Brazil Potash Corp. · AMEX:GRO
Brazil Potash — Investor Presentation (October 2023)
26 slides from Brazil Potash's investor presentation, Oct 17, 2023
Slide 1: Brazil Potash Corporation Corporate Presentation 2023
Apresentação da marca 1 potassio_logo_final_traco_negativo_cmyk.aiActionspotassio_logo_final_trac o_negativo_rgb.pngActions Brazil Potash Corporation Corporate Presentation 2023
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Brazil Potash Inc. (“Brazil Potash”, “Potassio do Brasil”, “BPC” or the “Company”). The Company is a pre-revenue development stage company. It does not purport to contain all the information that a prospective investor may require in connection with
Slide 3: An Asset of Global Food Security Significance Located in Brazil
An Asset of Global Food Security Significance Located in Brazil Strong fundamentals for potash global market 1 Long-term demand driven by population growth, increasing caloric consumption, finite amount of land, and nutrient depletion in soils Concentrated supply-side with strong price support a
Slide 4: Highlights by The Numbers of the Brazilian Market
Highlights by The Numbers of the Brazilian Market 2nd Largest Consumer Import Dependent Consumption Growth Brazil Market ~18% 98% 6.8% of global potash of Brazil’s potash Brazil CAGR2 of deliveries demand is imported1 Consumption to 2027 Production at Scale Quick Delivery ~86% lower Low Capital Inte
Slide 5: Brazil Potash's ESG Stewardship Reflected by MSCI Rating of 'A'
Brazil Potash’s ESG Stewardship Reflected by MSCI Rating of ‘A’ Environmental, Social & Governance Avoided Emissions from Significant Emissions Savings Support Brazil Decarbonization Displaced Imports Brazil Potash is using electricity ~80% generated by renewables1 Community Support +9,000 vaccinate
Slide 6: Potash Fundamentals: A key commodity to sustain the future
Potash Fundamentals: A key commodity to sustain the future • Potash 101: An essential agricultural nutrient for food security • Demand Drivers: Crop area & yields need to rise, increasing the need for potash • Global Supply & Demand: A large, growing and structurally attractive market • Supply Growt
Slide 7: There Are Primary Nutrients: Potash Is The Most Sustainable
There Are 3 Primary Nutrients: Potash Is The Most Sustainable Agronomic Benefits: Potash is the name for minerals that help provide potassium for plant growth Nitrogen (N) Essential to formation of ~90% of potash is applied in the agricultural sector and critical to protein, the most consumed nutr
Slide 8: Crop Area & Yields Need to Rise Increasing The Need for Potash
Crop Area & Yields Need to Rise Increasing The Need for Potash Growing Population Increasing Calorie Consumption Requires More Global Crop Production Population set to reach 9B people by 2045 Calorie consumption increases with income Crop production must increase to meet per capita growing populatio
Slide 9: Potash Is A Large, Growing Market With A Concentrated Supply Side
Potash Is A Large, Growing Market With A Concentrated Supply Side Expected Long term Potash Demand Global Potash Supply Profile 2020-2045 % of Global Million Tons of KCl (Mt)1 CAGR KCl Exports (% of Global Exports) KCl Exports 28 ROW 3% 26 South 3.2% 24 America Chile 1% 22 Rest of Asia 2.0% 20 Jorda
Slide 10: Attractive Brazilian Market
Attractive Brazilian Market Benchmark Prices, USD/ton 1200 1000 800 600 400 200 0 2018 2019 2020 2021 2022 2023 Brazil Spot, MOP Granular FOB China Contract, MOP Standard CFR Brazil is a spot market and key global benchmark Brazil is a fragmented market where product is typically sold on short ter
Slide 11: Zoom-In on Brazil: The #1 Global Potash Importer
Zoom-In on Brazil: The #1 Global Potash Importer • Brazil is the largest global importer of potash with nearly no domestic production • Brazil’s economy is heavily reliant on agri-business & the world is heavily reliant on Brazil • Pricing: Brazil Is one of the most valuable markets for potash produ
Slide 12: The World Is Heavily Reliant on Brazil for Agricultural Production
The World Is Heavily Reliant on Brazil for Agricultural Production World is Reliant on Brazil Agriculture Brazil Produces Daily Consumables Relative Change in Agricultural Land Use4 Exports in 2020/2021 2.5% Brazil Orange Juice 74% 1st 2.0% 1.5% Russia Coffee 32% 1st 1.0% Soybeans 50% 1st China 0.5%
Slide 13: Brazil Is The Largest Global Importer of Potash
