Avenira Limited · ASX:AEV
Avenira — Minemakers — Investor Presentation (June 2015)
33 slides from Avenira's investor presentation, Jun 16, 2015
Slide 1: Investor Update – Exchange Release
ABN 48 116 296 541 EXCHANGE RELEASE INVESTOR UPDATE 16 June 2015 Minemakers Limited (ASX: MAK) is pleased to provide investors with the following updated investor presentation. The presentation is also located on the home page of the Company’s website. Furthermore, the Company provides the opportuni
Slide 2: Baobab Rock Phosphate Project
Baobab Rock Phosphate Project June 2015 ASX: MAK | TSX: MAK
Slide 3: Important Information
Important Information Disclaimer This presentation is neither a prospectus nor an offer of securities for subscription or sale in any jurisdiction. This presentation is not a securities recommendation and does not constitute financial product or investment advice. The information contained in this p
Slide 4: Corporate Strategy
Corporate Strategy To become a major contributor to the world nutrient market via the development of world class rock phosphate projects 3
Slide 5: Why Phosphate?
Why Phosphate? Phosphate is a finite natural resource essential in the manufacture of fertilisers for crops and animal growth Global food production forecast to double by 2050 due to population growth and increased per capita consumption Increased farming intensity required due to limited arab
Slide 6: Baobab Project Acquisition Highlights
Baobab Project Acquisition Highlights Minemakers has agreed to acquire the Baobab Rock Phosphate Project located in the Republic of Senegal from Agrifos Partners LLC. Subject to shareholder approval in August, 2015. Baobab is planned to be a low-cost, low-capex rock phosphate project Simple mini
Slide 7: Baobab Project Acquisition
Baobab Project Acquisition Transaction Terms: 100% scrip based consideration 100 million shares 80 million unlisted options (ex A$0.25 and 4-year term) 80 million contingent share rights, vesting upon achieving significant development of the project Subject to shareholder approval at Gener
Slide 8: Baobab Project
Baobab Project Single exploration permit area of 1,553km 2 Port of Dakar Sedimentary rock phosphate mineralisation Circa A$7 million spent on project to date by vendor, including approximately 14,500m of drilling (359 air-core and 36 diamond holes) in the Gadde Bissik area (90km2) Expected t
Slide 9: Maiden Inferred Resource
Maiden Inferred Resource Refer ASX Release 11 May 2015 for full disclosure Maiden Inferred Mineral Resource of 68 million tonnes @ 22% P2O5 at an 18% P2O5 cut-off for the Gadde Bissik prospect, part of the wider Baobab Project Inferred Resource of 25 million tonnes @ 23% P2O5 estimated within
Slide 10: Baobab Project Progress - June, 2015
Baobab Project Progress - June, 2015 Task Status Exploration Target Complete GEOLOGY Inferred Resource Complete Indicated Resource Infill drilling underway Contract mining and crushing Initial MOU established Design & Engineering estimates Wet screening PROJECT advanced Transport MOU in Progress Por
Slide 11: The Republic of Senegal
The Republic of Senegal Overview One of Africa’s most stable and successful democracies (IMF 2010) with a stable and investor friendly social and political environment Population of circa 13.5 million (2013 estimate) Substantial progress in combating poverty, improving social infrastructure an
Slide 12: Baobab Milestones: 2015-2016
Baobab Milestones: 2015-2016 2015 2016 Resource Development Mining Permit Met Testwork Engineering Environmental Permit Community Relocation Agreement Preliminary Feasibility Study Shareholder Approval Large Scale Bulk Sampling Earliest Potential Production 11
Slide 13: Wonarah Project – Northern Territory
Wonarah Project – Northern Territory Project 100% owned by Minemakers One of Australia’s largest JORC and NI43-101 compliant phosphate resource Measured + Indicated Resource 300Mt @ 18.2% P2O5 (10% cut-off) Inferred Resource 542Mt @ 18.0% P2O5 (10% cut-off) Excellent installed infrastructu
Slide 14: Improved Hard Process (IHP)
Improved Hard Process (IHP) Advanced downstream process aimed at transforming low grade rock phosphate into high value superphosphoric acid (SPA) with substantial cost benefits Additional benefits from improved environmental outcomes Significant benefits over traditional wet-acid process SPA
Slide 15: 4 Stage Growth Strategy
