Neurizer Ltd · ASX:NRZ
Neurizer — Investor Presentation (July 2022)
32 slides from Neurizer's investor presentation, Jul 5, 2022
Slide 1: NeuRizer Urea Project: A Project of National Significance
1 For personal use only NeuRizer Urea Project A Project of National Significance July 2022 ASX:NRZ TOWARDS A CARBON NEUTRAL WORLD 1
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by, or for share price as a result of general market conditions or presentation or comm other forward-looking statements Mineral Resource Compliance Statement NeuRizer. It contains, and we may make other written otherwise, the effe
Slide 3: Table of Contents
For personal use only Table of Contents NRZ Overview 4 The Global Urea Market 8 The NeuRizer Urea Project 12 ESG and Carbon Neutrality 16 Milestones and Commercial Feasibility 19 NeuRizer markets 22 Capital Requirements and Funding 27 Conclusion 30 3
Slide 4: NeuRizer Ltd Overview
NeuRizer Ltd Overview For personal use only Carbon Neutral project from 2022 and embedded ESG credentials ASX listed company developing its NeuRizer Urea Project (NRUP), 550km north of Adelaide, South Australia Developing low-cost, carbon neutral, nitrogen-based fertiliser for local and export agric
Slide 5: Daelim – Global Partner
Daelim – Global Partner For personal use only • Lumpsum, turnkey EPCC contractor – FEED, BFS, EPCC • Daelim facilitated A$1.5 Bn of funding* (70% of urea capex) • Offtake agreement for 50% of production signed - $1.5B • Daelim a strategic investor in NRZ – 9% stake • Carbon capture co-operation agre
Slide 6: Key Milestones met
Key Milestones met For personal use only Stage 2 Construction Q4 commences, - HoA offtake with Daelim Stage 1 November Construction 5MW urea plant - Downstream Development Petroleum Production power plant ammonia plant Approval to commence Licence granted 100MW power gasifiers Production of 1mtpa -
Slide 7: Key Developments
Key Developments For personal use only Regulatory • Petroleum commercial production licence and heritage approvals obtained • Technical capability proven - successful operation of the Pre-Commercial Demonstration plant and faultless post Technology operation environmental monitoring • KBR providing
Slide 8: The Global Urea Market
For personal use only The Global Urea Market 8
Slide 9: Urea Crisis
Urea Crisis For personal use only May 1, 2022 April 29, 2022 March 22, 2022 March 23, 2022 April 29, 2022 March 22, 2022 March 22, 2022 9
Slide 10: What is Urea?
What is Urea? For personal use only • Growing agricultural crops requires nitrogen, phosphorus and potassium (NPK) in large amounts to support both crop yield and quality – nitrogen fertilisers are key • Urea (NH2)2CO) is a nitrogen containing fertiliser formed from ammonia and carbon dioxide • 46%
Slide 11: The Global Outlook for Urea
The Global Outlook for Urea For personal use only Population • The world’s population is expected to increase by 2 billion people in the next 30 years, from 7.7 billion to 9.7 billion. • The extra 2 billion people require living space, reducing the land available for farming • The world population i
Slide 12: The NeuRizer Urea Project
For personal use only The NeuRizer Urea Project 12
Slide 13: Project Highlights
Project Highlights For personal use only 1 Disruptive 2 Commitment to 3 Significant 4 Permits Secured Business Model Sustainability Infrastructure The world’s only fully Site has access to existing • Upstream permits 1mtpa, lowest quartile global integrated, carbon neutral infrastructure for transpo
Slide 14: NRUP Site Overview
NRUP Site Overview For personal use only • 1 million tonnes per annum of granular urea • Bottom of the global cost curve • Favourable logistics with on-site rail loop and dedicated track to Port Augusta • Vertically integrated with gas, power, water, CO2 on site • Infrastructure licenced, sole user,
Slide 15: NRUP – Urea Manufacturing Process
NRUP – Urea Manufacturing Process For personal use only 1 Insitu Gasification 2 Gas Production 3 Ammonia Synthesis 4 Urea Production Scope 1 Emissions Scope 2 Emissions CCS feasibility independently Syngas produced The resulting H2 and N2 The NH3 is fed into a urea verified on-site is fed into a gas
