Agrimin Limited · ASX:AMN
Agrimin — Noosa Mining Conference 2020
23 slides from Agrimin's conference presentation, November 2020
Slide 1: Noosa Mining Conference Presentation | November 2020
Noosa Mining Conference Presentation | November 2020 ABN 15 122 162 396 ASX Code: AMN
Slide 2: Important Notices and Disclaimers
Important Notices and Disclaimers Nature of Document Competent Person Statements This presentation has been prepared as a summary only, and does not contain all information about Agrimin Limited’s The information in this presentation that relates to Exploration Results for the Mackay Potash Project
Slide 3: Corporate Information
Corporate Information Capital Structure (as at 11 November 2020) Board of Directors ASX Code AMN Mark Savich Chief Executive Officer Share Price $0.60 Richard Seville Non-Executive Chairperson Shares 196.7m Brad Sampson Non-Executive Director Share Rights 8.0m Alec Pismiris Non-Executive Director &
Slide 4: Tier 1 Project in the World’s Best Mining Jurisdiction
Tier 1 Project in the World’s Best Mining Jurisdiction1 The flagship Mackay Potash Project is set to be the world’s lowest cost SOP producer Project Map o The Mackay Potash Project is the lowest cost, longest life, largest and most scalable Sulphate of Potash (SOP) asset being developed outside of A
Slide 5: The Premium Potash Fertiliser
The Premium Potash Fertiliser SOP is essential for high value crops and trades at a substantial price premium to MOP Muriate of Potash (MOP) Sulphate of Potash (SOP) o Standard source of Current Price1 Current Price2 o Chloride-free source of potassium and contains US$220/t US$400-550/t potassium an
Slide 6: Ideally Located Near Key Growth Markets
Ideally Located Near Key Growth Markets SOP will play a critical role in improving crop yields and achieving food security in South and Southeast Asia SOP Application Rates o Average crop yields for SOP crops range from c. 20-40kg/ha in China, Europe and USA – compared to yields Europe 44 kg/ha of o
Slide 7: Premium SOP Product Quality
Premium SOP Product Quality DFS pilot tests produced high-grade, water-soluble SOP product o SOP product samples from the Mackay Potash Project have consistently exceeded industry benchmarks (>52% K2O) o High quality SOP specifications are based on a conventional flowsheet and supported by extensive
Slide 8: Typical Bulk Commodity Project
Typical Bulk Commodity Project Four key project components including the mine, processing plant, logistics chain and export facility Schematic of the Mackay Potash Project o Brine will be extracted from Lake Mackay using trenches and transferred into on-lake solar evaporation ponds o Potash salts th
Slide 9: Lake Mackay is in a Class of its Own
Lake Mackay is in a Class of its Own The Mackay Potash Project is validated as Australia’s most strategic and valuable SOP asset Ore Reserves for Australian SOP Projects1 o Lake Mackay is the largest SOP-bearing salt lake in Australia covering an area of approximately 3,500km2 20.0Mt Probable Ore Re
Slide 10: DFS Sets a New Industry Standard
DFS Sets a New Industry Standard More than $40m invested to date o The industry's most extensive fieldwork programs have included: o 2 years of long-term trench pumping tests at 22 representative sites across Lake Mackay o 1½ year pilot evaporation trial on Lake Mackay with >100t of potash salts har
Slide 11: Total Ore Reserve and DFS Summary
1. Total Ore Reserve comprises a Proved Ore Reserve of 3.7Mt and a Probable Ore Reserve of 16.3Mt. 2. Refer to the ASX Release on 21 July 2020 for full Definitive Feasibility Study details. All material assumptions underpinning the production target and forecast financial information derived from th
Slide 12: SOP Price Outlook
SOP Price Outlook Price stability bolsters the investment case for the large-scale, long-life Mackay Potash Project Historical SOP Prices for 2010 to 2020 (US$/t)1 o Agrimin’s high-grade, water-soluble SOP product can compete 800 strongly against existing SOP products in the market 700 600 o DFS pri
