Gensource Potash Corp. · TSXV:GSP
Gensource Potash — Investor Presentation (July 2020)
32 slides from Gensource Potash's investor presentation, July 2020
Slide 1: Potash With Purpose
TSX: GSP Potash With Purpose Leading the way to sustainable food security. TSXV:GSP July 2020 gensourcepotash.ca
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements TSX: GSP This presentation does not constitute and offer to sell, will meet management’s expectations. Forward- advance and finance the project; changes in general or the solicitation for the offer to buy, the securities of looking statements include esti
Slide 3: Innovations guided by smallholder farmers (Bill Gates quote)
Click to edit Master title style TSX: GSP Innovations that are guided by smallholder farmers, adapted to local circumstances, and sustainable for the economy and environment will be necessary to ensure food security in the future. – Bill Gates 2020-07-06 gensourcepotash.ca 3
Slide 4: Potash with purpose starts with Gensource
Potash with purpose starts with Gensource TSX: GSP OUR VISION OUR MISSION OUR VALUES Achieve food security by supplying Create a series of independent, The core priorities for Gensource are the world with a key macronutrient scalable, and environmentally integrity, openness and at an affordable cost
Slide 5: The world needs potash. The planet needs Gensource
The world needs potash. The planet needs Gensource TSX: GSP 10 BILLION POTASH SUSTAINABLE Estimated 2050 world population Necessary component in fertilizer Unlike traditional potash companies, making food security an that helps farmers produce bigger Gensource utilizes innovative, ongoing challenge.
Slide 6: Sustainability should be our new standard for investing
Click to edit Master title style TSX: GSP We believe that sustainability should be our new standard for investing. - BlackRock 2020-07-06 gensourcepotash.ca 6
Slide 7: ESG? We call it business as usual
Click to edit Master title style TSX: GSP ESG? We call it business as usual. Conventional potash mining methods are not capital efficient and take a toll on both the environment and local communities. There’s also much room for improvement in the current product distribution methods. We believe that
Slide 8: ESG is in our DNA
ESG is in our DNA TSX: GSP ENVIRONMENTAL SOCIAL GOVERNANCE Smaller physical footprint for less Collaboration with communities Accurate and ethical in all business impact on air, water, and land with to create long-term employment practices to create transparency no salt tailings or brine ponds. with
Slide 9: Helping support UN's Sustainable Development Goals
Helping support UN’s Sustainable Development Goals TSX: GSP Our potash is used in Our innovative small- Vertically integrated We’re reducing our We partner with like- fertilizer to help farmers scale facilities are business operations carbon footprint and minded people who produce bigger and sustain
Slide 10: Fertilizer Canada quote on fertilizer industry
Click to edit Master title style TSX: GSP This widespread availability and use of fertilizers was arguably the industrial revolution’s single most important innovation for feeding the growing population. Today, the fertilizer industry is still recognized as an indispensible component in meeting the
Slide 11: Our modules are small. Our goals are big.
Technical Click to innovation edit allows Gensource Master title style Our modules are small. TSX: GSP to create a series of independent, scalable and environmentally Our goals are big. sustainable potash production facilities in Saskatchewan and other jurisdictions in the world. Producing 250,000 –
Slide 12: A closed loop method with little environmental impact
A closed loop method with little environmental impact TSX: GSP Our selective extraction method injects a hot salt (NaCl) brine into horizontal caverns in the ore body, which selectively dissolves potash (KCl) leaving salt in place. The KCI-rich brine is then processed (KCI ‘drops out’ through coolin
Slide 13: The essence of strategy (Michael Porter quote)
Click to edit Master title style TSX: GSP The essence of strategy is choosing to perform activities differently than rivals do. – Dr. Michael Porter MONTE KALI, 300M TALL SALT TAILINGS PILE IN HERINGEN, GERMANY 2020-07-06 gensourcepotash.ca 13
Slide 14: Vertical integration? We call it common sense
Vertical integration? We call it common sense TSX: GSP We believe that vertical integration with the end-user, the agricultural producer, allows us to achieve optimal efficiency and value for all stakeholders. In order to facilitate a greater quantity of affordable potash arriving on the farms where
Slide 15: Ministry ruled no environmental assessment needed
Click to edit Master title style TSX: GSP The Saskatchewan Ministry of Environment ruled that Gensource Potash small scale module project development doesn’t need an environmental assessment. – CBC News 2020-07-06 gensourcepotash.ca 15
Slide 16: Unprecedented environmental approval
Unprecedented environmental approval TSX: GSP ‘NOT A DEVELOPMENT’ HISTORY IN THE MAKING IN THE NEWS The Saskatchewan Ministry of 1st potash project in Article: The Little Potash Mine That Environment designated Tugaske Saskatchewan’s history to Could Clear A Key Environmental project as ‘not a devel
