Parkway Corporate Limited · ASX:PWN
Parkway Corporate — Potash West NL — Investor Presentation (May 2015)
28 slides from Parkway Corporate's investor presentation, May 12, 2015
Slide 1: World Class Fertiliser Products from World Class Assets
For personal use only WORLD CLASS FERTILISER PRODUCTS FROM WORLD CLASS ASSETS Investor presentation May 2015
Slide 2: Disclaimer
This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation may not be distributed in any jurisd
Slide 3: Competent Persons statements and resource notes
Information in the presentation that relates to the Mineral Resource estimate for Dinner Hill is fully described in the ASX release of 11 October 2012. Information relating to the Dinner Hill Extended Exploration Target was released to the ASX on 07 May 2013. Information relating to the phosphate Mi
Slide 4: Agenda
Agenda For personal use only • Company Snapshot • Fertiliser Overview • South Harz Project, Germany • Dandaragan Trough Project, Western Australia • Phosphate • K-Max • Value Proposition 4
Slide 5: Corporate Snapshot
CORPORATE SNAPSHOT For personal use only ASX CODE PWN SHARE PRICE – 6 May2015 AU$0.06 MARKET CAP. AU$12M SHARES ON ISSUE (1) 201 M 12 MONTH RANGE 3c – 7c TOP 20 SHAREHOLDERS 56.9% MGMT AND DIRECTORS 17.6% (1) Plus 36M partly paid and 5M options, fully diluted =242M shares BOARD Adrian Griffin – Chai
Slide 6: Investment Case
INVESTMENT CASE Creating opportunities in the global fertiliser industry: For personal use only Exploring a brown-fields potash project in Germany Close to existing producers and end-users, good infrastructure Significant near-term exploration potential Vending into an ASX listed company,
Slide 7: Population Dynamics
POPULATION DYNAMICS For personal use only “The challenge is clear. With nearly 1 billion people already suffering from hunger and malnutrition in some of the fastest growing areas of the world, the challenge of doubling food production by 2050 will become more difficult as key resources become incre
Slide 8: Fertiliser Business
FERTILISER BUSINESS 3 Fertiliser bulk commodities, For personal use only N, Nitrogen, promotes green growth P, Phosphorous, promotes plants yield potential K, Potassium, enables plants to take up nutrients from soil and air 3 Minors, Ca, S and Mg Most soils deficient in NPK Not interch
Slide 9: Fertiliser Business
FERTILISER BUSINESS Forecast value of US$172B in 2015, For personal use only Fertiliser wholesalers mix products for region, from bulk raw materials: Nitrogen (109 Mtpa, N): from air, gas and coal Urea Ammonia Nitrate Phosphates (41Mtpa, P): mined from rock phosphate deposits Superphos
Slide 10: East Exploration
EAST EXPLORATION For personal use only PWN 55% of a Company with 2 Exploration Licences in Central Germany Counterparty, private interests Close to existing producers 450 sq km, extensive previous drilling Working with Ercosplan, world renowned potash consultants, who have worked in this r
Slide 11: Potash Mines in Germany
For personal use only POTASH MINES IN GERMANY Germany has a long history of potash mining Extensive deposits, in Zechstein beds laid down in Permian Period 4th largest producer in world Western Europe is a net importer of potash Extensive expertise exists within Germany Established infra
Slide 12: Küllstedt and Gräfentonna Applications
KÜLLSTEDT AND GRÄFENTONNA APPLICATIONS Within South Harz region, For personal use only which has produced 100m tonnes of potash Several mines in production up till 1990s, German reunification. Low potash prices caused closures KÜLLSTEDT 450 sq km of holding Extensive drilling Close to exis
Slide 13: Next Steps at Küllstedt
NEXT STEPS AT KÜLLSTEDT Establish drill programme to For personal use only target a JORC inferred resource of +200 Mtonne Get approvals for that programme Build up local team 13
Slide 14: Next Steps for East Exploration
