Parkway Corporate Limited · ASX:PWN
Parkway Corporate — Potash West NL — Shareholder Meeting (November 2014)
38 slides from Parkway Corporate's shareholder meeting presentation, Nov 26, 2014
Slide 1: World Class Fertiliser Products from World Class Assets
For personal use only WORLD CLASS FERTILISER PRODUCTS FROM WORLD CLASS ASSETS AGM 26th November 2014
Slide 2: Disclaimer
This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes 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 jurisd
Slide 3: Competent Persons statements
Information in the presentation that relates to the Mineral Resource estimate for Dinner Hill is fully described in the ASX release of 11 October 2012. Information relating to the Dinner Hill Extended Exploration Target was released to the ASX on 07 May 2013. Information relating to the phosphate Mi
Slide 4: Agenda
Agenda For personal use only • Company Snapshot • Fertiliser Overview • South Harz Project, Germany • Dandaragan Trough Project, Western Australia • Phosphate • K-Max • Value Proposition 4
Slide 5: Corporate Snapshot
CORPORATE SNAPSHOT For personal use only ASX CODE PWN SHARE PRICE – 13 Nov 2014 AU$0.05 MARKET CAP. AU$10M SHARES ON ISSUE (1) 196 M 12 MONTH RANGE 4c – 11c TOP 20 SHAREHOLDERS 56% MGMT AND DIRECTORS 13% (1) Plus 36M partly paid and 14M options, fully diluted =246M shares BOARD Adrian Griffin – Chai
Slide 6: Investment Case
INVESTMENT CASE Creating opportunities in the global fertiliser industry: For personal use only Exploring a brown-fields potash project in Germany Long established potash field with established infrastructure Close to existing producers and end-users Significant near-term exploration poten
Slide 7: For personal use only
For personal use only “The challenge is clear. With nearly 1 billion people already suffering from hunger and malnutrition in some of the fastest growing areas of the world, the challenge of doubling food production by 2050 will become more difficult as key resources become increasingly scarce and a
Slide 8: Fertiliser Business
FERTILISER BUSINESS 3 Fertiliser bulk commodities, For personal use only N, Nitrogen, promotes green growth P, Phosphorous, promotes plants yield potential K, Potassium, enables plants to take up nutrients from soil and air 3 Minors, Ca, S and Mg Most soils deficient in NPK Not interch
Slide 9: Fertiliser Business
FERTILISER BUSINESS Forecast value of US$172B in 2015, For personal use only Fertiliser wholesalers mix products for region, from bulk raw materials: Nitrogen (109 Mtpa, N): from air, gas and coal Urea Ammonia Nitrate Phosphates (41Mtpa, P): mined from rock phosphate deposits Superphos
Slide 10: East Exploration
EAST EXPLORATION For personal use only Earning 55% interest in a JV in Germany Counterparty, private interests Close to existing producers Expenditure $350,000, to: Apply for 2 licences, 450km2 Review available geological data Gain 55% of project Working with Ercosplan, world renowne
Slide 11: Potash Mines in Germany
For personal use only POTASH MINES IN GERMANY Germany has a long history of potash mining Extensive deposits, in Zechstein beds laid down in Permian Period 4th largest producer in world Western Europe is a net importer of potash Extensive expertise exists within Germany Established infra
Slide 12: Küllstedt and Gräfentonna Applications
KÜLLSTEDT AND GRÄFENTONNA APPLICATIONS Within South Harz region, For personal use only which has produced 100m tonnes of potash Several mines in production up till 1990s, German reunification. Low potash prices caused closures KÜLLSTEDT 450 sq km of application Extensive drilling Close to
Slide 13: Dandaragan Project Location
DANDARAGAN PROJECT LOCATION For personal use only +2,000 km2 of prospective area ~150km of strike ~+20km width Many intersections +40m Great infrastructure Rail Power Gas Water Close to local markets, WA and SE Asia Similar mining activity already in region Close to export po
Slide 14: Exploration
EXPLORATION Focus on Northern area, 409 For personal use only holes drilled, 159 on Dinner Hill Numerous intersections of high grades close to the surface Dambadjie, +60m of high grade Dinner Hill, first resource, phosphate closer to surface 14
Slide 15: K-Max / Phosphate
For personal use only 15 K-MAX PHOSPHATE
Slide 16: Flow Sheet
For personal use only FLOW SHEET 16
Slide 17: Phosphate Plant Study Parameters
PHOSPHATE PLANT STUDY PARAMETERS Mining Rate 3.8 Mtpa For personal use only One product: 342,000 tpa Single superphosphate Commodity Grade, 18% P2O5 Capex and Opex estimates +/-35% 100,000 tpa consumed locally, balance exported Project works, despite low feed grade, because: Unconsolid
Slide 18: Scoping Study Results - Phosphate
SCOPING STUDY RESULTS - PHOSPHATE For personal use only THROUGHPUT 3.8 mtpa NPV8 AU$M (1) 331 CAPITAL COSTS, AU$M 144 OPEX, AU$/tonne of PRODUCT 241 REVENUE , AU$/tonne of PRODUCT 383 IRR% (1) 29.5 MINE LIFE +20 YEARS EBITDA (1), AU$M pa 48 (1) Ungeared, pre-tax 18
