Avenira Limited · ASX:AEV
Avenira — Investor Presentation (March 2019)
18 slides from Avenira's investor presentation, Mar 26, 2019
Slide 1: Investor Presentation
Investor Presentation ASX: AEV March 2019
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Avenira Limited (Avenira). This document does not constitute or contain an offer, Statements contained in this document, including but not limited to those regarding the possible or assumed future costs, invitation, solicitation or recommendation wit
Slide 3: Corporate Snapshot
Corporate Snapshot BOARD OF DIRECTORS CAPITAL STRUCTURE Chairman Brett Clark Share price (22nd March 2019) A$0.015 Managing Director Louis Calvarin Shares in issue (ASX: AEV) 1,058m Non-Executive Director Tim Cotton (Agrifos) Options (25c, Sept 2019 expiry) 80.0m Non-Executive Director David Mimran
Slide 4: Investment rationale
Investment rationale Well positioned for this growing, essential industry Food demand is rising rapidly in line with population growth… and arable land is declining Phosphate rock market growth driven by need for fertilisers Expansion of Baobab Phosphate Project underway Avenira owns 80% of th
Slide 5: Critical for food security
Critical for food security Phosphate rock market expected to reach 268Mt 90% 2024 Vital phosphate ingredient for rock demand NPK fertilisers 70% higher for fertilisers food demand Depleted soil predicted Highly vertical integrated nutrients need to be from 2010 to market (12- 15% pa replenished 2050
Slide 6: Positive outlook for phosphate market
Positive outlook for phosphate market Prices are recovering BENCHMARK PRICE IMPROVEMENT Phosphate fertilisers seeing price increases Phosphate rock (Morocco), 70% BPL, contract, f.a.s. Casablanca Phosphate rock is benefiting 140 130 120 Benchmark pricing coming off cyclical 10-year lows, up >1
Slide 7: Africa: The fastest growing fertiliser market
Africa: The fastest growing fertiliser market Large, established phosphate industry in North and West Africa Market price benchmark Sought after product by Europe, India and Americas Senegal is a stable West African jurisdiction with multiple mining success stories. 7
Slide 8: The Baobab Project
The Baobab Project 80% - Avenira 20% - Mimran Group An established phosphate rock mine in Senegal, West Africa Operations commenced in 2016 Currently processing stockpiles at the Gadde Bissik Mine 8
Slide 9: Baobab Project: Current operations
Baobab Project: Current operations Avenira is processing existing ROM piles at the Gadde Bissik Mine at Baobab Valuable experience gained from operations Selling to local vertically-integrated phosphoric acid producer Potential to extend operations by recommencing mining Mining suspended i
Slide 10: Baobab Project: Hitting the key milestones
Baobab Project: Hitting the key milestones ALREADY OPERATING LARGE MINERAL RESOURCES INFRASTRUCTURE In-country operating skills Indicated Resources of Readily accessible Supply chain experience 42.1Mt @ 19.4% P2O5 sealed roads Experience with phosphate Inferred Resources of Access to export infrastr
Slide 11: Baobab Expansion: 1Mtpa projected capacity
Baobab Expansion: 1Mtpa projected capacity Feasibility Study delivers strong economics Study finds Baobab Project 1Mtpa expansion feasible, confirming technical and financial robustness High-grade 36.4% P2O5 phosphate rock concentrate product Maiden Probable Ore Reserve of 39.3Mt at 18.9% P2O5
Slide 12: Baobab Expansion Study: Key financial outcomes
Baobab Expansion Study: Key financial outcomes Baobab Phosphate Rock Concentrate FOB Dakar Price (LOM range) US$/t 138 - 164 Total Revenue US$M 1,997 EBITDA US$M 1,020 NPV8% (unlevered, pre-tax) US$M 306 IRR (unlevered, pre-tax) % 29.4 NPV8% (unlevered, post-tax) US$M 212 IRR (unlevered, post-tax) %
Slide 13: Baobab Expansion: Permitting
Baobab Expansion: Permitting EXPLOITATION PERMIT GRANTED Baobab Exploitation Permit granted by the Government of Senegal Permit valid for a 20-year renewable term and covers a 75km2 area The Senegalese Government will hold a 10% free-carried interest in the legal entity owning the Permit, and
Slide 14: Baobab Expansion: Timetable
Baobab Expansion: Timetable 20-year Exploitation Permit ✅Completed Testwork for high grade product specification ✅Completed Increase Mineral Resources ✅Completed Concept Study ✅Completed Feasibility Study ✅Completed Testwork to validate expansion flowsheet In progress In progress, Bankable Feasibili
Slide 15: Wonarah Project
Wonarah Project SLEEPER PROJECT? 100% owned by Avenira One of the largest phosphate deposits in Australia Huge resource: Measured Resource of 65 Mt @ 22.4% P2O5 Indicated Resource of 133 Mt @ 21.1% P2O5 Inferred Resource of 352 Mt @ 21% P2O5 (15% cut-off) Excellent infrastructure Acc
Slide 16: JDC Phosphate
JDC Phosphate AVENIRA HAS A 7% INTEREST IN JDC PHOSPHATE A US-based private company seeking to commercialise the “Improved Hard Process” technology for super-phosphoric acid production Technology is potentially applicable to Avenira’s Baobab and Wonarah Projects Avenira has exclusive rights to
Slide 17: Key Milestones
Key Milestones ACHIEVED Construct and successfully operate a mine Develop in-country capability Supply chain experience Avenira is extremely well placed to Increase Mineral Resources exploit the upswing in the global Concept study to support expansion rock phosphate market Testwork to supp
Slide 18: Avenira Limited
Avenira Limited ABN 48 116 296 541 www.avenira.com Suite 19, 100 Hay Street Subiaco, Western Australia 6008 AUSTRALIA PO Box 1704 West Perth WA 6872 AUSTRALIA +61 8 9264 7000 frontdesk@avenira.com 18