Apc Minerals Limited · ASX:APC
Apc Minerals — Australian Potash — RIU Explorers Conference 2019
46 slides from Apc Minerals's conference presentation, Feb 21, 2019
Slide 1: The Lake Wells Sulphate of Potash Project
For personal use only MAKING FARMING BETTER GROWING YOUR WEALTH The Lake Wells Sulphate of Potash Project www.australianpotash.com.au
Slide 2: Important Statement & Disclaimers
Important Statement & Disclaimers For personal use only Scoping study – cautionary statement The Study referred to in this announcement is a preliminary technical and economic investigation of the potential viability of the Lake Wells Potash Project. It is based on low accuracy technical and economi
Slide 3: Why is APC here?
Why is APC here? Newman N 250km For personal use only Western Australia Wiluna Meekatharra 1. ________________ People need to eat LakeMount Wells Magnet Potash Project Geraldton 2. ________________ Potash is essential and non-substitutable Leonora Kalgoorlie Southern 3. Lake ________________ Wells h
Slide 4: How do we feed the world?
How do we feed the world? 2030 For personal use only 8.5 billion 2050 9.77 billion 2019 7.7 billion Increasing population www.australianpotash.com.au
Slide 5: When you have $10 you eat rice
When you have $10 you eat rice For personal use only Changing dietary preferences www.australianpotash.com.au
Slide 6: More people, more food, less arable land
More people, more food, less arable land ... For personal use only Global Arable Land Per Person Decreasing www.australianpotash.com.au
Slide 7: Will we ever farm the Amazon?
Will we ever farm the Amazon? For personal use only Decreasing Arable Land www.australianpotash.com.au
Slide 8: The Big Macro-Nutrients
The Big 3 Macro-Nutrients For personal use only Needed by Every Plant on the Planet www.australianpotash.com.au
Slide 9: Potash provides Potassium
Potash provides Potassium For personal use only SOP is the Premium Form of Potash www.australianpotash.com.au
Slide 10: SOP is the Premium Potash
SOP is the Premium Potash For personal use only 1,100 SOP price US$/tonne 500 MOP Baltic FOB 200 SOP Price Premium 0 Jan Jan 07 18 Historical NW Europe SOP prices midpoint Source ICIS, Integer’s SOP Outlook Report, The Potash Market Service www.australianpotash.com.au
Slide 11: SOP is the Premium Potash
SOP is the For personal use only Premium Potash www.australianpotash.com.au
Slide 12: SOP is the Premium Potash
SOP SOPisisthe the For personal use only Premium Premium Potash Potash www.australianpotash.com.au
Slide 13: SOP is the Premium Potash C$41.4 Billion
SOP is the C$41.4 BILLION For personal use only Premium Potash www.australianpotash.com.au
Slide 14: SOP is the Premium Potash
SOP is the Premium Potash For personal use only www.australianpotash.com.au
Slide 15: Lake Wells Potash Project
Lake Wells Potash Project Newman N 250km For personal use only Western Australia Wiluna Meekatharra 1. ________________ Its about the RESOURCE LakeMount Wells Magnet Potash Project Geraldton 2. ________________ Its about the LOGISTICS Leonora Kalgoorlie Southern 3. Its________________ about the MARK
Slide 16: Lake Wells is a low cost solar salt project
Lake Wells is a low cost solar salt project For personal use only Deep & Shallow Brine Abstraction Bores Shallow Brine Abstraction Trench Minor Aquifer Sand, Clay Low Yield & Calcrete Aquitard Clay & Silt Large Volumes of Brine Storage Sand & Gravel Major Aquifer Deposit in River System Target Brine
Slide 17: Pumping vs Trenching
Pumping vs Trenching For personal use only Efficient Economical Proven www.australianpotash.com.au
Slide 18: WA is a BIG Place
WA is a BIG Place For personal use only www.australianpotash.com.au
Slide 19: 53% K2O Quality product produced
For personal use only 53% K2O Quality product produced www.australianpotash.com.au
Slide 20: Lake Wells SOP Definitive Feasibility Study 2019
Lake Wells SOP For personal use only Definitive Feasibility Study2019 Production 2020/2021 www.australianpotash.com.au
Slide 21: Busy RIU Explorers
