1. Click to edit Master title style
TSX-V:GQ
BUILDING A PAN-AFRICAN
FERTILIZER MANUFACTURER
Corporate Presentation
December 2013

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 forwardlooking 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.
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3. Stock Information
STOCK INFORMATION
TSX-V: GQ
SHARES OUTSTANDING
46,817,942
-OPTIONS
4,285,000
-WARRANTS
2,241,480
FULLY DILUTED
53,344,422
52-WEEK LOW/HIGH
$0.43/$1.36
3-MONTH AVG. VOL.
22,358
MARKET CAP.
$30.90M
As of November 30, 2013
Le Main de Fatima – Northern Mali
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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
IER Sotuba Test Plot (Cotton)
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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
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6. Why Africa
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 cultivated
• Low fertilizer usage
(9kg/ha vs. 101kg/ha in
the rest of the world)
Source: EBG Capital
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7. Why Africa
AFRICA IS ATTRACTING LARGE AGRIBUSINESS INVESTMENTS
“Africa has the potential to create a
trillion-dollar food market” (World Bank)
•
•
•
62% of all large-scale land acquisitions
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.
Source: GRAIN, AGRA Alliance, McKinsey
Agribusiness project sizes – January 2012
(investment underway or completed in ‘000s USD)
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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
Irrigation Canal – Niono, Mali
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9. Why Fertilizer in Africa
• World population projection
10 billion people by 2100
• The amount of arable land per capita is shrinking
• Africa’s population is expected
to double to 2 billion by 2050.
World population growth
Arable land per capita
• A more affluent world will consume more food
World population projection
Grain required to produce 1kg of meat (Sources: Sprott)
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10. OUR OPPORTUNITY
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11. FLAGSHIP PROJECT – ‘TILEMSI PHOSPHATE’
PROJECT HIGHLIGHTS
 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 or as a NPK component
 Experienced management team with track
record in project development and
mineral discovery in West Africa
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12. A Growing Resource
TILEMSI PHOSPHATE PROJECT
INITIAL
INFERRED RESOURCE
50 million tonnes
AVERAGE
PHOSPHATE GRADE
24.3% P₂O₅
CONCENTRATE GRADE
25-38% P₂O₅
CONCENTRATE QUALITY
BENEFICIATION
DEPOSIT DEPTH
Low levels of contaminants
(ie. cadmium)
Easy separation and
treatment
Near surface
Open pittable resource
Tilemsi Valley
With a high natural P₂O₅ grade and significant exploration upside,
the Tilemsi deposit is developing into
a world-class phosphate resource.
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13. Phosphate Rock Characterisation
Characterization
tests indicate:
Tilemsi natural phosphate (TNP) meets or
exceeds market specifications for
beneficiation, solubility and granulation.
TNP can be used as either as very low cost
phosphate component for blended NPK
fertilizer or as a direct application fertilizer.
