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GQ FERTILIZER
TSX-V
AFRICA
BUILDING FOR GROWTH WHERE
THE WORLD IS GROWING
Disclaimer
This presentation contains forward-looking statements or forward-looking information within the meaning of appl...
Stock	
  Informa-on	
  
3
As	
  of	
  March	
  6,	
  2014	
  
STOCK	
  INFORMATION	
  	
  
TSX-­‐V:	
  GQ	
  
SHARES	
  OU...
Our Goal
•  Building a Pan African Fertilizer
Manufacturer
–  Developing agricultural mineral projects
for local productio...
Our Strategy
Follow strict development criteria
•  Must reach field ready product with compelling investment returns on
ca...
6
Source:	
  EBG	
  Capital	
  
60% OF THE WORLD’S ARABLE LAND IS IN AFRICA
According	
   to	
   Zürich-­‐based	
  
adviso...
7Source:	
  GRAIN,	
  AGRA	
  Alliance,	
  McKinsey	
  
	
  	
  
Agribusiness	
  project	
  sizes	
  –	
  January	
  2012	...
Why Fertilizer
•  Fertilizer offers a unique
conjuncture of business
opportunities
–  Agriculture’s predictable
demand and...
9
•  World	
  popula-on	
  projec-on	
  
10	
  billion	
  people	
  by	
  2100	
  
•  Africa’s	
  populaVon	
  is	
  expec...
10
OUR	
  GROWTH	
  
Botswana Potash
•  Exclusive right to develop potash
present at Sua Pan operation of
Botswana Ash Corporation
•  Historica...
Brownfield Brine
•  Existing operation produces Soda
Ash (NaCO3) and Salt (NaCl) from
the natural brine
•  Brine projects ...
13
OUR	
  OPPORTUNITY	
  
Tilemsi Phosphate
•  50 million tonnes (Mt) inferred
resource on 26 km² drilled
surface
•  High natural grade 24.3% P₂O₅
•...
A	
  Growing	
  Resource	
  
15
TILEMSI	
  PHOSPHATE	
  PROJECT 	
  	
  
INITIAL	
  	
  
INFERRED	
  RESOURCE	
  
50	
  mi...
Phosphate	
  Rock	
  Characterisa-on	
  
16
Test	
  	
   Results	
   Impact	
  
BENEFICIATION	
  
Screening	
  at	
  850	
...
Explora-on	
  Program	
  
17
5 km
• Phases	
  1	
  +	
  2	
  completed	
  
• Oct	
  2013:	
  GQ	
  explora-on	
  
program	...
PEA Highlights (1/2)
18
Project	
  Economics	
   Value	
  
Project	
  Net	
  Present	
  Value	
   US$635	
  million	
  
Di...
PEA Highlights (2/2)
19
Project	
  Parameters	
   Value	
  
Life	
  of	
  Mine	
  based	
  on	
  	
  
the	
  Inferred	
  M...
20
OUR	
  PLAN	
  
Agronomy
•  Great Quest has developed a low cost
phosphate fertilizer alternative for the West
African Market
•  We have c...
Agronomy
•  Extraordinary Results
Corn from the Sikasso Region
Popular crop in a significant
growing region, powerful yiel...
Small Scale Production
•  Markala Production Facility
–  40,000 tonnes of product annually
–  Proposed commissioning late ...
Full Commercial Phosphate Facility
•  Located in Gao / Bourem
•  Construction 2016
•  Initial capital expenditure $143 mil...
Our	
  People	
  
25
	
  Interna-onal	
  Board	
  of	
  Directors	
  
John	
  A.	
  Clarke	
  –	
  Chairman	
  	
  
Former...
Our Team
26
	
  Interna-onal	
  Board	
  of	
  Directors	
  
Jed	
  Richardson	
  –	
  President	
  and	
  CEO	
  
Former	...
 
