SOPerior Fertilizer Corp. · OTC:POTRF
SOPerior Fertilizer — Potash Ridge — Investor Presentation (July 2017)
26 slides from SOPerior Fertilizer's investor presentation, July 2017
Slide 1: Investor Presentation July 2017
Investor Presentation July 2017
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements in this presentation may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Potash Ridge Corporation (the "Corporation"), or in
Slide 3: About Us
ABOUT US Potash Ridge is bringing two potassium sulphate (SOP) fertilizer processes into production; one in Quebec and one in Utah TSX:PRK 3
Slide 4: Our Vision Is to Become the SOP Market Leader in North America
OUR VISION IS TO BECOME THE SOP MARKET LEADER IN NORTH AMERICA • SOP is highly sought after premium fertilizer • 1.5 million tonnes of unmet global demand • Includes 500k tonnes of unmet demand in North America • Only one existing producer North America Value • Valleyfield Project – only potential n
Slide 5: Project Overview
Project Overview Valleyfield Blawn (Quebec) Mountain (Utah) • 40,000 tpy of SOP • 230,000 tpy of SOP • Proven process • Lowest cost producer in North America (US $177/ton) • 15-month construction schedule • 3 years to production • Scalable / Potential franchise • Upside from expansion potential and
Slide 6: Potassium Sulphate Improves Yield and Quality
POTASSIUM SULPHATE IMPROVES YIELD AND QUALITY Which one are you buying? 6
Slide 7: Potassium Sulphate: Two Macronutrients in One
POTASSIUM SULPHATE: Two Macronutrients in One ALUNITE Nitrogen Sulphur Phosphate Calcium CRUSHING & GRINDING Potassium Magnesium CALCINATION SO2 ACID PLANT SUPHURIC ACID Potassium Sulphate (SOP) WATER LEACH Low chloride, high sulphur Significant benefits for fruits, vegetables, nuts Improves yield,
Slide 8: Potassium Application Improves Yield and Quality – Impact on Tomatoes
POTASSIUM APPLICATION IMPROVES YIELD AND QUALITY – IMPACT ON TOMATOES 100lb/acre 200lb/acre 300lb/acre University of Florida: Comparison of Potassium Sources and Rates For Tomato Production in Florida 8
Slide 9: Potassium Sulphate Eliminates Chloride Damage
POTASSIUM SULPHATE ELIMINATES CHLORIDE DAMAGE Clemson University, The Australian and New Zealand Field Peach and grape leaves suffering salt (chloride) damage Guide to Diseases, Pests and Disorders of Grapes 9
Slide 10: SOP: Superior Product with Attractive Market Dynamics
SOP: SUPERIOR PRODUCT WITH ATTRACTIVE MARKET DYNAMICS $US/ton SOP: A top performing commodity in last 5 years 800.0 SOP1 700.0 MOP2 600.0 500.0 SOP price influenced by high-value 400.0 crop economics not MOP price 300.0 200.0 100.0 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 201
Slide 11: Sources of Potassium Sulphate
SOURCES OF POTASSIUM SULPHATE POTASH RIDGE’S TWO SOP PROJECTS CHEMICAL REACTION: Mannheim Process SOP 50% of all SOP produced uses Mannheim Process VALLEYFIELD FERTILIZER CORP. (Quebec) Used in Asia, Middle East and Europe Soluble and granular form MINERAL PROCESSING: Alunite SOP Proven process BLAW
Slide 12: SOP Consumption Matches Local Available Production
SOP CONSUMPTION MATCHES LOCAL AVAILABLE PRODUCTION North America is Underserved 000’s tonnes 5000 4500 North American SOP Market 4000 Current Production: 400,000 tonnes/year 3500 Current Consumption: 500,000 tonnes/year 3000 Projected demand: 1,000,000 tonnes/year 2500 2000 1500 1000 500 0 North A.
