Gensource Potash Corp. · TSXV:GSP
Gensource Potash — Investor Presentation (January 2022)
39 slides from Gensource Potash's investor presentation, January 2022
Slide 1: Potash With Purpose
TSXV: GSP AIM:GSP Potash With Purpose Leading The Way To Sustainable Food Security TSXV:GSP AIM:GSP January 2022 gensourcepotash.ca
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements TSXV: GSP AIM:GSP The information contained in this confidential presentation (this “Presentation”) is considered current as of the date hereof. There is no representation or warranty by Gensource Potash Corporation (the “Company” or “Gensource”) as to th
Slide 3: Sections
Click to edit Master title style TSXV: GSP AIM:GSP 1 Overview 2 Gensource Method & Tugaske Project Sections 3 ESG Leader 4 Appendix 2022-01-04 gensourcepotash.ca 3
Slide 4: Management team
Management team TSXV: GSP AIM:GSP The core project team (technical team) within Gensource is the same team that led Potash One Inc. in developing the Legacy Project in Saskatchewan. Potash One was subsequently acquired by K+S AG in 2011 for $CAD 434M. The project started producing potash as the Beth
Slide 5: Investment summary
Investment summary TSXV: GSP AIM:GSP Tugaske is a “shovel ready” Attractive Global KCl dynamics 10-Year off-take agreement with proven development partners Growing global population, growing secured ready to begin construction, start- food needs and close proximity (with A renewable take-or-pay off-
Slide 6: Feeding the world requires more potash
Feeding the world requires more potash TSXV: GSP AIM:GSP 10 BILLION POTASH SUSTAINABLE Estimated global population in 2050 Necessary component in fertilizer Unlike traditional potash companies, will make food security an ongoing that helps farmers produce healthier Gensource utilizes innovative, cha
Slide 7: Gensource's business model stands on 2 pillars
Gensource's business model stands on 2 pillars TSXV: GSP AIM:GSP TECHNICAL INNOVATION VERTICAL INTEGRATION (Size-appropriate, scalable, efficient and (Pre-sell the product to a well known environmentally sustainable) and strong partner) Selective solution mining technology contrasts Partnering with
Slide 8: Vertical integration? We call it common sense
Vertical integration? We call it common sense TSXV: GSP AIM:GSP • We believe that vertical integration with the end-user, the agricultural producer, allows us to achieve optimal efficiency of planned Tugaske and value for all stakeholders. Project production is • More direct access to the product fo
Slide 9: Potash market overview
Potash market overview TSXV: GSP AIM:GSP Our Target Market Right in Our Backyard Global Market Size Five core regions account for 60% of total US muriate Global KCl demand expected to grow at a 2% CAGR, of potash (“MOP”) consumption resulting in total demand of 88.7 million tonnes by 2035 MOP usage
Slide 10: Section – Gensource Method & The Tugaske Project
Click to edit Master title Section 2 – Gensource Method style TSXV: GSP AIM:GSP & The Tugaske Project A smaller carbon footprint was always part of our bigger plan. - Gensource 2022-01-04 gensourcepotash.ca 10
Slide 11: Technical innovation will allow Gensource to create independent modular facilities
Technical innovation will allow Click to edit Gensource Master to create a seriestitle of style TSXV: GSP AIM:GSP independent, scalable and environmentally sustainable potash Our approach is modular. production facilities in Saskatchewan Our goals are big. and other jurisdictions in the world. Produ
Slide 12: Tugaske Project highlights
Tugaske Project highlights TSXV: GSP AIM:GSP Minimum 250,000 metric tonne per annum of saleable MOP using the proven selective solution extraction method Low capital, low operating costs Critical infrastructure already in place • Combining tested extraction methods • Located on or very close to with
Slide 13: Strategic location
Strategic location Click to edit Master title style Gensource HQ, Saskatoon TSXV: GSP AIM:GSP Vancouver • Located in south-central Saskatchewan, a potash-rich area, only 360 km north Tugaske Project, of the US-Canada border 170 KM SOUTH OF SASKATOON • Over 70,000 acres of Crown Toronto Mineral Lands
Slide 14: A closed loop method with little environmental impact
