Reward Minerals Ltd · ASX:RWD
Reward Minerals — Mac Equites Iconoclasts 2.0 (August 2018)
20 slides from Reward Minerals's conference presentation, Aug 3, 2018
Slide 1: Reward Minerals Limited – Iconoclasts 2.0 Presentation
REWARD MINERALS Developer of the LIMITED LD Brine SOP Project, the most compelling investment opportunity in the SOP space Mac Equites Iconoclasts 2.0 Presentation 3 August 2018 ASX | RWD www.rewardminerals.com
Slide 2: Forward Looking Statements & Disclaimer
FORWARD LOOKING STATEMENTS & DISCLAIMER This document includes forward-looking statements. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should”, and similar expressions are forward-looking statements. Although RWD believes that t
Slide 3: Contents
CONTENTS ►What is SOP? ►Global SOP Production ►LD Project Overview ►LD Project Metrics ►Upcoming Milestones ►Conclusions 3
Slide 4: What is SOP? Sulphate of Potash
WHAT IS SOP? SULPHATE OF POTASH Premium source of Potash (potassium) fertiliser K2SO4 (44.8% K, 55.2% S) ►An essential plant macronutrient; increases yields, water retention & disease resistance ►A (largely) chloride-free source of potassium and sulphur ►Sulphur also important nutrient, helps produc
Slide 5: What is Driving SOP Growth?
WHAT IS DRIVING SOP GROWTH? World Population Arable Land 12 0.35 10 0.3 Population in billions Hectares per capita 8 0.25 0.2 6 0.15 4 0.1 2 0.05 0 0 1975 2000 2025 2050 1975 2000 2025 2050 Source: FAO, USA Today, Company Analysis Demand driven by Grow forecast: at least 4% pa ► Increasing populatio
Slide 6: Where and How is SOP Produced?
WHERE AND HOW IS SOP PRODUCED? Mostly from high cost, secondary supply Primary supply from brines is the lowest cost source Yara Kokkola – 200ktpa Compass Minerals ▪ Mannheim Great Salt Lake – 300ktpa K+S ▪ Brine Aktiengesellschaft– 1,200ktpa Xinjiang Luobupo ▪ Salts/Mannheim Lop Nur – 1,300ktpa ▪ B
Slide 7: Brine 101 – Critical Success Factors
BRINE 101 – CRITICAL SUCCESS FACTORS GRADE & BRINE CHEMISTRY OPERATIONAL GEOLOGY ENVIRONMENT BRINE FLOW RATE JURISDICTION LOGISTICS CATCHMENT AREA SOCIAL LICENCE 7
Slide 8: How Does LD Stack Up with the CSFs?
HOW DOES LD STACK UP WITH THE CSF’S? GEOLOGY: GRADE/BRINE One large playa-style CHEMISTRY: OPERATIONAL deposit, 1,241 km2, up Highest average insitu ENVIRONMENT: to 90 m deep, low grade, favourable Highest evaporation, energy depositional chemistry lowest rainfall environment JURISDICTION: BRINE FLO
Slide 9: LD SOP Project – Location/Logistics
LD SOP PROJECT – LOCATION/LOGISTICS 866 km from site to Port Hedland A world class port exporting millions of tonnes per year 511 km sealed road to Port Hedland 355 km of existing, frequently used track First 250 km designed in detail from terrain models at +/-100mm accuracy 9 Source: See References
Slide 10: LD SOP Project – Flow Rates
LD SOP PROJECT – FLOW RATES ► 15 x 1.5 to 2 m deep trenches excavated (20 m – 1,000 m long) since 2016 ► Approximately 200,000,000 litres extracted to date ► Flow rates 6 to >100 litres/second/kilometre, 15 l/s/km used in PFS 10 Source: See References in Compliance Section of Appendix
Slide 11: LD SOP Project – Grade
LD SOP PROJECT – GRADE ► Over 150,000,000 litres brine pumped from 2 shallow, 1 km long trenches in the last 9 months ► SOP grades consistently close to/averaging 13,000 mg/litre ► PFS Operational Assumption: 10,000 mg/litre 11 Source: See References in Compliance Section of Appendix
Slide 12: LD SOP Project Metrics
LD SOP PROJECT METRICS • 407,500 tpa, > 9 Mt SOP produced over 27 year-life Production • Less than 10% of resource extracted • A$345 M, including indirects and owners costs (+/-20%) Capital cost • A$451 M, including contingency and pre-production costs • Cash cost – A$335/tonne (FOB Port Hedland) Op
Slide 13: Current Focus & Milestones
CURRENT FOCUS & MILESTONES* Funding ► Complete Entitlement Issue ► Strategic partner engagement Environmental Assessment ► Finalise ERD (EIA) for public review Build Corporate Depth and Capability ► The team to fund, permit, and develop LD Project Work ► R&D to deliver process improvements ► Resourc
Slide 14: Conclusion
CONCLUSION Reward’s investment rationale… The LD Brine SOP Project is technically robust ► Conservative PFS conducted to exacting standards (+/-20% accuracy) ► Flowsheet independently reviewed (ERCOSPLAN) … and economically attractive, with ► Scope to improve economics (e.g. grade, flow rate, cost r
Slide 15: Appendices
\ APPENDICES
Slide 16: PFS Results – Capital Costs
PFS RESULTS – CAPITAL COSTS Initial and Sustaining Capital Costs (LOM Real) AUD M Production - Trenches and Ponds 57.6 Process Plant 73.2 Infrastructure 108.8 Site Support Temporary Services 2.9 Construction Costs 59.2 Subtotal 301.7 Indirect Costs (EPC, Consultants, Commissioning) 20.0 Owners Costs
Slide 17: PFS Results – Cash Opex Costs
PFS RESULTS– CASH OPEX COSTS A$91/t A$102/t Other Opex Costs Closure – A$2/t Martu Royalty – A$7/t Road Maint - A$15/t FOB Cash Cost: Site Services - A$22/t A$344/t (US$258/t) EBITDA Margin: A$105/t ~44.6% @ US$500/t Ex-Works Cost: A$239/t (US$180/t) Source: See References in Compliance Section of A
Slide 18: LD – Development Schedule
LD – DEVELOPMENT SCHEDULE2 2018 2019 2020 2021 2022 2023 ACTIVITY Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Project Quarter Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Project Assessment and Approval EPA Assessment and Approval Feasibility Study Feasibility
Slide 19: Experienced Board & Management
EXPERIENCED BOARD & MANAGEMENT Colin McCavana – Non-Executive Director, Chairman Daniel Tenardi – Projects Director - 30+ years experience in mining and earthmoving industries - 25+ years mining experience with various organisations including the management, acquisition and development of including
Slide 20: Compliance Statements
COMPLIANCE STATEMENTS Competent person statements: This information in this report that relates to Resource Estimation and hydrogeology is based on information compiled by Mr Robert Kinnell, a hydrogeologist and Competent Person who is a Member of The Australian Institute of Mining and Metallurgy an
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