Reward Minerals Ltd · ASX:RWD
Reward Minerals — Proactive's CEO Luncheons, Melbourne & Sydney 2018
24 slides from Reward Minerals's conference presentation, Jan 31, 2018
Slide 1: Reward Minerals Limited
REWARD MINERALS LIMITED Proactive’s CEO Luncheons Melbourne & Sydney 31 Jan/1 Feb 2018 ASX | RWD www.rewardminerals.com
Slide 2: Forward Looking Statements & Disclaimer
FORWARD LOOKING STATEMENTS & DISCLAIMER This document includes forward-looking statements. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should”, and similar expressions are forward-looking statements. Although RWD believes that t
Slide 3: Highlights
HIGHLIGHTS Sulphate of Potash (‘SOP’) is: ► A premium fertilizer in short supply with strong market growth ► A market of some 6Mt per annum worth approximately US$3.0bn Large surficial brine SOP resources: ► Are globally scarce, vary in scale, chemistry, grade and extractability ► Can enable signifi
Slide 4: Corporate Snapshot
CORPORATE SNAPSHOT Capital Structure 30 Jan 2018 ASX:RWD Ordinary Shares on Issue 135.8m Rights and Options on Issue 4m Share Price $0.28 Undiluted Market Capitalisation $38m Estimated Cash & Equivalents1 ~A$1.7m Undiluted Enterprise Value A$36.3m 1. As per December 2017 Appendix 5B Major Shareholde
Slide 5: SOP Market Overview
SOP MARKET OVERVIEW SOP is the premium Potash fertiliser ► Sulphate of Potash – “SOP” or K2SO4 The SOP Price premium has stayed close to U$270/t for most of the last three years ► 44.8% Potassium, 55.2% Sulfate (MOP: 54% K, 46% Cl) ► Provides plants with a chloride free source of potassium and sulph
Slide 6: SOP Growth Drivers
SOP GROWTH DRIVERS 80 8 Demand is driven by Global Midyear Population (billions) 70 7 ► Increasing population, decreasing arable land Potash Demand (Mt) 60 6 ► Diet influenced by changing demographics 50 5 ► Concerns over increasing soil salinity 40 4 ► Need for improved water efficiency 30 3 ► Indi
Slide 7: Global SOP Producers > 100ktpa
GLOBAL SOP PRODUCERS > 100ktpa Over 70% of SOP supply is from high cost Mannheim and K Salts Production LD could be the largest brine SOP producer outside China Yara Kokkola – 200ktpa Compass Minerals ▪ SOP (Mannheim) Great Salt Lake – 300ktpa K+S ▪ SOP (Brine) Aktiengesellschaft– 1,200ktpa Xinjiang
Slide 8: Global SOP Cost Curve (Mine Gate)
GLOBAL SOP COST CURVE (MINE GATE) Primary playa-style brine SOP deposits have the lowest ex-works production costs 500 450 400 Estimated Operating Cost / t (US$)1 350 LD’s Estimated 300 Ex-works cost of Production2 250 200 150 100 50 0 SDIC Compass Compass Mannheim Rusal K+S Kali Minerals SQM Luobop
Slide 9: Playa and Palaeochannel Basics – 1
PLAYA AND PALAEOCHANNEL BASICS – 1 A picture paints a thousand words….. 50 Use of the Lake Wells image is purely for the purpose of geological explanation only and is not an opinion of potential projects that may one day be located there. 9
Slide 10: Playa and Palaeochannel Basics – 2
PLAYA AND PALAEOCHANNEL BASICS – 2 But here are some words to explain the difference….. Playas Palaeochannels Linear, space is a constraint on abstraction Large surface area – space is not a system design & therefore environmental constraint on abstraction system design. risk. Low energy depositiona
Slide 11: But Its Not Just About Geology…
BUT ITS NOT JUST ABOUT GEOLOGY… The operating environment is also key, such as evaporation….. ~ Lake Disappointment And magnesium rich brines (in Australia) need consistently high evaporation rates across all the seasons….. 11
Slide 12: But Its Not Just About Geology…
BUT ITS NOT JUST ABOUT GEOLOGY… And rainfall….. ~ Lake Disappointment 12
Slide 13: LD SOP Project - Introduction
