Agrimin Limited · ASX:AMN
Agrimin — Investor Presentation (September 2020)
36 slides from Agrimin's investor presentation, Sep 21, 2020
Slide 1: Investor Presentation – September 2020
Agrimin Limited | ABN 15 122 162 396 ASX Code: AMN 2C Loch Street Nedlands, Western Australia 6009 ASX Release T: +61 8 9389 5363 21 September 2020 E: admin@agrimin.com.au | W: www.agrimin.com.au INVESTOR PRESENTATION – SEPTEMBER 2020 Agrimin Limited (ASX: AMN) (“Agrimin” or “the Company”) is please
Slide 2: Investor Presentation | September 2020
Investor Presentation | September 2020 ABN 15 122 162 396 ASX Code: AMN
Slide 3: Important Notices and Disclaimers
Important Notices and Disclaimers Nature of Document Competent Person Statements This presentation has been prepared as a summary only, and does not contain all information about Agrimin Limited’s The information in this presentation that relates to Exploration Results for the Mackay Potash Project
Slide 4: Premium quality SOP, global food security, important SOP supply
1 Premium quality sulphate of potash (SOP) Our projects will produce high-grade, water-soluble SOP essential for crops such as fruits and vegetables 2 Helping to achieve global food security SOP will play a critical role in improving crop yields for farmers of developing countries in Asia Pacific 3
Slide 5: Environmental, Social and Governance
Environmental, Social and Governance We are committed to operating in alignment with the United Nations Sustainable Development Goals Safety The safety and well-being of our people and the communities in which we operate is our paramount focus. Environment We are committed to caring for the natural
Slide 6: Mackay Potash Project
Mackay Potash Project 100%-owned by Agrimin Computer-generated imagery of Agrimin’s proposed processing plant. Investor Presentation | Page 5
Slide 7: Tier 1 Project in the World's Best Mining Jurisdiction
Tier 1 Project in the World’s Best Mining Jurisdiction1 The flagship Mackay Potash Project is set to be the world’s lowest cost SOP producer Project Map o The Mackay Potash Project is the lowest cost, longest life, largest and most scalable SOP asset being developed outside of Africa o Definitive Fe
Slide 8: Lake Mackay is in a Class of its Own
Lake Mackay is in a Class of its Own The Mackay Potash Project is validated as Australia’s most strategic and valuable SOP asset Ore Reserves for Australian SOP Projects1 o Lake Mackay is the largest SOP-bearing salt lake in Australia covering an area of approximately 3,500km2 20.0Mt Probable Ore Re
Slide 9: Typical Bulk Commodity Project
Typical Bulk Commodity Project Four key project components including the mine, processing plant, logistics chain and export facility Schematic of the Mackay Potash Project o Brine will be extracted from Lake Mackay using trenches and transferred into on-lake solar evaporation ponds o Potash salts th
Slide 10: Total Ore Reserve
1. Total Ore Reserve comprises a Proved Ore Reserve of 3.7Mt and a Probable Ore Reserve of 16.3Mt. 2. Refer to the ASX Release on 21 July 2020 for full Definitive Feasibility Study details. All material assumptions underpinning the production target and forecast financial information derived from th
Slide 11: Price Outlook
Price Outlook Price stability bolsters the investment case for the large-scale, long-life Mackay Potash Project Historical SOP Prices for 2010 to 2020 (US$/t)1 o Agrimin’s high-grade, water-soluble SOP product can compete 800 strongly against existing SOP products in the market 700 600 o DFS price f
Slide 12: Targeting the World's Lowest Cost SOP Production
Targeting the World’s Lowest Cost SOP Production Primary brine producers have a clear cost advantage Global SOP Cash Cost Curve (US$/t FOB)1 o Agrimin to be the world’s lowest cost supplier of seaborne 450 SOP once in production 400 350 o Large portion of global SOP production relies on the high 300
Slide 13: Exceptional Cash Flow Margin
