Agrimin Limited · ASX:AMN
Agrimin — Investor Presentation (September 2016)
31 slides from Agrimin's investor presentation, Sep 2, 2016
Slide 1: Investor Presentation September 2016
ASX | AMN For personal use only Investor Presentation September 2016
Slide 2: Important Notices and Disclaimers
Important Notices and Disclaimers Nature of Document For personal use only This presentation has been prepared as a summary only, and does not contain all information about Agrimin Limited’s (“Agrimin” or “the Company”) assets and liabilities, financial position and performance, profits and losses,
Slide 3: Important Notices and Disclaimers – Scoping Study Cautionary Statement
Important Notices and Disclaimers Scoping Study Parameters – Cautionary Statement For personal use only The Scoping Study results, production target and forecast financial information referred to in this Presentation are based on low accuracy level technical and economic assessments that are insuffi
Slide 4: Company Highlights
Company Highlights For personal use only Agrimin is leveraged to increasing global food demand and the challenge of achieving food security SOP (sulphate of potash) is a specialty fertilizer with excellent market fundamentals and limited options for global supply growth The Mackay SOP Project
Slide 5: Mackay SOP Project – Project Map
Mackay SOP Project Project Map For personal use only A world-class salt lake asset with unparalleled capability and flexibility for brine extraction and pond construction Scoping Study indicates a production rate of 370,000tpa of SOP over a 20 year life, with potential to increase both operation
Slide 6: Corporate Snapshot
Corporate Snapshot Capital Structure Key Personnel For personal use only Share price (31/8/16) $0.48 Ordinary shares 123.9m Brad Sampson, Non-Executive Chairperson – Mining Engineer with 30 years of management and board Options 1.0m experience in the international resources industry. Has led the fin
Slide 7: Mackay SOP Project – Western Australia, 100% Owned
For personal use only Mackay SOP Project Western Australia, 100% Owned
Slide 8: Project Overview
Project Overview Location Map For personal use only Mineral Resources of 23.2 million tonnes of SOP (drainable) Extensive tenement package covering 2,560km2 100% owned and located in low-risk Western Australia Supportive local community and Native Title Land Access Agreement in place Excel
Slide 9: Path to Production
Path to Production Scoping Study Indicative Development Timeline and Historical Share Price For personal use only 2014 2015 2016 2017 2018 2019 2020 Share Price Activity Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 - $1.70 Project Acquisition - $1.60 Desktop Study -
Slide 10: An Industry Leader in Australia
An Industry Leader in Australia Large and near-surface SOP Mineral Resources defined (drainable) For personal use only Trenching and pump testing supports large-scale brine extraction Geotechnical testwork indicates excellent conditions for un-lined ponds Evaporation trial confirms suitable
Slide 11: Hydrogeology
Hydrogeology For personal use only Hydrogeological model supports continual brine flow at a steady state of 66.5GL (gigalitres) per year over a 20 year life Lake Mackay is the end point of an enormous catchment area of approx. 87,000km2 Model developed by independent consultancy and based on d
Slide 12: Example: Qarhan Salt Lake, China
Example: Qarhan Salt Lake, China For personal use only Qinghai Salt Lake extracts brine via 130km of trenching which is approx. 16m deep and has been operating for 50 years The pumping station shown below is used to pump approx. 60GL per year of brine to the evaporation ponds The entire operat
Slide 13: Example: Lake MacLeod Salt Mine, WA
Example: Lake MacLeod Salt Mine, WA For personal use only Trenches and solar evaporation ponds are currently used in Western Australia Rio Tinto extracts 29GL per year of brine from trenches and transfers the brine to evaporation ponds via an 8.5km feed channel The operation uses evaporation p
Slide 14: Benchmarking to Existing SOP Operations
Benchmarking to Existing SOP Operations Mackay, Australia Luobupo, China Great Salt Lake, USA For personal use only Extraction Method Trenching of Near Surface Brines Trenching of Near Surface Brines Pumping of Near Surface Brines Potassium Concentration 3,603 mg/L 10,413 mg/L 4,600 mg/L Lake Surfac
Slide 15: Conventional Production Process
Conventional Production Process Project Map For personal use only Extraction of brine is designed exclusively from trenches in the top 5.5m of the deposit Huge lakebed surface area provides the ideal geotechnical setting for large-scale solar evaporation ponds Process plant will use standard t
Slide 16: Scoping Study Highlights