4 Stage Growth Strategy Stage 4 Stage 3 • Leverage IHP Technology to produce downstream, high margin SPA product to Stage 2 • Drilling in 2014 indicates mineralisation up to 30km improve profitability east of SMP area • Applications for both Stage 1 • Progress high priority infill drill targets prox
Slide 16: Investment Thesis
Investment Thesis Potential near-term rock phosphate production from Baobab Project Planning low capex, low opex, early cash flow Project is scalable to leverage exploration potential and infrastructure Initial metallurgical test work demonstrates significant upgrade potential using simple w
Slide 17: Cliff Lawrenson – Managing Director
Cliff Lawrenson – Managing Director email: frontdesk@minemakers.com.au Telephone: +61 8 9264 7000 www.minemakers.com.au 16
Slide 18: Appendix A: Geology plans and cross-section
Appendix A: Geology plans and cross-section 17
Slide 19: Gadde Bissik area drill plan
Gadde Bissik area drill plan 18
Slide 20: Gadde Bissik – mineralised domain thickness
Gadde Bissik – mineralised domain thickness 19
Slide 21: Gadde Bissik – example geological cross section
Gadde Bissik – example geological cross section Gadde Bissik East 340,500 mE, vertical exaggeration 20:1 20
Slide 22: SMP area – drill status plan with modelling
SMP area – drill status plan with modelling Modelling is for indicative purposes only and further infill drilling is likely to alter the current interpretation to some degree 21
Slide 23: Appendix B: Baobab Acquisition Agreement
Appendix B: Baobab Acquisition Agreement 22
Slide 24: Acquisition Agreement
Acquisition Agreement Key Terms Description • To acquire the issued shares of Baobab Fertilizer Africa, 100% owner of Baobab Transaction Mining and Chemicals Corporation SA (BMCC) • 100,000,000 ordinary Minemakers shares • 80,000,000 options over unissued Minemakers shares ─ Term 4 years ─ Exercise
Slide 25: Acquisition Agreement (cont’d)
Acquisition Agreement (cont’d) Key Terms Description • The grant of the IHP License to BMCC for Senegal • Relevant Ministerial consent and/or approvals for the transfer of the ownership of entities and in relation to applicable permits, as necessary • The grant of a Small Mining Permit Key Condition
Slide 26: Appendix C: Phosphate Information
Appendix C: Phosphate Information 25
Slide 27: Developing Countries – Food & Nutrition Security
Food & Nutrition Security Fertilisers provide essential nutrients to soils, livestock & people resulting in more food, better nutrition and healthier lives. WORLD POPULATION GROWTH ARABLE LAND DECLINE PER CAPITA INCREASED PER CAPITA CONSUMPTION 3,000 Developing Countries Calories 2,572 2050 Per Calo
Slide 28: Phosphates – No artificial substitute & a finite resource
Phosphates – No artificial substitute & a finite resource • A strategic natural resource essential to crop GLOBAL ROCK PHOSPHATE CONCENTRATE MARKET production and animal growth • Mined, usually from surface 250 210 • Raw material used in the manufacture of 200 commercial fertilizers • Middle East an
Slide 29: Global Fertilizer Market
Global Fertilizer Market Deficiency of macro-nutrients - Nitrogen, Phosphorous & Potassium (NPK) – in majority of N Nitrogen Phosphate soils 61% 23% Global nutrient sales of 230 million tonnes in 2012 By 2015 the annual global fertiliser market is forecast to be worth US$172 billion, +32% sinc
Slide 30: Why Fertiliser?
Why Fertiliser? World Fertiliser Facts NPK – Macro Nutrient Basics Global nutrient sales to reach 255m tonnes by 2017 Nitrogen (N) - fulfils plant’s yield potential Fertiliser industry is investing US$150bn between 2012 and Converted to amino acids as the building block for protein 2017 to ful
Slide 31: Phosphate Reserves and Production
Phosphate Reserves and Production • More than 85% of global phosphate reserves are located in Africa and the Middle East • Global production in 2014 was 220 million tonnes • Chinese production has traditionally been for the domestic market. However, China has become a meaningful exporter despite exp
Slide 32: Rock Phosphate Commodity Price
100 150 200 250 300 350 400 450 500 0 50 Month Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Source: IndexMundi, industry research Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Rock Phosphate Commodity Price Mar-11 Jun-11 Se
Slide 33: Relative Commodity Performance 2014
Relative Commodity Performance 2014 Rock Phosphate Thermal Coal Natural Gas Crude Oil Iron Ore 125 100 INDEX 75 50 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Source: IndexMundi and Bloomberg 32