Apc Minerals Limited · ASX:APC
Apc Minerals — Australian Potash — Shareholder Meeting (November 2019)
25 slides from Apc Minerals's shareholder meeting presentation, Nov 20, 2019
Slide 1: Lake Wells Sulphate of Potash Project AGM Presentation
Australian Potash Limited For personal use only Lake Wells Sulphate of Potash Project Annual General Meeting Presentation | 18 November 2019
Slide 2: Disclaimer: Important Information
DISCLAIMER: IMPORTANT INFORMATION Nature of this document Competent Person’s Statement For personal use only This presentation has been prepared by Australian Potash Limited (APC or the Company). The The information in the announcement that relates to Mineral Resources and Reserves is based on infor
Slide 3: Corporate Snapshot
CORPORATE SNAPSHOT 0.14 For personal use only Capital Structure Amount 0.12 Shares on Issue 357,573,073 Share Price Range (12 Months) $0.135-$0.065 0.10 Share Price ($) Listed Options 0.08 (ASX: APCOA, 20¢, 10/2019) 37,594,906 0.06 (ASX: APCOB, 12¢, 08/2021) 47,850,135 Unlisted Options 0.04 (10c - 2
Slide 4: Lake Wells Project Financials
LAKE WELLS PROJECT FINANCIALS For personal use only Technically robust with attractive financial outcomes based on conservative assumptions DFS Results1 Financial Outcomes Outcome Units Mine Plan Units Pre-Tax Post-Tax Life of Mine Years 30 NPV8 (nominal) A$m 665 441 SOP Production Mt 4.5 IRR % 25 2
Slide 5: Lake Wells Project Schedule
LAKE WELLS PROJECT SCHEDULE For personal use only Key project activities to first construction Ministerial statement Binding Committed FID offtake project finance Oct Nov Dec 2020 Feb Mar Apr May Jun Jul Today Front end engineering design (FEED) Finalise binding offtake agreement Finance DD Early wo
Slide 6: Investment Case Summary
INVESTMENT CASE SUMMARY Flagship SOP asset: Lake Wells Potash Project - JORC2012 Measured Resource of 18.1Mt SOP and 3.6Mt For personal use only 1 SOP Reserve 2 150ktpa SOP production yields pre-tax NPV8 of $665m and IRR of 25% on total capex of $208m 3 Multi-generational mine life potential: 30 yea
Slide 7: Asset Overview and Locations
ASSET OVERVIEWAND LOCATIONS KEY INFORMATION Asset Locations For personal use only Ownership: Australian Potash Limited (100%) Commodity: Sulphate of Potash suite of products Operation Type: Bore-field (78 bore network) abstraction, solar salt evaporation and processing Deposit: Brine contain
Slide 8: Board of Directors
BOARD OF DIRECTORS For personal use only Highly Experienced Board Specialising in Project Execution 45 years’ experience in the resources industry, at both senior management and board level. Has previously held the position of Managing Director and Chief Executive Officer of WesTrac Pty Ltd, dur
Slide 9: Leading Industry Partners
LEADING INDUSTRY PARTNERS For personal use only Partner Contribution AQ2 - Independent water resources consultancy with expertise in Exploration, resource and reserve, borefield design, hydrogeology and hydrology process water supply Knight Piésold Consulting - Experts in engineering, Evaporation an
Slide 10: SOP Market – Demand and Pricing
SOP MARKET–DEMAND AND PRICING For personal use only Global population growth driving demand HISTORICAL PRICING MARKET DEMAND SOP premium over MOP averages US$269/t last five Global SOP demand CAGR 1.3% CAGR 2018 to years 2040 reaching 8.7mt in 2040 SOP Europe price last 5 years stable in the r
Slide 11: Marketing
MARKETING For personal use only Primary Macronutrient Fertiliser Market 3 Primary Macronutrients 2 Main Potash Types Nutrient Detail MOP (KCl) SOP (K2SO4) Helps transfer energy from sunlight to plants, stimulates early Annual root and plant growth, and hastens maturity. ~70Mt ~7Mt Phosphorous (P)
Slide 12: SOP Market – Demand and Supply Dynamics
