The document summarizes Potash Ridge Corporation's Premium Potash Project in Utah. It discusses the project's proven management team, the large surface deposit of alunite ore that can be processed into sulphate of potash (SOP) fertilizer, and the prefeasibility study showing positive economics including a $1 billion NPV and 20.5% IRR over a 40-year mine life. The project benefits from the region's mining infrastructure and support, as well as an advanced permitting process.
South Boulder Mines (ASX:STB) Investor Presentation November 2014Symposium
November 2014 – South Boulder Mines ASX:STB presented their latest investment update to over 300 investors in Sydney and Melbourne.
In this investor update Managing Director, Paul Donaldson gives an overview of their current position and opportunities.
For more information about South Boulder Mines, visit http://www.southbouldermines.com.au/
For more information about Symposium’s Investor Roadshows, visit http://symposium.net.au/InvestorRoadshow/
Cypress Development (TSX.V: CYP) (OTCQX: CYDVF) is a Canadian based advanced stage lithium exploration company, focused on developing its 100%-owned Clayton Valley Lithium Project in Nevada, USA. Work completed by Cypress led to the discovery of a world-class resource of lithium-bearing claystone adjacent to the Albemarle Silver Peak mine, North America's only lithium brine operation. Cypress is advancing its Clayton Valley Lithium Project in Nevada towards the production of high-purity lithium hydroxide suitable for tier one battery usage.
Objective Capital's Global Resources Investment Conference 2011
Stationers' Hall, City of London
27-28 September 2011
Day 1- Session 3: Strategic metals – the resources everybody wants
Speaker: John Clarke, Great Quest Metals
Cypress Development (TSX.V: CYP) (OTCQB: CYDVF) is a Canadian advanced stage lithium company, focused on developing its 100%-owned Clayton Valley Lithium Project in Nevada, USA. Work completed by Cypress led to the discovery of a world-class resource of lithium-bearing claystone adjacent to the Albemarle Silver Peak mine, North America's only lithium brine operation. The results of a positive Pre-Feasibility Study for the Clayton Valley Lithium Project were announced by Cypress Development in June 2020.
South Boulder Mines (ASX:STB) Investor Presentation November 2014Symposium
November 2014 – South Boulder Mines ASX:STB presented their latest investment update to over 300 investors in Sydney and Melbourne.
In this investor update Managing Director, Paul Donaldson gives an overview of their current position and opportunities.
For more information about South Boulder Mines, visit http://www.southbouldermines.com.au/
For more information about Symposium’s Investor Roadshows, visit http://symposium.net.au/InvestorRoadshow/
Cypress Development (TSX.V: CYP) (OTCQX: CYDVF) is a Canadian based advanced stage lithium exploration company, focused on developing its 100%-owned Clayton Valley Lithium Project in Nevada, USA. Work completed by Cypress led to the discovery of a world-class resource of lithium-bearing claystone adjacent to the Albemarle Silver Peak mine, North America's only lithium brine operation. Cypress is advancing its Clayton Valley Lithium Project in Nevada towards the production of high-purity lithium hydroxide suitable for tier one battery usage.
Objective Capital's Global Resources Investment Conference 2011
Stationers' Hall, City of London
27-28 September 2011
Day 1- Session 3: Strategic metals – the resources everybody wants
Speaker: John Clarke, Great Quest Metals
Cypress Development (TSX.V: CYP) (OTCQB: CYDVF) is a Canadian advanced stage lithium company, focused on developing its 100%-owned Clayton Valley Lithium Project in Nevada, USA. Work completed by Cypress led to the discovery of a world-class resource of lithium-bearing claystone adjacent to the Albemarle Silver Peak mine, North America's only lithium brine operation. The results of a positive Pre-Feasibility Study for the Clayton Valley Lithium Project were announced by Cypress Development in June 2020.
