Agrimin Limited · ASX:AMN
Agrimin — Investor Presentation (July 2020)
41 slides from Agrimin's investor presentation, Jul 21, 2020
Slide 1: Investor Presentation | July 2020
Investor Presentation | July 2020 ABN 15 122 162 396 ASX Code: AMN
Slide 2: Important Notices and Disclaimers
Important Notices and Disclaimers Nature of Document Competent Person Statements This presentation has been prepared as a summary only, and does not contain all information about Agrimin Limited’s The information in this presentation that relates to Exploration Results for the Mackay Potash Project
Slide 3: Premium quality sulphate of potash (SOP)
1 Premium quality sulphate of potash (SOP) Our projects will produce high-grade, water-soluble SOP that is essential for crops such as fruits and vegetables 2 Helping to achieve global food security SOP will play a critical role in improving crop yields for farmers of developing countries in Asia Pa
Slide 4: Tier 1 Project in the World's Best Mining Jurisdiction
Tier 1 Project in the World’s Best Mining Jurisdiction1 The flagship Mackay Potash Project is set to be the world’s lowest cost SOP producer Project Map o Definitive Feasibility Study (DFS) shows the Mackay Potash Project to be a large, long-life, low cost and expandable fertiliser asset o Maiden Or
Slide 5: Total Ore Reserve comprises Proved and Probable Ore Reserve
1. Total Ore Reserve comprises a Proved Ore Reserve of 3.7Mt and a Probable Ore Reserve of 16.3Mt. 2. Refer to the ASX Release on 21 July 2020 for full Definitive Feasibility Study details. All material assumptions underpinning the production target and forecast financial information derived from th
Slide 6: The Premium Potash Fertiliser
The Premium Potash Fertiliser SOP is essential for high value crops and trades at a substantial price premium to MOP Muriate of Potash (MOP) Sulphate of Potash (SOP) o Standard source of Current Price1 Current Price2 o Chloride-free source of potassium and contains US$220/t US$400-550/t potassium an
Slide 7: Leveraged to Global Megatrends
Leveraged to Global Megatrends Growing Global Population How to Feed the World’s Population 9.7bn 6.9bn Population growth 3.bn 77 200 Rising middle class 1960 2010 2050 Shrinking Arable Land Per Capita Reduction in arable land 4.3ha/capita 14 per capita 9 2.1ha/capita 1.8ha/capita 100 Environmental
Slide 8: ESG Aspirations
ESG Aspirations We are committed to operating in alignment with the United Nations Sustainable Development Goals Safety The safety and well-being of our people and the communities in which we operate is our paramount focus. Environment We are committed to caring for the natural environment and we ai
Slide 9: Mackay Potash Project
Mackay Potash Project 100%-owned by Agrimin Computer-generated imagery of Agrimin’s proposed processing plant. Investor Presentation | Page 9
Slide 10: Mackay Potash Project Overview
Mackay Potash Project Overview Australia’s largest SOP development underway Project Location Map o Project’s Ore Reserve is hosted by Lake Mackay in Western Australia, 940km by road south of Wyndham Port o Landmark Native Title Agreement signed with the Kiwirrkurra People o Project includes a dedica
Slide 11: Typical Bulk Commodity Project
Typical Bulk Commodity Project Four key project components including the mine, processing plant, logistics chain and export facility Schematic of the Mackay Potash Project o Brine will be extracted from Lake Mackay using trenches and transferred into on-lake solar evaporation ponds o Potash salts th
Slide 12: World-Class Maiden Ore Reserve
World-Class Maiden Ore Reserve Enormous resource base provides substantial upside Plan View and Cross Section of Mineral Resource o Maiden Ore Reserve of 20Mt of SOP utilises a fraction of the >1Bt total Mineral Resource (total porosity basis)1 o DFS mine plan is based on an extremely shallow ground
Slide 13: Lake Mackay is in a Class of its Own
Lake Mackay is in a Class of its Own Mackay Potash Project validated as Australia’s most strategic and valuable SOP asset Ore Reserves for Australian SOP Projects1 o Lake Mackay is the largest known SOP-bearing salt lake in Australia covering an area of approximately 3,500km2 20.0Mt Probable Ore Res
Slide 14: DFS Sets a New Industry Standard
DFS Sets a New Industry Standard DFS involved an investment of $25m since the Pre-Feasibility Study o Agrimin has completed the industry's most extensive fieldwork programs to de-risk the project, including: o 2 years of long-term trench pumping tests at 22 representative sites across Lake Mackay o
