Apc Minerals Limited · ASX:APC
Apc Minerals — Australian Potash — Investor Presentation (August 2018)
32 slides from Apc Minerals's investor presentation, Aug 6, 2018
Slide 1: Australian Potash Limited Investor Presentation August 2018
For personal use only Australian Potash Limited (ASX:APC) Investor Presentation August 2018 Australian Potash Limited (ASX:APC) 1
Slide 2: Important Statements & Disclaimers
Important Statements & Disclaimers For personal use only Scoping study – cautionary statement The Study referred to in this announcement is a preliminary technical and economic investigation of the potential viability of the Lake Wells Potash Project. It is based on low accuracy technical and econom
Slide 3: Australian Potash Limited (ASX: APC)
Australian Potash Limited (ASX: APC) For personal use only APC is focused on the production of the premium specialty fertiliser potassium sulphate ("SOP") from at Lake Wells in the Eastern Goldfields of Western Australia SOP is used in the production of high value, chloride-sensitive crops such as f
Slide 4: Corporate Overview
Corporate Overview For personal use only Board of Directors, Management Capital structure Matt Shackleton, Executive Chairman ASX ticker APC Matt joined APC as Executive Chairman in July 2014. He is a Chartered Accountant, and has more than 20 years experience in senior management and board roles. P
Slide 5: Lake Wells Sulphate of Potash Project: Definitive Feasibility Study Update
For personal use only Lake Wells Sulphate of Potash Project Western Australia, 100% owned Definitive Feasibility Study Update Australian Potash Limited (ASX:APC) 5
Slide 6: Milestones to Project Financing & Development
Milestones to Project Financing & Development For personal use only 2018 2019 July August September October November December January February March April May June Abstraction Evaporation Processing Approvals Marketing Reporting Comment Definitive feasibility study targeted for completion Q1 2019 Au
Slide 7: DFS Work Streams: Brine Abstraction – Production Wells
Definitive Feasibility Study Work Streams For personal use only Brine Abstraction Production Wells Production Wells Work stream to Estimated 100% Current position 90% complete DFS completion date 80% 70% Total number of Stage 60% 1 Wells required, 35 To install to 50% completion of DFS, 2 5 producti
Slide 8: DFS Work Streams: Brine Abstraction – Test Pumping
Definitive Feasibility Study Work Streams For personal use only Brine Abstraction Test Pumping Flow Rates from Production Wells, Constant Rate (l/s) Work stream to Estimated 25 Current position complete DFS completion date 20 20 15 15 15.34 3 production wells Short term pump 10 at 2 sites have testi
Slide 9: DFS Work Streams: JORC Mineral Reserve Estimate
Definitive Feasibility Study Work Streams For personal use only Brine Abstraction JORC Mineral Reserve Estimate JORC Mineral Resource Estimate Work stream to Estimated 16 14.8 Current position 14 12.7 complete DFS completion date Drainable SOP million tonnes 12 10 8 14.8 million 6 tonnes Total Compl
Slide 10: DFS Work Streams: Brine Evaporation – Geotechnical Survey
Definitive Feasibility Study Work Streams For personal use only Brine Evaporation Continued Geotechnical Survey Program Surficial Clay Permeability and Recoveries from On-Playa Evaporation Ponds Work stream to Estimated Current position 0.12 DFS to date, 72% 75% complete DFS completion date 0.1 70%
Slide 11: DFS Work Streams: Evaporation Pond Constructability Program
Definitive Feasibility Study Work Streams For personal use only Brine Evaporation Evaporation Pond Constructability Program Scoping Study Estimated Pond Size Work stream to Estimated 12 Current position complete DFS completion date 10 10.0 Square kilometres 8 6 Preliminary, Develop trial sites 4 sco
Slide 12: DFS Work Streams: SOP Trade Sample Production Program
Definitive Feasibility Study Work Streams For personal use only Process SOP Trade Sample Production Program Work stream to Estimated Current position complete DFS completion date Harvest ‘feeder’ salts from ponds, Pilot pond harvest freight to process Q3 2018 salts crystallising facility, produce SO
Slide 13: DFS Work Streams: Approvals – EPA Program
Definitive Feasibility Study Work Streams For personal use only Approvals EPA Program Current position Work stream to complete DFS Estimated completion date • S38 Referral lodged with EPA 20 December 2017 • ERD to EPA • Environmental Review Document • Water abstraction license being prepared • Minin
Slide 14: Lake Wells Sulphate of Potash Project: Appendices
For personal use only Lake Wells Sulphate of Potash Project Western Australia, 100% owned Investor Presentation July 2018 Appendices Australian Potash Limited (ASX:APC) 14
Slide 15: Sulphate of Potash (SOP): the Premium Potash
Sulphate of Potash (SOP): the Premium Potash For personal use only SOP is low chloride making it ideal for application to higher- value chloride cotton sensitive crops Citrus fruit, deciduous - Integer Research fruits, tree nuts, strawberries and melons coffee And … avocados cashews hops cucumbers B
Slide 16: Global Trade in Potash
Global Trade in Potash For personal use only $US Sales Price per tonne Main Varieties of Potash Sulphate of Potash: SOP 8 700 600 Muriate of Potash: MOP 60 SOP, 580 Global annual traded tonnes (approx. mT) 500 400 SOP commands a price premium over MOP of up to approx. $US300 per tonne 300 MOP, 300 •