Busy RIU Explorers For personal use only GOLD ROAD RESOURCES LTD ALLIANCE RESOURCES LTD HAGSTROM DRILLING COLD ANTIPA MINERALS TD L BAR HOT CHILI LTD IMAGE RESOURCES NL AUSTRALIAN MINES LTD INDEPENDENCE GROUP NL AUSTRALIAN POTASH LTD KIN MINING NL AZURE MINERALS LTD MAGMATIC RESOURCES LTD AUDITORIUM
Slide 22: Booth
For personal use only BOOTH 34 GROWING YOUR WEALTH The Lake Wells Sulphate of Potash Project www.australianpotash.com.au
Slide 23: Appendices
For personal use only APPENDICES GROWING YOUR WEALTH The Lake Wells Sulphate of Potash Project www.australianpotash.com.au
Slide 24: Important Statement & Disclaimers
Important Statement & Disclaimers For personal use only Scoping study – cautionary statement The Study referred to in this announcement is a preliminary technical and economic investigation of the potential viability of the Lake Wells Potash Project. It is based on low accuracy technical and economi
Slide 25: Investment Highlights
Investment Highlights Newman N 250km For personal use only • Sulphate of Potash (SOP or K2SO4) is the premium potassium fertiliser Western Australia Premium fertiliser product • Potash provides potassium, an essential, non-substitutable fertiliser essential for ALL plant growth Wiluna Meekatharra •
Slide 26: Corporate Snapshot
Corporate Snapshot For personal use only Post Rights Issue (if Share Price Performance and Volume Capital Structure FULLY subscribed) 4,000 0.14 Share Price (14 February 2019) A$0.085 0.12 Shares on Issue (ASX: APC) 305m 370m 3,000 Listed Options (ASX: APCOA, 20c, 0.1 38m 67m 10/2019) Volume (‘000)
Slide 27: Board
Board For personal use only Board Management Jim Walker Mr Walker has 45 years’ experience in the resources industry, at both senior management and board level. Prior to retiring from the position in Non-Executive Chairman 2013, Jim was the Managing Director and Chief Executive Officer of WesTrac Pt
Slide 28: Management Team
Management Team For personal use only Stewart McCallion Project Manager (Blackham, Hancock, Lycopodium) Chris Shaw Exploration Manager (AngloGold, Avonlea, Iluka) Jay Hussey Chief Commercial Officer (Valleyfield, Migao) Process Engineering Hydrogeology & Resource Estimation Design Engineering Enviro
Slide 29: Global Trade in Potash
Global Trade in Potash For personal use only $US Sales Price per tonne 700 Main Varieties of Potash Sulphate of Potash: SOP 8 600 SOP commands a SOP, 580 price premium over 500 MOP of up to approx. $US300 per tonne 400 Muriate of Potash: MOP 60 300 MOP, 300 Global annual traded tonnes (approx. mT) 2
Slide 30: Production of SOP
Production of SOP For personal use only Average cost of SOP production Global SOP production by method 550 500 Brine evaporation 20% Mannheim, $450 450 $US per metric tonne Hard rock extraction 400 5% Mannheim 50% Hard rock 350 extraction, $350 300 KCl reaction, $290 Brine evaporation, 250 KCl react
Slide 31: China is the World's Largest SOP Market
China is the World’s Largest SOP Market For personal use only SOP Global Production 2004 - 2015 SOP Global Demand 2015 – 2026 12 12 World with China World without China World with China World without China 10 9.6 9.6 10 9.3 8.9 8.6 8.3 7.8 7.9 8.0 7.5 7.6 7.7 8 8 7.5 Million metric tonnes 6.9 Millio
Slide 32: Superior Mining & Logistics Jurisdiction
Superior Mining & Logistics Jurisdiction Newman N 250km For personal use only Western Australia • Western Australia consistently ranks Top 5 most desirable mining investment jurisdictions in the Wiluna World fraserinstitute.org Meekatharra • North-Eastern Goldfields region serviced by rail, LakeMoun
Slide 33: Milestones to Development
Milestones to Development For personal use only ✓ Secure 100% ownership of Project area ✓ Complete Scoping Study ✓ Finalise MOUs for up to 200,000 tpa off-take ✓ Develop on-site pilot evaporation ponds ✓ Secure grant of Mining Leases Demonstrate field evaporation of Lake Wells SOP, produce ✓ high gr
Slide 34: Late Stage Definitive Feasibility Study