A closed loop method with little environmental impact TSXV: GSP AIM:GSP Our selective extraction method injects a hot salt (NaCl) brine into horizontal caverns in the ore body, which selectively dissolves KCl leaving salt in place. The KCI-rich brine is then processed (KCI ‘drops out’ through coolin
Slide 15: A clean, efficient extraction and processing method
A clean, efficient extraction and processing method TSXV: GSP AIM:GSP 2022-01-04 gensourcepotash.ca 15
Slide 16: Tugaske anticipated to be a low-cost supplier
Tugaske anticipated to be a low-cost supplier TSXV: GSP AIM:GSP Tugaske All-In Operating Costs CAD$ 85.08 /Tonne Average Retail Cornbelt Price (October 2021) - $US783/tonne Tugaske potash is (During Sask PPT Holiday) expected to be delivered within the Total delivered cost ($US/tonne) OpEx lowest qu
Slide 17: Impressive projected financial returns on Tugaske, our first project
Impressive projected financial returns on Tugaske, our first project TSXV: GSP AIM:GSP Economic Before Sask. After Sask. Final Indicator* PPT ($M) PPT ($M)** After-Tax ($M)*** NPV8 (CAD$) $635.4 $454.4 $310.4 IRR 21.74% 19.47% 17.10% This discounted cash flow (“DCF”) analysis for the Tugaske Project
Slide 18: Tugaske Project planned funding, sources and uses
Tugaske Project planned funding, sources and uses TSXV: GSP AIM:GSP Sources CAD$M CAD$M % Uses CAD$M % Project Equity (Cash and In-Kind) $191 40% Capex $318 68% Paid in Capital (Project Value) $36 Cost Overrun Account $40 8% Cash Required $155 Paid-In Capital (non-cash) $36 8% Helm Cash $50 Project
Slide 19: KClean Potash Corporation special purpose vehicle to deliver Tugaske
KClean Potash Corporation has been created as the special TSXV: GSP AIM:GSP purpose vehicle to deliver Tugaske project EQUITY EQUITY 67% 33% Paid in capital and new equity SPECIAL PURPOSE VEHICLE A CANADIAN, SASKATCHWAN-BASED CORPORATION OWNS AND OPERATES SENIOR KClean Potash POTASH RETAIL DEBT OFFT
Slide 20: Upcoming Milestones
Upcoming Milestones TSXV: GSP AIM:GSP 2022-01-04 gensourcepotash.ca 21
Slide 21: Section – ESG Leader
Section 3 – ESG Leader Click to edit Master title style TSXV: GSP AIM:GSP Environmental, Social and Governance (ESG)? We call it business as usual. Conventional potash mining methods are not capital efficient and take a toll on both the environment and local communities. There’s also much room for i
Slide 22: ESG is in our DNA
ESG is in our DNA TSXV: GSP AIM:GSP ENVIRONMENTAL SOCIAL GOVERNANCE Smaller physical footprint for less Collaboration with communities Accurate and ethical in all business impact on air, water, and land with to create long-term employment practices to create transparency no salt tailings or brine po
Slide 23: Our goal is net zero
Our goal is net zero TSXV: GSP AIM:GSP OFF-GRID LOW WATER USAGE NO HUB & SPOKE Self-generating, natural gas power produces Up to 75% less water usage Distribution model ensures half as much carbon dioxide per tonne than conventional customers receive products direct and an even smaller fraction of o
Slide 24: Intent to seek organic potash certification
Intent to seek organic potash certification TSXV: GSP AIM:GSP Organic certification opens premium markets that demand environmentally friendly inputs Organic Agriculture combines tradition, innovation and science to benefit the shared environment and promote fair relationships and a good quality of
Slide 25: The opportunity summarized
The opportunity summarized TSXV: GSP AIM:GSP Tugaske is a “shovel ready” Attractive Global KCl dynamics 10-Year off-take agreement with proven development partners Growing global population, growing secured ready to begin construction, start- food needs and close proximity (with A renewable take-or-
Slide 26: Contact Information
Click to edit Master title style TSXV: GSP AIM:GSP Contact Information Mike Ferguson, President & CEO mike@gensource.ca m. +1.306.291.8221 Rob Theoret, VP Finance & Business Development rob@gensource.ca m. +1.306.290.7325 gensourcepotash.ca 2022-01-04 gensourcepotash.ca 27
Slide 27: Section - Appendix
Click to edit Master Section 4 - Appendix title style TSXV: GSP AIM:GSP This widespread availability and use of fertilizers was arguably the industrial revolution’s single most important innovation for feeding the growing population. Today, the fertilizer industry is still recognized as an indispens