LD SOP PROJECT - INTRODUCTION ► 100% owned – the largest SOP resource in Australia, offering long life and scalability ► Excellent brine chemistry and one of the highest grade SOP resources in Australia ► A playa* with extensive resource upside ► Excellent brine SOP production climate, low rainfall,
Slide 14: A Globally Significant Tier 1 Resource
A GLOBALLY SIGNIFICANT TIER 1 RESOURCE LD’s Drainable SOP Resource dwarfs other local resources (Even though its not the largest playa in Australia by area) Accessible Zone Exclusion Zone Open to depth Notes: 1. Total area of the lake:1,241km2 2. Total area of the exclusion zone: 492km2 14 Refer to
Slide 15: A Globally Significant Tier 1 Resource
A GLOBALLY SIGNIFICANT TIER 1 RESOURCE LD’s Drainable SOP Resource dwarfs other local resources (And has a relatively high average grade without relying on a cut-off grade) Assigned Specific SOP Brine Unit Nominal Dimensions (m) Volume Area Yield Drainable JORC Resource Hydrostratigraphic Unit Grade
Slide 16: A Globally Significant Tier 1 Resource
A GLOBALLY SIGNIFICANT TIER 1 RESOURCE LD’s Drainable SOP Resource dwarfs other local resources WA 1 WA 2 WA 3 WA 4 RWD A RWD E RWD Total Drainable SOP Reserves Probable Mt 2.66 SOP Grade kg/m3 14.212* WA 1 WA 2 WA 3 WA 4 RWD A RWD B RWD Total Drainable SOP Resources Indicated Mt 0.0 12.7 4.3 4.4 7.
Slide 17: LD – Three-Stage Production Process
LD – THREE-STAGE PRODUCTION PROCESS Well-established process - harvested salt goes through a milling, conversion and crystallization process - SOP ready for crop application Brine Supply & Harvest Capex - A$100M Opex - A$67/t SOP LD PROJECT SCOPING STUDY Process Plant Capex - A$93M Capex – A$320M (U
Slide 18: LD – Ongoing Trench Trials
LD – ONGOING TRENCH TRIALS • Commenced mid-Sept, 2 x 1 km long • One trench pumped continuously to mid- Dec • Rates from ~6l/s to ~15 l/s* • Steady state ~ 10l/s* • Approximately 75 million litres pumped* • Average grade ~13 g/litre SOP* • Abstraction test on first trench extended as only minor draw
Slide 19: LD – Upcoming Milestones
LD – UPCOMING MILESTONES PFS Nearing Completion ► This quarter ► CPC Engineering working with RWD, also independent process review Environmental Assessment Underway ► LD is the most advanced SOP Project with ERD having been submitted ► A 12 to 18 month process is envisaged, running in parallel with
Slide 20: Conclusions
CONCLUSIONS ► Reward is the 100% owner of the LD SOP Project which is: ► Potentially the world’s largest and one of the highest grade brine SOP resources ► Located in a low rainfall, high evaporation region with excellent brine chemistry, allowing the use of established processes ► Subject to a full
Slide 21: Appendices
NM APPENDICES
Slide 22: Experienced Board & Management
EXPERIENCED BOARD & MANAGEMENT Colin McCavana – Non-Executive Director, Chairman - 30+ years experience in mining and earthmoving industries Daniel Tenardi – Projects Director including the management, acquisition and development of - 25+ years mining experience with various organisations projects i
Slide 23: Competent Person Statement
COMPETENT PERSON STATEMENT This information in this report that relates to Resource Estimation and hydrogeology is based on information compiled by Mr Robert Kinnell, a hydrogeologist and Competent Person who is a Member of The Australian Institute of Mining and Metallurgy and a Fellow of the Geolog
Slide 24: Reward Minerals Ltd contact details
Reward Minerals Ltd 159 Stirling Highway Nedlands WA, 6009 (T): +61 8 9386-4699 (W): www.rewardminerals.com
Reward Minerals — Proactive's CEO Luncheons, Melbourne & Sydney 2018 on 6ix