Cypress Development (TSX.V: CYP) (OTCQB: CYDVF) is a Canadian advanced stage lithium company, focused on developing its 100%-owned Clayton Valley Lithium Project in Nevada, USA. Work completed by Cypress led to the discovery of a world-class resource of lithium-bearing claystone adjacent to the Albemarle Silver Peak mine, North America's only lithium brine operation. The results of a positive Pre-Feasibility Study for the Clayton Valley Lithium Project were announced by Cypress Development in June 2020.
1. Premium Potash Project
Driven by a
Proven Management Team
TSX
:
PRK
OTCQX
:
POTRF
September
2014
2. FORWARD LOOKING STATEMENTS
2
Certain statements in this presentation may constitute "forward-looking" statements which involve
known and unknown risks, uncertainties and other factors which may cause the actual results,
performance or achievements of Potash Ridge Corporation (the "Corporation"), or industry results, to
be materially different from any future results, performance or achievements expressed or implied by
such forward-looking statements. When used in this presentation, such statements use such words
as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate" and other
similar terminology. These statements reflect the Corporation's current expectations regarding future
events and operating performance and speak only as of the date of this presentation. Forward-looking
statements involve significant risks and uncertainties, which include, but are not limited to the factors
discussed under “A Cautionary Note Regarding Forward Looking Statements” and "Risk Factors" in
the Corporation’s Annual Information Form dated March 27, 2013, and should not be read as
guarantees of future performance or results, and will not necessarily be accurate indications of
whether or not such results will be achieved. Although the forward-looking statements contained in
this presentation are based upon what management of the Corporation believes are reasonable
assumptions, the Corporation cannot assure investors that actual results will be consistent with these
forward-looking statements. These forward-looking statements are made as of the date of this
presentation and are expressly qualified in their entirety by this cautionary statement. Subject to
applicable securities laws, the Corporation assumes no obligation to update or revise them to reflect
new events or circumstances.
3. Focused on near term sulphate of
potash (“SOP”) production at its
Blawn Mountain property in Utah
3
SOP 645,000 tons average per annum
40 year Project Life backed by reserves
4. EXPERIENCED AND PROVEN MANAGEMENT
Guy Bentinck President & CEO
Chartered Accountant;
20 years mining/resource experience
Sherritt: CFO and SVP Capital Projects
Ross Phillips Chief Operating Officer
10 years experience in large resource and
energy sector projects
Sherritt, Capital Power
Jeff Hillis Chief Financial Officer
Chartered Accountant;
10 years mining sector finance, including CFO
of several public mining companies
Iberian Minerals, Excellon, Falconbridge
Paul Hampton VP, Project
Management
Geologist and Metallurgical Engineer;
~30 years experience in design, construction,
start-up and management of mineral processing
facilities
SNC, Washington Group, Outotec
OVER 80 YEARS COMBINED EXPERIENCE
4
5. COMPETITIVE ADVANTAGES
Premium potash product with supply deficit that cannot be met by existing production
processes; 180% premium over MOP
Current SOP consumption is ~5 million tpa, demand potential is 10-12 million tpa
Large surface mineral deposit - low cost and low risk mining, with easy access to ore for
test work. Known process – existing production facility in Azerbaijan
Reserves supporting 645,000 tons of SOP production per annum over 40 year mine life
plus two additional areas of potential resources
Established infrastructure nearby, designated development lands and efficient state
permitting; no federal permits for plant site
Water rights, large mine operations and groundwater discharge permits all secured.
Only major permit remaining (air permit) will be completed in parallel with feasibility study.
PFS completed November 2013: $1.0 billion NPV at 10%; 20.5% after tax IRR; excludes
potential revenue from alumina rich material
Mining friendly jurisdiction with strong state and municipal government support.
