Neurizer Ltd · ASX:NRZ
Neurizer — Investor Presentation (November 2023)
30 slides from Neurizer's investor presentation, Nov 13, 2023
Slide 1: NeuRizer Urea Project: A Nationally Significant Project
1 NeuRizer Urea For personal use only Project A Nationally Significant Project November 2023 ASX:NRZ TOWARDS A CARBON NEUTRAL WORLD 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by, or for share price as a result of general market conditions or presentation or other forward-looking statements we may Mineral Resource Compliance Statement NeuRizer. It contains, and we may make other written otherwise, the effect of simplifying op
Slide 3: NeuRizer Ltd Overview
NeuRizer Ltd Overview Carbon Neutral project from 2022 and embedded ESG credentials ASX listed company developing its NeuRizer Urea Project For personal use only (NRUP), 550km north of Adelaide, South Australia NRZ is a certified Carbon Neutral organisation Developing low-cost, nitrogen-based fertil
Slide 4: DL E&C – Global Partner
DL E&C – Global Partner DL E&C in numbers: For personal use only • Annual sales US$8.4 Bn • Annual profit US$1.0 Bn • Assets US$11.6 Bn • Credit rating AA- • Ongoing projects 600+, in 35 countries • Employees 7,500 Top Global EPC 1. Bechtel 7. GS E&C 2. Hyundai 8. DL E&C 3. Fluor 9. Daewoo 4. Techni
Slide 5: DL E&C – More Than a Contractor
DL E&C – More Than a Contractor For personal use only • Lumpsum, turnkey EPCC contractor – FEED, BFS, EPCC • DL E&C facilitated a letter of support for A$1.5 Bn of funding* (70% of urea capex) • Take or pay offtake agreement for 50% of production signed with DL E&C affiliate- $1.5Bn • DL E&C a strat
Slide 6: Top Tier Partners
Top Tier Partners Engineering, Procurement, Project,Capital and Carbon Markets Construction and Commissioning Advisor Partner For personal use only Ammonia Technology Licensor Strategic Debt Advisor Environmental and Development Urea Technology Licensor Approval Sulphur removal technology Commodity
Slide 7: The Global Urea Market
For personal use only The Global Urea Market 7
Slide 8: What is Urea?
What is Urea? • Growing agricultural crops requires nitrogen, phosphorus and potassium (NPK) in large amounts to support both crop yield and quality – nitrogen fertilisers are key For personal use only • Urea (CH4N2O) is a nitrogen containing fertiliser formed from ammonia and carbon dioxide • 46% n
Slide 9: The Global Outlook for Urea
The Global Outlook for Urea Population – demand assured • The world’s population is expected to increase by 2 billion people in the next 30 years, from 7.7 billion to 9.7 billion. For personal use only • The extra 2 billion people require living space, reducing the land available for farming • The w
Slide 10: The NeuRizer Urea Project
For personal use only The NeuRizer Urea Project 10
Slide 11: Project Highlights
Project Highlights 1 Disruptive 2 Commitment to 3 Quality Project 4 Offtake For personal use only Business Model Sustainability Partners • 1mtpa, lowest quartile Planned to be the world’s • DL E&C - EPCC • Take or pay offtake contract global cost curve only fully integrated, carbon contractor and is
Slide 12: NRUP – Urea Manufacturing Process
NRUP – Urea Manufacturing Process Insitu Gasification Gas Production Ammonia Synthesis Urea Production For personal use only CCS feasibility independently Syngas produced The resulting H2 and N2 The NH3 is fed into a urea verified on-site is fed into a gas are fed into an ammonia plant where NH3 and
Slide 13: NRUP Site Overview
NRUP Site Overview • 1 million tonnes per annum of granular urea For personal use only • Bottom of the global cost curve • Favourable logistics with on-site rail loop and dedicated track to Port Augusta • Vertically integrated with gas, power, water, CO2 on site • Existing on-site Infrastructure lic
Slide 14: Key Milestones met
Key Milestones met For personal use only DL E&C 9% Placement Q4 DL E&C employee appointed to - HoA offtake with DL E&C Board - Downstream Development Approval to commence November - Licensor selection Petroleum Production Licence granted - Gas field development-seismic, drilling Upstream - Stage 1-
