Agrimin Limited · ASX:AMN
Agrimin — Investor Presentation (May 2020)
33 slides from Agrimin's investor presentation, May 15, 2020
Slide 1: Investor Presentation – May 2020
Agrimin Limited | ABN 15 122 162 396 ASX Code: AMN 2C Loch Street Nedlands, Western Australia 6009 ASX Release T: +61 8 9389 5363 15 May 2020 E: admin@agrimin.com.au | W: www.agrimin.com.au INVESTOR PRESENTATION – MAY 2020 Agrimin Limited (ASX: AMN) (“Agrimin” or “the Company”) has made a minor upda
Slide 2: Investor Presentation | May 2020
Investor Presentation | May 2020 ABN 15 122 162 396 ASX Code: AMN
Slide 3: Important Notices and Disclaimers
Important Notices and Disclaimers Nature of Document Pre-Feasibility Study Parameters – Cautionary Statement This presentation has been prepared as a summary only, and does not contain all information about Agrimin The Pre-Feasibility Study results, production target and forecast financial informati
Slide 4: Premium quality sulphate of potash
1 Premium quality sulphate of potash Our projects will produce high-grade, water-soluble SOP that is 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
Slide 5: Company Overview
Company Overview Agrimin owns a Tier 1 portfolio of potash projects situated in the world’s most attractive mining jurisdiction1 Project Map o Project portfolio supports a strategy to become the world’s leading seaborne supplier of sulphate of potash (SOP) fertiliser o Premium SOP product quality an
Slide 6: Social, Environmental & Economic Aspirations
Social, Environmental & Economic Aspirations Agrimin is committed to operating in alignment with the United Nations Sustainable Development Goals Safety The safety and wellbeing of our people and the communities in which we operate is our paramount focus. Environment We are committed to caring for t
Slide 7: Sulphate of Potash (SOP)
Sulphate of Potash (SOP) Specialty fertiliser for high value crops Investor Presentation | Page 6
Slide 8: 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$400-550/t potassium an
Slide 9: Leveraged to Global Megatrends
Leveraged to Global Megatrends Growing Global Population How to Feed the World’s Population 9.7bn 6.9bn Population growth 3.bn 77 200 Rising middle class 1960 2010 2050 Shrinking Arable Land Per Capita Reduction in arable land 4.3ha/capita 14 per capita 9 2.1ha/capita 1.8ha/capita 100 Environmental
Slide 10: Next Door to Key Growth Markets
Next Door to Key Growth Markets SOP will play a critical role in improving crop yields and achieving food security in South and Southeast Asia o Agrimin’s planned large-scale seaborne supply of SOP is “India, Indonesia, Malaysia and Brazil ideally located to take advantage of key SOP growth markets
Slide 11: Attractive Industry Cost Structure
Attractive Industry Cost Structure Primary brine producers have a clear cost advantage over secondary producers Global SOP Cash Cost Curve (US$/t FOB)2 o Agrimin’s estimated cash cost1 is forecast to make it the 450 lowest cost supplier of seaborne SOP globally 400 350 o Large portion of SOP product
Slide 12: Bullish Price Outlook
Bullish Price Outlook SOP demand is inelastic due to fertiliser costs having a lower impact on the profitability of high value crops SOP Prices for Past Decade (US$/t CFR)1 o Agrimin’s high-grade, water-soluble SOP product is expected to 800 compete strongly against existing SOP products in the mark
Slide 13: Mackay Potash Project
Mackay Potash Project 100%-owned by Agrimin Investor Presentation | Page 12
Slide 14: Mackay Potash Project Overview
Mackay Potash Project Overview Australia’s largest SOP development underway Mackay Potash Project Map o World-class SOP project with premium product quality, first quartile cash cost, globally significant scale and ESG friendly o Located in Western Australia, 940km south of Wyndham Port (by road) o
Slide 15: Australia's Largest SOP Deposit
Australia’s Largest SOP Deposit Plan View and Cross Section of Lake Mackay Very large, shallow, high-grade SOP brine deposit o Mineral Resource of 123Mt of SOP on drainable porosity1, based on >1Bt of SOP on total porosity o DFS mine plan and Ore Reserve to be determined utilising only shallow trenc
Slide 16: A Globally Significant Potash Asset
A Globally Significant Potash Asset The Mackay Potash Project is the largest SOP development project in the western world Country Forecast Annual SOP Production Rates for Projects at Feasibility Stage1 3,212ktpa Company Woodsmith* Dallol 600ktpa Colluli^ 472ktpa Lake Mackay 426ktpa Lake Disappointme
Slide 17: Highly Attractive Economics
Highly Attractive Economics Pre-Feasibility Study1 delivered high margins, low capital intensity and long life 2018 Pre-Feasibility Study Metrics o First quartile cash cost of US$222/t FOB, providing Parameter Value substantial cash margins and sustainable returns Initial Operating Life 20 years thr
