Aguia Resources Limited · ASX:AGR
Aguia Resources — Investor Presentation (September 2014)
35 slides from Aguia Resources's investor presentation, Sep 30, 2014
Slide 1: Building a Brazilian Fertilizer Company
BUILDING A BRAZILIAN FERTILIZER COMPANY For personal use only September 2014 AGUIA Resources Limited ASXRESOURCES AGUIA Code: AGR LIMITED 1
Slide 2: Disclaimer
DISCLAIMER For personal use only This document has been prepared as a summary only, and does not contain all information about the Company’s assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company’s securities.
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS For personal use only ■ First mover in Rio Grande do Sul (RS) State in South Brazil with Rio Grande Phosphate project, a collection of new igneous carbonatite discoveries. ■ Strong phosphate demand from an established farming area currently importing 100% of its phosphate rock
Slide 4: Aguia Overview: Building a Brazilian Fertilizer Company
AGUIA OVERVIEW: BUILDING A BRAZILIAN FERTILIZER COMPANY For personal use only World Class Phosphate and Potash Assets Rio Grande Phosphate: ■ Igneous carbonatite-hosted deposit. ■ 9.9 Mt @ 5.03% P2O5 Indicated and 20.6 Mt @ 3.94% P2O5 Inferred JORC-Compliant Resource at Três Estradas (TE) – 55% of m
Slide 5: Brazil: Near-Term Investment Focus on Fertilizer
BRAZIL: NEAR-TERM INVESTMENT FOCUS ON FERTILIZER For personal use only Brazil: An agricultural powerhouse dependent on fertilizer imports Brazil is 4th largest consumer of fertilizer but only has 4% of global production 3rd largest consumer of P2O5 (behind China/India), 2nd largest importer of D
Slide 6: Near-Term Focus in South Brazil
RIO GRANDE DO SUL PHOSPHATE: NEAR-TERM FOCUS IN SOUTH BRAZIL For personal use only Southern Brazil imports a significant amount of phosphates Southern Brazil accounted for 70% of Brazil’s phosphate imports in 2013 Phosphate Imports to Southern Brazil, 20131 (‘000t product) Rio Porto Imbituba Paran
Slide 7: Infrastructure and market access
RIO GRANDE DO SUL PHOSPHATE: NEAR-TERM FOCUS IN SOUTH BRAZIL For personal use only Infrastructure and market access SSP Capacity in Brazil, Uruguay Road, rail, power, and port in close proximity and Argentina Railway goes from project area throughout Brazil, Total Capacity = 9.0 M t and to Argen
Slide 8: The potential for a new world class phosphate province in southern Brazil
RIO GRANDE DO SUL PHOSPHATE: NEAR-TERM FOCUS IN SOUTH BRAZIL For personal use only The potential for a new world class phosphate province in southern Brazil Aguia has been the first mover in the region Large landholding over 290 km2 Large resource base potential Lavras do Sul New discoveries
Slide 9: Três Estradas
RIO GRANDE DO SUL PHOSPHATE: TRÊS ESTRADAS For personal use only The Company’s primary focus is the Três Estradas deposit Total JORC-Compliant mineral resource estimate for Três Estradas: 9.9Mt @ 5.03% P205 (indicated) Current JORC- 20.6Mt @ 3.94% P205 (inferred)(1) Compliant resource over Includi
Slide 10: Encouraging preliminary beneficiation results
RIO GRANDE DO SUL PHOSPHATE: TRÊS ESTRADAS For personal use only Encouraging preliminary beneficiation results Results indicate the potential to produce a commercial concentrate using standard methods and reagents available in the market Metallurgical recoveries up to 58.4% and concentrate grade
Slide 11: Large Exploration Upside
RIO GRANDE DO SUL PHOSPHATE: LARGE EXPLORATION UPSIDE For personal use only World-class carbonatite province - Potential for further discoveries TRES ESTRADAS PHOSPHATE DISCOVERY PORTEIRA (UNTESTED) OPTION GROUND (IAMGOLD) JOCA TAVARES NEW DISCOVERY
Slide 12: Três Estradas South not yet systematically drilled
