Gensource Potash Corp. · TSXV:GSP
Gensource Potash — Investor Presentation (October 2022)
26 slides from Gensource Potash's investor presentation, October 2022
Slide 1: The future of potash
TSXV: GSP AIM: GSP The future of potash TSXV:GSP, AIM:GSP October 2022 gensourcepotash.ca
Slide 2: Disclaimer
Disclaimer TSXV: GSP AIM: GSP Legal Notice The information contained in this presentation (the “Presentation”) is current as of the date hereof. There is no representation or warrant by Gensource Potash Corporation (the “Company” or “Gensource”) as to the accuracy or completeness of the information
Slide 3: Tugaske Project Summary
TSXV: GSP AIM: GSP Tugaske Project Summary ATTRACTIVE GLOBAL POTASH INNOVATIVE PLANNED 10-YEAR OFF-TAKE AGREEMENT DYNAMICS EXTRACTION METHOD SECURED OUR FIRST PROJECT IS EXPECTED SCALABLE, LOW-COST POSITIVE FORECASTED ‘SHOVEL-READY’ PRODUCTION FINANCIAL RETURNS gensourcepotash.ca 3
Slide 4: Transforming Potash
TSXV: GSP Click to edit Master title style Section 1 - Transforming Potash AIM: GSP A smaller carbon footprint was always part of our bigger plan. - Gensource 2022-10-24 gensourcepotash.ca 4
Slide 5: Feeding the world requires more potash
TSXV: GSP Feeding the world requires more potash AIM: GSP ~10 BILLION POTASH FUTURE FACING COMMODITY An estimated global population of Potash (or “KCl”) is a Potash is at the convergence approximately 10 billion in 2050 will necessary component in of global demographic, social require an increase in
Slide 6: This translates into a growing market for valuable potash
TSXV: GSP This translates into a growing market for valuable potash AIM: GSP Global Market Size Global potash demand expected to grow at a 2% CAGR per year, resulting in total expected demand of 88.7 million tonnes by 2035. Population up ~2.5 times since 1960, crops ~ 3.5 times, fertilizer ~ 4.5 tim
Slide 7: Retail Price Premium
TSXV: GSP Retail Price Premium AIM: GSP • Gensource’s 100% off-take agreement with HELM provides the Company with a pricing mechanism, via HELM’s extensive distribution network, that is tied to the retail sale price of potash − Retail prices have historically been at a sizeable premium to wholesale
Slide 8: Gensource aims to transform the way potash is extracted, produced and distributed
TSXV: GSP AIM: GSP Gensource aims to transform the way potash is extracted, produced and distributed OUR VISION OUR MISSION OUR VALUES Support food security by supplying Create a series of independent, The core priorities for Gensource are the world with a key macronutrient scalable, and environment
Slide 9: Current extraction and distribution for potash is unsustainable
TSXV: GSP Current extraction and distribution for potash is unsustainable AIM: GSP Conventional Potash Extraction Problems Conventional Potash distribution supply chain Producing potash is carbon-intensive, water-intensive and Potash is predominantly sold on wholesale markets, which means that leave
Slide 10: Gensource aims to extract potash with a lower environmental impact
TSXV: GSP Gensource aims to extract potash with a lower environmental AIM: GSP impact as compared to conventional extraction methods Our planned selective extraction method injects a hot salt (NaCl) brine into horizontal caverns in the ore body, to selectively dissolve KCl leaving salt in place. The
Slide 11: Planned vertical integration expected to reduce market risk and environmental impact
TSXV: GSP AIM: GSP Gensource’s planned vertical integration expected to reduce market risk and the environmental impact of distribution – Scope 3 is transparent VERTICAL INTEGRATION Our Target Market is Right in Our Backyard Direct to customer - forecasted higher margins Five core regions account fo
Slide 12: Planned approach is modular: scalable and replicable
TSXV: GSP AIM: GSP Gensource’s planned approach is modular: a scalable and replicable method that is designed to have a lower carbon and physical footprint Gensource believes technical innovation will allow it to create a series of independent, scalable and environmentally sustainable potash product
Slide 13: The Tugaske Project
TSXV: GSP Click to edit Master title style Section 2 – The Tugaske Project AIM: GSP 2022-10-24 gensourcepotash.ca 13
