Aguia Resources Limited · ASX:AGR
Aguia Resources — Investor Presentation (December 2014)
30 slides from Aguia Resources's investor presentation, Nov 26, 2014
Slide 1: Aguia Resources Limited December 2014
For personal use only DECEMBER 2014 AGUIA Resources Limited ASX Code: AGR
Slide 2: Disclaimer
DISCLAIMER For personal use only This document has been prepared as a summary only, and does not contain all information about the Company’s assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company’s securities.
Slide 3: Disclaimer and Competent Persons Statement
DISCLAIMER For personal use only The Company does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any recipient of this document. Nothing in this material should be construed as either an offer to sell or a solicitation
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS For personal use only Building a Brazilian fertilizer company: Developing world class phosphate and potash assets for an agricultural powerhouse dependent on fertilizer imports Flagship Rio Grande phosphate deposits in southern Brazil exhibit high quality & low cost character
Slide 5: Brazil: Near-Term Investment Thesis for Fertilizer
BRAZIL: NEAR-TERM INVESTMENT THESIS FOR FERTILIZER For personal use only Brazil: An agricultural powerhouse dependent on fertilizer imports Brazil is 4th largest consumer of fertilizer but only has 4% of global production 3rd largest consumer of P2O5 (behind China/India), 2nd largest importer of
Slide 6: Flagship Phosphate Asset in Southern Brazil
RIO GRANDE: FLAGSHIP PHOSPHATE ASSET IN SOUTHERN BRAZIL For personal use only Aguia is first mover in the southern farming region which has strong local demand and currently imports Lucena 100% of its fertilizer Phosphate Project ■ Three new igneous carbonatite-hosted phosphate discoveries in landho
Slide 7: Três Estradas
RIO GRANDE DO SUL PHOSPHATE: TRÊS ESTRADAS For personal use only The Company’s primary focus is the Três Estradas deposit, which has significant low-cost growth potential Total JORC compliant mineral resource estimate for Três Estradas: 9.9Mt @ 5.03% P205 (indicated) and 20.6Mt @ 3.94% P205 (infer
Slide 8: Três Estradas: Potential resource expansion to the South
RIO GRANDE DO SUL PHOSPHATE: TRÊS ESTRADAS For personal use only Potential resource expansion to the South Initial shallow auger drilling from Três Estradas South has returned excellent results with grades up to +20% P2O5. All holes in carbonatite have ended in mineralization. 16.0 m @14.4% P2O5 f
Slide 9: Três Estradas: Low Cost Production, Existing Infrastructure
RIO GRANDE DO SUL PHOSPHATE: TRÊS ESTRADAS For personal use only Low Cost Production, Existing Infrastructure, Local Market Access Tres Estradas currently has defined capacity to support 350,000 tonnes of single superphosphate TRES ESTRADAS NEW DISCOVERY (SPP) annually1 JORC RESOURCE Estimated O
Slide 10: Três Estradas
RIO GRANDE DO SUL PHOSPHATE: TRÊS ESTRADAS For personal use only Railway line Railway and easy access Três Estradas is in rolling open countryside, mostly scrub, with some light grazing Phosphate mineralization at surface 10
Slide 11: No Local Production/Competition
RIO GRANDE DO SUL PHOSPHATE: NO LOCAL PRODUCTION/COMPETITION For personal use only Announced Phosphate Projects under Development in Brazil 2014E 2015E 2016E 2017E 2018E 2019E MBAC Itafos Anglo Catalao Galvani Angico Galvani Santa Vale Salitre (Minas Gerais) (Goias) Dias (Bahia) Quiteria (Ceara) (Mi
Slide 12: Três Estradas: Encouraging preliminary beneficiation results
RIO GRANDE DO SUL PHOSPHATE: TRÊS ESTRADAS For personal use only Encouraging preliminary beneficiation results Results indicate the potential to produce a commercial concentrate using standard methods and reagents available in the market Metallurgical recoveries up to 58.4% and concentrate grade
Slide 13: Três Estradas: High-grade oxide ore at surface
RIO GRANDE DO SUL PHOSPHATE: TRÊS ESTRADAS For personal use only High-grade oxide ore at surface – Potential to increase grade over life of mine High-grade oxide material at surface Aguia is considering mining and stockpiling upfront and blending with fresh rock over LOM Mining method from sur
Slide 14: Joca Tavares
RIO GRANDE DO SUL PHOSPHATE: JOCA TAVARES For personal use only New discovery 40 km from Três Estradas Initial scout auger drilling has returned excellent results in carbonatite from surface with grades up to +13% P2O5. All holes in carbonatite have ended in mineralization. 14.7 m @10.8% P2O5 from
Slide 15: Large Exploration Upside
RIO GRANDE DO SUL PHOSPHATE: LARGE EXPLORATION UPSIDE For personal use only More discoveries – Potential for a world class carbonatite province 15
