Aguia Resources Limited · ASX:AGR
Aguia Resources — Investor Presentation (June 2014)
36 slides from Aguia Resources's investor presentation, Jun 11, 2014
Slide 1: Building a Brazilian Fertiliser Company
BUILDING A BRAZILIAN FERTILISER COMPANY For personal use only June 2014 AGUIA Resources Limited ASXRESOURCES AGUIA Code: AGR LIMITED 1
Slide 2: Disclaimer
DISCLAIMER For personal use only This document has been prepared as a summary only, and does not contain all information about the Company’s assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company’s securities.
Slide 3: Disclaimer and Competent Persons Statement
DISCLAIMER For personal use only The Company does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any recipient of this document. Nothing in this material should be construed as either an offer to sell or a solicitation
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS For personal use only ■ Building a Brazilian fertilizer company ■ World class phosphate and potash assets; ■ Brazil is an agricultural powerhouse dependent on fertilizer imports ■ Flagship Rio Grande Deposits Exhibiting High Quality & Lower Cost Characteristics ■ Three new igne
Slide 5: Aguia Overview: Building a Brazilian Fertilizer Company
AGUIA OVERVIEW: BUILDING A BRAZILIAN FERTILIZER COMPANY For personal use only World Class Phosphate and Potash Assets Assets ■ Rio Grande Phosphate: ■ Igneous carbonatite-hosted deposit; ■ 10MT Indicated and 21MT Inferred JORC Resource at Três Estradas (TE) – 55% of mineralized deposit not drilled y
Slide 6: Recent Management Changes; Elimination of Performance Shares
AGUIA OVERVIEW: BUILDING A BRAZILIAN FERTILIZER COMPANY For personal use only Recent Management Changes; Elimination of Performance Shares Directors David Gower – Interim Chairman – Over 25 years experience in the minerals industry including senior positions with Falconbridge Limited and Noranda Inc
Slide 7: The Need to Feed: Long-Term Investment Thesis for Fertilizer
THE NEED TO FEED: LONG-TERM INVESTMENT THESIS FOR FERTILIZER For personal use only Compelling Drivers for Long Term Fertilizer Demand Growth Population Biofuel Food World Fertilizer Demand (Mt Nutrient) Growth Production Consumption N P2O5 K2O Total 09/10 102.2 37.6 23.7 163.5 Increasing Decreasing
Slide 8: Brazil: An Agricultural Powerhouse Dependent on Imports
BRAZIL: NEAR-TERM INVESTMENT THESIS FOR FERTILIZER For personal use only Brazil: An Agricultural Powerhouse Dependent on Imports ■ 4th largest consumer of fertilizer but only 4% of global fertilizer production ■ 3rd largest consumer of P2O5 (behind China/India), 2nd largest importer of DAP and MAP ■
Slide 9: Brazil: Logistics Advantage for Local Producers
BRAZIL: NEAR-TERM INVESTMENT THESIS FOR FERTILIZER For personal use only Brazil: Logistics Advantage for Local Producers Most imported rock to Brazil is from North Africa with typical logistics costs of between $50 - $70/t The Bayovar mine in Peru (Vale) has higher logistics costs but low mining
Slide 10: Brazil Phosphate: P2O5 Balance Forecast to Remain in Undersupply
BRAZIL: NEAR-TERM INVESTMENT THESIS FOR FERTILIZER For personal use only Brazil Phosphate: P2O5 Balance is Forecast to Remain in Undersupply A number of initiatives are underway to decrease Brazil’s dependence on phosphate imports – VALE, Galvani, Anglo American, MBAC and DuSolo Fertilizers (among
Slide 11: Near-Term Focus in South Brazil
RIO GRANDE DO SUL PHOSPHATE: NEAR-TERM FOCUS IN SOUTH BRAZIL For personal use only The potential for a new world class phosphate province in southern Brazil Aguia has been first mover in region TRES ESTRADAS Large landholding over 390 km2 NEW DISCOVERY JORC RESOURCE Large resource base potenti
Slide 12: South and South East Brazil are Key Phosphate Markets
