APC Minerals Limited · ASX:APC
APC Minerals — Australian Potash — Investor Presentation (August 2020)
18 slides from APC Minerals's investor presentation, August 2020
Slide 1: 2020 FEED Update Timeline
2020 FEED UPDATE Timeline Offtake Approvals Funding
Slide 2: Disclaimer
Disclaimer Nature of this document This presentation has been prepared by Australian Potash Limited (APC or the Company). The information is based on publicly available information, internally developed data and other sources. By receiving this presentation, you acknowledge and represent to the Comp
Slide 3: Realistic Timeline to Development
The Lake Wells Sulphate of Potash Project Realistic Timeline to Development Q3 & Q4 Construction • Finalise Offtake Program • Finalise Debt Due Diligence • Village & NPI • Finalise EPC contracts • Pre-concentration ponds 2021 2023 • EPA Approval • Process plant and load out • Strategic Partner inves
Slide 4: Q3 & Q4 2020 Newsflow
Q3 & Q4 2020 Newsflow 01 02 Offtake Program Environmental Approval • Targeting 75% - 85% of DFS output under • Environmental Review Document being contracted sale agreements by end Q3 to finalised with EPA ‘bank’ LSOP offtake position • EPA 6-week window to prepare report to • Currently 86% the Mini
Slide 5: Offtake Program
The Lake Wells Sulphate of Potash Project Premium project Premium fertiliser Offtake Program • 130,000 tonnes per annum under binding offtake agreements • 86% of DFS output contract sold • FEED Program optimising output volume Tier 1 Trading Partners Redox 20,000 tpa Migao 50,000 tpa Mitsui 30,000 t
Slide 6: Approvals Pathway
Approvals Pathway Environmental Protection Authority and Other DMAs Agency COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6 Not applicable to APC • Endorsement of the Environmental Review Document (ERD) by EPA • 6 weeks to report to Minister for the Environment • Minor & Preliminary Works Appro
Slide 7: Financing the Build
Financing the Build NAIF, Commercial Debt, Equity Northern Australia Commercial Debt Equity Infrastructure 30% of total funding requirement 35% of total funding requirement Facility (NAIF) 35% of total funding requirement www.australianpotash.com.au 2020 Q3 Update 7
Slide 8: Contracting Strategy
Contracting Strategy Risk Mitigation Shareholder Protection 6 Packages EPC Contracted Why? Tender docs EOM AUG 2020: SOP process plant Schedule guarantee Tender docs WED 12 AUG: Borefield fit-out & HV network Price guarantee Bids due FRI 14 AUG: Power station Process guarantee Bids due FRI 14 AUG: C
Slide 9: Renewable Power
Renewable Power Low C Footprint PLUS Renewable Power Design & Construct Tender documents issued for D&C pricing Bids due FRIDAY 14 AUGUST 2020 Material impact on OPEX 30% saving indicated versus DFS OPEX Lowering the carbon footprint Future proofing against fiscal penalty regime Broadening market ap
Slide 10: The Peer Space
The Peer Space Companies with Offtake Agreements in Place Peer Comparison Peer Comparison SOP Reserve (Proven & Probable) 3.6Mt 5.4Mt1 5.13Mt4 SOP Resource (Measures & Indicated) – drainable 18.1Mt 4.0Mt1 11.58Mt4 Planned production 150ktpa 245ktpa 90ktpa CapEx $208m $264m2 $280m5 NPV(8) (Post-tax)
Slide 11: Board Composition
Board Composition Skills and Governance Jim Brett Rhett Matt Cathy Walker Lambert Brans Shackleton Moises Chairman Non-executive Director Project Director Managing Director & Non-executive Director CEO Appointed Aug 2018 Appointed May 2017 Appointed NED May 2017 Appointed July 2014 Appoint
Slide 12: Corporate Snapshot
Corporate Snapshot Recent capital raising positions Company strongly with zero debt Capital Structure PRICE ($) VOLUME (M) $0.14 8.0 Share Price (25 August $0.105 $0.12 7.0 2020) 6.0 Shares on Issue 486,560,549 $0.10 5.0 $0.08 Listed options1 55,350,135 4.0 $0.06 Unlisted options & 3.0 22,275,708 Pe
Slide 13: Project Delivery and Risk Management
Project Delivery and Risk Management Skills and Governance ASX Corporate Governance Structures ISO45001 Framework (Gold Standard) Continuous training and improvement Deep Commercial and Technical Experience 1:25 OH&S Professionals on staff Highly experienced and diversified Board Frame
Slide 14: Sustainability
Sustainability Respect for Community, Environment, Indigenous Culture & Stakeholders Understand, Replacing a Respect, Protect material C footprint Employee Cultural Commitments High-penetration (c.60%) renewable power station Employment & being tendered Contracting Opportunities 2020 - 2023 STEM Cul
Slide 15: Brine SOP = low cost, Organic soluble SOP
Lake Wells branded SOP is a high-purity organically certifiable and soluble SOP Brine SOP = low cost Low cost, technically feasible bore- pumping operation to produce 17Gl of $12.000 Potash brine per year June 14/2022 Why MOP addition? $80,000 Capital efficiency: same bore-field, June 14/2022 same p
Slide 16: SOP Market
SOP Market Sulphate of Potash is the premium form of an essential non-substitutable plant fertiliser 7M TONNES Essential US$450/t US$3.5B Market Size <1% Chloride/17% Sulphur High-margin SOP Global Demand • SOP = 10% of the global • Potassium is essential • Solar salt = lowest quartile cost • 50% of
Slide 17: SOP Market
SOP Market SOP trades at a Premium to MOP • Suitability for higher value crops SOP premium to MOP • Suitability for chloride sensitive crops • Scarcity of primary deposits US$100/tonne SOP>MOP • Average cost to convert a tonne of MOP to SOP using Mannheim process • Mannheim process = 50% global supp
Slide 18: Contact details
Suite 31, 22 Railway Road, Subiaco WA 6008 admin@australianpotash.com.au +61 8 9322 1003
Australian Potash — Investor Presentation (August 2020) on 6ix