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 fertilizers, as fertilizers’ effectiveness 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 transportation and be used as a component of NPK
blended fertilizer
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14. Exploration Program
589 sq.km
5 km
• Phases 1 + 2 completed
• Oct 2013: GQ exploration
program to resume
417 sq.km
200 sq.km
Map of Tilemsi Phosphate Project showing our concessions
on remote sensing and drilling program (completed and planned)
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15. PEA Highlights (1/2)
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
Project has powerful potential
social impacts alongside
obvious economic benefits
•
Directly addresses soil
poverty issues in Sahel
soils
–
•
•
•
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
–
CEO Jed Richardson discussing life in Gao with Tuareg merchant
Cotton production has
fallen 50%/ha planted in
last 10 years
Necessary step in
ensuring a lasting peace
in the region
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16. PEA Highlights (2/2)
Project Parameters
Value
Life of Mine based on
the Inferred Mineral Resource estimate
20 years
Maximum Rock Mined (at full capacity)
1 M tonnes/year
Pre-Operational Cost
US$13 M
Initial Capital Cost
US$ 143 M
OPEX Phosphate Rock @36% P₂O₅
(powder average ex plant)
OPEX Hyper Phosphate @36% P₂O₅
(granulated avg ex plant)
US$ 59 per tonne
US$ 95 per tonne
Fertilizer Products Supplied at Full Capacity
1.18 M tonnes/year
Sales Mix: NPK / Direct Application
78% / 22%
Assumptions
Value
Product Price Discount to imported phosphate cost in
Malii
20%
Average transport cost ratio per tonne per km
US$ 0.082
Delivered Price of Diesel for Energy Production
US$1.10/litre
Equity to Government on Mining
20%
Royalties on Mine Production
3%
Contingency in Initial Capital Cost (12%)
US$ 14 M
Political Risk Insurance Premium (@ 12%) incl. in CAPEX
US$ 11 M
Interest Rate per annum (LIBOR + Premium)
7.8%
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17. OUR PLAN
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18. Agronomy
• 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
• Major fertilizer purchasers are being
invited to examine in progress trials and
participate in product development
• Replicate trials in neighbouring West
African markets
Granulated Tilemsi Phosphate – 35% high grade,
27% medium grade
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19. Small Scale Production
• Segou / 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
Birkenmayer Granulator – Johannesburg, South Africa
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20. Project Work Schedule
• Process test work – November 2013
– Granulation, filtration, bagging
• Engineering & Design – January 2014
– Process, mechanical, civil & structural, piping, electrical
•
•
•
•
•
Updated Economics – February 2014 (est.$200,000)
Plant construction and test commissioning in South Africa
Containerized shipping to Mali
Erection in Segou/Markala (est. $13 M)
Commercial commissioning – December 2014
IER Niono Test Plot (Rice)
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21. 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
Trucks in Gao, moving goods to and from Bamako, Algeria and Niger
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22. Our People
International Board of Directors
Mali Board of Directors
John A. Clarke – Chairman
Abdoulaye Pona- Director
Former CEO of Nevsun Resources and
Executive Director of Ashanti Goldfields
President Mali Chamber of Mines, Founding director Mali Mining
House SA
Victor Jones – Director
Mama Tapo- Director
30 years of experience in senior executive and board positions in
public mineral exploration and technology companies
Managing Director Societe Internationale de Services et de
representation. Former Manager Ashanti Goldfields
Ehud Levy – Director
Phosphate manufacturing industry consultant with a 30-year
career with Bateman Engineering and Rotem
Gordon Peeling – Director
Former President of Mining Association 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 Securities; initiated
and developed Resource Research Group at Charlton Securities
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23. Our Team
Management
Jed Richardson - President, CEO and Director
Mohammed Bouhsane - COO
Former VP Corporate Development at Verde Potash and
Institutional Equity Research Analyst at Cormark Securities.
Former Project Engineer in the Moroccan mining and metallurgy
industries working for the ONA Group and OCP.
Jayram Hosanee - Chief Financial Officer
Thomas Guillot - VP Finance
Former CFO at Mineral Hill and Golden Dawn Minerals.
Mr Hosanee holds a CGA.
Former CFO of NewGen Asset Management investment fund, and
Management Consultant, Ministère de l’Enfant et la Famille, Mali.
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24. UPCOMING CATALYSTS
Company Catalysts
Selection of Semi-Commercial Plant EPC (Oct. 2013)
Exploration Work in Tilemsi (Oct-Dec 2013)
Agronomical Tests +Demo Plantations (July-Dec 2013)
Sanoukou Gold Plan Announcement (Mill/JV)
Mali Political Catalysts
Potential Mergers & Acquisitions
c
Gradual French Troop Withdrawal (Apr. 13)
12,600 UN Peacekeeping Force Deployment
Return to democratic rule (Aug. 2013)
New government (Sep. 2013)
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25. Great Quest Metals Ltd
TSX-V: GQ
Suite 303, 95 King Street East
Toronto, ON M5C 1G4
WWW.GREATQUEST.COM
CEO
Jed Richardson
Tel (CDN)
+1 416.566.8134
Tel (UK)
+44 7500 433518
Tel (Mali)
+223 90 08 25 09
Email jed@greatquest.com
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