Agrimin Limited · ASX:AMN
Agrimin — Bell Potter Unearthed Natural Resources Conference 2021
27 slides from Agrimin's conference presentation, Feb 11, 2021
Slide 1: Bell Potter Unearthed Natural Resources Conference | February 2021
Bell Potter Unearthed Natural Resources Conference | February 2021 ABN 15 122 162 396 ASX Code: AMN
Slide 2: 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 Limited’s The information in this presentation that relates to Exploration Results for the Mackay Potash Project
Slide 3: Corporate Information
Corporate Information Capital Structure (as at 9 February 2021) Board of Directors ASX Code AMN Mark Savich Chief Executive Officer Share Price $0.48 Richard Seville Non-Executive Chairperson Shares 211.1m Brad Sampson Non-Executive Director Share Rights 11.7m Alec Pismiris Non-Executive Director &
Slide 4: Premium quality sulphate of potash (SOP)
1 Premium quality sulphate of potash (SOP) We aim to produce high-grade, water-soluble SOP essential for crops such as fruits and vegetables 2 Helping to achieve global food security SOP will play a critical role in improving crop yields for farmers of developing countries in Asia Pacific 3 Creating
Slide 5: The Premium Potash Fertiliser
The Premium Potash Fertiliser SOP is essential for high value crops and trades at a substantial price premium to MOP Muriate of Potash (MOP) Sulphate of Potash (SOP) o Standard source of Current Price1 Current Price2 o Chloride-free source of potassium and contains US$220/t US$400-550/t potassium an
Slide 6: Changing Agricultural Landscapes
Changing Agricultural Landscapes Traditional Farmer Evolving Farmer 2009 2018 Investor Presentation | Page 6
Slide 7: Ideally Located Near Key Growth Markets
Ideally Located Near Key Growth Markets SOP will play a critical role in improving crop yields and achieving food security in South and Southeast Asia SOP Application Rates o Average crop yields for SOP crops range from c. 20-40kg/ha in China, Europe and USA – compared to yields Europe 44 kg/ha of o
Slide 8: Tier 1 Project in the World’s Best Mining Jurisdiction
Tier 1 Project in the World’s Best Mining Jurisdiction1 The flagship Mackay Potash Project is set to be the world’s lowest cost SOP producer Project Map o The Mackay Potash Project is the lowest cost, longest life, largest and most scalable Sulphate of Potash (SOP) asset being developed outside of A
Slide 9: Lake Mackay is in a Class of its Own
Lake Mackay is in a Class of its Own The Mackay Potash Project is validated as Australia’s most strategic and valuable SOP asset Ore Reserves for Australian SOP Projects1 o Lake Mackay is the largest SOP-bearing salt lake in Australia covering an area of approximately 3,500km2 20.0Mt Probable Ore Re
Slide 10: Typical Bulk Commodity Project
Typical Bulk Commodity Project Four key project components including the mine, processing plant, logistics chain and export facility Schematic of the Mackay Potash Project o Brine will be extracted from Lake Mackay using trenches and transferred into on-lake solar evaporation ponds o Potash salts th
Slide 11: DFS Sets a New Industry Standard
DFS Sets a New Industry Standard More than $40m invested to date o The industry's most extensive fieldwork programs have included: o 2 years of long-term trench pumping tests at 22 representative sites across Lake Mackay o 1½ year pilot evaporation trial on Lake Mackay with >100t of potash salts har
Slide 12: Premium SOP Product Quality
Premium SOP Product Quality DFS pilot tests produced high-grade, water-soluble SOP product o SOP product samples from the Mackay Potash Project have consistently exceeded industry benchmarks (>52% K2O) o High quality SOP specifications are based on a conventional flowsheet and supported by extensive
Slide 13: Total Ore Reserve and DFS Summary
1. Total Ore Reserve comprises a Proved Ore Reserve of 3.7Mt and a Probable Ore Reserve of 16.3Mt. 2. Refer to the ASX Release on 21 July 2020 for full Definitive Feasibility Study details. All material assumptions underpinning the production target and forecast financial information derived from th
