Agrimin Limited · ASX:AMN
Agrimin — Diggers & Dealers Mining Forum 2017
34 slides from Agrimin's conference presentation, Aug 7, 2017
Slide 1: Investor Presentation: Diggers & Dealers Mining Forum 2017
For personal use only Investor Presentation Diggers & Dealers Mining Forum 2017
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: Agrimin highlights
Agrimin highlights For personal use only ➢ Agrimin is developing the world-class Mackay SOP Project, the world’s largest undeveloped SOP-bearing salt lake ➢ The Project is 100% owned and located in Western Australia, a low-risk jurisdiction for a long-life operation ➢ Pre-Feasibility Study in progre
Slide 4: Corporate snapshot
Corporate snapshot Capital Structure (4 August 2017) Share Price Chart (1 July 2014 to 4 August 2017) For personal use only ASX Code AMN Long-term Shares 156.2m A$13.2m Pilot Trial $1.00 Positive Equity Commences Options 1.0m Scoping Funding A$2.7m Study Share Price A$0.50 $0.80 Equity Maiden Market
Slide 5: Key people
Key people Board ofof Board Directors Directors Management Management For personal use only Mark Savich | Chief Executive Officer Tom Lyons | General Manager Financial analyst (CFA) with 14 years of experience in the resources Geologist with experience in a range of commodities including industrial
Slide 6: Sulphate of Potash (SOP): Specialty Fertilizer for Modern Agriculture
For personal use only Sulphate of Potash (SOP) Specialty Fertilizer for Modern Agriculture
Slide 7: Commodity fertilizers are currently over-supplied
Commodity fertilizers are currently over-supplied… For personal use only ➢ Commodity fertilizers provide three macronutrients that every crop needs: ➢ Nitrogen (N) – the most important for healthy plant growth, such as leaf size, colour and yield ➢ Phosphorus (P) – vital for photosynthesis and enhan
Slide 8: Major fertilizer producers are adding value downstream
Major fertilizer producers are adding value downstream… For personal use only Potash mine Phosphate mine Sulphur Gas field Oil field Coal mine Sulphuric acid Synthetic gas Carbon dioxide Phosphoric acid Ammonia NPK K K P P NP Nitric acid NPK N N MOP & SOP SOP SSP TSP MAP & DAP (Mannheim) Ammonium ni
Slide 9: SOP is chloride-free potash & a high value product
SOP is chloride-free potash & a high value product… For personal use only ➢ 90% of all potash production is MOP (muriate of potash) which contains 46% chloride ➢ SOP (sulphate of potash) is chloride-free and vital for high value crops, such as fruits and vegetables ➢ SOP improves the nutritional val
Slide 10: SOP demand is growing rapidly
SOP demand is growing rapidly… For personal use only ➢ Demographic shift from rural to urbanised populations is increasing the consumption of fruits and vegetables SOP Demand (Deliveries) ➢ Agricultural pollution, water scarcity and technology are causing structural change in food production practic
Slide 11: SOP supply cannot keep up with growing demand
SOP supply cannot keep up with growing demand… For personal use only ➢ Current supply shortage of SOP is caused by Mannheim producers being unable to dispose of hydrochloric acid Major SOP Operations Overlayed on Population Density Mannheim Process: MOP + Sulphuric Acid = SOP + Hydrochloric Acid Glo
Slide 12: All major new SOP production is coming from salt lakes
All major new SOP production is coming from salt lakes... Installed SOP Capacity of Major Producers1 For personal use only ➢ Currently there are five major SOP salt lake operations, three of which started this last decade: 1,500,000tpa ➢ Archean Group at Rann of Kutch (2015) 1,200,000tpa Salt Lake ➢
Slide 13: SOP prices are incentivising new production
SOP prices are incentivising new production… For personal use only ➢ Prices for standard SOP products are currently US$500/t Potash Prices for Last 20 Years $1,200 $1,100 ➢ Since 2000, SOP demand growth has been 5.0% per year, $1,000 compared to MOP demand growth of 2.3% $900 $800 Price $700 ➢ Robus
Slide 14: Lake Mackay is set to be the next major SOP salt lake
Lake Mackay is set to be the next major SOP salt lake... Rann of Kutch – 7,500km2 For personal use only ➢ Size of SOP-bearing Salt Lakes Producing lake Undeveloped lake ➢ 2 Lop Nur Salt Lake – 5,500km 8,000 7,000 6,000 ➢ 2 Great Salt Lake – 4,000km 5,000 Area 4,000 (km2) 3,000 ➢ Lake Mackay – 3,500k
Slide 15: Lake Mackay is comparable to current SOP operations
Lake Mackay is comparable to current 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
Slide 16: Mackay SOP Project, Western Australia
For personal use only Mackay SOP Project Western Australia
Slide 17: Mackay is an industry leading project in Australia
Mackay is an industry leading project in Australia… For personal use only ➢ 100% owned and located in Western Australia, a low-risk jurisdiction for a long-life operation Mackay SOP Project Map ➢ Pre-Feasibility Study in progress and due for completion in Q4-2017 ➢ Major field program is ongoing, in
Slide 18: Key attributes support large-scale & low-cost production
Key attributes support large-scale & low-cost production… Agrimin’s tenements cover 3,325km2 in Western Australia, For personal use only ➢ including 2,621km2 of on-lake tenure Shallow Brine Resources Exposed in Trial Trenches ➢ Targeting SOP production of 370,000tpa over a 20 year life1, with potent
