For personal use only

Transcription

1 AN EMERGING FERTILISER DEVELOPER IN BRAZIL MINES & MONEY AUSTRALIA th October 2012 AGUIA Resources Limited ASX Code: AGR AGUIA RESOURCES LIMITED 1

2 DISCLAIMER This document has been prepared as a summary only, and does not contain all information about the Company s assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company s securities. This document should be read in conjunction with any public announcements and reports (including financial reports and disclosure documents) released by Aquia Resources Limited. The securities issued by the Company are considered speculative and there is no guarantee that they will make a return on the capital invested, that dividends will be paid on the Shares or that there will be an increase in the value of the Shares in the future. Further details on risk factors associated with the Company s operations and its securities are contained in the Company s prospectuses and other relevant announcements to the Australian Securities Exchange. Some of the statements contained in this release are forward-looking statements. Forward looking statements include but are not limited to, statements concerning estimates of tonnages, expected costs, statements relating to the continued advancement of the Company s projects and other statements which are not historical facts. When used in this document, and on other published information of the Company, the words such as aim, could, estimate, expect, intend, may, potential, should and similar expressions are forward-looking statements. Although the company believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors could cause actual results to differ from these forward-looking statements include the potential that the Company s projects may experience technical, geological, metallurgical and mechanical problems, changes in product prices and other risks not anticipated by the Company or disclosed in the Company s published material. The Company does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any recipient of this document. Recipients of this document should carefully consider whether the securities issued by the Company are an appropriate investment for them in light of their personal circumstances, including their financial and taxation position. Competent Persons Statement The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Fernando Tallarico who is a member of the Association of professional Geoscientists Ontario. Dr Tallarico is a full-time employee of Aguia Resources Limited. Dr Tallarico has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ( JORC Code ). Dr Tallarico consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

3 BRAZIL - THE LAND OF GLOBAL AGRICULTURE EXPORTS PRODUCER BRAZIL #1 World Exporter SOYA COFFEE SUGAR BEEF CHICKEN TOBACCO ETHANOL ORANGE JUICE BRAZIL #1,2 & 3 World Producer SOYA COFFEE SUGAR BEEF CHICKEN TOBACCO ETHANOL ORANGE JUICE BEANS CORN Brazilian Agricultural Exports >$94 billion per annum 24% increase in 2011

4 WHY FERTILISER IN BRAZIL? BRAZIL IS AN AGRICULTURAL POWERHOUSE AGRICULTURE NEEDS FERTILISERS FERTILISERS ARE MADE FROM MINED RESOURCES: PHOSPHATE ROCK = PHOSPHORUS POTASH MINERALS = POTASSIUM

5 BRAZIL THE OPPORTUNITY Third largest global agricultural exporter World s fastest growing major fertiliser market Brazil is heavily reliant on fertiliser imports Government targeting self sufficiency within 10 years Good mining code; tax incentives for new projects PHOSPHATE Imports 46% POTASH Domestic Production 54% 8% Domestic Production BRAZIL: A SUPERIOR GLOBAL LOCATION FOR NEW PHOSPHATE AND POTASH PROJECTS Imports 92%

6 For personal use only BRAZIL CUSTOMERS, MARKETS

7 PROJECT OVERVIEW World-class Assets BUILDING A FERTILISER COMPANY - WORLD CLASS PHOSPHATE AND POTASH ASSETS Phosphate Projects Near Term Focus RIO GRANDE, new discovery, flag ship project Initial 21M t JORC Inferred resource Drilling commenced to increase resource size Beneficiation concentrate up to 36% P 2 O 5 Scope for large, long life, low cost resources Lucena, drilling follow-up results to 23.3% P 2 O 5 Mata da Corda: JV with Vincenza Atlantic Potash Project World class basin Adjacent to Brazil s only operating potash mine STRONG BOARD, INDUSTRY FERTILISER EXPERTS, TECH TEAM BASED IN BRAZIL LOW SOVEREIGN RISK, SUPPORTIVE GOVT. FOR FERTILIZER PRODUCTION BRAZIL: AN AGRICULTURAL POWERHOUSE, AND A GREA LOCATION FOR PROJECTS Excellent infrastructure Primary fertiliser markets Heavily reliant on imports

