Investor Presenta,on. March 2017

Transcription

1 Investor Presenta,on March 2017

2 FORWARD LOOKING STATEMENTS Certain statements in this presenta,on may cons,tute "forward- looking" statements which involve known and unknown risks, uncertain,es and other factors which may cause the actual results, performance or achievements of Potash Ridge Corpora,on (the "Corpora,on"), or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements. When used in this presenta,on, such statements use such words as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "an,cipate", "es,mate" and other similar terminology. These statements reflect the Corpora,on's current expecta,ons regarding future events and opera,ng performance and speak only as of the date of this presenta,on. Forward- looking statements involve significant risks and uncertain,es, which include, but are not limited to the factors discussed under A Cau,onary Note Regarding Forward Looking Statements and "Risk Factors" in the Corpora,on s Annual Informa,on Form dated March 28, 2016, and should not be read as guarantees of future performance or results, and will not necessarily be accurate indica,ons of whether or not such results will be achieved. Although the forward- looking statements contained in this presenta,on are based upon what management of the Corpora,on believes are reasonable assump,ons, the Corpora,on cannot assure investors that actual results will be consistent with these forward- looking statements. These forward- looking statements are made as of the date of this presenta,on and are expressly qualified in their en,rety by this cau,onary statement. Subject to applicable securi,es laws, the Corpora,on assumes no obliga,on to update or revise them to reflect new events or circumstances. 2

3 Potash Ridge is bringing two potassium sulphate (SOP) fer,lizer processes into produc,on; one in Utah and one in Quebec 3

4 OUR VISION IS TO BECOME THE SOP MARKET LEADER IN NORTH AMERICA Value Proposi'on SOP is highly sought ader fer,lizer 1.5 million tonnes of unmet demand Valleyfield Project only poten,al new supply in next 18 months Blawn Mountain Project poten,al lowest cost producer in North America Airac,ve investment opportunity 4

5 POTASSIUM SULPHATE IMPROVES YIELD AND QUALITY Which one are you buying? 5

6 POTASSIUM SULPHATE: Two Macronutrients in One ALUNITE Nitrogen Sulphur CRUSHING & GRINDING Phosphate Calcium CALCINATION Potassium Magnesium SO2 ACID PLANT SUPHURIC ACID Potassium Sulphate (SOP) WATER LEACH Low chloride, high sulphur Significant benefits for fruits, vegetables, nuts, tobacco Improves yield, taste, appearance and shelf life US$630/tonne in North America Capacity growth limited in compe,tor s North American process 6

7 POTASSIUM APPLICATION IMPROVES YIELD AND QUALITY IMPACT ON TOMATOES 100lb/acre 200lb/acre 300lb/acre University of Florida: Comparison of Potassium Sources and Rates For Tomato Produc,on in Florida 7

8 POTASSIUM SULPHATE ELIMINATES CHLORIDE DAMAGE Clemson University, The Australian and New Zealand Field Guide to Diseases, Pests and Disorders of Grapes Peach and grape leaves suffering salt (chloride) damage 8

9 SOP: SUPERIOR PRODUCT WITH ATTRACTIVE MARKET DYNAMICS $US/ton 1, ,000.0 SOP: A top performing commodity in last 5 years SOP 1 MOP SOP price influenced by high- value crop economics not MOP price SERVING AN UNDERSERVED MARKET Compass Minerals Q Report, 2 Potash Corp Q Report 9

10 SOURCES OF POTASSIUM SULPHATE SOP CHEMICAL REACTION: Mannheim Process 50% of all SOP produced uses Mannheim Process Used in Asia, Middle East and Europe Soluble and granular form POTASH RIDGE S TWO SOP PROJECTS VALLEYFIELD FERTILIZER CORP. (Quebec) SOP MINERAL PROCESSING: Alunite Proven process Soluble and granular form BLAWN MOUNTAIN (Utah) SOP EVAPORATION: Salt Lake Finite resource Found in USA, Chile, China, Europe Granular form 10

11 SOP CONSUMPTION MATCHES LOCAL AVAILABLE PRODUCTION 000 s tonnes North America is Underserved North American SOP Market Current ProducSon: 400,000 tonnes/year Current ConsumpSon: 500,000 tonnes/year Projected demand: 1,000,000 tonnes/year North A. South A. Europe Asia Middle East Current ProducSon ExisSng ConsumpSon EsSmated Demand Green Markets, Northern Shoreline, company reports 11

12 TWO PROJECTS STRATEGICALLY LOCATED TO SERVE SOP- DEMANDING CROPS Valleyfield Almonds Grapes Apples LeYuce Blawn Mountain Citrus Vegetables Potatoes Tobacco 12

