns three perpetual mining licences and two exploration licences covering 659 km2 in the South Harz potash basin. • This region represents the cradle of potash mining from where 181.7 Mt potash has been extracted since the 1890’s. • Davenport is currently conver
Slide 6: Strategic Licence Position
STRATEGIC LICENCE POSITION • Davenport acquired perpetual mining licenses for Ebeleben, Mühlhausen and Ohmgebirge from the German government in 2018. • Davenport is fast-tracking the confirmation of resources in these areas and expects this to become Europe’s largest unmined potash resource. • In ad
Slide 7: Ebeleben JORC Inferred Resource
EBELEBEN JORC INFERRED RESOURCE • 2012 JORC Inferred Resource of 576 million tonnes at 12.1% K2O (69.7 Mt of K2O) which comprises 324 Mt sylvinite at 15.6% K2O and 252 Mt carnallitite at 7.5% K2O. • Extends from now closed Volkenroda mine to Davenport’s Gräfentonna Licence. Total mining licence area
Slide 8: Mühlhausen, Keula and Nohra-Elende Resource
MÜHLHAUSEN, KEULA AND NOHRA-ELENDE RESOURCE • JORC resource of 1.13 Billion tonnes containing 124.9 Mt K2O of mixed potash salts (ASX Announcement 16 October 2018) within Muhlhausen-Keula sub-area • Contains 834 Mt Sylvinite at a grade of 12.1 % K2O and 296 Mt Carnallitite containing 8.2 % K2O. The
Slide 9: Mühlhausen-Keula Grade Distribution
MÜHLHAUSEN-KEULA GRADE DISTRIBUTION • Modelling has determined that the average Sylvinite grade is 12.1% K2O however areas with grades in excess of 20% K2O have been identified. Page 9 © Davenport Resources Ltd. October 2018 www.davenportresources.com.au
Slide 10: Mühlhausen-Keula Sylvinite Thickness
MÜHLHAUSEN-KEULA SYLVINITE THICKNESS • Average thickness of Sylvinite in the southern end of the licence area is 8m-10m with zones in excess of 15m in places. Page 1 © Davenport Resources Ltd. October 2018 www.davenportresources.com.au
Slide 11: Ohmgebirge Historic Resource
OHMGEBIRGE HISTORIC RESOURCE • Historic resource containing 149.1 Mt at 13.5% K2O containing 20.1 Mt K2O (ASX announcement 19th June 2018) • 14 holes were drilled in this area by former state potash company, the most recent in 1984 • Orebody borders former Bischofferode mine which yielded 60.8 Mt sa
Slide 12: Total JORC Inferred Resources October 2018
TOTAL JORC INFERRED RESOURCES OCTOBER 2018 • Total JORC Inferred resource has reached over 1.7 Billion tonnes containing 194.1 Mt K2O. Further resources are still to be declared, bringing Davenport towards the biggest potash resource in Europe. HORIZON TONNAGE (MT) K2O % K2O (MT) EBELEBEN Sylvinite
Slide 13: Exploration Targets Küllstedt and Gräfentonna
EXPLORATION TARGETS KULLSTEDT AND GRAFENTONNA • Küllstedt – Exploration Target • 4.055 - 5.141 billion metric tonnes grading 7.2% - 25% K2O*. Davenport (DAV ASX Listing Prospectus 24 October 2016) • Gräfentonna – Exploration Target 2.678 - 3.396 billion metric tonnes grading 4.3% - 25% K2O*. (ASX re
Slide 14: Comparative Analysis
COMPARATIVE ANALYSIS Highfield Company Davenport Danakali Sirius Minerals Kore Potash Resources Ticker DAV.ASX DNK.ASX SXX.LN HFR.ASX K2P.AU Mkt Cap $7.2 $144.5 $1,483 $181.0 $40.3 (US$ millions) Cash (US$ millions) $1.8 $10.4 $512 $31.2 $14.2 Debt (US$ millions) - - $337 - - Enterprise Value (US$ m
Slide 15: Comparative Analysis - EV per attributable K2O Resource
COMPARATIVE ANALYSIS - EV per attributable K2O Resource US$/t 4.5 4 3.5 • Davenport expects the size, quality and prime location of its assets in Germany will soon place the Company in a favourable position alongside its peers. 3 2.5 2 1.5 1 0.5 0 Sirius Highfield Danakali Kore Davenport Page 15 © D
Slide 16: Role of Potash as a Plant Nutrient
ROLE OF POTASH AS A PLANT NUTRIENT Potassium: One of the Three Primary Nutrients Nitrogen (N) Phosphate (P) Potash (K) Promotes protein formation Plays a key role in adequate root Improves plant durability and Determines plant’s growth, development and photosynthesis resistance to drought, d
Slide 17: Potash Market
POTASH MARKET • Potash is an essential fertilizer for plant growth. It improves water retention, strengthens roots and stems and assists nutrient transfer. • World population is expected to grow to almost 10 billion by 2050 (+33%). Together with changing dietary trends, a 60% increase in agricultura
Slide 18: Potash Market
POTASH MARKET • As global population increases, the available arable land per capita will continue to decrease. • Potash demand and prices are rising and the trend is forecast to continue. Page 18 © Davenport Resources Ltd. October 2018 www.davenportresources.com.au
Slide 19: Fast Track Evaluation
FAST TRACK EVALUATION 114 € Total of 114 drill holes within the Using today’s costs this equates Massive JORC compliant Inferred An exceptional starting point to mining licences, 89 exclusively for to at least €100 million worth of resources already confirmed (> 1.7 Bt) fast track evaluation with th
Slide 20: Fast Track Schedule
FAST TRACK SCHEDULE 2018 2019 • JORC Resource for Ebeleben • JORC Resource for Mühlhausen areas • Identify locations for twin drillholes • Drill twin holes and verify historic data* • Elevate to JORC Indicated status • Conduct PEA/Scoping Study * Pending funding Page 20 © Davenport Resources Ltd. Oc
Slide 21: Why Davenport Resources? A Compelling Business Case
WHY DAVENPORT RESOURCES ? A COMPELLING BUSINESS CASE • Large high quality resource in historic potash region • Resources support long-life project > 50 years • Low-risk jurisdiction This project ticks • Regional government supportive of job creation projects all the boxes • Proximity to markets (Eur
Slide 22: Investor & Media Enquiries
INVESTOR & MEDIA ENQUIRIES Dr Chris Gilchrist - Managing Director David Tasker - Managing Director Davenport Resources Ltd Chapter One Advisors +353 41 988 3409 +61 433 112 936 cgilchrist@davenportresources.com.au dtasker@chapteroneadvisors.com.au © Davenport Resources Ltd. October 2018 www.davenpor
Slide 23: Building Europe's Largest Potash Inventory
BUILDING EUROPE’S LARGEST POTASH INVENTORY © Davenport Resources Ltd. October 2018 www.davenportresources.com.au
Davenport Resources — Investor Presentation (October 2018) on 6ix