Aguia Resources Limited · ASX:AGR
Aguia Resources — Investor Presentation (April 2012)
24 slides from Aguia Resources's investor presentation, Apr 23, 2012
Slide 1: Emerging Brazilian Phosphate and Potash Developer
EMERGING BRAZILIAN PHOSPHATE AND POTASH For personal use only DEVELOPER April 2012 AGUIA Resources Limited ASXRESOURCES AGUIA Code: AGR LIMITED 1
Slide 2: Disclaimer
DISCLAIMER For personal use only This document has been prepared as a summary only, and does not contain all information about the Company’s assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company’s securities.
Slide 3: Company Overview
COMPANY OVERVIEW For personal use only ■ BUSINESS MODEL = Explore, Develop and sell into Brazilian Domestic Market ■ BRAZIL IS AN AGRICULTURAL POWERHOUSE ✔ Excellent infrastructure ✔ Primary fertiliser markets ✔ Heavily reliant on imports ■ Phosphate Projects – Near Term Focus ✔ Rio Grande, new disc
Slide 4: The Opportunity – Why Brazil?
THE OPPORTUNITY – WHY BRAZIL? IMPORT DEPENDENT, CUSTOMERS For personal use only AN AGRICULTURAL POWERHOUSE ■ 4th largest consumer of fertilizer but only 4% LUCENA PHOSPHATE of global fertilizer production. ■ In 2011, accounted for 9.3% (3.6Mt) of world’s phosphate (P2O5) and 13.4% (7.7Mt) of world’s
Slide 5: The Team & Capital Structure
THE TEAM & CAPITAL STRUCTURE For personal use only Directors Graham Ascough - Non-Executive Chairman Potash & Phosphate Experts – Over 21 years management and exploration experience evaluating resource projects globally, including Falconbridge and on-ground Alfredo Nunes - Exploration Manager - Phos
Slide 6: Phosphate Projects: Right Location, Right Market
PHOSPHATE PROJECTS RIGHT LOCATION, RIGHT MARKET For personal use only ■ Key parameters ✔ Location ✔ Infrastructure ✔ Mineralogy = beneficiation ✔ Markets ■ Initial resource targets¹ of 20-60Mt ■ Targets to sustain 10-20 year life, producing initial 500 ktpa of concentrated rock ■ Near term focus nex
Slide 7: Brazil - Phosphate Carbonatite Mines
BRAZIL - PHOSPHATE CARBONATITE MINES For personal use only Company Project Reserve Grade Concentrate Grade Prod. (Mt) P2O5 (%) P2O5 (%) Capacity (ktpa) (A) (B) (C) (D) Vale Tapira 1,309 7.69 35.5 2,030 Copebrás/ Anglo Ouvidor 257 7.63 38 1,300 Vale Araxá 89 11.12 35/33 910 Vale Catalao 224 8.96 36/3
Slide 8: Igneous vs. Sedimentary Host Rocks
IGNEOUS VS. SEDIMENTARY HOST ROCKS KEY CONSIDERATIONS For personal use only Igneous Rock Sedimentary Rock Grade of Rock 4-15% P₂O₅ 10-30% P₂O₅ Beneficiation Higher recovery % more than 85% Lower recovery % between 75 (and can be > 90%) to 85% Concentrate grade 35-41% P₂O₅ Average grade of 29% P₂O₅ B
Slide 9: Rio Grande do Sul Projects
RIO GRANDE DO SUL PROJECTS NEW PHOSPHATE PROVINCE For personal use only THE PROJECTS Early stage signs similar to carbonatite style phosphate deposits mined by Vale in Brazil Two projects under evaluation: Três Estradas – new discovery TRES ESTRADAS Joca Tavares – rock chips to 11% P2O5, NEW
Slide 10: Tres Estradas Drilling Program and Results
TRES ESTRADAS DRILLING PROGRAM AND RESULTS For personal use only Drilling is spaced over 1 kilometre and up to 200 metres across strike, open in all directions. Initial results from surface include: 27.00 metres @ 17.75% P2O5 Includes. 12.30 metres @ 24.60% P2O5 34.00 metres @ 10.91% P2O5 In
Slide 11: Tres Estradas - Drill Section
TRES ESTRADAS - DRILL SECTION For personal use only High Grade Oxide Zone Primary Zone
Slide 12: Tres Estradas - Upside
TRES ESTRADAS - UPSIDE LARGE RESOURCE POTENTIAL For personal use only Application lodged over southern extension for potential 2.4 kilometre strike length. DRILLING DISCOVERY 1 KM NEW APPLICATION UNTESTED EXTENSION TOTAL POTENTIAL 2.4 km
Slide 13: Phosphate Demand in Brazil by State, 2010
