Turnstone Resources Ltd · ASX:TSR
Turnstone Resources — Davenport Resources — Shareholder Meeting (November 2020)
18 slides from Turnstone Resources's shareholder meeting presentation, November 2020
Slide 1: Western Europe's Largest Potash Inventory – AGM Presentation
WESTERN EUROPE’S LARGEST POTASH INVENTORY AGM Presentation November 2020 © Davenport Resources Ltd. www.davenportresources.com.au
Slide 2: Disclaimer
DISCLAIMER Davenport Resources Limited (“Davenport”, “DAV”, “The Company”) has issued this Presentation for informational purposes only. It is not intended to, and does not, constitute specific advice to any particular party or person. The information in this presentation is based on publicly availa
Slide 3: Summary - A Compelling Investment Case
SUMMARY - A COMPELLING INVESTMENT CASE • Massive resources across four potential potash projects in Germany, the largest in Western Europe, 5.3 billion tonnes containing 567 Mt K2O in areas adjacent to historic potash mines. • Davenport holds perpetual mining licences & results from over 300 explora
Slide 4: East Germany – Where Potash Mining Began
EAST GERMANY – WHERE POTASH MINING BEGAN • Salt works established in Staßfurt 1797 • Justus Von Liebeg discovered in 1840 that plants need potassium to grow SouthHarz • 1861 world’s first potash plant at Staßfurt, boom starts in potash exploration • Hermann Pinno explored the South Harz region in 18
Slide 5: East Germany – Where Potash Mining Began
EAST GERMANY – WHERE POTASH MINING BEGAN Shafts were sunk in the South Harz area LOCATION OF FORMER MINES and the mines extracted a total of 181 Mt potash during their working lives. 1897 – 1991 Sondershausen 43 Mt 1902 - 1991 Bleicherode 33 Mt 1906 – 1990 Söllstedt 18 Mt 1909 – 1991 Volkenrode 27 M
Slide 6: Production Grew Steadily
PRODUCTION GREW STEADILY…… Annual MOP extracted from South Harz area Tonnes 000’s 3500 3350 2300 1200 1300 800 245 100 30 1912 1922 1932 1942 1952 1962 1972 1982 1992 …..and potash became the prime source of foreign exchange to the GDR © Davenport Resources Ltd. www.davenportresources.com.au 6
Slide 7: Mine Closures
MINE CLOSURES • The former mines were closed despite successful exploration programs which showed massive resources in adjacent properties. • As was typical in the Soviet bloc, the mines were grossly over- manned, inefficient and not commercially viable at prevailing potash prices. • The mines and a
Slide 8: Mining Licence Areas
MINING LICENCE AREAS LOCATION OF MINING LICENCES • Davenport bought mining licences for the explored areas in late 2017 and acquired the entire suite of exploration data from over 300 drillholes. • The licences are unique and valuable as they are perpetual in nature and require no rent, royalty or d
Slide 9: Exploration Licence Areas
EXPLORATION LICENCE AREAS LOCATION OF EXPLORATION LICENCES • Davenport bought mining licences for the explored areas in late 2017 and acquired the entire suite of exploration data from over 300 drillholes. • The licences are unique and valuable as they are perpetual in nature and require no rent, ro
Slide 10: Resource Comparison – Other Potash Projects
RESOURCE COMPARISON – OTHER POTASH PROJECTS • In addition to being the largest known potash resource in Western Europe, Davenport holds the world’s second-largest untapped resource compared with other known projects. • Further work within Davenport’s exploration licence areas could yield significant
Slide 11: Fundamentals Will Drive Volume and Price Growth
FUNDAMENTALS WILL DRIVE VOLUME AND PRICE GROWTH Global MOP demand is expected to increase Prices are forecast to rise over the next ten years. steadily to 88 Mt by 2033 Long term price forecast for MOP, USD/tonne Demand being driven by population increases and changing dietary demands Source : Argus
Slide 12: Ohmgebirge – The Preferred Starter Project
OHMGEBIRGE – THE PREFERRED STARTER PROJECT Resource Production NPV Opex Capex Mineralisation IRR Potential size (Mt) Kt/a Potential Target Target Scoping Study 500 MOP ✔️ ✔️ LOW OHMGEBIRGE 325 42 Mt K2O (grading 9.8% to 14.0% 1000 MOP ✔️✔️ ✔️✔️ LOW V.LOW K2O) at relatively shallow depth. Scoping Stu
Slide 13: Evolution of Davenport's Potash Projects
EVOLUTION OF DAVENPORT’S POTASH PROJECTS JORC Davenport Inferred announces Massive Davenport resources Funds raised exploration sulphate Scoping Incorporated declared by for drilling Drilling DFS targets for resource studies and listed on Micon for all twin holes at permitting Completed Küllstedt an
Slide 14: Attractive Near-Term Catalysts for Davenport's Stock
ATTRACTIVE NEAR-TERM CATALYSTS FOR DAVENPORT’S STOCK Months following Funding Next Steps Timeline subject to funding 0 5 10 15 20 DRILLING Preparation for drilling Conduct drilling Assay Drill 2 holes to upgrade resource in Ohmgebirge area Resource upgrade Release preliminary studies Feasibility SOW
Slide 15: Fund Raising Activities
FUND RAISING ACTIVITIES • Two-stage fund raising successfully concluded 26 November by joint lead managers in Australia and UK, raising $10m • Purpose of funds to drill two holes at Ohmgebirge, upgrade the resource, announce scoping study results, general working capital • Fund raising in two tranch
Slide 16: South Harz Projects Are Tier One Assets
SOUTH HARZ PROJECTS ARE TIER ONE ASSETS 1 One of the largest projects globally in an 5 excellent 2 Compelling location World-class potential project with returns and leading cost cash flow potential and generation scalability 4 3 Attractive Favourable potash mining fundamentals. jurisdiction, Scope
Slide 17: Strong Management Team with Deep Potash Track Record
STRONG MANAGEMENT TEAM WITH DEEP POTASH TRACK RECORD Executive Non Executive Previous experience: Gold Fields, De Beers, Cleveland Potash, Kenmare Resources, South Boulder Mines, Circum Minerals Dr Chris Gilchrist Ian Farmer Managing Director Chairman Previous experience: VP Operations – Allana Pota
Slide 18: We're All About Growth
18 WE’RE ALL ABOUT GROWTH INVESTOR & MEDIA ENQUIRIES Dr Chris Gilchrist - Managing Director Nathan Ryan Davenport Resources Ltd NWR Communications +353 41 988 3409 +61 420 582 887 cgilchrist@davenportresources.com.au nathan.ryan@nwrcommunications.com.au © Davenport Resources Ltd. www.davenportresour
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