Slide 28: Public market overview
TSXV: GSP AIM:GSP Public market overview Capitalization (C$ millions, except per share amounts) Share Price Performance (52 Weeks) Share Price (as at Dec 30, 2021) $0.32 Fully Diluted Shares Outstanding (mm) 455 Market Capitalization $145.6 Add: Leases 0 Share Price C$ Less: Cash 3.0 Volume Add: Deb
Slide 29: Scalable, sustainable model delivers enhanced economics as we grow
TSXV: GSP Scalable, sustainable model delivers enhanced economics as we grow AIM:GSP The Tugaske Project is the first potash development project of its kind – an efficient and modular potash manufacturing plant. After the Tugaske Project, we intend to develop additional potash projects with new part
Slide 30: Past milestones
Past milestones TSXV: GSP AIM:GSP JUNE MAY JULY FEB AUG OCT MAY OCT DEC JAN FEB MAY AUG MARCH SEPT 2016 2017 2018 2019 2020 2021 German Financing Updated NI Tugaske Joint Design due diligence Société 43-101 Initial NI 43- Updated Plant Site Project Area Venture Supply underway Générale Report 101 Re
Slide 31: Partnering with Saskatchewan potash experts
Partnering with Saskatchewan potash experts TSXV: GSP AIM:GSP Engineering & Design: Engcomp Engineering & Construction: South East Construction (SECON) Computing Professionals Inc. (Engcomp) • South East Construction is part of the SECON Group, which is a multi- discipline construction organization
Slide 32: Technical experts
Technical experts TSXV: GSP AIM:GSP Ensuring project success through specialized knowledge & solutions Brent Cherkas, P.Eng, – Project Advisor Max Ramey, P.Eng. – Solution Mining Brent excelled in a number of roles ranging from design engineering through to operations, Solution mining lead for the P
Slide 33: Board of directors
Board of directors TSXV: GSP AIM:GSP We strive to be a leader in corporate governance and ethical business conduct by maintaining best practices, transparency and accountability to our stakeholders, shareholders and partners. Our Board of Directors believes that good corporate governance practices a
Slide 34: Potash with purpose starts with Gensource
Potash with purpose starts with Gensource TSXV: GSP AIM:GSP OUR VISION OUR MISSION OUR VALUES Achieve food security by supplying Create a series of independent, The core priorities for Gensource are the world with a key macronutrient scalable, and environmentally integrity, openness and at an afford
Slide 35: Helping support the UN's sustainable development goals
Helping support the UN’s sustainable development goals TSXV: GSP AIM:GSP Our potash is used in Our innovative, modular Vertically integrated We’re reducing our We partner with like- fertilizer to help farmers facilities are sustainable business operations are carbon footprint and minded people who p
Slide 36: Unprecedented environmental approval
Unprecedented environmental approval TSXV: GSP AIM:GSP ‘NOT A DEVELOPMENT’ FIRST OF ITS KIND NEWS LINKS • The Saskatchewan Ministry of • Tugaske will be the first of its kind Article: The Little Potash Mine That Environment designated the – a potash production facility Could Clear A Key Environmenta
Slide 37: Conventional potash mining vs. the Gensource way
Conventional potash mining vs. the Gensource way TSXV: GSP AIM:GSP Conventional Underground Mining Solution Mining Selective Extraction Method • Involves sinking shafts, and using • Involves pumping a fluid into the • Involves injecting a hot NcCl brine people, equipment, and materials underground o
Slide 38: Click to edit Master title style The Saskatchewan Ministry of Environment ruled that Gensource
Click to edit Master title style TSXV: GSP AIM:GSP The Saskatchewan Ministry of Environment ruled that Gensource Potash small scale module project development doesn’t need an environmental assessment. – CBC News 2022-01-04 gensourcepotash.ca 39
Slide 39: Click to edit Master title style
Click to edit Master title style TSXV: GSP AIM:GSP The essence of strategy is choosing to perform activities differently than rivals do. - Dr. Michael Porter Monte Kali, 300 metre tall salt tailings pile in Heringen, Germany 2022-01-04 gensourcepotash.ca 40
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