Kore Potash Plc · LSE:KP2
Kore Potash — Elemental Minerals — Investor Presentation (December 2014)
23 slides from Kore Potash's investor presentation, December 2014
Slide 1: The Sintoukola Project
The Sintoukola Project December 2014
Slide 2: Forward Looking Statement and Disclaimer
Forward Looking Statement and Disclaimer Disclaimer: This presentation contains statements that are "forward-looking". Generally, the words "expect," “potential”, "intend," "estimate," "will" and similar expressions identify forward-looking statements. By their very nature, forward-looking statement
Slide 3: Project - Prime Location
Project - Prime Location Very close proximity to port facilities, power and gas
Slide 4: Kola Potash Deposit Credentials
Kola Potash Deposit Credentials Grade: > 33% KCl Kola sylvinite Size: > 0.5 Billion tonnes Measured and Indicated Mineral Resource Shallow: 260 to 300 metres below surface Ore Quality: sylvinite, <0.2% insols Simple Geometry: flat lying, extensive, thick, uniformity of grade Close to por
Slide 5: Project Grade and Size
Project Grade and Size Two deposits, both over 1 billion tonnes, both deposits open Kola (Sylvinite) Deposit 573 Mt @ 33.13% KCl Measured + Indicated Resource High grade by global standards and highest on the African continent MEASURED INDICATED INFERRED Mts %KCl %K2O Mts %KCl %K2O Mts %KCl %K
Slide 6: Kola: A Top Tier Potash Asset
Kola: A Top Tier Potash Asset Potash Assets Ranked by Grade (K20%) and Deposit Depth Average Reserve / Resource Grade (K2O) Elemental (Hangingwall Seam Only), 34.0% K2O BHP Billiton (Jansen), 25.4% Elemental M+I (Kola Deposit), BHP Billiton 20.9% K2O Encanto Potash (Burr), 22.8% (Muskowekwan Propert
Slide 7: Project Infrastructure
Project Infrastructure Kola located 36km from the coast (opex is “on the ship”) Located 80km from Pointe Noire – simple logistics for construction and operations CEC power plant 90km from the project (300MW capacity – currently 90MW used) Abundant gas available at the power plant Abundant
Slide 8: Independent Project Configuration
Independent Project Configuration Production ● Conventional Mining: Phased Implementation Phase 1: 1.0Mtpy MoP, Phase 2 1.0Mtpy MoP Existing Camp LEGEND Existing Roads Transportation Existing Tracks Haulage Road ● 36km Conveyor for run-of-mine (“ROM”) ore UP 3.17 New Track Service Road Existing Trac
Slide 9: Kola Project – Phased Implementation Study Results
Kola Project – Phased Implementation Study Results Phase 1 project capital expenditure of US$908 million After-tax NPV10% of US$1,836 million, IRR of 24.0% Revised to start production of Phase 1 (1mtpa MoP) in 2018 and ramp up to Phase 2 (2mtpa MoP) by 2022 Average, after-tax Free Cash Flows
Slide 10: Opex Benchmarking Kola vs. Peers (estimated FOB cost)
Opex Benchmarking Kola vs. Peers (estimated FOB cost) US$/tonne 300 Site Cash Costs Rail/Road Transport 250 22 200 22 35 35 35 22 35 150 35 40 35 285 22 22 44 220 100 188 21 35 35 35 162 163 146 145 151 125 134 117 121 119 50 91 98 76 77 82 63 64 64 62 0 Strategic World Class Potash Project Source:
Slide 11: Kola: Exceptional Ore Quality
Kola: Exceptional Ore Quality Upper Seam sylvinite Hangingwall Seam sylvinite Insoluble content: 1mm Contribute to process recovery losses and flowsheet complexity >5% typical in Canada and elsewhere Kola and Dougou insols < 0.2% An exceptionally ‘clean’ ore False colour QEM scan Metallu
Slide 12: Kola: Simple Sylvinite Orebody
