Minbos Resources Limited · ASX:MNB
Minbos Resources — Investor Presentation (December 2023)
41 slides from Minbos Resources's investor presentation, December 2023
Slide 1: Angola Rising: Our Fertilizer, Their Future
Angola Rising: Our Fertilizer, Their Future Board Update December 2023 ASX:MNB
Slide 2: Disclaimer
Disclaimer Some of the statements appearing in this announcement may be in the nature of forw ard-looking statements. You should be aw are that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific t
Slide 3: Company Overview
Company Overview Capital Structure Board & Management Lindsay Reed A Mining Engineer with 40 years’ experience in exploration, development, operations 791M $A79M $A9M $A70M – Managing Director and finance in Australia and Africa. Shares on Issue Dil. MCap* Cash* Enterprise Value Agribusiness consult
Slide 4: Why Invest? What to Watch?
Why Invest? What to Watch? Exposure to three global megatrends leveraging Angola’s unique global position 1. Food Security through Soil Health - Cabinda Phosphate Project － DFS: NPV $US203M, IRR 39%, $US26M to complete construction, first sales in 2024. － Watch for additional licenses and exploratio
Slide 5: Angola – Lots to Love
Angola – Lots to Love Spectacular – Vast – Gentle ASX:MNB | 5
Slide 6: Angola – Agriculture Miracle Awakening
Angola – Agriculture Miracle Awakening Farming re-emerging as a dominant sector Colonial Period Civil War Oil Boom until 1975 until 2002 until 2015 – Top farming nation – Farms deserted – Lasting peace – Presidential policy support – Agricultural exporter – Infrastructure damaged – Roads, rail, port
Slide 7: Angola – Opportunity
Angola – Opportunity Open for capital, expertise and ideas Linguistically Portuguese language barrier is diminishing. English is increasingly spoken in government meetings and the younger generation are often educated in the west. Politically Investment from the west is increasing rapidly. The World
Slide 8: Angolan – A Strong Economy
Angolan – A Strong Economy Prosperous but some people have been left behind OIL & 1 GAS Oil – Second largest in Africa DIAMONDS Diamonds – Third largest in Africa LNG – Fourth largest in Africa Economy - Third largest in Sub Saharan Africa But a third of the population was left below the poverty lin
Slide 9: Angola – Competitive Currency and Exploding Population Growth
Angola – Competitive Currency and Exploding Population Growth Economic conditions and policy favours local production for local markets Local production can compete with imports Population drives food and fertilizer demand ASX:MNB | 9
Slide 10: Angola's Agricultural Potential
Angola’s Agricultural Potential Vast tracts of unoccupied arable land and no local manufacturing of fertilizer…until now 36M 57M ha 5M ha Population Arable Land Cultivated Land – 1000-1500mm of rain per year Fertilizer Factories – Smallholder farmers are 90% of the land – 50% of food imported – 100%
Slide 11: Cabinda Phosphate Project
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Slide 12: PROSPER
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Slide 13: Cabinda Phosphate Rock
Cabinda Phosphate Rock Cabinda Phosphate Soft Rock Simplicity High Phosphate grade 30.1% P2O51 High Reactivity 8.7 to 9.5% P2O52 Longlife Project 20-year mine life3 13 Easy Mining free digging Easy Beneficiation organic product 1 Proven and Probable Ore Reserve grade – refer to Minbos ASX release da
Slide 14: Rapid Progress since MIC signed in March 2021
Rapid Progress since MIC signed in March 2021 Production next year • Plant - Ordered in July 2021 • Mine - Finalized the resource in Nov. 2021 • Mine - Bulk sample December 2021 • Plant - EPC Contractor March 2022 • Mine - DFS and Ore Reserves October 2022 • Farm - Season 4 field trials Dec 2022 • P
Slide 15: Cabinda Phosphate and Angola