Slide 17: Production of SOP
Production of SOP For personal use only Global SOP production by method Average cost of SOP production 2o production 1o production 550 Brine evaporation 20% 500 Mannheim, Hard rock extraction 5% $450 Mannheim 450 50% $US per metric tonne 400 KCl reaction Hard rock 25% 350 extraction, $350 Brine evap
Slide 18: China is the World's Largest SOP Market
China is the World’s Largest SOP Market For personal use only SOP Global Production 2004 - 2015 SOP Global Demand 2015 – 2026 12 World with China World without China 12 World with China World without China 9.6 9.6 10 10 8.9 9.3 8.3 8.6 7.7 7.8 7.9 8.0 7.5 7.5 7.6 8 8 Million metric tonnes Million me
Slide 19: Three-stage Production Process
Three-stage Production Process For personal use only Abstraction of • Hypersaline brine is pumped from underground aquifers into evaporation ponds brine • Bore-field development to depths of 175m • Water is evaporated off the brine, leaving Evaporation of crystallised salts to be harvested water • O
Slide 20: Ideal Abstraction Method to Meet Production Targets
Ideal Abstraction Method to Meet Production Targets For personal use only Abstraction of brine is the ‘mining’ part of an SOP operation Short-term pump tests 90 yielded up to 34l/s 40 Required Flow Rate per Production Bore (l/s) Lake Wells will use a 80 35 bore-field brine 70 Number of Production Bo
Slide 21: Proven Evaporation Progression
Proven Evaporation Progression For personal use only Evaporation of water is the ‘beneficiation’ part of an SOP operation Development of evaporation pond network on the lake Hypersaline brine is surface at Lake Wells confirmed through geotechnical pumped into the pond network from field program comp
Slide 22: The Lake Wells SOP Project
The Lake Wells SOP Project For personal use only Lake Wells will process SOP from brine evaporation and KCl reaction CAPEX WITHOUT AND WITH KCL REACTION Indicative Prices for SOP Brine bore field Evaporation ponds Grade and Type Process plant Non-process infrastructure $650 Indirects Contingency $63
Slide 23: China is Ideal Target Market
China is Ideal Target Market For personal use only Lake Wells SOP project development will be SOP Demand underpinned by off-take agreements supplying 4,000 initially into the Chinese market 3,500 Two MOUs in place for up to 100,000tpa with 3,000 Sino-Agri, China’s largest agricultural company ‘000
Slide 24: Approvals Schedule
Approvals Schedule For personal use only Environment Protection Authority (EPA) Western Australia’s Environmental Protection Agency (EPA) is assessing the Lake Wells SOP project development on an Environmental Review Document, no Public Comment Ministerial Approval anticipated Q2 2019 Department of
Slide 25: Well-situated for Logistics
Well-situated for Logistics For personal use only Quad-combination road haulage Lake Wells to Leonora Rail haulage Leonora rail siding to Esperance Port APC’s Lake Wells SOP project is the closest Australian SOP project to bulk rail infrastructure Australian Potash Limited (ASX:APC) 25
Slide 26: Beneficial Climate Conditions
Beneficial Climate Conditions For personal use only Location Lake Wells SOP project Lake Wells SOP project Lake Wells SOP project High mean daily temperatures High average daily sunshine hours Low annual rainfall Australian Potash Limited (ASX:APC) 26
Slide 27: Historical SOP Pricing
Historical SOP Pricing For personal use only Standard SOP bulk fob NWE € 900 € 800 € 700 22 March € 600 2018 A$676 € 500 € 400 € 300 € 200 € 100 €0 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 03 Jul 2003 2004 2005 2006 2007 2008 2009 2010 2011 20
Slide 28: JORC Compliant Resource Estimate
JORC Compliant Resource Estimate For personal use only Drainable K Volume of Specific SOP Grade SOP Brine Concentration Aquifer Yield (mg/L) Resource Hydrogeological Unit Volume (mg/L) Weighted Weighted MCM Mean MCM MT Mean Value Mean Value Indicated Resources Western High Grade Zone Surficial Aquif
Slide 29: Australian Peer Comparison
Australian Peer Comparison For personal use only Australian Reward Salt Lake Agrimin Kalium Lakes Potash Minerals Potash (AMN) (KLL) (APC) (RWD) (SO4) Indicated JORC compliant SOP resource 12.7Mt 12.3Mt 4.4Mt n/a 4.3Mt 2 claims 1 claim 1 claim 2 claims Native Title status NT free 1 ILUA 1 ILUA NO IL
Slide 30: History of Progress
History of Progress For personal use only Mining lease applications 10km 10km 10km 2015 2016 2017 • High-grade Sulphate of Potash deposit • Maiden JORC Compliant SOP Resource • Mining Leases recommended for grant with NIL Native Title identified through brine sampling • Initial test-production bores
Slide 31: SOP Data Information Sources
SOP Data Information Sources For personal use only www.greenmarkets.com Green Markets www.integer-research.com Integer www.argusmedia.com Argus Media www.cru.com CRU International Limited www.fertilizer.org The International Fertilizer Association www.sopib.com Sulphate of Potash Information Board A
Slide 32: Registered Office Address
For personal use only Registered Office Address 31 Ord Street, West Perth WA 6005 PO Box 1941, West Perth WA 6872 Reception: +61 8 9322 1003 Email: m.shackleton@australianpotash.com.au Website: www.australianpotash.com.au ABN 58 149 390 394 Australian Potash Limited (ASX:APC) 32
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