RIO GRANDE DO SUL PHOSPHATE: TRÊS ESTRADAS For personal use only Três Estradas South not yet systematically drilled ~Potential resource expansion~ Initial shallow auger drilling from Três Estradas South has returned excellent results with grades up to +20% P2O5. All holes in carbonatite have ended i
Slide 13: Joca Tavares
RIO GRANDE DO SUL PHOSPHATE: JOCA TAVARES For personal use only Joca Tavares is a new Carbonatite discovery 40 km east from Três Estradas Initial scout auger drilling has returned excellent results in carbonatite from surface with grades up to +13% P2O5. All holes in carbonatite have ended in minera
Slide 14: Conceptual Mining Study
RIO GRANDE DO SUL PHOSPHATE: CONCEPTUAL MINING STUDY For personal use only Conceptual Mining Study based on existing Três Estradas resource SRK Consulting (Canada) has prepared a conceptual mine plan based on the existing Três Estradas resource, which represents 45% of mapped strike length of the de
Slide 15: Conceptual Mining Study: Infrastructure
RIO GRANDE DO SUL PHOSPHATE: CONCEPTUAL MINING STUDY For personal use only Infrastructure On-site processing plant for 28% P2O5 concentrate @ 6,000tpd Local workforce from Lavras Do Sul (i.e. no LT on-site accommodation) Rail siding at existing railway ~2.5km from mine Power from Bagé (50km
Slide 16: Preliminary analysis indicates competitive economics for SSP
RIO GRANDE DO SUL PHOSPHATE: CONCEPTUAL MINING STUDY For personal use only Preliminary analysis indicates competitive economics for SSP Technical Parameters and OPEX Ultimate pit shell layout Technical Parameters Economic Parameters generated with price of Mining Recovery 95% $US/t SSP US$245/t SS
Slide 17: Next Steps
RIO GRANDE DO SUL PHOSPHATE: NEXT STEPS For personal use only Committed to building a world class phosphate project in South Brazil Expand Resource Expand mineral resource at Três Estradas Delineation drilling at Joca Tavares Metallurgy Pilot plant program to test column flotation to optimize
Slide 18: Aguia: Anticipated Timeline
AGUIA: ANTICIPATED TIMELINE For personal use only Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Drill Três Estradas South Drill Joca Tavares Três Estradas Pilot Test Joca Tavares Flotation Test TE Environmental Survey Resource and PEA Update Lucena Flotation Tes
Slide 19: Share Price Performance & Capital Structure
AGUIA: SHARE PRICE PERFORMANCE & CAPITAL STRUCTURE For personal use only Aguia (AGR-AU) Stock Price Performance $0.080 2,500 $0.075 2,400 $0.070 $0.065 2,300 $0.060 2,200 $0.055 2,100 $0.050 $0.045 2,000 $0.040 1,900 $0.035 AGR (LHS) XSR (RHS) $0.030 1,800 9-Dec-13 24-Mar-14 10-Feb-14 14-Apr-14 26-M
Slide 20: Directors
AGUIA OVERVIEW: BUILDING A BRAZILIAN FERTILIZER COMPANY For personal use only Directors David Gower – Interim Chairman – Over 25 years experience in the minerals industry including senior positions with Falconbridge Limited and Noranda Inc. Prakash Hariharan – Managing Director – Chemical engineer w
Slide 21: Enquiries
For personal use only ENQUIRIES: PRAKASH HARIHARAN– Managing Director info@aguiaresources.com.au www.aguiaresources.com.au ASX Code: AGR
Slide 22: Fertilizer Demand Factors
FERTILIZER DEMAND FACTORS For personal use only
Slide 23: The Need to Feed: Long-Term Investment Thesis for Fertilizer
THE NEED TO FEED: LONG-TERM INVESTMENT THESIS FOR FERTILIZER For personal use only Compelling long-term growth drivers; Need to secure supply Concentrated Supply and Security of Supply are the World Fertilizer Demand (Mt Nutrient) Key Concerns N P2O5 K2O Total Near-term Phosphate Rock market is ba
Slide 24: Brazil Phosphate: P2O5 balance forecast to remain in undersupply
