Apc Minerals Limited · ASX:APC

Apc Minerals — Australian Potash — Investor Presentation (November 2021)

29 slides from Apc Minerals's investor presentation, Nov 2, 2021

  1. Slide 1: Investor Presentation

    For personal use only Low Cost, Organically Certified, Environmentally Sustainable, Green Sulphate of Potash Investor Presentation 2 November 2021 www.australianpotash.com.au

  2. Slide 2: Disclaimer

    Disclaimer For personal use only Nature of this document This presentation has been prepared by Australian Potash Limited (APC or the Company). The information is based on publicly available information, internally developed data and other sources. By receiving this presentation, you acknowledge and

  3. Slide 3: Australia’s Green SOP Project

    Australia’s Green SOP Project A genuinely For personal use only green, premium fertiliser FEED Program* positions the Lake Wells SOP K-BriteTM product as a genuinely green, premium fertiliser product for distribution into the world’s most lucrative markets ‘SHOVEL READY’: DEBT PROGRAM NEARING COMPLE

  4. Slide 4: Lake Wells Sulphate of Potash Project: The essential metrics

    Lake Wells Sulphate of Potash Project The essential For personal use only metrics 30 YEARS OF SOP PRE-TAX^ NPV8 A$88M EBITDA^ PRODUCTION AT 90% A$415M (AVG ANNUAL OVER LOM) 170,000 OF PRODUCTION UNDER OFFTAKE TONNES CASH COST^ SOP PRICE^ PER ANNUM US$251/t US$550/t GREEN LOAN NAIF FUNDING CAPITAL CO

  5. Slide 5: Bankable Offtake Agreements

    Bankable Offtake Agreements For personal use only Ship and supply 30,000tpa K-BriteTM through Europe 20,000tpa K-BriteTM 50,000tpa K-BriteTM through USA through China 20,000tpa K-BriteTM through Bankable Offtake Agreements Australia & 30,000tpa for 90% of production: K-BriteTM through New Zealand •

  6. Slide 6: Sustainability

    Sustainability Community For personal use only Culture Environment Environment Replacing & Ministerial Statement reducing a material carbon footprint EPA Approved Enviro Cultural Heritage Management Plan Ma laces eim Rep P High-penetration LSO (c.69%) renewable n En Cu gem nnh energy fraction ment g

  7. Slide 7: Sustainability: Multi-generational reduction in Greenhouse Gas Emissions

    Sustainability Multi-generational reduction in For personal use only Greenhouse Gas Emissions Lake Wells Renewable Power Station • 63-69% Renewable fraction • $0.17/kwh • 4.5MW solar • 9MW wind (2x4.5MW turbines) • 9MW/3MWh BESS Greenhouse Gas Emissions (GHG)^ [tCO2eq/tonneSOP, scope 1,2 & 3] APC Ot

  8. Slide 8: At what stage is the Project? Early works program

    At what stage is the Project? Early works For personal use only program 48-person construction camp including • Villagewet & dry infrastructure in place to support early mess and water treatment facilitiesworks complete construction activities • 48 rooms, tavern, kitchen/dining room, sewage treatmen

  9. Slide 9: At what stage is the Project? Early works program

    At what stage is the Project? Early works For personal use only program 14 bores developed out of total 79 bores across three borefields Test pumping to date indicate flow rates materially aligned with resource model Brine abstraction materially de-risked with early works www.australianpotash.com.au

  10. Slide 10: At what stage is the Project? Early works program

    At what stage is the Project? Early works For personal use only program On-playa evaporation pond trial program complete High-grade K SOP produced from pilot- evaporation program* Organic certification received in Europe, USA & Australia Operational experts engaged (Corey Milne) Vital two evaporatio

  11. Slide 11: Financing the Build

    NAIF Financing the Build EFA For personal use only Commercial banks Equity 01: NAIF 02: EFA • Investment decision approved February 03: Banks 2021 • Conditional approval April 2021 04: Equity • A$140 million • Foreign institutions • 17-year tenor • A$45 million • Domestic institutions • 10-year teno

  12. Slide 12: Sources and Uses Summary

    Sources and Uses For personal use only Summary SOURCES OF FUNDS A$m USES OF FUNDS A$m Placement proceeds (Tranche 1 and Tranche 2*) 12 Borefield drilling and test pumping 7–8 Share Purchase Plan (SPP) proceeds* 0–2 Earthworks and site-based expenditure 5–6 Existing cash (30 September 2021) 3 Working

  13. Slide 13: Execution Timeline to Production

    Execution Timeline to Production Conservative schedule For personal use only commitments Village Communications Earthworks Borefield - Drilling Borefield - Power and Pipeline Process Plant - Engineering and Procurement Process Plant - Construction Hybrid Power Plant TIME UNDER SUN Plant Commissionin

  14. Slide 14: How does SOP pricing work?

    How does SOP pricing work? Premium product commands For personal use only premium pricing • Granular or • Soluble Standard SOP High K2O granular High K2O standard • +52% K2O • Powdered • Granular • 50% - 52% K2O • Low Chloride • 50% K2O • 50% - 52% K2O • Soluble • Organic • Insoluble • Bulk • Organi

