Parkway Corporate Limited · ASX:PWN
Parkway Corporate — Potash West NL — RIU Resources Round-up Conference 2016
29 slides from Parkway Corporate's conference presentation, May 11, 2016
Slide 1: Presentation to Investors
ASX Announcement 11 May 2016 For personal use only _____________________________________________________________________________________ PRESENTATION TO INVESTORS COMPANY DETAILS 11 MAY 2015 ABN: 62 147 346 334 Potash West is attending RIU Resources Round-up Conference in Sydney on 11th PRINCIPAL an
Slide 2: World Class Fertiliser Products from World Class Assets
For personal use only WORLD CLASS FERTILISER PRODUCTS FROM WORLD CLASS ASSETS RIU Sydney Resources Round-up May 2016
Slide 3: For personal use only
This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation may not be distributed in any jurisd
Slide 4: For personal use only
Information in the presentation that relates to the Mineral Resource estimate for Dinner Hill is fully described in the ASX release of 11 October 2012. Information relating to the Dinner Hill Extended Exploration Target was released to the ASX on 07 May 2013. Information relating to the phosphate Mi
Slide 5: Agenda
Agenda For personal use only • Company Snapshot • Fertiliser Overview • Dandaragan Trough Project, Western Australia • South Harz Project, Germany • Value Proposition 4
Slide 6: Corporate Snapshot
CORPORATE SNAPSHOT ASX CODE PWN For personal use only SHARE PRICE – 31 March 2016 AU$0.03 MARKET CAP. (at 3c) AU $7M SHARES ON ISSUE (1) 234 M 12 MONTH RANGE 3c – 6c TOP 20 SHAREHOLDERS 52% MGMT AND DIRECTORS 11% (1) Plus 36M partly paid, 18 M listed options and 5M unlisted options BOARD Adrian Grif
Slide 7: Investment Case
INVESTMENT CASE Creating value from a strategically located phosphate and potash fertiliser deposit in Western Australia, by growing a For personal use only unique global fertiliser business: Building a fertiliser project on one of the world’s largest glauconite deposits, 150 km from Perth, clos
Slide 8: Outlook for Fertilisers
OUTLOOK FOR FERTILISERS Population (Billions) LHS Arable Land per person (hectares) RHS Food demand forecast to double by 2050 For personal use only • Population growth • Arable land 10 0.45 • Dietary changes 9 0.4 8 0.35 Leads to increased pressure on agriculture Population, B Arable Land 7 0.3 6 0
Slide 9: Fertiliser Business
FERTILISER BUSINESS 3 Fertiliser bulk commodities, For personal use only N, Nitrogen, promotes green growth P, Phosphorous, promotes plants yield potential K, Potassium, enables plants to take up nutrients from soil and air 3 Minors, Ca, S and Mg Most soils deficient in NPK Not interch
Slide 10: Fertiliser Business
FERTILISER BUSINESS 21% 49% For personal use only N P K Forecast value of US$172B in 2015, 30% Nitrogen (109 Mtpa, N): from air, gas and coal Urea Ammonia Nitrate Phosphates (41Mtpa, P): mined from rock phosphate deposits Superphosphate Phosphoric Acid MAPs & DAPs Potash (28Mtpa, K
Slide 11: Phosphate Rock Production and Demand by Region
PHOSPHATE ROCK PRODUCTION AND DEMAND BY REGION wr WORLD PHOSPHATE ROCK PRODUCTION WORLD PHOSPHATE ROCK SALES 2011:190.9 MT 2011:190.9 MT 2010:183.9 MT 2010:183.9 MT potash WEST“ Source: IFA and Potash Corp
Slide 12: Phosphate Product Pricing
PHOSPHATE PRODUCT PRICING For personal use only Single Superphosphate 320 Bulk CPT Brazil, $US/t 310 300 290 280 270 260 Source: CRU, Avenira 11
Slide 13: Potash Product Pricing
POTASH PRODUCT PRICING For personal use only MOP, FOB Vancouver 600 US$/tonne 500 400 300 200 100 MOP, potassium chloride, 0 affected by oversupply SOP, FCA NW Europe SOP, potassium sulphate Euro/tonne remaining strong 600 500 400 300 200 100 0 Source: CRU 12
Slide 14: Dandaragan Project Location
DANDARAGAN PROJECT LOCATION For personal use only +2,600 km2 of prospective area ~150km of strike ~+20km width Many intersections +40m Great infrastructure Rail Power Gas Water Close to local markets, WA and SE Asia Similar mining activity already in region Close to export po
Slide 15: Exploration
EXPLORATION Focus on Northern area, 432 For personal use only holes drilled, 1182m on Dinner Hill. Numerous intersections of high grades close to the surface. Dinner Hill, first resource, phosphate closer to surface. Indicated Resource - 250Mt @ 2.9% P2O5, within 20km2 of prospective area 60