Slide 14: Tugaske Project highlights
TSXV: GSP Tugaske Project highlights AIM: GSP Designed minimum production of 250,000 metric tonne per annum of saleable MOP using the planned selective solution extraction method Technically and economically robust project Critical infrastructure already in place design • Located on or very close to
Slide 15: Tugaske is designed to deliver straight to the end-user through partnership with HELM
TSXV: GSP AIM: GSP Tugaske is designed to deliver straight to the end-user through partnership with HELM • Gensource has been working directly and transparently with our partner, HELM, since the start of the Tugaske Project of planned Tugaske − HELM and Gensource have completed an off-take Project p
Slide 16: KClean Potash Corporation special purpose vehicle to deliver the Tugaske Project
TSXV: GSP KClean Potash Corporation has been created as the special AIM: GSP purpose vehicle to deliver the Tugaske Project Proposed ownership structure of the Tugaske Project illustrated EQUITY 1 EQUITY 1 67% 33% Paid in capital and new equity Special Purpose vehicle A CANADIAN, SASKATCHWAN-BASED C
Slide 17: Tugaske anticipated to be a low-cost supplier
TSXV: GSP Tugaske anticipated to be a low-cost supplier AIM: GSP Average Retail Potash Price (October 2022) – US$ 958/tonne Tugaske Plant Forecasted Site Operating Tugaske potash is Costs expected to be C$85.08 /Tonne* (During Sask PPT Holiday) delivered within the Total delivered cost US$/tonne low
Slide 18: Tugaske Project planned funding, sources and uses
Tugaske Project planned funding, sources and uses TSXV: GSP AIM: GSP Sources 4 CAD$M CAD$M % Uses 4 CAD$M % Project Equity (Cash and In- Capex $318 68% $191 40% Kind) Project Contingency $34 7% Paid in Capital (Project Value) $36 Total Project $352 75% Cash Required $155 Cost Overrun Account $40 8%
Slide 19: Summary
TSXV: GSP Click to edit Master Section 3 – Summary title style AIM: GSP 2022-10-24 gensourcepotash.ca 19
Slide 20: Management team with a strong track record in innovation and delivery
TSXV: GSP Introducing a management team with a strong track record in AIM: GSP innovation and delivery Our team brings together technical expertise with delivery experience. The core Gensource team led Potash One’s development of the Bethune Mine – the only new potash development in Saskatchewan to
Slide 21: Invest in the future of potash with Gensource
Invest in the future of potash with Gensource TSXV: GSP AIM: GSP ATTRACTIVE GLOBAL POTASH DYNAMICS INNOVATIVE PLANNED EXTRACTION 10-YEAR OFF-TAKE AGREEMENT • Growing global population needs METHOD • Renewable take-or-pay off-take agreement with more food • Potash production designed to produce HELM
Slide 22: Public market overview
TSXV: GSP AIM: GSP Public market overview Capitalization (C$ millions, except per share amounts) Share Price Performance (52 Weeks) Share Price (as at Sep 30, 2022) $0.20 Fully Diluted Shares Outstanding (mm) 451.9 Share Price C$ Volume 1 Market Capitalization $90.3 1Note: On April 11, 2022, the Com
Slide 23: Appendix
TSXV: GSP Click to edit Master Section 4 – Appendix title style AIM: GSP 2022-10-24 gensourcepotash.ca 23
Slide 24: Strategically located in a potash-rich area, close to the US-Canada border
TSXV: GSP AIM: GSP We’re strategically located in a potash-rich area, close to the US- Canada border • Located in south-central Saskatchewan, a potash-rich area, only 360 km north of the US-Canada border • Over 70,000 acres of Crown Mineral Lands available for potash mining (Saskatchewan Government
Slide 25: Projected financial returns on Tugaske; our first project module
TSXV: GSP Projected financial returns on Tugaske; our first project module AIM: GSP Economic Before Sask. After Sask. Final Indicator1 PPT ($M) PPT ($M) 2 After-Tax ($M) 3 NPV8 (CAD$) $635.4 $454.4 $310.4 IRR 21.74% 19.47% 17.10% This discounted cash flow (“DCF”) analysis for the Tugaske Project use
Slide 26: Contact Information
TSXV: GSP Click to edit Master title style AIM: GSP Contact Information Mike Ferguson, President & CEO mike@gensource.ca m. +1.306.291.8221 Rob Theoret, VP Finance & Business Development rob@gensource.ca m. +1.306.290.7325 gensourcepotash.ca gensourcepotash.ca 26
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