Reward Minerals Ltd · ASX:RWD
Reward Minerals — Sydney Mining Club CEO Presentation (July 2019)
22 slides from Reward Minerals's conference presentation, Jul 4, 2019
Slide 1: Reward Minerals Limited – Sydney Mining Club CEO Presentation
REWARD Developer of the MINERALS largest high-grade brine LIMITED SOP Deposit in Australia Sydney Mining Club CEO Presentation ASX | RWD 4 July 2019 www.rewardminerals.com
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: Investment Rationale
INVESTMENT RATIONALE Reward Minerals is the developer of the Lake Disappointment Brine Sulphate of Potash Project Native title Largest Detailed, secured, Australian conservative Advanced brine SOP Highest And… High PFS permitting deposit evaporation, Undervalued average in- status Lowest against sit
Slide 4: Reward Corporate Snapshot
REWARD CORPORATE SNAPSHOT Capital Structure 12 June 2019* ASX:RWD Colin McCavana – Non-Executive Chairman - 30+ years experience in mining and earthmoving industries Ordinary Shares on Issue 162.6m - Ops and development management of Australian and international projects Rights and Options on Issue
Slide 5: LD Brine SOP Project – Location
LD BRINE SOP PROJECT – LOCATION ► 866km to Port Hedland, class-leading bulk export terminal ► 511km sealed road – Great Northern Highway ► 355km of existing, frequently used dirt roads 5
Slide 6: What's in a Name?
WHAT’S IN A NAME? Lake Disappointment Explorers Frank Hann & Talbot 6
Slide 7: What is SOP? Sulphate of Potash
WHAT IS SOP? SULPHATE OF POTASH The Premium source of potassium fertiliser – K2SO4 ► A low-chloride source of potassium and sulphur ► Potassium is an essential plant macronutrient ► Sulphur is also an important nutrient ► Applied to speciality and/or chloride sensitive crops ► SOP supplies less than
Slide 8: Highest Evaporation Rate
HIGHEST EVAPORATION RATE No better location for a brine evaporation operation in Australia LD Project 8
Slide 9: Low Rainfall
LOW RAINFALL No better location for a brine evaporation operation in Australia LD Project 9
Slide 10: LD Project Metrics – Costs & Production
LD PROJECT METRICS – COSTS & PRODUCTION • A$345 M, includes indirects and owners costs (+/-20%) Capital cost • A$451 M, includes contingency & pre-production costs • At least 400,000 tpa Production • ~9 Mt SOP produced over ~25 years • Less than 10% of the resource • Cash cost – A$335/tonne (FOB Por
Slide 11: LD Project Metrics – Economics
LD PROJECT METRICS – ECONOMICS • Price: US$500/tonne, FX: AUD/USD: 0.75 Assumptions • Discount Rate: 8% Real • Royalty: State: 3.75%, Martu: 1.25% • Average EBITDA – 45% (~$118 M/year) Margins • Average Cash – 48% (~$122 M/year) • Pre-tax: NPV8% – $518 M, IRR – 19% Returns • Post-tax: NPV8% – $293 M
Slide 12: LD Project – Operational Overview
LD PROJECT – OPERATIONAL OVERVIEW A$91/t A$102/t Other Opex Costs Closure – A$2/t Martu Royalty – A$7/t FOB Cash Cost: Road Maint - A$15/t A$344/t Site Services - A$22/t (US$258/t) EBITDA Margin: ~44.6% A$105/t @ US$500/t Ex-Works Cost: A$239/t (US$180/t) 12
Slide 13: Updated WA EPA Permitting Schedule
UPDATED WA EPA PERMITTING SCHEDULE Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Public exhibition of ERD DWER provided final comments to Reward Reward submits response to submissions DWER reviews responses to submissions and publishes the response
Slide 14: Current/Upcoming Activities
CURRENT/UPCOMING ACTIVITIES* ► Environmental Permitting: ▪ Final stages at state level ► Resource Conversion: ▪ Infill drilling program completed ▪ Grade upside ► Flowsheet Improvements: ▪ Ongoing R&D ▪ Targeting cost reductions & operational efficiencies ► Pond Trials: ▪ Crystallisation: Crude pota
Slide 15: Conclusion – Anything but disappointing
CONCLUSION The LD Brine SOP Project: Is technically robust ► Conservative PFS conducted to exacting standards ► Independently reviewed Flowsheet … and economically attractive, with ► Scope to improve economics on multiple fronts … and at 407,500 tonnes SOP/annum ► One of the world’s largest, longest
Slide 16: Appendices
\ ~ - APPENDICES REWARD MINERALS LTD.
Slide 17: Globally Significant Tier 1 Resource
GLOBALLY SIGNIFICANT TIER 1 RESOURCE 153 Mt Indicated & Inferred Drainable SOP Resource – Australia’s largest Assigned Nominal Dimensions (m) Volume Area Specific SOP Brine Drainable Unit Yield Hydrostratigraphic Unit Grade SOP Symbol Effective 3 6 2 6 (kg/m3) (Mt) Top Base Thick. (m x 10 ) (m x 10
Slide 18: PFS Results – Capital Costs
PFS RESULTS – CAPITAL COSTS Initial and Sustaining Capital Costs (LOM Real) AUD M Production - Trenches and Ponds 57.6 Process Plant 73.2 Infrastructure 108.8 Site Support Temporary Services 2.9 Construction Costs 59.2 Subtotal 301.7 Indirect Costs (EPC, Consultants, Commissioning) 20.0 Owners Costs
Slide 19: LD – Superior Grade and Evaporation
LD – SUPERIOR GRADE AND EVAPORATION Grade and evaporation have a direct impact on production 40 Typical Potassium Target Concentration LD Grade & Evaporation Potassium Concentration – g/l 30 13.4 g/l SOP = 8 g/l K 20 Goldfields Evaporation & Lower Grade* ~8 g/l SOP = ~3.6 g/l K 10 100 200 300 400 50
Slide 20: Operational and Cost Implications
OPERATIONAL AND COST IMPLICATIONS To match output, lower grade operations need to: Abstract/Pump More Brine Build Bigger Ponds National Geographic Bigger ponds, more seepage, with lower evaporation making it worse: They will Suffer More Leading to higher costs Capex & Opex Costs Seepage Decreasing g
Slide 21: Compliance Statements
COMPLIANCE STATEMENTS Competent person statements: This information in this report that relates to Resource Estimation and hydrogeology is based on information compiled by Mr Robert Kinnell, a hydrogeologist and Competent Person who is a Member of The Australian Institute of Mining and Metallurgy an
Slide 22: Reward Minerals Ltd contact details
Reward Minerals Ltd 159 Stirling Highway Nedlands, WA, 6009 (T): +61 8 9386-4699 (W): www.rewardminerals.com
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