For personal use only

Transcription

1 2013 Annual General Meeting Cliff Lawrenson Managing Director ASX: MAK TSX: MAK

2 Corporate Snapshot KEY STATISTICS Ordinary shares on issue 247.5m Share price A$0.16 Market capitalisation A$40m Debt Nil Cash 30 September 2013 A$26.6m Enterprise value A$13.4m ASSETS Wonarah Project, NT 100% JDCPhosphate Inc 6.5% Australian Minerals & Mining (ASX:AKA) 4.6% Niuminco Ltd (ASX:NIU) 3.6% SIGNIFICANT SHAREHOLDERS Vulcan Phosphate 5.6% Laguna Bay 4.6% BOARD OF DIRECTORS RICHARD (DICK) BLOCK - Non Executive Chairman Dick Block is a US based mining and processing industry executive with four decades experience in the fertiliser, base and precious metal sectors. CLIFF LAWRENSON - Managing Director Cliff Lawrenson joined Minemakers in May He was previously CEO of FerrAus Ltd which he led to a recommended takeover by Atlas Iron Ltd. From 2006 Mr Lawrenson was Group CEO of GRD Ltd which incorporated GRD Minproc Ltd, OceanaGold Ltd and Global Renewables. RICHARD O SHANNASSY - Non Executive Director Richard O'Shannassy is a commercial lawyer with over 30 years experience in the mining and energy sectors. IAN McCUBBING - Non Executive Director Ian McCubbing is a Chartered Accountant with more than 25 years corporate experience, principally in the areas of corporate finance and M&A, working predominantly with ASX listed companies. 2

3 Where are we now? Completed Q2 2013: Strategic cornerstone investment from Vulcan Phosphate Completed Q2 2013: NT Government grant environmental approval for IHP Progressing Q4 2013: Optimisation IHP technology post commissioning Florida plant Progressing: Advancing validation of JDCP s IHP technology & superphosphoric acid (SPA) Progressing: Feasibility study for integrated mining & processing at Wonarah Progressing: Investigation of complementary IHP & SPA related opportunities Strategic Outcome Progressing: Finance & Construction of IHP plants Progressing: Market development for added value SPA acid derived products Progressing: Production of SPA 3

4 Phosphorus An Essential Element Phosphorus (P) is essential for the existence of life and is present in every living cell. As a staple molecule for life it is consumed by plants and animals daily. Rock phosphate contains essential P as a phosphate compound that is extracted as phosphorus pentoxide (P 2 O 5 ) for commercial applications. No Substitute There are no other substitutes for phosphate. It is an irreplaceable finite resource Essential Role in Sustaining Life Phosphate is responsible for ATP intracellular energy transfer - molecular unit of currency Phosphate make up the backbone of DNA, RNA, & phospholipids Phosphate groups are essential to cellular communication Cell membranes are made of a phosphate group, glycerol, & two fatty acid chains Finite Resource The MENA region holds 85% of the world reserves of rock phosphate 1 Australia has a significant untapped resource of high grade rock phosphate with low contamination Phosphate Food Security Modern agriculture is reliant on phosphate derived fertilisers to sustain 40% of world food production To feed a larger and more urban global population, world food production must increase 70% by N. AMERICA +13% World Phosphate Demand by 2020 Forecast by Region (MT P 2 O 5 ) L. AMERICA +47% EUROPE +10.2% WORLD +21.6% Million Tonnes P 2 O Million Tonnes P 2 O 5 S. ASIA +11% E. ASIA +20.4% OCEANIA +41.6% Source 1Stephen Jasinski, US Geological Survey, January 2013 Source 2 How to Feed the World in 2050, FAO, 2009 Source: A Global Perspective on the Resources and Future Supply of Phosphorus for Agriculture, Lars Stoumann Jensen, May

