Slide 1: Kola DFS Presentation
Kola DFS Presentation January 2019 1
Slide 2: Cautionary statements
Cautionary statements This presentation (the “Presentation”) has been prepared and issued by the directors of Kore Potash plc (“Kore” or the "Company" and, together with its subsidiaries, the “Group”). By attending (whether in person or by telephone) or reading the Presentation, you agree to be boun
Slide 3: Company overview
Company overview Kore is developing its globally significant potash deposits in the Republic of Congo (RoC) Ideally located to supply the important Brazilian agricultural market and high growth African markets District scale development potential with over 6 Bt of potash Mineral Resources1 located 3
Slide 4: The Kola project - one deposit in a large potash district
The Kola project - one deposit in a large potash district Kola sylvinite Ore Reserves, Mineral Resources and Exploration Target (JORC 2012) Kola is a world class asset with Measured + Indicated long life production potential Mineral Resources1 508 Mt Inferred Mineral Resources1 340 Mt Exploration Ta
Slide 5: Comparing Kola to other MoP projects
Comparing Kola to other MoP projects Kola is amongst the shallowest MoP Kola amongst the highest grade undeveloped projects globally potash deposits globally • Shaft bottom 270 m below surface • Deposits of comparative grade to Kola are over • Shallow deposit creates opex and capex 1,000 m deep adva
Slide 6: Well situated for key export markets
Well situated for key export markets Product is planned to be shipped to Brazil and West Coast African markets where Kola potash will netback best value Brazil is a large and growing agricultural producer with low natural soil quality Brazil is one of the three largest US$87.63/t importers of potash
Slide 7: Kola DFS highlights
Kola DFS highlights Industry leading operating costs: average cost of MoP delivered to Brazil of US$102.47/t, potential to be the lowest cost potash supplier to Brazil NPV110(real) of US$1,452M and IRR1 of 17.2% on an ungeared, attributable basis Long life: nameplate production target of 2.2Mtpa MoP
Slide 8: Kola project configuration
Kola project configuration • Targeting production of 2.2 Mtpa1 • Shallow: shaft bottom of 270m • 35km to the coast via an overland conveyor and dedicated jetty for export to Brazil and West Africa • 90km via road to port of Pointe Noire for equipment imports 8 1. Refer Kore’s market announcement dat
Slide 9: Kola – low risk, industry standard flowsheet
Kola – low risk, industry standard flowsheet MINE Pocket Overland Conveyor Conveyor Shaft Continuous Miner Shuttle Car Belt Conveyor Attrition Primary Product Scrubbing Flotation Debrining Product Drying PROCESS PLANT Crushing Salt Sea Product Debrining Disposal Screening Compaction Deslime Raw Ore
Slide 10: DFS in numbers
Kola DFS in numbers Key statistics (100% basis) Annual cash profile (US$M)2 Y1 – Y5 LoM 800 Unit average average Total LoM 600 MoP production kt 1,829 2,155 71,129 400 200 Granular MoP price - US$M US$/t 360 360 360 Y1 Y3 Y5 Y7 Y9 Y11 Y13 Y15 Y17 Y19 Y21 Y23 Y25 Y27 Y29 Y31 Y33 Y-4 Y-2 (Real, CFR Br
Slide 11: Disruptively low cost of supply into targeted markets
Disruptively low cost of supply into targeted markets Global Potash Export Cost Curve1 (FOB) US$/t MoP (2022) The DFS demonstrates that Kola potentially will be: • The second lowest cost operation on an export cost basis at US$87.63/t FOB (real 2018) • The lowest cost supplier globally of potash to
Slide 12: Capital cost estimates
Capital cost estimates Pre-production capital cost estimates1,2 Capex and production volume Cost 1,000 Production 2,500 Description Construction (US$M) 800 2,000 Mining 346 US$ million Process Plant 495 600 1,500 ktpa Roads 63 400 1,000 Marine Facilities 179 200 500 General Infrastructure 309 - - En
Slide 13: Further optimisation of the DFS may yield additional value for shareholders
Further optimisation of the DFS may yield additional value for shareholders Impact of Potential Improvements Independent consultants have reviewed specific aspects of the project DFS Impact on Economic Evaluation Identified opportunities to further improve the Potential Improvement IRR NPV10 project
Slide 14: Kola Funding Plan
Kola Funding Plan Kola Project Development Debt: US$1.0 – 1.4B • Pre-production capital of US$2.1B plus funding for working capital will be required Debt • Target debt funding of US$1.0 to 1.4B • Export Credit Agency (ECA) financing expected to ECA comprise large proportion of debt financing mix • D
Slide 15: Kola - Timeline to Production
Kola - Timeline to Production 2019 2020 Y-5 Y-4 Y-3 Y-2 Y-1 Y1 Competitive EPC negotiations1 EPC Financing Offtake Construction Site Preparation Ground Freezing Shaft Sinking Jetty Construction Conveyor Construction Plant Construction Production Commences 15 1. If Kore exercises its right to seek a
Slide 16: Environment and Permitting