RIO GRANDE DO SUL PHOSPHATE: NEAR-TERM FOCUS IN SOUTH BRAZIL For personal use only South and South East Brazil are Key Phosphate Markets Phosphate Demand by State in Brazil, 2012 US$/t Phosphate Rock Price, 2006 - 2014 ‘000 t P2O5 (‘000 tonnes P2O5) 350 > 500 300 450 – 499 250 400 - 449 200 150 350
Slide 13: Current and Proposed Phosphate Rock Production in Brazil
RIO GRANDE DO SUL PHOSPHATE: NEAR-TERM FOCUS IN SOUTH BRAZIL For personal use only Current Phosphate Rock Mining is in South East Brazil and the Majority of Proposed Production is There as Well Lucena Most new production is targeting the Cerrado region Phosphate Note: new production will ramp up
Slide 14: Southern Brazil Imports a Significant Amount of Phosphates
RIO GRANDE DO SUL PHOSPHATE: NEAR-TERM FOCUS IN SOUTH BRAZIL For personal use only Southern Brazil Imports a Significant Amount of Phosphates Southern Brazil accounted for 70% of Brazil’s phosphate imports in 2013, including: 75% of phosphate rock 56% of Single superphosphate (SSP) Itacoatiara:
Slide 15: Ready and Willing Market with Local SSP Capacity
RIO GRANDE DO SUL PHOSPHATE: NEAR-TERM FOCUS IN SOUTH BRAZIL For personal use only Ready and Willing Market with Local SSP Capacity in Brazil, Uruguay Producers and Argentina The three southern States consume ~1.1 Mt Total Capacity = 9.0 M t P2O5 or ~ 30% of Brazilian consumption, with no phosphat
Slide 16: Excellent Infrastructure and Access to Markets
RIO GRANDE DO SUL PHOSPHATE: NEAR-TERM FOCUS IN SOUTH BRAZIL For personal use only Excellent Infrastructure and Access to Markets – All Rail Crosses Project Area • Excellent infrastructure with good road, rail, power, port and services • Railway within the project that goes north and south to Brazil
Slide 17: Carbonatite-Hosted Igneous Deposits Similar to Vale's Cajati Mine
RIO GRANDE DO SUL PHOSPHATE: NEAR-TERM FOCUS IN SOUTH BRAZIL For personal use only Carbonatite-Hosted Igneous Deposits Brazil mines are Similar to Vale’s Cajati Phosphate Mine in Brazil lower grade on average except Yara’s Siilinjärvi Current Producers Size Ore Grade Last FY Prod. Con. Grade mine. C
Slide 18: Primary Focus on Três Estradas Deposit
RIO GRANDE DO SUL PHOSPHATE: TRÊS ESTRADAS For personal use only Primary Focus on Três Estradas Deposit Total JORC compliant resource of 30.5Mt @ 4.29% P2O51 that includes both indicated (9.9Mt @ 5.03) and inferred (20.6Mt @ 3.94) resources and a higher grade oxide zone from surface of 1.81Mt @ 10.8
Slide 19: Preliminary JORC Resource (Indicated and Inferred)
RIO GRANDE DO SUL PHOSPHATE: TRÊS ESTRADAS For personal use only Preliminary JORC Resource (Indicated and Inferred) 1 SRK Consulting: cut-off grade of 3.0% P2O5)
Slide 20: Encouraging Preliminary Beneficiation Results
RIO GRANDE DO SUL PHOSPHATE: TRÊS ESTRADAS For personal use only Encouraging Preliminary Beneficiation Results Metallurgical recoveries up to 58.4% and concentrate grades up to 30.8% P2O51 Results indicate the potential to produce a commercial concentrate using standard methods and reagents avai
Slide 21: Railway and Easy Access
RIO GRANDE DO SUL PHOSPHATE: TRÊS ESTRADAS For personal use only Railway and Easy Access Railway line Três Estradas is in rolling open countryside, mostly scrub, with some light grazing Phosphate mineralisation at surface
Slide 22: High Grade Oxide Ore At Surface
RIO GRANDE DO SUL PHOSPHATE: TRÊS ESTRADAS For personal use only High Grade Oxide Ore At Surface; Potential to Increase Grade Over Life of Mine High grade oxide material at surface Considering mining and stockpiling upfront and blending with fresh rock over LOM Mine from surface - open cut wit
Slide 23: Three Development Options; Proximity to Port
RIO GRANDE DO SUL PHOSPHATE: TRÊS ESTRADAS For personal use only Looking at Three Development Options; Proximity to Port with Acid Terminal is Key Três Estradas is ~500m from all railroad that links to the Rio Grande Port, one of only TWO in Brazil with an acid terminal -> transport phosphate rock t
Slide 24: Potential Expansion to the South