Slide 19: Low-risk development plan for a long-life operation
Low-risk development plan for a long-life operation… Project Layout ➢ Trenches 250km long For personal use only and 5.5m deep will extract 66.5GL pa of groundwater at 0.4% K ➢ Evaporation ponds start at 34km2 and expand to 59km2 over 20 years ➢ 2.5Mtpa of salt will be harvested at 8.0% K ➢ 370,000tp
Slide 20: Scoping study work tested the entire production process
Scoping study work tested the entire production process… ✓ Trial trenches support large-scale brine extraction For personal use only ✓ Geotechnical testwork supports unlined evaporation ponds ✓ Evaporation trial produced the targeted Potassium salts ✓ Process testwork produced high quality SOP (>52%
Slide 21: Scoping study indicates a compelling investment case
Scoping study indicates a compelling investment case… Scoping Study Material Assumptions and Outcomes For personal use only ➢ Study confirmed globally significant scale and compelling financial metrics Parameter Unit Value Development Period months 24 Operating Life years 20 ➢ Targeted SOP productio
Slide 22: Forecasted to have industry low capex & opex
Forecasted to have industry low capex & opex… For personal use only ➢ Industry low capital intensity of US$700/t, making the Project ➢ Bottom quartile cost, providing an opportunity to displace an attractive development proposition high-cost production from the Mannheim Process Capital Intensity for
Slide 23: Drill holes on a 5km grid have defined a shallow resource
98 holes on a 5km grid have defined a shallow resource… 2015 Aircore Drilling Program Map of Drill Hole Locations For personal use only 2016 Hollow Stem Auger Core Drilling Program Investor Presentation | Diggers & Dealers Mining Forum 2017 23
Slide 24: A shallow and contiguous deposit amenable to trenching
A shallow and contiguous deposit amenable to trenching… Mineral Resources of 23.2Mt of SOP1 (drainable brine) have been defined within the top 25m from surface For personal use only ➢ ➢ Lake Mackay is a single, shallow and contiguous brine deposit ➢ Brine commences at approx. 40cm beneath the surfac
Slide 25: Hydrogeology supports sustainable long-term extraction
Hydrogeology supports sustainable long-term extraction… For personal use only ➢ Hydrogeological model supports brine flow of 66.5GL (gigalitres) per year over 20 years from 5.5m deep trenches across a 250km network ➢ Lake Mackay is the end point of an enormous groundwater catchment area of approx. 8
Slide 26: On-lake geotechnics support large-scale unlined ponds
On-lake geotechnics support large-scale unlined ponds… For personal use only ➢ Full-scale ponds will cover less than 2% of Lake Mackay at the end of the operation’s proposed 20 year life ➢ Remoulded permeability values of 9.7 x 10-9 to 4.6 x 10-11 indicate suitable on-lake setting for unlined ponds
Slide 27: Similar to the Lake MacLeod Salt Mine in WA
Similar to the Lake MacLeod Salt Mine in WA… For personal use only ➢ Trenches and solar evaporation ponds are currently used throughout 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 u
Slide 28: Brine chemistry has produced high quality SOP samples
Brine chemistry has produced high quality SOP samples… Block Flow Diagram For personal use only ➢ Process testwork successfully produced commercial grade SOP samples (53.8% K2O) in October 2016 ➢ Process plant is planned have a conventional flowsheet and use standard types of plant and equipment Mac
Slide 29: Transport infrastructure in place & under-utilised
Transport infrastructure in place & under-utilised… Map of Transport Corridors 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 mining operations and communities ➢ Rail: Alice Springs is
Slide 30: Strong community desire for economic development
Strong community desire for economic development… For personal use only ➢ Agrimin has a strong working relationship with the local community and has a Land Access Agreement in place ➢ Agrimin is committed to developing a sustainable SOP operation in a manner that supports the Kiwirrkurra people in p
Slide 31: Project delivery schedule targets first production in 2021
Project delivery schedule targets first production in 2021. 2017 2018 2019 2020 2021 For personal use only Activity Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Pre-Feasibility Study (PFS) Native Title Mining Agreement Pilot Trial Environmental Approvals Definitive Feasibility Study (DFS) Regulat
Slide 32: Summary
Summary For personal use only ➢ Agrimin is developing a globally significant SOP project in one of the best mining jurisdictions in the world ➢ Robust outlook for SOP prices is supported by: ➢ Urbanised populations rotating to healthier diets ➢ Food production practices changing due to water scarcit
Slide 33: Contact details
Office Contact: 2C Loch Street Nedlands, Western Australia 6009 For personal use only Australia T: +61 8 9389 5363 E: admin@agrimin.com.au W: www.agrimin.com.au Investor Relations Contact: Mark Savich Chief Executive Officer M: +61 402 746 757 E: msavich@agrimin.com.au Media Contact: Michael Vaughan
Slide 34: Appendix 1. Mineral Resources Statement (JORC Code 2012)
Appendix 1. Mineral Resources Statement (JORC Code 2012) Mineral Resources – December 2015 (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