Avenira Limited · ASX:AEV
Avenira — 121 Mining Investment Cape Town 2016
24 slides from Avenira's conference presentation, Feb 9, 2016
Slide 1: Investor Presentation – 121 Mining Investment Cape Town
9 February 2016 For personal use only EXCHANGE RELEASE INVESTOR PRESENTATION – 121 MINING INVESTMENT CAPE TOWN Enclosed is a copy of a presentation by Managing Director, Cliff Lawrenson to the 121 Mining Investment Cape Town on 9 February 2016. Cliff Lawrenson Managing Director
Slide 2: Nearing Rock Phosphate Production in Senegal
For personal use only NEARING ROCK PHOSPHATE PRODUCTION IN SENEGAL …MAKING A DIFFERENCE ASX: AEV ♦ ABN 48 116 296 541
Slide 3: Important Information – Disclaimer
Important information Disclaimer This presentation is neither a prospectus nor an offer of securities for subscription or sale in any jurisdiction. This presentation is not a securities recommendation and For personal use only does not constitute financial product or investment advice. The informati
Slide 4: Corporate Strategy
Corporate Strategy For personal use only To become a major contributor to the world nutrient market through the development of a carefully selected portfolio of valuable phosphate and other nutrient projects. 2
Slide 5: Investment Thesis
Investment Thesis For personal use only Production to commence from Baobab Phosphate Project in 2016 Low capex; low opex; simple mining; available infrastructure Permitted and financed Significant exploration potential to expand resource First production and revenue expected in 2nd half of 2
Slide 6: Phosphate: In Use
Phosphate: In Use The majority of phosphate production is used in the manufacture of fertiliser For personal use only Fertiliser (85%) Technical Phosphates (9%) Animal Feed (6%) Assists with seed formation Synthetic detergents Major structural component of Hastens plant maturity Metal trea
Slide 7: Phosphate: Strong Fundamentals
Phosphate: Strong Fundamentals For personal use only Global fertiliser market expected to be worth Rock phosphate has performed strongly US$172 billion during 2015 against a number of other commodities over the last 18 months 5 year average price of US$150/tonne Long term price forecasts of US
Slide 8: Food & Nutrition Security
Food & Nutrition Security Fertilisers provide essential nutrients to soils, livestock & people resulting in more food, better nutrition and healthier lives. For personal use only WORLD POPULATION GROWTH ARABLE LAND DECLINE PER INCREASED PER CAPITA CAPITA CONSUMPTION 3,000 Developing Countries Calori
Slide 9: Baobab Phosphate Project
Baobab Phosphate Project Rapidly progressing towards first production in 2016 For personal use only Port of Dakar Single exploration permit area of 1,553km2 Sedimentary rock phosphate mineralisation Small Mine Permit (SMP) granted over 5km2, allowing for unlimited production from the Gadde Bis
Slide 10: Location of Project and Port of Dakar
Location of Project and Port of Dakar For personal use only 8
Slide 11: The Republic of Senegal
The Republic of Senegal Overview For personal use only One of Africa’s most stable and successful democracies (IMF 2010) with a stable and investor friendly social and political environment Population of circa 14.6 million (2014 estimate) Substantial progress in combating poverty, improving so
Slide 12: Indicated Resource
Indicated Resource Updated Mineral Resource estimates released on 7 December 2015 For personal use only Maiden Indicated Mineral Resource within SMP of 12.6 Mt at 21.0% P2O5 Inferred Mineral Resource within SMP of 16Mt at 20% P2O5 Inferred Mineral Resource outside SMP of 64Mt @ 19% P2O5 Only
Slide 13: Baobab Project Financial & Commercial
Baobab Project Financial & Commercial For personal use only The Baobab Phosphate Project is financed to production: Existing Avenira cash of $12m – as at 31 December 2015 J.P. Morgan Placement raising 3.1m – ASX announcement 3 November 2015 Binding agreements for the Mimran Natural Resources P
Slide 14: Baobab Project Progress
Baobab Project Progress TASK STATUS For personal use only Inferred Resource – Initial Phase Complete RESOURCE Indicated Resource – Initial Phase Complete Contract mining and crushing Contract Signed. Mobilising to Site Contract Signed. Long lead time Wet screening components ordered. PROJECT Water D
Slide 15: Baobab Milestones 2016
Baobab Milestones 2016 Key: Complete For personal use only In Progress Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Resource Development (Initial phase) Metallurgical Testwork Engineering Environmental Permit Community Relocation Agreement Preliminary Feasibility Study / PEA Commencement of overb
Slide 16: Four Stage Growth Strategy
Four Stage Growth Strategy For personal use only Focus on production from SMP • Fully financed and permitted Stage 1 • First production during 2nd half 2016 • Targeting 500,000tpa Expand Resource via Exploration Stage 2 • Progress high priority infill drill targets proximal to SMP • Targeting thicke
Slide 17: Wonarah Project – Northern Territory
Wonarah Project – Northern Territory For personal use only Project 100% owned by Avenira One of Australia’s largest JORC and NI43-101 compliant phosphate resource Measured + Indicated Resource 300Mt @ 18.3% P2O5 (10% cut-off) Inferred Resource 542Mt @ 18% P2O5 (10% cut- off) Excellent inst
Slide 18: Improved Hard Process (IHP)
Improved Hard Process (IHP) IHP is an advanced downstream process aimed at transforming low grade rock phosphate into high value For personal use only superphosphoric acid (SPA), which is a key feedstock into the commercial fertiliser market. IHP offers significant benefits over the traditional wet-
Slide 19: Corporate Snapshot
Corporate Snapshot KEY STATISTICS ASSETS For personal use only Ordinary shares on issue 419m Baobab Project– 100% holding • Located in Senegal Share price A$0.12 • Substantial phosphate opportunity Market Capitalisation A$50.3m Baobab Mining & • Progressing towards near-term production Chemicals Cor
Slide 20: Post Mimran Investment
Post Mimran Investment KEY STATISTICS ASSETS For personal use only Ordinary shares on issue 524m Baobab Project– 80% holding • Located in Senegal Share price A$0.12 • Substantial phosphate opportunity Market Capitalisation A$62.9m Baobab Mining & • Progressing towards near-term production Chemicals
Slide 21: Summary
Summary For personal use only Development of the Baobab Phosphate Project is Avenira's priority Potential for near-term rock phosphate production and cash flow Strong strategic fit to Avenira's focus in the nutrient space Fully permitted and financed to production Ability to leverage signi
Slide 22: Avenira Limited
Avenira Limited ABN 48 116 296 541 For personal use only www.avenira.com Ground Floor, 20 Kings Park Road West Perth, WA 6005 AUSTRALIA PO Box 1704 West Perth WA 6872 AUSTRALIA +61 8 9264 7000 frontdesk@avenira.com For further information: Mr Cliff Lawrenson Managing Director and CEO Mr Rod Wheatley
Slide 23: Phosphate Reserves and Production
Phosphate Reserves and Production More than 85% of global phosphate reserves in Africa and the Middle East. For personal use only Global production in 2014 was 220 million tonnes. China production has traditionally been for the domestic market. However, China has become a meaningful exporter d
Slide 24: Importance of Macro Nutrients
Importance of Macro Nutrients For personal use only “Commercial fertilizer is responsible for 40 to 60% of the world’s food production. Without fertilizer, the world would produce only about half as many staple foods” Dr. Roberts, President, International Plant Nutrition Institute Nitrogen - fulfils