RIO GRANDE DO SUL PHOSPHATE: TRÊS ESTRADAS For personal use only Potential Expansion to the South Initial shallow auger drilling from Três Estradas South has returned excellent results with grades up to +20% P2O5. All holes in carbonatite have ended in mineralisation. 16.0 metres @14.4% P2O5 from
Slide 25: Joca Tavares: New Discovery 40km from Três Estradas
RIO GRANDE DO SUL PHOSPHATE: JOCA TAVARES For personal use only New Discovery 40km from Três Estradas Initial scout auger drilling has returned excellent results in carbonatite from surface with grades up to +13% P2O5. All holes in carbonatite have ended in mineralisation. 14.7 metres @10.8% P2O5
Slide 26: Large Exploration Upside
RIO GRANDE DO SUL PHOSPHATE: LARGE EXPLORATION UPSIDE For personal use only Potential for a World Class Carbonatite Province - More Discoveries
Slide 27: Atlantic Potash Project Highlights
ATLANTIC POTASH PROJECT For personal use only HIGHLIGHTS Adjacent to Brazil’s only operating potash mine - Taquari-Vassouras Mine (Vale) produces <10% of country’s consumption, with reserves in place until 2019. Concurrently Vale is developing its Carnallita Potash Project for 1.2Mt solution-min
Slide 28: Atlantic Potash: Discovery Potential
ATLANTIC POTASH PROJECT For personal use only Discovery Potential ■ Historical exploration data obtained from Taquari-Vassouras Mine - Vale Brazilian Geological Survey Underground / Room and Pillar 700,000t KCl pa ■ Petroleum exploration and production Associated to Bull’s-eyes Gravity data – more t
Slide 29: Atlantic Potash: Resource Potential
ATLANTIC POTASH PROJECT For personal use only Resource Potential ■ Planned Drilling: PAC–03, located 120m east of historical hole BRSA-645 that intersected 55metres potash (note: no coring; presence of potash interpreted from down-hole geophysical logging); target depth 1,300m. PROPOSED PAC-03
Slide 30: Lucena Phosphate Project: JORC Inferred Resource
LUCENA PHOSHPHATE PROJECT For personal use only JORC Inferred Resource Estimate for Sedimentary Deposit in Paraiba State Initial JORC compliant inferred resource of 55Mt @ 6.42% P2O51 1 SRK Consulting: cut-off grade of 3.0% P2O5)
Slide 31: Lucena: Potential for Increased Resource
LUCENA PHOSHPHATE PROJECT For personal use only Lucena Potential for Increased Resource ■JORC compliant inferred mineral resource of 55.1Mt @ 6.42% P2O51111 ■The mineral resource only covers a potion of the project area with room to expand ■An extensive land position, located close JORC COMPLIANT to
Slide 32: Aguia: Milestones
AGUIA: MILESTONES For personal use only Beneficiation test work on Três Estradas H1 2014 Preliminary Economic Assessment Drilling on Três Estradas South H2 2014 Drilling on Joca Tavares
Slide 33: Peer Comparison: Phosphates
PEER COMPARISON: PHOSPHATES For personal use only Market Gross In- Gross In- Company Deposit Last 52 wk 52 wk Shares Cap Situ Situ (By Development Stage) Ticker Crncy Location Type Stage Price High Low O/S (CAD) Tonnes P2O5 % Tonnes P2O5 % Mln Mln M+I Only M+I Only Inferred Inferred Construction/Pro
Slide 34: Peer Comparison: Phosphates Cost Metrics
PEER COMPARISON: PHOSPHATES For personal use only Engineering Mining Product & Processing Cost Metrics Mine Phosrock Product Init. Sustaining OpEx (ex. Mine Last Strip Life Product Grade Recovery CapEx Capex Trans) Company Deposit Type Location Study Stage Ratio Years Mln tpa P2O5% Ratio % US$ mln U
Slide 35: Enquiries
For personal use only ENQUIRIES: PRAKASH HARIHARAN– Managing Director info@aguiaresources.com.au www.aguiaresources.com.au ASX Code: AGR
Slide 36: Appendix 1: Brazilian Border Zone
APPENDIX 1: BRAZILIAN BORDER ZONE RIO GRANDE TE AND JT PROJECTS For personal use only The Option: Aguia has an option to acquire the Rio Grande Projects TE and JT 100% for 5 million shares. The Issue: An historical throw-back to defence issues that concerned the former military government (1964 – ’8