Apc Minerals Limited · ASX:APC
Apc Minerals — Australian Potash — Diggers & Dealers Mining Forum 2021
28 slides from Apc Minerals's conference presentation, Aug 2, 2021
Slide 1: Diggers & Dealers Mining Forum Presentation
ASX ANNOUNCEMENT ASX: APC 2 August 2021 For personal use only Diggers & Dealers Mining Forum Presentation Australian Potash Limited (ASX: APC or the Company) is pleased to provide a copy of the presentation that will be given later today by Managing Director & CEO Matt Shackleton at the Diggers & De
Slide 2: About Australian Potash Limited
About Australian Potash Limited APC holds a 100% interest in the Lake Wells Sulphate of For personal use only Potash (LSOP), located approximately 500kms northeast of Kalgoorlie, in Western Australia's Eastern Goldfields. The Company is finalising pre- development plans for commencement of construct
Slide 3: Low Cost, Organically Certified, Environmentally Sustainable, Green Sulphate of Potash
For personal use only Low Cost, Organically Certified, Environmentally Sustainable, Green Sulphate of Potash Diggers & Dealers Kalgoorlie August 2021 www.australianpotash.com.au
Slide 4: 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 For personal use only
Slide 5: How do solar-salt projects work? Brine is pumped
How do solar-salt projects work? Brine is pumped For personal use only www.australianpotash.com.au 3 Disclaimer: Some projects use trenches instead of bores but let’s focus on reality here
Slide 6: Australia's largest JORC compliant measured potassium resource
For personal use only AUSTRALIA’S LARGEST JORC COMPLIANT MEASURED POTASSIUM [SOP] RESOURCE 60,000 METRES OF DRILL DATA 700,000 METRES OF PASSIVE SEISMIC DATA 500 GEOTECHNICAL TEST SITES www.australianpotash.com.au THOUSANDS OF HOURS OF HYDRO-MODELLING 4
Slide 7: How do solar-salt projects work? Water is evaporated from the brine
How do solar-salt projects work? Water is evaporated from the brine For personal use only www.australianpotash.com.au 5
Slide 8: This is why it's called solar salt
THIS IS WHY IT’S CALLED SOLAR SALT – WE ARE CRYSTALLISING SALT USING SOLAR POWER TO EVAPORATE WATER For personal use only www.australianpotash.com.au 6
Slide 9: How do solar-salt projects work? Potassium in the salt is beneficiated
How do solar-salt projects work? Potassium in the salt is beneficiated For personal use only www.australianpotash.com.au 7
Slide 10: The process plant uses a proven flowsheet
For personal use only THE PROCESS PLANT USES A PROVEN FLOWSHEET INTERNATIONAL EXPERTISE TEAMED UP WITH LOCAL ENGINEERING www.australianpotash.com.au 8
Slide 11: How do solar-salt projects work? Ship and supply
How do solar-salt projects work? Ship and supply For personal use only WE SELL THE 170,000tpa OF GREEN, ORGANIC, NON-SUBSTITUTABLE SOP TO EUROPE, THE AMERICAS, AUSTRALASIA, CHINA AND ASIA www.australianpotash.com.au 9
Slide 12: Bankable offtake agreements
How do solar-salt projects work? Ship and supply For personal use only 30,000tpa K-BriteTM through Europe 50,000tpa K-BriteTM 20,000tpa K-BriteTM through USA through China Bankable Offtake Agreements 20,000tpa K-BriteTM through Australia & for over 90% of production: 30,000tpa New Zealand K-BriteTM
Slide 13: Australia's Green SOP Project
Australia’s Green SOP Project A genuinely green, premium fertiliser FEED Program* positions the Lake Wells SOP K-BriteTM product as a For personal use only genuinely green, premium fertiliser product for distribution into the world’s most lucrative markets 100% OWNED – TIER 1 LOCATION AUSTRALIA’S LA
Slide 14: Lake Wells Sulphate of Potash Project: The essential metrics
Lake Wells Sulphate of Potash Project The essential metrics For personal use only 30 YEARS OF SOP PRE-TAX# NPV8 A$88M EBITDA# PRODUCTION AT 90% A$415M (AVG ANNUAL OVER LOM) 170,000 OF PRODUCTION UNDER OFFTAKE TONNES CASH COST# SOP PRICE# PER ANNUM US$251/t US$550/t GREEN LOAN NAIF FUNDING CAPITAL CO
Slide 15: Pricing the SOP Product
