Phoslock Water Solutions Limited
Phoslock Water Solutions — Investor Presentation (November 2005)
30 slides from Phoslock Water Solutions's investor presentation, Nov 24, 2005
Slide 1: Shareholder Presentation
WATER SOLUTIONS LIMITED SHAREHOLDER PRESENTATION 24 NOVEMBER 2005
Slide 2: PWS now producing and selling Phoslock globally
•PWS is now producing and selling Phoslock to a global market. •J/V factory in Kunming has been in production since May 2005, with over 700 tonnes produced to date. •Orders of over 400 tonnes have been received from customers in 13 countries. •Trial applications (large and small scale) are currently
Slide 3: ASX Code, price and capitalisation
ASX Code: IMH (soon to change) Current Price: 15 cents * Trading Range: 9 -24 cents over last 12 months Total Issued Shares: 113.4 million ** Total Issued Options: 17.1 million *** Market Capitalisation: A$17 million *Closing Price on 23 November, 2005 **Includes 3.7 million to be issued to CSIRO an
Slide 4: Major Shareholders of Ordinary Shares
Major Shareholders of Ordinary Shares* Laurence Freedman Investor 11.8% Joel Bidois Former Director 5.4% CSIRO Govt Scientific Organisation 3.3% CVC Ltd Institution 3.2% Current Directors and Executives 4.5% Top 50 Shareholders aggregate holding 59.2% Total Number of Shareholders 1,100 * Shareholder
Slide 5: Phoslock modified clay product
•Phoslock is a modified clay product which removes phosphorus from water bodies and breaks the algal cycle. •Environmentally friendly product. •Reduces phosphorus concentrations below detectable limits. •Caps sediment and prevents remobilization of phosphorus. •Stable in varying pH levels. •Very low
Slide 6: Phoslock manufacture and pellets
•Phoslock is manufactured in Kunming, China. •Phoslock is produced in a dry granular form. •Packaged in either 25 kg bags or 1 tonne bulka bags. •Phoslock is applied either dry or in a slurry form. •PWS and Kurita of Japan are developing non-dispersible pellets. •Pellets suitable for aquaria, water
Slide 7: Potential for Phoslock
•Excessive phosphorus in water bodies is a global problem with few natural solutions. •Phoslock is a natural product and environmentally friendly. •Phoslock is the ideal product to use in natural and manmade water bodies, including lakes, reservoirs, rivers, dams, ornamental ponds, golf course lakes
Slide 8: History 1992-2003
1992-2000 Phoslock developed by CSIRO and WA Water & Rivers Commission. 1997 Phoslock slurry patent taken out by CSIRO. 2000 First major application carried out on Canning & Vasse Rivers in Western Australia. CSIRO grants IMT exclusive license for worldwide production & use of Phoslock. 2002 IMT Hol
Slide 9: History 2004-2005
2004 First Phoslock produced from Kunming manufacturing operation. IMT granted license by Kurita to manufacture non dispersible pellets. 2005 Continuous production of Phoslock commences in May. IMT increases shareholding in Chinese J/V to 71%. IMT changes its name to PWS (Phoslock Water Solutions Li
Slide 10: Acquisition of Phoslock patent from CSIRO
CSIRO to sell PWS the Phoslock worldwide patent. Cancel the current Royalty Agreement (3.5% of gross sales revenue) which expires in 2017. Transaction consideration is: • 3.7 million PWS Ordinary shares (at 20 cents per share). •2.4 million PWS Options (at strike prices between 20 – 40 cents). •$470
Slide 11: Kunming production update
•Continuous production commenced in May, 2005. •Total production from manufacturing operation is approx 700 tonnes of Phoslock. Production has been affected by: •power shortages Î one generator installed with second installed by Dec. •3 major bottlenecks Î one bottleneck cleared, second is in proces
Slide 12: Kunming operation management and capacity
•Since October our PWS employee has had full authority to run the operation (prior to this he was Deputy GM and had to get concurrence of Chinese GM). •Raw materials for Phoslock all sourced from approved suppliers in China. •When de-bottlenecked, manufacturing operation will have capacity of 10,000
Slide 13: Second manufacturing operation
•When demand for Phoslock exceeds 5,000 – 7,000 tonnes the PWS Board is likely to commit to a second Phoslock manufacturing operation. •Significant work is being undertaken on site selection, sourcing of raw materials and capital equipment. •Likely location is the eastern seaboard of Australia. •Ope
Slide 14: Technical and R&D function
•PWS runs its technical and R&D function from the University of Queensland (UQ). •PWS two employees working out of UQ. •PWS has a smaller technical facility in Kunming, China. •Each Phoslock batch is tested both in Kunming & UQ. Current technical priorities are: •ensure QA of Phoslock production. •d
Slide 15: Miles bentonite mine
•PWS owns a Bentonite Mine at Miles, approx 400km west of Brisbane, Queensland. •Bentonite mine has measured, indicated and inferred resources in excess of 64 million tonnes of bentonite. •Over 90% of the bentonite deposit has very low overburden which ensure competitive mining cost. •Mining Lease e