Slide 19: K-Max - Flowsheet
K-MAX - FLOWSHEET GLAUCONITE CONCENTRATE K-MAX PLANT PRIMARY BULLDOZER MINING LEACHING | PUMPING H CRYSTALLISATION LEACH RESIDUE CO-PRODUCT CO-PRODUCT RECOVERY SEPARATION PHOSPHATE PLANT TAILS BACK TO PIT
Slide 20: K-Max Study Parameters
K-MAX STUDY PARAMETERS For personal use only Mining Rate 2.4 Mtpa Suite of products: 85,000 tpa Sulphate of Potash, SOP 195,000 tpa high Magnesium SOP, KMS 220,000 tpa Iron oxide 900,000 tpa Aluminium Sulphate 310,000 tpa phosphate SOP and Phosphate consumed locally Balance exported 20
Slide 21: K-Max Study Results
K-MAX STUDY RESULTS For personal use only THROUGHPUT 2.4 mtpa NPV10 $m 808 Capital Costs, $m 650 Opex, $/tonne of feed 55 ($71/t of product) Revenue, $/tonne of feed 150 Alum 40%, Potash 30%, ($210/tonne of product) Phosphate 25%, Iron 5% IRR % 21 Mine Life +60 years Free Cash Flow, AU$M, pa 228 21
Slide 22: Dinner Hill Development Timelines
Dinner Hill Development Timelines For personal use only 2014 2015 2016 2017 2018 2019 2020 2021 2022 Phosphate Project Feasibility Study Construction Operation K-Max Project Pilot Plant Prefeasibility Study Feasibility Study Construction Operation 22
Slide 23: Timeline Points
Timeline Points Key elements of Phosphate Feas. Study For personal use only Update processing, and financial model, 12 months Resource Update, 6 months Permitting, 18 months K-Max Study Can be brought forward, with funding Pilot plant necessary as this is new technology German Potash
Slide 24: Corporate Structure
Corporate Structure Potash West NL For personal use only 100% 100% 100% PWN Development Dinner Hill Mining K-Max Company Pty Ltd Company Pty Ltd Technology Pty Ltd •Overseas assets of group •Potash, Phosphate and by-products rights in EL 3987, Western Australia • Process IP and know-how •Licence to
Slide 25: Corporate Goals 2015
Corporate Goals 2015 German Potash For personal use only Assess Geological Information Establish next milestones & funding Possibly finance via an IPO Dandaragan Trough Quantify synergy between phosphate and K-Max projects Advance phosphate feasibility study Seek strategic investor f
Slide 26: Market Cap. of Fertiliser Explorers and Developers
MARKET CAP. OF FERTILISER EXPLORERS AND DEVELOPERS For personal use only Market Cap, $M As at 12 Aug 2014 26
Slide 27: Investment Highlights
INVESTMENT HIGHLIGHTS Exposure to the growing fertiliser business For personal use only Regions are major importer German Potash, exploration upside Long production history Extensive database available, quality partners Dandaragan Trough Strategic location Low risk start up with phos
Slide 28: Questions?
QUESTIONS? For personal use only Patrick McManus Unit 3 Managing Director 23 Belgravia Street Mobile +61 (0) 408 956 798 Belmont WA 6104 patrick.mcmanus@potashwest.com.au PO Box 588 Adrian Griffin Belmont WA 6984 Chairman Mobile +61 (0) 418 927 658 Phone +61 (0) 8 9479 5386 adrian.griffin@potashwest
Slide 29: Appendix
For personal use only APPENDIX: 29
Slide 30: Dinner Hill Exploration Target
DINNER HILL EXPLORATION TARGET For personal use only Exploration target of 1 to 1.5Bt of greensand @ 4.0 to 4.8% K2O. Includes 300-600Mt of phosphate mineralisation at a grade of between 1.5% and 3% P2O5. The exploration target has been derived from the exploration already undertaken by the Com
Slide 31: Dinner Hill Phosphate Resource
DINNER HILL PHOSPHATE RESOURCE For personal use only Phosphate resource (JORC indicated), of 120 Mt @ 2.8%P2O5, close to surface Within less than 20% of Dinner Hill target area 31
Slide 32: Phosphate Market
PHOSPHATE MARKET International Phosphate Market Dominated by MENA(1) For personal use only +50% of traded Rock Phosphate +75% of reserves “The world faces a dangerous shortage of phosphate, which could slash global crop yields and send food prices soaring within a generation if nothing is done
Slide 33: Distance advantage to importing regions
For personal use only Distance advantage to importing regions 33
Slide 34: SSP Price History and Forecast Price
SSP PRICE HISTORY AND FORECAST PRICE 400 se ee 300 200 Fob China US$ 100 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 Year potash Source: CRU Private communication WEST“ 34
Slide 35: Rock Phosphate Price - FOB Morocco
ROCK PHOSPHATE PRICE - FOB MOROCCO USS$/tonne 400 350 300 250 200 150 100 50 0 CU Forecast a ee z 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 Year (2000 - 2020) CUES Bs World Bank tash peas
Slide 36: Potash Production and Sales by Region
POTASH PRODUCTION AND SALES BY REGION WORLD POTASH PRODUCTION WORLD POTASH SALES 2011: 54.3 MT 2011: 54.5 MT 2010: 50.2 MT 2010: 52.7 MT potash WEST“ Source: IFA and Potash Corp
Slide 37: Potash Pricing - FOB Vancouver
USS$/tonne POTASH PRICING - FOB VANCOUVER MURIATE OF POTASH (KCL) 1000 800 600 Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May 2007 2008 2009 2010 2011 2012 2013 2014 YEAR
Slide 38: K-Max Flowsheet Details
For personal use only K-Max Flowsheet Details 38