Agrimin Limited · ASX:AMN
Agrimin — Investor Presentation (December 2014)
25 slides from Agrimin's investor presentation, Dec 18, 2014
Slide 1: Investor Presentation December 2014
ASX: AMN For personal use only Investor Presentation December 2014
Slide 2: Important Information
Important Information Company Name Change For personal use only On 10 November 2014 the Company changed its name from Global Resources Corporation Limited (ASX: GRM) to Agrimin Limited (ASX: AMN). Important Information This presentation has been prepared as a summary only, and does not contain all i
Slide 3: Corporate Snapshot
Corporate Snapshot For personal use only Capital structure Directors and management Share price $0.13 Ordinary shares (ASX: AMN) 87.7m Stephen Everett, Non-Executive Chairman Options 15.0m Chemical engineer. +35 years of management and board experience in the Market capitalisation – fully diluted $1
Slide 4: Company Summary
Company Summary For personal use only Focused on brine-hosted sulphate of potash (SOP) Late cycle commodity which is leveraged to growing food consumption High prices of >US$500/t are supportive for new production Geologically scarce and strategic mineral Advancing two large-scale assets in WA
Slide 5: The Sulphate of Potash (SOP) Market
For personal use only The Sulphate of Potash (SOP) Market Investor Presentation – November 2014 5
Slide 6: What is SOP?
What is SOP? For personal use only A fertiliser for high-value crops Sulphate of potash (SOP) is a premium form of potash fertiliser that is used on high-value crops such as vegetables, fruit and tree nuts SOP contains 17% sulphur and low chloride, compared to standard potash which contains 46%
Slide 7: The Food Security Story
The Food Security Story For personal use only Rising food consumption is a long term trend United Nations forecasts approximately 71 million new mouths to feed each year While at the same time arable land is shrinking around the world Emerging markets will need to improve agricultural yields t
Slide 8: Potash Market
Potash Market For personal use only SOP is a highly strategic mineral Global potash production is 64Mt per annum, including 55Mt of muriate of potash (MOP) and 6Mt of SOP The SOP market segment is worth circa US$3.5 billion per annum SOP is far more strategic and geologically scarce than MOP
Slide 9: Potash Supply
Potash Supply For personal use only Potash supply is highly concentrated, both geographically and at a company level Well-known potash producers which operate major mines in Russia, Belarus and Canada all produce MOP The SOP industry is characterised by different companies There are only three
Slide 10: Industry Cost Curve
Industry Cost Curve For personal use only Brine producers sit at the bottom of the SOP industry cost curve There are three SOP brine operations worldwide – Luobupo Salt Lake in China, Great Salt Lake in the USA and Salar de Atacama in Chile These brine operations have attractive cost structures
Slide 11: New Production of SOP
New Production of SOP For personal use only New sources of primary SOP production are very rare Most new primary production is extremely Potential SOP production (Mt per annum) capital intensive, i.e. both IC Potash and Potash Ridge have a CAPEX requirement of over US$1 billion Greenfields devel
Slide 12: Price Outlook
Price Outlook For personal use only SOP prices remain strong For the past decade, circa 65% of the world’s MOP production has been marketed by an oligopoly: Canpotex representing PotashCorp, Mosaic and Agrium Belarus Potash Company (BPC) representing Uralkali and Belaruskali The unexpected a
Slide 13: The Mackay Project
For personal use only The Mackay Project Investor Presentation – December 2014 13
Slide 14: Project Summary
Project Summary For personal use only Overview 100% ownership Situated on Lake Mackay, WA’s largest salt lake spanning 3,500km2 One of the largest undeveloped brine- hosted SOP resources in the world Arid environment is well suited to low- cost solar evaporation Brine chemistry is potentia
Slide 15: Mineral Resource
Mineral Resource For personal use only Highlights Brine Volume SOP Grade Contained SOP Resource Category (m3) (kg/m3) (Mt) Inferred Mineral Resource of 3.3 Inferred 3,299,260,425 6.72 22.16 billion m3 of brine at a SOP grade of 6.72kg/m3 Equivalent to 22.2Mt of contained SOP Calculated to an a
Slide 16: Exploration Target
Exploration Target For personal use only Highlights Brine Volume SOP Grade Contained SOP Target Range (m3) (kg/m3) (Mt)* Exploration Target of between 4.6 and 12.4 billion m3 of brine at a SOP grade of Lower 4,600,000,000 6.69 30.00 between 6.69 and 8.91kg/m3 Upper 12,400,000,000 8.91 110.00 * Not
Slide 17: Past Work
Past Work For personal use only Summary Shallow drilling program completed in September 2009 24 vibracore holes were drilled to an average depth of 2.7m and terminated due to drill rig capacity Vigorous brine flows were recorded in all but two of the holes drilled Drilling was undertaken on
Slide 18: Planned Work Program
Planned Work Program For personal use only Summary Infill and extensional drilling Pumping tests on trial trenches and wells Evaporation trial to produce raw potash samples Metallurgical testwork 2014 2015 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Site Visits Mi
Slide 19: Community Relations
Community Relations For personal use only Highlights Land Access Agreement signed in December 2014 with the Kiwirrkurra people Agreement covers all five Exploration Licences that make up the Mackay Project area of 2,276km2 Agrimin has received strong support and encouragement from local Aborig
Slide 20: Supply Chain
Supply Chain For personal use only Road Project is connected to Alice Springs via well maintained sealed and unsealed roads Roads are currently used to transport fuel and supplies to communities Road services minimal traffic Rail Alice Springs is connected to shipping terminals at Darwin via
Slide 21: Development Plan
Development Plan For personal use only Western Australia has a history of salt production The Lake Mackay region benefits from a very hot, windy and dry environment with excellent evaporation conditions Low-cost solar evaporation techniques could result in very competitive operating costs Ther
Slide 22: The Great Sandy Desert Project
For personal use only The Great Sandy Desert Project Investor Presentation – December 2014 22
Slide 23: Project Summary
Project Summary For personal use only Overview 100% ownership Two granted Exploration Licences in the East Pilbara of WA Situated in a new globally significant SOP province Arid environment is well suited to low- cost solar evaporation 95km south of the Great Northern Highway and accessibl
Slide 24: Geological Model
Geological Model For personal use only Waukarlycarly Embayment is a potentially major depositional sink for inflowing brines Permian sediments of the Poole Sandstone and Paterson Formation represent the targeted geological horizon The underlying Grant Group is interpreted to exist at depths of b
Slide 25: For personal use only
For personal use only Mark Savich Alec Pismiris Executive Director Director & Company Secretary P: +61 402 746 757 P: +61 8 9421 2107 E: msavich@agrimin.com.au E: apismiris@agrimin.com.au www.agrimin.com.au 25