Agrimin Limited · ASX:AMN
Agrimin — Shareholder Meeting (November 2021)
29 slides from Agrimin's shareholder meeting presentation, Nov 23, 2021
Slide 1: Annual General Meeting Shareholders Address
Agrimin Limited | ABN 15 122 162 396 ASX Code: AMN 2C Loch Street Nedlands, Western Australia 6009 ASX Release T: +61 8 9389 5363 23 November 2021 E: admin@agrimin.com.au | W: www.agrimin.com.au ANNUAL GENERAL MEETING SHAREHOLDERS ADDRESS Chairperson of the Board, Mr Richard Seville: Good afternoon
Slide 2: Shareholders Address (continued) and About Agrimin
While the emergence of a new SOP industry in WA continued, this year witnessed various challenges for the broader sector. The level and quality of feasibility work completed by Agrimin, including both fieldwork and engineering studies, continues to set us apart. During this current phase of the Proj
Slide 3: Developing a Tier 1 SOP asset to sustain global food production
AGRIMIN LIMITED Developing a Tier 1 SOP asset to sustain global food production Annual General Meeting | November 2021 ASX: AMN
Slide 4: Important notices and disclaimers
Important notices and disclaimers Nature of Document Competent Person Statements This presentation has been prepared as a summary only, and does not contain all information about Agrimin The information in this presentation that relates to Exploration Results for the Mackay Potash Project is based o
Slide 5: Agrimin provides unrivaled exposure to potash
Agrimin provides unrivaled exposure to potash Developing the world’s leading Sulphate of Potash (SOP) asset Committed to maximising shareholder value Focused on disciplined development and retaining leverage to record potash prices 100% ownership of a Tier 1 asset in WA Mackay Potash Project to be t
Slide 6: Corporate snapshot
Corporate snapshot Board of directors Capital structure (23 November 2021) Brad Sampson Richard Seville Mark Savich Alec Pismiris Non-Executive Director Non-Executive Chair CEO & Executive Director Non-Executive Director & Co. Sec. Market cap. Share price (ASX: AMN) Appointed: 2016 Appointed: 2019 A
Slide 7: Sulphate of Potash
Sulphate of Potash Critical plant nutrients to sustain global food production 5
Slide 8: Global SOP prices hit record highs
Global SOP prices hit record highs SOP prices expected to increase further • Rising SOP use is required to support higher crop 5 Year SOP Price History2 yields and global food security 1000 • Surging crop prices and improved farmer profitability 900 are driving potash prices to record highs 800 • Ma
Slide 9: Potash themes highlighted by BHP
Potash themes highlighted by BHP1 Potash sits at the intersection of global demographic, social and environmental megatrends 1. Source: BHP Potash Outlook Briefing. 7
Slide 10: Tier 1 offtake partners being secured
Tier 1 offtake partners being secured Agrimin’s environmental and organic credentials underpin strong offtake demand • 150ktpa, 10-year binding offtake SOP Demand by Region (% of ~7Mt Global Market)2 agreement signed with Sinofert, China’s main potash importer1 • Offtake negotiations are advanced wi
Slide 11: Definitive Feasibility Study
Definitive Feasibility Study Mackay Potash Project 100% owned 9
Slide 12: Project highlights
Project highlights A world-class Project ownership potash project 100% portfolio Largest SOP development outside of Africa in WA 450ktpa Lowest global forecast total cash cost US$159/t FOB Outstanding DFS results1 $1bn NPV & 21% IRR (post-tax) Binding offtake for 33% of production Set to be shovel r
Slide 13: Detailed and differentiated feasibility work
Detailed and differentiated feasibility work $50m invested to date • The industry's most extensive DFS program completed in July 2020 and included: – 2 years of long-term trench pumping at 22 representative sites across Lake Mackay – 1½ year pilot evaporation trial on Lake Mackay with >100t of potas
Slide 14: July 2020 DFS highlights
July 2020 DFS highlights1 Agrimin set to have the world’s lowest SOP production cost • Lowest quartile cash costs are driven by: Parameter Value 1. Economies of scale Production rate 450ktpa 2. Brine extraction and gravity flow via trenches Total cash cost US$159/t FOB 3. Consistent wind and solar e
Slide 15: Lake Mackay is a Tier 1 potash deposit
Lake Mackay is a Tier 1 potash deposit Globally strategic and valuable asset • 20Mt contained SOP1 = Australia’s largest SOP Ore Reserves for Australian SOP Projects2 Ore Reserve and the world’s largest undeveloped 25 potash-bearing salt lake • 2,815mg/L potassium = high-grade Ore Reserve, 20 20.0 b
Slide 16: Large SOP deposits are very rare