Slide 16: Significant Logistics Advantage
RIO GRANDE DO SUL PHOSPHATE: SIGNIFICANT LOGISTICS ADVANTAGE For personal use only Southern Brazil: Logistics cost advantage for local producers Most imported rock to Brazil is from North Africa with typical logistics costs of between $50 - $70/t Sustained logistics advantage for local producers o
Slide 17: Leadership: Experienced Operators
LEADERSHIP: EXPERIENCED OPERATORS For personal use only David Gower – Interim Chairman Over 25 years experience in the minerals industry including senior positions with Falconbridge Limited and Noranda Inc. Prakash Hariharan – Managing Director Chemical engineer with experience in Agrochemicals
Slide 18: 2015 Implementation Timeline
RIO GRANDE DO SUL PHOSPHATE: 2015 IMPLEMENTATION TIMELINE For personal use only Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Phase 1 Drilling (Tres Estrada & Joca Tavares) Beneficiation – Column Flotation Test Work Resource Report & PEA Updates Phase 2 Infill Drilling (Tres Estrada) Resource Update & Pre
Slide 19: Future Growth: Atlantic Potash Project
FUTURE GROWTH: ATLANTIC POTASH PROJECT For personal use only Adjacent to Brazil’s only operating potash mine – Taquari-Vassouras Mine (Vale), which produces <10% of Brazil’s consumption, with reserves until 2019. Concurrently, Vale is developing its Carnallita Potash Project for 1.2Mt solution-
Slide 20: Future Growth: Lucena Phosphate Project
FUTURE GROWTH: LUCENA PHOSHPHATE PROJECT For personal use only Lucena Potential for resource increase JORC compliant inferred mineral resource of 55.1Mt @ 6.42% P2O51111 The mineral resource only covers a portion of the project area with room to expand Extensive land position, close to existin
Slide 21: Aguia: Capital Structure
AGUIA: CAPITAL STRUCTURE For personal use only AGUIA CAPITAL STRUCTURE Ticker – ASX AGR Shares Outstanding (24 October 2014) 253.9M Market Cap at A$0.045/share A$11.65M Cash Balance A$2M Unlisted Options (average price A$0.27) 22.5M Performance Shares (expire July 2016) 1.5M Aguia Shareholders AGR s
Slide 22: Opportunity Summary
OPPORTUNITY SUMMARY For personal use only Flagship Rio Grande phosphate deposits in southern Brazil exhibit high quality & low cost characteristics to become top quartile producer Ideal location with proximity to local infrastructure and consumers Significant logistics advantage for local prod
Slide 23: Enquiries
For personal use only ENQUIRIES: PRAKASH HARIHARAN– Managing Director info@aguiaresources.com.au www.aguiaresources.com.au ASX Code: AGR 23
Slide 24: Appendix
For personal use only APPENDIX
Slide 25: Três Estradas Development
RIO GRANDE DO SUL PHOSPHATE: TRÊS ESTRADAS DEVELOPMENT For personal use only Evaluating three development options Três Estradas is located close enough to railway infrastructure that it can transport phosphate rock to port and acid terminal rather than build an acid storage facility on site Option 1
Slide 26: Near-Term Focus in South Brazil
RIO GRANDE DO SUL PHOSPHATE: NEAR-TERM FOCUS IN SOUTH BRAZIL For personal use only Infrastructure and market access SSP Capacity in Brazil, Uruguay Road, rail, power, and port in close proximity and Argentina Total Capacity = 9.0 M t Railway goes from project area throughout Brazil, and to Argen
Slide 27: Brazilian Border Zone: Rio Grande TE and JT Projects
BRAZILIAN BORDER ZONE RIO GRANDE TE AND JT PROJECTS For personal use only The Option: Aguia has an option to acquire the Rio Grande Projects TE and JT 100% for 5 million shares. The Issue: An historical throw-back to defence issues that concerned the former military government (1964 – ’85) is that l
Slide 28: Três Estradas: Preliminary JORC Resource
RIO GRANDE DO SUL PHOSPHATE: TRÊS ESTRADAS For personal use only Preliminary JORC Resource (Indicated and Inferred) 1 SRK Consulting: cut-off grade of 3.0% P2O5) 28
Slide 29: Peer Comparison: Phosphates
PEER COMPARISON: PHOSPHATES For personal use only Market Gross Gross Company Deposit Last 52 wk 52 wk Shares Cap In-Situ In-Situ (By Development Stage) Ticker Crncy Location Type Stage Price High Low O/S (CAD) Tonnes P2O5 % Tonnes P2O5 % Mln Mln M+I M+I Inferred Inferred Construction/Production MBAC
Slide 30: Peer Comparison: Phosphates
PEER COMPARISON: PHOSPHATES For personal use only Engineering Product & Processing Cost Metrics OpEx Mine Phosrock Product Init. Sustaining (ex. Mine Last Strip Life Product Grade Recovery CapEx Capex Trans) Company Deposit Type Type Location Study Stage Ratio Years Mln tpa P2O5% Ratio % US$ mln US$
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