Karnalyte Resources Inc. · TSX:KRN
Karnalyte Resources — Investor Presentation (August 2017)
19 slides from Karnalyte Resources's investor presentation, Aug 9, 2017
Slide 1: Corporate Presentation: Construction Ready Potash Company
CORPORATE PRESENTATION August 9, 2017 CONSTRUCTION READY POTASH COMPANY TSX : KRN PREMIUM POTASH PRODUCT SASKATCHEWAN, CANADA STRATEGIC PARTNER:
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements in this presentation may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other TSX : KRN factors which may cause the actual results, performance or achievements of the Corporation, or industry results, to
Slide 3: Karnalyte Resources Overview
KARNALYTE RESOURCES OVERVIEW TSX : KRN STRATEGIC Karnalyte Resources was founded in 2007 with impressive goals: To PARTNER: become a low cost greenfield potash mine in Saskatchewan and produce a superior product while minimizing environmental impact. Today we are one of the most advanced constructio
Slide 4: Construction Ready Potash Project
CONSTRUCTION READY POTASH PROJECT TSX : KRN • Bankable Feasibility Study STRATEGIC PARTNER: • Technical Report Updated June 2016 (prepared in accordance with NI 43-101) • EIS Approved by the Government of Saskatchewan in 2013 • Strategic Partnership with GSFC (21.5% ownership) • 20 Year Offtake Agre
Slide 5: Potash Project Modular Approach
POTASH PROJECT MODULAR APPROACH TSX : KRN Modular approach STRATEGIC PARTNER: Phase 1 Initial 625,000 tpy Phase 2 Expansion 750,000 tpy Phase 3 Expansion 750,000 tpy Total 2,125,000 tpy • Modular approach will require less initial Capex • Provides KRN with construction and operations experience • Lo
Slide 6: 2016 Technical Report Highlights
2016 TECHNICAL REPORT HIGHLIGHTS TSX : KRN Potash Bankable Feasibility Study (CDN $)1 STRATEGIC • Annual plant capacity 625,000 tonnes Phase 1 / 2,125,000 tonnes Phase 3 PARTNER: • After Tax Net Present Value of $ 3.39 B @ 8% Discount Rate • After Tax IRR of 19.1% • CAPEX Phase 1 $ 789 M (625,000 tp
Slide 7: 2016 Technical Report Highlights: Magnesium PFS
2016 TECHNICAL REPORT HIGHLIGHTS TSX : KRN Magnesium Preliminary Feasibility Study (CDN $)1 STRATEGIC PARTNER: • Annual Plant Capacity 104,000 tonnes Hydromagnesite and 100,000 tonnes of 32% MgCl2 brine • After Tax Net Present Value of $ 512 M @ 10% Discount Rate • After Tax IRR of 26.1% • CAPEX $ 1
Slide 8: Capex Comparison
CAPEX COMPARISON TSX : KRN KARNALYTE FACILITY PEER COMPARISON2,3,4 STRATEGIC 2,125,000 tpy1 PARTNER: 625,000 tpy1 2,000,000 tpy Cost per tonne of Cost per tonne of Cost per tonne of installed capacity installed capacity installed capacity $1,262 CDN $1,127 CDN $2500 CDN To build To build To build $7
Slide 9: OPEX in USD: Industry vs. Karnalyte
OPEX in USD – INDUSTRY1 vs. KARNALYTE 2 TSX : KRN STRATEGIC PARTNER: Karnalyte’s cost of production (operating cost/tonne): USD $108/tonne2 • Karnalyte’s operating costs will be among the bottom 1/3 of producers • 100% of Production is Granular Potash 1 Green Markets (2017, July) Global Potash Quart
Slide 10: Karnalyte's Premium Potash Product
KARNALYTE’S PREMIUM POTASH PRODUCT TSX : KRN STRATEGIC PARTNER: Minimum Grade 97% purity 95% purity Sodium Chloride Content • Less than 1% • 3.5% – 4% Less sodium increases crop yields • Uniform size • Irregular shape Shape • Spherical shape • Generates dust • Less dust generated • Lower caking tend
Slide 11: Environmental Advantage
ENVIRONMENTAL ADVANTAGE TSX : KRN STRATEGIC PARTNER: • Industry leading environmental program • Karnalyte will have the only potash mine in Saskatchewan that does not produce surface salt tailings piles or tailings ponds • Reduced liability – Industry standard salt tailings reclamation plans can exc
Slide 12: Strategic Partnership
STRATEGIC PARTNERSHIP TSX : KRN STRATEGIC Gujarat State Fertilizers & Chemicals (GSFC) PARTNER: • Karnalyte entered into a strategic partnership with GSFC in January 2013 • GSFC is committed to developing Karnalyte’s potash project • GSFC holds a 21.5% equity interest in Karnalyte • GSFC secured a 2
Slide 13: Potash: Why Now?
POTASH: WHY NOW? TSX : KRN • Crop returns of $3 (North America) - $7 (India) per dollar spent on STRATEGIC fertilizer1 PARTNER: • Strategic partnerships are funding construction-ready projects in order to secure future potash production off-take • Nutrient deficiencies in soils require increased fer
Slide 14: Potash: Why Now?
POTASH: WHY NOW? TSX : KRN • Potash Demand Expected to Double by late 2040’s1 STRATEGIC PARTNER: • Projected annual demand growth of 2.5% per year2 3 1 Burnside Dr. P. (2017, July 17). Feeding the world: the case for potash [blog post] Retrieved from: http://www.bhp.com/media- and-insights/prospects
Slide 15: Karnalyte Potash Project - Location
KARNALYTE POTASH PROJECT - LOCATION TSX : KRN • Located in the heart of “The Potash Belt of Saskatchewan” STRATEGIC PARTNER: • The Karnalyte Potash Project encompasses 100% interest in Subsurface Mineral Leases KLSA 010, KL 247A, and KL 246 (Karnalyte has 90,766 acres, or 367 km2 of mineral rights)
Slide 16: Other Catalysts for Karnalyte
OTHER CATALYSTS FOR KARNALYTE TSX : KRN STRATEGIC • Takeover activity and capital funding has increased in Saskatchewan PARTNER: • Strategic investment and off-take partnership with Gujarat State Fertilizers & Chemicals Limited(GSFC), one of India’s largest fertilizer companies, upgrading Indian agr
Slide 17: Additional De-risking
ADDITIONAL DE-RISKING1 TSX : KRN STRATEGIC • 4100 acres of surface lands acquired (Karnalyte) PARTNER: • Dissolution testing of deposit core samples (ERCOSPLAN) • Pilot solution mining test (ERCOSPLAN) • Evaporation and crystallization testwork (Swenson) • Detailed modelling of evaporation/crystalli
Slide 18: Management Team
MANAGEMENT TEAM TSX : KRN W. Todd Rowan Interim Chief Executive Officer and Director STRATEGIC PARTNER: Todd Rowan is a consulting firm owner partnered with TrendMax Agribusiness Group. TrendMax is a farm management consulting firm providing crop marketing and business planning services to agricultu
Slide 19: Karnalyte Resources Inc.
TSX : KRN STRATEGIC PARTNER: Karnalyte Resources Inc. 3150B Faithfull Avenue Saskatoon, SK S7K 8H3 info@karnalyte.com Tel: 306-986-1486 www.karnalyte.com
Karnalyte Resources — Investor Presentation (August 2017) on 6ix