5 Why Fertiliser? World Fertiliser Facts Global nutrient sales to reach 255m tonnes by 2017 Fertiliser industry is investing US$150bn between 2012 and 2017 to fulfil global demand 55 to 85% of all soils are deficient in NPK The share of phosphate fertilisers based on phosphoric acid rose from 75% in 2000 to 89% in 2012 Global demand for phosphoric acid will reach 46.5 million tonnes by 2017 (39.8m tonnes for fertiliser) In 2015, the global fertiliser market is forecast to have a value of US$172bn, an increase of 32% since 2010 NPK Macro Nutrient Basics Nitrogen (N) - fulfils plant s yield potential Converted to amino acids as the building block for protein Produced from gas, coal & renewable energy Phosphorus (P) - creates plant s yield potential Backbone of DNA & RNA critical throughout plant lifecycle Produced from sedimentary deposits rich in phosphate Potassium (K) controls movement of key inputs Increases use of water, protein, nutrients & carbohydrates Produced from ash, sedimentary salts & sea water Top Ten N-P-K Consumers 2011/12 ( 000 metric nutrient tonnes per year) Rank N P 2 O 5 K 2 O 1 China 34,084 China 11,500 China 5,200 2 India 17,398 India 8,336 United States 4,436 3 United States 11,884 United States 4,001 Brazil 4,431 4 Brazil 3,366 Brazil 3,859 India 3,624 5 Pakistan 3,129 Australia 873 France Indonesia 3,123 Canada 733 Poland Canada 2,160 Argentina 700 Bangladesh France 2,087 Bangladesh 689 Thailand Germany 1,721 Pakistan 621 Syria Russia 1,600 Indonesia 580 Germany 400 Rest 27,149 9,183 8,923 World 107,699 41,075 29,396 Source: International Fertilizer Industry Association Statistics 2011/12 N Nitrogen 61% 178 Million Tonnes / Yr Phosphate 23% KPotash 16% 5

6 Wonarah Project Northern Territory, Australia 100% owned by Minemakers Australia s largest JORC and NI compliant phosphate resource Measured + Indicated Resource 18.2% P 2 O 5 Inferred Resource 18.0% P 2 O 5 (10% cut-off) Only 15% of known phosphate currently drilled to enable a resource estimate NT Major Project Status awarded Excellent installed infrastructure Abundant water available on site Natural gas at Tennant Creek Barkly highway (bitumen) to Tennant Creek From Tennant Creek; rail north to Darwin for export or South to access domestic fertiliser markets Darwin import facilities available for raw materials Mining Agreement with Traditional Owners in place NT EPA has approved Mining Management Plan assessment process for IHP operations. No further environmental approvals required Good levels of interest from 3rd party funding providers 6

7 Wonarah Project Opportunity Significant competitive advantage via exclusive rights to the Improved Hard Process (IHP) technology, currently in final validation by JDCPhosphate Feasibility Study (FS) focusing on utilising IHP, with completion expected H Fully funded for FS through to Financial Investment Decision (FID) Simple open cast mining MODELLED PALAEOSURFACE AT WONARAH AT THE TIME OF PHOSPHATE DEPOSITION, SHOWING DRILLING AND TENURE Transport cost sensitivities mitigated by on-site production of high-value superphosphoric acid (SPA) Lower initial capex requirements utilising IHP technology Plant commissioning expected late 2015 early 2016 once FS completed Resources (10% Cut-off) Category Mt %P 2 O 5 Measured Indicated Inferred Resources (15% Cut-off) Category Mt %P 2 O 5 Measured Indicated Inferred

8 Infrastructure Advantage Built and Available Barkly Highway Adelaide Darwin Rail East Arm Bulk Facility - Port of Darwin Gas Pipeline 8

9 The Phosphate Product & Value Chain Current Price FOB Morocco: Rock Phosphate - US$ /tonne Superphosphoric Acid US$1,000-1,500/tonne 80% 70% SPA Premium intermediate product 1,200 Percentage P 2 O 5 Content 60% 50% 40% 30% 20% 10% Rock Phosphate Direct application Fertiliser Primary downstream feed SSP / TSP Pasture Fertiliser Inputs - Rock Phosphate & MGA DAP / MAP Crop Fertiliser Inputs - Rock Phosphate & Sulphuric Acid & Ammonia MGA Intermediate Product Inputs - Rock Phosphate and Sulphuric Acid Liquid fertilisers, phosphorus food products & chemicals DAP/MAP Inputs - Rock Phosphate, Silica & Pet Coke Minemakers Target Market Selling Price FOB Morocco (US$) 150 0% SPP Single superphosphate DAP Diammonium Phosphate MGA Merchant Grade Phosacid TSP Triple superphosphate MAP Mono Ammonium Phosphate SPA Superphosphoric Acid 9