Slide 16: Commercial sales and orders
•Phoslock was first available for commercial sale in June 2005. •Orders for over 400 tonnes of Phoslock have already been received from customers in 13 countries. •Customers will generally trial Phoslock under local conditions before committing to use the product on a long term basis. •Currently und
Slide 17: License issued, joint venture, memorandum of understanding
Memorandum of License Issued Joint Venture Understanding
Slide 18: Lake Okareka, New Zealand
•Lake Okareka is one of several dozen picturesque lakes in central North Island of New Zealand experiencing extensive eutrophication (excessive nutrients in the water). •Eutrophication caused by fertilizers, extensive agriculture in the region, sewerage discharges and animals. This leads to deterior
Slide 19: Lake Okareka mineral treatment
Lake Okareka Mineral Treatment Lake Okareka’s water looks clear but its quality is slowly getting worse. Because of this, Environment Bay of Plenty is treating the lake with a mineral product called Phoslock. The treatment will help stabilise water quality until other measures kick in, such as sewer
Slide 20: Sewage treatment plant application
•Phoslock was applied to water storage ponds at an ACT sewage treatment plant to lower phosphorus levels. •Phoslock can be used as a “polisher”of water (applied after the initial raw sewage treatment). •By applying Phoslock , this allows operators of sewage treatment plants and other treatment plant
Slide 21: Canning River, Western Australia
•The Canning River was used by the CSIRO, WA Water & Rivers Commission and Swan River Trust as the initial commercial trial for Phoslock in 2000. •Since 2000, over 100 tonnes has been applied to the Canning and nearby Vasse rivers as well as various estuaries and drains flowing into these rivers. •R
Slide 22: Chateau Montelena winery lakes
•PWS was contracted by Chateau Montelena, a leading Napa Valley, California winery to treat two lakes on their property. •Fertilisers and other nutrients seeped into the lakes. •In summer, these lakes became full of algae and were not in keeping with this prestige winery. •Phoslock was applied in Se
Slide 23: Park lakes and wetlands
•Park lakes and wetland areas exist in virtually every city in the world. •These water bodies are usually heavy eutrophied due to excessive use of fertilizers plus effects of natural bird life •Phoslock was recently applied on the Rockdale park lakes & wetlands in southern Sydney. •Phoslock applicat
Slide 24: Aquaculture prawn and shrimp ponds
•PWS has sold Phoslock to prawn & shrimp farmers in India, Malaysia, China and Honduras to assist in controlling algal levels in growing ponds. •By controlling algal levels in ponds, the farmers will better control the quality, quantity & taste of the prawns & shrimps. •The recent application of Pho
Slide 25: Golf course lakes
•There are approx 100,000 golf courses around the world (some 40,000 in the US, 5,000 in Japan, 1800 in Australia). •Lakes, water features and streams are a major feature on most golf courses. •The water in most lakes, water features and streams is heavily eutrophied due to excess use of fertilizers
Slide 26: Private lakes and wetlands
•Private lakes and wetlands exist all over the world. The owners can be individuals, land held in trust, body corporates and industrial parks. •These water bodies are usually heavy eutrophied due to excessive use of fertilizers plus effects of natural bird life. •Owners of these water bodies general
Slide 27: Management targets by end of 2008
By the end of 2008, management is targeting a company which: •Produces 20,000 -30,000 tpa of Phoslock products from two manufacturing operations. •Second manufacturing operation to be built (most likely) on eastern seaboard of Australia. •Introduction of non dispersible pellets for aquarium, water t
Slide 28: Financial projections at varying production and sales levels
PHOSLEL!. Phoslock Water Solutions Ltd. FINANCIAL PROJECTIONS BASED ON VARYING PRODUCTION & SALES LEVELS Sales -Phaslock Granules tonnes 5 000 10,000 13 000 16 O00 19 000 22 O00 -Phaslock Pellets tonnes o o 2 000 4000 6,000 6,000 Total Sales tonnes 5 O00 10,000 15,000 20,000 25,000 30,000 Production
Slide 29: Contact details
Robert Schuitema Executive Chairman 0412 305 442 rs61@bigpond.net.au Brett Crowley Managing Director 0411 713 555 bcrowley@phoslock.com.au Phoslock Water Solutions Limited 116 Rothschild Avenue Rosebery, Sydney, NSW 2018 Australia Correspondence Address PO Box 319 Rosebery, Sydney, NSW 1445 Australi
Slide 30: Forward-looking statements disclaimer
This presentation includes certain statements, estimates and projections with respect to the future performance of Phoslock Water Solutions Limited. Such statements, estimates and projections reflect various assumptions concerning anticipated results, which assumptions may prove not to be correct. T
Phoslock Water Solutions — Investor Presentation (November 2005) on 6ix