For personal use only - · PDF fileFor personal use only 2013 Annual General Meeting. ... SSP...
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ASX: MAK | TSX: MAKCliff LawrensonManaging Director
2013 Annual General MeetingFor
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Corporate Snapshot
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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
Wonarah Project, NT 100%
JDCPhosphate Inc 6.5%
Australian Minerals & Mining (ASX:AKA) 4.6%
Niuminco Ltd (ASX:NIU) 3.6%
Vulcan Phosphate 5.6%
Laguna Bay 4.6%
RICHARD (DICK) BLOCK - Non Executive ChairmanDick Block is a US based mining and processing industryexecutive with four decades experience in the fertiliser, base andprecious metal sectors.
CLIFF LAWRENSON - Managing DirectorCliff Lawrenson joined Minemakers in May 2012. He waspreviously CEO of FerrAus Ltd which he led to a recommendedtakeover by Atlas Iron Ltd. From 2006 Mr Lawrenson was GroupCEO of GRD Ltd which incorporated GRD Minproc Ltd,OceanaGold Ltd and Global Renewables.
RICHARD O’SHANNASSY - Non Executive DirectorRichard O'Shannassy is a commercial lawyer with over 30 yearsexperience in the mining and energy sectors.
IAN McCUBBING - Non Executive DirectorIan McCubbing is a Chartered Accountant with more than 25 yearscorporate experience, principally in the areas of corporate financeand M&A, working predominantly with ASX listed companies.
BOARD OF DIRECTORSKEY STATISTICS
ASSETS
SIGNIFICANT SHAREHOLDERS
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Where are we now?
Completed Q2 2013: Strategic cornerstone investment from Vulcan Phosphate Completed Q2 2013: NT Government grant environmental approval for IHPProgressing 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 WonarahProgressing: Investigation of complementary IHP & SPA related opportunities
Progressing: Finance & Construction of IHP plantsProgressing: Market development for added value SPA acid derived products Progressing: Production of SPA
Strategic Outcome
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Phosphorus (P) is essential for the existence of life and is present in every living cell. As a ‘staplemolecule for life’ it is consumed by plants and animals daily. Rock phosphate contains essential P as aphosphate compound that is extracted as phosphorus pentoxide (P2O5) for commercial applications.
Phosphorus – An Essential Element
4Source 1Stephen Jasinski, US Geological Survey, January 2013Source 2 How to Feed the World in 2050, FAO, 2009
5.25.9
14.717.7
20102020
E. ASIA +20.4%
1.220102020
OCEANIA +41.6%
1.7
20102020
S. ASIA +11%
9.110.1
20102020
L. AMERICA +47%
96.1
20102020
EUROPE +10.2%
4.95.4
45.7 Million Tonnes P2O520102020
WORLD +21.6%
World Phosphate Demand by 2020Forecast by Region (MT P2O5)
20102020
N. AMERICA +13%
5.25.9
Source: A Global Perspective on the Resources and Future Supply of Phosphorus for Agriculture, Lars Stoumann Jensen, May 2012
55.6 Million Tonnes P2O5
No Substitute There are no other substitutes for phosphate. It is
an irreplaceable finite resourceEssential 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 chainsFinite Resource The MENA region holds 85% of the world reserves
of rock phosphate1
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 20502
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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
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World Fertiliser Facts NPK – Macro Nutrient Basics
Top Ten N-P-K Consumers 2011/12 (‘000 metric nutrient tonnes per year)
Rank N P2O5 K2O1 China 34,084 China 11,500 China 5,2002 India 17,398 India 8,336 United States 4,4363 United States 11,884 United States 4,001 Brazil 4,4314 Brazil 3,366 Brazil 3,859 India 3,6245 Pakistan 3,129 Australia 873 France 5466 Indonesia 3,123 Canada 733 Poland 4787 Canada 2,160 Argentina 700 Bangladesh 4688 France 2,087 Bangladesh 689 Thailand 4579 Germany 1,721 Pakistan 621 Syria 43310 Russia 1,600 Indonesia 580 Germany 400Rest 27,149 9,183 8,923World 107,699 41,075 29,396
Phosphate23%
Potash16%
Nitrogen61%
NK
178 MillionTonnes / Yr
Source: International Fertilizer Industry Association Statistics 2011/12
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
Why Fertiliser?F
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100% owned by Minemakers
Australia’s largest JORC and NI43-101 compliant phosphate resource
Measured + Indicated Resource 300Mt @ 18.2% P2O5
Inferred Resource 542Mt @ 18.0% P2O5 (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
Wonarah Project – Northern Territory, AustraliaF
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Wonarah Project Opportunity
