Parkway Corporate Limited · ASX:PWN
Parkway Corporate — Potash West NL — Shareholder Meeting (November 2016)
24 slides from Parkway Corporate's shareholder meeting presentation, Nov 29, 2016
Slide 1: Annual General Meeting November 29th 2016
ANNUAL GENERAL MEETING NOVEMBER 29TH 2016 For personal use only November 2016 AGM Preseentation -Perth- 29 November 2016 1
Slide 2: For personal use only
This presentation is for information purposes only. Neither this presentation nor the information contained in it constitute 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 jurisdi
Slide 3: Agenda
Agenda For personal use only • Company snapshot • Fertiliser overview • Dandaragan Trough project, Western Australia • South Harz project, Germany • Value proposition November 2016 AGM Preseentation -Perth- 29 November 2016
Slide 4: Corporate snapshot
Corporate snapshot For personal use only ASX CODE PWN Board of directors SHARE PRICE – 28 Nov 2016 A$0.025 • Adrian Griffin – chairman: mine production and corporate management. MARKET CAP. (at 2.5 c) A$8.75 M • Patrick McManus – managing director: SHARES ON ISSUE 1 350 M industrial minerals special
Slide 5: Investment case
Investment case For personal use only • Develop a fertiliser business underpinned by one of the world’s largest glauconite deposits, located to markets in WA and southeast Asia: – low-capex, low-risk route to cash flow from phosphate production. – high-value potash project to follow and operate in p
Slide 6: Global outlook for fertilisers
Global outlook for fertilisers For personal use only Population (Billions) LHS Arable Land per person (hectares) RHS 10 0.45 9 0.4 Food demand predicted to 8 0.35 double by 2050, due to: 7 Population (B) 0.3 • population growth Arable land 6 0.25 5 • diminished arable land 0.2 4 0.15 • dietary chang
Slide 7: The fertiliser business
The fertiliser business For personal use only • Three fertiliser bulk components: – N (nitrogen) promotes green growth – P (phosphorous) promotes plant yield potential – K (potassium) enables plant uptake of nutrients from soil and air. • Three minor components: Ca, S and Mg. • Most soils deficient
Slide 8: Global fertiliser business
Global fertiliser business For personal use only N P K 21% 49% Value of US$172 billion in 2015 • Nitrogen (109 Mtpa N) from air, gas and coal: 30% – urea – ammonia nitrate • Phosphates (41 Mtpa P) mined from rock phosphate deposits: – superphosphate – phosphoric acid – mono-ammonium phosphate and di
Slide 9: Phosphate rock production and demand by region
Phosphate rock production and demand by region For personal use only Consumption [Source: IFA and Potash Corp.] November 2016 AGM Preseentation -Perth- 29 November 2016
Slide 10: Phosphate product pricing
Phosphate product pricing For personal use only Single superphosphate bulk CPT Brazil, US$/t 315 310 305 300 295 290 285 280 275 270 [Source: CRU, Avenira.] 265 November 2016 AGM Preseentation -Perth- 29 November 2016
Slide 11: Potash product pricing
Potash product pricing For personal use only MOP, FOB Vancouver US$/t 600 500 400 300 200 • MOP affected by over-supply. 100 0 • SOP remains strong. SOP, FCA NW Europe €/t 600 500 400 300 [Source: CRU.] 200 100 0 November 2016 AGM Preseentation -Perth- 29 November 2016
Slide 12: Dandaragan project location
Dandaragan project location For personal use only • >2,600 km2 of prospective area: – ~150 km of strike – +20 km width – many intersections +40 m. • Great infrastructure: – rail – power – gas – water. • Close to local markets – WA and southeast Asia. • Similar mining activity already established in
Slide 13: Exploration
Exploration For personal use only • Focus on northern area – 432 holes drilled, 1182 m on Dinner Hill. • Numerous intersections of high grades near surface. • Dinner Hill, first resource, phosphate closer to surface. • Indicated Resource – 250 Mt @ 2.9% P2O5, within 20 km2 of prospective area 60 km2
Slide 14: Dambadjie prospect drill samples
Dambadjie prospect drill samples For personal use only PHOSPHATE Potash (K-Max) November 2016 AGM Preseentation -Perth- 29 November 2016
Slide 15: Phosphate flowsheet
Phosphate flowsheet For personal use only GREENSANDS ORE BULLDOZER MINING, 4,000 Ktpa @ PUMPING 4-5% P2O5 PRIMARY UPGRADE PHOSPHATE PLANT GRINDING, FLOTATION PLANT SCREENING, SIZING, MAGNETIC 250 Ktpa @ SEPARATION 30% P2O5 400 Ktpa @ clays mags fine coarse 12-16% P2O5 ACIDULATION PLANT BLENDING WITH
Slide 16: Phosphate scoping study
Phosphate scoping study For personal use only • Mining rate – 4 Mtpa • One product – 400,000 tpa single superphosphate • 100,000 tpa consumed locally – balance exported to SE Asia. • Contract mining delivers ore to beneficiation plant – reduces capital and risk. • Results reported Sept 30 2015 • Pro
Slide 17: Next Steps
Next Steps For personal use only • STAGE 1 PHOSPHATE STUDY – Completion of Pre-Feasibility Study – Permitting approvals – Seeking development partner • STAGE 2 K-MAX PROJECT – Using new technology, – Innovative supply source in a region that is a net importer of potash and phosphates – Can start in
Slide 18: Dinner Hill development timelines
Dinner Hill development timelines For personal use only 2016 2017 2018 2019 2020 2021 2022 2023 2024 Phosphate project Feasibility study. Construction. Operation. K-Max project Pre-feasibility study. Feasibility study. Construction. K-Max operation. November 2016 AGM Preseentation -Perth- 29 Novembe
Slide 19: Technology
Technology For personal use only • K-Max IP 100% owned: – potash from glauconite deposits, opportunities worldwide – application to other silicate sources of potash. • L-Max lithium extraction technology: – developed as an extension of K-Max – commercialisation by PLP – Potash West holds 97m PLP – m
Slide 20: East Exploration
East Exploration For personal use only • PWN owns 55% of East Exploration, a special purpose vehicle with two exploration licences in central Germany. • Counterparty, private interests. • Close to existing producers. • 450 km2 with extensive drilling database. • Working with Ercosplan, world-renowne
Slide 21: Küllstedt and Gräfentonna licences
Küllstedt and Gräfentonna licences For personal use only • Located in South Harz region (has produced 100 Mt of potash). • Several mines in production until 1990s and German reunification, when low potash prices led to closures. • 450 km2 of holdings. • Extensive drilling. KÜLLSTEDT • Close to exist
Slide 22: Market cap. of fertiliser explorers and developers
Market cap. of fertiliser explorers and developers For personal use only 868 568 140 120 A$m 100 80 60 40 20 0 [As at July 2016.] November 2016 AGM Preseentation -Perth- 29 November 2016
Slide 23: Value proposition
Value proposition For personal use only • Proximity to the most rapidly • German potash exploration upside: expanding fertiliser markets. – long production history – extensive database available • Dandaragan Trough: – quality partners. – control of one of the world’s largest glauconite/greensands de
Slide 24: For personal use only
For personal use only Patrick McManus Adrian Griffin Peter Nesveda PO Box 588 Managing Director Chairman Investor Relations Belmont WA 6984 +61 (0) 408 956 798 +61 (0) 418 927 658 +61 (0) 412 357 375 Phone +61 (0) 8 9479 5386 patrick.mcmanus@ adrian.griffin@ peter.nesveda@ Fax +61 (0) 8 9475 0847 po