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
   27
Gr...
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  1. 1. Click to edit Master title style GQ FERTILIZER TSX-V AFRICA BUILDING FOR GROWTH WHERE THE WORLD IS GROWING
  2. 2. Disclaimer This presentation contains forward-looking statements or forward-looking information within the meaning of applicable securities legislation (hereinafter collectively referred to as "forward-looking statements") concerning the Company's plans for its properties, projects, operations, subsidiaries and other matters. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management regarding operations of the Company which are subject to a variety of business and market risks, including political 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 that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements 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 important risks and uncertainties that could affect forward-looking statements are also described in the Company's continuous disclosure filings made with Canadian securities regulatory authorities, which are available at the SEDAR website and on the Company’s website. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, they may adversely affect the Company’s business and prospects and actual results may vary materially from those 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 by applicable 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 are considered too speculative geologically, to have the economic considerations applied to them that would enable them to be categorized as "Mineral Reserves". There is no certainty that the PEA will be realized, as Mineral Resources do not demonstrate economic viability. The technical information in this presentation has been reviewed by Jed Diner, MSc. P.Geol., a qualified person as defined by National Instrument 43-101. 2
  3. 3. Stock  Informa-on   3 As  of  March  6,  2014   STOCK  INFORMATION     TSX-­‐V:  GQ   SHARES  OUTSTANDING   48,817,941   -­‐OPTIONS   3,815,000   -­‐WARRANTS   4,356,293   FULLY  DILUTED   54,989,234   52-­‐WEEK  LOW/HIGH   $0.45/$2.54   3-­‐MONTH  AVG.  VOL.   77,780   MARKET  CAP.   $91.8M   Le  Main  de  Fa7ma  –  Northern  Mali  
  4. 4. Our Goal •  Building a Pan African Fertilizer Manufacturer –  Developing agricultural mineral projects for local production of field ready fertilizers –  For regional delivery •  Targeting –  Phosphate Direct Application and SSP, At Surface Potash Brines, Sulfur and Lime Projects –  Establishing centers in areas of rapid agricultural growth West, East and Southern Africa 4 IER  Sotuba  Test  Plot  (CoGon)  
  5. 5. Our Strategy Follow strict development criteria •  Must reach field ready product with compelling investment returns on capital expenditure of less than $200MM •  Existing market sufficient to absorb planned production within cost effective transport radius –  Does not include growth potential –  Does not include out of Africa export potential Africa’s history as exclusively an exporter of resources means many projects that fit our criteria have been ignored for logistical reasons This strategy also insulates our proposed business from the ups and downs of the world fertilizer market, hinging its success to the revolution in African Agriculture already underway and growth in global food demand 5
  6. 6. 6 Source:  EBG  Capital   60% OF THE WORLD’S ARABLE LAND IS IN AFRICA According   to   Zürich-­‐based   advisory   firm,   EBG   Capital,   sub-­‐Saharan   Africa   offers   590m   hectares   of   available   cropland,   while   the   rest   of   the   world   offers   just   380m   hectares.   •  Only   23-­‐30%   of   arable   land   in   W.   Africa   is   currently  culVvated   •  Low  ferVlizer  usage  (9kg/ ha   vs.   101kg/ha   in   the   rest  of  the  world)   Why  Africa  
