Reward Minerals Ltd · ASX:RWD
Reward Minerals — Investor Presentation (September 2018)
32 slides from Reward Minerals's investor presentation, Sep 5, 2018
Slide 1: Reward Minerals Limited Corporate Presentation September 2018
REWARD MINERALS Developer of the LIMITED LD Brine SOP Project, the most compelling investment opportunity in the SOP space Corporate Presentation September 2018 ASX | RWD www.rewardminerals.com
Slide 2: Forward Looking Statements & Disclaimer
FORWARD LOOKING STATEMENTS & DISCLAIMER This document includes forward-looking statements. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should”, and similar expressions are forward-looking statements. Although RWD believes that t
Slide 3: Investment Rationale
INVESTMENT RATIONALE Highest Industry’s Largest most detailed, evaporation Deposit conservative rate Highest PFS Lowest Yet… average in- rainfall Undervalued situ grade Based on a key global investment theme: Feed the world! The most compelling investment opportunity in the SOP space 3
Slide 4: Contents
CONTENTS ►Corporate Snapshot ►What’s in a name? ►SOP Market Overview ►Brine Essentials ►LD Project Overview & Metrics ►Upcoming Milestones ►Conclusions 4
Slide 5: Corporate Snapshot
CORPORATE SNAPSHOT Capital Structure 31 Aug 2018 ASX:RWD Ordinary Shares on Issue 161.8m Rights and Options on Issue 17.5m Share Price $0.17 Undiluted Market Capitalisation $27.5m Short Term Debt A$0.5m Net Cash & Equivalents ~A$5.8m Undiluted Enterprise Value A$22.2m Major Shareholders Name Shares
Slide 6: What's in a Name?
WHAT’S IN A NAME? Lake Disappointment, Explorer Frank Hann & Talbot 6
Slide 7: What Is SOP? Sulphate of Potash
WHAT IS SOP? SULPHATE OF POTASH Premium source of Potash (potassium) fertiliser K2SO4 (44.8% K, 55.2% S) ►An essential plant macronutrient; increases yields, water retention & disease resistance ►A (largely) chloride-free source of potassium and sulphur ►Sulphur also important nutrient, helps produc
Slide 8: What Is Driving SOP Growth?
WHAT IS DRIVING SOP GROWTH? World Population Arable Land 12 0.35 10 0.3 Population in billions Hectares per capita 8 0.25 0.2 6 0.15 4 0.1 2 0.05 0 0 1975 2000 2025 2050 1975 2000 2025 2050 Source: FAO, USA Today, Company Analysis Demand driven by Grow forecast: at least 4% pa ► Increasing populatio
Slide 9: SOP Markets and Prices
SOP MARKETS AND PRICES SOP is the premium Potash fertiliser The SOP:MOP Price premium has stayed close to U$270/t for Key Growth Markets most of the last three years China India Southeast Asia 2011 Historical Midpoint NW Europe SOP Prices LD Source: Integer Research – Used with permission Project 9
Slide 10: Where and How Is SOP Produced?
WHERE AND HOW IS SOP PRODUCED? Mostly from high cost, secondary supply (Mannheim & Sulphate Salts Processes) Primary supply from brines is the lowest cost source Yara Kokkola – 200ktpa Compass Minerals ▪ Mannheim Great Salt Lake – 300ktpa K+S ▪ Brine Aktiengesellschaft– 1,200ktpa Xinjiang Luobupo ▪
Slide 11: The Western Australian Players
THE WESTERN AUSTRALIAN PLAYERS 11
Slide 12: Brine Essentials
BRINE ESSENTIALS GRADE* & BRINE CHEMISTRY OPERATIONAL GEOLOGY ENVIRONMENT* BRINE FLOW Critical RATE* JURISDICTION success factors LOGISTICS* CATCHMENT AREA SOCIAL LICENCE* 12
Slide 13: Importance of Grade
IMPORTANCE OF GRADE What impact does grade have on a solar brine SOP operation? Simplified Evaporation Simulation 45.0 40.0 35.0 Potassium Concentration 30.0 25.0 Target 12g/L SoP 20.0 10g/L SoP 8g/L SoP 15.0 10.0 5.0 0.0 0 100 200 300 400 500 600 Days Elapsed 13
Slide 14: Implications of Lower Grade
IMPLICATIONS OF LOWER GRADE ► For the same output, lower grade operations need a proportional increase in brine feed (Gl per year) ► All things equal, lower grade brines take almost twice as long to concentrate to harvest grade ► Lower grade operations therefore require a proportional increase in po
Slide 15: Importance of Net Evaporation
IMPORTANCE OF NET EVAPORATION What impact does net evaporation have on a solar brine SOP operation? 15
Slide 16: Importance of Net Evaporation
IMPORTANCE OF NET EVAPORATION What impact does net evaporation have on a solar brine SOP operation? 16
Slide 17: Importance of Net Evaporation
IMPORTANCE OF NET EVAPORATION Simplified Evaporation Simulation 45.0 40.0 35.0 13.4g/L SoP Potassium Concentration 30.0 13.4g/L SoP 25.0 Target 20.0 Lake Disapp't GoldFields 15.0 10.0 5.0 0.0 0 100 200 300 400 500 600 700 800 Days Elapsed ► The evaporation process is significantly prolonged in milde
Slide 18: LD SOP Project – Overview
LD SOP PROJECT – OVERVIEW ► 100% owned ► Prefeasibility study recently completed ► 3,000km2 tenement coverage ► Granted Mining Lease ► Miscellaneous Licence in place ► Ground Water Licence Applications submitted ► Environmental assessment well- advanced ► Registered Indigenous Land Use Agreement in
Slide 19: How Does LD Stack Up With the CSFs?
