Aguia Resources Limited · ASX:AGR
Aguia Resources — Investor Presentation (December 2012)
26 slides from Aguia Resources's investor presentation, Dec 17, 2012
Slide 1: Building a Brazilian Fertiliser Company
BUILDING A BRAZILIAN FERTILISER COMPANY For personal use only December 2012 AGUIA Resources Limited ASXRESOURCES AGUIA Code: AGR LIMITED 1
Slide 2: Disclaimer
DISCLAIMER For personal use only This document has been prepared as a summary only, and does not contain all information about the Company’s assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company’s securities.
Slide 3: Technical Director briefing analysts at Três Estradas
ASX:AGR For personal use only Technical Director, Fernando Tallarico (centre) briefing analysts at the Três Estradas phosphate project in southern Brazil
Slide 4: Overview
OVERVIEW World-class Assets ■ BUILDING A FERTILISER COMPANY For personal use only Phosphate Projects – Near Term Focus ✔ RIO GRANDE, new discovery, flag ship project ✔ Initial 21Mt JORC Inferred resource ✔ Resource upgrade 1st qtr 2013 ✔ Beneficiation concentrate up to 36% P2O5 ✔ Scoping for near t
Slide 5: The Opportunity – Why Brazil?
THE OPPORTUNITY – WHY BRAZIL? IMPORT DEPENDENT, CUSTOMERS For personal use only AN AGRICULTURAL POWERHOUSE ■ 4th largest consumer of fertilizer but only 4% of global fertilizer production ■ World’s fastest growing fertiliser market ■ Third largest global agricultural exporter ■ In 2011, accounted fo
Slide 6: Rio Grande do Sul Projects
RIO GRANDE DO SUL PROJECTS NEW PHOSPHATE PROVINCE For personal use only AGR has been first mover in region Large landholding over 860 square kms TRES ESTRADAS NEW DISCOVERY Potential for new world class phosphate province – LARGE RESOURCE BASE NEW DISCOVERY from first drilling program – Três
Slide 7: Brazil - Phosphate Carbonatite Mines
BRAZIL - PHOSPHATE CARBONATITE MINES For personal use only Company Mine Reserve Grade Concentrate Grade Prod. (Mt) P2O5 (%) P2O5 (%) Capacity (ktpa) (A) (B) (C) (D) Vale Tapira 1,309 7.69 35.5 2,030 Copebrás/ Anglo Ouvidor 257 7.63 38 1,300 Vale Araxá 89 11.12 35/33 910 Vale Catalao 224 8.96 36/34 1
Slide 8: Três Estradas JORC Inferred Resource
TRES ESTRADAS JORC INFERRED RESOURCE For personal use only Initial JORC compliant inferred resource of 21Mt @ 4.6% P2O51 including higher grade oxide zone from surface of 1.8Mt @ 10.9% P2O5 Resource calculated from drilling over 1.2 km to 100 metre depth Stage 2 drilling completed – JORC INFER
Slide 9: Três Estradas Scoping on Near Surface Resource
TRES ESTRADAS SCOPING ON NEAR SURFACE RESOURCE For personal use only High Grade oxide results from surface – scoping for initial early cash flow Excellent mining parameters, easy access, low strip ratio Shallow High Grade Oxide From Surface
Slide 10: Três Estradas Preliminary Beneficiation Results
TRES ESTRADAS PRELIMINARY BENEFICIATION RESULTS For personal use only Initial metallurgical recoveries up to 83.4% and concentrate grades up to 36.0% P2O5 Results indicate the potential to produce a commercial concentrate using standard methods and reagents available in the market Further opti
Slide 11: Excellent Infrastructure Access to Markets
EXCELLENT INFRASTRUCTURE ACCESS TO MARKETS For personal use only • Excellent infrastructure with good road, rail, power, port and services • Railway within the project that goes north and south to Brazil and southwest to Argentina and Uruguay. • Franchise owner is América Latina Logística. RIO GRAND
Slide 12: Cost Advantage for Domestic Producers
COST ADVANTAGE FOR DOMESTIC PRODUCERS For personal use only Imports of Phosphate Rock by Port, 2011 Typical logistics costs to Brazilian port for imports are $40 - $50/t Macapa: 3kt Munguba:35kt 73% of all imports are in the southern ports of Rio São Luis:18kt Grande and Paranagua Sustained lo
Slide 13: Key Phosphate Markets - Rio Grande
KEY PHOSPHATE MARKETS - RIO GRANDE For personal use only The three southern States consume ~1.1 Mt P2O5 or ~ 30% of Brazilian consumption, SSP Capacity in Brazil, Uruguay with no phosphate mines in this region. and Argentina Total Capacity = 9.0 M t MARKETS FOR ROCK CONCENTRATE Paranaguá RIO GRA
Slide 14: Três Estradas Development Options