Cabinda Phosphate and Angola Designed for each other CABINDA PHOSPHATE NEEDS ANGOLA Acid Soils High Rainfall ANGOLA NEEDS CABINDA PHOSPHATE Low P High P-Fixing Smallholder Farmers ASX:MNB | 15
Slide 16: Cabinda Phosphate and Angola
Cabinda Phosphate and Angola Angola designed for Cabinda Phosphate CABINDA PHOSPHATE NEEDS ANGOLA Acid Soils <6 pH High Rainfall ANGOLA NEEDS CABINDA PHOSPHATE Low P High P-Fixing Smallholder Farmers Soil acidity is required to dissolve phosphate rock ASX:MNB | 16
Slide 17: Cabinda Phosphate Needs Angola
Cabinda Phosphate Needs Angola Angola designed for Cabinda Phosphate CABINDA PHOSPHATE NEEDS ANGOLA Acid Soils High Rainfall > 800mm ANGOLA NEEDS CABINDA PHOSPHATE Low P High P-Fixing Smallholder Farmers Water is necessary to dissolve phosphate rock, the more rainfall the better. ASX:MNB | 17
Slide 18: Cabinda Phosphate and Angola
Cabinda Phosphate and Angola Cabinda Phosphate designed for Angola CABINDA PHOSPHATE NEEDS ANGOLA Acid Soils High Rainfall ANGOLA NEEDS CABINDA PHOSPHATE Low P <10ppm High P-Fixing Smallholder Farmers 40ppm P is adequate for most most crops, <10ppm is not ASX:MNB | 18
Slide 19: Cabinda Phosphate and Angola
Cabinda Phosphate and Angola Cabinda Phosphate designed for Angola CABINDA PHOSPHATE NEEDS ANGOLA Acid Soils High Rainfall ANGOLA NEEDS CABINDA PHOSPHATE Low P High P-Fixing PR performs well vs WSP when soils are high P-fixing Smallholder Farmers because the soils lock-up the P before plants can upt
Slide 20: Cabinda Phosphate and Angola
Cabinda Phosphate and Angola Cabinda Phosphate designed for Angola CABINDA PHOSPHATE NEEDS ANGOLA Acid Soils High Rainfall ANGOLA NEEDS CABINDA PHOSPHATE Low P High P-Fixing Smallholder Farmers PR works best in low pH soils. Smallholder farmers cannot access or afford lime to increase soil pH. ASX:M
Slide 21: Cabinda Phosphate Agronomic Trials
Cabinda Phosphate Agronomic Trials More trials than any other organisation in history of Angola Angolan Institute of Agronomic Investigation (IIA) has conducted field trials in six provinces since 2019. CABINDA PHOSPHATE ROCK performs almost as well as NPK across all trials in the first year. Better
Slide 22: Cabinda Phosphate Agronomic Trials
Cabinda Phosphate Agronomic Trials Greenhouse trials with world renown IFDC Greenhouse trials since 2017 at the International Fertilizer Development Centre (IFDC) in the USA. CABINDA PHOSPHATE ROCK a single application in Year 1 performs well, and even better in Years 2 and 3. 120 80 40 - Primeiro 1
Slide 23: Biocom Sugar Plantation
Minbos Field Trial Biocom Sugar Plantation Angola’s largest farm PREDICTED RAE = 93%
Slide 24: Carrinho Offtake is Critical
Carrinho Offtake1 is Critical Food Security Crop Surplus Carrinho opens the market Carrinho closes the market supplying credit for inputs buying surplus crop for cash including fertilizer Rain Transport Chemicals Surplus Buyer Fertilizer Credit Provider Seeds Land Farmers Recommendation Soil knowled
Slide 25: Physicals - Cabinda Phosphate Project
Physicals - Cabinda Phosphate Project High-grade Phosphate rock fertilizer mined and processed in Cabinda — Cácata Ore Reserves1 (JORC 2012): — Proven: 1.17 Mt at 30.5% P2O5 — Probable: 3.54 Mt at 30.0% P2O5 — JORC Compliant Mineral Resource2 (JORC 2012): — Measured: 2.2Mt at 29.9% P2O5 — Indicated
Slide 26: Financials - Cabinda Phosphate Project
Financials - Cabinda Phosphate Project Compelling DFS1 with only US$26 million to spend to get into Production Definitive Feasibility Study PHYSICALS UNIT RESULT Mine Life (Base-case) Years 20 Plant Capacity (One Plant Capacity) ktpa 150 Average head grade P205 30.1% Base-case fertilizer production
Slide 27: Financials - Cabinda Phosphate Project
Financials - Cabinda Phosphate Project Compelling DFS with only US$26 million to spend to get into Production Key updates since DFS1 1) Stage 1 CAPEX savings2 • Simplified flowsheet has identified capital savings of ~ $US10 million over the DFS2 • Fertilizer Plant has been fabricated and is currentl