MOUs under negotiation for $641m of support infrastructure, project financing expression
of support received from Export Development Canada
5
7. POTASH:
ESSENTIAL TO THE WORLD’S FOOD SUPPLY
No known substitute
Increasing world population
Growing per capita income
Decreasing arable land
Increasing use of biofuels
POTASH WORLD DEMAND +5% EXPECTED ANNUAL
DEMAND TO 2016; SOP HIGHER GROWTH POTENTIAL
7
8. SOP: PREMIUM FERTILIZER
Sulphate of Potash
(SOP)
Muriate of Potash
(MOP)
50% K2O Equivalent 60% K2O Equivalent
17% S 0% S
<1.0% Cl 45% Cl
4.8 million tonnes sold in 20131 50 million tonnes sold in 20131
Improves yield, quality, taste
and enhances shelf life1
Crop quality/yield diminish as
chloride builds up1
POTASSIUM AND SULPHUR ARE ESSENTIAL NUTRIENTS
8 1 CRU 2013
Chemical makeup assumes 92.5% K2SO4 and 95% KCl product
* Within target markets
Consumption of
SOP restricted by
limited production
capacity, with little
expansion potential
SOP share of potash
market:
Current: 5 Mt
Potential: 10-12 Mt*
Trend toward high
nutrient fertilizers
Trend towards pricing of
SOP based on
incremental revenue
through yield/quantity
improvements vs.
premiums over MOP
9. SOP – A DISTINCT & VALUABLE
POTASH PRODUCT
Especially valued for chloride sensitive crops,
SOP improves yields on high value crops such as:
Fruits
Vegetables
Nuts
Horticultural Plants
Tobacco
Tea
Coffee
Dry/Salty soil
9
10. SOP MARKET DYNAMICS
10 1CRU 2013
SOP Consumption by Region
Europe
24%
N.
America
7%
C & S
America
6%
Africa
5% RoW
China
49%
9%
Region Process
Method
World
Capacity Process
Inputs Products Avg
Cost
/
Ton1
Future
Outlook
China/
Europe
Mannheim 2.3Mt
43%
• MOP
• Sulfuric
Acid
• Energy
• SOP
• Hydrochloric
Acid
$453
High
Cost/
by-‐product
limits
growth
Europe MOP
and
Kieserite
1.2Mt
22%
• MOP
• Kieserite
• Energy
• SOP
• Magnesium
Chloride
$440
No
addiQonal
deposits
China/
USA/
Chile
Salt
Lakes 1.9Mt
35%
• Lake
Brines
• Energy
• SOP
• Magnesium
Chloride
• Sodium
Chloride
$381
No
addiQonal
suitable
lakes
Existing SOP Production by Process
New sources of SOP from these existing
processes are unlikely due to lack of
primary sources and difficulties
surrounding secondary source production.
CRU predicts SOP consumption
of 9,500,000 tonnes per annum
by 2019 – where will this
production come from?
11. SOP PREMIUM PRICE TRENDS
11
Recent quotes from blenders in Uberaba, Brazil $750/tonne
Compass Q2/14 realized price $738/tonne1
U.S. $/tonne
800.0
700.0
600.0
500.0
400.0
300.0
200.0
100.0
POT
-‐
North
America
(MOP)
CMP
-‐
(SOP)
1
Compass
Minerals
Q2
2014
Report,
2
Potash
Corp
Q2
2014
Report
Potash Corp Q2/14 realized price $263/tonne2
-‐
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2012
2013
2014
CURRENT PREMIUM 180% FOR SOP IN US
12. SOP MARKET TARGETS
SOP consumption: 385,000 tons1
Potential consumption: 920,000 tons2
Large scale production of chloride intolerant crops such as nuts in California
and citrus fruits in Florida drive a large part of US SOP demand. Consumption
of these crops continues – e.g. Almond crops have grown by 7% per year
since the mid 1990s.
SOP consumption: 42,000 tons per year2 (0.4% of total potash
consumption)
Potential consumption: 2.1 million tons2
Brazil is the world’s largest grower of coffee, soybeans and citrus fruits, all
SOP crops. Low consumption is entirely due to lack of SOP availability.
SOP consumption 2.5 million tons per year1
Potential consumption: 5.5 million tons per year2
China produces close to half of the world’s fruits and vegetables, and nearly
one-third of the world’s tobacco and tea. SOP consumption almost doubled
between 2007 and 20121, with large untapped growth potential.
