Arianne Phosphate Inc. · TSXV:DAN
Arianne Phosphate — Investor Presentation (December 2019)
19 slides from Arianne Phosphate's investor presentation, December 2019
Slide 1: Corporate Presentation December 2019
DECEMBER 2019 TSX-V: DAN OTC: DRRSF CORPORATE PRESENTATION Contacts Brian Ostroff, CEO brian.ostroff@arianne-inc.com Jean-Sébastien David, COO j.s.david@arianne-inc.com
Slide 2: Disclaimer
DISCLAIMER Total resources only include the measured and indicated categories. Mineral resources that are not mineral reserves have not demonstrated economic viability. Additional trenching and/or drilling will be required to convert inferred mineral resources to indicated or measured mineral resour
Slide 3: Phosphate: Essential to Global Food Security
PHOSPHATE: ESSENTIAL TO GLOBAL FOOD SECURITY The most important (87%) use of phosphate is the production of fertilizers. Phosphate is the component of fertilizer essential for root and stem development in plants. Phosphate rock is the raw material for all phosphate products with >95% converted to ph
Slide 4: Phosphate Rock: Igneous vs Sedimentary Deposits
PHOSPHATE ROCK IGNEOUS VS SEDIMENTARY DEPOSITS Sources of Phosphate Rock: Igneous Deposits Sedimentary Deposits Grade of ore 4-15% P2O5 10-30% P2O5 (nutrient) IGNEOUS PHOSPHATE Crushing Consolidated rocks vs. Very easy if the rocks are unconsolidated SEDIMENTARY Beneficiation Efficient processing Le
Slide 5: Phosphate Rock: Igneous Premium
PHOSPHATE ROCK: IGNEOUS PREMIUM Arianne holds Measured and Indicated Resources of 702 Mt at 7.16% P2O5* (cut-off grade at 4%) including Proven and Probable Reserves of 472 Mt at 6.9% P2O5** (cut-off grade at 3.5% P2O5) Results of metallurgical work completed on Arianne bulk sample ore have proved: -
Slide 6: Supply & Demand of Phosphate Rock
SUPPLY & DEMAND OF PHOSPHATE ROCK 85% of Global Phosphate Rock is integrated with downstream production. Downstream Middle East Other Traded 30% Intergrated and Northern 15% 85% Africa 70% 70% of traded rock is sourced from Middle Eastern Countries and Northern Africa Significant Risks affecting tra
Slide 7: The Lac à Paul Project
THE LAC À PAUL PROJECT The highest quality shovel ready project globally. December 2019 Copyright© 2018 Arianne Phosphate Inc. 7
Slide 8: The Lac à Paul Project: Target Market
THE LAC À PAUL PROJECT Target Market Transport costs: New Orleans, USA - $11/t Coatzacoalcos, Mex - $12/t Callo, Peru - $20/t Porsgrunn, Nor - $15/t Antwerrp, Belgium - $14/t India - $35/t December 2019 Copyright© 2019 Arianne Phosphate Inc. 8
Slide 9: Development Progress: Working Towards 50 Years Mine Life
DEVELOPMENT PROGRESS: WORKING TOWARDS 50 YEARS MINE LIFE Drilling surrounding the Paul Zone and its extensions has shown the potential of additional resources (Cut-off grade at 3.5% P2O5)*: Nicole Zone: 78 Million tons of Inferred resources at 5.3% P2O5 TraMan Zone: 146 Million tons of Inferred reso
Slide 10: Development Progress
DEVELOPMENT PROGRESS 2013 - Bankable Feasibility released with robust financial results. 2014 - Quebec Government joins financing of Lac à Paul Project 2015 - Optimization of processing and mine plan reducing production costs 5% - Updated 43-101 Resources completed expanding resource - Collaboration
Slide 11: Development Progress
DEVELOPMENT PROGRESS 2018 - Executed formal offtake agreements with growing pipeline of prospects - Port of Saguenay receives go-ahead for North Shore Terminal - Engagement of NB Government for study of downstream Phos Acid Plant 2019 Objectives - Finalize Impact Benefits Agreement with Innu First N
Slide 12: Project Highlights
PROJECT HIGHLIGHTS Proven & Probable reserves of 472 Million tons at 6.9% P2O* included in subsequently published M&I resources which totaled 702 Mt at 7.16% Bankable P205** for Paul Zone and its extensions Feasibility Additional M&I Resources at Manouane Zone of 164 Million tons at 5.9% P2O5 at a 2
Slide 13: Downstream Opportunities
DOWNSTREAM OPPORTUNITIES In partnership with Opportunities New Brunswick and Regional Development Corporation, Arianne has completed a pre- feasibility study. In addition to securing long-term offtake for the Lac à Paul Project, Arianne would capture downstream value and increase market through broa
Slide 14: Project Finance
PROJECT FINANCE Information Memorandum circulated in 2018 by financial advisors. • substantial review and independent due diligence process • no fatal flaws identified and resulted in further optimization opportunities • confirmation of robust economics demonstrated under bankable feasibility • re
Slide 15: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Management Team Brian Ostroff – CEO: see below J.S. David – COO: Geologist; formerly VP-Sustainable Development for Osisko, previously with Iamgold, Cambior, Louisiana-Pacific Andrew Malashewsky – CFO: mining experienced CPA, CA; Coeur Mining Inc., JDS Silver Inc., JDS En
Slide 16: Share Structure and Capitalisation
SHARE STRUCTURE AND CAPITALISATION Capital Structure Dilutive Securities (000’s Except Per Share Figure) As at October 31, 2019: Current Share Price $ 0.39 Type Avg. Exp Avg. Strike Amount 52-Wk High $ 0.65 Warrants 0.95 yr $ 0.41 36,342 52-Wk Low $ 0.33 Options 4.85 yr $ 0.88 6,860 Share Outstandin
Slide 17: Fundamentals v. Share Price
FUNDAMENTALS V. SHARE PRICE December 2019 Copyright© 2019 Arianne Phosphate Inc. 17
Slide 18: Investment Thesis
INVESTMENT THESIS Project is substantially de-risked, permitted and ready Shovel Ready for to move through development to cash flow. Fully Permitted All major permits received and in good standing. Premier mining jurisdiction with strong government Low Risk Jurisdiction and community support. Worlds
Slide 19: Head Office Contacts
Head Office Contacts 393 Racine St. E., Suite 200 Jean-Sébastien David, COO Chicoutimi, QC G7H 1T2 j.s.david@arianne-inc.com Canada Tel: (418) 549 7316 Brian Ostroff, CEO Fax: (418) 549 5750 brian.ostroff@arianne-inc.com Email: info@arianne-inc.com Web site: www.arianne-inc.com
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