Parkway Corporate Limited · ASX:PWN

Parkway Corporate — Potash West NL — Investor Presentation (January 2014)

33 slides from Parkway Corporate's investor presentation, Jan 20, 2014

  1. Slide 1: For personal use only

    wo o CLASS | ROD Janufary 2014

  2. Slide 2: Disclaimer

    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

  3. Slide 3: Competent Persons statements

    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

  4. Slide 4: Company Snapshot: Experienced Board and Management Team

    COMPANY SNAPSHOT For personal use only Experienced Board and Management Team Adrian Griffin – Chairman Mine production and corporate management, Founding director of Washington Resources, Ferrum Crescent and Northern Minerals, MD Cobre Montana Patrick McManus– Managing Director Industrial mineral

  5. Slide 5: Corporate Snapshot

    CORPORATE SNAPSHOT For personal use only ASX CODE PWN SHARE PRICE - 31Dec 2013 AU$0.09 MARKET CAP. AU$8.3M SHARES ON ISSUE 92 M 12 MONTH RANGE 9c – 28c TOP 20 SHAREHOLDERS 52% MGMT AND DIRECTORS 26% 5

  6. Slide 6: Investment Case

    INVESTMENT CASE  We are creating an opportunity in the global fertiliser For personal use only industry, :  Making fertiliser products from one of the world’s largest glauconite deposits, 150 km from Perth in WA, close to markets in WA and SE Asia.  Low capex, low risk route to cashflow through p

  7. Slide 7: 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

  8. Slide 8: 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

  9. Slide 9: For personal use only

    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 increasingly scarce and a

  10. Slide 10: Phosphate Market

    PHOSPHATE MARKET  International Phosphate Market Dominated by MENA(1) For personal use only  +50% of traded Rock Phosphate  +75% of reserves “The world faces a dangerous shortage of phosphate, which could slash global crop yields and send food prices soaring within a generation if nothing is done

  11. Slide 11: Distance advantage to importing regions

    For personal use only Distance advantage to importing regions 11

  12. Slide 12: SSP Price History and Forecast Price

    SSP PRICE HISTORY AND FORECAST PRICE 400 ee ee ee 300 200 Fob China US$ 100 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 Year potash Source: CRU Private communication WEST“ 12

  13. Slide 13: Rock Phosphate Price - FOB Morocco

    ROCK PHOSPHATE PRICE - FOB MOROCCO USS$/tonne 400 350 300 250 200 150 100 50 0 CEE Forecast a, SS many ae ee = 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 Year (2000 - 2020) Sour World Bank tash petze

  14. Slide 14: Project Location

    PROJECT LOCATION  +2,000 km2 of prospective area  ~150km of strike For personal use only  ~+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 ports 14

  15. Slide 15: Exploration

    EXPLORATION  Focus on Northern area, 409 For personal use only holes drilled, 159 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 15

  16. Slide 16: Dambadjie Prospect

    DAMBADJIE PROSPECT DRILL SAMPLES NODULES " 7 5.0 POISON HILL is 5. oe GREENSAND PHOSPHATE NODULES GINGIN CHALK PHOSPHATE NODULES MOLECAP GREENSAND BASEMENT 16

  17. Slide 17: Dinner Hill Phosphate Resource

    DINNER HILL PHOSPHATE RESOURCE For personal use only  Phosphate resource (JORC indicated), of 90 Mt @ 2.65%P2O5, close to surface  Within less than 20% of Dinner Hill target area 17

  18. Slide 18: Flow Sheet

    For personal use only FLOW SHEET 18

  19. Slide 19: Phosphate Plant Study Parameters

    PHOSPHATE PLANT STUDY PARAMETERS  Mining Rate 3.8 Mtpa For personal use only  One product: 342,000 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:  Unconsolid

  20. Slide 20: Scoping Study Results - Phosphate

    SCOPING STUDY RESULTS - PHOSPHATE THROUGHPUT 3.8 mtpa NPV, AUSM “ 218 CAPITAL COSTS, AUSM 144 OPEX, AUS/tonne OF PRODUCT 285 REVENUE, AU$/tonne OF PRODUCT 383 IRR % 26.2 MINE LIFE +20 YEARS FREE CASH FLOW, AUSM pa 33.0 (1) Ungeared, Pre-tax 20

