Arianne Phosphate Inc. · TSXV:DAN
Arianne Phosphate — Investor Presentation (November 2021)
26 slides from Arianne Phosphate's investor presentation, November 2021
Slide 1: Growing tomorrow’s food
Growing tomorrow’s food Investor Presentation November 2021
Slide 2: Phosphate Market
Phosphate Market Entering a new bull market for phosphate arianne-inc.com 2 TSX-V:DAN
Slide 3: Cautionary Statement
Cautionary Statement This presentation contains forward looking statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralisation and reserves, exploration results and future plans and objectives of Aria
Slide 4: What is Phosphate?
What is Phosphate? 1 of 3 macro nutrients § Not all phosphate is the same (igneous vs sedimentary) § Growing environmental concerns regarding rock quality in fertilizer ‒ EU legislation restricting cadmium content for imported phosphates ‒ Arianne is part of Safer Phosphates™ ‒ Persistent environmen
Slide 5: Other Uses of Phosphate
Other Uses of Phosphate § Over 85% of world phosphate production is used for fertilizer ‒ Expanded demand in specialty applications § Food preservatives § Animal feeds § Industrial processes § LFP (Lithium-Iron-Phosphate) batteries ‒ Growing acceptance of LFPs amongst car manufactures § Tesla § Volk
Slide 6: Global Phosphate Rock Market
Global Phosphate Rock Market § Demand: Major Importers of Phosphate Rock Supply is dominated by the Middle East & North Africa ‒ India: continued growth anticipated over near-medium § Morocco is the world’s largest term § Tunisia and Syria: unrest has severely curtailed/ended ‒ Western Europe: deman
Slide 7: The Business of Phosphate
The Business of Phosphate Arianne is the only large-scale source of independent phosphate rock from a low-risk jurisdiction projected to come onstream within the next few years § 85% of the world’s phosphate rock production is integrated § Profitability is challenged when third-party rock is relied
Slide 8: What is Driving this Fertilizer Price Rally?
What is Driving this Fertilizer Price Rally? Key Drivers in this Rally Fertilizer prices are rallying to an extent that has 1) Global grain & oilseed markets have tightened quickly not been seen in nearly a decade − China is on a corn and soybean buying spree 2) Decarbonization § Despite this rally,
Slide 9: Strong Outlook for Fertilizer Demand
Strong Outlook for Fertilizer Demand Corn - CME Increasing crop This agreement is yet another validation of prices is key Arianne’s Lac à Paul project…Arianne’s product in increasing fertilizer will now have an even greater global reach by demand & affordability leveraging on the operations and rela
Slide 10: Global DAP & Phosphate Rock Prices
Global DAP & Phosphate Rock Prices Select DAP prices have Tripled from its lows in 2020 Source: CRU arianne-inc.com 10 TSX-V:DAN
Slide 11: Lac à Paul: a World Class Project
Lac à Paul: a World Class Project § Fully permitted and construction ready § Tier 1 mining jurisdiction § Excellent access to infrastructure § Significant improvements since 2013 FS § Premium (up to 40%) P2O5 concentrate § Offtake and marketing agreements in place +26 472 78 1,000 C$12B YEARS MILLIO
Slide 12: Strategically Located
Strategically Located Mining and investment-friendly jurisdiction with well developed infrastructure in a stable and supportive environment Confirmed access to 129 MW of low-cost hydro power from Chute-des-Passes Power Dam Access to Global Markets Proposed New Port Infrastructure Distance from mine
Slide 13: Large Resource Base
Large Resource Base § 27,617 ha land package covers the world’s largest anorthositic complex § Identified 9 large-scale igneous phosphate rock zones § Zones remain open in multiple directions and at depth § Resource base capable of supporting a +50-year mining operation NI 43-101 Resource and Reserv
Slide 14: Lac à Paul Amongst the Largest Undeveloped Phosphate Projects
Lac à Paul is Amongst the Largest Undeveloped Phosphate Projects in the World 1ST in M&I resource tonnage 1 grade st in concentrate Largest Undeveloped Phosphate Projects Not Owned by a Major Fertilizer Producer 1000 40% Average P2O5 Concentrate Grade Tonnage Contained P2O5 Resource Concentrate Grad
