Aguia Resources Limited · ASX:AGR
Aguia Resources — Investor Presentation (November 2019)
41 slides from Aguia Resources's investor presentation, November 2019
Slide 1: Phosphate Development and Copper Exploration in Southern Brazil
PHOSPHATE DEVELOPMENT AND COPPER EXPLORATION IN SOUTHERN BRAZIL November 2019 AGUIA Resources Limited ASX: AGR
Slide 2: Disclaimer
DISCLAIMER This document has been prepared as a summary only and does not contain all information about Aguia Resources Limited (the “Company”) assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company’s securiti
Slide 3: Introduction
INTRODUCTION
Slide 4: Brazilian Resource Company
BRAZILIAN RESOURCE São Luis COMPANY Manaus ASX listed - AGR Brasilia Lucena • Total land position 1,630 km2 (applied for and granted) phosphate and copper Belo Horizonte Phosphate assets advancing Rio de Janeiro São Paulo towards production • Três Estradas EIA Approved Porto Alegre Três Estradas Pre
Slide 5: New Strategic Direction
NEW STRATEGIC DIRECTION 100% new board following shareholder vote June 2019 Phosphate cashflows fund copper exploration and dividends 1. Move entire operation to Brazil and reduce offshore administration costs 2. Advance phosphate to cashflow Direct Application Natural Fertilizers (DANF) i. Much low
Slide 6: Rio Grande do Sul – Phosphate and Copper
RIO GRANDE DO SUL – PHOSPHATE AND COPPER PASSO FEIO 1 ASX release 27 February 2019 6
Slide 7: Phosphate Strategy
PHOSPHATE STRATEGY Strategy - DANF Phosphate • EIA for Três Estradas Phosphate Project (TEPP) approved • No local supply in • Preliminary License granted. BFS completed southern Brazil in 20181 • Growth in Uruguay, • Project Development Plan has commenced Argentina and Paraguay • Investigate Direct
Slide 8: Copper Strategy
COPPER STRATEGY Built land position – 5-year portfolio Establish core project – Andrade Conduct widespread exploration 6 copper targets identified • Conduct further geophysics to best define drill targets • Drill extensions to Andrade • Test copper targets for leaching to produce copper metal •
Slide 9: Capital Structure
CAPITAL STRUCTURE ASX Listed. Delisted from TSX 16 September 2019. Item Number Item Number Ordinary Shares 200.8m Options (12c to 72c) 30.2m ($19.8m) Share Price 52-week range 9c to 23c Fully Diluted 231.0m Market Capitalization Market Capitalization $36.2m $41.6m Undiluted at 18c Diluted at 18c Cas
Slide 10: Directors and Management Team
DIRECTORS AND MANAGEMENT TEAM Name Role Experience Ph D. 30-years geologist in South America. Vale, Falconbridge, BHP. Assembled Fernando Tallarico Managing Director portfolio in Brazil. Christine McGrath Non Executive Chairman 30-year international commercial lawyer 30-year geologist, recently Glob
Slide 11: Brazil Is Open for Mining Investment
BRAZIL IS OPEN FOR MINING INVESTMENT “In the economy we will bring the mark of trust, national interest, free market and efficiency. Confidence that contracts and properties will be respected.”* Brazil Agriculture Industry President Jair Bolsonaro • 29% of GDP • “A New Brazil” • 46% of exports • Pro
Slide 12: Brazil Is Back on Track for Massive Growth
BRAZIL IS BACK ON TRACK FOR MASSIVE GROWTH • Management team of ca. 25 University Chicago PhD’s known as “The Chicago Boys” • Lowest Inflation in the past 22 years • The current Interest Rate is the lowest in the country’s history Mr. Paulo Guedes, Brazil – PhD Economist at the University of Chicago
Slide 13: Phosphate and Phosphate Assets
PHOSPHATE and PHOSPHATE ASSETS
Slide 14: Rio Grande do Sul – Phosphate Projects
RIO GRANDE DO SUL – PHOSPHATE PROJECTS Regional geological map highlighting the Três Estradas and Joca Tavares carbonatites and the exploration targets: Santa Clara, Mato Grande, Porteira and Santa Ines. 1 ASX release 27 February 2019 14
Slide 15: Três Estradas Phosphate Project