  21. Slide 21: Development Plan

    DEVELOPMENT PLAN For personal use only  Immediate target, focus on phosphate project:  Circuit optimisation,  Flotation to treat chalk layer  Commence permitting  Investigate and quantify synergies between projects  Shared front end, mining and concentration plant  Shared infrastructure  Pur

  22. Slide 22: Indicative Timeline

    INDICATIVE TIMELINE Activity 2013 2014 2015 2016 2017 For personal use only Phosphate scoping study updated JORC resource updated scoping study JORC measured resource flowsheet finalisation OPEX, CAPEX and financial assessment Permitting Plant Construction Commissioning 22

  23. Slide 23: Value proposition, market capitalisation of explorers and developers

    Value proposition, Market capitalisation of explorers and developers, A$M For personal use only 250 200 150 100 50 0 MBAC ( TSX V Arianne Rum Jungle ( Chatham Rock Minemakers Fertoz (ASX: Potash West ( Celamin (ASX Minbos (ASX MBC) (TSX:DAN) ASX: RUM ) Phosphate (ASX MAK) FTZ) ASX: PWN) CNL) MNB) (N

  24. Slide 24: Investment Highlights

    INVESTMENT HIGHLIGHTS  Exposure to the growing fertiliser business For personal use only  Region is major importer  Strategic location  Low risk start up with phosphate project  Blue sky with large scale K-Max process  High margin operations  Control of one of the world’s largest known glauco

  25. Slide 25: Appendix: K-Max Process

    APPENDIX: K-MAX PROCESS For personal use only A process developed by Potash West to produce a range of chemicals from Glauconite 25

  26. Slide 26: Potash Production and Sales by Region

    POTASH PRODUCTION AND SALES BY REGION WORLD POTASH PRODUCTION WORLD POTASH SALES 2011: 54.3 MT 2011: 54.5 MT 2010: 50.2 MT 2010: 52.7 MT Source: ip) se Potash Corp

  27. Slide 27: Potash Pricing - FOB Vancouver

    POTASH PRICING - FOB VANCOUVER MURIATE OF POTASH (KCL) 1000 800 600 400 USS$/tonne 200 0 Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May 2007 2008 2009 2010 2041 2012 2013 YEAR 27

  28. Slide 28: Dinner Hill K-Max Resource

    DINNER HILL K-MAX RESOURCE  Total high grade K-Max resource 122 Mt @ 4.6%K2O, within less than 20% of Dinner Hill target area. Total area 60 sq km. For personal use only  Exploration target of 1 to 1.5Bt, @ 4.0 to 4.8% K2O (NB: The potential quantity and grade of the target is conceptual in nature

  29. Slide 29: K-Max - Flowsheet

    K-MAX - FLOWSHEET BULLDOZER MINING, PUMPING PHOSPHATE PLANT TAILS BACK TO PIT GLAUCONITE CONCENTRATE K-MAX PLANT PRIMARY LEACHING CRYSTALLISATION LEACH RESIDUE CO-PRODUCT RECOVERY CO-PRODUCT SEPARATION

  30. Slide 30: K-Max Study Parameters

    K-MAX STUDY PARAMETERS For personal use only Mining Rate 2.4 Mtpa Suite of products:  85,000 tpa Sulphate of Potash, SOP  195,000 tpa high Magnesium SOP, KMS  220,000 tpa Iron oxide  900,000 tpa Aluminium Sulphate  310,000 tpa phosphate  SOP and Phosphate consumed locally Balance exported

  31. Slide 31: K-Max Study Results

    K-MAX STUDY RESULTS For personal use only THROUGHPUT 2.4 mtpa NPV10 $m 808 Capital Costs, $m 650 Opex, $/tonne of feed 55 Revenue, $/tonne of feed 150 Alum 40%, Potash 30%, Phosphate 25%, Iron 5% IRR % 21 Mine Life +60 years Free Cash Flow $AM, pa 228 31

  32. Slide 32: K-Max Development Plan

    K - MAX DEVELOPMENT PLAN ACTIVITY COMPLETION K - MAX PILOT PLANT 1 YEAR PRE - FEASIBILITY STUDY FEASIBILITY STUDY 1-2 YEARS CONSTRUCTION 2-3 YEARS COMMISSIONING 1 YEAR 32

  33. Slide 33: 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

Potash West NL — Investor Presentation (January 2014) on 6ix