Pricing the SOP Product Premium product commands premium pricing For personal use only • Granular or • Soluble • +52% K2O • Organic High K2O standard • Sustainable • 50% - 52% K2O • Bagged Standard SOP • Soluble High K2O granular Product quality • Organic + 10% - • Powdered • Granular • Bulk • 50% K
Slide 16: SOP Pricing: SOP trades at a premium to MOP
SOP Pricing SOP trades at a premium to MOP For personal use only SOP bulk fob NW Europe MOP bulk fob NW Europe SOP premium to MOP – Why? 700 • Suitability for higher value crops • Suitability for chloride sensitive crops 600 • Scarcity of primary deposits 500 Conservative US$550/t SOP used in FEED 4
Slide 17: Our Market
Our Market SOP is the premium form of an essential, non-substitutable plant fertiliser For personal use only 7M tonnes Essential High Margin US$3.5B Market Size <1% Chloride/17% Sulphur Premium pricing SOP Global Demand • SOP = 10% of the global demand • Potassium is essential • Solar salt = lowest
Slide 18: Financing the Build
NAIF Financing the Build EFA Commercial banks Equity For personal use only 01: NAIF 02: EFA • Investment decision approved February 03: Banks 2021 • Conditional approval April 2021 04: Equity • A$140 million • Foreign institutions • 17-year tenor • A$45 million • Domestic institutions • 10-year teno
Slide 19: Contracting Strategy
Contracting Strategy Minimising the risk of cost overruns, schedule creep and process under-performance For personal use only +75% of construction contracts by value are EPC 6 Packages EPC Contracted Why? SOP process plant Schedule guarantee Borefield fit-out & HV network Price guarantee Power stati
Slide 20: Timeline to Production
Timeline to Production Conservative schedule commitments For personal use only TIME UNDER SUN www.australianpotash.com.au 18
Slide 21: Key Implementation Partners
Key Implementation Partners Experienced Visible For personal use only Contractors Consultants Green Legal www.australianpotash.com.au 19
Slide 22: Key Implementation Team
Key Implementation Team Skills Experience Competence For personal use only Sandra Barkla Community Engagement Jay Hussey Manager Christopher Maiolo Chief Commercial Officer Project Manager Valeria Mazzola Jim Walker Brett Lambert Cathy Moises Ryan Duncan HSE Advisor Peter de Groot Chairman Non-execu
Slide 23: Community Engagement
Community Engagement A commitment to the community For personal use only • Construction of Laverton • Target of 15% Aboriginal Training Centre scheduled participation for October 2021 • Carey Mining and Central • Local, State, Federal & Earthmoving joint venture Industry funding contracted for earth
Slide 24: Exploration Opportunities
Exploration Opportunities Regional multi-commodity potential For personal use only Laverton Downs Lake Wells Project Gold Project • Prospective for nickel sulphide • SBM earnt in 70% during April 2021; and gold mineralisation APC 30% free-carried to bankable • Assays pending from diamond feasibility
Slide 25: For personal use only
For personal use only www.australianpotash.com.au +61 8 9322 1003 @OzPotash Suite 31, 22 Railway Road, Subiaco WA 6008
Slide 26: CAPEX Summary
CAPEX Summary Appendix 1: Capital expenditure For personal use only The Lake Wells Sulphate of Potash Project CAPEX* A$m Delivery and Execution Risk Mitigated Owners Team 18 Capable & experienced owner’s team Bore drilling & development 16 Schedule guarantee, specialist contractor, productivity KPIs
Slide 27: FEED Summary: Financial metrics
FEED Summary Appendix 2: Financial metrics For personal use only The Lake Wells Sulphate of Potash Project Strong Returns in All Scenarios Assumptions* Unit SOP Price (495-605 US$/t) 286 544 SOP price [real] US$/t 550 FX (0.77-0.63 US$/A$) 312 542 FX rate US$:$A 0.70 Opex (+/-10%) 371 460 Discount r
Slide 28: Sustainability
Sustainability Community Culture Environment For personal use only Understand, Replacing and Respect, Protect reducing a material carbon footprint Employee Cultural Commitments High-penetration (c.44%) renewable power station being Employment & tendered Contracting Opportunities Laverton VET Program
Australian Potash — Diggers & Dealers Mining Forum 2021 on 6ix