Gensource Potash Corp. · TSXV:GSP
Gensource Potash — Investor Presentation (March 2023)
32 slides from Gensource Potash's investor presentation, Mar 6, 2023
Slide 1: The future of potash
TSXV: GSP AIM: GSP Click to edit Master title style The future of potash Leading The Way To Sustainable Food Security TSXV:GSP AIM:GSP March 2023 gensourcepotash.ca
Slide 2: Disclaimer
TSXV: GSP Disclaimer AIM: GSP Legal Notice The information contained in this presentation (the “Presentation”) is current as of the date hereof. There is no representation or warrant by Gensource Potash Corporation (the “Company” or “Gensource”) as to the accuracy or completeness of the information
Slide 3: Outline
TSXV: GSP AIM: GSP Click to edit Master title style Outline Section 1: Global Agriculture Demand Preferences are Changing Section 2: Gensource Approach To Potash Section 3: Tugaske Module Section 4: Economics & Next Steps gensourcepotash.ca 3
Slide 4: Food production and required potash
TSXV: GSP AIM: GSP Food production and required potash 1 Source: World Wildlife Fund, Living Planet Report 2014 gensourcepotash.ca 4
Slide 5: Global demand is regulatory driven as LCFS are enacted
TSXV: GSP AIM: GSP Global demand is regulatory driven as LCFS are enacted Low Carbon Fuel Standards are having a significant impact on all industries More North American jurisdictions are Decarbonization is Accelerating following California’s aggressive LCFS programs as regulations require the use o
Slide 6: Gensource highlights – first step to 3 Million Tonnes
TSXV: GSP AIM: GSP Gensource highlights – Gensource’s first step to 3 Million Tonnes ATTRACTIVE GLOBAL POTASH EFFICIENT EXTRACTION METHOD 10-YEAR OFF-TAKE AGREEMENT DYNAMICS • Potash production designed to produce • Renewable take-or-pay off-take agreement • Growing global population needs no tailin
Slide 7: Section 1 – Global Agriculture Demand
TSXV: GSP AIM: GSP Click to Section 1 –edit Master title style Global Agriculture Demand Preferences are Changing Be the change that you wish to see in the world. - Mahatma Gandhi 2023-03-02 gensourcepotash.ca 7
Slide 8: Why Gensource? - Feeding the world requires more potash
TSXV: GSP AIM: GSP Why Gensource? - Feeding the world requires more potash 10 Billion 100 Million An estimated global population of ~10 Potash (or “KCl”) is a necessary component in billion in 2050 will significantly increase fertilizer that helps produce healthier soil, larger demand for food1 prod
Slide 9: Potash mining requires real advancement to be sustainable
TSXV: GSP AIM: GSP Why Gensource? - Potash mining requires real advancement to be sustainable 0.18 Hectares 1.3B Tonnes Estimates suggest we could see a decline All conventional potash mines produce salt tailings. of per capita arable land to 0.18 hectares 1.3B tonnes is the approximate amount of sa
Slide 10: Current extraction and distribution methods are unsustainable
TSXV: GSP Current extraction and distribution methods are unsustainable AIM: GSP Conventional Potash Extraction Problems Conventional Potash distribution supply chain Producing potash is carbon-intensive, water-intensive Potash is predominantly sold on wholesale markets, which and leaves behind larg
Slide 11: Saskatchewan, Canada - First stop on global food security highway
TSXV: GSP Saskatchewan, Canada - AIM: GSP First stop on global food security highway In emerging economies, demand for protein is growing rapidly due to SASKATCHEWAN’S SHARE OF WORLD EXPORT CANADA’S SHARE OF WORLD POTASH MARKET DEMAND urbanization and rising incomes. Canadian ingredients and food ha
Slide 12: Section 2 – Gensource Approach To Potash
TSXV: GSP AIM: GSP Click to2 edit Section Master title style – Gensource Approach To Potash To be interested in food but not food production is clearly absurd. - Wendell Berry 2023-03-02 gensourcepotash.ca 12
Slide 13: Potash with purpose starts with Gensource – Direct Supply Access
TSXV: GSP AIM: GSP Potash with purpose starts with Gensource – Direct Supply Access OUR VISION OUR MISSION OUR VALUES Achieve food security by Create a series of independent, The core priorities for Gensource supplying the world with a key scalable, and environmentally are integrity, openness and ma
Slide 14: Gensource's business model stands on 3 pillars
TSXV: GSP AIM: GSP Gensource's business model stands on 3 pillars TECHNICAL VERTICAL ADVANCEMENT INTEGRATION Construct clean, We streamline the supply scalable, efficient and chain by partnering with sustainable mines. Our the end-user – the production methods have agricultural producer. less impact
Slide 15: Our clean, efficient extraction and processing method
TSXV: GSP AIM: GSP Our clean, efficient extraction and processing method By using selective solution mining, we are deploying more efficient and environmentally prudent mining techniques. Gensource does not create salt tailings as a result of the extraction process gensourcepotash.ca 15
Slide 16: Indigenous partnerships within our community
TSXV: GSP AIM: GSP Indigenous partnerships within our community • We see vast opportunities in the decades ahead by We are all treaty people and believe our building mutually beneficial relationships with Aboriginal business should reflect the diversity of communities our operating communities • Our
