Reward Minerals Ltd · ASX:RWD
Reward Minerals — Investor Presentation (November 2015)
18 slides from Reward Minerals's investor presentation, November 2015
Slide 1: Significant SOP Resource at LD – Roadshow Presentation
Significant SOP Resource at LD Roadshow Presentation November 2015 ASX | RWD
Slide 2: Forward Looking Statements & Disclaimer
FORWARD LOOKING STATEMENTS & DISCLAIMER This document includes forward-looking statements. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should”, and similar expressions are forward-looking statements. Although RWD believes that t
Slide 3: Highlights
HIGHLIGHTS The Commodity ► SOP is a premium fertilizer in supply shortage and currently ~US$700+/t ► Primary (natural) resources are scarce but provide significant operating cost benefits The LD Project (100% Reward) ► Pure-play Sulfate of Potash (SOP) Company with Projects in Western Australia ► 56
Slide 4: Corporate Overview
CORPORATE OVERVIEW Capital Structure 27 Nov 2015 ASX:RWD Price History (1 Year) Ordinary Shares on Issue 119.6m Options on Issue ($0.25 – $0.50) 23.0m Share Price $0.66 Undiluted Market Capitalisation $79m Cash & Equivalents1 A$6.7m Undiluted Enterprise Value A$72m 1. Cash based on cash as at 30/09/
Slide 5: Experienced Board & Management
EXPERIENCED BOARD & MANAGEMENT Colin McCavana – Non-Executive Director, Chairman Daniel Tenardi – Projects Director - 30+ years experience in mining and earthmoving industries - 25+ years mining experience for various organisations including Alcoa, including the management, acquisition and developme
Slide 6: SOP Overview
SOP OVERVIEW SOP is a premium Potash fertiliser 2014 Global Potash Consumption ► Sulfate of Potash – SOP, K2SO4 ► LD SOP product ready for crop application ► Contains 44.8% Potassium & 55.2% Sulfate (MOP: 54% K, 46% Cl) ► Potassium increases yields, water retention and disease resistance 1,200 ► Sul
Slide 7: Potash Growth Drivers
POTASH GROWTH DRIVERS 80 8 Demand is driven by Global Midyear Population (billions) 70 7 ► Increasing population Potash Demand (Mt) 60 6 ► Decreasing arable land 50 5 40 4 ► Changing appetites / growing middleclass 30 3 ► Salinity / disease / global warming 20 2 1981 1985 1989 1993 1997 2001 2005 20
Slide 8: SOP Production
SOP PRODUCTION Global SOP production >100ktpa per project Yara Kokkola – 200ktpa Compass Minerals SOP (Mannheim) Great Salt Lake – 300ktpa K+S SOP (Brine) Aktiengesellschaft– 1,200ktpa Xinjiang Luobupo SOP (Salts/Mannheim) Lop Nur – 1,300ktpa SOP (Brine) Qingshang Shandong – 600ktpa SOP (M
Slide 9: Global SOP Cost Curve (Mine Gate)
GLOBAL SOP COST CURVE (MINE GATE) Primary (brine) SOP deposits ensure low production costs 500 450 400 Estimated Operating Cost / t (US$)1 350 Reward Estimated 300 Cost of Production2 250 200 150 100 50 0 SDIC Mannheim Minerals SQM K+S Kali Rusal Luobopo Compass Compass Estimated Annual Production (
Slide 10: LD SOP Project (100% Owned)
LD SOP PROJECT (100% OWNED) ► Significant brine SOP Mineral Resource of 564Mt grading 13.7kg/m3 ► Resource is from surface and remains open in all directions ► Extensive testwork indicates that SOP can be recovered from LD brine via established processes ► Excellent climate for brine SOP production
Slide 11: Globally Significant High Grade SOP Resource
GLOBALLY SIGNIFICANT HIGH GRADE SOP RESOURCE ► Mineral Resource of 564Mt of Avg. Avg. Brine Brine SOP SOP Mineral Category Thickness Volume Porosity Volume Grade Resource SOP grading 13.7kg/m3 Mineral Resource Estimate Outside of Exclusion Zone ► Resource contained in 1,241km2 Indicated 67m 48bm3 53
Slide 12: LD Project Production Process
LD PROJECT PRODUCTION PROCESS Well-established process - harvested salt goes through a milling, conversion and crystallization process - SOP ready for crop application Total Capex A$320M (US$256M) FOB Opex Ex-Works Opex A$328/t (US$262/t) A$204/t (US$163/t) 12
Slide 13: LD Scoping Study – Key Metrics
LD SCOPING STUDY – KEY METRICS 1,200 Total Project Capex - Bar Chart 1,000 800 ► Capital cost estimate of A$320M (US$256M) for a 400ktpa operation (US$M) 600 400 ► Pre-Tax NPV10 of A$534M 200 ► Pre-Tax IRR of 37% - Reward EPM South Boulder Allana IC Potash Potash Ridge ► Annual EBITDA A$154M (full L
Slide 14: LD Scoping Study Capital & Operating Costs
LD SCOPING STUDY CAPITAL & OPERATING COSTS Project Studies have significantly progressed since the Scoping Study Capital Cost Estimates A$M US$M Status Road Upgrades & Related 55.9 44.7 - Road survey completed, detailed design and costing underway Infrastructure Earthworks, Evaporation Ponds & - Min
Slide 15: LD Project Access
LD PROJECT ACCESS ► Talawana road survey completed and detailed design and costing underway ► Available haulage options being assessed ► Positive discussions with Port Hedland and Midwest Ports continuing 15
Slide 16: LD Project Timeline
LD PROJECT TIMELINE Reward is focused on de-risking the LD Project as it moves toward completion of the Feasibility Study 2016 2017 Activity Q1 Q2 Q3 Q4 Q1 Q2 LD Resource Drilling a Resource Update a Bore Drilling and Pumping Pilot Ponds Scoping Study a Pre-Feasibility Study Feasibility Study Mining
Slide 17: Competent Person Statement
COMPETENT PERSON STATEMENT The information in this presentation that relates to Mineral Resources or Ore Reserves is based on information compiled by Mr Carel van der Westhuizen, a Competent Person who is a Member of The Australian Institute of Geoscientists, a Certified Environmental Practitioner (
Slide 18: Regional Projects
REGIONAL PROJECTS Reward has a number of highly prospective pipeline projects Overview of Regional Projects Karly Project Exploration Licences and Projects Dora Project Level of Access Applications Lake Auld Project Great Sandy Desert LD testwork results and Location Production Process Western Austr
Reward Minerals — Investor Presentation (November 2015) on 6ix