Reward Minerals Ltd · ASX:RWD
Reward Minerals — Non-Deal Roadshow (March 2016)
21 slides from Reward Minerals's roadshow presentation, March 2016
Slide 1: Advancing the LD SOP Project
Advancing the LD SOP Project RBC Roadshow Presentation March 2016 ASX | RWD
Slide 2: Forward Looking Statements & Disclaimer
FORWARD LOOKING STATEMENTS & DISCLAIMER This document includes forward-looking statements. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should”, and similar expressions are forward-looking statements. Although RWD believes that t
Slide 3: Highlights
HIGHLIGHTS The Commodity ► SOP is a premium fertilizer in supply shortage and currently ~US$700+/t ► Global SOP market is 6Mt per annum worth over US$3.5b ► Large surface (brine) resources are scarce but provide significant operating cost benefits The LD Project (100% Reward) ► Sulfate of Potash (SO
Slide 4: Corporate Overview
CORPORATE OVERVIEW Capital Structure 14 March 2016 ASX:RWD Price History (1 Year) 1 700 Ordinary Shares on Issue 121.7m 0.9 600 Options on Issue ($0.25 – $0.50) 20.9m 0.8 0.7 500 Share Price $0.47 0.6 Share Price (A$) 400 Undiluted Market Capitalisation $57.2m 0.5 Cash & Equivalents1 300 A$6.3m 0.4
Slide 5: Experienced Board & Management
EXPERIENCED BOARD & MANAGEMENT Colin McCavana – Non-Executive Director, Chairman Daniel Tenardi – Projects Director - 30+ years experience in mining and earthmoving industries - 25+ years mining experience for various organisations including Alcoa, including the management, acquisition and developme
Slide 6: SOP Overview
SOP OVERVIEW SOP is a premium Potash fertiliser ► Sulfate of Potash – SOP, K2SO4 2014 Global Potash Consumption ► LD SOP product ready for crop application ► Contains 44.8% Potassium & 55.2% Sulfate (MOP: 54% K, 46% Cl) ► Potassium increases yields, water retention and disease resistance 1,200 ► Sul
Slide 7: Potash Growth Drivers
POTASH GROWTH DRIVERS Demand is driven by 80 8 Global Midyear Population (billions) 70 7 ► Increasing population Potash Demand (Mt) 60 6 ► Decreasing arable land 50 5 40 4 ► Changing appetites / growing middleclass 30 3 ► Salinity / disease / global warming 20 2 1981 1985 1989 1993 1997 2001 2005 20
Slide 8: SOP Production
SOP PRODUCTION Global SOP production >100ktpa per project Yara Kokkola – 200ktpa Compass Minerals SOP (Mannheim) Great Salt Lake – 300ktpa K+S SOP (Brine) Aktiengesellschaft– 1,200ktpa Xinjiang Luobupo SOP (Salts/Mannheim) Lop Nur – 1,300ktpa SOP (Brine) Qingshang Shandong – 600ktpa SOP (M
Slide 9: Global SOP Cost Curve (Mine Gate)
GLOBAL SOP COST CURVE (MINE GATE) Primary (brine) SOP deposits ensure low production costs 500 450 400 Estimated Operating Cost / t (US$)1 350 Reward Estimated 300 Cost of Production2 250 200 150 100 50 0 SDIC Mannheim Minerals SQM K+S Kali Rusal Luobopo Compass Compass Estimated Annual Production (
Slide 10: LD SOP Project (100% Owned)
LD SOP PROJECT (100% OWNED) ► Large in-situ Mineral Resource of 564Mt SOP grading 13.7kg/m3 in brine ► Resource is from surface and remains open in all directions ► Extensive testwork indicates that SOP can be recovered from LD brine via established processes ► Excellent climate for brine SOP produc
Slide 11: Globally Significant High Grade SOP In-Situ Resource
GLOBALLY SIGNIFICANT HIGH GRADE SOP IN-SITU RESOURCE ► In-situ Mineral Resource of Avg. Avg. Brine Brine SOP SOP Mineral Category Thickness Volume Porosity Volume Grade Resource 564Mt of SOP grading 13.7kg/m3 Mineral Resource Estimate Outside of Exclusion Zone ► Resource contained in 1,241km2 Indica
