Aguia Resources Limited · ASX:AGR
Aguia Resources — Investor Presentation (September 2019)
36 slides from Aguia Resources's investor presentation, Sep 18, 2019
Slide 1: Phosphate and Copper Exploration and Resource Development in Southern Brazil
For personal use only PHOSPHATE AND COPPER EXPLORATION AND RESOURCE DEVELOPMENT IN SOUTHERN BRAZIL September 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: Brazilian Resource Company
Brazilian Resource São Luis Company Manaus For personal use only ASX listed - AGR Brasilia Lucena • Total land position 1,329 km2 (applied for Belo Horizonte Rio de Janeiro and granted) São Paulo Porto Alegre Phosphate assets advancing Três Estradas towards production • Operate in southern state of
Slide 4: New Strategic Direction
New Strategic Direction 100% new board following shareholder vote June For personal use only 2019 1. Reduce offshore administration costs 2. Advance phosphate to cashflow Study Direct Application Natural Fertilizers (DANF) a) Much lower capital b) Much faster route to markets via trial mining c) 4 p
Slide 5: Brazil is Open for Mining Investment
Brazil is Open for Mining Investment For personal use only “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”
Slide 6: Directors and Management Team
Directors and Management Team Name Role Experience For personal use only Fernando Technical Director & Ph D. 30-year geologist in South America. Vale, Falconbridge, BHP. Assembled portfolio in Tallarico Country Manager Brazil Brazil. Brazil Country Manager Luiz Clerot GM Phosphate Senior Geologist,
Slide 7: Rio Grande State – Targets & Projects
Rio Grande State – Targets & Projects For personal use only PASSO FEIA SEIVAL 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 7
Slide 8: Phosphate and Phosphate Assets
For personal use only PHOSPHATE and PHOSPHATE ASSETS
Slide 9: Phosphate Summary
Phosphate Summary For personal use only Strategy Phosphate • Tres Estrada Phosphate Project (TEPP) No local supply in southern near grant of LP (social / environmental license) after EIS / BFS in 20181 Brazil and nearby North • Offtake agreements and final effort ahead Uruguay and Argentina, and of
Slide 10: Direct Application Natural Fertilizer - DANF
Direct Application Natural Fertilizer - DANF For personal use only 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
Slide 11: Phosphate
Phosphate Phosphate essential for plants / animals For personal use only • Morocco (government via OCP) dominates with >70% global resources ▪ Reference price US$/tonne FOB Morocco ▪ OCP grade ~ 26% P2O5 ▪ Contains neglible contaminants • Most Phosphate is consumed after chemical processing into fer
Slide 12: Brazil Outpaces Global Demand Growth
Brazil Outpaces Global Demand Growth For personal use only 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 2010 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2011 2012 2013 2014 2015 2016 20
Slide 13: Brazil's Soil Requires Nutrients (Soybean example)
Brazil’s Soil Requires Nutrients (Soybean example) AREA PRODUCTION NPK NPK APPLICATION Yield COUNTRY For personal use only (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-Br
Slide 14: Brazil Phosphate Demand by Region
Brazil Phosphate Demand by Region 7 North & 6.5 Million Tonnes For personal use only Northeast 13% 6 5 Imports 4.6 4 Mt Midwest 39% Midwest has been the 3 engine of growth, but is >1,000 km from major ports so logistic costs 2 and delays complicate the fertilizer supply chain Southeast 18% Domestic
Slide 15: Domestic Producer Cost Advantage
Domestic Producer Cost Supplier of Phosphate Rock to Brazil Advantage Southern Brazil: For personal use only • 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 to shipping, demurr
Slide 16: Três Estradas Phosphate Project - TEPP
Três Estradas Phosphate Project - TEPP Open pit project, BFS1 completed March 2018, For personal use only awaiting permit (LP) • Phosphate present in rock as apatite (carbonatite) and can be sold as; and / or 1. DANF 2. Concentrated for sale as “Phosrock” to fertilizer plants • Low CAPEX, existing i
Slide 17: TEPP Advancing
TEPP Advancing For personal use only Successful final community consultation completed • Approval of Environmental Impact Assessment and granting of Preliminary License (LP) imminent • Confirmed +100MT Mineral Resource1 supports min 16-year life + additional 20 years of aglime production • BFS inclu
Slide 18: Três Estradas Mining Plan – Phosphate Rock (Phosrock)