  7. 7. 7Source:  GRAIN,  AGRA  Alliance,  McKinsey       Agribusiness  project  sizes  –  January  2012     (investment  underway  or  completed  in  ‘000s  USD)   “Africa   has   the   poten-al   to   create   a           trillion-­‐dollar  food  market”  (World  Bank)   •  62%  of  all  large-­‐scale  land  acquisiVons   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.   •  Nigeria’s  agricultural  sector  could  grow   by  a  colossal  160%  by  2030,  rising  from   $99  billion  in  2010  to  $256  billion  two   decades  later.   AFRICA IS ATTRACTING LARGE AGRIBUSINESS INVESTMENTS Why  Africa  
  8. 8. Why Fertilizer •  Fertilizer offers a unique conjuncture of business opportunities –  Agriculture’s predictable demand and strengthening growth profile –  Mining’s expected rates of return •  An ideal way to profit from two widely expected market trends –  Increasing global food demand –  African development 8 Irriga7on  Canal  –  Niono,  Mali  
  9. 9. 9 •  World  popula-on  projec-on   10  billion  people  by  2100   •  Africa’s  populaVon  is  expected   to  double  to  2  billion  by  2050.   •  A  more  affluent  world  will  consume  more  food   Grain  required  to  produce  1kg  of  meat  (Sources:  SproG)      World  popula@on  growth          Arable  land  per  capita   •  The  amount  of  arable  land  per  capita  is  shrinking   World  popula@on  projec@on     Why  Fer-lizer  in  Africa  
  10. 10. 10 OUR  GROWTH  
  11. 11. Botswana Potash •  Exclusive right to develop potash present at Sua Pan operation of Botswana Ash Corporation •  Historical work published by the World Bank suggests that the Sua Pan salar was capable of producing 163,000 tons per year, including potential to produce 21,000 tpy of K2SO4 •  KCl concentrations in bitterns are reported to exceed 10.9 grams per litre (g/L), which is more than a 100% improvement over the native brine concentration of 4.3 g/L as measured by Botswana Ash. This compares favorably with potash concentration in the brine from the Dead Sea of 6.2 g/L, 11 Sua  Pan  Potash     Brine  Project  
  12. 12. Brownfield Brine •  Existing operation produces Soda Ash (NaCO3) and Salt (NaCl) from the natural brine •  Brine projects have some of the lowest operating and capital costs in the world •  Potential plant would function as additional circuit on existing operation •  Leverages existing infrastructure reducing potential capital expenditure •  Advancing to definitive agreement 12
  13. 13. 13 OUR  OPPORTUNITY  
  14. 14. Tilemsi Phosphate •  50 million tonnes (Mt) inferred resource on 26 km² drilled surface •  High natural grade 24.3% P₂O₅ •  Significant upside potential, project covers 1,206 km² (3 licenses) •  Strategic source of reactive & soluble phosphate for direct application, low cost fertilizer as an NPK component 14 Segou  Pilot   Plant  
  15. 15. A  Growing  Resource   15 TILEMSI  PHOSPHATE  PROJECT     INITIAL     INFERRED  RESOURCE   50  million  tonnes   AVERAGE     PHOSPHATE  GRADE   24.3%  P₂O₅   CONCENTRATE  GRADE   25-­‐38%  P₂O₅   CONCENTRATE  QUALITY   Low  levels  of  contaminants   (ie.  cadmium)   BENEFICIATION   Easy  separaVon  and   treatment   DEPOSIT  DEPTH   Near  surface     Open  pifable  resource   With  a  high  natural  P₂O₅  grade  and  significant  exploraVon  upside,       the  Tilemsi  deposit  is  developing  into       a  world-­‐class  phosphate  resource.   Tilemsi  Valley  
  16. 16. Phosphate  Rock  Characterisa-on   16 Test     Results   Impact   BENEFICIATION   Screening  at  850  microns  to   achieve  P2O5  grades     of  36.8%   Via  simple  screening  process,  the  product  can     easily  beneficiated  to  up  to  36.8%  P₂O₅   SOLUBILITY   71.1%  soluble  P2O5     in  citric  acid   62.5%  soluble  P2O5     in  formic  acid   The  rock  solubility  shows  that  it  is  able  to  compete  with  other   chemical  ferVlizers,  as  ferVlizers’  effecVveness  is  based  on  immediate   availability  of  the  nutrients   GRANULATION   Successfully  produced  granules   sized  1-­‐4mm   The  product  can  easily  be  granulated,  allowing  the  product  to   withstand  transportaVon  and  be  used  as  a  component  of  NPK   blended  ferVlizer   Characteriza-on   tests  indicate:   Tilemsi  natural  phosphate  (TNP)  meets  or   exceeds  market  specificaVons  for   beneficiaVon,  solubility  and  granulaVon.   TNP  can  be  used  as  either  as  very  low  cost   phosphate  component  for  blended  NPK   ferVlizer  or  as  a  direct  applicaVon  ferVlizer.  