8 RIO GRANDE DO SUL PROJECTS NEW PHOSPHATE PROVINCE Três Estradas (TE) new discovery JORC Resource announced on 1.2km of total target size of 2.6km Joca Tavares (JT) under evaluation rock chips up to 11% P 2 O 5, TRES ESTRADAS NEW DISCOVERY 13 additional targets untested Similar in style to Brazilian producing phosphate mines carbonatites hosted NEW TARGETS JOCA TAVARES NO DRILLING Diamond Drilling Tres Estradas Project

9 BRAZIL - PHOSPHATE CARBONATITE MINES Company Mine Reserve (Mt) Grade P 2 O 5 (%) Concentrate Grade P 2 O 5 (%) Prod. Capacity (ktpa) (A) (B) (C) (D) Vale Tapira 1, ,030 Copebrás/ Anglo Ouvidor ,300 Vale Araxá / Vale Catalao /34 1,209 Vale Cajati Average Grade Brazilian Carbonatite Deposits is 7.8% P 2 O 5 Yara Siilinjärvi, Finland Sources: (A) > Resource and Grades: Salitre DNPM 1975 / Anitápolis: DOU 1980 (DOU = Official Diary of Brazil) (B) > Reserve and Grades: DNPM 2006 Mineral Annuary (C) > Concentratio / Production: ANDA Annuary 2008 (D) > Major phosphate rock producer by Bete, Inc for Cargill Fertilizer, Inc Values updated to 2010 including exchange variation and inflation.

10 TRES ESTRADAS JORC INFERRED RESOURCE Initial JORC compliant inferred resource of 4.6% P 2 O 5 1 including higher grade oxide zone from surface of 10.9% P 2 O 5 Resource calculated from drilling over 1 kilometre to 100 metre depth Significant scope to expand resource at depth and along strike drilling commenced Initial oxide results from surface to provide initial early cash flow and include: % P 2 O 5 includes % P 2 O % P 2 O 5 includes % P 2 O 5 1 SRK Consulting: cut-off grade of 3.0% P 2 O 5)

11 TRES ESTRADAS - UPSIDE LARGE RESOURCE POTENTIAL Application lodged over southern extension INFERRED RESOURCE EXTENDS OVER 1.2 km LARGE RESOURCE EXPANSION POTENTIAL IN UNTESTED SOUTHERN EXTENSION UNTESTED EXTENSION 1.4 km no drilling TOTAL POTENTIAL 2.6 km NEW APPLICATION

12 EXCELLENT INFRASTRUCTURE ACCESS TO MARKETS Excellent infrastructure with good road, rail, power, port and services Railway within the project that goes north and south to SSP plants in Brazil and southwest to Argentina and Uruguay. Franchise owner is América Latina Logística. RIO GRANDE Phosphate Projects Schematic of Key Railway Lines Relevant to Rio Grande Phosphate Projects Railway runs through the project

13 KEY PHOSPHATE MARKETS FOR RIO GRANDE Phase 1: Build mine and Single Super Phosphate ( SSP ) production. The Process Mine rock Beneficiate by flotation to produce phosphate rock concentrate Two options 1) sell rock concentrate 2) produce and sell SSP More SSP processing capacity is being considered by current producers > 600 kt. Current capacity for SSP in southern Brazil, Uruguay and Argentina is 2.79M t, which requires 1.79M t rock. SSP Capacity in Brazil, Uruguay and Argentina Total Capacity = 9.0 M t Paranaguá - Heringer 400kt - Fospar 520kt Rio Grande - Bunge 250kt - Timac Agro 250kt - Yara 650kt Argentina San Lorenzo - Mosaic 250kt Argentina Ramallo - Bunge 180kt Target Zone Capacity 2.79M t SSP Uruguay San José - ISUSA 110kt Phase 2: Depending on ultimate resource size, plan for either increased SSP or MAP / TSP production Data: ANDA,, Company Records Uruguay Nueva Palmira - ISUSA 180kt