SOP MARKET–DEMAND AND SUPPLY DYNAMICS For personal use only Current SOP production is dominated by high-cost Mannheim capacity GLOBAL FOB SOP COST CURVE, 2018 Mannheim capacity: high Brine mineralisation, long FOB cost (US$/t) energy, high cost, and evaporation timeframe environmental issues 540 Man
Slide 13: Target Markets & Offtakes
TARGET MARKETS & OFFTAKES For personal use only LSOP will produce high grade, premium suite of SOP products (53% K2O, <1% Cl, 17% S)* TARGET MARKETS Target markets include: Australia: 360ktpa of potash with opportunity to expand SOP China: c.4Mt SOP South East Asia and west coast USA (superi
Slide 14: Lake Wells Project Overview: Logistics & Infrastructure
LAKE WELLS PROJECT OVERVIEW For personal use only Desirable mining jurisdiction with simple shipping logistics LAKE WELLS LOGISTICS & INFRASTRUCTURE Location 160km from Laverton Build, Own, Operate (BOO) Gas fired power station Power Station & with total capacity of 12 MW Reticulation Trucked
Slide 15: Lake Wells Project Overview: Process Flow
LAKE WELLS PROJECT OVERVIEW For personal use only Proven process flow – 150,000tpa of SOP across Life of Mine Resource Abstraction Concentration JORC2012 measured resource of 18.1 Mt 17.5 GL/yr of naturally salty water (1.14 g/cm3) Evaporation of 14.1 GL/yr concentrates and 3.6 Mt reserve LOM is abs
Slide 16: Bore Field
BORE FIELD For personal use only Bore Field Pipeline Bore field design to abstract 540 litres/second over the life of mine Bore field comprises 78 bores across both lines and is approximately 77km Bore-field connected with reticulated powerlines and telemetry Australian Potash Limited Investor
Slide 17: Bore Field
BORE FIELD For personal use only Australian Potash Limited Investor Presentation Page 17
Slide 18: Evaporation Ponds
EVAPORATION PONDS For personal use only Evaporation Pond Features Evaporation ponds design based on grade and climate Buffer Pond (where brine is stored and released to buffer modelling completed by Novopro seasonable variations in evaporation) There are three ponds in the evaporation sequence
Slide 19: Evaporation Ponds
EVAPORATION PONDS PRE-CONCENTRATION PONDS ON PLAYA For personal use only HARVEST PONDS OFF PLAYA Australian Potash Limited Investor Presentation Page 19
Slide 20: Process Plant
PROCESS PLANT For personal use only Australian Potash Limited Investor Presentation Page 20
Slide 21: Process Plant
PROCESS PLANT For personal use only Processing facility designed to produce 150,000tpa of SOP from salts recovered from the harvest ponds and from MOP addition KEY PROCESS STAGES Harvest salts – loaded onto trucks and transported to processing plant Crushing – ensures all potassium bearing salts
Slide 22: Sensitivity Analysis
SENSITIVITY ANALYSIS For personal use only Scenarios on key sensitivities of the Project still deliver attractive financial returns 1000 30% 900 800 25% Pre-tax NPV (A$m) 700 Pre-tax IRR 600 20% 500 400 15% 300 200 10% (15.0%) (7.5%) 0.0% 7.5% 15.0% (15.0%) (7.5%) 0.0% 7.5% 15.0% Capex Variable Opex
Slide 23: Implementation & Approvals
IMPLEMENTATION & APPROVALS For personal use only EPCM project execution model with oversight from the Company’s team Quarters from FID (2) (1) 1 2 3 4 5 6 7 8 9 10 FEED Approvals & Permitting Engineering & Procurement Brine borefield & pond construction Plant construction Plant commissioning & ramp-
Slide 24: DFS Summary
DFS SUMMARY For personal use only Outstanding outcomes over 30 year mine life Pre-tax NPV8 of A$665M Annual pre-tax free cash flows of A$100M and Life of Mine (LOM) pre-tax free cash flows of A$3.1Billion Compelling economics: Pre-tax Internal Rate of Return (IRR) of 25% on robust operational
Slide 25: Australian Potash Limited contact details
Australian Potash Limited For personal use only Suite 31, 22 Railway Rd, Subiaco, WA 6008 www.australianpotash.com.au PO Box 1941, West Perth WA 6872 @OzPotash +61 8 9322 1003 ABN 58 149 390 394 Australian Potash Limited
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