PHOSPHATE DEMAND IN BRAZIL BY STATE, 2010 For personal use only Phosphate Demand by State in Brazil, 2010 ‘000 t P2O5 (‘000 tonnes P2O5) < 25 25 – 49 Average forecast demand for P2O5 is growing at 4% 50 – 99 p.a. 100 - 149 150- 199 This takes rock demand 200 - 249 from 6.3Mt to 10.7Mt by 2020. 2
Slide 14: Key Phosphate Markets
KEY PHOSPHATE MARKETS For personal use only SSP production will be the key initial end-use SSP Capacity in market for Aguia = SSP Plant Brazil, Uruguay and phosphate rock. Argentina Current capacity for Total Capacity = 9.0 M t SSP in southern Brazil, Uruguay and Argentina is 2.79M t, which requ
Slide 15: Excellent Infrastructure Access to Markets
EXCELLENT INFRASTRUCTURE ACCESS TO MARKETS For personal use only • Well developed local infrastructure with good road, rail, power, port and services • Railway within the project that goes north and south to SSP plants in Brazil and southwest to Argentina and Uruguay. RIO GRANDE • Franchise owner is
Slide 16: Cost Advantage for Domestic Producers
COST ADVANTAGE FOR DOMESTIC PRODUCERS For personal use only Suppliers of Phosphate Rock to Brazil Most imported rock to Brazil is from North Africa with typical logistics costs of between $30 - $40/t The Bayovar mine in Peru (Vale) has higher logistics costs, but low mining costs Sustained logis
Slide 17: Provisional Timeline for Phosphate Projects
PROVISIONAL TIMELINE FOR PHOSPHATE PROJECTS For personal use only 2012 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1. Três Estradas Resource - Initial JORC Resource - Beneficiation Results - Drilling southern section ... then mine - Infill drilling construction - Final JORC Re
Slide 18: Peer Comparison: Phosphate
PEER COMPARISON: PHOSPHATE For personal use only Global Phosphate Market Cap Company Code Location Status Resource Grade P₂O₅ Diluted (A$M)* (mt) (%) MBAC Fertiliser Corp MBC:TSX Brazil $314 Developer 192 7.22 Stonegate Agricom Ltd ST:TSX Peru $97 Developer 446 10.51 Arianne Resources DAN:TSX Canada
Slide 19: Atlantic Potash Project Highlights
ATLANTIC POTASH PROJECT HIGHLIGHTS For personal use only ATLANTIC POTASH PROJECT Adjacent to Brazil’s only operating potash mine Taquari-Vassouras Mine (Vale) produces <10% of country’s consumption, with reserves in place until 2019. Concurrently Vale is developing its Carnallita Potash Projec
Slide 20: Exceptional Discovery Potential
EXCEPTIONAL DISCOVERY POTENTIAL For personal use only ■ Large land holding, ~ 200,000 hectares Taquari-Vassouras Mine - Vale Underground / Room and Pillar ■ Historical exploration data obtained from 700,000t KCl p.a. Brazilian Geological Survey Associated to Bull’s-eyes Gravity Low ■ Petroleum explo
Slide 21: Enquiries
For personal use only ENQUIRIES: SIMON TAYLOR – Managing Director & CEO Telephone: +61 2 9210 1332 staylor@aguiaresources.com.au www.aguiaresources.com.au ASX Code: AGR AGUIA RESOURCES LIMITED 21
Slide 22: Appendix 1: Brazilian Border Zone
APPENDIX 1: BRAZILIAN BORDER ZONE RIO GRANDE TE AND JT PROJECTS For personal use only The Option: Aguia has an option to acquire the Rio Grande Projects TE and JT 100% for 5 million shares. The Issue: An historical throw-back to defence issues that concerned the former military government (1964 – ’8
Slide 23: Appendix 2: Lucena South Project
APPENDIX 2: LUCENA SOUTH PROJECT DRILLING TARGETS RESOURCE POTENTIAL For personal use only ■CPRM discovered shallow phosphate mineralisation up to 22% P2O5 in several deposits to the west ■Phosphate mineralisation is hosted by a limestone unit (Gramame Formation) that extends through project towards
Slide 24: Appendix 3: Mata da Corda Option
APPENDIX 3: MATA DA CORDA OPTION INFRASTRUCTURE & NEW DISCOVERIES For personal use only ■ Located within 100km of the three largest phosphate mines in Brazil and near 32 major bulk blenders ■ Option to Vicenza to acquire 70% of the MCPP over a three year period through a combination of; cash total