Gensource Potash Corp. · TSXV:GSP
Gensource Potash — Investor Presentation (December 2017)
24 slides from Gensource Potash's investor presentation, December 2017
Slide 1: Corporate Presentation
Gensource POTA SH CORP Corporate Presentation TSXV:GSP December 2017
Slide 2: Disclaimer
2 Disclaimer This presentation does not constitute and offer to sell, or the solicitation for the offer to buy, the securities of Gensource. The scientific and technical information contained in this presentation has been reviewed and approved by Mike Ferguson, P.Eng., who is the President and Chief
Slide 3: Corporate Summary
3 Corporate Summary Highlights Focussed on developing 100%-owned ‘Vanguard 1’ project located in central Saskatchewan, Canada • Vanguard 1 Project is in the first quartile of all potash producers worldwide: sub-US$40.00/t cash costs • Lowest All-in Cash Costs in North America of US$170.31/t (deliver
Slide 4: Vision – Mission - Values
4 Gensource Potash Corp. Vision – Mission - Values Vision: Mission: Values: Create a series of Achieve food security The core priorities independent, scalable by supplying the world for Gensource are and environmentally with a key integrity, sustainable Potash macronutrient at an forthrightness, pro
Slide 5: Potash: Problem & Opportunity
5 Potash: Problem & Opportunity Supply Side Development of Crop Prices Demand Side Producers Suffer From: A Historical Overview: Customers Suffer From: ❖ Lack of Competition: Potash is ❖ Lack of Competition: Potash supply is 11.5 controlled by oligopolistic controlled by oligopolistic supply-side su
Slide 6: Gensource Value Proposition
6 Gensource Value Proposition To disrupt the existing supply chain by deploying innovative extraction methods and partnering directly 100% Potash 3. JV Partnerships Direct Delivery with potash users 2. Innovative Extraction Method Gensource Potash JVCo. Mineral Reserve Potash Partner Using brackish
Slide 7: High Quality Asset Base
7 High Quality Asset Base Saskatchewan Canada Bankable Feasibility Projects situated in world’s Compelling Project NPV and IRR 1 Study completed largest potash basin May 31, 2017 (unlevered – 100% Equity Base Case) Indicator Pre Sask. Profit Tax Post Sask. Profit Tax Strong local and provincial supp
Slide 8: Drilling & Geology – Reserves & Resources
8 Drilling & Geology – Reserves & Resources Gensource Potash’s ‘Vanguard 1 Area’ Mineral Resources were The mineral resources for the Vanguard 1 Project area have been estimated by Ordinary Kriging techniques using a grid model in estimated based on the principles established by the Guidelines on Ma
Slide 9: Vanguard 1 Cost Breakdown – CapEx
9 Vanguard 1 Cost Breakdown CapEx Breakdown Project economics includes fully drawn contingency expense Item ‘000 CA$ Contingency, Mining, 8.5% 9.1% Mining $ 23,738 Wellfield, 6.2% Wellfield $ 17,304 Process Plant $ 70,610 Project Indirects, Storage & Loadout $ 957 27.9% Process Plant, 25.2% Site Inf
Slide 10: Vanguard 1 Cost Breakdown – OpEx
10 Vanguard 1 Cost Breakdown OpEx Breakdown All-in costs per tonne of $US 95.97 (Ex Works) Cash Margins OpEx, Price/ Net $ Margin % Net $ Margin % $39.57 Shipping , Tonne No Shipping With Shipping $74.35 $225 $129.03 57% $53.68 24% $250 $154.03 62% $79.68 32% Sustaining CapEx, $11.66 $275 $179.03 65
Slide 11: Gensource Versus Traditional Miners
11 Gensource Versus Traditional Miners Vanguard 1 In First Quartile Conversion Cost per Tonne @ Capacity (USD) 200 180 160 140 Sustaining Capex 120 100 Opex 80 60 40 20 0 Source: Randle Green Consulting, CRU, Integer Research, Company Reports, Gensource Potash
Slide 12: Comparative Mining Methods
12 Comparative Mining Methods Conventional Selective Dissolution Specifications Conventional Solution Mining Vanguard 1 Min. Viable Production Rate 2.5 Mt/a 2.0 Mt/a 250 kt/a CapEx per Tonne (USS) $ 1,990 * $ 1,620 * $ 840 ** Operating Costs (US$) $ 80/t * $ 118/t * $ 39.57/t ** Development Time 7-1