Slide 13: Two Projects Strategically Located to Serve SOP-Demanding Crops
TWO PROJECTS STRATEGICALLY LOCATED TO SERVE SOP-DEMANDING CROPS Valleyfield Almonds Citrus Grapes Vegetables Apples Potatoes Lettuce Blawn Mountain Tobacco 13
Slide 14: One Product, Two Processes
ONE PRODUCT, TWO PROCESSES Valleyfield Blawn (Quebec) Mountain (Utah) • Proven Mannheim process • 230,000 tpy of SOP • 40,000 tpy of SOP • US $456M capex • Scalable • 20.1% after tax IRR • Construction contract with SNC • Lowest cost producer in North America (US $177/ton) • Granular and soluble SOP
Slide 15: Valleyfield Project
Quebec Valleyfield Project TSX:PRK
Slide 16: Valleyfield: Strategically Located
VALLEYFIELD: STRATEGICALLY LOCATED o Will be first SOP producer on North American east coast o Strong government support o Located in industrial area near Montreal, Quebec o Low capex – less than $60 million o Short build time: 15 months o 40,000 tonnes per year and easily scalable o Commercial arra
Slide 17: Proven Mannheim Process
PROVEN MANNHEIM PROCESS Converts MOP to SOP Raw Material 2-Stage Process Finished Products Proven production process POTASSIUM .84t (150 year history), CHLORIDE with numerous operating (MOP) facilities in Europe and China (50% of current SOP 1.0t POTASSIUM SULPHATE production is from Mannheim) (SOP)
Slide 18: Blawn Mountain Project
Utah Blawn Mountain Project TSX:PRK
Slide 19: Blawn Mountain Project (Utah)
BLAWN MOUNTAIN PROJECT (UTAH) 1 Area 2 Mining Zone 2 Processing Plant Location 3 Access Road 4 Area 1 Mining Zone 5 Ore Test Pit 4 5 3 • Drilling data has established 45+ years of reserves 2 • Over 100 years of potential production 1 • Ranked #11 mining jurisdiction globally(1) • 100% state-owned la
Slide 20: Blawn Mountain Project (Utah)
BLAWN MOUNTAIN PROJECT (UTAH) o Will be lowest cost producer in North America o Focused on serving California market with soluble SOP o Initial production rate of 255,000 tons per year o 45+ years proven + probable reserves o Permits and water rights secured o Off-take for sulphuric acid byproduct s
Slide 21: Experienced and Proven Management
EXPERIENCED AND PROVEN MANAGEMENT GUY BENTINCK ANDREW SQUIRES JAY HUSSEY Chief Executive Officer President & Chief Operating Officer President, Valleyfield Fertilizer • Chartered Professional Accountant • Over 30 years of international resource • Founder of Valleyfield Fertilizer Corp. • 20 years mi
Slide 22: Board of Directors
BOARD OF DIRCTORS • BRUCE DUNCAN Chairman • ARTHUR ROTH Vice Chairman • GUY BENTINCK Director and Chief Executive Officer • ANDREW SQUIRES Director, President and Chief Operating Officer • CHRIS REID Director (Chair of Audit Committee) TSX:PRK 22
Slide 23: Capital Structure
CAPITAL STRUCTURE CAPITAL STRUCTURE Common shares (basic) 136.2 million Warrants* 24 million Stock Options 11.7 million Common Shares (fully diluted) 171.9 million Current share price $0.20 Market cap $27 million *Warrants # Warrants Exercise Price Expiry Proceeds 6.5M $0.08 Nov. 2017 $511,000 6.5M
Slide 24: Near Term Catalysts
NEAR TERM CATALYSTS Valleyfield o Finalize additional SOP off-take agreements o Finalize combination debt and preferred share financing o Start construction Blawn Mountain o Finalize SOP off-take agreement o Obtain fixed price construction agreement o Confirm alumina upside assessment TSX:PRK 24
Slide 25: Investment Highlights
INVESTMENT HIGHLIGHTS o Pure SOP play – huge demand globally and in North America o East coast strategy: supply unmet demand with first local production facility o West coast strategy: as lowest cost producer, replace import supply & disrupt incumbent o Focus on non-dilutive project level financing
Slide 26: Potash Ridge Corporation contact
Potash Ridge Corporation 10 King Street East, Suite 300 Toronto, Ontario 416.362.8640 www.potashridge.com