14 THE TEAM & CAPITAL STRUCTURE Directors Graham Ascough - Non-Executive Chairman Over 21 years management and exploration experience evaluating resource projects globally, including Falconbridge and on-ground experience in Brazil. Simon Taylor - Managing Director & CEO Geologist and founding Director of Aguia with 20 years exploration, development and operational experience in the resources sector. Corporate experience as a resource analyst with a major focus on the phosphate sector. Dr. Fernando Tallarico - Technical Director 19 years experience in Brazil in exploration and project generation for Noranda, Falconbridge and BHP Diamond South America. Allan Pickett - Non-Executive Director Highly regarded Fertilizer Professional with 14 years experience with British Sulphur Consultants, the fertilizer and chemical division of CRU International Ltd. Top 5 Shareholders 1. Potash Atlantico Corp 18.82% 2. Bond Street Custodians Ltd 6.06% 3. Nefco Nominees Pty Ltd 5.36% 4. HSBC Custody Nominees 4.75% 5. Arredo Pty Ltd 3.76% Top 20 Shareholders 59.04% Potash & Phosphate Experts Alfredo Nunes - Exploration Manager - Phosphate 20 years exploration and resources evaluation in Brazil and globally, including 13 years with Brazilian major Vale in various commodities, from exploration to mine production. John Sinden - Phosphate Processing Engineer Renowned consultant engineer with more than 45 years in the field of phosphate processing, leading phosphate rock to acid specialist. Paulo Souza - General Manager - Potash Key engineer involved in the design and development of Vale s Carnallite Project and Pilot Plant and an experienced Mining Engineer with 26 years in mine planning and operation, with Vale, Rio Tinto and others. Capital Structure Ordinary Shares 106.2M Market $15.9M Unlisted Options 7.9M Cash (September 2012) $3.1M

15 MC Diluted (A$m) PEER COMPARISON: PHOSPHATE Company Code Location Market Cap Diluted (A$M)* Status MBAC Fertiliser Corp MBC:TSX Brazil $361 Developer Stonegate Agricom Ltd ST:TSX Peru $77 Developer Arianne Resources DAN:TSX Canada $76 Developer Minemakers MAK:ASX Australia/ Namibia $35 Explorer Rio Verde RVD:TSX Brazil $29 Explorer Legend International LGTI:OTC Australia $27 Developer Minbos MNB:ASX Angola $27 Developer Aguia Resources AGR:ASX Brazil $17 Explorer Phosphate Australia POZ:ASX Australia $10 Explorer $400 $350 $300 $250 $200 $150 $100 $50 $0 MBC: TSX ST: TSX DAN: TSX MAK: ASX RVD: TSX LGD: OTC MNB: ASX AGR: ASX POZ: ASX Market Cap A$m $361 $77 $76 $35 $29 $27 $27 $17 $10 Source- Figures Public Company Announcements

16 ATLANTIC POTASH PROJECT HIGHLIGHTS ATLANTIC POTASH PROJECT Project adjacent to Brazil s only operating potash mine Taquari-Vassouras underground sylvinite Large land holding, ~ 200,000 hectares Analyzed data from > 300 petroleum exploration and production wells, + 32,000 km 2D seismic Taquari-Vassouras Mine - Vale Underground / Room and Pillar 700,000t KCl p.a. Vale is developing its Carnallita Potash Project for 1.2Mt solution-mined KCl from carnallite solution mine pilot plant operational since 2009 environmental licenses in place start-up scheduled for 2015 Further drilling under review

17 ENQUIRIES: SIMON TAYLOR Managing Director & CEO Telephone: staylor@aguiaresources.com.au ASX Code: AGR