Apc Minerals Limited · ASX:APC
Apc Minerals — Australian Potash — Shareholder Meeting (December 2021)
32 slides from Apc Minerals's shareholder meeting presentation, Dec 15, 2021
Slide 1: Annual General Meeting Presentation (ASX announcement)
ASX ANNOUNCEMENT ASX: APC 15 December 2021 For personal use only Annual General Meeting Presentation Australian Potash Limited (ASX: APC or the Company) is pleased to provide a copy of the presentation that will be given this afternoon by Managing Director & CEO Matt Shackleton at the Company’s annu
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 500km northeast of Kalgoorlie, in Western Australia's Eastern Goldfields. The Company is finalising pre- development plans for commencement of constructi
Slide 3: Annual General Meeting Presentation
For personal use only Low Cost, Organically Certified, Environmentally Sustainable, Green Sulphate of Potash Annual General Meeting Presentation 15 December 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: To recap
To recap 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 ‘SHOVEL READY’: DEBT 70% COMPLETE, EQUITY FUNDING 100% OWNED – T
Slide 6: The financial metrics
The financial metrics 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 COST1 DEBT FUNDING
Slide 7: Where are we with development? Village
Where are we with development? Village For personal use only 48-person construction camp including 20 permanent wet & dry rooms mess and water treatment facilities complete Wet mess Kitchen/dining room Potable water treatment plant Sewage treatment plant www.australianpotash.com.au 5
Slide 8: Where are we with development? Civils
Where are we with development? Civils For personal use only 48-person construction camp including wet & dry mess and water 20 treatment facilities complete bore pads constructed and handed over to drilling contractor ~25km of access tracks completed www.australianpotash.com.au 6
Slide 9: Where are we with development? Borefield
Where are we with development? Borefield For personal use only 17 bores developed out of total 79 bores Test pumping to date: flow rates aligned with resource model Brine abstraction materially de-risked with early works www.australianpotash.com.au 7
Slide 10: Where are we with development? Evaporation
Where are we with development? Evaporation For personal use only On-playa evaporation pond trial program complete High-grade K SOP produced from pilot- evaporation program* Organic certification received in Europe, USA & Australia^ Operational experts engaged (Corey Milne) Vital two evaporation seas
Slide 11: Execution Timeline to Production
Execution Timeline to Production Conservative schedule commitments For personal use only Village Communications Earthworks Borefield - Drilling Borefield - Power and Pipeline Process Plant - Engineering and Procurement Process Plant - Construction Hybrid Power Plant TIME UNDER SUN Plant Commissionin
Slide 12: Potash Market Update
Potash Market Update Incentivised pricing environment For personal use only • Very high energy prices Government trade decisions: • Natural gas pricing soaring on resurgent demand and lag time to fill production capacity • China: frozen exports of fertilisers • Poor renewable energy production due t
Slide 13: Potash Market Update
Potash Market Update Incentivised pricing environment For personal use only The LSOP will operate in a Ranking of fertiliser purchase decision weightings: • Affordability global market • Supply • Crop price variability • Government policies • Environmental uncertainty Potash demand year on year*: 20
Slide 14: Bankable offtake agreements
Bankable offtake agreements 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 20,000tpa K-BriteTM through Bankable Offtake Agreements Australia & 30,000tpa for 90% of production: K-BriteTM through New Zealand •
Slide 15: Sustainability
Sustainability Community Culture Environment For personal use only Environment Replacing & Ministerial Statement reducing a material carbon footprint EPA Approved Cultural Heritage Management Plan High-penetration (c.69%) renewable energy fraction Employment & power station contracting opportunities
Slide 16: Sustainability: reduction in greenhouse gas emissions
Sustainability Multi-generational reduction in Greenhouse Gas Emissions For personal use only Lake Wells Renewable Power Station • 63-69% Renewable fraction • $0.17/kWh • 4.5MW solar • 9MW wind (2x4.5MW turbines) • 9MW/3MWh BESS Greenhouse Gas Emissions (GHG)^ [tCO2eq/tonneSOP, scope 1,2 & 3] APC Ot
Slide 17: 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$45 million • Domestic institutions • 10-year teno
Slide 18: How does SOP pricing work?
