IC Potash — Investor Presentation (September 2013)
37 slides from IC Potash's investor presentation, September 2013
Slide 1: An Advanced Stage US-Based Sulphate of Potash Company
An Advanced Stage US-Based Sulphate of Potash Company
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements contained in or incorporated by reference into this presentation constitute “forward-looking statements”. Officers and representatives of IC Potash Corp. (the “Company”) may, in their remarks or in response to questions regarding this presentation, make certa
Slide 3: Our Corporate Declaration
Our Corporate Declaration Because we care, through engaged communication and integrity we distinguish IC Potash Corp. as a world class company. 3 IC Potash Corp
Slide 4: The Potash Opportunity
The Potash Opportunity ADDRESSING 7 billion consumers 4
Slide 5: Potash Fertilizers
Potash Fertilizers Sulphate of Potash Muriate of Potash (SOP – K2SO4) (MOP - KCl) • Premium quality potash • Common potash • Premium price – 30% over MOP • 55 million tonnes per year • 6 million tonnes per year • Contains chloride • Enhances yield and quality • Crop quality diminishes with chloride
Slide 6: Uses of SOP
Uses of SOP Sulphate of Potash is used for: Fruits Tobacco Vegetables Dry soils Nuts Salty soil Horticultural plants 6 IC Potash Corp
Slide 7: Six Million Tonne SOP Market
Six Million Tonne SOP Market 2% OCEANIA 26% Europe 44% ASIA 1% EAST EUROPE/FSU 10% NORTH AMERICA 6% 6% MIDDLE EAST LATIN AMERICA 6% AFRICA 7 IC Potash Corp
Slide 8: Project Location
Project Location Southeast New Mexico Highly industrial Known Potash Leasing Area Potash Producing Region The Mosaic Company Intrepid Potash Established Mining Infrastructure Roads, rail, power, water Access to ports of Houston and Long Beach Skilled labour force 8 IC Potash Corp
Slide 9: The Lowest-Cost Producer
The Lowest-Cost Producer Primary Producers Secondary Producers The IC Potash Advantage: OTHER METHODS Bottom-quartile cost Leach Polyhalite Salt Lakes MOP & Kieserite Mannheim (GSL) (K+S Kali) (Average) $162 / TONNE $225 $530 $560 / LT % OF CURRENT WORLD PRODUCTION 15% 25% 60% 9 IC Potash Corp
Slide 10: Prefeasibility Results
Prefeasibility Results PROJECT PARAMETERS INPUT OUTPUT Capacity 568k tons SOP & 275k tons SOPM Operating Cost $147 per short ton ($162 per tonne) Capital Cost $706 million Mine Life in 40 years Economic Model NI 43-101 Report dated December 30, 2011 10 IC Potash Corp
Slide 11: Prefeasibility Results
Prefeasibility Results ECONOMIC CHARACTERISTICS INPUT OUTPUT Average Gross Revenue $517 million SOP and SOPM Prices CRU (British Sulphur) Payback (post tax) 3.9 years IRR (post tax) 26% NPV @ 10% (post tax) $1.3 billion EBITDA $380 million NI 43-101 Report dated December 30, 2011 11 IC Potash Corp
Slide 12: Capital Cost: $706 million
Capital Cost: $706 million 2% 11% Utilities and Reclamation Loadout 19% Mine 68% Plant 12 IC Potash Corp
Slide 13: Operating Costs: $147 per short ton
Operating Costs: $147 per short ton Function Cost Input Costs 3% 7% Administrative Cost, Incl. Labor General & Administrative 5% 3% 25% Other Equipment Loadout 20% & Parts 22% Mining Gas 70% 20% 25% Processing Mine/Plant/Transportation Labor Electricity 13 IC Potash Corp
Slide 14: Mineral Reserves
Mineral Reserves RESERVES WITHIN 40 YEAR MINE PLAN Total Ore Tons Mining Recovery Recovered Ore Tons Polyhalite Grade Factor Proven 76,950,000 84.29% 64,861,000 80.14% Probable 93,632,000 79.69% 74,613,000 78.78% Total Proven & Probable 170,582,000 81.76% 139,474,000 79.39% REMAINING RESERVES WITHIN
Slide 15: Mineral Resources
Mineral Resources 4-ft Minimum Thickness Measured Indicated Measured plus Indicated Inferred Tons (million) 422 562 984 440 Grade Polyhalite 80.2% 79.9% 80.0% 80.6% Eq Grade K2SO4 22.7% 22.6% 22.7% 22.8% 5-ft Minimum Thickness Measured Indicated Measured plus Indicated Inferred Tons (million) 390 44
Slide 16: Process Flow and Equipment
Process Flow and Equipment 1 2 3 4 5 Continuous Miners Crushers Calciners Leach Tanks Crystallizers 16 IC Potash Corp
Slide 17: Permitted Deep Groundwater Wells Complete
Permitted Deep Groundwater Wells Complete Pumping Test at Full Production Capacity Underway 17 IC Potash Corp
Slide 18: Water Source
Water Source No water rights Capitan Reef required Bureau of Land Management support Office of State Engineer, New Mexico support No expected impacts on other water-right holders 18 IC Potash Corp
