Aguia Resources Limited · ASX:AGR
Aguia Resources — Investor Presentation (May 2013)
28 slides from Aguia Resources's investor presentation, May 14, 2013
Slide 1: Building a Brazilian Fertiliser Company
BUILDING A BRAZILIAN FERTILISER COMPANY For personal use only May 2013 AGUIA Resources Limited ASXRESOURCES AGUIA Code: AGR LIMITED 1
Slide 2: Disclaimer
DISCLAIMER For personal use only This document has been prepared as a summary only, and does not contain all information about the Company’s assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company’s securities.
Slide 3: Overview: World-Class Assets
OVERVIEW WORLD-CLASS ASSETS ■ BUILDING A FERTILISER COMPANY IN BRAZIL For personal use only Phosphate – Near Term Focus ✔ RIO GRANDE, new discoveries, Flagship Project ✔ 29Mt JORC resource at Tres Estradas ✔ Igneous carbonatite hosted phosphate ✔ 55% of mineralised target not yet drill tested ✔ Pot
Slide 4: The Opportunity: Why Brazil?
THE OPPORTUNITY: WHY BRAZIL? IMPORT DEPENDENT, CUSTOMERS For personal use only AN AGRICULTURAL POWERHOUSE ■ 4th largest consumer of fertilizer but only 4% of global fertilizer production ■ World’s fastest growing fertiliser market ■ Third largest global agricultural exporter ■ Forecast 5% CAGR will
Slide 5: Cost Advantage for Domestic Rock Producers
COST ADVANTAGE FOR DOMESTIC ROCK PRODUCERS For personal use only Suppliers of Phosphate Rock to Brazil Most imported rock to Brazil is from North Africa with typical logistics costs of between $50 - $70/t The Bayovar mine in Peru (Vale) has higher logistics costs, but low mining costs Sustained
Slide 6: Rio Grande do Sul Projects: A New Phosphate Province
RIO GRANDE DO SUL PROJECTS A NEW PHOSPHATE PROVINCE For personal use only The potential for a new world class phosphate province in southern Brazil Aguia has been first mover in region TRES ESTRADAS NEW DISCOVERY Large landholding over 860 km2 Large resource base potential New discovery Três
Slide 7: Brazil: Phosphate Carbonatite Mines
BRAZIL: PHOSPHATE CARBONATITE MINES For personal use only Company Mine Reserve Grade Concentrate Grade Prod. (Mt) P2O5 (%) P2O5 (%) Capacity (ktpa) (A) (B) (C) (D) Vale Tapira 1,309 7.69 35.5 2,030 Copebrás/ Anglo Ouvidor 257 7.63 38 1,300 Vale Araxá 89 11.12 35/33 910 Vale Catalao 224 8.96 36/34 1,
Slide 8: Tres Estradas: JORC Indicated & Inferred Resource
TRES ESTRADAS: JORC INDICATED & INFERRED RESOURCE For personal use only Total JORC compliant indicated (9.6Mt @ 4.96) and inferred (18.9Mt @ 3.88) resources for a total of 29Mt @ 4.3% P2O51 including higher grade oxide zone from surface of 1.6Mt @ 10.5% P2O52 Mineral Resource only covers 45% or 1.
Slide 9: Tres Estradas: Early Stage Potential Cash Flow
TRES ESTRADAS: EARLY STAGE POTENTIAL CASH FLOW For personal use only High Grade oxide results from surface – scoping for initial early cash flow Excellent mining parameters, easy access, low strip ratio Shallow High Grade Oxide From Surface
Slide 10: What Does It Look Like?
WHAT DOES IT LOOK LIKE? For personal use only Sample of Silicified weathered Carbonatite with values up to 32% P2O5 Oxidised Carbonatite at Surface to ~ 30 metres depth Sample of Fresh Meta-Carbonatite Fresh Carbonatite from ~30m depth
Slide 11: Tres Estradas: Railway & Easy Access
TRES ESTRADAS: RAILWAY & EASY ACCESS For personal use only Railway line Três Estradas is in rolling open countryside, mostly scrub, with some light grazing Phosphate mineralisation at surface
Slide 12: Tres Estradas: Excellent Preliminary Beneficiation Results
TRES ESTRADAS: EXCELLENT PRELIMINARY BENEFICIATION RESULTS For personal use only Initial metallurgical recoveries up to 83.4% and concentrate grades up to 36.0% P2O51 Results indicate the potential to produce a commercial concentrate using standard methods and reagents available in the market
Slide 13: Excellent Infrastructure Access to Markets
EXCELLENT INFRASTRUCTURE ACCESS TO MARKETS For personal use only • Excellent infrastructure with good road, rail, power, port and services • Railway within the project that goes north and south to Brazil and southwest to Argentina and Uruguay. • Franchise owner is América Latina Logística. RIO GRAND
Slide 14: Ideal Location: Southern Brazil Most Important for Phosphates