  15. Slide 15: How does SOP pricing work? Premiums paid for SOP products

    For personal use only US$/t 400 450 500 550 600 650 700 750 800 850 Sep 2018 Oct 2018 Nov 2018 Dec 2018 Jan 2019 Feb 2019 Mar 2019 Apr 2019 www.australianpotash.com.au May 2019 Jun 2019 NW Eur Stand SOP Jul 2019 15 Aug 2019 • Soluble • Bagged • Organic Sep 2019 • Granulated Oct 2019 Nov 2019 Dec 201

  16. Slide 16: How does SOP pricing work?

    How does SOP pricing work? Premium product commands For personal use only premium pricing 900 800 Gap up in 700 SOP pricing across the globe US$/t 600 500 400 Forward price curves used in the LSOP FEED bank financial model 300 Sep 2018 Sep 2019 Sep 2020 Sep 2021 Sep 2022 Sep 2023 Sep 2024 Sep 2025 S

  17. Slide 17: Contracting Strategy

    Contracting Strategy Minimising the risk of cost For personal use only overruns, schedule creep and process under-performance +75% of construction contracts by value are EPC 6 Packages EPC Contracted Why? SOP process plant Schedule guarantee Borefield fit-out & HV network Price guarantee (in mid-202

  18. Slide 18: Key Implementation Team

    Key Implementation Team Skills For personal use only Experience Competence Project Management Process Design Rhett Brans Ryan Duncan Project Director Technical Manager Christopher Maiolo Corey Milne Project Manager Specialist Technical Consultant Peter de Groot Construction Manager Borefield Develop

  19. Slide 19: Corporate

    Corporate Skills For personal use only Experience Competence Share Price (28 October 2021) $0.115 Shares on Issue 649.9m Unlisted Options & Performance Rights 11.9m Market Capitalisation $75m Jim Walker Brett Lambert Cathy Moises Cash (30 September 2021) $3m Chairman Non-executive Director Non-execu

  20. Slide 20: Risk Management

    Risk Management Skills For personal use only Governance Commitment § ASX Corporate Governance structures § ISO45001 Framework § Deep commercial & technical experience § Continuous training and improvement § Highly experienced & diversified § 1:25 OH&S Professionals on staff Board § Framework mirrore

  21. Slide 21: Community Engagement

    Community Engagement A commitment to For personal use only the community • Construction of Laverton • Target of 15% Aboriginal Training Centre has participation commenced • Carey Mining and Central • Local, state, federal & Earthmoving joint venture industry funding contracted for earthworks • Inter

  22. Slide 22: Exploration Opportunities

    Exploration Opportunities Regional For personal use only multi-commodity potential Laverton Downs Lake Wells Project Gold Project • Prospective for nickel sulphide • SBM earnt in 70% during April 2021; and gold mineralisation APC 30% free-carried to bankable • Assays pending from diamond feasibility

  23. Slide 23: For personal use only

    For personal use only www.australianpotash.com.au +61 8 9322 1003 @OzPotash Suite 31, 22 Railway Road, Subiaco WA 6008

  24. Slide 24: Appendix 1: Our Market

    SOP is the premium form Appendix 1: Our Market of an essential, non- For personal use only substitutable plant fertiliser 7M tonnes Essential High Margin US$3.5B Market Size <1% Chloride/17% Sulphur Premium pricing SOP Global Demand • SOP = 10% of the global demand • Potassium is essential • Solar s

  25. Slide 25: Appendix 2: CAPEX Summary

    Appendix 2: CAPEX Summary For personal use only Capital expenditure The Lake Wells Sulphate of Potash Project CAPEX* A$m Delivery and Execution Risk Mitigated Owner’s Team 18 Capable & experienced owner’s team Bore drilling & development 16 Schedule guarantee, specialist contractor, productivity KPI

  26. Slide 26: Appendix 3: OPEX Summary

    Appendix 3: OPEX Summary For personal use only Operating expenditure The Lake Wells Sulphate of Potash Project Brine SOP MOP conversion Combined Annual production 120,000 tonnes 50,000 tonnes 170,000 tonnes Salt harvesting 13 - 9 Power 49 3 35 Reagents & consumables 12 266 85 Labour 57 - 41 Export l

  27. Slide 27: Appendix 4: Lowest Quartile on Global Cost Curve

    Appendix 4: Lowest Quartile on Global For personal use only Cost Curve Global FOB SOP cost curve 2018 Mannheim capacity: high energy, high Brine mineralisation, long cost, environmental issues First Peer Quartile Sustainable Production FOB cost (US$/t) 540 Comparison evaporation timeframe Mannheim 4

  28. Slide 28: Appendix 5: FEED Summary

    Appendix 5: FEED Summary For personal use only Financial metrics The Lake Wells Sulphate of Potash Project Strong Returns in All Scenarios Assumptions* Unit SOP Price (495-605 US$/t) 286 544 SOP price [real] US$/t 550 FX (0.77-0.63 US$/A$) 312 542 FX rate US$:$A 0.70 Opex (+/-10%) 371 460 Discount r

  29. Slide 29: For personal use only

    For personal use only www.australianpotash.com.au +61 8 9322 1003 @OzPotash Suite 31, 22 Railway Road, Subiaco WA 6008

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