Slide 19: Project Timeline
Project Timeline STAGE ACTIVITY 2011 2012 2013 2014 2015 2016 Phase II-Metallurgy Sample Exploration Drilling Development Drilling Pre-Feasibility Engineering Studies Feasibility Permitting Project Permitting Mine Design Mine Construction Project Development Shaft Sinking Mine Development Process De
Slide 20: Environmental Permitting
Environmental Permitting Q4 STAGE TASK ‘11 2012 2013 2014 Review MPO • Mine Plan of Operation (MPO) Address review comments on • MPO Publish EIS Kick-off Meeting • Publish notice of intent (NOI) to • prepare EIS Conduct public scoping meetings • • Prepare draft EIS • • • • Publish draft EIS • Enviro
Slide 21: Marketing
Marketing Regional Warehouse Port of Houston Blender Local Markets International Markets Farm 21 IC Potash Corp
Slide 22: Partner: Yara International ASA
Partner: Yara International ASA Quick Facts Revenues: C$14.0 billion EBITDA: C$3.2 billion Market cap: C$13.5 billion Operations: +50 countries Sales: ~150 countries 22 IC Potash Corp
Slide 23: Yara Partnership Overview
Yara Partnership Overview Financial Considerations Strategic Consideration • C$40 million investment • Top 3 distributor globally • C$1.32 Per Share • First of a kind partnership • 30% off-take (take or pay) • Joint marketing • ICP retains 100% project equity • Affirms leading SOP position • Enhance
Slide 24: Yara Distribution
Yara Distribution By Region: By Product: 7% 12% OTHER 26% ASIA 48% 6% PRODUCTS NITRATE EUROPE UAN 6% AFRICA 5% CN 22% UREA 19% LATIN AMERICA 15% 34% NORTH AMERICA NPK Total sales (2011): 19.4 million tons 24 IC Potash Corp
Slide 25: Management Team
Management Team Sidney Himmel, B.Sc. (chemistry), CEO and Director Strong financial and managerial experience Engineering Kevin Strong, B.Comm., CGA, CFO Experience with TSXV and various corporate issuers Randy Foote, B.Sc. (engineering), COO and Director Geology Managed New Mexico potash mines for
Slide 26: Technical Consultants
Technical Consultants SNC-Lavalin, Inc. Project Management & Primary Engineering Agapito Associates Mine Development Engineering & Related Logistics Feeco International Kiln Design & Granulation Services INTERA Incorporated Hydrology Walsh Environmental Scientists and Engineers, LLC Permitting Hazen
Slide 27: Technical Consultants
Technical Consultants NOVOPRO Projects, Inc. Owner Engineering HPD Systems Product Crystallization Equipment Design 27 IC Potash Corp
Slide 28: Board of Directors
Board of Directors George Poling Chairman Knute Lee Jr. Chairman (USA), Independent Director Sidney Himmel Director Randy Foote Director Jorgen Stenvold Director Ernest Angelo Jr. Independent Director Anthony Grey Independent Director Pierre Pettigrew Independent Director 28 IC Potash Corp
Slide 29: Analyst Coverage
Analyst Coverage Alta Corp Capital Cormark Securities, Inc. Industrial Alliance Securities Laurentian Bank Securities Macquarie Equities Research National Bank Financial Paradigm Capital, Inc. Stifel Nicolaus Stonecap Securities 29 IC Potash Corp
Slide 30: Market Snapshot
Market Snapshot TSX:ICP OTCQX:ICPTF Share Price* $0.29 Basic Shares 152,528,084 Warrants 15,875,001 Options 13,803,250 FD Shares 182,206,335 Market Capitalization $44,233,144 Cash ~$18,000,000 *At September 9, 2013 30 IC Potash Corp
Slide 31: Investment Summary
Investment Summary Bottom Quartile OPEX Premium Price – Increases EBITDA Premium Quality Bankable Feasibility Study Underway Underserved Market Bullish Analyst Coverage World Class Partner Strong Institutional Sponsorship Low CAPEX Seeking Capital Partners Long-Life Mine List
Slide 32: Contact Information
Contact Information For more information, contact: Hanover|Elite Dodi Handy 407-585-1080 or ICP@hanoverelite.com www.icpotash.com 32 IC Potash Corp
Slide 33: Appendix
33 Appendix
Slide 34: Modified Room and Pillar Mining
Modified Room and Pillar Mining 34 IC Potash Corp
Slide 35: Process Flow Diagram
Process Flow Diagram 35 IC Potash Corp
Slide 36: Capital Costs: $706 million Total
Capital Costs: $706 million Mine Development 19% $127,449,000 Plant Development 68% $481,392,000 Product Loadout Development 11% $79,560,000 Utilities and Reclamation 2% $17,203,000 Total $705,604,000 36 IC Potash Corp
Slide 37: Drill Locations
Drill Locations 37 IC Potash Corp