IDEAL LOCATION: SOUTHERN BRAZIL IS THE MOST IMPORTANT LOCATION FOR PHOSPHATES For personal use only Southern Brazil accounted for 69% of Brazil’s phosphate imports in 2012, including: • 74% of phosphate rock • 44% of Single superphosphate (SSP) Itacoatiara: 28kt Itaqui: 47kt • 77% of Triple superpho
Slide 15: Key Phosphate Markets: Rio Grande
KEY PHOSPHATE MARKETS: RIO GRANDE For personal use only The three southern States consume ~1.1 Mt P2O5 or ~ 30% of Brazilian consumption, SSP Capacity in Brazil, Uruguay with no phosphate mines in this region and Argentina Total Capacity = 9.0 M t MARKETS FOR ROCK CONCENTRATE Paranaguá RIO GRANDE
Slide 16: Tres Estradas: Development Options
TRES ESTRADAS: DEVELOPMENT OPTIONS For personal use only Phase 1: Near Term - Mine high grade oxide for cash flow to fund on-going development and Capex 2-3 years The Process – Internal Scoping commenced Mine rock, beneficiate by flotation Sell rock concentrate Phase 2: Longer Term – Large r
Slide 17: Rio Grande Province: Large Exploration Upside
RIO GRANDE PROVINCE: LARGE EXPLORATION UPSIDE For personal use only POTENTIAL FOR A WORLD CLASS CARBONATITE PROVINCE MORE DISCOVERIES
Slide 18: Lucena Project: Targets Increased Resource Potential
LUCENA PROJECT: TARGETS INCREASED RESOURCE POTENTIAL For personal use only Lucena ■JORC compliant inferred mineral resource of 55.1Mt @ 6.42% P2O51111 ■The mineral resource only covers a small part of the project area with room to expand ■An extensive land position, located close to existing infrast
Slide 19: Peer Comparison: Phosphates
PEER COMPARISON: PHOSPHATES For personal use only Global Potential Market Cap P2O5 Grade Company Code Location Resource Project Stage Deposit Style Market Diluted (A$m) (%) (MT)* Production expected Q2, MBAC Fertilizer Corp MBC: TSX Brazil Domestic $336.3 179.60 7.31% Sedimentary 2013 BRAZIL Rio Ver
Slide 20: The Team & Shareholders
THE TEAM & SHAREHOLDERS For personal use only Directors Potash & Phosphate Experts Graham Ascough - Non-Executive Chairman Alfredo Nunes - Exploration Manager - Phosphate – Over 21 years management and exploration experience evaluating resource projects globally, including Falconbridge in Brazil. –
Slide 21: Capital Structure
CAPITAL STRUCTURE For personal use only Capital Structure (8th May 2013) Share Price A$0.08 12 Month Price Range A$0.076 – A$0.26 Performance Shares Current Shares on Issue 126.1M Phosphate Performance Expire June 40.0M Performance Shares 120.0M Shares 2013 Potash Performance Expire 30 Fully Diluted
Slide 22: Atlantic Potash Project Highlights
ATLANTIC POTASH PROJECT HIGHLIGHTS For personal use only ATLANTIC POTASH PROJECT Adjacent to Brazil’s only operating potash mine Taquari-Vassouras Mine (Vale) produces <10% of country’s consumption, with reserves in place until 2019. Concurrently Vale is developing its Carnallita Potash Projec
Slide 23: Exceptional Discovery Potential
EXCEPTIONAL DISCOVERY POTENTIAL For personal use only ■ Historical exploration data obtained from Taquari-Vassouras Mine - Vale Brazilian Geological Survey Underground / Room and Pillar 700,000t KCl pa ■ Petroleum exploration and production Associated to Bull’s-eyes Gravity data – more than 300 well
Slide 24: Enquiries
For personal use only ENQUIRIES: SIMON TAYLOR – Managing Director & CEO Telephone: +61 2 9247 3203 staylor@aguiaresources.com.au www.aguiaresources.com.au ASX Code: AGR
Slide 25: Appendix 1: Phosphate Usage and Pricing in Brazil
APPENDIX 1: PHOSPHATE USAGE AND PRICING IN BRAZIL For personal use only Phosphate Demand by State in Brazil, 2011 Phosphate Rock Price, 2006 - 2012 ‘000 t P2O5 (‘000 tonnes P2O5) US$/t > 500 600 fob North Africa cfr Brazil 450 – 499 500 400 - 449 400 300 350 - 399 200 300 - 349 100 250 - 299 0 200 -
Slide 26: Appendix 2: Brazilian Border Zone
APPENDIX 2: BRAZILIAN BORDER ZONE RIO GRANDE TE AND JT PROJECTS For personal use only The Option: Aguia has an option to acquire the Rio Grande Projects TE and JT 100% for 5 million shares. The Issue: An historical throw-back to defence issues that concerned the former military government (1964 – ’8
Slide 27: Appendix 3: Tres Estradas JORC Inferred Resource
APPENDIX 3: TRES ESTRADAS JORC INFERRED RESOURCE For personal use only 1 SRK Consulting: cut-off grade of 3.0% P2O5)
Slide 28: Appendix 4: Lucena JORC Inferred Resource
APPENDIX 4: LUCENA JORC INFERRED RESOURCE For personal use only Initial JORC compliant inferred resource of 55Mt @ 6.42% P2O51 1 SRK Consulting: cut-off grade of 3.0% P2O5)