Kore Potash Plc · LSE:KP2
Kore Potash — Investor Presentation (May 2017)
23 slides from Kore Potash's investor presentation, May 2017
Slide 1: Kore Potash Ltd – a unique opportunity
Kore Potash Ltd – a unique opportunity Sean Bennett May 2017
Slide 2: Disclaimer
Disclaimer ▪ This presentation contains general information only and is, or is based upon, information which has been released to ASX. This presentation is not an invitation, offer or recommendation (express or implied) to apply for or purchase or take any other action in respect of securities and i
Slide 3: Building a world class MOP Project
Building a world class MOP Project Deep and well understood market ▪ MOP is the deepest and best understood fertiliser market representing c. 85% of global potash market Kore well placed to be among the world’s lowest cost MOP producers ▪ Shallow depth of c 300m ▪ Close proximity to coast: only 35km
Slide 4: Board and Senior Management
Board and Senior Management Kore Potash Project management team has over 250 years of mining experience at an average of 25 years per person, across a range of industries & countries. In addition, major holder, SQM has dedicated significant senior resource to assisting Kore Potash in developing the
Slide 5: Asset overview
Asset overview Kola Sylvinite Deposit ▪ High grade – 33% KCl ▪ Shallow 200-300m below surface ▪ Large (573Mt M+I*) and open laterally ▪ BFS started in Q1 2017 ▪ Mining license granted in August 2013 ▪ ESIA approved ▪ Own Jetty Dougou Carnallite Deposit ▪ Very large (1.1Bt M+I) ▪ Combined thickness >
Slide 6: A new strategy differentiating the company
A new strategy differentiating the company Properly capitalised ▪ Investment of US$50m with recent Summit investment at AU$0.25 Off-take ▪ Preliminary conditional off-take for minimum of 40% of annual production Distribution ▪ Potential access to global distribution platform of SQM in 116 countries
Slide 7: World class new cornerstone Investors
World class new cornerstone Investors SGRF (US$20m investment) SQM (US $20m investment) ▪ Primary sovereign wealth fund of the Sultanate of ▪ Integrated producer and distributor of specialty plant Oman with a focus on investing the Omani nutrients, iodine, lithium, potassium-related fertilizers Gove
Slide 8: World class construction consortium
World class construction consortium ▪ A French engineering company founded in 1958 ▪ World’s largest construction company by revenue, employing over 36,000 people employing +185,000 people ▪ Listed on Euronext Paris with revenues of over €10bn ▪ A French company listed on Euronext Paris and a ▪ Curr
Slide 9: Why is Kore a unique Potash opportunity?
Why is Kore a unique Potash opportunity? Quality ▪ High grade (Kola 33% KCl) with very low insoluble content Cost ▪ Expected to be one of the lowest MoP opex at c$100 per tonne Upside ▪ At 50-60% KCl Dougou Extension is extraordinarily high grade Scale ▪ In excess of 5bn tonnes of resources (excludi
Slide 10: Exceptional High Grade target at Dougou Extension
Exceptional High Grade target at Dougou Extension ▪ Dougou Extension Prospect hosts a candidate for the world’s highest grade potash seam ▪ Two drill holes completed (2012 and 2104), 1.4km apart, both intersected >4 m and 55- 60% KCl ▪ An Exploration Target1 was announced on 27 Jan 2015, for 235–470
Slide 11: What sets Kore apart from other African projects
What sets Kore apart from other African projects Close to the coast No port needed ▪ No requirement for building rail or major road ▪ Permission for dedicated Jetty Access to gas ▪ Oil industry generating excess gas Potential access to low cost power ▪ Gas powered power plant nearby Political suppor
Slide 12: Demand and supply
Demand and supply Supply Demand 12
Slide 13: Capex optimisation
Capex optimisation 1 600 Capex (US$/t of Annual Production) 1 400 1 200 1 000 800 600 400 200 - Muga Milestone Allana Colluli Kola Danakil Wynyard Muskowekwan Mengo Ochoa ▪ 2012 PFS estimated Capex to be around $1.85bn ▪ This was in lower half of capex per ton of MOP across global Potash projects ▪
Slide 14: Financing
Financing Indicative Indicative Capital Description Capital Description amounts amounts Debt ECA $600m Equity Existing $300m DFI $300m New $300m Banks $300m Total $600m Total $1,200m Overall $1,800m 14
Slide 15: Significant resource (Mt)
Significant resource (Mt) 600 Contained KCl in Measured & Indicated Resources (Mt) 500 400 300 200 100 - Source: Public Company Reports 2015 15
Slide 16: Strategically advantageous opex
Strategically advantageous opex K2P enjoys the following cost advantages ▪ Over 40% of industry at cUS$200/tonne ▪ K2P at $100/tonne ✓ Dedicated ✓ Shallow Jetty resource ✓ Low electricity ✓ Low and gas costs, labour cost abundant water supply ✓ High grade – low insoluble ✓ Close to coast 16
Slide 17: Significant future news flow
Significant future news flow Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 2022 Kola drilling ✓ ✓ Dougou Extension drilling ✓ ✓ ✓ Possible Dougou Extension further drilling ✓ ✓ ✓ ✓ ✓ Analysis & London listing ✓ ✓ DFS ✓ ✓ ✓ ✓ ✓ ✓ Fixed price EPC ✓ Mining convention signed ✓ Ratified into la
Slide 18: Summary
Summary Transaction materially de-risks future K2P already world class project ▪ Funded DFS ▪ High Quality – and additional drilling – Shallow, high grade, low insoluble resource – Significant investors ▪ Quantity – with financial capability and expertise to take project – Significant resource of ov
Slide 19: Appendices
Appendices
Slide 20: Potash market
Potash market Better shape than many commodity markets Prices have been impacted by ▪ Population growth ▪ Break up of marketing alliance ▪ Strong demand curve ▪ Global economic conditions ▪ Reduction in arable land per capita ▪ Change in dietary preference Long term prices are supported by a steep c
Slide 21: Corporate structure
Corporate structure Kore’ has a 97% holding in Sintoukola Potash which holds: Kore Potash Ltd (KPL – ASX) MGM RoC 100% 97% 3% Kore Potash Sintoukola Potash SA South Africa (PTY) Ltd RoC 100% 100% Kola Mining Sintoukola Permit SARL (Kola Deposit) (Dougou Deposit & Yangala Prospect) ▪ 100 % of Sintouk
Slide 22: Resources and exploration target
Resources and exploration target Resource Category Million Tonnes Grade KCl % Kola Sylvinite Deposit Measured 264 33.75 Indicated 309 32.61 Inferred 475 32.48 TOTAL 1,048 32.84 Kola Carnallitite Deposit Measured 295 17.83 Indicated 449 18.69 Inferred 473 18.81 TOTAL 1,217 18.53 Dougou Carnallitite D
Slide 23: ROC Mining Convention
ROC Mining Convention Aim Typical rights & obligations of K2P including ▪ To create a stable, transparent and predictable contractual ▪ Mining permit rights framework supporting the investors return on investment for ▪ Management obligations the period between the investment phase (construction) to