Slide 13: Targeting the World’s Lowest Cost SOP Production
Targeting the World’s Lowest Cost SOP Production Primary brine producers have a clear cost advantage Global SOP Cash Cost Curve (US$/t FOB)1 o Agrimin to be the world’s lowest cost supplier of seaborne 450 SOP once in production 400 350 o Large portion of global SOP production relies on the high 300
Slide 14: Exceptional Cash Flow Margin
Exceptional Cash Flow Margin A long-life project that can be profitable though the commodity cycle Cash Flow Margin Per Unit of SOP Production (US$/t) o Lowest quartile cash costs are driven by: 600 o Economies of scale o Low-cost brine extraction via trenches and gravity flow 500 o Innovative wet h
Slide 15: Highly Competitive Logistics
Highly Competitive Logistics Fully integrated logistics chain will minimise re-handling and costs o Agrimin’s dedicated logistics solution can deliver the industry’s lowest transportation cost o Road trains will deliver SOP directly from the processing plant to an integrated storage and shiploading
Slide 16: A Globally Significant Potash Asset
A Globally Significant Potash Asset Mackay Potash Project is the largest SOP development project outside of Africa Country Forecast Annual SOP Production Rates for Projects at Feasibility Stage1 Company Dallol 600ktpa Colluli 472ktpa2 Lake Mackay 450ktpa3 Lake Disappointment 407ktpa Lake Sevier 338k
Slide 17: Targeted Funding Mix
Targeted Funding Mix Robust cash flow margin supports an attractive debt to equity ratio Targeted Project Funding Breakdown o Capital cost of US$415 million including contingency (excluding working capital and financing costs)1 o Northern Australia Infrastructure Facility (NAIF) continues to indicat
Slide 18: Indicative Development Timeline
Indicative Development Timeline Pathway to production is well-advanced with a current focus on off-take, project funding and approvals 2020 2021 2022 2023 2024 Decision Today To Mine Off-take & Funding FEED Commence Commence Commence Construction Pond Filling SOP Production Regulatory Approvals On-l
Slide 19: Set to be the world’s lowest cost SOP producer with a 40 year life
Set to be the world’s lowest cost SOP producer with a 40 year life Exceptional economics and high cash flow margin to underpin the delivery of project funding 20 World-class SOP Ore Reserve located in the MILLION TONNES world’s best mining jurisdiction Premium SOP product quality to drive strong cus
Slide 20: Office Contact: Investor Relations: Media Contact:
ABN 15 122 162 396 Office Contact: Investor Relations: Media Contact: 2C Loch Street Mark Savich Michael Vaughan Nedlands, WA 6009, Australia Chief Executive Officer Fivemark Partners T: +61 8 9389 5363 T: +61 8 9389 5363 T: +61 422 602 720 E: admin@agrimin.com.au E: msavich@agrimin.com.au E: michae
Slide 21: Appendix 1. Mineral Resource & Ore Reserve
Appendix 1. Mineral Resource & Ore Reserve Drainable Porosity Mineral Resource Estimate1 (JORC Code 2012) Measured & Indicated Resource Aquifer Inferred Total Mineral Resource Measured Indicated Total Zone Volume (Mm3) K (mg/L) SOP (Mt) K (mg/L) SOP (Mt) K (mg/L) SOP (Mt) K (mg/L) SOP (Mt) K (mg/L)
Slide 22: Appendix 2. Information Sources – Production Rates
Appendix 2. Information Sources – Production Rates Company Source Source Date Comments Yara International ASA (OSL: YAR) Corporate release titled “Yara to Sign Ethiopian 7 November 2017 Production rate of 600ktpa of SOP is based on proposed Mining Agreement” development plan. Danakali Ltd (ASX: DNK)
Slide 23: Appendix 3. Information Sources – Ore Reserves
Appendix 3. Information Sources – Ore Reserves Project / Company Source Source Date Comments Lake Mackay ASX announcement titled “Agrimin to be the 21 July 2020 Total Ore Reserve of 20.0Mt of SOP comprises 3.7Mt in the Proved Agrimin Limited (ASX: AMN) World’s Lowest Cost SOP Producer” (page 6) cate