Slide 15: DFS Results Significantly Exceed the PFS
DFS Results Significantly Exceed the PFS DFS delivers higher margins, lower capital intensity and longer life Summary of DFS Results o Post-Tax IRR of >20% and NPV/capex ratio of >1 Parameter Unit DFS PFS Change are extremely rare metrics for a large, long-life and Production Rate ktpa 450 426 +6% s
Slide 16: Bullish Price Outlook
Bullish Price Outlook Price stability bolsters the investment case for the large-scale, long-life Mackay Potash Project Historical SOP Prices for 2010 to 2020 (US$/t)1 o Agrimin’s high-grade, water-soluble SOP product can compete 800 strongly against existing SOP products in the market 700 600 o DFS
Slide 17: Exceptional Cash Flow Margin
Exceptional Cash Flow Margin A long-life project that can be profitable though the commodity cycle Cash Flow Margin Per Unit of SOP Production (US$/t) o Lowest quartile cash costs are driven by: 600 o Economies of scale o Low-cost brine extraction via trenches and gravity flow 500 o Wet harvesting o
Slide 18: Targeting the World's Lowest Cost SOP Production
Targeting the World’s Lowest Cost SOP Production Primary brine producers have a clear cost advantage Global SOP Cash Cost Curve (US$/t FOB)1 o Agrimin to be the world’s lowest cost supplier of seaborne 450 SOP once in production 400 350 o Large portion of global SOP production relies on the high 300
Slide 19: A Globally Significant Potash Asset
A Globally Significant Potash Asset Mackay Potash Project is the largest SOP development project outside of Africa Country Forecast Annual SOP Production Rates for Projects at Feasibility Stage1 Company Dallol 600ktpa Colluli 472ktpa2 Lake Mackay 450ktpa3 Lake Disappointment 407ktpa Lake Sevier 338k
Slide 20: Next Door to Key Growth Markets
Next Door to Key Growth Markets SOP will play a critical role in improving crop yields and achieving food security in South and Southeast Asia o Agrimin’s planned large-scale seaborne supply of SOP is “India, Indonesia, Malaysia and Brazil ideally located to take advantage of key SOP growth markets
Slide 21: Premium Product Quality
Premium Product Quality DFS pilot tests produced high-grade, water-soluble SOP product o SOP product samples from the Mackay Potash Project have consistently exceeded industry benchmarks (>52% K2O) o High quality SOP specifications are based on a conventional flowsheet and supported by extensive pil
Slide 22: Mine Plan Delivers a Multi-Decade Mine Life
Mine Plan Delivers a Multi-Decade Mine Life Trench network is designed to extract a constant SOP tonnage over a very long life Layout of Trench Network & Brine Mining Units o Hydrogeological modelling and mine planning is based on an extensive database, including 2 years of long-term pump testing on
Slide 23: Conventional Processing Plant
Conventional Processing Plant Processing plant designed and costed by Primero Group, an experienced WA resources contractor Simplified SOP Process Flow Diagram o Processing plant is designed for steady-state SOP production of 450ktpa1 grading 52% K2O, with the process design and flowsheets completed
Slide 24: Eco-Friendly Solar Evaporation Process
Eco-Friendly Solar Evaporation Process Industry-leading innovation displayed through use of wet harvesting technology Layout of Solar Evaporation Ponds o Pond modelling and process design based on an extensive database comprising 1½ years of pilot pond operations on Lake Mackay o Evaporation pond sy
Slide 25: Power and Water Supply
Power and Water Supply Agrimin’s SOP will have one of the lowest carbon footprints of any major macro-nutrient fertiliser product Site Layout o Average power demand of 16MW to be supplied by a hybrid gas, solar, wind and battery power solution with a modelled renewable energy penetration of 58% o SO
Slide 26: Northern Transport Corridor
Northern Transport Corridor Agrimin to create a strategic long-term supply chain benefit for the project and the region Haulage Corridor to Wyndham Port o New transport corridor to be developed from Lake Mackay to Wyndham Port and will provide one of the shortest direct trucking routes for an Austra
Slide 27: Fully Integrated Haulage Solution
Fully Integrated Haulage Solution Joint Venture with a proven bulk logistics operator provides critical haulage capability o Newhaul Bulk is a JV between Agrimin and trucking specialist Craig Mitchell to deliver haulage services for the Mackay Potash Project1 o JV will deliver major cost savings and
Slide 28: Fully Integrated Port Facility
