Slide 1: Investor Update & Capital Raising October 2017
ASX Code: AEV For personal use only ASX: AEV ♦ ABN 48 116 296 541 INVESTOR UPDATE & CAPITAL RAISING OCTOBER 2017
Slide 2: Important Information
Important Information Disclaimer This document has been independently prepared by Avenira Limited (Avenira or the Company) and is provided for informational purposes only. This document does not constitute or contain an offer, invitation, solicitation or recommendation with respect to the purchase o
Slide 3: Important Information
Important Information Not financial product advice This document does not it constitute financial product advice or take into account your investment objectives, taxation situation, financial situation or needs. This document consists purely of For personal use only factual information and does not
Slide 4: Investment Highlights
Investment Highlights Avenira is a phosphate rock mining company. Our flagship asset, the 80%-owned Baobab mine in Senegal, is being positioned for a major capacity expansion. For personal use only Senegal is a stable and mining-friendly West African country Avenira owns a Indicated Resource of
Slide 5: Corporate Snapshot
Corporate Snapshot For personal use only CAPITAL STRUCTURE SUBSTANTIAL SHAREHOLDERS Ordinary shares on issue 601.6m Agrifos & Associates 24.7%2 Share price (market close 20 October 2017) A$0.056 Mimran Group 17.4% Market Capitalisation A$33.7m J.P. Morgan Asset Management 5.1% Debt (as at 20 October
Slide 6: Supportive Major Shareholders
Supportive Major Shareholders For personal use only Agrifos is a group of privately owned fertilizer development Under the banner of Groupe Mimran, the Mimran family companies has a long history of successful and socially responsible operations in Africa The owners of the Agrifos group have be
Slide 7: Board and Management
Board and Management Avenira’s Board and senior management are experienced in both the phosphate industry and in African mining operations. For personal use only Dr. Christopher Pointon – Non-Executive Chairman Dr. Louis Calvarin – Managing Director and CEO Respected mining executive with deep pub
Slide 8: Phosphate Market
Phosphate Market Phosphate is a key ingredient in fertilisers, which provide essential nutrients to soils, livestock & people, resulting in more food, better nutrition and healthier lives. For personal use only PHOSPHATE OVERVIEW DEMAND DRIVERS & PRODUCT RANGE Phosphate rock is mined from igneous
Slide 9: Baobab Project – Overview
Baobab Project – Overview PROJECT OVERVIEW PROJECT LOCATION For personal use only Sedimentary rock phosphate mineralisation 1,163 km2 exploration concession, one of several phosphate deposits in the Senegal Sedimentary Basin Open pit, free dig mining, with mining operations sub- contracted 1
Slide 10: Republic of Senegal
Republic of Senegal COUNTRY OVERVIEW LOCATION For personal use only Population 15.3M Languages French (official) Senegal Native African languages Mineral Africa sands Phosphates Government Presidential republic Dakar Currency West African CFA franc (pegged to €) BAOBAB Main Phosphate Basin Gold Prov
Slide 11: Baobab Project – Expansion Project
Baobab Project – Expansion Project EXPANSION OVERVIEW CURRENT FLOW SHEET For personal use only Current plant sub-optimal due to simple washing technique being used Run of mine • Low product recovery and production volumes, resulting in high unit costs and sub-optimal product quality Crushing (sub-
Slide 12: Baobab Project – Capital Estimates
Baobab Project – Capital Estimates CAPITAL COST: ESTIMATES For personal use only Concept level engineering work undertaken by Hatch indicates a capital cost estimate of US$53.4 million for the expansion and upgrade of the processing plant (± 30% basis, assuming contractor mining) • Includes direct
Slide 13: Baobab Project – Product Specifications
Baobab Project – Product Specifications POST EXPANSON PRODUCT SPECIFICATIONS PRICES VS. P2O5 CONTENT1 For personal use only 180 Most important characteristics for phosphate rock are: 160 • P2O5 content (higher is better) 140 Current benchmark price (32% P2O5, FOB Morocco) = US$89/t • CaO:P2O5 rati
Slide 14: Baobab Project – Operating Costs