Brazil Is The Largest Global Importer of Potash Highlights Brazilian MOP Imports by Source (2021) % Other Germany 5% 2 Second largest potash market globally 9% >80% of global consumption Canada is met by imports2 Israel 33% ~98% reliant on imports for supply of Potash (MOP) 7% 80% of global impo
Slide 14: Brazil is Vulnerable: National Fertilizer Plan Launched March 2022
Brazil is Vulnerable: National Fertilizer Plan Launched March 2022 National Fertilizer Plan - Highlights Infrastructure Investment Intended to reduce dependence on Governance and Logistics Attraction imports from 85% to 45% by 20502 and National Integration and with new International Relations marke
Slide 15: Brazil Potash has a strategic asset with defensible cost advantage
Brazil Potash has a strategic asset with defensible cost advantage • Well advanced project to near construction-ready state • Experienced management team backed by prominent local shareholders • Leading potash producers are rewarded with 9.5x EV/EBITDA multiples
Slide 16: Sustainable Potash Project with Attractive Financial Returns
Sustainable Potash Project with Attractive Financial Returns Project well advanced to near construction ready state Project By The Numbers ~US$235M raised to date for project development Estimated Reserve Project 23 Years Feasibility study and environmental & social impact assessments Life(1) co
Slide 17: Construction on Cattle Land Minimizes Impacted Trees
Construction on Cattle Land Minimizes Impacted Trees Current status of land – primary deforestation occurred decades ago by prior land owners Future vision – underground mine with minimal surface footprint Mine Shafts (2) Processing Plant Road to port PROPRIETARY & CONFIDENTIAL 17
Slide 18: Experienced Management Team and Sophisticated Shareholder Base
Experienced Management Team and Sophisticated Shareholder Base Select Executive Team Members Matt Simpson, CEO & Director Former General Manager Mine at Rio Tinto’s Iron Ore Company of Canada managing over $300M/y spend, all operations, maintenance and technical people to safely move >70 Mtpa Wo
Slide 19: Strategic Value: Delivered Cost Advantage
Strategic Value: Delivered Cost Advantage CFR costs to Mato Grosso (Brasnorte), nominal US$/ton, 2024 (major competitors)1 The primary differentiators between producers when delivering to the Brazilian market are the cost and time of the ocean freight Brazil Potash CIS (Uralkali and BPC) ICL (Sdom)
Slide 20: Potash Producers Rewarded with Strong Multiples
Potash Producers Rewarded with Strong Multiples Potash Producers Traded at 9.5x EV/EBITDA through last potash cycle1 Historical Potash Group Multiples2 vs. Potash Prices Average EV/EBITDA Multiple¹ 18.0x $1,350 12.0x 10.7x 16.0x $1,200 10.0x 14.0x $1,050 9.1x 9.2x 8.5x 12.0x $900 Potash Prices (USD/
Slide 21: Enabling Supply Security with Shorter Supply Chain
Enabling Supply Security with Shorter Supply Chain A shorter supply chain means shorter delivery times The total transit time1 when purchased from Brazil Potash could be 20x shorter Primary Global Potash Routes Canpotex Purchase Order to Load Vessel 2.5 Days Sea Freight to Brazil 47 Days Primary KCl
Slide 22: Enabling Supply Security by Being Closer to The Customer
Enabling Supply Security by Being Closer to The Customer Brazil Potash typically has a more efficient and shorter inland path to customers than importers Autazes is located only 8km from the Madeira River enabling efficient and reliable transportation to trucks that take product inland to key agricu
Slide 23: Signed Agreements with AMAGGI, One of the World's Largest Farmers
Signed Agreements with AMAGGI, One of the World’s Largest Farmers Offtake Agreement Binding take or pay terms & conditions for ~550k Amaggi Group is one of the largest private tons/yr of potash producers of soybeans in the world Plan is to have 80% of production under 10 year offtake agreement
Slide 24: Autazes Project Detail: Milestone Schedule
Autazes Project Detail: Milestone Schedule Key Permits to Start of Operation Preliminary License (LP) Installation License (LI) Operational License (LO)2 Applied for LI – In Progress Future Aug 2023 Location, social and environmental Provides authorization to initiate construction Grant of Min
Slide 25: Brazil Potash is a Compelling Investment Opportunity
Brazil Potash is a Compelling Investment Opportunity Food Security Brazil is the largest net exporter of food1, has abundant land & freshwater A domestic, in-market source of potash helps secure agricultural output and mitigate risk of global food and supply shocks Economics Brazil Potash aims to be
Slide 26: Thank You
Thank You 198 Davenport Road, Toronto ON, Canada