SIGNIFICANT GROWTH POTENTIAL
EASY ACCESS TO LOCAL MARKETS
United States
Brazil
China
12 1 CRU 2013
2 From PRK Study August 2013, based on crops that are best suited for SOP
14. PROJECT OVERVIEW
ANTICIPATED MINE RAMP-UP IN 2017
14
Large alunite deposit, which is expected to be
processed into SOP, and possible alumina rich
material
Average 645,000 tons of SOP per annum
Historical work expedites project development
Mineral deposit to be surface mined
Proven process backed by extensive metallurgical
testing
16. UTAH: AN ATTRACTIVE
MINING JURISDICTION
Major resource producer
Existing potash production
Best state for business1
Top quartile mining jurisdiction2
ALMOST 100 YEARS OF POTASH PRODUCTION
1Forbes Magazine, December, 2012 2Fraser Institute, April, 2013
16
17. OUR LAND ADVANTAGE
State-owned land designated for
development
Leasehold and royalty agreements
negotiated
No known adverse environmental or
social issues
Roads, rail, transmission and natural gas
nearby
Construction materials, equipment
suppliers and skilled labour force
17
MUNICIPAL AND STATE SUPPORT OF PROJECT
18. 18
ADVANCED PERMITTING STAGE
The following table identifies the various permits and approvals that the Corporation has or still
needs to obtain prior to start-up of the mine and processing plant:
Major&Required&Permits&
Major&Permits&or&Approvals& Issuing&Agency& Completed&
Exploration+Permit+ Utah+ Division+ of+ Oil,+ Gas+ and+
Mining+
October,+2011+
US+ Army+ Corps+ of+ Engineers+
Jurisdictional+Waters+Concurrence+
US+Army+Corps+of+Engineers+ March,+2014+
Water+Appropriations+ Utah+Office+of+State+Engineer+ May,+2014+
Groundwater+Permits+ Utah+Division+of+Water+Quality+ July,+2014+
Large+Mine+Operation+Approval& Utah+ Division+ of+ Oil,+ Gas+ and+
Mining+
August,+2014
Air+Quality+Permit+ Utah+Division+of+Air+Quality+ +
19. EXTENSIVE DEVELOPMENT COMPLETED IN 1970’s
PREVIOUS WORK ACCELERATES PROJECT DEVELOPMENT
19
• Approximately $25 million spent (~$100 million
in today’s dollars).
• Programs included:
Drilling, Resource estimate, Feasibility
Study, mine plan, Engineering,
Permitting and 3-year operation of a
pilot plant processing up to 11 tons
per day.
• Alumina originally primary product;
SOP was by-product
• Project ultimately shelved due to poor
economic conditions in early 1980s
• Potash Ridge owns all historical data
20. SIMPLE PROVEN FLOWSHEET
Alunite
Crushing & Grinding
Calcination
Water Leach
Alumina Rich Material
• Plant to process 10.4 million tons per annum
• Metallurgical testing on-going for Feasibility Study
SO2 Acid Plant Sulphuric Acid
SOP Solution Crystallizing Drying,
Compacting & Sizing SOP
20
• Plant currently operating in Azerbaijan. (Ganja Refinery)
• Flowsheet similar to commercial-scale production
processes historically used in US and Australia.
RECENT EXTENSIVE TEST WORK CONFIRMS FLOWSHEET
21. PREFEASIBILITY STUDY – SUMMARY
• Proven & Probable mineral reserves of 426 million tons;
• Reserves support 40 year mine life, with potential to increase life of operations through
exploration of two additional zones of known mineralization;
• Project after tax Net Present Value (“NPV”) of $1.0 billion using a 10% discount rate:
• Total sales of 26 million tons of SOP over life of mine;
• Unlevered after tax internal rate of return (“IRR”) of 20.5%; payback period of 5 years
after commencement of operations;
• Strong cash flow generation with cash flow from operations of $234 million per annum
excluding the two year ramp up period;
• Approximately 28% of direct capital costs are supported by packaged quotes
1Inclusive of by-product acid revenues and exclusive of royalties; no credit assumed for potential
revenue from the sale of alumina rich material.