Baobab Project – Operating Costs EXPANSION ESTIMATES BUSINESS COST COMPARISON For personal use only The expansion and upgrade project aims to place the Baobab CRU estimated ‘business cost’ curve for phosphate rock mine in a globally competitive unit operating cost position production includes si
Slide 15: Baobab Project – Downstream Integration
Baobab Project – Downstream Integration DOWNSTREAM PROCESSING CAPACITY POTENTIAL PARTNERS AND ATTRACTIVENESS For personal use only Ultimate goal of Baobab project is to have downstream Non-integrated fertilizer producers needing rock or processed capacity in addition to phosphate rock mining ferti
Slide 16: Expansion Funding Strategy
Expansion Funding Strategy Now For personal use only Entitlement Entitlement offer and placement offer to raise between A$13-15 million (before costs) and Placement 9-for-20 at a price of 4.8 cents / share Offers Foster Stockbroking Pty Ltd appointed as lead manager Close to fully underwritt
Slide 17: Proposed Expansion Timetable
Proposed Expansion Timetable Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 For personal use only CY17 CY18 CY18 CY18 CY18 CY19 CY19 CY19 Initial Hatch cost estimates Entitlement offer Resource update Expansion engineering / feasibility studies LMP grant Financing Final investment decision Construction First productio
Slide 18: Wonarah and JDC
Wonarah and JDC Avenira holds 100% of the Wonarah concession – a phosphate deposit in the For personal use only Northern Territory. It also owns a 7% stake in JDC Phosphate, and has the exclusive rights to use its IHP technology in Senegal and Australia. WONARAH PROJECT JDC PHOSPHATE 100% owned by
Slide 19: Appendices
For personal use only Appendices Page 18
Slide 20: Baobab JORC Resource
Baobab JORC Resource JORC RESOURCES1 For personal use only Indicated Mineral Resource within SMP of 27.2 Mt at 21.0% P2O5 Total Indicated Mineral Resource of 34.9 Mt at 20.7% P2O5 Total Inferred Mineral Resource of 156 Mt @ 18% P2O5 Tonnes P2O5 CaO MgO Al2O3 Fe2O3 SiO2 Mt % % % % % % Indicated
Slide 21: Key Risks (1 of 3)
Key Risks (1 of 3) The Company has released an offer document dated 24 October 2017 (Offer Document) which relates to its Entitlement Offer. The new shares to be offered under the Company's Entitlement Offer and Shortfall Offer (as such terms are defined in the Offer Document) (New Shares) are consi
Slide 22: Key Risks (2 of 3)
Key Risks (2 of 3) For personal use only Risk Overview Ability to attract key The Group's success depends, in part, on its ability to identify, attract, motivate and retain suitably qualified personnel management personnel. Competition for qualified and experienced staff is strong. The inability to
Slide 23: Key Risks (3 of 3)
Key Risks (3 of 3) For personal use only Risk Overview Bargy-Sendou Port The Group currently utilises the Port of Dakar for its shipments. At present the Port of Dakar has sufficient capacity for the Group. If the Group successfully expands and scales up the Baobab Phosphate Project then the Port of
Slide 24: International Offer Restrictions (1 of 3)
International Offer Restrictions (1 of 3) This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may For personal use only not be distributed to any person, and the New Shares may not be offered or sold,
Slide 25: International Offer Restrictions (2 of 3)
International Offer Restrictions (2 of 3) For personal use only International Offer Restrictions United Kingdom Neither the information in this document nor any other document relating to the Offers have been delivered for approval to the Financial Services Authority in the United Kingdom and no Off
Slide 26: International Offer Restrictions (3 of 3)
International Offer Restrictions (3 of 3) International Offer Restrictions For personal use only Greece The information in this document has been prepared on the basis that all offers of Entitlements and New Shares will be made pursuant to an exemption under the Directive 2003/71/EC (Prospectus Dire
Slide 27: Avenira Limited
For personal use only Avenira Limited ABN 48 116 296 541 www.avenira.com Suite 19, 100 Hay Street Subiaco, Western Australia 6008 AUSTRALIA PO Box 1704 West Perth WA 6872 AUSTRALIA +61 8 9264 7000 frontdesk@avenira.com 26