10 Wet Acid Process (WAP) vs Improved Hard Process (IHP) IHP produces higher value SPA off a lower capex base with improved environmental credentials TRADITIONAL WET ACID PROCESS (WAP) Mining Beneficiation to 30% P 2 O 5 Sulphuric acid introduced to produce phosphoric acid Filtration to remove phosphogypsum Dilute phosphoric acid passed through condenser to produce Merchant Grade Acid (MGA) contained ~54% P 2 O 5 Introduction of ammonia for granulation or further processing purification to 68% P 2 O 5 By-product - environmentally challenging phosphogypsum with no commercial value Landfilled phosphogypsum require management long after end of plant life vs Mining IMPROVED HARD PROCESS (IHP) Beneficiation to 15-20% P 2 O 5 Blended with pet coke and silica Roasting in ported rotary kiln driving off a phosphorus rich P 4 O 10 gas Hydration process to produce more concentrated solution superphosphoric acid (SPA) contained ~70% P 2 O 5 Used directly or blended according to application By-product - low environmental impact and inert J-Rox (spent pellets) used as cement additive or aggregate 10

11 Phosphoric Acid Value Chain 20 TH CENTURY TECHNOLOGY ELECTRIC ARC PROCESS ROCK WET ACID PROCESS FURTHER MGA PURIFICATION 21 ST CENTURY TECHNOLOGY IMPROVED HARD PROCESS CATALYSTS FOOD INDUSTRY LIQUID FERTILISERS GRANULAR FERTILISERS DIRECT APPLICATION FERTILISERS $1,500 /mt P 2 O 5 $1,000 /mt P 2 O 5 For personal use only Technical & Food Grade Acid 70% Alkali Phosphates - cleaning & detergent Catalysts - aluminum phosphate catalysts Cheese & Beverages - acidulant Fats & Oils - Emulsifier & degumming agent for vegetable oil purification Superphosphoric Acid 68% liquid APP fertiliser Direct foliar feed STPP Waste sludge treatment Metal finishing Bioremediation lead Phosphoric Acid 45% DAP MAP TSP SSP $500 /mt P 2 O 5 Processing Technologies Application Acid Grade Value Insteps 11

12 IHP Batch Testing using Wonarah Feedstock Mixing Trial Mining Pelletising Dried Pellets Hydrator Rotary Furnace J-Rox Pellets 12

13 For personal use only Florida Demonstration Plant The Road to Production March 2012 September 2012 January 2013 March 2013 July 2013 July 2013 September 2013 October 2013 Commercial Scale Demonstration Plant Wonarah IHP Line 13

14 Wonarah Indicative Timetable Item JDCP Partnering Process Beneficiation Testwork JDCP Demonstration Plant Construction JDCP Plant Optimisation Wonarah FS Financing/FID Construction of Wonarah (1 st Phase) SPA Production 14

15 Investment Rationale Phosphate an irreplaceable commodity of strategic importance Vital for ensuring long term food production security Strategic location in a politically stable environment Australia has the opportunity to become Asia s food bowl Wonarah is a world class asset with a clear route to profitable production via IHP technology 100% ownership of Wonarah Exclusive access to IHP technology Producing high value SPA reduces sensitivity to transport and logistical costs Significant cash-backing with low cash burn; supportive expert investor Strong cash position Sufficient funding to complete FS in 2H 2014 Cash burn minimised Vulcan Phosphates, expert fertiliser investor, 5.7% holding in MAK 15

16 Level 2, 34 Colin Street, West Perth Western Australia 6005 Ph: +61 (0) Fax: +61 (0) THANK YOU TSX: MAK ASX: MAK NSX: MMS