Late Stage Definitive Feasibility Study For personal use only July June March Q4 H1 H2 H1 H2 2014 2016 2017 2018 2019 2019 2020 2020+ Definitive Pond & Discovery Maiden Scoping First SOP Detailed Plant Feasibilit bore field month Resource Study produced FEED running y Study develop APC has spent A$1
Slide 35: Focussed on Marketing Agreements
Focussed on Marketing Agreements For personal use only Global SOP Demand 4,000 • MOUs with 2 of China’s largest agricultural 3,500 companies 3,000 • Sino-Agri • Hubei-Agri ‘000 metric tonnes 2,500 2,000 • Supply disruption through Chinese environmental 1,500 clean-up initiatives: structural change 1
Slide 36: Approvals to Development
Approvals to Development For personal use only • Environmental Scoping Document (ESD) has been approved by the EPA • All other approvals on hold until the EPA finalise their review • Environmental Review Document (ERD) being finalised now • Anticipated completion H1/H2 2019 • Mining Proposal • Mine
Slide 37: JORC Compliant Mineral Resource Estimate
JORC Compliant Mineral Resource Estimate For personal use only Drainable K Volume of Specific SOP Grade SOP Brine Concentration Aquifer Yield (mg/L) Resource Hydrogeological Unit Volume (mg/L) Weighted Weighted MCM Mean MCM MT Mean Value Mean Value Indicated Resources Western High Grade Zone Surfici
Slide 38: Lake Wells Stage Production Process
Lake Wells 3 Stage Production Process For personal use only Abstraction of • Hypersaline brine is pumped from underground aquifers into evaporation ponds • Bore-field development to depths of 175m brine • Water is evaporated off the brine, leaving crystallised salts to Evaporation be harvested of wa
Slide 39: Ideal Abstraction Method to Meet Production Targets
Ideal Abstraction Method to Meet Production Targets Abstraction ofSOP brine is the ‘mining’ part of an For personal use only operation 90 40 Lake Wells will use a bore-field brine Required Flow Rate per Production Bore (l/s) 80 abstraction method 35 Number of Production Bores 70 30 ❖ Stage 1: 60 25
Slide 40: Proven Evaporation Progression
Proven Evaporation Progression For personal use only Evaporation of water is the ‘beneficiation’ part of an SOP operation 0.12 Development of evaporation pond network on the 0.1 lake surface at Lake Wells confirmed through Leakage rate mm per day Hypersaline brine is pumped into the 0.08 geotechnica
Slide 41: Processing Grade and Type
Processing Indicative Prices for SOP For personal use only Grade and Type Lake Wells will process SOP from brine evaporation and $650 KCl reaction $630 52% CAPEX WITHOUT AND WITH KCL REACTION $610 Soluble, 610 52% Brine bore field Evaporation ponds Process plant Non-process infrastructure Indirects
Slide 42: China is the Ideal Target Market
China is the Ideal Target Market For personal use only SOP Demand Lake Wells SOP project development will be 4,000 underpinned by off-take agreements supplying initially into the Chinese market 3,500 Two MOUs in place for up to 100,000tpa with 3,000 ❖ Sino-Agri, China’s largest agricultural company
Slide 43: Ideal Climate Conditions
Ideal Climate Conditions ❖ High mean daily temperatures ❖ High average daily sunshine hours For personal use only ❖ Low annual rainfall Lake Wells SOP project Lake Wells SOP project Lake Wells SOP project www.australianpotash.com.au
Slide 44: History of Progress
History of Progress For personal use only 2015 2016 2017 10km • High-grade Sulphate of Potash deposit identified • Maiden JORC Compliant SOP Resource • Mining Leases recommended for grant with NIL Native Title claims through brine sampling • Initial test-production bores developed • Scoping Study in
Slide 45: SOP Data Information Sources
SOP Data Information Sources For personal use only www.greenmarkets.com Green Markets www.integer-research.com Integer www.argusmedia.com Argus Media www.cru.com CRU International Limited www.fertilizer.org The International Fertilizer Association www.sopib.com Sulphate of Potash Information Board w
Slide 46: Lake Wells Sulphate of Potash Project
For personal use only LAKE WELLS SULPHATE OF POTASH PROJECT The Lake Wells Sulphate of Potash Project www.australianpotash.com.au