Slide 15: Key Milestones to come
Key Milestones to come Almost there! For personal use only Production of 1mtpa carbon neutral urea and distribution Stage 1 Construction Bankable feasibility study to Australian farmers and for commences: presented export Strategic partner locked First gas to produce 5MW power plant Bankable Feasibi
Slide 16: ESG and Carbon Neutrality
For personal use only ESG and Carbon Neutrality 16
Slide 17: NeuRizer Carbon Neutral in 2022
NeuRizer Carbon Neutral in 2022 • This is not ‘greenwashing’ • Carbon neutral programme started in 2018 – we are not new to this, it has been a long-term commitment For personal use only • Intention to make urea through carbon neutral production now becoming a reality • NRZ is a certified carbon neu
Slide 18: NeuRizer Carbon Neutral in 2022
NeuRizer Carbon Neutral in 2022 For personal use only /ACCUs Grey – CO2 Produced Green – CO2 Utilised NRUP Carbon Neutral – by Design 18
Slide 19: NeuRizer Markets
For personal use only NeuRizer Markets 19
Slide 20: NeuRizer's Target Markets
NeuRizer’s Target Markets Export • Worldwide governments are restricting trade in urea to ensure local supplies For personal use only • Global fertiliser and agricultural markets and supply chains now highly exposed to geopolitical conflicts, lessening supply and increasing demand • NRUP will initia
Slide 21: Export Offtake Agreement
Export Offtake Agreement • Binding contract with Daelim Trading • Minimum 500,000 tonnes per annum from 2025 For personal use only • Take or Pay • Index linked pricing • 5-year contract with mutual extensions o Contract value at forecast prices (US$424/t) - A$1.5Bn1 over 5 years o At today's prices
Slide 22: DL E&C Offtake - Impact
DL E&C Offtake - Impact A$m 800 • Offtake sufficient to cover For personal use only all operating costs plus 700 safety margin • No requirement for 600 further offtake agreements 500 • Offtakes remain available 400 for potential strategic partners 300 • Allows potential for accessing higher spot 200
Slide 23: Domestic Sales
Domestic Sales • Australian granular urea sales reached 2.1 mt in 2021 and expected to reach 2.9 mt in 2023. • Addressable market covers 91% of crops in Victoria, New South Wales and South Australia For personal use only • NeuRizer will have a strong location and distribution advantage in its target
Slide 24: Capital requirements and Funding
For personal use only Capital requirements and Funding 24
Slide 25: Feasibility Studies
Feasibility Studies PFS Project Assumptions Syngas produced per year PJ 35 • The BFS is nearing completion with final economics determined For personal use only Debt:Equity ratio % 70:30 Interest Rate % 6.0 • Conservative assumptions retained: historically low pricing of US$280/t Inflation % 2.5 (A$
Slide 26: Financing
Financing Stage 2 Funding • Upon completion of the BFS, financing will be secured prior to FID For personal use only • PWC engaged to advise on debt package(s) • Debt underpinned by long term offtake with Tier 1 company Korean ECA funding1 • Additional debt 50% of gasfield, 70% of power infrastructu
Slide 27: Conclusion
For personal use only Conclusion 27
Slide 28: Risk Mitigation
Risk Mitigation Regulatory • Petroleum commercial production licence and heritage approvals obtained • Impact Assessed Development (“Major Project status”) For personal use only • Technical capability proven - successful operation of the Pre-Commercial Demonstration plant and faultless post Technolo
Slide 29: Conclusion
Conclusion • Nationally significant project – reduce reliance on exports, strengthen sovereign supply chains for critical agricultural input (urea) • NRUP will help Australia become self-sufficient in urea providing local farmers with quality, For personal use only cost competitive fertiliser. • NRZ
Slide 30: Thank you
Thank you For personal use only Phil Staveley Managing Director T +61 408 355 552 30