Turnstone Resources Ltd · ASX:TSR
Turnstone Resources — South Harz Potash — Investor Presentation (August 2023)
28 slides from Turnstone Resources's investor presentation, August 2023
Slide 1: Building a world-class potash business
SOUTH HARZ POTASH LTD. Building a world-class potash business ASX:SHP August 2023
Slide 2: Disclaimer
Disclaimer Forward looking and Competent Person’s statements This presentation has been prepared by South Harz Potash Limited (“South Harz Potash”, “SHP”, “The Company”). The information contained herein is a professional opinion only and is provided in good faith. Certain information has been deriv
Slide 3: South Harz Potash
South Harz Potash Building the MOP business of choice for European markets and beyond WORLD-CLASS PROJECT 5.3 billion $ tonnes1 ATTRIBUTES LARGE MINERAL COMPELLING TIER-1 ENDOWMENT ECONOMICS SCALE PREMIER POTASH LOCATION DEEP POTASH REGIONAL DEVELOPED MINING HISTORY EXPERTISE INFRASTRUCTURE LOW-RISK
Slide 4: Senior management
Senior management Deep executive and potash mine development delivery team Luis da Silva Lawrence Berthelet Andrew Robertson Dr Babette Winter Managing Director and CEO Chief Operating Officer Chief Financial Officer Regional Director Thŭringia, Germany ▪ Proven natural resources business leader ▪ M
Slide 5: World-class project attributes: large, high-quality mineral endowment
World-class project attributes Large, high-quality mineral endowment OHMGEBIRGE PROJECT HIGH–QUALITY 290Mt JORC MINERAL 1 2 SYLVINITE RESOURCE AT RESOURCE WITH 13.47%1 89% 3 4 PART OF THE BROADER OF OHMGEBIRGE SOUTH HARZ PROJECT SYLVINITE SEAM IN THE 5.3Bt INDICATED MINING CATEGORY1 RESOURCE LICENCE
Slide 6: World-class project attributes: Tier-1 scale with modular expansion potential
World-class project attributes Tier-1 scale with modular expansion potential ▪ Resource size directly comparable to BHP’s Operator Jansen project ▪ Very high proportion of Sylvinite ore Ownership 100% 100% 100% 100% ▪ Resource grades equivalent to Highfield’s Country Germany Morocco Spain Canada Mug
Slide 7: World-class project attributes: brownfield pathway capital-efficiency benefits
World-class project attributes Brownfield pathway provides potential for substantial capital-efficiency benefits AUGUST 2022 OHMGEBIRGE OPTION 1: BERNTERODE SCOPING STUDY OUTCOME PERMITTING PROCESS Preferred brownfield option COMMENCED US$620M REQUISITE PRELIMINARY utilising existing shaft infrastru
Slide 8: World-class project attributes: brownfield optionality
World-class project attributes Brownfield optionality provides potential for substantial capital-efficiency benefits A. B. Placeholder – awaiting updated maps Long section view1 A. Plan view of Ohmgebirge tenement (left) and long section of Ohmgebirge deposit (above, marked A to B on plan view) ▪ Sh
Slide 9: Premier potash location
Premier potash location Safe, stable jurisdiction with a deep MOP and salt mining history SOCIAL LICENCE TO 1 Ohmgebirge 2 Muhlausen–Nohra (North) OPERATE Supportive regional government and community, pro job creation 1 ▪ Region with a proud century-long history in potash 2 mining and a positive vie
Slide 10: Premier potash location: regional production expertise
Premier potash location Regional production expertise, well understood geology and chemistry Kali+Salz AG Global chemical group and largest supplier of potash in Europe ▪ Underground MOP mines producing 3.2mtpa across 3 separate operations in Germany and proximate to South Harz ▪ Werra Mines the lar
Slide 11: Low-risk, low-impact approach: historical drilling database
Low-risk, low-impact approach Extensive historical drilling database de-risked by recent confirmatory holes ▪ Ohmgebirge tenement and immediate surrounds contain 41 historical drill holes To be new map ▪ Broader South Harz Project contains 308 historical drill including all holes drillholes? ▪ This
Slide 12: Low-risk, low-impact approach: optimum access to Europe