13 ONE PRODUCT, TWO PROCESSES Valleyfield (Quebec) Blawn Mountain (Utah) 40,000 tpy of SOP CAD $50 million capex 30% ader tax IRR Proven process Produc,on targeted in H Scalable Poten,al for $14million in average annual cash flows NPV (ader tax 10%) $82 million 230,000 tpy of SOP US $458 million capex 20.1% ader tax IRR Lowest cost producer in North America (US $172/ ton) Major permits and water rights secured; infrastructure nearby Poten,al for US$107M in average annual cash flow NPV (ader tax 10%) US $482 million 13

14 Quebec Valleyfield Project

15 VALLEYFIELD: STRATEGICALLY LOCATED o Will be first SOP producer on North American east coast o Strong government support o Located in industrial area near Montreal, Quebec o Low capex (CAD $50 million) fixed price with SNC o Short build,me: 9-12 months o 40,000 tonnes per year and easily scalable o Commercial arrangements create barriers to entry o Technology partner with 20 years experience 15

16 PROVEN MANNHEIM PROCESS Converts MOP to SOP Proven produc,on process (150 year history), with numerous opera,ng facili,es in Europe and China (50% of current SOP produc;on is from Mannheim) High quality, consistent produc,on process Raw Material POTASSIUM CHLORIDE (MOP) SULPHURIC ACID HEAT.84t.56t 550 o C 2- Stage Process MANNHEIM FURNACE Finished Products 1.0t 1.2t POTASSIUM SULPHATE (SOP) HYDRO- CHLORIC ACID (HCl) 16

17 Utah Blawn Mountain Project

18 BLAWN MOUNTAIN PROJECT (UTAH) 1 Area 2 Mining Zone 2 3 Processing Plant Loca,on Access Road 4 5 Area 1 Mining Zone 4 Ore Test Pit 5 3 Drilling data has established 45+ years of reserves Over 100 years of poten,al potash produc,on Ranked #11 mining jurisdic,on globally(1) 100% state- owned land Strong state government and local support All necessary infrastructure nearby 2 1 (1) Fraser Ins;tute,

19 BLAWN MOUNTAIN PROJECT (UTAH) o Will be lowest cost producer in North America o Focused on serving California market with soluble SOP o Ini,al produc,on rate of 255,000 tons per year o 45+ years proven + probable reserves o Permits and water rights secured o Ozake for sulphuric acid byproduct secured o All infrastructure within 30 miles o Over 2.2 million tons / year of tailings includes about 1/5 alumina o Metallurgical tes,ng to be undertaken to assess poten,al as: Bauxite subs,tute, concrete input or other industrial applica,ons o Not valued in NPV 19

20 EXPERIENCED AND PROVEN MANAGEMENT GUY BENTINCK President & Chief Execu8ve Officer Chartered Professional Accountant 20 years mining/resource experience SherriY CFO and SVP Capital Projects ROSS PHILLIPS Chief Opera8ng Officer MA (Econ)/MBA/CFA/CPA 15 years experience in large resource and energy sector projects SherriY, Capital Power JAY HUSSEY President, Valleyfield Fer8lizer& VP Corporate Finance Founder of Valleyfield FerSlizer Corp. 20 years capital markets consulsng 9 years SOP operasonal experience with Migao CorporaSon (Mannheim SOP producer) PETRA DECHER, C.A. Chief Financial Officer Formerly VP Finance and Assistant Secretary, Franco- Nevada CorporaSon 15 years in mining industry with focus on public reporsng, corporate governance, and structuring 55 OVER YEARS COMBINED EXPERIENCE 20

21 ILLUSTRATIVE PROJECT VALUATIONS Project OperaSng Margin Annualized Cash Flow Project NPV Valleyfield $17 million $14 million $82 million Blawn Mountain Combined Values $183 million $144 million $645 million $200 million $158 million $727 million Per PRK Share $1.58 $1.25 $

22 CAPITAL STRUCTURE CAPITAL STRUCTURE Common shares (basic) million Warrants 25.2million Stock OpSons 10.6 million Common Shares (fully diluted) million Current share price $0.25 Market cap $31 22

23 NEAR TERM CATALYSTS Valleyfield o Finalize SOP off- take agreement o Finalize combinason debt and preferred share financing o Start construcson o Start operasons mid 2018 Blawn Mountain o Finalize SOP off- take agreement o Obtain fixed price construcson agreement o Announce results of alumina upside assessment 23

24 INVESTMENT HIGHLIGHTS o Ability to quickly dominate SOP market in North America o Pure SOP play huge demand globally and in North America o Valleyfield - quick to cash flow & profitability o Blawn Mountain - lowest cost producer in North America with long- life reserves o Both projects recently significantly advanced and de- risked o Both projects scalable o Added upside alumina o Extremely undervalued 24

25 Potash Ridge Corpora,on 10 King Street East, Suite 300 Toronto, Ontario