Fully Integrated Port Facility Wyndham port facility completes Agrimin’s low-cost, mine-to-ship logistics solution Wyndham Port Facilities o Mackay Potash Project comprises strategic and scalable export infrastructure to be developed at Wyndham Port o Waterfront freehold land held by Agrimin will ho
Slide 29: Indicative Development Timeline
Indicative Development Timeline Pathway to production is well-advanced with a current focus on off-take, project funding and approvals 2020 2021 2022 2023 2024 Today Decision To Mine DFS Off-take & Funding Commence Commence Commence Construction Pond Filling SOP Production Regulatory Approvals FEED
Slide 30: Strong Indigenous Engagement
Strong Indigenous Engagement Landmark Native Title Agreement in place o Native Title Agreement signed in 2017 with the Kiwirrkurra People, the native title holders of the land at the Mackay Potash Project1 o Continued project support from Traditional Owners of the Kiwirrkurra lands since 2014 o Agri
Slide 31: Strategic, Social and Economic Benefits
Strategic, Social and Economic Benefits A project of national significance o The Mackay Potash Project was awarded Major Project Status by the Australian Federal Government in May 2020 o The project will make an important contribution through employment, economic infrastructure and $350m annually in
Slide 32: Lake Auld Potash Project
Lake Auld Potash Project 100%-owned by Agrimin Investor Presentation | Page 32
Slide 33: Lake Auld Potash Project Overview
Lake Auld Potash Project Overview Low cost entry into Australia’s highest grade SOP exploration project Project Map o Located in Western Australia, 640km by road south-east of Port Hedland, making it the closest potash project to an operating port in Australia o Land Access and Mineral Exploration A
Slide 34: Exceptionally High-Grade SOP Brine
Exceptionally High-Grade SOP Brine Initial project studies are focused on Agrimin’s recently acquired granted tenement Lake Auld Potash Project Map o Granted tenement covers a prospective lakebed area of 108km2 across the northern half of Lake Auld o Historical brine sampling on Lake Auld returned h
Slide 35: A Significant SOP Project in the Making
A Significant SOP Project in the Making Agrimin has successfully consolidated tenure across the highly prospective Canning Palaeovalley Canning Palaeovalley Map o Agrimin’s tenure includes >250km of strike length from Lake Auld to Percival Lakes, covering the most prospective portion of the Canning
Slide 36: Set to be the world's lowest cost SOP producer
Set to be the world’s lowest cost SOP producer with a 40 year life Exceptional economics and high cash flow margin to underpin the delivery of project funding 20 World-class SOP Ore Reserve located in the MILLION TONNES world’s best mining jurisdiction Premium SOP product quality to drive strong cus
Slide 37: Office Contact: Investor Relations: Media Contact:
ABN 15 122 162 396 Office Contact: Investor Relations: Media Contact: 2C Loch Street Mark Savich Michael Vaughan Nedlands, WA 6009, Australia Chief Executive Officer Fivemark Partners T: +61 8 9389 5363 T: +61 8 9389 5363 T: +61 422 602 720 E: admin@agrimin.com.au E: msavich@agrimin.com.au E: michae
Slide 38: Appendix 1. Corporate Information
Appendix 1. Corporate Information Capital Structure (as at 20 July 2020) Board of Directors ASX Code AMN Mark Savich Chief Executive Officer Share Price $0.53 Richard Seville Non-Executive Chairperson Shares 196.4M Brad Sampson Non-Executive Director Share Rights 8.0M Alec Pismiris Non-Executive Dir
Slide 39: Appendix 2. Mineral Resource & Ore Reserve
Appendix 2. Mineral Resource & Ore Reserve Drainable Porosity Mineral Resource Estimate1 (JORC Code 2012) Measured & Indicated Resource Aquifer Inferred Total Mineral Resource Measured Indicated Total Zone Volume (Mm3) K (mg/L) SOP (Mt) K (mg/L) SOP (Mt) K (mg/L) SOP (Mt) K (mg/L) SOP (Mt) K (mg/L)
Slide 40: Appendix 3. Information Sources – Production Rates
Appendix 3. Information Sources – Production Rates Company Source Source Date Comments Yara International ASA (OSL: YAR) Corporate release titled “Yara to Sign Ethiopian 7 November 2017 Production rate of 600ktpa of SOP is based on proposed Mining Agreement” development plan. Danakali Ltd (ASX: DNK)
Slide 41: Appendix 4. Information Sources – Ore Reserves
Appendix 4. Information Sources – Ore Reserves Project / Company Source Source Date Comments Lake Mackay ASX announcement titled “Agrimin to be the 21 July 2020 Total Ore Reserve of 20.0Mt of SOP comprises 3.7Mt in the Proved Agrimin Limited (ASX: AMN) World’s Lowest Cost SOP Producer” (page 6) cate