Low-risk, low-impact approach Optimum access to Europe and the global seaborne market ▪ Located IN THE MIDDLE of the central European Ohmgebirge Project agricultural market Port of Rotterdam (NL) Port of Bremerhaven ▪ Small relative transport distances deliver low-carbon Port of Hamburg logistics fo
Slide 13: Low-risk, low-impact approach: low impact mining practices
Low-risk, low-impact approach Unwavering commitment to low impact mining practices ▪ Environmentally and socially responsible process route selected eliminating waste brine and minimising solid waste ▪ Environmental Impact Assessment (EIA) underway – identification and evaluation of environmental ri
Slide 14: Clear delivery pathway: PFS advancing on schedule
Clear delivery pathway PFS advancing on schedule with current focus on detailed trade-off analyses Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Milestone 23 23 23 23 23 23 23 23 23 23 23 24 Contract award ✓ Study commencement/initial meeting ✓ Planning approval procedure commencement ✓ Spatial pl
Slide 15: Clear delivery pathway: ticking all development milestones
Clear delivery pathway Ticking all development milestones RECENTLY DELIVERED MILESTONES: MILESTONE H1 H2 H1 H2 H1 H2 H1 H2 H1 CY23 CY23 CY24 CY24 CY25 CY25 CY26 CY26 CY27 ▪ Küllstedt and Gräfentonna exploration licence extensions granted by Thuringian mining authority Site selection ✓ ▪ Bench scale
Slide 16: Leverage to MOP price upside
Leverage to MOP price upside Conservative long run potash price assumed MOP NW Europe standard bulk (fob, nominal) US$/t 900 New global MOP pricing paradigm 800 Western European forecast to remain a net 700 MOP importer with regional supply deficit expected to increase in the long term. 600 500 400
Slide 17: Development funding
Development funding Strategic partnership process progressing though 2023 $ TSX/LSE LISTED BRAZILIAN NICKEL PROJECT DEVELOPMENT STAGE1 ASX LISTED ERITREA POTASH PROJECT (50%) DEVELOPMENT STAGE1 ▪ PEA/SS completed August 2012 ▪ PEA/SS completed December 2010 STRONG STRATEGIC ENGAGEMENT ▪ Initial PFS
Slide 18: Corporate snapshot
Corporate snapshot ASX | SHP PRO-FORMA CAPITAL STRUCTURE1 BOARD OF DIRECTORS Share price (2 August 2023) A$0.031 Ian Farmer: Non-Executive Chairman Shares on issue (incl. pending placement issue) 687M Dr Reinout Koopmans: Non-Executive Director Options (incl. pending placement issue) 92M Rory Luff:
Slide 19: Compelling investment proposition
Compelling investment proposition Positioned to become Europe’s MOP supplier of choice 1. Tier 1 project located within a G7 country 2. Perpetual licences 3. Low impact approach 4. Brownfield development potential for reduced initial capital 5. Proven geology, mining and process 6. Funding optionali
Slide 20: Appendix
APPENDIX
Slide 21: Mineral Resources estimates
Mineral Resources estimates Licence Area Categorisation Resource (Mt) K2O (%) K2O (Mt) Ohmgebirge Indicated 258 13.5 35 Total Indicated 258 13.5 35 Ebeleben Inferred 577 12.1 69 Mühlhausen-Nohra-Elende Inferred 1,698 9.7 165 Mühlhausen-Keula Inferred 1,130 11.1 125 Küllstedt Inferred 1,538 10.7 165
Slide 22: Clear delivery pathway: permitting process
Clear delivery pathway Permitting process benefits from ‘one-stop shop’ authority for each phase Phase Detail and authority ▪ Determines whether project can be implemented in a spatially, socially and environmentally compatible manner at the planned location Step 1: Site ▪ Applies for projects with
Slide 23: A large, growing MOP market
A large, growing MOP market Slow supply response from geopolitical tension and strong agricultural demand MOP SOP GLOBAL POTASH DEMAND VS MURIATE OF POTASH MOP SULPHATE OF POTASH SOP 60% K2O EQUIVALENT 52% K2O EQUIVALENT IS DOMINATED BY MOP ▪ Potassium chloride ▪ Potassium sulphate ▪ Large, well str
Slide 24: Potash mining in Thuringia
So POTASH MINING IN THURINGIA
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Slide 28: South Harz Potash
<i) SOUTHHARZ 37) POTASH
South Harz Potash — Investor Presentation (August 2023) on 6ix