Exceptional Cash Flow Margin A long-life project that can be profitable though the commodity cycle Cash Flow Margin Per Unit of SOP Production (US$/t) o Lowest quartile cash costs are driven by: 600 o Economies of scale o Low-cost brine extraction via trenches and gravity flow 500 o Innovative wet h
Slide 14: A Globally Significant Potash Asset
A Globally Significant Potash Asset Mackay Potash Project is the largest SOP development project outside of Africa Country Forecast Annual SOP Production Rates for Projects at Feasibility Stage1 Company Dallol 600ktpa Colluli 472ktpa2 Lake Mackay 450ktpa3 Lake Disappointment 407ktpa Lake Sevier 338k
Slide 15: DFS Set a New Industry Standard
DFS Set a New Industry Standard More than $40m invested to date o The industry's most extensive fieldwork programs have included: o 2 years of long-term trench pumping tests at 22 representative sites across Lake Mackay o 1½ year pilot evaporation trial on Lake Mackay with >100t of potash salts harv
Slide 16: Industry-Leading Innovation
Industry-Leading Innovation Agrimin’s SOP will have one of the lowest carbon footprints of any major macro-nutrient fertiliser product o Raw potash salts will be fed directly to the processing plant from wet harvesters via pipelines o Wet harvesters will deliver major economic benefits, including: o
Slide 17: Conventional Processing Plant
Conventional Processing Plant Processing plant designed and costed by Primero Group, an experienced WA resources contractor Simplified SOP Process Flow Diagram o The processing plant is designed for steady-state SOP production of 450ktpa1 grading 52% K2O, with the process design and flowsheets compl
Slide 18: Dedicated Haulage Solution
Dedicated Haulage Solution Alliance with a proven bulk logistics operator provides critical haulage capability o Newhaul Bulk is a JV between Agrimin and trucking specialist Craig Mitchell to deliver haulage services for the Mackay Potash Project1 o JV will deliver major cost savings and reduce risk
Slide 19: Highly Competitive Logistic Costs
Highly Competitive Logistic Costs Fully integrated logistics chain will minimise re-handling o Agrimin’s tailor-made logistics solution can deliver the industry’s lowest transportation cost o Road trains will deliver SOP directly from the processing plant to an integrated storage and shiploading fac
Slide 20: Fully Integrated Port Facility
Fully Integrated Port Facility Wyndham port facility completes Agrimin’s low-cost, mine-to-ship logistics solution o Mackay Potash Project comprises strategic and scalable export infrastructure to be developed at Wyndham Port o Agrimin’s waterfront freehold property will host a dedicated SOP storage
Slide 21: Premium Product Quality
Premium Product Quality DFS pilot tests produced high-grade, water-soluble SOP product o SOP product samples from the Mackay Potash Project have consistently exceeded industry benchmarks (>52% K2O) o High quality SOP specifications are based on a conventional flowsheet and supported by extensive pil
Slide 22: The Premium Potash Fertiliser
The Premium Potash Fertiliser SOP is essential for high value crops and trades at a substantial price premium to MOP Muriate of Potash (MOP) Sulphate of Potash (SOP) o Standard source of Current Price1 Current Price2 o Chloride-free source of potassium and contains US$220/t US$400-550/t potassium an
Slide 23: Next Door to Key Growth Markets
Next Door to Key Growth Markets SOP will play a critical role in improving crop yields and achieving food security in South and Southeast Asia o Agrimin’s planned large-scale seaborne supply of SOP is “India, Indonesia, Malaysia and Brazil ideally located to take advantage of key SOP growth markets
Slide 24: Indicative Development Timeline
Indicative Development Timeline Pathway to production is well-advanced with a current focus on off-take, project funding and approvals 2020 2021 2022 2023 2024 Today Decision To Mine DFS Off-take & Funding Commence Commence Commence Construction Pond Filling SOP Production Regulatory Approvals FEED
