IC Potash — Investor Presentation (June 2017)
22 slides from IC Potash's investor presentation, June 2017
Slide 1: Investor Presentation: Ochoa Polyhalite Project
Investor Presentation Ochoa Polyhalite Project June 2017
Slide 2: Disclaimer
Disclaimer Certain statements contained in or incorporated by reference into this presentation constitute “forward-looking statements.” Officers and representatives of IC Potash Corp. (the “Company”) may, in their remarks or in response to questions regarding this presentation, make certain statemen
Slide 3: Business strategy
Business strategy • Direct application polyhalite as a crop nutrient product (no chemical processing plant). • Shorter ramp-up timeline. • Lowest capital cost option. • Lowest execution risk. • Attractive financial metrics. • Retains SOP option at a later date. Discounted cash flow modelling of the
Slide 4: Project highlights
Project highlights • Fully permitted polyhalite deposit. • Simple mechanical processing, no chemical treatments. • One of the best ranking mining jurisdictions - New Mexico, USA. • Low capital intensity and operating costs. • Completed positive PEA on the Polyhalite Project in November 2016. • Speci
Slide 5: Mine design and processing facilities
Mine design and processing facilities • Conventional mining using a room- and-pillar mining method. • Approximately 80 million tons of mining is expected, which potentially translates to a 42-year mine life. • Heavy-duty underground continuous mining equipment. • Processing facility will consist of
Slide 6: Infrastructure and utilities
Infrastructure and utilities • Established roads and U.S. distribution by rail lines. • Easy access to ports. • Electricity and natural gas utilities. • Access to skilled labor force. Mehdi Azodi, President and CEO, June 2017 Slide 6
Slide 7: Sustainability
Sustainability • Elimination of chemical processing facility. • Elimination of evaporation ponds. • No tailings produced. • Reduced water required. • Reduction in injection well capacity. • Reduction in Reverse Osmosis plant requirements. • Reduced area of surface disturbance (approx. 1 mile square
Slide 8: Polyhalite K2Ca2Mg(SO4)4·2H2O
Polyhalite K2Ca2Mg(SO4)4·2H2O • Polyhalite is an evaporate mineral, a hydrated sulfate of potassium, calcium and magnesium. • Delivers secondary nutrients - S, Mg, Ca in addition to K. • Little chloride. • PH neutral. • Soluble but slower release ratio than other products. • Environmentally sustaina
Slide 9: Mineral resources
Mineral resources • Updated Mineral Resource estimate (Measured and Indicated) of 330 million tons. • Proposed production schedule extracting up to 2 million tons per annum (Mtpa) of polyhalite. • Approximately 38 years of steady state production. • Initial production is estimated to begin in 2019.
Slide 10: Ochoa Project mineral resource
Ochoa Project mineral resource Mass Resource Thickness Polyhalite Anhydrite Halite Magnesite (tons Class (ft) (wt.%) (wt.%) (wt.%) (wt.%) x106) Measured 4.65 150 89.92 2.13 3.25 6.41 Indicated 4.61 180 88.83 2.11 2.79 6.92 Mea + Ind 4.63 330 89.33 2.12 3.00 6.69 Inferred 4.60 40 88.70 2.11 2.77 7.00
Slide 11: Resource grade
Resource grade • 32 exploration drill holes completed. • Average polyhalite grade of 90%. • Resource grade is the key driver for the mining plan. Mehdi Azodi, President and CEO, June 2017 Slide 11
Slide 12: Potential polyhalite demand
Potential polyhalite demand Estimated Demand (tonnes/ • Polyhalite product will be shipped to annum) domestic and international customers. [CATEGO RY [CATEGO • Polyhalite based fertilizer currently NAME] RY NAME] constitutes a very small global market with only one in commercial production in small
Slide 13: Capital cost estimate
Capital cost estimate Capital Costs ($ million) Contingen cy 11% [CATEGO Area (WBS / Initial Sustaining [CATEGO RY Description) Capital Capital RY NAME] NAME] [PERCEN Mine $117 $182 [PERCEN TAGE] Process Facility $128 $146 TAGE] Storage / Loading $33 $36 [CATEGO Total Direct Capital $278 $365 RY NAM
Slide 14: Operating cost estimate
Operating cost estimate Operating Costs ($/ton) G&A Ops Storage / 7% Loading Cost per Ton Area [PERCEN Mined TAGE] Mine $24 Process Plant $12 Storage / Loading $5 G&A Operations $3 Total Operating Cost $44 [CATEGO RY NAME] Total estimated operating costs of $44/short ton [CATEGO [PERCEN mined, proce
Slide 15: Ochoa Project economics
Ochoa Project economics Project Economics Nominal polyhlaite production capacity (million tpy) 2.00 NPV (after-tax) $1.2B IRR (after-tax @ 8%) 28% Payback 2.6 years Polyhalite price ($/ton) ROM $203 Mine Life 42 years *Unlevered model; no escalation or inflation has been applied to the model Initial
Slide 16: Comparable projects
Comparable projects Mehdi Azodi, President and CEO, June 2017 Slide 16
Slide 17: Ochoa Project timeline
Ochoa Project timeline Taking the Ochoa Polyhalite project to the next stage of project development. Mehdi Azodi, President and CEO, June 2017 Slide 17
Slide 18: Technical consultants
Technical consultants Mehdi Azodi, President and CEO, June 2017 Slide 18
Slide 19: World class partner
World class partner Yara International ASA Financial Advantages • $40 million investment • 30% off-take (take or pay) • ICP retains 100% project equity Strategic Advantages • Top tier global distributor • Joint marketing opportunities Mehdi Azodi, President and CEO, June 2017 Slide 19
Slide 20: Experienced Board and Executive Team
Experienced Board and Executive Team Board of Directors Executive Team John Stubbs Mehdi Azodi Chairman, Independent Director President & CEO Ernest Angelo, Jr Kevin Strong Independent Director Chief Financial Officer Knute Lee, Jr Deena Siblock Independent Director Vice-President, Corporate Affairs
Slide 21: ICP snapshot
ICP snapshot TSX:ICP (CAD$) Share Price (2017-June-15) $0.06 Shares Issued & Outstanding (MM) 220.4 Market Capitalization $13.22M Options (MM) 17.5 Warrants 3,286,666 / $0.16 16,950,000 / $0.11 13,298,891 / $0.08 Cash Balance – June 15, 2017 $560K CAD 90 Day Volume (average) 249,096 Mehdi Azodi, Pre
Slide 22: Contact information
Contact information Mr. Mehdi Azodi President & CEO 416-779-3268 mazodi@icpotash.org www.icpotash.com Slide 22