Large SOP deposits are very rare A unique potash opportunity Country Forecast Annual SOP Production Rates of Projects Being Developed1 Company Dallol 600ktpa Colluli 472ktpa2 Lake Mackay 450ktpa3 Lake Disappointment 407ktpa Lake Sevier 338ktpa Lake Way 245ktpa Lake Wells 150ktpa Beyondie Lake 120ktp
Slide 17: Industry-leading renewables penetration
Industry-leading renewables penetration Supporting the global transition to net zero emissions • Site power station has a modelled 84% Scope 1 and 2 Emissions renewable energy penetration rate Site power station1 • Exceptional wind resource with low seasonal variability defined by long-term on-site
Slide 18: Efficient and low-cost salt harvesting
Efficient and low-cost salt harvesting Conventional technology to drive industry-low operating costs • Raw potash salts to be fed directly to the processing plant via wet harvesters • Wet harvesters will deliver major cost benefits, including: – Powered by reticulated renewable energy – Automation a
Slide 19: Lowest cost logistics
Lowest cost logistics Fit-for-purpose and scalable logistics infrastructure • Agrimin’s integrated haulage and shiploading solution can deliver the industry’s lowest SOP transportation cost • Road trains will deliver SOP directly from Lake Mackay to a dedicated storage and shiploading facility at Wy
Slide 20: Innovative haulage solution
Innovative haulage solution Alliance with proven bulk logistics operator • Mine-to-port haulage to be provided by Newhaul Bulk, a JV between Agrimin and WA trucking specialist1 • Haulage JV will deliver major cost savings and reduce risk over the Project’s 40-year life • Newhaul Bulk is committed to
Slide 21: Fully integrated port solution
Fully integrated port solution Mine-to-ship logistics chain to minimise handling • Port infrastructure to be built on freehold land strategically located at Wyndham Port • SOP will be transported by a fleet of purpose-built road trains to a dedicated storage facility • SOP will be loaded onto ships
Slide 22: Next steps
Next steps Focused on creating a shovel ready Tier 1 potash asset 1 2 3 4 DFS & ITR Binding offtakes FEED Major approvals FID complete Q4 2021 Q3 2022 Q3 2022 Q3 2022 2022 Offtakes Approvals FID SOP Production FEED & approvals Project financing & strategic partner process Construction (2 ½ years) 9
Slide 23: Offtake and price realisation
Offtake and price realisation Sinofert offtake covers one third of Agrimin’s planned production • 150ktpa binding offtake agreement signed with Sinofert, China’s main importer of potash • Current Chinese standard SOP price (52% K2O) is >Yn4,000/t CFR (approx. US$620/t) • Negotiations for additional
Slide 24: Working closely with Traditional Owners
Working closely with Traditional Owners A project of both local and national significance • Native Title Agreement with the Kiwirrkurra People, the native title holders of the land at the Mackay Potash Project1 • Extremely strong long-term support from Traditional Owners for the Project’s developmen
Slide 25: Strong Indigenous engagement
Strong Indigenous engagement Creating value for all stakeholders • Agrimin is committed to creating local jobs and delivering sustainable economic opportunities for Traditional Owners • The Project will create approximately 200 full-time jobs and an additional 800 jobs through the regional supply ch
Slide 26: Contact
Contact Office contact: 2C Loch Street Nedlands WA 6009, Australia T: +61 8 9389 5363 E: admin@agrimin.com.au ABN 15 122 162 396 Investor relations: Mark Savich Chief Executive Officer T: +61 8 9389 5363 E: msavich@agrimin.com.au Media contact: Michael Vaughan Fivemark Partners M: +61 422 602 720 E:
Slide 27: Appendix 1. Mineral Resource & Ore Reserve
Appendix 1. Mineral Resource & Ore Reserve Drainable Porosity Mineral Resource Estimate1 (JORC Code 2012) Measured & Indicated Resource Aquifer Inferred Total Mineral Resource Measured Indicated Total Zone Volume (Mm3) K (mg/L) SOP (Mt) K (mg/L) SOP (Mt) K (mg/L) SOP (Mt) K (mg/L) SOP (Mt) K (mg/L)
Slide 28: Appendix 2. Information sources – production rates
Appendix 2. Information sources – production rates Company Source Source Date Comments Yara International ASA (OSL: YAR) Corporate release titled “Yara to Sign Ethiopian 7 November 2017 Production rate of 600ktpa of SOP is based on proposed development Mining Agreement” plan. Danakali Ltd (ASX: DNK)
Slide 29: Appendix 3. Information sources – Ore Reserves
Appendix 3. Information sources – Ore Reserves Project / Company Source Source Date Comments Lake Mackay ASX announcement titled “Agrimin to be the 21 July 2020 Total Ore Reserve of 20.0Mt of SOP comprises 3.7Mt in the Proved Agrimin Limited (ASX: AMN) World’s Lowest Cost SOP Producer” (page 6) cate