Slide 17: A smaller carbon footprint was always part of our plan
Click to edit Master title style TSX: GSP A smaller carbon footprint was always part of our bigger plan. – Gensource 2020-07-06 gensourcepotash.ca 17
Slide 18: Tugaske Project Overview
Tugaske Project Overview TSX: GSP 250,000 - 300,000 metric tonne per annum modular potash project using the proven selective solution extraction method Low capital, low operating costs Key government approvals are in place Critical infrastructure is in place • Combining tested extraction methods wit
Slide 19: Potash-Rich Location
Click to edit Master Potash-Rich title style Location TSX: GSP • Located in Gensource’s Vanguard Area in south-central Saskatchewan between Saskatoon and Regina • Over 70,000 acres of Crown Mineral Lands available for mining (Saskatchewan Government Potash Leases KL244 and KL245) • Massive potash de
Slide 20: A Clean, Efficient Extraction and Processing Method
A Clean, Efficient Extraction and Processing Method TSX: GSP 2020-07-06 gensourcepotash.ca 20
Slide 21: Partnering With Saskatchewan Potash Experts
Partnering With Saskatchewan Potash Experts TSX: GSP Engineering & Design: Engcomp Engineering & Construction: South East Construction (SECON) Computing Professionals Inc. (Engcomp) • South East Construction is part of the SECON Group, which is a multi- discipline construction organization consistin
Slide 22: OpEx, CapEx, Sources & Uses
OpEx, CapEx, Sources & Uses TSX: GSP All-In Operating Costs - $US 95.97 /Tonne Sources ‘000 US$ % Uses ‘000 US$ % $5.13 Project Equity $100,000 36% Mining $18,260 6% $39.57 Project Finance Debt $179,179 64% Wellfield $13,311 5% $34.76 ***ECA Covered $93,868 Process Plant $57,949 21% ***Uncovered $85
Slide 23: Conventional Potash Mining Vs. The Gensource Way
Conventional Potash Mining Vs. The Gensource Way TSX: GSP Conventional Underground Mining Solution Mining Selective Extraction Method • Involves sinking shafts, and using • Involves pumping a fluid into the • Involves injecting a hot NcCl brine people, equipment, and materials underground ore body,
Slide 24: Off-Take Agreement
Off-Take Agreement TSX: GSP of planned production is already sold Key Points: • Take or pay provisions • Initial 10-year term • Term exceeds financing tenor • Option to renew • Right of first refusal for the offtaker to purchase any additional tonnes produced at the project • Right of first refusal
Slide 25: Joint Venture Organizational Structure
Joint Venture Organizational Structure TSX: GSP *KfW IPEX-Bank is an affiliate of KfW Bank Group. In its responsibility of international project and export finance within the larger KfW Bank Group it is in charge for over EUR 66 billion in assets, completed EUR 17.7 billion in new financings in 2018
Slide 26: Capacity to become one of the lowest cost producers
Gensource shows the capacity to become one of the lowest cost TSX: GSP producers in the industry Source: Randle Green Consulting, CRU, Integer Research, Company Reports, Gensource Potash 2020-07-06 gensourcepotash.ca 26
Slide 27: Tugaske Project Milestones
TSX: GSP Tugaske Project Milestones JUNE MAY JULY FEB AUG OCT MAY OCT DEC JAN FEB MAY 2016 2017 2018 2019 2020 2021 Project NI43-101 Updated Plant Site Joint German Financing Société Area Published NI43-101 Selection Venture Design due diligence Générale Acquired Published and Off- Supply underway a
Slide 28: Management Team
Management Team TSX: GSP The core team in Gensource is the same team that led Potash One Inc. from 2007 to develop the Legacy Project in Saskatchewan. Potash One was subsequently acquired by K+S AG in 2011, who revised the project technical details and constructed it. Now operating as the Bethune Mi
Slide 29: Technical Experts
Technical Experts TSX: GSP Ensuring Project Success Through Specialized Knowledge & Solutions Max Ramey, P.Eng. – Solution Mining Oliver Mehl – Strategic Consultant Solution mining lead for the Potash One - Legacy Project (as well as the Rio Tinto - Potasio Oliver has over 38 years as a marketing an
Slide 30: Investment Summary
Investment Summary TSX: GSP New, independent, Environmentally & socially Strong, steady market and a predictable Strong JV sustainable choice responsible production long-term revenue stream equity partners in place for potash supply. Tugaske is the first with no tailings and or surface brine with th
Slide 31: Market Capitalization ($CAD)
TSX: GSP Market Capitalization ($CAD) 52-Week Price History Market Capitalization $53.6 M Recent Share Price $0.14 52-Week Range $0.17-$0.08 Average Volume 537,047 Shares Outstanding 383 M Options 32 M Warrants 0 Broker Warrants 620 K Cash ~$3.5 M Debt $0 Management, Directors & Business Associates
Slide 32: Contact Information
Contact Click Information to edit Master title style TSX: GSP Mike Ferguson, President & CEO mike@gensource.ca m. +1.306.291.8221 Rob Theoret, CFO rob@gensource.ca m. +1.306.290.7325 Joseph Garofoli, Principal Roc Global joe@rocgs.com m. +1.646.218.9843 gensourcepotash.ca 2020-07-06 gensourcepotash.