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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 H2 2014
Fully funded for FS through to Financial Investment Decision (FID)
Simple open cast mining
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 %P2O5
Measured 78 20.8
Indicated 222 17.5
Inferred 542 18
Resources (15% Cut-off)
Category Mt %P2O5
Measured 82 20.2
Indicated 391 13.2
Inferred 933 13
MODELLED PALAEOSURFACE AT WONARAH AT THE TIME OF PHOSPHATE DEPOSITION, SHOWING
DRILLING AND TENURE
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Infrastructure Advantage – Built and Available
East Arm Bulk Facility - Port of Darwin
Barkly Highway
Adelaide – Darwin Rail
Gas Pipeline
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The Phosphate Product & Value Chain
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0%
10%
20%
30%
40%
50%
60%
70%
80%
Perc
enta
ge P
2O5 C
onte
nt
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
SPA
Premium intermediate product
Liquid fertilisers, phosphorus food products & chemicals
DAP/MAP
Inputs - Rock Phosphate, Silica & Pet Coke
Selli
ng P
rice
FOB
Mor
occo
(US$
)MGA
Intermediate Product
Inputs - Rock Phosphate and Sulphuric Acid
Minemakers Target Market
SPP
TSP
Single superphosphateTriple superphosphate
DAP
MAP
Diammonium PhosphateMono Ammonium Phosphate
MGA
SPA
Merchant Grade PhosacidSuperphosphoric Acid
Current Price FOB Morocco: Rock Phosphate - US$140 - 150/tonneSuperphosphoric Acid US$1,000 - 1,500/tonne
150
1,200
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Wet Acid Process (WAP) vs Improved Hard Process (IHP)
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IMPROVED HARD PROCESS (IHP)
Mining
Beneficiation to 15-20% P2O5
Blended with pet coke and silica
Roasting in ported rotary kiln driving off a phosphorus rich P4O10 gas
Hydration process – to produce more concentrated solution – superphosphoric acid (SPA) contained ~70% P2O5
Used directly or blended according to application
By-product - low environmental impact and inert J-Rox (spent pellets) used as cement additive or aggregate
Mining
Beneficiation to 30% P2O5
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% P2O5
Introduction of ammonia for granulation or further processing purification to 68% P2O5
By-product - environmentally challenging phosphogypsum with no commercial value
Landfilled phosphogypsum require management long after end of plant life
TRADITIONAL WET ACID PROCESS (WAP)
IHP produces higher value SPA off a lower capex base with improved environmental credentials
vs
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Phosphoric Acid Value Chain
Processing Technologies Application
GRANULAR FERTILISERS
ELEC
TRIC
AR
C P
RO
CES
S
WET
AC
ID P
RO
CES
SFU
RTH
ER M
GA
PUR
IFIC
ATIO
N
20TH CENTURYTECHNOLOGY
21ST CENTURYTECHNOLOGY
IMPR
OVE
D H
AR
D P
RO
CES
S
RO
CK
DIRECT APPLICATION FERTILISERS
LIQUID FERTILISERS
FOOD INDUSTRY
CATALYSTS
$1,5
00 /m
t P2O
5$1
,000
/mt P
2O5
$500
/mt P
2O5
• Alkali Phosphates - cleaning & detergent• Catalysts - aluminum phosphate catalysts• Cheese & Beverages - acidulant• Fats & Oils - Emulsifier & degumming agent
for vegetable oil purification
Technical & Food Grade Acid – 70%
Superphosphoric Acid – 68%• 10-34-0 liquid APP fertiliser• Direct foliar feed• STPP• Waste sludge treatment• Metal finishing • Bioremediation – lead
Phosphoric Acid – 45%• DAP 18-46-0• MAP 11-52-0• TSP 0-20-0• SSP 0-8-0
Acid Grade Value Insteps
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IHP – Batch Testing using Wonarah Feedstock
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Rotary Furnace
Hydrator
Pelletising
Dried Pellets
Mixing
Trial Mining
J-Rox Pellets
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Florida Demonstration Plant – The Road to Production
March 2012 September 2012 January 2013 March 2013
Commercial Scale Demonstration Plant Wonarah IHP Line
July 2013 October 2013July 2013 September 2013
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Wonarah Indicative Timetable
Item 2012 2013 2014 2015 2016JDCP Partnering Process
Beneficiation Testwork
JDCP Demonstration Plant Construction
JDCP Plant Optimisation
Wonarah FS
Financing/FID
Construction of Wonarah (1st Phase)
SPA Production
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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-backingwith 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
Investment Rationale
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Level 2, 34 Colin Street, West Perth Western Australia 6005Ph: +61 (0)8 9264 7000 Fax: +61 (0)8 9264 7099
TSX: MAKASX: MAKNSX: MMS
THANK YOU
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