TRÊS ESTRADAS PHOSPHATE PROJECT 1. EIA approved. Preliminary License (LP) awarded 2. Open pit project 3. BFS1 for Phosrock completed March 2018 4. Direct Application Natural Fertilizer (DANF) Development Plan Strategy for DANF is being developed Três Estradas now • Phosphate present in rock as apati
Slide 16: EIA Approved, Preliminary License Granted
EIA APPROVED PRELIMINARY LICENSE GRANTED Successful final community consultation completed • Environmental Impact Assessment approved and Preliminary License (LP) granted • BFS Confirmed +100Mt Mineral Resource1 supports 16-year mine life of Phosrock production + additional 20 years of aglime produc
Slide 17: Key Permits for Mining
KEY PERMITS FOR MINING Preliminary Installation Operation License (LP) License (LI) License (LO) • Most involved permit • Provides authorization to • Grant of Mining Concession milestone to obtain initiate construction by Mining and Energy • Entails location, social and • Obtain by: Ministry environ
Slide 18: Direct Application Natural Fertilizer - DANF
DIRECT APPLICATION NATURAL FERTILIZER - DANF DANF products compete with chemically derived fertilisers, but has distinct ethical advantages; • Natural organic product • Apply for organic certification ECOCERT • Environmental impact benefits Slow release; - Reduces groundwater contamination (eutrop
Slide 19: Três Estradas Phosrock
TRÊS ESTRADAS PHOSROCK Phase 1 Phase 2 Phase 3 Soft ore Hard ore Reclaimed from stockpile Higher Grade Saprolite Carbonatite Aglime • Mine high grade oxidized ore at • Mine lower grade carbonatite ore & • Reclaim stockpile of stored aglime surface produce aglime by-product for sale to local agricult
Slide 20: Schedule and Key Milestones
SCHEDULE AND KEY MILESTONES TRÊS ESTRADAS PROJECT 2016 2017 2018 2019 2020 Future Resource Exploration & Development Drilling to Complete JORC Resource Q3 2017 Permitting EIA-RIMA for Industrial Project Q3 2017 LP LI LO Environmental Permitting1 Q4 2019 Q4 2020 Q3 2021 Engineering Preliminary Econom
Slide 21: Phosphate Regional Targets
PHOSPHATE REGIONAL TARGETS Mato Grande Joca Taveres Santa Clara 1See ASX release 9th December 2015, 2See ASX release 8th June 2016, 3See ASX release 16th January 2018 21
Slide 22: Mato Grande Phosphate Project
MATO GRANDE PHOSPHATE PROJECT FIDA Project Mato Grande Trial mining license work underway • FIDA – large agricultural lime (Ag Lime) producer in Southern Brazil • Mato Grande Located within 500m of the FIDA limestone mine • Local demand for product which can be serviced by existing infrastructure 22
Slide 23: Mato Grande Geology
MATO GRANDE GEOLOGY Mato Grande drill testing shows a deposit of significant scale and grade1 Exploration Work Performed Drilling on Mato Grande • Aguia conducted an auger drilling program over Mato Grande carbonatite • 28/35 auger holes encountered mineralization • Historical data indicated up to 8
Slide 24: Joca Tavares Phosphate Project
JOCA TAVARES PHOSPHATE PROJECT Trial mining license work underway • JORC Resource of 2.75 mt (oxide plus hard rock)1 • Located 35km from TEPP • Containing 430,000t of soft ore to be trucked to TEPP for blending and life extension • Hard ore of 2.32 mt may be mined in more favourable phosphate enviro
Slide 25: Lucena Phosphate Project
LUCENA PHOSPHATE PROJECT Trial mining license work underway São Luis • JORC Resource of 55.1 Mt1 Manaus • Located in Paraiba State, NE Brazil Lucena • Sugarcane region – needy for Brasilia phosphate • DANF studies planned Belo Horizonte Rio de Janeiro São Paulo Porto Alegre Três Estradas Lucena Proj
Slide 26: Copper and Copper Assets – Rio Grande Copper Belt
COPPER AND COPPER ASSETS RIO GRANDE COPPER BELT
Slide 27: Rio Grande Copper Belt
RIO GRANDE COPPER BELT Primavera Carlota Canhada Passo Feio Copper Camaqua Conglomerates Note: See ASX releases 27th February 2018, 20th April 9km x 3km anomaly 2018, 2nd August, 2018, 12th September, 2018, >4% copper in trenches 28th February, 2019 and 19th March 2019 Seival 27
Slide 28: Andrade Copper Project