Slide 28: Debt Funding Update
DEBT FUNDING UPDATE Indicative Term Sheet for US$14 million loan facility from the Industrial Development Corporation (IDC) Material terms of the debt proposal • Interest rate is the Secured Overnight Financing Rate + 6.77% payable quarterly in arears • The term is the period commencing on the first
Slide 29: Capanda Green Ammonia Project
Capanda Green Ammonia Project
Slide 30: The Ammonia Basics
The Ammonia Basics The Existing Ammonia Economy Haber-Bosch process combines hydrogen and nitrogen from fossil fuels or renewables to form ammonia Global ammonia plants: 72% use natural gas and 22% use coal Ammonia second largest commodity chemical by volume 180 million metric tons (t) of ammonia is
Slide 31: The Green Ammonia Basics
The Green Ammonia Basics The Green Ammonia Economy Uses Renewable Electricity not Fossil Fuels. – Renewable Electricity is used to produce Hydrogen from water and Nitrogen from air. – The Hydrogen and Nitrogen are combined to produce ‘Green’ Ammonia. – Green Ammonia is being targeted to replace stat
Slide 32: Angola's Energy Advantage
Angola’s Energy Advantage Large scale hydro the perfect input for Green Ammonia Angola’s hydropower potential among the highest in Africa* — Top 10 Globally for new installed hydro capacity — 2nd highest producer of hydropower in Africa Minbos Secures 200MW Of The Cheapest, Greenest Power Globally M
Slide 33: Africa Inland Premium
Africa Inland Premium Our US$200/t local for local advantage What makes our Project Competitive – Cheap Electricity – High quality water – Markets at the Factory Gate Africa Inland Premium* – Producing Ammonia and its derivative products proximal to inland markets eliminates significant delivery cos
Slide 34: Technical Study
Technical Study One of the most promising green ammonia projects globally Success Parameters Key Study Outcomes – 200MW of available power would power 172MW of average rated equipment capacity and the production of: Availability of electricity ~320 Metric Tonnes Per Day (MTPD) of Green Ammonia to pr
Slide 35: Adding Scale with Strategic Partnerships
Adding Scale with Strategic Partnerships
Slide 36: Ammonium Nitrate for the Mining Sector
Ammonium Nitrate for the Mining Sector Lobito Corridor unlocks the de-carbonised explosives market – November 2022: Trafigura, Mota-Engil and Vecturis signed a 30-year concession for the Lobito railway committing USD450M – October 2023: The USA, EU, AFC, AfDB and the host governments of Zambia, DRC
Slide 37: Yellow Phosphorus (P4) for LiFeP Batteries
Yellow Phosphorus (P4) for LiFeP Batteries Potential to double the scale of the Cabinda Project ALL THE ELEMENTS FOR LOW-COST LOW-CARBON P4 1. Medium Grade Phosphate Rock is preferred 2. Angola has 1.9c/kWhr hydro electricity, to power the furnace 3. Factory Location available in an Economic Free Zo
Slide 38: Export Opportunity - Porto do Caio Deepwater Development 2025
Export Opportunity - Porto do Caio Deepwater Development 2025 Enquiries for 200,000tpa for regional export as an alternative to Yellow Phosphorus Key Considerations Mineral Resource Statement Cácata Phosphate Project as of 31 October 2021 – 8.4Mt total Mineral Resource (Measured + Indicated + Resour
Slide 39: Angola has Land, Water, Renewable Energy, and Youth
Angola has Land, Water, Renewable Energy, and Youth GROWING AN AFRICAN NUTRIENT BUSINESS WITH SUSTAINABLE BY-PRODUCT BUSINESSES.
Slide 40: Risk Factors
Risk Factors Risks with Operating in Angola equipment, mechanical failure or plant breakdown, unanticipated metallurgical problems which may affect extraction costs, adv erse weather conditions, industrial and environmental accidents, industrial disputes and unexpected shortages or increases in the
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Minbos Resources — Investor Presentation (December 2023) on 6ix