Slide 15: Fully Permitted and Construction-Ready
Fully Permitted and Construction-Ready Received all Major Permits to Long-Standing Commitment to Social License to Operate Commence Construction Environmental Best Practices § December 22, 2015: granted Ministerial § June 2015: signed Cooperation Agreement § Successfully remained carbon-neutral Decr
Slide 16: Significant Improvements from the 2013 FS
Significant Improvements from the 2013 FS October 2013 Feasibility Study Significant Improvements since 2013 2013 FS Current Internal Estimate* § Conventional open pit mine and 55K tpd concentrator 91% - 93% ‒ Based exclusively on mining 472M tonnes of reserves at 6.88% P2O5 from the Paul Zone pit 9
Slide 17: High-Quality P2O5 Concentrate
High-Quality P205 Concentrate § Extensive metallurgical testing by COREM Labs 2013 Analysis from COREM Labs § Lac à Paul phosphate concentrate is very high quality P2O5 Concentrate Grade 38.6% ‒ Low CaO/P2O5 ratio, leading to low sulfuric acid consumption rates CaO 51.25% ‒ High P2O5 recovery and hi
Slide 18: Transportation Plan
Transportation Plan § Future phosphate concentrate to be transported ~240 Map showing the optimized trucking route km by truck from our processing plant to the deep- water port at Saint-Rose-du-Nord ‒ 2013 Feasibility Study factors costs of upgrading roads § Worked with Alcoa Innovation and National
Slide 19: Offtake and Marketing Agreements in Place
Offtake and Marketing Agreements in Place § September/December 2018: executed two long- term off-take agreements with major customers This agreement is yet another validation of Arianne’s Lac à Paul project…Arianne’s product ‒ Concentrate production to be shipped to the buyers’ will now have an even
Slide 20: Over a Decade in the Making…
Over a Decade in the Making… $160 Reached a market cap of nearly C$160M in 2012 $140 Market Capitalization (C$M) $120 $100 $80 $60 $40 $20 $0 Jan-2008 Jan-2009 Jan-2010 Jan-2011 Jan-2012 Jan-2013 Jan-2014 2008 2010 2011 2012 2013 2014 ü Arianne reactivates Lac à ü Scoping and metallurgical ü Metallu
Slide 21: & Well Positioned for Phosphate Recovery
& Well Positioned for Phosphate Recovery 2015 2016 2017 2018 2019 2020 2021 ü Expanded M&I resource of ü Exercised options on land ü MOU with Rio Tinto for ü Executed formal offtake ü Agency agreement with ü Metallurgical tests ü Extended the credit facility Paul Zone by 5% to 702.7M for future port
Slide 22: Downstream Opportunity: Belledune Project
Downstream Opportunity: Belledune Project § In October 2019, received a final report Flowsheet of Potential Downstream Processing demonstrating the value-added processing potential of Lac à Paul’s concentrates ‒ Production of 60% P205 merchant-grade acid (MGA), compared to the typical 52% MGA (highe
Slide 23: Capital Markets Profile
Capital Markets Profile Capital Structure Share Ownership Share Price and Volume (Last 12 Months) Ticker TSX-V: DAN Windermere Family of Retail & Other Funds Share Price (November 19, 2021) C$0.55 66.4% 7.5% 52-Week Trading Range C$0.17 – C$0.66 Investissement Quebec Basic Shares Outstanding 185.4M
Slide 24: Proven & Experienced Leadership
Proven & Experienced Leadership +200 years Dominique Bouchard │ Executive Chairman § 33-year veteran of Alcan and Rio Tinto, having most recently served as President of Rio Tinto Iron & Titanium until his retirement in May 2013 § Responsible for the operations and implementation of the strategy of c
Slide 25: Developing the Next Major Phosphate Mine
Developing the Next Major Phosphate Mine Premier, low- risk mining jurisdiction 3M tpy of Fully premium (up permitted & “The Lac à Paul project will be the lowest cost to 40% P2O5) construction- igneous producer when it comes on stream...” concentrate ready Lac à Paul: “Considering the high P2O5 con
Slide 26: Contact Information
Contact Information Jeffrey Beck │ CEO § 393 Racine St. E., Suite 200 § Tel: 1 607-783-2384 / 1 860-868-1385 § Chicoutimi, Quebec § Email: jeff.beck@arianne-inc.com § G7H 1T2, Canada Brian Ostroff│ President & Director § Tel: 418-549-7316 § Tel: 514-908-4202 § Email: info@arianne-inc.com § Email: br
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