  17. 17. Explora-on  Program   17 5 km • Phases  1  +  2  completed   • Oct  2013:  GQ  explora-on   program  to  resume   Map  of  Tilemsi  Phosphate  Project  showing  our  concessions     on  remote  sensing  and  drilling  program  (completed  and  planned)   589  sq.km   417  sq.km   200  sq.km  
  18. 18. PEA Highlights (1/2) 18 Project  Economics   Value   Project  Net  Present  Value   US$635  million   Discount  Rate     10%   Project  Internal  Rate  of  Return     33%   Equity  Holder  IRR  (40%  Equity/60%  Debt)   42%   Payback  Period   3.7  Years   CEO  Jed  Richardson  discussing  life  in  Gao  with  Tuareg  merchant   Project has powerful potential social impacts alongside obvious economic benefits •  Directly addresses soil poverty issues in Sahel soils –  Cotton production has fallen 50%/ha planted in last 10 years •  Increased crop yields reduce food security concerns in West Africa •  Provides new export product for gold dependent Malian economy •  Brings industrial development to Mali’s troubled north –  Necessary step in ensuring a lasting peace in the region
  19. 19. PEA Highlights (2/2) 19 Project  Parameters   Value   Life  of  Mine  based  on     the  Inferred  Mineral    Resource  esVmate   20  years   Maximum  Rock  Mined  (at  full  capacity)   1  M  tonnes/year   Pre-­‐OperaVonal  Cost   US$13  M   IniVal  Capital  Cost   US$  143  M   OPEX  Phosphate  Rock  @36%  P₂O₅   (powder  average  ex  plant)   US$  59  per  tonne     OPEX  Hyper  Phosphate  @36%  P₂O₅   (granulated  avg  ex  plant)   US$  95  per  tonne   FerVlizer  Products  Supplied  at  Full  Capacity    1.18  M  tonnes/year   Sales  Mix:  NPK  /  Direct  ApplicaVon   78%  /  22%   Assump-ons   Value   Product   Price   Discount   to   imported   phosphate   cost   in   Malii   20%   Average  transport  cost  raVo  per  tonne  per  km   US$  0.082   Delivered  Price  of  Diesel  for  Energy  ProducVon   US$1.10/litre   Equity  to  Government  on  Mining     20%   RoyalVes  on  Mine  ProducVon     3%   ConVngency  in  IniVal  Capital  Cost  (12%)   US$  14  M   PoliVcal  Risk  Insurance  Premium  (@  12%)  incl.  in  CAPEX   US$  11  M   Interest  Rate  per  annum  (LIBOR  +  Premium)   7.8%  
  20. 20. 20 OUR  PLAN  
  21. 21. Agronomy •  Great Quest has developed a low cost phosphate fertilizer alternative for the West African Market •  We have completed initial field agronomic testing –  Conducted with IER (Institute of Rural Economics), administered by Dr. Lamine Traore –  11 Test plots in major agricultural zones of Mali –  Cotton, rice, corn, millet, sorghum, ground nut, cow pea –  Currently running first season of multi-stage test program –  1st Quantitative results December 2013 •  Replicate trials in neighbouring West African markets 21 Granulated  Tilemsi  Phosphate  –  35%  high  grade,   27%  medium  grade  
  22. 22. Agronomy •  Extraordinary Results Corn from the Sikasso Region Popular crop in a significant growing region, powerful yield response. 22 Phosphate  type   Quan-ty   (Kg/ha)   N   (%)   P   (%)   K   (%)   Yield   (kg/ha)   Diammonium  Chemical   100   15   15   15     2,156   GQ  35%  Granulated     100   11   18   2   3,858   Tilemsi  Powder   300   -­‐   24   -­‐   2,597   Phosphate  type   Quan-ty   (Kg/ha)   N   (%)   P   (%)   K   (%)   Yield   (kg/ha)   Diammonium  Chemical   100   15   15   15     1,751   GQ  35%  Granulated     100   11   18   2   2,192   Tilemsi  Powder   300   -­‐   24   -­‐   1,728   Phosphate  type   Quan-ty   (Kg/ha)   N   (%)   P   (%)   K   (%)   Yield   (kg/ha)   Diammonium  Chemical   65   18   46   -­‐     904   GQ  27%  Granule  +  M4   100   -­‐   27   -­‐   1013   Tilemsi  Powder   300   -­‐   24   -­‐   794   Non irrigated Rice from Bamako Region Challenging crop given variable water availability, benefiting from whole nutrient nature of GQ product Peanuts from Kita Region Medium grade product was tested with solubility aids, an ultra low cost option for subsistence crops
