Apc Minerals Limited · ASX:APC
Apc Minerals — Australian Potash — Shareholder Meeting (November 2020)
18 slides from Apc Minerals's shareholder meeting presentation, Nov 25, 2020
Slide 1: Annual General Meeting Presentation
For personal use only Annual General Meeting Presentation WEDNESDAY 25 NOVEMBER 2020 VIBE HOTEL, SUBIACO 15:00
Slide 2: Disclaimer
Disclaimer Nature of this document This presentation has been prepared by Australian Potash Limited (APC or the Company). The information is based on publicly available information, internally developed data and other For personal use only sources. By receiving this presentation, you acknowledge and
Slide 3: 2020 in Review: Pathway, Progress, People
2020 in Review Pathway, Progress, People For personal use only • Offtakes 3 & 4 • Approvals • EPA Report • 1st offtake • STEM • SBM JV • Gold update Q2 Q4 • NAIF • EFA • 2nd offtake • 5th offtake • EPA: M&PW • ……tba and ERD Q1 Q3 3
Slide 4: 2020 in Review: Progress, People, Pathway
2020 in Review Progress, People, Pathway For personal use only Price ($) Volume (m) $0.18 Mkt cap 8.0 A$74.2m $0.16 7.0 $0.14 Mkt cap 6.0 $0.12 A$31.5m 5.0 $0.10 4.0 $0.08 3.0 $0.06 2.0 $0.04 $0.02 1.0 - - Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Volume Price www.australianpotash.com.au 2020
Slide 5: 2020 in Review: People, Pathway, Progress
2020 in Review People, Pathway, Progress For personal use only Project team Corporate team • Pond modelling Subcontractors • Offtake agreements • Process flow sheet • Financing structures • Contracting • Equity and debt • Schedule EPC Contractors • Treasury • Environmental • Corporate affairs Lake W
Slide 6: 2021 in Advance
2021 in Advance Pathway, Progress, People For personal use only 01 02 Offtake Program Environmental Approval • Currently at 100% of DFS output • EPA Report being considered by Minister • FEED program optimising output • Minor & Preliminary Works approval in place 03 04 NAIF, EFA & Funding FEED Final
Slide 7: Offtake Program
Offtake Program Premium project Premium fertiliser Premium partners For personal use only 20,000 tonnes for 30,000 tonnes for distribution through the distribution through USA European jurisdictions 50,000 tonnes for distribution through China 30,000 tonnes for distribution through South-East Asia 2
Slide 8: Financing the Build
Financing the Build NAIF, EFA, Commercial Debt, Equity For personal use only Export Finance Australia (EFA) Equity Northern Australia Commercial banks Final Investment Infrastructure Decision Facility (NAIF) Targeting Q1 2021 65% 35% 8 www.australianpotash.com.au 2020 AGM
Slide 9: Contracting Strategy
Contracting Strategy Risk Mitigation Shareholder Protection For personal use only 6 Packages EPC Contracted Why? Bids received: SOP process plant Schedule guarantee Bids received: Borefield fit-out & HV network Price guarantee Bids received: Power station Process guarantee Bids received: Comms & Vil
Slide 10: Renewable Power
Renewable Power Low C Footprint PLUS Renewable Power For personal use only Design & Construct Tender documents issued for D&C pricing Material impact on OPEX DFS power OPEX 19.5c/kwh: 26% of total Lowering the carbon footprint Future proofing against fiscal penalty regime Broadening market appeal Hi
Slide 11: Realistic Timeline to Development
The Lake Wells Sulphate of Potash Project Realistic Timeline to Development For personal use only Q1 Construction • Finalise Offtake Program • Finalise Debt facilities • NPI • Finalise EPC contracts • Process plant and load out • EPA Ministerial Statement • • FID Commence Development 2021 facilities
Slide 12: Essential Metrics
Essential Metrics Pre-FEED Results For personal use only ThePeer Lake Wells Sulphate of Potash Project Comparison The Company SOP Reserve (Proven & Probable) 3.6Mt Share Price (24 November 2020) $0.135 SOP Resource (100% Measured) – drainable 18.1Mt Planned production 150ktpa^ Shares on Issue1 549,6
Slide 13: ESG and Risk Management
ESG and Risk Management Skills and Governance For personal use only ▪ ASX Corporate Governance Structures ▪ ISO45001 Framework (Gold Standard) ▪ Continuous training and improvement ▪ Deep Commercial and Technical Experience ▪ 1:25 OH&S Professionals on staff ▪ Highly experienced and diversified Boar
Slide 14: Sustainability
Sustainability Respect for Community, Environment, Indigenous Culture & Stakeholders For personal use only Understand, Replacing a Respect, Protect material C footprint Employee Cultural Commitments High-penetration (c.60%) renewable power station Employment & tendered Contracting Opportunities 2020
Slide 15: Lake Wells branded SOP is a high-purity organically certifiable and soluble SOP
Lake Wells branded SOP is a high-purity organically certifiable and soluble SOP For personal use only Brine SOP = low cost Low cost, technically feasible bore- pumping operation to produce 17Gl of $12.000 Potash brine per year June 14/2022 Why MOP addition? $80,000 Capital efficiency: same bore-fiel
Slide 16: SOP Market
SOP Market Sulphate of Potash is the premium form of an essential non-substitutable plant fertiliser For personal use only 7M TONNES Essential US$450/t US$3.5B Market Size <1% Chloride/17% Sulphur High-margin SOP Global Demand • SOP = 10% of the global • Potassium is essential • Solar salt = lowest
Slide 17: SOP trades at a Premium to MOP
SOP Market SOP trades at a Premium to MOP For personal use only 600 550 500 450 400 US$/t 350 300 250 200 Aug 19 Dec 19 Apr 20 Aug 20 Jul 19 Sep 19 Oct 19 Feb 20 Mar 20 Jul 20 Sep 20 Oct 20 Nov 19 May 20 Jun 20 Jan 20 Nov 20 Stan.SOP bulk fob NW Eur Gran.SOP bulk fob NW Eur Gran.SOP bag fob E.Asia G
Slide 18: For personal use only
For personal use only Suite 31, 22 Railway Road, Subiaco WA 6008 admin@australianpotash.com.au +61 8 9322 1003
Australian Potash — Shareholder Meeting (November 2020) on 6ix