Kore Potash Plc · LSE:KP2
Kore Potash — Investor Presentation (May 2019)
31 slides from Kore Potash's investor presentation, May 2019
Slide 1: Sintoukola Potash District
Sintoukola Potash District May 2019 PRIVATE & CONFIDENTIAL
Slide 2: Cautionary Statements
Cautionary Statements This presentation (the “Presentation”) has been prepared and issued by the directors of Kore Potash plc (“Kore” or the "Company" and, together with its subsidiaries, the “Group”). By attending (whether in person or by telephone) or reading the Presentation, you agree to be boun
Slide 3: Company overview
Company overview Kore is developing its globally significant potash deposits in the Republic of Congo (RoC) Ideally located to supply the important Brazilian agricultural market and high growth African markets District scale development potential with over 6 Bt of potash Mineral Resources1 located 3
Slide 4: Sintoukola Potash District
Sintoukola Potash District 4
Slide 5: Sintoukola is well situated for key export markets
Sintoukola is well situated for key export markets Product is planned to be sold into Brazil and African markets Consumption1 Product Region (ktpa MoP) Specification South Africa 100 Granular K60 MoP Nigeria (Estimated) 400 Granular K60 MoP Other West Africa 100 Granular K60 MoP Total Brazilian Mark
Slide 6: Kola Sylvinite project
(KORE POTASH Kola Sylvinite project RY FROM THE GROUND UP
Slide 7: Overview
Overview DFS project economics1 Kola Sylvinite is a world class asset with long Average annual free cashflow US$500M life production potential Average cash operating margin 75% • 2.2Mtpa MoP production over 33 year life2 Post-tax attributable IRR 17.2% (ungeared) High quality deposit: Post-tax attri
Slide 8: Project configuration
Project configuration • Targeting production of 2.2 Mtpa1 • Shallow: shaft bottom of 270m • 35km to the coast via an overland conveyor and dedicated jetty for export to Brazil and West Africa • 90km via road to port of Pointe Noire for equipment imports 8 1. Refer Kore’s market announcement dated 29
Slide 9: Next steps
Next steps Development of the Kola Sylvinite Project is the Company’s key focus During the next 12 months Kore will explore options to optimise the capital cost and construction schedule for Kola • Discussions are underway with the French Consortium (FC) in this regard • If Kore cannot map out an ac
Slide 10: Dougou Extension (DX) Sylvinite project
Dougou Extension (DX) Sylvinite project 10
Slide 11: Overview
Overview Potential to accelerate path to production • Estimated 2 year construction period • Infrastructure overlaps with the Kola Sylvinite and Dougou Carnallite projects Well understood, proven extraction method • Dual well, selective dissolution mining • 400ktpa MoP production over 17 year life1
Slide 12: DX Project Scoping Study highlights
DX Project Scoping Study highlights Approximate project physicals2 Units Production of 400ktpa white granular MoP Total MoP production Mt 7,074 for 17 years via solution mining MoP granular product grade (K60) %KCl 95% Average annual MoP production ktpa 400 Estimated initial capital cost of US$327M
Slide 13: Solution mining illustrated
Solution mining illustrated Sump Development Solution Mining in HWSS • Pump fresh water down to dissolve halite • Once sumps connect, buoyant blanket fluid controls cavern formation • Sumps develop in halite, caverns connect • Flow direction is periodically reversed to optimise cavern formation • Na
Slide 14: Solution mining illustrated (continued)
Solution mining illustrated (continued) Solution Mining in TSS Cavern Completion • After extraction of HWS, holes are plugged below TSS • Completed cavern: approximately 6 years as no sump is required. • At end of cavern life caverns are left filled with solution to minimise subsidence 14
Slide 15: Wellfield and Process Plant Location
Wellfield and Process Plant Location Highway RN5, showing typical grassland areas where wellfields will be developed Streamline Target Area 0 1000 2000 Current Highway RN5/6 Plant Perimeter Wellfield Piping Initial Caverns Future Caverns 15
Slide 16: Proven solution mining flowsheet
Proven solution mining flowsheet 16
Slide 17: Solution Mining for DX project
Solution Mining for DX project Key Benefits Key Risks • Geological suitability: DX has high grade sylvinite • More energy intensive: Processing is more energy seams surrounded by NaCl making it highly suitable intensive than conventional processing. The DX for solution mining project benefits from a
Slide 18: DX Project – Environment and Permitting
DX Project – Environment and Permitting DX is situated within existing Dougou mining licence. The Mining Convention covers the Dougou mining licence area Kore has an approved ESIA for Dougou mining licence area but a new process is required to amend the existing ESIA to cover the DX project. • T
Slide 19: Next steps
Next steps The Company intends to progress work at the DX Project to define the technical and commercial feasibility of solution mining of the DX deposit Over the next 9 months, the planned phases of work include: • A 2-dimensional seismic survey campaign primarily designed to improve delineation of
Slide 20: Other deposits
(KORE POTASH Other deposits RY FROM THE GROUND UP
Slide 21: Carnallite Deposits
(KORE POTASH Carnallite Deposits FROM THE GROUND UP 4°0'0"S T 4°15'0"S Lagune Conkouati T 11°30'0"E DX North Sylvinite: iL Exploration Target: 320 - 600 Mt @ 30 and 38% KCI N ~, Sintoukola 2 Exploration Licesise ~~ AY a Dougou Extension (DX) Deposit: Sylvinite Deposit: Mineral Resources 232 Mt @ 38.