21
Economic Indicators
NPV (after tax, at 10%) $1.0 billion
IRR (after tax) 20.5%
Payback period (from commencement of operations) 5 years
Average annual SOP production 645,000 tons
Average annual sulphuric acid production 1,440,000 tons
SOP price (average) $649/ton
Sulphuric acid price (average) $135/ton
Project life 40 years
Initial capital cost (including 15% contingency) $1,124 million
Operating cost (excluding royalties) $173/ton SOP
The economic evaluation is based on
the following assumptions:
• Site construction commences mid
2016;
• Production ramp-up over 2 years
(2017-2018), reaching full
production in 2019;
• SOP pricing from CRU forecast
below current North American
SOP prices;
• Average tax rate of 35%.
22. SOP CAPITAL COST BREAKDOWN1
22
CAPITAL
COST:
$1.124
billion
(15%
conKngency)
14%
SOP
Leaching,
CrystallizaQon
and
Drying
42%
31%
ConQngency,
Indirects
and
Infrastructure
13%
CalcinaQon
Crushing
&
Grinding
1 Excludes utilities and other infrastructure
not incurred by Potash Ridge ($641 million):
Build-own-operate arrangements
under negotiation.
Acid Plant ($280 million)*
Natural Gas Line ($83 million)
Water Treatment Plant ($60 million)*
Expect to access government
funding programs
Rail Spur ($76 million)
Access road ($53 million)
To be incurred by Mine Contractor Mine Capital ($89 million)
*MOU
signed
with
Tetra
Tech
contemplates
their
parQcipaQon
to
build,
own
and
operate
these
assets
23. OPERATING COSTS: $173/TON OF SOP
Direct Plant and Mine Cash Production
Cost $414
Credit for Value of Acid $(302)
Subtotal of Direct Plant and Mine Cash
Production Cost $112
Site G&A, Property Taxes & Corporate
Overhead $27
3rd Party Facility Charges $34
Total before royalty $173
Royalties $45
Total Cash Production Cost $218
23
Total Cash Production Costs
7%
Other
($14M)
14%
RoyalQes
($33M)
Annual Average
Cost($)/Ton SOP
(Constant 2013 $US)
Excludes
credit
for
potenQal
alumina
rich
material
revenue.
Includes
15%
conQngency
(excluding
non-‐energy
and
labour
costs).
Potash Ridge Salt Lakes MOP/ Sulphate
Salts
Mannheim
Process
Cash Production Costs
Avg Cost/Ton
$381
$440
$453
$173
Potash Ridge
Expected In Production
1 CRU 2013
1
1 1
24. PREFEASIBILITY STUDY –
RESERVES ESTABLISHED
Drilling to date has focused
only on two of the four areas
within the 15,400 acre land
parcel
Supports 40 years of
operations
Reserves demonstrate the
economic and technical
viability of the Project
24
Mineral Reserves by Category November 6, 2013
Reserve Category
Total
Proven
('000 tons)
Probable
('000 tons)
Alunite Ore (ROM tons) 136,254 289,540 425,794
Ore (average K2O (%) grade) 3.56 3.49 3.51
Ore (average K2SO4 (%) grade) 6.59 6.46 6.49
SOP (tons) 8,457 17,970 26,427
Sulphuric Acid (tons) @ 98% Purity 18,888 40,136 59,024
25. STRONG MARKET FOR SULPHURIC ACID
25
US market is world’s largest importer of sulphuric acid, mostly from Canada and
through the Gulf Coast (from Europe and Mexico)
Current imports of 3 million tonnes per annum; expected to increase to 5 million
tonnes per annum by 2018
• Increase in market demand from mine expansions, new development and
increases in industrial use
• Imports from Canada and Mexico expected to decline due to lower production
of smelter acid (Canada) and higher domestic consumption (Mexico)
Consumers looking for stable supply for existing operations and to satisfy growth
plans
Mountain West US market approximately 5.1 million tonnes per annum and
expected to grow to 6.5 million tonnes by 2018.
