Parkway Corporate Limited · ASX:PWN
Parkway Corporate — Potash West NL — Investor Presentation (October 2015)
28 slides from Parkway Corporate's investor presentation, Oct 7, 2015
Slide 1: Amended Potash West Presentation October 2015
ASX Announcement 7 October 2015 For personal use only COMPANY DETAILS AMENDED POTASH WEST PRESENTATION OCTOBER 2015 ABN: 62 147 346 334 PRINCIPAL AND Potash West NL (the Company) advises the ASX release on 30 September 2015 has REGISTERED OFFICE been amended, with a change to slide 22 to comply with
Slide 2: World Class Fertiliser Products from World Class Assets
For personal use only WORLD CLASS FERTILISER PRODUCTS FROM WORLD CLASS ASSETS Investor presentation October 2015
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 – 30 SEPTEMBER 2015 AU$0.03 MARKET CAP. AU$6M SHARES ON ISSUE (1) 218 M 12 MONTH RANGE 3c – 7c TOP 20 SHAREHOLDERS 52% MGMT AND DIRECTORS 11% (1) Plus 36M partly paid and 5M options BOARD Adrian Griffin – Chairman Mine production an
Slide 7: Investment Case
INVESTMENT CASE Creating opportunities in the global fertiliser industry: For personal use only Exploring one of the world’s largest glauconite deposits, 150 km from Perth, close to markets in WA and SE Asia. Low capex, low risk route to cashflow through phosphate production first. Low impact
Slide 8: Population Dynamics
POPULATION DYNAMICS For personal use only “The challenge is clear. With nearly 1 billion people already suffering from hunger and malnutrition in some of the fastest growing areas of the world, the challenge of doubling food production by 2050 will become more difficult as key resources become incre
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 Forecast value of US$172B in 2015, For personal use only Fertiliser wholesalers mix products for region, from bulk raw materials: Nitrogen (109 Mtpa, N): from air, gas and coal Urea Ammonia Nitrate Phosphates (41Mtpa, P): mined from rock phosphate deposits Superphos
Slide 11: Dandaragan Project Location
DANDARAGAN PROJECT LOCATION For personal use only +2,600 km2 of prospective area ~150km of strike ~+20km width Many intersections +40m Great infrastructure Rail Power Gas Water Close to local markets, WA and SE Asia Similar mining activity already in region Close to export po
Slide 12: Exploration
EXPLORATION Focus on Northern area, 432 For personal use only holes drilled, 1182m on Dinner Hill Numerous intersections of high grades close to the surface Dambadjie, +60m of high grade Dinner Hill, first resource, phosphate closer to surface 11
Slide 13: Dambadjie Prospect
DAMBADJIE PROSPECT DRILL SAMPLES For personal use only PHOSPHATE K-MAX 12
Slide 14: Phosphate Flowsheet
For personal use only PHOSPHATE FLOWSHEET 13
Slide 15: Phosphate Plant Study Parameters
PHOSPHATE PLANT STUDY PARAMETERS Mining Rate 4 Mtpa For personal use only One product: 400,000 tpa Single superphosphate Commodity Grade, 18% P2O5 Capex and Opex estimates +/-35% 100,000 tpa consumed locally, balance exported Project works, despite low feed grade, because: Unconsolidat
Slide 16: Scoping Study Results - Phosphate
SCOPING STUDY RESULTS - PHOSPHATE For personal use only THROUGHPUT 4 mtpa NPV8 AU$M (1) 378 CAPITAL COSTS, AU$M 205 OPEX, AU$/tonne of PRODUCT 190 REVENUE , AU$/tonne of PRODUCT 320 IRR% (1) 20.5 MINE LIFE +40 YEARS EBITDA (1), AU$M pa 52 (1) Ungeared, pre-tax 15
Slide 17: K-Max Project
K-MAX PROJECT For personal use only Stage 2 for Dinner Hill Using new technology, K-Max Suite of products, sulphate of potash (SOP), high Mg SOP, Alum, Phosphoric Acid. Capex $596 M, IRR 30%, EBITDA $260 M Revenue Mix: Phosphate 40% Potash 30% Alum 25% 16
Slide 18: Technology
TECHNOLOGY For personal use only K-Max IP 100% owned Li technology 21% owned Working with Strategic Metallurgy to securitise Objective to licence technology to project developers 17
Slide 19: Dinner Hill Development Timelines
Dinner Hill Development Timelines For personal use only 2015 2016 2017 2018 2019 2020 2021 2022 2023 Phosphate Project Feasibility Study Construction Operation K-Max Project Prefeasibility Study Feasibility Study Construction K-Max Operation 18
Slide 20: 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 21: Potash Mines in Germany
POTASH MINES IN GERMANY Germany has a long history of For personal use only potash mining Extensive deposits, in Zechstein beds laid down in Permian Period 5th largest producer in world Western Europe is a net importer of potash Extensive expertise exists within Germany Established infra
Slide 22: 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 23: Focus on Küllstedt
For personal use only FOCUS ON KÜLLSTEDT JORC Exploration Target released on ASX 4 March 2015 Establish drill programme to Potash processing NE of Küllstedt target a JORC inferred resource of +200 M tonne Build up local team 22
Slide 24: 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, a subsidiary of Arunta Resources,
Slide 25: Corporate Structure
Corporate Structure Potash West NL For personal use only 100% 100% 100% East Exploration Dinner Hill Mining K-Max Holdings Company Pty Ltd Technology Pty Ltd •55% of East Exploration Pty Ltd •Potash, Phosphate and by-products rights in EL 3987, Western Australia • Process IP and know-how •Licence to
Slide 26: Market Cap. of Fertiliser Explorers and Developers
MARKET CAP. OF FERTILISER EXPLORERS AND DEVELOPERS For personal use only 100 817 680 100 80 Market Cap, 60 $M 40 20 0 As at September 2015 25
Slide 27: 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 with large scale K-Max process Control of one of the world’s largest known glauconi
Slide 28: Questions?
QUESTIONS? For personal use only Patrick McManus Unit 3 Managing Director 23 Belgravia Street Mobile +61 (0) 408 956 798 Belmont WA 6104 patrick.mcmanus@potashwest.com.au PO Box 588 Adrian Griffin Belmont WA 6984 Chairman Mobile +61 (0) 418 927 658 Phone +61 (0) 8 9479 5386 adrian.griffin@potashwest
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