Slide 17: Materially lower environmental impact compared to conventional extraction
TSXV: GSP Gensource aims to extract potash with a materially lower AIM: GSP environmental impact compared to conventional extraction methods Our planned selective extraction method injects a hot salt (NaCl) brine into horizontal caverns in the ore body, to selectively dissolve KCl leaving salt in pl
Slide 18: Section 3 – Tugaske Module
TSXV: GSP AIM: GSP Click to edit Master title Section 3 – Tugaske Module style Our approach is modular. Our goals are big. 2023-03-02 gensourcepotash.ca 18
Slide 19: Tugaske off-take with HELM
TSXV: GSP AIM: GSP Tugaske is designed to deliver straight to the end-user through off-take with HELM • Gensource has been working directly and transparently with our partner, HELM, since the start of the Tugaske of planned Tugaske Module Module production is − HELM and Gensource have completed an o
Slide 20: High quality asset
TSXV: GSP AIM: GSP High quality asset Massive potash deposit, readily available to support multiple modules of production N1 43-101 Compliant Resource 14.5 MMt Proved & Probable and 287 MMt Measured and Indicated • Located in south-central Saskatchewan, a potash-rich area, only 360 km north of the U
Slide 21: Capacity for multiple modules. 3M tonnes annual production
TSXV: GSP AIM: GSP Capacity for multiple modules. 3M tonnes annual production Tugaske gensourcepotash.ca
Slide 22: Tugaske module highlights
TSXV: GSP AIM: GSP Tugaske module highlights Designed minimum production of 250,000 metric tonne per annum of saleable MOP using the planned selective solution extraction method Technically and economically robust project Critical infrastructure already in place design • Located on or very close to
Slide 23: Located near the US-Canada border
TSXV: GSP AIM: GSP Located near the US-Canada border Our Target Market is Right in Our Backyard Five core regions account for 60% of total US muriate of potash (“MOP”) consumption EFFICIENT DELIVERY SYSTEM HELM’s fertilizer business is firmly established in key agricultural markets Tugaske, SK acros
Slide 24: Planned modular approach to develop all leased area
TSXV: GSP AIM: GSP Gensource’s planned modular approach is to develop all its leased area to produce up to 3M tonnes: a scalable and replicable method that is designed to have a lower carbon and physical footprint Gensource believes its methods will allow it to create a series of independent, scalab
Slide 25: Our modules are a fraction of a conventional mine footprint
TSXV: GSP AIM: GSP Our modules are a fraction of a conventional mine footprint Gensource Module Plant Site: ~ 400m x 400m (2 x 250ktpa) Traditional Potash Mine Footprint (in red) vs. Gensource Footprint (in green) Source: Google Earth image of Cory Potash Mine (Nutrien) 10 km from Saskatoon gensourc
Slide 26: Section 4 – Economics & Next Steps
TSXV: GSP AIM: GSP Click to edit Master title Section 4 – Economics & style Next Steps Our approach is modular. Our goals are big. 2023-03-02 gensourcepotash.ca 26
Slide 27: Tugaske anticipated to be a low-cost supplier
TSXV: GSP AIM: GSP Tugaske anticipated to be a low-cost supplier Average Retail Potash Price (Feb 2023) – US$742/tonne Tugaske Plant Forecasted Site Tugaske potash is Operating Costs expected to be C$85.08 /Tonne* delivered within the (During Sask PPT Holiday) lowest quartile cost of OPEX potash sol
Slide 28: Tugaske Project: Progress To Date
Tugaske Project: TSXV: GSP AIM: GSP Click to edit Master title style Progress To Date ✔ Land secured ✔ Bankable Feasibility Study finished ✔ Environmental approval received ✔ Development permit received ✔ Offtake secured ✔ Debt financing due diligence completed ✔ Debt financing approved ✔ Establishi
Slide 29: Growth pathway to becoming a million tpa producer
TSXV: GSP Growth pathway to becoming a 3 million tpa producer AIM: GSP $5,000 3,500,000 $4,500 3,000,000 Total Production Capacity (mtpa) $4,000 Revenue USD (millions) 6 $3,500 2,500,000 5 $3,000 2,000,000 $2,500 Project 4 1,500,000 $2,000 $1,500 Project 3 1,000,000 $1,000 Project 2 “Eyebrow” 500,00
Slide 30: The opportunity summarized
TSXV: GSP AIM: GSP The opportunity summarized ATTRACTIVE GLOBAL EFFICIENT EXTRACTION 10-YEAR OFF-TAKE POTASH DYNAMICS METHOD AGREEMENT SECURED OUR FIRST PROJECT IS EXPECTED SCALABLE, LOW- ROBUST FORECASTED ‘SHOVEL-READY’ COST PRODUCTION FINANCIAL RETURNS gensourcepotash.ca 30
Slide 31: Public market overview
TSXV: GSP AIM: GSP Public market overview Capitalization (C$ millions, except per share amounts) Share Price Performance (52 Weeks) Share Price C$ Share Price (as at March 1, 2023) $0.13 Volume Shares Outstanding (mm) 438.7 Market Capitalization $57.0M gensourcepotash.c 31 a
Slide 32: Contact Information
TSXV: GSP AIM: GSP Click to edit Master title style Contact Information Mike Ferguson, President & CEO mike@gensource.ca m. +1.306.291.8221 Rob Theoret, VP Finance & Business Development rob@gensource.ca m. +1.306.290.7325 gensourcepotash.ca 32
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