Slide 18: Eco-Friendly Production Process
Eco-Friendly Production Process Processing plant designed and costed by Primero Group, an experienced WA resources contractor Simplified SOP Process Flow Diagram o Brine will be extracted using only trenches and transferred to solar evaporation ponds where potash salts will crystallise using the sun
Slide 19: Premium Product Quality
Premium Product Quality Agrimin will produce a 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 pilot
Slide 20: Fully Integrated Haulage Solution
Fully Integrated Haulage Solution Alliance with proven bulk logistics operator provides critical haulage capability into Agrimin’s logistics chain o Newhaul Bulk is a JV established with trucking specialist Craig Mitchell to deliver road haulage services for the Mackay Potash Project1 o JV to delive
Slide 21: Fully Integrated Port Facility
Fully Integrated Port Facility Wyndham port facility completes Agrimin’s low cost and fully integrated logistics chain Wyndham Port Map o The Mackay Potash Project will include the development of strategic and scalable export infrastructure at Wyndham Port o Waterfront freehold property has been sec
Slide 22: DFS to Set a New Industry Standard
DFS to Set a New Industry Standard Commitment to a long-term and methodical de-risking approach to develop a world-class asset o DFS on track for completion by end of June 2020 o Agrimin has completed the industry's most extensive fieldwork to define and de-risk the Mackay Potash Project o Completio
Slide 23: Strong Indigenous Engagement
Strong Indigenous Engagement Historic Native Title Agreement in place o Native Title Agreement signed in 2017 with the Kiwirrkurra People, the native title holders of the land at the Mackay Potash Project1 o Continued project support from Traditional Owners of the Kiwirrkurra lands since 2014 o Agri
Slide 24: Strategic, Social and Economic Benefits
Strategic, Social and Economic Benefits Major Project Status awarded by the Australian Federal Government o The Mackay Potash Project will contribute to employment and infrastructure, as well as generating >$300M in export revenue o The project will employ over 150 direct full-time employees and cre
Slide 25: Lake Auld Potash Project
Lake Auld Potash Project 100%-owned by Agrimin Investor Presentation | Page 24
Slide 26: Lake Auld Potash Project Overview
Lake Auld Potash Project Overview Low cost entry into Australia’s highest grade SOP exploration project Lake Auld Potash Project Map o Located in Western Australia, 620km south-east of Port Hedland (via road), making it the closest potash project to an operating port in Australia o Land Access and M
Slide 27: Exceptionally High-Grade SOP Brine
Exceptionally High-Grade SOP Brine Initial project studies are focused on Agrimin’s recently acquired granted tenement Lake Auld Potash Project Map o Granted tenement covers a prospective lakebed area of 108km2 across the northern half of Lake Auld o Historical brine sampling on Lake Auld returned h
Slide 28: A Significant SOP Project in the Making
A Significant SOP Project in the Making Agrimin has successfully consolidated tenure across the highly prospective Canning Palaeovalley Canning Palaeovalley Map o Agrimin’s tenure includes >250km of strike length from Lake Auld to Percival Lakes, covering the most prospective portion of the Canning
Slide 29: Mackay Potash Project hosts a shallow, high-grade SOP resource
>100 Mackay Potash Project hosts a shallow, high-grade MILLION TONNES SOP resource in the world’s best mining jurisdiction Premium SOP product quality, globally significant scale and first quartile cash cost Located next to important SOP growth markets of South and Southeast Asia ESG friendly with a
Slide 30: 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 31: Appendix 1. Corporate Information
Appendix 1. Corporate Information Capital Structure (as at 12 May 2020) Board of Directors ASX Code AMN Mark Savich Chief Executive Officer Share Price $0.34 Richard Seville Non-Executive Chairperson Shares1 196.4M Brad Sampson Non-Executive Director Share Rights 8.0M Alec Pismiris Non-Executive Dir
Slide 32: Appendix 2. Mineral Resource Statement
Appendix 2. Mineral Resource Statement1 Drainable Porosity Mineral Resource Estimate (JORC Code 2012) Aquifer Measured plus Indicated Resource Inferred Total Resource Volume Measured Indicated Total Zone (Mm3) K (mg/l) SOP (Mt) K (mg/l) SOP (Mt) K (mg/l) SOP (Mt) K (mg/l) SOP (Mt) K (mg/l) SOP (Mt)
Slide 33: Appendix 3. Information Sources
Appendix 3. Information Sources 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) ASX announcement t