Apc Minerals Limited · ASX:APC
Apc Minerals — Australian Potash — Investor Presentation (March 2017)
20 slides from Apc Minerals's investor presentation, Mar 29, 2017
Slide 1: Lake Wells Potash (SOP) Project: Best Positioned for Early Market Entry
For personal use only Lake Wells Potash (SOP) Project Best Positioned for Early Market Entry Scoping Study Presentation March 2017
Slide 2: Cautionary Statement & Disclaimer
Lake Wells Potash Project Cautionary Statement & Disclaimer Scoping study – cautionary statement For personal use only The Study referred to in this announcement is a preliminary technical and economic investigation of the potential viability of the Lake Wells Potash Project. It is based on low accu
Slide 3: Competent Persons Statements
Lake Wells Potash Project Competent Persons Statements The information in the announcement that relates to Exploration Targets and Mineral Resources is based on information that For personal use only was compiled by Mr Jeffery Lennox Jolly. Mr Jolly is a principal hydrogeologist with AQ2, a firm tha
Slide 4: Corporate Overview
Lake Wells Potash Project Corporate Overview Capital structure Shareholders For personal use only ASX Code APC Board & management 8% Share price 11.5c Significant shareholders 19% Shares on issue 221m § Mark Creasy 13% Options (unlisted, various) 30m Top 20 49% Market Cap. $25.4m Cash (31 December 2
Slide 5: Introduction
Lake Wells Potash Project Introduction Australian Potash Limited (ASX: APC) has completed a For personal use only Scoping Study into developing the Lake Wells Potash Project in Western Australia’s Eastern Goldfields • 100% owned Project located in one of the best mining jurisdictions in the world •
Slide 6: Scoping Study team
Lake Wells Potash Project Scoping Study team Consultants In-house For personal use only Process modelling and plant design Alan Rubio B.Eng. (Mechanical) Project Manager with +20 years experience in design, study management and project engineering Brine resource and bore field design Shaun Triner B.
Slide 7: Robust Financial Model
Lake Wells Potash Project Robust Financial Model Scoping Study shows strong financial returns on a long mine life, low operating expenditure development For personal use only Variable Approximate pre-tax NPV10%* A$500m US$385 Approximate pre-tax IRR 33.0% LOM average operating pre-tax A$118m p.a. US
Slide 8: Stage Development
Lake Wells Potash Project 2 Stage Development APC will mitigate operational and commodity price risk through developing a staged development approach For personal use only Development Years Production CAPEX (incl. Payback contingency) Stage 1 1 -5 150,000 A$175m^ 2.9 years Stage 2 6 - 20 300,000 A$1
Slide 9: High Margin Operation
Lake Wells Potash Project High Margin Operation Scoping Study modelled SOP sales price and operating expenditure show high operating margin For personal use only Green Australian CRU Fertecon Average Markets distributors Australian landed A$844 A$901 A$801 A$946 A$873 price per tonne SOP SOP price p
Slide 10: Low Risk Brine Extraction
Lake Wells Potash Project Low Risk Brine Extraction Brine For personal use only extraction model is simple, low- risk & technically simple bore field development This method of brine extraction is commonly used in Australia for mining operations’ water supply 10
Slide 11: Evaporation Ponds
Lake Wells Potash Project Evaporation Ponds On-playa For personal use only evaporation ponds will be built taking advantage of the natural topographic and lake surface structures Not a Company asset. 11
Slide 12: Site Layout
Lake Wells Potash Project Site Layout Geotechnical program For personal use only indicates siting evaporation ponds on playa surface Harvest ponds (red) to be built off- playa and sealed to ensure maximum recovery of Stage 1: total pond area c.12.7km2 (incl. harvest ponds c.2.3km2) potassium Stage 2
Slide 13: Process Plant
Lake Wells Potash Project Process Plant Process plant CAPEX For personal use only estimated including: An MOP to SOP conversion circuit A Granulation plant: APC will produce 100% premium grade granulated SOP 13
Slide 14: Process Modelling
Lake Wells Potash Project Process Modelling An MOP to SOP conversion circuit has been modelled within For personal use only the plant • NOT a Mannheim conversion process but the simple addition of MOP + water to the existing crystalliser unit • Takes advantage of the natural excess levels of sulphat
Slide 15: Focus of Operations
Lake Wells Potash Project Focus of Operations For personal use only Modelled mine life extracts only 34% of the Indicated Resource in the Western High Grade Zone and 33% of the Inferred Resource in the Southern Zone, providing opportunities to extend LOM with inclusion of the Eastern Zone (4.6mt SOP
Slide 16: Significant Opportunities for Upside
Lake Wells Potash Project Significant Opportunities for Upside For personal use only • Increase to LOM through continued exploration, and modelling the Eastern Zone (4.6Mt Indicated) • Modularisation of the plant construction • Alternative power sources reducing OPEX • Bulk versus bulka-bag producti
Slide 17: Timeline & Next Steps
Lake Wells Potash Project Timeline & Next Steps 2017 2018 2019 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 For personal use only Project Optimisation & de-Risking Ongoing site investigations Testwork programs Feasibility study Project funding Early works FEED Project execution • Optimisation studies, site inve
Slide 18: Peer Comparison
Lake Wells Potash Project Peer Comparison AMN KLL RWD SO4 For personal use only Share Price $0.125 $0.60 $0.40 $0.39 $0.54 Market Cap. A$m $27 $75 $56 $55 $86 200kt > Production p.a. 150kt > 300kt 370kt n/s 400kt 400kt Bore Trenching & Method Trenching n/s Trenching Pumps Bore Pumps Stated A$m $500
Slide 19: JORC Mineral Resource Estimate
Lake Wells Potash Project JORC Mineral Resource Estimate Drainable K Volume of Specific SOP Grade SOP Brine Concentration Aquifer Yield (mg/L) Resource Volume (mg/L) For personal use only Hydrogeological Unit Weighted Weighted MCM Mean MCM MT Mean Value Mean Value Indicated Resources Western High Gr
Slide 20: Thankyou
For personal use only Thankyou 20
Australian Potash — Investor Presentation (March 2017) on 6ix