Slide 16: ESG and Carbon Neutrality
For personal use only ESG and Carbon Neutrality 16
Slide 17: NeuRizer Carbon Neutral in 2022
NeuRizer Carbon Neutral in 2022 For personal use only /ACCUs Grey – CO2 Produced Green – CO2 Utilised NRUP Carbon Neutral – by Design 17
Slide 18: NeuRizer Carbon Neutral in 2022
NeuRizer Carbon Neutral in 2022 For personal use only • This is not ‘greenwashing’ • Carbon neutral programme started in 2018 – we are not new to this, it has been a long-term commitment • Intention to make carbon neutral urea now becoming a reality • NRZ is a certified carbon neutral organisation -
Slide 19: Milestones
For personal use only Milestones 19
Slide 20: Top Tier Partners
Top Tier Partners For personal use only Engineering, Procurement, Construction and Commissioning Partner Strategic Debt Advisor Ammonia Technology Licensor Environmental and Development Approval Urea Technology Commodity Market Licensor Analysis Sulphur removal technology Emissions Reduction provide
Slide 21: Pre-FID Activity
Pre-FID Activity For personal use only Complete Q3 2022 Q4 2022 Q1 2023 PFS PPL and Heritage Approval Drilling Investigation/ 5MW Power EPCC FID Monitoring Wells Plant Construction Stage 1: Gas a production EPCC, BFS and Power Plant / Infrastructure • early revenue Development 3D Seismic Acquired •
Slide 22: NeuRizer Markets
For personal use only NeuRizer Markets 22
Slide 23: NeuRizer's Target Markets
NeuRizer’s Target Markets For personal use only Export • Worldwide governments are restricting trade in urea to ensure local supplies • Global fertiliser and agricultural markets and supply chains now highly exposed to geopolitical conflicts, lessening supply and increasing demand • NRUP will initia
Slide 24: Export Offtake Agreement
Export Offtake Agreement For personal use only • Binding contract with Daelim Trading • Minimum 500,000 tonnes per annum from 2025 • Take or Pay • Index linked pricing • 5-year contract with mutual extensions o Contract value at forecast prices (US$424/t) - A$1.5Bn1 over 5 years o At today's prices
Slide 25: DL E&C Offtake - Impact
DL E&C Offtake - Impact For personal use only A$m 800 • Offtake sufficient to cover all operating costs plus 700 safety margin • No requirement for 600 further offtake agreements 500 • Offtakes remain available 400 for potential strategic partners 300 • Allows potential for accessing higher spot 200
Slide 26: Domestic Sales
Domestic Sales For personal use only • Australian granular urea sales reached 2.7 million tonnes in 2021 • Addressable market covers 91% of crops in Victoria, New South Wales and South Australia • NeuRizer will have a strong location and distribution advantage in its target markets - South Australia
Slide 27: Capital requirements and Funding
For personal use only Capital requirements and Funding 27
Slide 28: Feasibility Studies
Feasibility Studies For personal use only PFS Project Assumptions Syngas produced per year PJ 35 • Interim BFS (not released) completed March 2022 confirmed robust Debt:Equity ratio % 70:30 economics per the PFS of November 2020 Interest Rate % 6.0 Inflation % 2.5 • Conservative assumptions retained
Slide 29: Financing
Financing For personal use only Stage 2 Funding • Aim to conclude financing at same time as BFS completed – or shortly thereafter • PWC engaged to advise on debt package(s) • Debt underpinned by long term offtake with Tier 1 company Korean ECA funding • Additional debt 50% of gasfield, 70% of power
Slide 30: Conclusion
For personal use only Conclusion 30
Slide 31: Conclusion
Conclusion For personal use only • Nationally significant project – reduce reliance on exports, strengthen sovereign supply chains for critical agricultural input (urea) • NRUP will help Australia become self-sufficient in urea providing local farmers with quality, cost competitive fertiliser. • NRZ
Slide 32: Thank you
Thank you For personal use only Justyn Peters Executive Chairman Phil Staveley Managing Director T +61 408 355 552 Tony Lawry Investor and Corporate Relations T +61 412 467 160 32