Slide 25: Strong Indigenous Engagement
Strong Indigenous Engagement Landmark Native Title Agreement in place o Native Title Agreement signed in 2017 with the Kiwirrkurra People, the native title holders of the land at the Mackay Potash Project1 o Continued project support from Traditional Owners of the Kiwirrkurra lands since 2014 o Agri
Slide 26: Strategic, Social and Economic Benefits
Strategic, Social and Economic Benefits A project of national significance o The Mackay Potash Project was awarded Major Project Status by the Australian Federal Government in May 2020 o The project will make an important contribution through employment, economic infrastructure and $350m annually in
Slide 27: Lake Auld Potash Project
Lake Auld Potash Project 100%-owned by Agrimin Investor Presentation | Page 26
Slide 28: Lake Auld Potash Project Overview
Lake Auld Potash Project Overview Low cost entry into Australia’s highest grade SOP exploration project Project Map o Located in Western Australia, 640km by road south-east of Port Hedland, making it the closest potash project to an operating port in Australia o Land Access and Mineral Exploration A
Slide 29: Exceptionally High-Grade SOP Brine
Exceptionally High-Grade SOP Brine Initial project studies are focused on Agrimin’s recently acquired granted tenement Lake Auld Potash Project Map o Granted tenement covers a prospective lakebed area of 108km2 across the northern half of Lake Auld o Historical brine sampling on Lake Auld returned h
Slide 30: A Significant SOP Project in the Making
A Significant SOP Project in the Making Agrimin has successfully consolidated tenure across the highly prospective Canning Palaeovalley Canning Palaeovalley Map o Agrimin’s tenure includes >250km of strike length from Lake Auld to Percival Lakes, covering the most prospective portion of the Canning
Slide 31: Set to be the world's lowest cost SOP producer with a 40 year life
Set to be the world’s lowest cost SOP producer with a 40 year life Exceptional economics and high cash flow margin to underpin the delivery of project funding 20 World-class SOP Ore Reserve located in the MILLION TONNES world’s best mining jurisdiction Premium SOP product quality to drive strong cus
Slide 32: Office Contact, Investor Relations, Media Contact
ABN 15 122 162 396 Office Contact: Investor Relations: Media Contact: 2C Loch Street Mark Savich Michael Vaughan Nedlands, WA 6009, Australia Chief Executive Officer Fivemark Partners T: +61 8 9389 5363 T: +61 8 9389 5363 T: +61 422 602 720 E: admin@agrimin.com.au E: msavich@agrimin.com.au E: michae
Slide 33: Appendix 1. Corporate Information
Appendix 1. Corporate Information Capital Structure (as at 15 September 2020) Board of Directors ASX Code AMN Mark Savich Chief Executive Officer Share Price $0.58 Richard Seville Non-Executive Chairperson Shares 196.7m Brad Sampson Non-Executive Director Share Rights 8.0m Alec Pismiris Non-Executiv
Slide 34: Appendix 2. Mineral Resource & Ore Reserve
Appendix 2. Mineral Resource & Ore Reserve Drainable Porosity Mineral Resource Estimate1 (JORC Code 2012) Measured & Indicated Resource Aquifer Inferred Total Mineral Resource Measured Indicated Total Zone Volume (Mm3) K (mg/L) SOP (Mt) K (mg/L) SOP (Mt) K (mg/L) SOP (Mt) K (mg/L) SOP (Mt) K (mg/L)
Slide 35: Appendix 3. Information Sources – Production Rates
Appendix 3. Information Sources – Production Rates Company Source Source Date Comments Yara International ASA (OSL: YAR) Corporate release titled “Yara to Sign Ethiopian 7 November 2017 Production rate of 600ktpa of SOP is based on proposed Mining Agreement” development plan. Danakali Ltd (ASX: DNK)
Slide 36: Appendix 4. Information Sources – Ore Reserves
Appendix 4. Information Sources – Ore Reserves Project / Company Source Source Date Comments Lake Mackay ASX announcement titled “Agrimin to be the 21 July 2020 Total Ore Reserve of 20.0Mt of SOP comprises 3.7Mt in the Proved Agrimin Limited (ASX: AMN) World’s Lowest Cost SOP Producer” (page 6) cate