How does SOP pricing work? Premium product commands premium pricing For personal use only • Granular or • Soluble Standard SOP High K2O granular High K2O standard • +52% K2O • Powdered • Granular • 50% - 52% K2O • Low Chloride • 50% K2O • 50% - 52% K2O • Soluble • Organic • Insoluble • Bulk • Organi
Slide 19: Premiums paid for SOP products
For personal use only US$/t 400 450 500 550 600 650 700 750 800 850 900 Sep 2018 Oct 2018 Nov 2018 Dec 2018 Jan 2019 Feb 2019 Mar 2019 Apr 2019 www.australianpotash.com.au May 2019 Jun 2019 NW Eur Stand SOP Jul 2019 Aug 2019 17 Sep 2019 • Bagged • Soluble • Organic Oct 2019 • Granulated Nov 2019 Dec
Slide 20: How does SOP pricing work?
How does SOP pricing work? Premium product commands premium pricing For personal use only 900 800 Gap up in SOP pricing 700 across the globe US$/t 600 500 400 Forward price curves used in the LSOP FEED bank financial model 300 Sep 2018 Mar 2019 Sep 2019 Mar 2020 Sep 2020 Mar 2021 Sep 2021 Mar 2022 S
Slide 21: 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 (in mid-202
Slide 22: Key Implementation Team
Key Implementation Team Skills Experience Competence For personal use only Project Management Process Design Rhett Brans Ryan Duncan Project Director Technical Manager Peter de Groot Corey Milne Construction Manager Specialist Technical Consultant Borefield Development Commercial Simon Page Scott Ni
Slide 23: Corporate
Corporate Skills Experience Competence For personal use only Share Price (16 November 2021) $0.074 Shares on Issue 747.4m Unlisted Options & Performance Rights 12.6m Market Capitalisation $55.3m Jim Walker Brett Lambert Cathy Moises Cash (30 September 2021) $7m Chairman Non-executive Director Non-ex
Slide 24: Risk Management
Risk Management Skills Governance Commitment For personal use only ASX Corporate Governance structures ISO45001 Framework Deep commercial & technical experience Continuous training and improvement Highly experienced & diversified 1:20 OH&S professionals on staff Board Framework mirrore
Slide 25: Community Engagement
Community Engagement A commitment to the community For personal use only • Construction of Laverton • Target of 15% Aboriginal Training Centre has participation commenced • Carey Mining and Central • Local, state, federal & Earthmoving joint venture industry funding contracted for earthworks • Inter
Slide 26: 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 • Assessment of results of diamond feasib
Slide 27: Appendix 1: Our Market
SOP is the premium form Appendix 1: Our Market of an essential, non- substitutable plant fertiliser For personal use only 7M tonnes Essential High Margin US$3.5B Market Size <1% Chloride/17% Sulphur Premium pricing SOP Global Demand • SOP = 10% of the global demand • Potassium is essential • Solar s
Slide 28: Appendix 2: CAPEX Summary
Appendix 2: CAPEX Summary Capital expenditure For personal use only The Lake Wells Sulphate of Potash Project CAPEX* A$m Delivery and Execution Risk Mitigated Owner’s Team 18 Capable & experienced owner’s team Bore drilling & development 16 Schedule guarantee, specialist contractor, productivity KPI
Slide 29: Appendix 3: OPEX Summary
Appendix 3: OPEX Summary Operating expenditure For personal use only The Lake Wells Sulphate of Potash Project Brine SOP MOP conversion Combined Annual production 120,000 tonnes 50,000 tonnes 170,000 tonnes Salt harvesting 13 - 9 Power 49 3 35 Reagents & consumables 12 266 85 Labour 57 - 41 Export l
Slide 30: Appendix 4: Lowest Quartile on Global Cost Curve
Appendix 4: Lowest Quartile on Global Cost Curve For personal use only Global FOB SOP cost curve 2018 Mannheim capacity: high energy, high Brine mineralisation, long First Peer Quartile FOB cost (US$/t) 540 Comparison Sustainable Production cost, environmental issues evaporation timeframe Mannheim 4
Slide 31: Appendix 5: FEED Summary
Appendix 5: FEED Summary Financial metrics For personal use only The Lake Wells Sulphate of Potash Project Strong Returns in All Scenarios Assumptions* Unit SOP Price (495-605 US$/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 32: 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
Australian Potash — Shareholder Meeting (December 2021) on 6ix