Slide 16: Dambadjie Prospect Drill Samples
DAMBADJIE PROSPECT DRILL SAMPLES For personal use only PHOSPHATE Potash (K-Max) 15
Slide 17: Phosphate Flowsheet
PHOSPHATE FLOWSHEET GREENSANDS ORE For personal use only BULLDOZER MINING, 4,000 Ktpa @ PUMPING 4 to 5% P2O5 PRIMARY UPGRADE PHOSPHATE PLANT GRINDING, FLOTATION PLANT SCREENING, SIZING, MAGNETIC 250 Ktpa @ SEPARATION 30% P2O5 400 Ktpa @ clays mags fine coarse 12 to 16% P2O5 ACIDULATION PLANT BLENDIN
Slide 18: Phosphate Plant Study Parameters
PHOSPHATE PLANT STUDY PARAMETERS Mining Rate 4 Mtpa For personal use only One product: 400,000 tpa Single superphosphate Capex and Opex estimates +/-35% 100,000 tpa consumed locally, balance exported into SE Asia Project works, despite low feed grade, because: Unconsolidated sand ore, ve
Slide 19: Scoping Study Results - Phosphate
SCOPING STUDY RESULTS - PHOSPHATE For personal use only THROUGHPUT 4 mtpa NPV8 AU$M (1) 378 CAPITAL COSTS, AU$M 205 OPEX, AU$/tonne of PRODUCT 190 REVENUE , AU$/tonne of PRODUCT 320 IRR% (1) 20 MINE LIFE (Expandable) +60 YEARS EBITDA (1), AU$M pa 52 (1) Ungeared, pre-tax 18
Slide 20: Potash Project
POTASH PROJECT For personal use only Stage 2 for Dinner Hill, timing flexible Using new technology, K-Max Suite of products, sulphate of potash (SOP), high Mg SOP, Alum, Phosphoric Acid. Capex $600 M, IRR 30%, EBITDA $260 M Revenue Mix: Phosphate 40%, 150K tpa phosphoric acid Potash 30% 300
Slide 21: Technology
TECHNOLOGY For personal use only K-Max IP 100% owned Potash from Glauconite deposits, world-wide opportunities. Significant ownership of Lepidico, owner of Li technology LEP being sold to Platypus Minerals (ASX:PLP) Value ~$2m (at current mkt price) 20
Slide 22: Dinner Hill Development Timelines
Dinner Hill Development Timelines For personal use only 2016 2017 2018 2019 2020 2021 2022 2023 2024 Phosphate Project Feasibility Study Construction Operation K-Max Project Prefeasibility Study Feasibility Study Construction K-Max Operation 21
Slide 23: East Exploration
EAST EXPLORATION For personal use only PWN owns 55% of a Company with 2 Exploration Licences in Central Germany Counterparty, private interests Close to existing producers 450 sq km, extensive previous drilling Working with Ercosplan, world renowned potash consultants, who have worked in t
Slide 24: Küllstedt and Gräfentonna Licences
KÜLLSTEDT AND GRÄFENTONNA LICENCES Within South Harz region, For personal use only which has produced 100m tonnes of potash Several mines in production up till 1990s, German reunification. Low potash prices caused closures KÜLLSTEDT 450 sq km of holding Extensive drilling Close to existing
Slide 25: Next Steps for East Exploration
NEXT STEPS FOR EAST EXPLORATION For personal use only Preferred route forward, for both PWN and the minority shareholders of EE, is to vend into a dedicated company which can be focussed on developing this opportunity. Agreement reached with Davenport Resources for the project to be vended in, s
Slide 26: Corporate Structure
Corporate Structure Potash West NL For personal use only 100% 100% 100% East Exploration Dinner Hill Mining K-Max Technology Holdings Company Pty Ltd Pty Ltd • 100% ownership of K-Max •55% of East Exploration Pty •Potash, Phosphate and by-products Process IP and know-how Ltd rights in EL 3987, Weste
Slide 27: Market Cap. of Fertiliser Explorers and Developers
MARKET CAP. OF FERTILISER EXPLORERS AND DEVELOPERS For personal use only 868 568 140 120 100 80 60 40 20 0 As at May 2016 26
Slide 28: Investment Highlights
INVESTMENT HIGHLIGHTS Exposure to the growing fertiliser business Regions are major importers For personal use only Dandaragan Trough Strategic location Low risk start up with phosphate project Blue sky potash production with K-Max process Control of one of the world’s largest known gl
Slide 29: Questions?
QUESTIONS? Patrick McManus For personal use only Managing Director +61 (0) 408 956 798 patrick.mcmanus@potashwest.com.au Unit 3 23 Belgravia Street Adrian Griffin Belmont WA 6104 Chairman +61 (0) 418 927 658 PO Box 588 adrian.griffin@potashwest.com.au Belmont WA 6984 Peter Nesveda Phone +61 (0) 8 94
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