Gq presentation-feb2015

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    FERTILIZERTSX-V

    AFRICABUILDING FOR GROWTH WHERETHE WORLD IS GROW ING

  • DisclaimerThis presentation contains forward-looking statements or forward-looking information within the meaning of applicablesecurities legislation (hereinafter collectively referred to as "forward-looking statements") concerning the Company's plansfor its properties, projects, operations, subsidiaries and other matters. These statements relate to analyses and otherinformation that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions ofmanagement regarding operations of the Company which are subject to a variety of business and market risks, includingpolitical and regulatory risks associated with mining and exploration in Mali.

    Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections,objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or"does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating thatcertain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are notstatements of historical fact and may be forward-looking statements.

    These forward-looking statements are based on certain assumptions which the Company believes are reasonable, however,forward-looking statements are subject to a variety of business and political risks and uncertainties. Some of the importantrisks and uncertainties that could affect forward-looking statements are also described in the Company's continuousdisclosure filings made with Canadian securities regulatory authorities, which are available at the SEDAR website and on theCompanys website. Should one or more of these risks and uncertainties materialize, or should underlying assumptions proveincorrect, they may adversely affect the Companys business and prospects and actual results may vary materially fromthose described in forward-looking statements. Forward-looking statements are made based on management's beliefs,estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, other than as required byapplicable laws. Investors are therefore cautioned against placing undue reliance on forward-looking statements.

    The Company cautions that the PEA is preliminary in nature, as it includes Inferred Mineral Resources which areconsidered too speculative geologically, to have the economic considerations applied to them that would enable them to becategorized as "Mineral Reserves". There is no certainty that the PEA will be realized, as Mineral Resources do notdemonstrate economic viability.

    The technical information in this presentation has been reviewed by Jed Diner, MSc. P.Geol., a qualified person as defined byNational Instrument 43-101.

    2

  • African Fertilizer for African Markets Tilemsi Phosphate Mali

    50 Mt, 24.3% P2O5 inferred resource Product: Direct application granulated

    phosphate (35% P2O5 and 27% P2O5) After-Tax NPV10% $423M, IRR 55%.

    Initial capital investment $157.9M (PEA)

    Currently financing a profitable pilot plant with signed local off-take

    Sua Pan Potash Botswana Brownfield development Process tailings recovery from Soda

    Ash production Product: Potential for 70,000t K2SO4

    (SOP) annually Currently structuring JV, and

    completing scoping engineering

    3

    Tilemsi PhosphateDeposit

    Tilemsi PhosphateDeposit

    Sua PanPotashBrineProjectSua PanPotashBrineProject

  • Africa has the potential to create a trillion-dollar food market (World Bank)

    62% of all large-scale land acquisitions since 2000 have occurred in Africa.

    Agriculture in Africa will grow from its current $280 billion a year to $500 billion in 2020, and $880 billion by 2030.

    Nigerias agricultural sector could grow by a colossal 160% by 2030, rising from $99 billion in 2010 to $256 billion

    4Source: GRAIN, AGRA Alliance, McKinsey, IMF, FAO

    SSA

    AnnualGDPGrowth 2013 2014 2015 2018

    World +2.9 +3.6 +4.0 +4.1

    SubSaharan Africa +5.0 +6.0 +5.7 +5.7

    AfricaisWheretheGrowthis

  • Under Served and Wide Open

    Africa is largely ignored by international fertilizer players

    Infrastructure and logistic challenges insulate the markets from pricereductions in the international market

    Manufacturing finished products in the regions of agricultural growth createsexcellent opportunities for enviable margins

    5

    252

    229

    165

    31

    32

    0.2

    20

    8

    45

    14

    0 100 200 300 400 500 600

    Mali

    Thailand

    AverageCostofFertilizer(US$/tonne)

    ProductCost Transportation Taxes&Levies FinanceCosts Overheads

    $53.2/t

    $282/t

    Source:NationalGeographic(TheNextBreadBasket,July2014)

  • Mine to Field Ready Products Its not enough to have a good concentrate

    Concentrates to 36.8%, very low Cd, U and other common contaminants, meets industry standard Fe and Al oxides

    Unusually high natural solubility, 71.1% in citric acid

    All mechanically concentrated, screens and magnetic separation

    Easily granulated alone or with nitrogen and potash for complex and simple blending

    Field tested with competitive results We have completed 2 years of field agronomic

    testing Conducted with IER (Institute of Rural Economics),

    and international development agencies 11 Test plots in major agricultural zones of Mali Cotton, rice, corn, millet, sorghum, peanuts, black

    eyed peas

    6Dr.Lamine Traore,cornplantedandfertilizedwithGQphosphate

  • Agronomy

    Extraordinary Results

    Corn in SikassoPopular crop in a significant growing region, powerful yield response.