TRES ESTRADAS DEVELOPMENT OPTIONS For personal use only Phase 1: Near Term - Mine high grade oxide for cash flow to fund on-going development and Capex 2-3 years The Process – Internal Scoping commenced Mine rock, beneficiate by flotation Sell rock concentrate Phase 2: Longer Term – Larg
Slide 15: Rio Grande Conceptual Rock & SSP Production Scenarios
Rio Grande Projects: Conceptual Rock & SSP Production Scenarios. For personal use only Assumptions - For illustrative purposes only – not based on actual project studies, based on 60Mt resource = 18.5 year mine life, 7 Phase 1 Phase 2 Conceptual Conceptual Current Status Rock Concentrate SSP Project
Slide 16: Rio Grande Province Large Exploration Upside
RIO GRANDE PROVINCE LARGE EXPLORATION UPSIDE For personal use only POTENTIAL FOR A WORLD CLASS CARBONATITE PROVINCE MORE DISCOVERIES TRES ESTRADAS PHOSPHATE DISCOVERY OPTION GROUND JOCA TAVARES (IAMGOLD) UNTESTED
Slide 17: Peer Comparison: Phosphate
PEER COMPARISON: PHOSPHATE For personal use only Global Phosphate Market Cap Company Code Location Status Resource Grade P₂O₅ Diluted (A$M)* (mt) (%) MBAC Fertiliser Corp MBC:TSX Brazil $384 Developer 220 7.30 Stonegate Agricom Ltd ST:TSX Peru $99 Developer 520 12.20 Arianne Resources DAN:TSX Canada
Slide 18: The Team & Capital Structure
THE TEAM & CAPITAL STRUCTURE For personal use only Directors Graham Ascough - Non-Executive Chairman Potash & Phosphate Experts – Over 21 years management and exploration experience evaluating Alfredo Nunes - Exploration Manager - Phosphate resource projects globally, including Falconbridge in Brazi
Slide 19: Atlantic Potash Project Highlights
ATLANTIC POTASH PROJECT HIGHLIGHTS For personal use only ATLANTIC POTASH PROJECT Adjacent to Brazil’s only operating potash mine Taquari-Vassouras Mine (Vale) produces <10% of country’s consumption, with reserves in place until 2019. Concurrently Vale is developing its Carnallita Potash Projec
Slide 20: Exceptional Discovery Potential
EXCEPTIONAL DISCOVERY POTENTIAL For personal use only ■ Historical exploration data obtained from Taquari-Vassouras Mine - Vale Brazilian Geological Survey Underground / Room and Pillar 700,000t KCl pa ■ Petroleum exploration and production Associated to Bull’s-eyes Gravity data – more than 300 well
Slide 21: Enquiries
For personal use only ENQUIRIES: SIMON TAYLOR – Managing Director & CEO Telephone: +61 2 9247 3203 staylor@aguiaresources.com.au www.aguiaresources.com.au ASX Code: AGR
Slide 22: Appendix 1: Phosphate Usage and Pricing in Brazil
APPENDIX 1: PHOSPHATE USAGE AND PRICING IN BRAZIL For personal use only Phosphate Demand by State in Brazil, 2011 Phosphate Rock Price, 2006 - 2012 ‘000 t P2O5 (‘000 tonnes P2O5) US$/t > 500 600 fob North Africa cfr Brazil 450 – 499 500 400 - 449 400 300 350 - 399 200 300 - 349 100 250 - 299 0 200 -
Slide 23: Appendix 2: Brazilian Border Zone
APPENDIX 2: BRAZILIAN BORDER ZONE RIO GRANDE TE AND JT PROJECTS For personal use only The Option: Aguia has an option to acquire the Rio Grande Projects TE and JT 100% for 5 million shares. The Issue: An historical throw-back to defence issues that concerned the former military government (1964 – ’8
Slide 24: Appendix 3: Três Estradas JORC Inferred Resource
APPENDIX 3: TRES ESTRADAS JORC INFERRED RESOURCE For personal use only Initial JORC compliant inferred resource of 21Mt @ 4.6% P2O51 including higher grade oxide zone from surface of 1.8Mt @ 10.9% P2O5 1 SRK Consulting: cut-off grade of 3.0% P2O5)
Slide 25: Appendix 4: Project Comparisons: MBAC v Aguia
APPENDIX 4: PROJECT COMPARISONS: MBAC v AGUIA For personal use only MBAC: Itafos1 MBAC: Santana2 Aguia: TE Mining Reserves 44.2M tonnes 44.3M tonnes 21.3 M tonnes (initial) 3 Grade 5.39% P2O5 12.2% P2O5 4.63% P2O5 Mine Life 14.5 years 30 years Concentrate 28% P2O5 34% P2O5 31% - 36% P2O5 Concentrate
Slide 26: Appendix 5: Lucena South Project
APPENDIX 5: LUCENA SOUTH PROJECT DRILLING TARGETS RESOURCE POTENTIAL For personal use only ■CPRM discovered shallow phosphate mineralisation up to 22% P2O5 in several deposits to the west ■Phosphate mineralisation is hosted by a limestone unit (Gramame Formation) that extends through project towards
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