HOW DOES LD STACK UP WITH THE CSF’S? GEOLOGY: GRADE/BRINE One large playa-style CHEMISTRY: OPERATIONAL deposit, 1,241 km2, up Highest average insitu ENVIRONMENT: to 90 m deep, low grade, favourable Highest evaporation, energy depositional chemistry lowest rainfall environment JURISDICTION: BRINE FLO
Slide 20: LD SOP Project – Grade
LD SOP PROJECT – GRADE ► Over 150,000,000 litres brine pumped from 2 shallow, 1 km long trenches in the last 9 months ► SOP grades consistently close to/averaging 13,000 mg/litre ► PFS Operational Assumption: 10,000 mg/litre 20 Source: See References in Compliance Section of Appendix
Slide 21: LD SOP Project – Flow Rates
LD SOP PROJECT – FLOW RATES ► 15 x 1.5 to 2 m deep trenches excavated (20 m – 1,000 m long) since 2016 ► Approximately 200,000,000 litres extracted to date ► Flow rates 6 to >100 litres/second/kilometre, 15 l/s/km used in PFS 21 Source: See References in Compliance Section of Appendix
Slide 22: LD SOP Project – Location/Logistics
LD SOP PROJECT – LOCATION/LOGISTICS 866 km from site to Port Hedland A world class port exporting millions of tonnes per year 511 km sealed road to Port Hedland 355 km of existing, frequently used track First 250 km designed in detail from terrain models at +/-100mm accuracy 22 Source: See Reference
Slide 23: LD SOP Project Metrics
LD SOP PROJECT METRICS Production •407,500 tpa, > 9 Mt SOP produced over 27 year-life •Less than 10% of resource extracted Capital cost •A$345 M, including indirects and owners costs (+/-20%) •A$451 M, including contingency and pre-production costs Operating Cost •Cash cost – A$335/tonne (FOB Port H
Slide 24: Current Focus & Milestones
CURRENT FOCUS & MILESTONES* Corporate ► Build corporate depth & capability to fund, permit, and develop LD ► Engage with potential strategic partners Environmental Assessment ► Finalise ERD (EIA) for public review Project Work ► Resource update/Reserve definition ► R&D to deliver process improvement
Slide 25: Conclusions
CONCLUSIONS Reward is ideally positioned … The LD Brine SOP Project is technically robust ► Conservative PFS conducted to exacting standards (+/-20%) ► Flowsheet independently reviewed (ERCOSPLAN) … and economically attractive, with ► Scope to improve economics on multiple fronts … and at 407,500 to
Slide 26: Appendices
REWARD MINERALS LTD APPENDICES
Slide 27: PFS Results – Capital Costs
PFS RESULTS – CAPITAL COSTS Initial and Sustaining Capital Costs (LOM Real) AUD M Production - Trenches and Ponds 57.6 Process Plant 73.2 Infrastructure 108.8 Site Support Temporary Services 2.9 Construction Costs 59.2 Subtotal 301.7 Indirect Costs (EPC, Consultants, Commissioning) 20.0 Owners Costs
Slide 28: PFS Results – Cash Opex Costs
PFS RESULTS– CASH OPEX COSTS A$91/t A$102/t Other Opex Costs Closure – A$2/t Martu Royalty – A$7/t Road Maint - A$15/t FOB Cash Cost: Site Services - A$22/t A$344/t (US$258/t) EBITDA Margin: A$105/t ~44.6% @ US$500/t Ex-Works Cost: A$239/t (US$180/t) Source: See References in Compliance Section of A
Slide 29: LD – Development Schedule
LD – DEVELOPMENT SCHEDULE2 2018 2019 2020 2021 2022 2023 ACTIVITY Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Project Quarter Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Project Assessment and Approval EPA Assessment and Approval Feasibility Study Feasibility
Slide 30: Experienced Board & Management
EXPERIENCED BOARD & MANAGEMENT Colin McCavana – Non-Executive Director, Chairman Daniel Tenardi – Projects Director - 30+ years experience in mining and earthmoving industries - 25+ years mining experience with various organisations including the management, acquisition and development of including
Slide 31: Compliance Statements
COMPLIANCE STATEMENTS Competent person statements: This information in this report that relates to Resource Estimation and hydrogeology is based on information compiled by Mr Robert Kinnell, a hydrogeologist and Competent Person who is a Member of The Australian Institute of Mining and Metallurgy an
Slide 32: Reward Minerals Ltd
Reward Minerals Ltd 159 Stirling Highway Nedlands, WA, 6009 (T): +61 8 9386-4699 (W): www.rewardminerals.com
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