Environment and Permitting Project close to being fully permitted Mining Convention, which secures the fiscal and operating regime is in place Transshipment license approved Amended Kola Environmental and Social Impact Assessment (ESIA) submitted for approval Mining Convention provides for Republic
Slide 17: Kola Project next steps
Kola Project next steps French Consortium (FC) contractually obliged to deliver a proposal for an Engineering, Procurement and Construction (EPC) contract within 3 months of the DFS completion Upon receipt of an EPC proposal, the existing contract between the parties provides up to 2 months for Kore
Slide 18: Kola – investment summary
Kola – investment summary Long life at globally Low Operating Cost Advantageous location significant scale Potential to be: • Initial life of Kola of 33 years • Close to export markets • Industry’s lowest cost potash based on 2.2Mtpa1 MoP • Own jetty and transshipment supplier to Brazil (US$102.47/t
Slide 19: Appendix
ORE POTASH Appendix RY FROM THE GROUND UP
Slide 20: More potash needed to feed the world
More potash needed to feed the world The world will need to grow 50% more food … while global arable land per person is by 2050 to feed an anticipated population of declining sharply 9 billion people... 0.4 Hectares per person 0.35 0.3 0.25 0.2 0.15 0.1 1960 1964 1968 1972 1976 1980 1984 1988 1992 1
Slide 21: Potash supply and demand
Potash supply and demand 2017 Supply Total annual production of potash West Southeas (MoP) is around 66 Mtpa t Asia Europe 4.0 Mt 0.4 Mt East Asia 7.1 Mt At present this supply is largely met by North existing major suppliers including: America 65.0 Mt FSU 21.8 Mt 23.5 Mt • Urakali – 12.2 Mtpa • Nut
Slide 22: Potash historical prices
Potash historical prices 850 750 650 550 US$/t 450 US$360/t 350 250 150 Nov-04 Sep-07 Jul-10 May-13 Mar-16 Jan-19 Vancouver FOB Brazil Potash CFR Granular Source: Bloomberg 22
Slide 23: Kore's broader potash portfolio
Kore’s broader potash portfolio Dougou Extension Sylvinite Deposit • 232 Mt Mineral Resources1 • Grade 38.1% KCl • Contains some very high grade areas – 57 to 60% KCl • Mining licence granted, mining convention signed • Potential to provide feed to extend life or increase scale at Kola Dougou Carnal
Slide 24: Ore Reserves
Ore Reserves Kola Sylvinite Ore Reserves (gross 100% basis) Ore Reserves KCl grade Mg Insolubles Classification (Mt) (% KCl) (% Mg) (% Insol.) Proved 61.8 32.1 0.11 0.15 Probable 90.6 32.8 0.10 0.15 Total Ore Reserves 152.4 32.5 0.10 0.15 Notes: • The Kola Ore Reserves Estimate is reported in accord
Slide 25: Mineral Resources — Sylvinite
Mineral Resources — Sylvinite Sylvinite deposits (gross 100% basis) Contained KCl Mineral Resource category Million Tonnes Grade KCl % Million tonnes Kola Sylvinite Measured 216 34.9 75 Indicated 292 35.7 104 Sub-total (Measured + Indicated) 508 35.4 180 Inferred 340 34.0 116 TOTAL 848 34.8 295 Doug
Slide 26: Mineral Resources — Carnallite
Mineral Resources — Carnallite Carnallite deposits (gross 100% basis) Contained KCl Mineral Resource category Million Tonnes Grade KCl % Million tonnes Dougou Carnallite Measured 148 20.1 30 Indicated 920 20.7 190 Sub-total (Measured + Indicated) 1,068 20.6 220 Inferred 1,988 20.8 414 TOTAL 3,056 20
Slide 27: Exploration Targets
Exploration Targets The potential quantity and grade of an Exploration Target is conceptual in nature and is an approximation, and is expressed as an expected range of tonnes and grade. There has been insufficient exploration at Kola South and DX North to estimate Mineral Resources and it is uncerta
Slide 28: DFS delivery team
Kola DFS delivery team Scope of DFS Responsibility Project Management Geology and Mineral Resource Estimate Geotechnical and Hydrogeology Mining and Shafts Processing and Metallurgical Testwork Infrastructure and Utilities Construction Marine and Transhipment Environmental Marketing 28
Slide 29: Kola Mineral Resource classification
Kola Mineral Resource classification 29
Slide 30: Kola site layout
Kola site layout 30 Note: Refer Kore’s market announcement dated 29 Jan 2019 entitled ‘Kola Definitive Feasibility Study’
Slide 31: Kola opex detail
Kola opex detail Cost Category Real 2018 costs (US$/t MoP) Mining Cost 21.70 Processing Cost 25.77 General infrastructure Cost 4.57 Owners Cost 9.67 Mine Gate Operating Costs 61.71 Sustaining Capex 10.98 Product Realisation Charges and Allowances 1.89 Royalties 8.67 Ex Works Cost 83.25 Logistics to
Slide 32: Board of Directors
Board of Directors David Hathorn Chairman Brad Sampson Chief Executive Officer David was the CEO of the Mondi Group between 2000 and May Brad, a qualified mining engineer, has more than 25 years’ 2017 having joined the group in 1991. Prior to the demerger of resources industry experience across nume
Slide 33: Corporate snapshot
Corporate snapshot Key shareholders KP2 AIM share price / volume 18 25 Shareholder % interest 16 14 20 Volume (Millions) Princess Aurora Company Pte Ltd (SGRF) 19.02% Share price (p) 12 15 Sociedad Quimica y Minera (SQM) 17.52% 10 8 Harlequin Investments Ltd 12.02% 10 6 Dingyi Group Investments Ltd