NEXT STEPS FOR EAST EXPLORATION For personal use only Memorandum of Understanding completed to vend into Petratherm (PTR), an ASX listed entity. Which will be recapitalised. Capital Raising supported by Taylor Collison (priority entitlement to PWN shareholders). Shareholder base are experience
Slide 15: Dandaragan Project Location
DANDARAGAN PROJECT LOCATION For personal use only +2,500 km2 of prospective area ~150km of strike ~+20km width Many intersections +40m Great infrastructure Rail Power Gas Water Close to local markets, WA and SE Asia Similar mining activity already in region Close to export po
Slide 16: Exploration
EXPLORATION Focus on Northern area, 409 For personal use only holes drilled, 159 on Dinner Hill Numerous intersections of high grades close to the surface Dambadjie, +60m of high grade Dinner Hill, first resource, phosphate closer to surface 16
Slide 17: Dambadjie Prospect Drill Samples
DAMBADJIE PROSPECT DRILL SAMPLES For personal use only PHOSPHATE K-MAX 17
Slide 18: Phosphate Flowsheet
For personal use only PHOSPHATE FLOWSHEET 18
Slide 19: Phosphate Plant Study Parameters
PHOSPHATE PLANT STUDY PARAMETERS Mining Rate 4.2 Mtpa For personal use only One product: 390,000 tpa Single superphosphate Commodity Grade, 18% P2O5 Capex and Opex estimates +/-35% 100,000 tpa consumed locally, balance exported Project works, despite low feed grade, because: Unconsolid
Slide 20: Scoping Study Results - Phosphate
SCOPING STUDY RESULTS - PHOSPHATE For personal use only THROUGHPUT 4.2 mtpa NPV8 AU$M (1) 331 CAPITAL COSTS, AU$M 136 OPEX, AU$/tonne of PRODUCT 200 REVENUE , AU$/tonne of PRODUCT 370 IRR% (1) 29.5 MINE LIFE +20 YEARS EBITDA (1), AU$M pa 60 (1) Ungeared, pre-tax 20
Slide 21: K-Max - Flowsheet
For personal use only K-MAX - FLOWSHEET 21
Slide 22: Integrated K-Max Study Parameters
INTEGRATED K-MAX STUDY PARAMETERS For personal use only Mining Rate 4.2 Mtpa Suite of products (LOM average): 150,000 tpa Sulphate of Potash, SOP 135,000 tpa high Magnesium SOP, KMS 220,000 tpa Iron oxide 760,000 tpa Aluminium Sulphate 170,000 tpa phosphate products SOP and Phosphate co
Slide 23: Integrated Study Results
INTEGRATED STUDY RESULTS For personal use only THROUGHPUT 4.2 mtpa NPV12 $m 659 Stage 1 Stage 2 Capital Costs, $M 136 590 Opex, $/tonne of feed 19 ($199/t of 44 ($129/t of product) product) Revenue, $/tonne of feed 35 110 Phosphate 40%, Potash 30%, Alum 25% ,Iron 5% ($370/tonne of ($320/tonne of pro
Slide 24: Dinner Hill Development Timelines
Dinner Hill Development Timelines 2015 2016 2017 2018 2019 2020 2021 2022 2023 For personal use only Phosphate Project Feasibility Study Construction Operation K-Max Project Pilot Plant Prefeasibility Study Feasibility Study Construction Operation 24
Slide 25: Corporate Structure
Corporate Structure Potash West NL For personal use only 100% 100% 100% East Exploration Dinner Hill Mining K-Max Holdings Company Pty Ltd Technology Pty Ltd •55% of East Exploration Pty Ltd •Potash, Phosphate and by-products rights in EL 3987, Western Australia • Process IP and know-how •Licence to
Slide 26: Market Cap of Fertiliser Explorers and Developers
MARKET CAP. OF FERTILISER EXPLORERS AND DEVELOPERS For personal use only Market Cap, $M As at 4 May 2015 26
Slide 27: Investment Highlights
INVESTMENT HIGHLIGHTS Exposure to the growing fertiliser business For personal use only Regions are major importer German Potash, exploration upside Long production history Extensive database available, quality partners Dandaragan Trough Strategic location Low risk start up with phos
Slide 28: Questions?
QUESTIONS? For personal use only Patrick McManus Unit 3 Managing Director 23 Belgravia Street Mobile +61 (0) 408 956 798 Belmont WA 6104 patrick.mcmanus@potashwest.com.au PO Box 588 Adrian Griffin Belmont WA 6984 Chairman Mobile +61 (0) 418 927 658 Phone +61 (0) 8 9479 5386 adrian.griffin@potashwest