Slide 22: Appendix
ORE POTASH Appendix RY FROM THE GROUND UP
Slide 23: DX Sylvinite project – Geology
DX Sylvinite project – Geology 23
Slide 24: DX Sylvinite project – Capital Costs
DX Sylvinite project – Capital Costs Initial Capex Deferred Capex LoM Capex Description (kUSD) (kUSD) (kUSD) Solution mining and wellfield 53,963 10,884 64,847 Process Plant 122,404 18,870 141,274 Offsite infrastructure 35,649 6,196 41,844 Total Direct Costs 212,016 35,950 247,966 Field Construction
Slide 25: DX Sylvinite project – Operating Costs
DX Sylvinite project – Operating Costs Total unit Cost Cost Category (real 2019) (US$/t) Opex Solution mining and wellfield 5.25 Process Plant 53.79 Maintenance 4.04 Offsite 13.57 General and Admin 2.21 Mine Gate Opex 78.85 Land Transport of MoP 3.89 FOB Opex 82.74 Marine Transport of MoP 25.00 Tota
Slide 26: Ore Reserves
Ore Reserves Kola Sylvinite Ore Reserves (gross 100% basis) Ore Reserves KCl grade Mg Insolubles Classification (Mt) (% KCl) (% Mg) (% Insol.) Proved 61.8 32.1 0.11 0.15 Probable 90.6 32.8 0.10 0.15 Total Ore Reserves 152.4 32.5 0.10 0.15 Notes: • The Kola Ore Reserves Estimate is reported in accord
Slide 27: Mineral Resources — Sylvinite
Mineral Resources — Sylvinite Sylvinite deposits (gross 100% basis) Contained KCl Mineral Resource category Million Tonnes Grade KCl % Million tonnes Kola Sylvinite Measured 216 34.9 75 Indicated 292 35.7 104 Sub-total (Measured + Indicated) 508 35.4 180 Inferred 340 34.0 116 TOTAL 848 34.8 295 Doug
Slide 28: Mineral Resources — Carnallite
Mineral Resources — Carnallite Carnallite deposits (gross 100% basis) Contained KCl Mineral Resource category Million Tonnes Grade KCl % Million tonnes Dougou Carnallite Measured 148 20.1 30 Indicated 920 20.7 190 Sub-total (Measured + Indicated) 1,068 20.6 220 Inferred 1,988 20.8 414 TOTAL 3,056 20
Slide 29: Exploration Targets
Exploration Targets The potential quantity and grade of an Exploration Target is conceptual in nature and is an approximation, and is expressed as an expected range of tonnes and grade. There has been insufficient exploration at Kola South and DX North to estimate Mineral Resources and it is uncerta
Slide 30: Board of Directors
Board of Directors David Hathorn Chairman Brad Sampson Chief Executive Officer David was the CEO of the Mondi Group between 2000 and May Brad, a qualified mining engineer, has more than 25 years’ 2017 having joined the group in 1991. Prior to the demerger of resources industry experience across nume
Slide 31: Corporate snapshot
Corporate snapshot Key shareholders KP2 AIM share price / volume1 18 25 Shareholder % interest 16 14 20 Volume (Millions) Share price (p) Princess Aurora Company Pte Ltd (SGRF) 18.98% 12 15 Sociedad Quimica y Minera (SQM) 17.48% 10 8 10 Harlequin Investments Ltd 12.00% 6 4 5 Dingyi Group Investments