MOU in place for sale of approximately 20% of acid production
26. • Leaching process leaves alumina rich material which, with beneficiation, may be used as
a substitute to bauxite as a feedstock into a Bayer alumina production facility.
• Metallurgical testing confirmed the alumina in this material is soluble in high temperature
caustic solutions
• May also be acceptable as a raw material feed for low temperature refineries
• Further testing is underway to determine whether the alumina rich material could meet
specifications for feed material in the production of ceramic proppants in North America.
• PFS economics do not include potential revenue from the sale of approximately 1.2
million tonnes of this alumina rich material
• Landed cost of bauxite in China is approximately $85 per tonne
26
UPSIDE POTENTIAL FROM LEACH RESIDUE
SOURCES OF SMELTER FEED TO CHINA
Blawn
Mountain,
Utah
Boke,
Guinea
Trombetas,
Brazil
Kingston,
Jamaica
Distance to Shandong Province, China (nm) 5,556 11,128 10,815 9,051
Port Vancouver Conakry Aratu Jamaica
27. MILESTONES
27
Preliminary Economic Assessment issued November, 2012
Metallurgical test program initiated January, 2012
Pilot Plant Test work initiated & SOP from test work produced May, 2013
Prefeasibility Study supporting 40-year mine life issued December, 2013
Large Mining Permit Application submitted December, 2013
Water Rights Granted May, 2014
Ground Water Permit approved July, 2014
Large Mining Permit approved August, 2014
Strategic Partnership with Tetra Tech announced August, 2014
Air Quality Permit 1H 2016
Issue Feasibility Study 2H 2015
Complete metallurgical test program 2H 2015
Receive final permits 1H 2016
Mine construction start up Mid 2016
Ramp up of mining Mid 2017
Note: Timelines are based on obtaining sufficient financing to advance Feasibility Study
Achieved Expected
28. CAPITAL STRUCTURE
28
Millions
Common Shares 81.7
Non-voting Common Shares 5.1
Total Shares Outstanding 86.8
Warrants – $ 0.50(1) 10.7
Warrants – $1.00(2) 5.1
Broker options/warrants 3.4
Stock options(3) 7.2
Total Fully Diluted Shares 113.2
As at June 30, 2014
1. Expiry occurs on November 27, 2014
2. Expiry occurs on December 5, 2014
3. Stock options have exercise prices varying between $0.14 and $1.00. Expiry dates occur between 2021 and 2024
INSIDERS HOLD 5%, 10% FULLY DILUTED
29. COMPETITIVE ADVANTAGES
Premium potash product with supply deficit that cannot be met by existing
production processes; 180% premium over MOP
Current SOP consumption is ~5 million tpa, demand potential is 10-12 million tpa
Large surface mineral deposit - low cost and low risk mining, with easy access to
ore for test work. Known process – existing production facility in Azerbaijan
Reserves supporting 645,000 tons of SOP production per annum over 40 year mine
life plus two additional areas of potential resources
Established infrastructure nearby, designated development lands and efficient state
permitting; no federal permits for plant site
Water rights, large mine operations and groundwater discharge permits all secured.
Only major permit remaining (air permit) will be completed in parallel with feasibility
study.
PFS completed November 2013: $1.0 billion NPV at 10%; 20.5% after tax IRR;
excludes potential revenue from alumina rich material
Mining friendly jurisdiction with strong state and municipal government support.
MOUs under negotiation for $641m of support infrastructure, project financing
expression of support received from Export Development Canada
29
30. CONTACT US
30
Toronto office:
3 Church Street, Suite 600
Toronto, Ontario
M5E 1M2
Phone: 416-362-8640 ext 101
Salt Lake City office:
170 S. Main Street, Suite 500
Salt Lake City, UT
80101
Phone: 801-433-6027
info@potashridge.com
www.potashridge.com