Três Estradas Mining Plan – Phosphate Rock (Phosrock) Phase 1 Phase 2 Phase 3 For personal use only 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
Slide 19: Timeline and Key Milestones
Timeline and Key Milestones Três Estradas Project 2016 2017 2018 2019 2020 Future For personal use only Resource Exploration & Development Drilling to Complete JORC Resource Q3 2017 Permitting EIA-RIMA for Industrial Project Q3 2017 LP LI LO Environmental Permitting1 Q3 2019 Q2 2020 Q4 2020 Engineer
Slide 20: Phosphate Regional Targets
Phosphate Regional Targets Mato Grande For personal use only Santa Clara Joca Taveres Porteira 1See ASX release 9th December 2015, 2See ASX release 8th June 2016, 3See ASX release 16th January 2018 20
Slide 21: Mato Grande Phosphate Project - MGPP
Mato Grande Phosphate Project - MGPP Mato Grande For personal use only Trial mining license work FIDA Project underway • FIDA – large agricultural lime (Ag Lime) producer in Southern Brazil • Mato Grande Located within 500m of the FIDA limestone mine 21
Slide 22: Geology - Mato Grande
Geology - Mato Grande Mato Grande drill testing shows a deposit of significant scale and grade1 For personal use only Exploration Work Performed Drilling on Mato Grande • Aguia conducted an auger drilling program over Mato Grande carbonatite • 28/35 auger holes encountered mineralization • Historica
Slide 23: Joca Tavares Phosphate Project - JTPP
Joca Tavares Phosphate Project - JTPP Trial mining license work underway. For personal use only • 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 mo
Slide 24: Phosphate Target
Phosphate Target Santa Clara - SCPT Tera Santa - TSPT For personal use only • Option signed on 3,553 ha Santa Clara • Option signed on 4,500 ha Terra which includes 2km long geophysical Santa located adjacent to Três anomaly with the same pattern as Três Estradas, expanding footprint by 30% Estradas
Slide 25: Lucena Phosphate Project
LUCENA PHOSPHATE PROJECT Trial mining license work underway For personal use only 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 Trê
Slide 26: Copper and Copper Assets – Rio Grande Copper Belt
For personal use only COPPER AND COPPER ASSETS RIO GRANDE COPPER BELT
Slide 27: Copper Summary
Copper Summary Copper For personal use only • Strong demand from renewable energy + electric vehicles (copper in motors) Strategy Build land position – 5-year portfolio Establish core project – Andrade Conduct widespread exploration 6 copper targets identified • Conduct further geophysics to bes
Slide 28: Copper – Supply Deficit Looms
Copper – Supply Deficit Looms For personal use only 28
Slide 29: Rio Grande Copper Belt
Rio Grande Copper Belt For personal use only PASSO FEIA SEIVAL Passo Feio Copper Camaqua Conglomerates Note: See ASX releases 27th February 2018, 20th April 2018, 2nd August, 2018, 12th September, 2018, 28th February, 2019 and 19th March 2019 9km x 3km anomaly >4% copper in trenches 29
Slide 30: Rio Grande Copper Belt
Rio Grande Copper Belt • Tenements permitted 861 km2 For personal use only • Further > 400 km2 under application • Total footprint (assuming all applications approved 1,329 km2) • Mineralisation hosted in a 100km long x 60km wide belt with historical production • Geological environment prospective i
Slide 31: 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 For personal use only 2.55% copper from 63.63 metres including: ▪ 4.35 metres grading 3.57% copper from 65.80 metres ▪ 2.25 metres gradin
Slide 32: Corporate
For personal use only CORPORATE
Slide 33: Capital Structure
Capital Structure ASX Listed. Delisted from TSX 16 September 2019. For personal use only Security Number Notes Ordinary Shares 186 m Last raise A$2.5m at A$0:12 on 4 July 2019 Options 11.4 m Warrants 20.3 m Fully Diluted 217.7 m Undiluted Market Cap at $30 m A16c (12 Sept 2019) Fully Diluted Market
Slide 34: Key Brazil Permits
Key Brazil Permits Preliminary Installation Operation For personal use only 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
Slide 35: 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 @ 4.18% P2O5 and Inferred Resources of 21.8 Mt @ 3.67% P2O5 For personal use only The Lucen
Slide 36: Thank You
For personal use only Thank You Australia AGUIA Resources Ltd Level 5 126 Phillip Street Sydney NSW 2000 Australia +61 2 9299 9690 +61 2 9299 9629 www.aguiaresources.com.au info@aguiaresources.com.au
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