Slide 13: Economics
Each module and partnership creates significant cash flows to Gensource Potash Corp, creating a potash streaming company 13 Economics Assumptions Gensource’s small-scale concept facilitates a development timeline of approximately two Resource/Engineering Investment $ 8,000,000 years from constructio
Slide 14: Development Timelines
14 Development Timelines Proposed production horizon less than 3 years 2016 2017 2018 2019 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PEA / Scoping Study Completed Market Partner JV Vanguard Potash Corp. Announced Exploration Drilling Completed NI 43-101 Resource Update Completed 3D Seismic Completed
Slide 15: Development Upside: Project 2
15 Development Upside: Project 2 Overview Resource Area A second project area, known as the ‘Lazlo Project’, is also The resource in the Lazlo area is rich and widespread, and is an ideal candidate for a selective dissolution operation. located along a well-serviced infrastructure corridor. Located
Slide 16: Management & Board
16 Management & Board Management Directors Mike Ferguson, P. Eng. - President & CEO Mike Ferguson, P. Eng. - President & CEO Led the world-class team that developed Potash One’s Legacy Project, Led the world-class team that developed Potash One’s Legacy the only Saskatchewan greenfield potash develo
Slide 17: Capital Structure
17 Capital Structure 52-Week Stock Performance Market Capitalization $27.0 Million $0.25 Recent Share Price $0.85 $0.20 52 Week Range $0.06 - $0.24 Basic Shares Outstanding 293 M $0.15 Options 27.4 M Warrants 50.1 M $0.10 Broker Warrants 4.0 M Cash Position ~ $800k $0.05 Debt $0 Management, Director
Slide 18: Contact Us
18 Contact Us Mike Ferguson, P. Eng. Rob Theoret, B.Comm., CIM President & CEO CFO mike@gensource.ca rob@gensource.ca 306-974-6414 306-974-6406 Suite 1100, 201 1st Ave. South Website Saskatoon, Saskatchewan www.gensource.ca S7K 1J5
Slide 19: Appendix
Appendix Gensource POTASH CORP
Slide 20: Technical Strength
20 Technical Strength These individuals, together with Mike Ferguson, comprised the core Potash One team responsible for the project’s success Max Ramey, P.Eng. – Solution Mining Solution mining lead for the Potash One - Legacy Project (as well as the Rio Tinto - Potasio Rio Colorado Project in Arge
Slide 21: Existing Mines have Environmental Issues
21 Existing Mines have Environmental Issues Gensource is NOT a conventional Potash Mine Gensource facility is 300 metres by 300 metres Conventional = HUGE environmental footprint ❖ Massive salt tailings stored on surface for indefinite period ❖ Large fresh water consumption ❖ Large demand on utiliti
Slide 22: Selective Dissolution
22 Selective Dissolution Cost effective and efficient recovery method Horizontal Well Pattern Horizontal Cavern for Selective Dissolution ❖ Using brackish formation water, an extraction brine is pumped through horizontal caverns where only KCl (potash) is dissolved ❖ The saturated brine (NaCl and KC
Slide 23: Proven Technique – Intrepid Potash
23 Proven Technique – Intrepid Potash Cane Creek Mine (Moab, UT) - has historically experienced many production challenges but deployed selective dissolution methods to overcome the problems Complex geology ❖ Significant faulting and folding associated with Cane Creek anticline ❖ Cannot be mined usi
Slide 24: Proven Technique – Intrepid Potash
24 Proven Technique – Intrepid Potash Selective dissolution successfully deployed at Cane Creek Mine (Moab, UT) starting in 2006 Pitchfork Well Pattern Before and After Selecting Mining ❖ Inject saturated brine to selectively mine potash – saturated brine targets potash only, salt matrix remains int
Gensource Potash — Investor Presentation (December 2017) on 6ix