Slide 14: SOP Price Outlook
SOP Price Outlook Price stability bolsters the investment case for the large-scale, long-life Mackay Potash Project Historical SOP Prices for 2010 to 2020 (US$/t)1 o Agrimin’s high-grade, water-soluble SOP product can compete 800 strongly against existing SOP products in the market 700 600 o DFS pri
Slide 15: Targeting the World’s Lowest Cost SOP Production
Targeting the World’s Lowest Cost SOP Production Primary brine producers have a clear cost advantage Global SOP Cash Cost Curve (US$/t FOB)1 o Agrimin to be the world’s lowest cost supplier of seaborne 450 SOP once in production 400 350 o Large portion of global SOP production relies on the high 300
Slide 16: Exceptional Cash Flow Margin
Exceptional Cash Flow Margin A long-life project that can be profitable though the commodity cycle Cash Flow Margin Per Unit of SOP Production (US$/t) o Lowest quartile cash costs are driven by: 600 o Economies of scale o Low-cost brine extraction via trenches and gravity flow 500 o Innovative wet h
Slide 17: Industry-Leading Innovation
Industry-Leading Innovation Agrimin’s SOP will have one of the lowest carbon footprints of any major macro-nutrient fertiliser product o Raw potash salts will be fed directly to the processing plant from wet harvesters via pipelines o Wet harvesters will deliver major economic benefits, including: o
Slide 18: Highly Competitive Logistics
Highly Competitive Logistics Fully integrated logistics chain to minimise costs o Agrimin’s dedicated logistics solution can deliver the industry’s lowest transportation cost o Road trains will deliver SOP directly from the processing plant to an integrated storage and shiploading facility at Wyndha
Slide 19: Dedicated Haulage Solution
Dedicated Haulage Solution Alliance with a proven bulk logistics operator provides critical haulage capability o Newhaul Bulk is a JV between Agrimin and trucking specialist Craig Mitchell to deliver haulage services for the Mackay Potash Project1 o JV will deliver major cost savings and reduce risk
Slide 20: Fully Integrated Port Facility
Fully Integrated Port Facility Wyndham port facility completes Agrimin’s low-cost, mine-to-ship logistics solution o Mackay Potash Project comprises strategic and scalable export infrastructure to be developed at Wyndham Port o Agrimin’s waterfront freehold property will host a dedicated SOP storage
Slide 21: A Globally Significant Potash Asset
A Globally Significant Potash Asset Mackay Potash Project is the largest SOP development project outside of Africa Country Forecast Annual SOP Production Rates for Projects at Feasibility Stage1 Company Dallol 600ktpa Colluli 472ktpa2 Lake Mackay 450ktpa3 Lake Disappointment 407ktpa Lake Sevier 338k
Slide 22: Indicative Development Timeline
Indicative Development Timeline Pathway to production is well-advanced with a current focus on off-take, project funding and approvals 2021 2022 2023 2024 Off-take & Funding FEED Commence Commence Construction SOP Production Regulatory Approvals On-lake Early Works & Construction Brine Pumping & Pon
Slide 23: Set to be the world’s lowest cost SOP producer with a 40 year life
Set to be the world’s lowest cost SOP producer with a 40 year life Exceptional economics and high cash flow margin to underpin the delivery of project funding 20 World-class SOP Ore Reserve located in the MILLION TONNES world’s best mining jurisdiction Premium SOP product quality to drive strong cus
Slide 24: Office Contact, Investor Relations, Media Contact
ABN 15 122 162 396 Office Contact: Investor Relations: Media Contact: 2C Loch Street Mark Savich Michael Vaughan Nedlands, WA 6009, Australia Chief Executive Officer Fivemark Partners T: +61 8 9389 5363 T: +61 8 9389 5363 T: +61 422 602 720 E: admin@agrimin.com.au E: msavich@agrimin.com.au E: michae
Slide 25: 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 26: 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 Mining Agreement” development plan. Danakali Ltd (ASX: DNK)
Slide 27: 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
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