Aguia Resources Limited · ASX:AGR
Aguia Resources — Investor Presentation (April 2019)
38 slides from Aguia Resources's investor presentation, Apr 1, 2019
Slide 1: Aguia Resources Limited April 2019
For personal use only April 2019 AGUIA Resources Limited ASX: AGR | TSXV: AGRL
Slide 2: Disclaimer
DISCLAIMER This document has been prepared as a summary only, and does not contain all information about Aguia Resources Limited (the “Company”) assets and liabilities, financial position and performance, profits and losses, For personal use only prospects and the rights and liabilities attaching to
Slide 3: Aguia: A Brazilian Resource Company
AGUIA: A Brazilian Resource Company Derisked phosphate project advancing towards production For personal use only Simple open pit with infrastructure in place; rail, road, power, town, regional fertilizer blenders Successful final community consultation completed Manaus São Luis Approval of En
Slide 4: 2017-2019 Achievements
2017-2019 Achievements For personal use only Oct 2017 Improved recoveries from March 2018 Aug 2018 Feb 2019 Feb 2017 June 2017 pilot plant testing Três Gold Acquisition Discover new Significant Sept 2017 Trade Off Studies Estradas findings in of Andrade mineralized zone OPEX & CAPEX Open office in o
Slide 5: Phosphate Forecast
Phosphate Forecast $105.00 For personal use only $100.00 $95.00 USD $90.00 $85.00 $80.00 $75.00 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Moroccan P2O5 grade is approximately 25% vs planned Três Estradas grade of 32% Três Estradas P2O5 has low heavy metals and radioactivity vs Morocco Strong, less vo
Slide 6: Brazil Outpaces Global Demand Growth
Brazil Outpaces Global Demand Growth For personal use only Brazilian Phosphate Demand 8 Brazil is a key driver for 7 global phosphate growth CAGR: 5.7% Demand >2x since 2000 6 Due to increased; 5 Harvested land area 4 Fertilizer application 3 rates 2 1 0 2000 2001 2002 2003 2004 2005 2006
Slide 7: Brazil Phosphate Demand by Region
Brazil Phosphate Demand by Region For personal use only 7 6.5 Million Tonnes North & 6 Northeast 13% 5 4.6 Imports 4 Mt Midwest 39% Midwest has been the 3 engine of growth, but is >1,000 km from major ports so logistic costs Southeast 18% 2 and delays complicate the fertilizer supply chain 1 1.9 Dom
Slide 8: Domestic Producer Cost Advantage
Domestic Producer Cost Advantage For personal use only Southern Brazil: 100% reliant on phosphate imports with no new mines planned or under development 45 days Currently consumes 1.2-1.5 Mt of phosphate imports from Morocco to annually; Aguia has a sustained cost advantage Rio Grande port Agu
Slide 9: Brazil's Soil Requires lots of Nutrients
Brazil’s Soil Requires lots of Nutrients The Case of Soybeans - 2017/2018 Statistics For personal use only Rising soybean production is driving phosphate demand – since 2000 CAGR 7% with yields up 31% and harvested area up 69% In 2018/19, Brazil is expected to overtake US as biggest soybean prod
Slide 10: Três Estradas Phosphate Project
aN tt "SOUR ESTRADA PHOSPHATE PROJECT
Slide 11: Três Estradas Summary
Três Estradas Summary Located in southern Brazil in the State of Rio Grande Du Sol For personal use only Open pit phosphate project, BFS completed March 2018, now awaiting permitting Phosphate present in rock as P2O5 (carbonatite) and will be concentrated for sale as “rock phosphate” to fertil
Slide 12: On the Pathway to Production
On the Pathway to Production For personal use only 1 2 3 Exploration Engineering & Permitting Construction Drilled 28,300 metres BFS complete March 2018 LI allows construction to commence Mineral Resource high Pilot plant tests confirm premium conversion from Inferred to recoveries and con
Slide 13: Rio Grande Do Sul: Três Estradas
Rio Grande Do Sul: Três Estradas JORC/43-101 compliant resource >100 Mt For personal use only 36 Mt Measured @ 4.01% P2O5 47 Mt Indicated @ 4.18% P2O5 21.8 Mt Inferred @ 3.67% P2O51 28,300 meters of drilling now complete Pilot plant scale flotation test results confirm excellent recoveri
Slide 14: Três Estradas Mining Plan
Três Estradas Mining Plan For personal use only Phase 1 Phase 2 Phase 3 Higher Grade Saprolite Carbonatite Aglime • Mine high grade oxidized ore at surface • Mine lower grade carbonatite ore & • Low strip ratio • Reclaim stockpile of stored aglime produce aglime by-product • Low processing costs for
Slide 15: High-Grade Oxide Ore At Surface
High-Grade Oxide Ore At Surface First 4-5 years of production will focus on shallow high-grade oxide in the first 25 to 30 For personal use only meters from surface Measured and Indicated resource of oxidized material occurring of 5.3 million tonnes grading 8.8% P2O5 with a cut-off grade of 3% P
Slide 16: BFS Confirms Robust Economics
BFS Confirms Robust Economics For personal use only Bankable Feasibility Study for the Três Estradas Project demonstrates the technical and economic viability of the project as a low cost producer of phosrock and calcite Existing infrastructure and proximity to market decrease construction costs
Slide 17: Sensitivity Analysis
Sensitivity Analysis For personal use only Sensitivity for Pre-tax, Unlevered NPV@5% 400 March 2019 BRL:USD exchange rate 360 320 NPV (M USD, Pre-tax) 280 240 200 P2O5 PRICE 160 OPEX CAPEX Saprolite 120 CAPEX Carbonatite Exchange Rate 80 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% -30% Três
Slide 18: Community and Government Outreach