Slide 12: LD Project: Production Process – Discrete Components
LD PROJECT PRODUCTION PROCESS – 3 DISCRETE COMPONENTS Well-established process - harvested salt goes through a milling, conversion and crystallization process - SOP ready for crop application Brine Supply & Harvest Capex - A$100M Opex - A$67/t SOP LD PROJECT SCOPING STUDY Process Plant Capex - A$93M
Slide 13: LD Project: Brine Supply & Evaporation Ponds
LD PROJECT BRINE SUPPLY & EVAPORATION PONDS Scoping Capital Cost Estimates A$M US$M Status - Mining Proposal for Small Operations approved for the Earthworks, Evaporation Ponds & Supply 100.1 80.0 - Construction of pilot ponds for geotechnical assessment commenced - Revised detailed design and capit
Slide 14: LD Project: Development – Process Plant
LD PROJECT DEVELOPMENT – PROCESS PLANT Scoping Capital Cost Estimates A$M US$M Status - Mass balance updated following Resource estimate update Process Plant 92.8 74.2 - International engineering firm appointed for detailed design and costing A$/t US$/t Scoping Operating Cost Estimates Status SOP SO
Slide 15: LD Project: Development – Haul Road
LD PROJECT DEVELOPMENT – HAUL ROAD Capital Cost Estimates A$M US$M Status Road Upgrades & Related Infrastructure 55.9 44.7 - Road survey completed, detailed design and costing underway Operating Cost Estimates A$/t SOP US$/t SOP Status - Haulage options continue to be refined and reviewed. Ongoing d
Slide 16: LD Project: Other Development – Process Water
LD PROJECT OTHER DEVELOPMENT – PROCESS WATER ► Encouraging eight test holes completed to date in target Area A with 4-6l/sec flows from four (100mm) bores at 10-15,000 g/l TDS ► Two holes in Area B delivering 4l/sec low salinity water ► Drilling and hydrogeological testwork is continuing 16
Slide 17: LD Scoping Study – Key Metrics
LD SCOPING STUDY – KEY METRICS 1,200 Total Project Capex - Bar Chart 1,000 800 ► Capital cost estimate of A$320M (US$256M) for a 400ktpa operation (US$M) 600 400 ► Pre-Tax NPV10 of A$534M 200 ► Pre-Tax IRR of 37% - Reward Danakali Crystal Peak Allana IC Potash Potash Ridge ► Annual EBITDA A$154M (fu
Slide 18: LD Project: Community & Environment
LD PROJECT COMMUNITY & ENVIRONMENT Reward is focused on COMMUNITY engagement and opportunities while building an environmentally SUSTAINABLE operation 18
Slide 19: LD Project Timeline
LD PROJECT TIMELINE Reward is focused on de-risking the LD Project as it moves toward completion of Feasibility Studies 2016 2017 Activity Q1 Q2 Q3 Q4 Q1 Q2 LD Resource Drilling a Resource Update a Bore Drilling and Pumping Commenced December’15 Pilot Ponds Commenced February Scoping Study a Pre-Fea
Slide 20: Competent Person Statement
COMPETENT PERSON STATEMENT The information in this presentation that relates to Mineral Resources or Ore Reserves is based on information compiled by Mr Carel van der Westhuizen, a Competent Person who is a Member of The Australian Institute of Geoscientists, a Certified Environmental Practitioner (
Slide 21: Regional Projects
REGIONAL PROJECTS Reward has a number of highly prospective pipeline projects Overview of Regional Projects Karly Project Exploration Licences and Projects Level of Access Dora Project Applications Great Sandy Desert LD testwork results and Location Production Process Western Australia flowsheet des