BRAZIL: NEAR-TERM INVESTMENT THESIS FOR FERTILIZER For personal use only Brazil Phosphate: P2O5 balance is forecast to remain in undersupply Brazil’s current phosphate rock production is 5.4Mt Brazil Fertilizer P2O5 Supply* & Demand Balance (Mt) Base Supply 2013 Proposed Capacity* Demand Requireme
Slide 25: Brazil: Logistics advantage for local producers
BRAZIL: NEAR-TERM INVESTMENT THESIS FOR FERTILIZER For personal use only Brazil: Logistics advantage for local producers SUPPLIERS OF Most imported rock to Brazil is from PHOSPHATE ROCK North Africa with typical logistics costs TO BRAZIL of between $50 - $70/t Sustained logistics advantage for loc
Slide 26: Current phosphate rock mining and proposed production in Southeast Brazil
RIO GRANDE DO SUL PHOSPHATE: NEAR-TERM FOCUS IN SOUTH BRAZIL For personal use only Current phosphate rock mining and proposed production is in Southeast Brazil Table below reflects announced project capacities Lucena Proposed Phosphate Projects in Brazil and Phosphate Rock Production Capacity (tpa
Slide 27: Carbonatite-Hosted Igneous Deposits
RIO GRANDE DO SUL PHOSPHATE: NEAR-TERM FOCUS IN SOUTH BRAZIL For personal use only Carbonatite-Hosted Igneous Deposits Brazil mines are lower grade on Similar to Vale’s Cajati Phosphate Mine in Brazil average except Yara’s Siilinjärvi Current Producers Size Ore Grade Last FY Prod. Con. Grade mine. C
Slide 28: Brazilian Border Zone: Rio Grande TE and JT Projects
BRAZILIAN BORDER ZONE RIO GRANDE TE AND JT PROJECTS For personal use only The Option: Aguia has an option to acquire the Rio Grande Projects TE and JT 100% for 5 million shares. The Issue: An historical throw-back to defence issues that concerned the former military government (1964 – ’85) is that l
Slide 29: Três Estradas: Preliminary JORC Resource
RIO GRANDE DO SUL PHOSPHATE: TRÊS ESTRADAS For personal use only Preliminary JORC Resource (Indicated and Inferred) 1 SRK Consulting: cut-off grade of 3.0% P2O5)
Slide 30: Três Estradas
RIO GRANDE DO SUL PHOSPHATE: TRÊS ESTRADAS For personal use only Railway line Railway and easy access Três Estradas is in rolling open countryside, mostly scrub, with some light grazing Phosphate mineralization at surface
Slide 31: Lucena Phosphate Project
LUCENA PHOSHPHATE PROJECT For personal use only Lucena Potential for resource increase JORC compliant inferred mineral resource of 55.1Mt @ 6.42% P2O51111 The mineral resource only covers a potion of the project area with room to expand Extensive land position, close to existing infrastructure
Slide 32: Lucena: JORC Inferred Resource Estimate
LUCENA PHOSHPHATE PROJECT For personal use only JORC Inferred Resource Estimate for Sedimentary Deposit in Paraiba State Initial JORC compliant inferred resource of 55Mt @ 6.42% P2O51 1 SRK Consulting: cut-off grade of 3.0% P2O5)
Slide 33: Atlantic Potash Project
ATLANTIC POTASH PROJECT For personal use only Adjacent to Brazil’s only operating potash mine – Taquari-Vassouras Mine (Vale), which produces <10% of Brazil’s consumption, with reserves until 2019. Concurrently, Vale is developing its Carnallita Potash Project for 1.2Mt solution-mined KCl from c
Slide 34: Peer Comparison: Phosphates
PEER COMPARISON: PHOSPHATES For personal use only Market Gross In- Gross In- Company Deposit Last 52 wk 52 wk Shares Cap Situ Situ (By Development Stage) Ticker Crncy Location Type Stage Price High Low O/S (CAD) Tonnes P2O5 % Tonnes P2O5 % Mln Mln M+I Only M+I Only Inferred Inferred Construction/Pro
Slide 35: Peer Comparison: Phosphates
PEER COMPARISON: PHOSPHATES For personal use only Engineering Mining Product & Processing Cost Metrics Mine Phosrock Product Init. Sustaining OpEx (ex. Mine Last Strip Life Product Grade Recovery CapEx Capex Trans) Company Deposit Type Location Study Stage Ratio Years Mln tpa P2O5% Ratio % US$ mln U
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