Kola: Simple Sylvinite Orebody Seams are flat or gentle dip Continuity: seams can be followed many kilometres with small thickness variation No unstable material such as bischofite or shale/clay above/below the potash seams Uniformity of grade: sylvinite grade varies by less than 10% across
Slide 13: Permitting and Fiscal Regime
Permitting and Fiscal Regime Source: public domain Permitting Equator Principles compliant ESIA approved in 2013 Mining License awarded for Kola (25 years) Land rezoning completed Fiscal regime MagIndustries likely to be first potash producer in Africa, is under construction: 1.2Mtpa MoP
Slide 14: Kola: Project Economics
Kola: Project Economics PFS completed in September 2012: Reputable consultants: SRK (Denver), Egis, AMEC, AAE Cost estimates based on site specific data, not assumptions: geotech and hydrogeo surveys (mine and the surface infrastructure), metocean studies, etc. Phased Implementation Study (a
Slide 15: Dougou Deposit
Dougou Deposit High grade carnallitite, higher grade than some sylvinite deposits… Reflects the purity of the Hangingwall Seam Carnallitite (>90% carnallite) Inferred Resource of 1.29 billion tonnes grading 21.72 % KCl, including 520 Mt grading 24.58 % KCl within the Hangingwall Seam *1 Resour
Slide 16: Dougou Deposit
Dougou Deposit Combined thickness of 30 to 45 metres of carnallitite, hosted by 4 seams Deposit open and potential to expand significantly Flat, continuity, consistent grade and thickness, insols <0.2% No unstable material such as bischofite or shale/clay in HW or FW.. Dougou High-Grade-Carn
Slide 17: Yangala Sylvinite Prospect
Yangala Sylvinite Prospect Only two boreholes drilled into this area, 1.4 kms apart, both intersected Hangingwall Seam Sylvinite over 4 metres thick and grading 57-60% KCl*1 Exceptional grade reflects purity (90%) of precursor carnallitite Prospect 12 x 7 kms. Exploration Target being prepared
Slide 18: Forward Programme
Forward Programme 2014 2015 2016 2017 2018 2019 2021 Bankable Detailed Engineering, Construction Phase 1 Production 1Mt Pa Kola Project Feasibility Study Plant and Commissioning Phase 2 Construction Dougou Scoping PFS Mining Project Study Licence Yangala Exploration Exploration Prospect Target Drill
Slide 19: Summary
Summary Kola Deposit: Dougou and Yangala: Size & Grade, Ore Quality, Simple Dougou: the perfect solution mining Deposit opportunity? >billion tonnes high- Location, Available Infrastructure grade-carnallitite and open. Permitting, Fiscal Regime Yangala: HWSS >4 m thick and 57- Economics,
Slide 20: Appendix
Appendix 1 Strategic World Class Potash Project 20
Slide 21: Executive
Executive ● 20 years experience in the mining and minerals industry. 11 years with the BHP Billiton Group (“BHP”) in various senior managerial roles, Project manager for the integration of the BHP and Billiton merger Tom Borman with extensive global business experience. Chairman ● Established and co
Slide 22: Kola Deposit – Check List
Kola Deposit – Check List Grade 33.1 % KCl (20.9 % K2 O) Kola deposit (M+I) Kola Deposit: 573 Mt Measured + Indicated Tonnage 474 Mt Inferred 151Mt Proven and Probable Reserve and a 25 year LOM Low insoluble Content (<0.2%) Ore Quality Simple mineralogy = clean sylvinite, excellent flotation kinetic
Slide 23: Financial Overview
Financial Overview Capitalisation Summary Major Shareholders Exchange Listing: ASX A$ Name Holding Share Price (A$/share) 0.22 Harlequin Investments 19.17% 52 Week High / Low (A$/share) 0.48 / 0.14 EMC 9.57% Shares Outstanding (m) 381 Dingyi Investments 9.53% Options (unlisted) (m) 19.7 Options (lis
Elemental Minerals — Investor Presentation (December 2014) on 6ix