Community and Government Outreach Named a priority development project by the Secretary of Economic Development of the Rio For personal use only Grande do Sul State Local outreach website launched for Três Estradas project providing information on development plans and positive impact on communi
Slide 19: Rio Grande Do Sul Belt Consolidation
Rio Grande Do Sul Belt Consolidation For personal use only Regional geological map highlighting the Três Estradas and Joca Tavares Satellite Image of the Mato Grande Carbonatite highlighting the auger carbonatites and the exploration targets: Santa Clara, Mato Grande, Porteira drilling program that
Slide 20: Timeline and Key Milestones
Timeline and Key Milestones For personal use only Três Estradas Project 2016 2017 2018 2019 2020 Future Resource Exploration & Development Drilling to Complete 43-101 Resource Reports Q3 2017 Permitting EIA-RIMA for Industrial Project Q3 2017 Environmental Permitting1 LP LI LO Q1 2019 Q1 2020 Q4 202
Slide 21: For personal use only
For personal use only
Slide 22: New Zone of Copper Mineralisation
New Zone of Copper Mineralisation Aguia has staked 52 tenements and acquired 8 For personal use only for a total of 86,187 hectares (861km2) within the prolific Rio Grande Copper Belt Recent acquisition of Primavera Project claims, including Andrade copper occurrence ANDRADE Mineralisation is
Slide 23: Andrade Copper Project
Andrade Copper Project For personal use only • Option agreement signed to acquire Primavera Project claims, including Andrade copper occurrence increasing Aguia’s holdings in Rio Grande Copper Belt by 9,282 hectares • Recent drilling returned interval of 28.77 metres grading 1.83% copper from 63.63
Slide 24: Andrade Cross Sections
Andrade Cross Sections For personal use only 28.77 @ 1.83% Cu, 3.84ppm Ag Including 19.39m @ 2.55% Cu, 4.54ppm Ag 24.34 @ 0.91% Cu, 7.69ppm Ag Including 12.55m @ 1.35% Cu, 10.53ppm Ag 12.75 @ 0.36% Cu, 4.19ppm Ag Including 1.55m @ 0.98% Cu, 11.84ppm Ag Andrade drill holes AND-19-001 and AND-19-002 A
Slide 25: Big Ranch: Initial Scout Drilling Complete
Big Ranch: Initial Scout Drilling Complete For personal use only Big Ranch Target highlighting the four Target Areas and drill hole locations Located along northern edge of Caçapava Granite – The target is characterized by significant copper- and-gold-in-soils anomalies as well as anomalous zinc a
Slide 26: Exploration advancing at Canhada
Exploration advancing at Canhada For personal use only Example of copper mineralisation at surface on the Canhada Target. Hydrothermally altered volcanic rock with malachite filling fractures in stockwork pattern. Sample grading 4.09% Cu. Copper in soil geochemical grid of the Canhada Target. Loca
Slide 27: Experienced Board & Management
Experienced Board & Management For personal use only Paul Pint, Executive Chairman David Gower, Non-Executive Director Mr. Pint, is a capital markets professional with over 20 years of Mr. Gower has over 25 years’ experience in the minerals industry including experience in senior positions at variou
Slide 28: Capital Structure & Financing Activities
Capital Structure & Financing Activities For personal use only AGR Performance YTD Fully Diluted Equity Ordinary Shares issued 164 m Options 7.9 m Warrants 20.3 m Fully Diluted 192 m Undiluted Market Cap at A$0.12 $20 m (28 March 2019) Fully Diluted Market Cap at A$0.12 $23 m 52 week range $0.09 - $
Slide 29: Competent Persons Statement
Competent Persons Statement For personal use only The Três Estradas Phosphate Project has a current JORC/43-101 compliant mineral resource which includes Measured Resources of 36 Mt grading 4.01% P2O5. Indicated Resources of 47 Mt @ 4.18% P2O5 and Inferred Resources of 21.8 Mt @ 3.67% P2O5. The Luce
Slide 30: For personal use only
For personal use only
Slide 31: Bankable Feasibility Study (BFS)
Bankable Feasibility Study (BFS) For personal use only 31
Slide 32: Três Estradas Mineral Resource
Três Estradas Mineral Resource Resource Volume Tonnage Density P2O5 as For personal use only Domain P2O5% Classification (m X 1,000) (T X 1,000 (T/m3) 3 Apatite (%) AMSAP 36 55 1.54 6.63 15.70 CBTSAP 491 796 1.63 10.18 24.11 Measured WMCBT 602 1,686 2.81 4.24 10.03 MCBT 11,619 33,004 2.85 3.85 9.12
Slide 33: Key Brazil Permits
Key Brazil Permits For personal use only • Most challenging permit milestone to obtain License (LP) Preliminary • Entails location, social and environmental approval of the project based on field studies and public hearings • Awarded by the Environmental Protection Agency of the State of Amazonas (I
Slide 34: Principle Assumptions
Principle Assumptions PhosRock Price Forecast (USD/t - FOB Morocco) For personal use only 187 172 142 131 131 129 131 132 133 124 127 122 120 116 115 109 96 97 98 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 The Bankable Feasibility Study (BFS) refer
Slide 35: Três Estradas Phosphate Permits
Três Estradas Phosphate Permits For personal use only 35
Slide 36: Rio Grande Copper Permits
Rio Grande Copper Permits For personal use only 36
Slide 37: Copper – Supply Deficit Looms
Copper – Supply Deficit Looms For personal use only 30 Highly Probable Projects 25 Base Case Production Capability 10 million tonne deficit 20 Primary Demand by 2028 Mt 15 10 5 0 1992 1997 2002 2007 2012 2017 2022 2027 Source: Wood Mackenzie, Q4 2014 37
Slide 38: Thank You
For personal use only THANK YOU