    7

    Phosphatetype Quantity(kg/ha)

    N(%)

    P(%)

    K(%)

    Yield(kg/ha)

    DiammoniumChemical

    100 15 15 15 2,156

    GQ35%Granulated 100 11 18 2 3,858

    Tilemsi Powder 300 24 2,597

    Phosphatetype Quantity(kg/ha)

    N(%)

    P(%)

    K(%)

    Yield(kg/ha)

    DiammoniumChemical

    100 15 15 15 1,751

    GQ35%Granulated 100 11 18 2 2,192

    Tilemsi Powder 300 24 1,728

    Phosphatetype Quantity(kg/ha)

    N(%)

    P(%)

    K(%)

    Yield(kg/ha)

    DiammoniumChemical

    65 18 46 904

    GQ27%Granule+M4 100 27 1013

    Tilemsi Powder 300 24 794

    Un-Irrigated Rice in Bamako Challenging crop given variable water availability, benefiting from whole nutrient nature of GQ product

    Peanuts in Kita Medium grade product was tested with solubility aids, an ultra low cost option for subsistence crops

  • Starting Small Production in Mali

    EstablishedMalianPartnership(Oct17,2014)

    GQ67%/SADA33% FundspartofConstructionandreducescountryrisk

    Offtakeagreement(Sept22,2014)

    SADAlocalblendingconsortium

    Willpurchase95%ofplannedproduction

    EstablishedProductinMali(June13,2014)

    ProductdemonstrationswithMinistryofAgriculture(IER)

    Excellentresultssharedwithmajorpurchasers

    DevelopedProductforWestAfricanMarket

    Processtobeneficiateandgranulate WorkedwithMintek andDRA

    8

    Pilot PlantEconomics(US$)

    AfterTaxNPV10% $17.3M

    ProjectedIRR 29.5%

    GQ InitialCapEx $16.3M

    Prices (OffTake)

    HighGrade(35%P2O5) $450/t

    MediumGrade(27%P2O5) $330/t

    TollBlending/Granulating $45/t

    OperatingCost $124/t

    Market building phase Low capital hurdle to production Secure production while Mali

    continues to stabilize

  • The Opportunity is not limited to Mali

    9

    324.8

    371.3

    174.8

    112.2

    16

    59

    52.2

    56

    52.2

    49.8

    0 200 400 600 800 1000

    Mali

    Nigeria

    UREACost(US$/tonne)

    ProductCost Transportation Taxes&Levies FinanceCosts DistributionCost

    $277/t

    $295/t

    543.8

    463.1

    159.8

    149.6

    28

    24.2

    76.6

    78.6

    75

    71.6

    0 200 400 600 800 1000

    Mali

    Nigeria

    NPKBlendCost(US$/tonne)

    ProductCost Transportation Taxes&Levies FinanceCosts DistributionCost

    $324/t

    $339/t

    Source:IFDC,WestAfricanFertilizerReport2012

  • Full Scale Production

    500,000t of production growing to 1Mt

    Sold through out West Africa The region consumes

    approximately 2.5Mt

    10

    FullScaleEconomics(US$)

    AfterTaxNPV10% $432.1M

    ProjectedIRR 55.0%

    PayBackPeriod 2.4years

    GQ InitialCapEx $157.9M

    Prices (Projected)

    HighGrade(35%P2O5) $350/t

    MediumGrade(27%P2O5) $262/t

    OperatingCost $ 92/tTrucksinGao,movinggoodstoandfromBamako,Algieria andNiger

  • This can be replicated across Africa

    11

    502

    546

    215

    234

    43

    47

    0 200 400 600 800 1000

    Zambia

    Mozambique

    NPKBlendCost(US$/tonne)

    ProductCost Transportation DistributionCost

    $281/t

    $258/t

    SolarevaporationpondsatSua PanbrineprojectinBotswana

    West Africa does not have a monopoly on high logistic costs, in spite of this Zambiaand Mozambique have been among the fastest growing and most productiveagriculture on the continent

    Potash supply has been serious problem for Zambian farmers

  • Botswana Potash

    Exclusive right to develop potash present at Sua Pan operation of Botswana Ash Corporation

    KCl concentrations in bitterns are reported to exceed 10.9 g