Scoping Study Highlights For personal use only Study indicates a production rate of 370,000tpa of SOP Scoping Study Material Assumptions and Outcomes over a 20 year life Parameter Unit Value Development Period months 24 Operating cost is estimated to be in the bottom Operating Life years 20 quar
Slide 17: Industry Comparison
Industry Comparison For personal use only Agrimin is well positioned to become a globally Installed SOP Production Capacity (Top 10 Producers) significant SOP producer In the last decade there has been a shift towards environmentally friendly SOP production from salt lakes Qinghai Lenghu Bindi P
Slide 18: Capital Costs
Capital Costs For personal use only An industry low capital intensity of US$700/t, making the Project an attractive development proposition Total development capital cost of US$259 million Scoping Study Estimated Development Capital Costs Main Area US$m (A$346 million) Trenches & Ponds 48.9 Plan
Slide 19: Operating Costs
Operating Costs For personal use only An estimated bottom quartile mine gate cost, providing an opportunity to displace high-cost supply Average all-in sustaining cash cost of US$277/t FOB Scoping Study Estimated Operating Cash Costs (A$369/t FOB) Main Area US$m US$/t Site Processing 35.0 94.7 D
Slide 20: Transport Infrastructure in Place
Transport Infrastructure in Place Map of Transport Corridor For personal use only Road: Project is connected to Alice Springs via well-maintained sealed and unsealed roads which are used to transport fuel and supplies to communities Rail: Alice Springs is connected to shipping terminals via the
Slide 21: Community Relationships
Community Relationships For personal use only Agrimin has a strong working relationship with the local community and has a Land Access Agreement in place The Mackay SOP Project has an exciting potential to greatly improve employment opportunities for local people Agrimin is committed to workin
Slide 22: Sulphate of Potash (SOP) – Specialty Fertilizer for Modern Agriculture
For personal use only Sulphate of Potash (SOP) Specialty Fertilizer for Modern Agriculture
Slide 23: Sulphate of Potash (SOP)
Sulphate of Potash (SOP) For personal use only SOP is used on crops such as fruits, vegetables and tree nuts It improves the nutritional value, taste, appearance and shelf life of crops Its use is essential for chloride-sensitive crops and has advantages in saline and arid soils SOP contains
Slide 24: Potash Production
Potash Production For personal use only SOP market turnover is circa US$4 billion per year Global potash production was 67Mt in 2015, of which less than 10% was SOP Primary production (i.e. salt lakes) currently accounts for 2.3Mtpa or 40% of global SOP production Approx. 40% of global SOP p
Slide 25: Mannheim Process
Mannheim Process For personal use only Potassium chloride (MOP) is reacted with sulphuric acid, producing potassium sulphate (SOP) and a hydrochloric acid by-product MOP is the primary input and represents approx. 75% of the production cost for the Mannheim Process (current MOP price is US$219/t
Slide 26: Potash Prices
Potash Prices For personal use only Prices for standard SOP products are currently trading at approx. US$540/t (NW Europe FOB) Potash Prices – January 2012 to April 2016 Current weakness in MOP prices has had limited impact on SOP prices Key supply and demand fundamentals support the current S
Slide 27: Next Steps
Next Steps For personal use only Scoping Study provides a strong foundation for future activities Current infill drilling is aimed at upgrading the Mineral Resources in the Study’s production plan and to enhance geotechnical data Potassium salt samples are currently at the Saskatchewan Researc
Slide 28: Summary
Summary For personal use only Global food demand will increase and the challenge of achieving food security will intensify The trend towards low-cost and environmentally friendly SOP production from salt lakes will continue Western Australia is an emerging SOP province and Agrimin is leading t
Slide 29: Registered Office and Further Information
For personal use only Registered Office Further Information Level 9, 190 St Georges Terrace Mark Savich Perth, Western Australia 6000 Chief Executive Officer Australia M: +61 402 746 757 E: msavich@agrimin.com.au
Slide 30: Appendix 1. Mineral Resources (JORC Code 2012)
Appendix 1. Mineral Resources (JORC Code 2012) Mineral Resources – Total Porosity For personal use only Category Zone Depth (m) Volume (M m3) Average Total Porosity SOP Grade (kg/m3) Contained SOP (Mt) Indicated Upper 0.4 – 2.7 4,036 45.0% 8.41 15.0 Inferred Upper 0.4 – 6.0 7,047 45.0% 8.25 26.0 Inf
Slide 31: Appendix 2. Scoping Study Overview
Appendix 2. Scoping Study Overview For personal use only The Study is based on data collected and generated by Agrimin over the past two years Scoping Study Team Discipline Consultant Mineral Resources and hydrogeological modelling utilised Lead Engineer Lycopodium Minerals field and laboratory