Danakali Limited · OTC:SBMSF
Danakali — Proactive One2One Investor Forum (September 2019)
23 slides from Danakali's conference presentation, Sep 18, 2019
Slide 1: Low risk, high return, shovel ready SOP project
ASX: DNK / LSE: DNK / ADR: DNKLY Low risk, high return, shovel ready SOP project Proactive One2One Investor Forum Niels Wage, Chief Executive Officer London | Wednesday, 18 September 2019
Slide 2: Forward looking statements, disclaimer and contact
Forward looking statements, disclaimer and contact The information in this presentation is published to inform you about Danakali Limited (the “Company” or “DNK”) and its activities. DNK has endeavoured to ensure that the information enclosed is accurate at the time of release, and that it accuratel
Slide 3: Danakali and Colluli – Overview
Danakali and Colluli – Overview Danakali is an ASX- and LSE-listed company developing the low risk, high return, shovel ready Colluli SOP Project • Located in Eritrea, East Africa Danakali capital structure • Modular development approach Ticker: DNK A$ (ASX) £ (LSE) ― Module I to produce 472ktpa of
Slide 4: Fertiliser – SOP and the 3 key plant macronutrients
Fertiliser – SOP and the 3 key plant macronutrients Potassium is one of the 3 key plant macronutrients, along with Nitrogen and Phosphorous • Fertiliser is essential in yield improvement of the crops required to feed the rapidly growing global population • Sulphate of Potash (SOP) is a premium, envi
Slide 5: SOP – Strong demand fundamentals
SOP – Strong demand fundamentals 6000 12 Key demand drivers: Arable land per person (m2) Population (Bn) 1. Global population 5000 5,200m2 10 growth 9.8Bn 2. Reduction in arable 4000 8 land per capita 3. Changing dietary 3000 Up to 5.7Bn (2050) 6 preferences 4. Under-application 2000 3.6Bn (2000) 4
Slide 6: Colluli – The Danakil Depression
Colluli – The Danakil Depression The isolation, barren landscape and geological characteristics of the Danakil Depression allows Danakali to mine a potassium rich salt deposit while avoiding disruption to local communities and the environment • The Danakil Depression is one of the hottest, driest an
Slide 7: Colluli – Unrivalled scale
Colluli – Unrivalled scale Colluli is the largest known SOP Resource and Reserve, with the largest production potential and longest life of mine of its SOP development and production peers (ex China) Colluli Resource and Reserve Colluli production and life of mine Almost 200 years of 944ktpa SOP pro
Slide 8: Colluli – Quality Reserve with multi-commodity potential
Colluli – Quality Reserve with multi-commodity potential High grade solid salts from shallow deposit (16m below surface) and multi-commodity potential Established products Colluli potential product suite, including established SOP, SOP-M and Rock Salt products 8 Source: DNK website (http://www.danak
Slide 9: Colluli – Low risk, high return, shovel ready project
Colluli – Low risk, high return, shovel ready project • Open-cut mining • Commercially proven processing • Fully permitted with 85% recoveries • Front End • Only 230km by Engineering Design • EuroChem will road to the well- study complete take, pay, market established Port of • +/-10% accuracy and d
Slide 10: Colluli – First quartile operating costs
Colluli – First quartile operating costs Mine gate production costs for global SOP producers in 20181 Mannheim Process production Colluli FEED results included to demonstrate illustrative comparison High energy, high cost and 550 environmental issues2 Current North-West Europe FOB SOP price 500 450
Slide 11: Funding – Nearing completion
Funding – Nearing completion Credit approval for US$200M in CMSC senior debt, a key enabler for the remaining project funding requirement • AFC and Afreximbank have extensive experience in CMSC senior debt is set to provide the majority of project funding providing finance to African projects Uses S
Slide 12: Colluli – Sustainable, high impact development project
Colluli – Sustainable, high impact development project Colluli has the potential to create numerous benefits for Eritrea, including contributing to 13 of the 17 UN Sustainable Development Goals • UNDP reported Colluli’s potential contributions to Eritrea’s Sustainable Development Goals • Colluli hig
Slide 13: Investment case
Investment case ✓ Modular approach 1.00 2.0 Danakali is focused with low capital on building intensity shareholder value ✓ First quartile 0.80 1.6 Completion of operating costs project funding ✓ Long life asset with enables realisation Daily trading volume (M) 0.60 1.2 significant production Share p
Slide 14: Thank you
Thank you COLLULI MINING SHARE COMPANY ¥ a # a * i ip a Hf ES ce] tHiva HPP” cna SHIP
Slide 15: Eritrea – Asmara
Eritrea – Asmara Asmara, the capital of Eritrea 15
Slide 16: Eritrea – Asmara cont.
Eritrea – Asmara cont. Market in Asmara Storefronts in Asmara 16
Slide 17: Logistics – Massawa and Anfile Bay
Logistics – Massawa and Anfile Bay The Port of Massawa Anfile Bay – a potential site for port development 17
Slide 18: Colluli
Colluli Danakali and CMSC employees at the Colluli mine site Colluli mine site terrain 18
Slide 19: Appendix
Appendix Executive team and Board FEED results Binding offtake agreement with EuroChem Competent Persons Statements
Slide 20: Executive team and Board
Executive team and Board Strong, energetic and accomplished Executive team supported by experienced, multi-disciplinary Board Danakali Executive team Danakali Board Niels Wage Seamus Cornelius Bob Connochie Chief Executive Officer Non-Executive Chairman Non-Executive Director Significant potash, shi
Slide 21: FEED results
FEED results FEED confirmed Colluli as an advanced stage and economically attractive project relative to other SOP greenfield development projects • Globally significant production rates Key FEED economic estimates and outcomes1,2 Module I3 Modules I & II4,5 • Almost 200-year mine life at FEED 100%
Slide 22: Binding offtake agreement with EuroChem
Binding offtake agreement with EuroChem Provides cash flow certainty to unlock project funding • EuroChem will take, pay, market and distribute up to Danakali’s Executive Chairman and Chief Executive Officer 100% of Colluli Module I SOP production1 visited EuroChem’s Antwerp, Belgium fertiliser prod
Slide 23: Competent Persons Statements
Competent Persons Statements Competent Persons Statement (Sulphate of Potash and Kieserite Mineral Resource) Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20 Equiv. and 7% Kieserite. The Mineral Resource contains 303Mt @ 11% K20 Equiv.
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