ANDRADE COPPER PROJECT • Recent drilling returned interval of 28.77 metres grading 1.83% copper from 63.63 metres with a higher-grade zone of 19.39 metres grading 2.55% copper from 63.63 metres including: 4.35 metres grading 3.57% copper from 65.80 metres 2.25 metres grading 5.40% copper from 76
Slide 29: Andrade Copper Project
ANDRADE COPPER PROJECT • Combined 8km strike end to end Andrade to Primavera Mineralisation occurs along the contact between metavolcanics rocks at the footwall and younger sedimentary rocks on the hanging wall, defining a prospective trend of some 3.8 km between Andrade and Primavera. Note: See ASX
Slide 30: Rio Grande Copper Belt
RIO GRANDE COPPER BELT • Mineralisation hosted in a 100km long x 60km wide belt with historical production • Tenements permitted 861 km2 • Further > 400 km2 under application • Geological environment prospective including; past producing Camaqua copper mines - Iron Oxide Copper Gold (IOCG) Andrade
Slide 31: Investment Highlights
INVESTMENT HIGHLIGHTS Near-term phosphate production to fund copper drilling Commodity Projects Management Shareholders Growth Três Estradas Major Fernando Tallarico Três Estradas Phosphate Phosphate No Local Supply +100mt Resource and team shareholder 12-months from Assembled portfolio development
Slide 32: Competent Persons Statement
COMPETENT PERSONS STATEMENT The Três Estradas Phosphate Project has a current JORC/43-101 compliant mineral resource which includes Measured Resources of 36 Mt grading 4.01% P2O5. Indicated Resources of 47 Mt at 4.18% P2O5 and Inferred Resources of 21.8 Mt at 3.67% P2O5 The Lucena Phosphate Project
Slide 33: Thank You
THANK YOU Australia AGUIA Resources Limited Level 12 680 George Street Sydney NSW 2000 Australia +61 2 9375 7974 +61 2 9287 0350 www.aguiaresources.com.au sross@aguiaresources.com.au
Slide 34: Appendix
APPENDIX
Slide 35: Regional Phosphate Targets
REGIONAL PHOSPHATE TARGETS Santa Clara - SCPT Terra Santa - TSPT • Option signed on 3,553 ha Santa Clara • Option signed on 4,500 ha Terra Santa which includes 2km long geophysical located adjacent to Três Estradas, anomaly with the same pattern as Três expanding footprint by 30%2 Estradas1 • 2 x US
Slide 36: International Phosphate
INTERNATIONAL PHOSPHATE Phosphate essential for plants / animals • Morocco (government via OCP) dominates with >70% global resources Reference price US$/tonne FOB Morocco OCP grade ~ 26% P2O5 Contains negligible contaminants • Most Phosphate is consumed after chemical processing into fertilize
Slide 37: Brazil Outpaces Global Demand for Phosphate
BRAZIL OUTPACES GLOBAL DEMAND FOR PHOSPHATE Brazilian Phosphate Demand 8 7 • Demand > 2x since 2000 CAGR: 5.7% • Due to increased: 6 Harvested land area 5 Fertilizer application rates 4 3 2 1 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Mt Phos
Slide 38: Brazil Phosphate Demand by Region
BRAZIL PHOPSHATE DEMAND BY REGION 7 North & 6.5 Million Tonnes Northeast 13% 6 5 4.6 Imports 4 Mt Midwest 39% 3 Midwest has been the engine of growth, but is >1,000 km from major ports so logistic costs 2 and delays complicate the fertilizer supply chain Southeast 18% 1 1.9 Domestic 0 South 30% Sout
Slide 39: Brazil's Soil Requires Nutrients (Soybeans)
BRAZIL’S SOIL REQUIRES NUTRIENTS (SOYBEANS) AREA PRODUCTION NPK NPK APPLICATION Yield COUNTRY (Mil Ha) (Mt) (Mt) (Kg/Ha) (t/Ha) Brazil 35 120 5.60 160 3.40 USA 36 120 2.11 60 3.33 Argentina 17 38 .27 14 2.32 China 7.9 14 .50 60 1.81 World 119 337 9.74 82 2.72 World ex-Brazil 84 217 4.14 49 2.58 Braz
Slide 40: Domestic Producer Cost Advantage
DOMESTIC PRODUCER Supplier of Phosphate Rock to Brazil COST ADVANTAGE Southern Brazil: • 100% reliant on phosphate imports • No mines planned other than AGR • Currently 1.2 to1.5 Mt of phosphate imports annually • Aguia - sustained cost advantage due 45 days from Morocco to shipping, demurrage, insu
Slide 41: Copper Supply Deficit Looms
COPPER SUPPLY DEFICIT LOOMS 41
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