  23. 23. Small Scale Production •  Markala Production Facility –  40,000 tonnes of product annually –  Proposed commissioning late 2014 –  Expected cost $15 million •  Market Building Step –  For manufacture and sale of product for Malian market –  Will also provide material for commercial testing by future large consumers –  Will be used to establish product pricing and off take agreements for larger planned facility •  Will continue to be used to test and develop new products once large facility is built 23 Birkenmayer  Granulator  –  Johannesburg,  South  Africa  
  24. 24. Full Commercial Phosphate Facility •  Located in Gao / Bourem •  Construction 2016 •  Initial capital expenditure $143 million •  Construction employment –  Potentially 300 direct and indirect new jobs during plant construction •  Operation employment –  200+ Full time jobs in the plant, plus drivers, miners and support staff –  Mine life 50+ years with potential to grow with more exploration •  1 million tonnes of annual production •  Consumption in Mali and export through out West Africa 24 Trucks  in  Gao,  moving  good  to  and  from  Bamako,  Algieria  and  Niger  
  25. 25. Our  People   25  Interna-onal  Board  of  Directors   John  A.  Clarke  –  Chairman     Former  CEO  of  Nevsun  Resources  and     ExecuVve  Director  of  AshanV  Goldfields     Victor  Jones  –  Director     30  years  of  experience  in  senior  execuVve  and  board  posiVons  in   public  mineral  exploraVon  and  technology  companies   Ehud  Levy  –  Director     Phosphate  manufacturing  industry  consultant  with  a  30-­‐year   career  with  Bateman  Engineering  and  Rotem   Gordon  Peeling  –  Director     Former  President  of  Mining  AssociaVon  of  Canada  (MAC)  with  30   years     of  mining  experience  in  the  public  and  private  sectors   David  Shaw  –  Director   Worked  as  Senior  Mining  Analyst  at  Yorkton  SecuriVes;  iniVated   and  developed  Resource  Research  Group  at  Charlton  SecuriVes   Mali  Board  of  Directors   Abdoulaye  Pona-­‐  Director   President  Mali  Chamber  of  Mines,  Founding  director  Mali  Mining   House  SA   Mama  Tapo-­‐  Director   Managing  Director  Societe  InternaVonale  de  Services  et  de   representaVon.  Former  Manager  AshanV  Goldfields  
  26. 26. Our Team 26  Interna-onal  Board  of  Directors   Jed  Richardson  –  President  and  CEO   Former  VP  Corporate  Development  at  Verde  Potash  and  InsVtuVonal   Equity  Research  Analyst  at  Cormark  SecuriVes.   Mohammed  Bouhsane  -­‐  COO   Former  Project  Engineer  in  the  Moroccan  mining  and  metallurgy   industries  working  for  the  ONA  Group  and  OCP.     Jayram  Hosanee  -­‐  Chief  Financial  Officer   Former  CFO  at  Mineral  Hill  and  Golden  Dawn  Minerals.   Mr  Hosanee  holds  a  CGA.   Thomas  Guillot  –  VP  Corp.  Development   Former  CFO  of  NewGen  Asset  Management  investment  fund,  and   Management  Consultant,  Ministère  de  l’Enfant  et  la  Famille,  Mali.   Marie-­‐France  Dikizeyeko  –  Mali  Manager   Former  Senior  ExploraVon  Geologist  at  Randgold  Mali,    Geological   consultant  for  Nevsun  and  AdministraVve  Manager  for  Iamgold  Mali.    
  27. 27.                                                 27 Great Quest Metals Ltd TSX-V: GQ Suite 303, 95 King Street East, Toronto, ON M5C 1G4 +1 416 849 9203 WWW.GREATQUEST.COM CEO Jed Richardson Tel (CDN) +1 416.566.8134 Tel (SA) +27 (72) 7206539 Tel (Mali) +223 90 08 25 09 Email jed@greatquest.com
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