Verde fertilizantes - Verde Potash Plc

amazonplc.com

Verde fertilizantes - Verde Potash Plc

September

2013

At-surface potash in

the heart of Brazil

TSX: NPK

www.verdepotash.com


Disclaimer

This presentation contains certain forward-looking information, which includes but is not limited to, statements with respect to the

Company’s new strategy, the commercial production of ThermoPotash and KCl, design and building of a Flex Plant, timing and

completion of a prefeasibility study, receipt of environmental permits, and the generation of cash flow from Phase 1 of the new

strategy. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual

results, performance or achievements of the Company to differ materially from the forward-looking information. Material risk factors

that could cause actual results to differ materially from such forward-looking information include, but are not limited to, the failure to

obtain necessary regulatory approvals, risks associated with the mining industry in general (e.g., operational risks in development,

exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures;

the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks),

commodity price, demand for ThermoPotash and KCl in Brazil, exchange rate fluctuations and other risk factors set out in the

Company’s most recently filed Annual Information Form under the heading “Risk Factors”. Currently, ThermoPotash is not

commercially produced or sold in Brazil. As a consequence, there is no current market for this product. Should commercial demand

for ThermoPotash fail to develop, the Company’s business model may not be appropriate. Accordingly, readers should not place

undue reliance on such forward-looking information. Material factors or assumptions used to develop such forward-looking

information include, but are not limited to, the demand for ThermoPotash and KCl in Brazil, the ability to secure necessary

environmental and mining permits, the ability to secure financing, and other assumptions set out in the Company’s current technical

report. The Company does not currently intend to update forward-looking information in this news release except where required by

law.

2

Total resources include all categories unless otherwise stated. The grades detailed in this presentation are conceptual in nature.

There has been insufficient exploration to define a mineral reserve. Should the company engage in further exploration, it is uncertain

that it will result in the targets being delineated as a mineral reserve. Readers are cautioned not to rely solely on the summary of

such information contained in this presentation and are directed to complete information posted on Verde’s website

(www.verdepotash.com) and filed on SEDAR (www.sedar.com) and any future amendments to such. Readers are also directed to

the cautionary notices and disclaimers contained herein. Potential investors should conduct their own investigations as to the

suitability of investing in securities of Verde Potash Plc.

All currencies are in Canadian dollars unless otherwise stated.

TSX: NPK


A low capex potash opportunity in Brazil

Verde is advancing the Cerrado Verde potash project, a low capex

opportunity to produce a premium, multi-nutrient potash fertilizer:

ThermoPotash.

The Cerrado Verde project allows for a low capex ThermoPotash project,

while supporting the development of a large scale KCl project concurrently.

Brazil is the largest potash importer globally offering the highest potash

prices of any major market due to its location and logistics.

3

Brazil’s development bank, BNDES, has been a significant source of

capital for Brazilian projects, investing US$75 billion in 2012.

TSX: NPK

3


Verde: Made in Brazil, listed on TSX (NPK)

C$13.3 Million in Cash, no debt 1 .

Significant South America based ownership including entrepreneurs

behind one of the world’s most successful fertilizer companies.

40,986,044 shares fully diluted.

52 week: Hi/Lo C$4.82/C$0.42.

4

Management team has significant experience constructing, operating and

financing similar projects.

1

As at June 30, 2013.

TSX: NPK


Brazilian agriculture in a global context

Brazil is a dominant agricultural powerhouse.

Largest producer globally of sugar, coffee and orange juice.

Second largest producer globally of beef and soybeans.

More than one third of poultry traded globally is produced by Brazil.

Brazil Agriculture

World share 2011/12, %

Orange juice

Sugar

21%

43%

57%

82%

1

1

1

1

5

Soybeans

28%

40%

2

2

Poultry

Coffee

16%

34%

29%

36%

1

3

1

1

Beef

16%

16%

2

2

Corn

Pork

12%

8%

8%

3%

4

3

4

4

0% 20% 40% 60% 80% 100%

Exports Production

Source: USDA Foreign Agricultural Service

TSX: NPK


The Cerrado is the key

The key to Brazil’s growth in agricultural output is the Cerrado.

Thirty years ago, this land was considered unproductive due to its high

acidity and low nutrient level of the soil.

Adding significant quantities of limestone over the past twenty years

addressed acidity, turning this land into a highly productive asset.

The UN Food and Agricultural Organization estimates Brazil has over 400

million hectares of arable land (much of it in the Cerrado), yet only 50

million hectares are currently in use.

6

Source: The Economist

TSX: NPK


millions of tonnes of KCl

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

World’s largest importer of potash

Brazil was the largest importer of potash globally in 2012 at 7.5 million

tonnes of KCl.

Vale operates the only potash mine in the country, which met only 7%

of the country’s needs.

Potash consumption in Brazil has posted a 10-year CAGR of 4.7%,

much stronger than potash consumption globally at 2.3%.

9

8

7

Brazil Potash Consumption

Brazil Potash Consumption by Source

Domestic

production 7%

7

6

5

4

3

2

1

0

Imports 93%

Source: ANDA

Source: ANDA

TSX: NPK


Cerrado Verde hosts 253 million tonnes of in-situ K 2 O

8

Mineral Resources Tonnage (Mt) Avg. K 2 O Grade

Total Indicated

(7.5% K 2 O cut off grade)

Total Inferred

(7.5% K 2 O cut off grade)

71.08 9.2%

2,763.8 8.9%

Source: PEA (February 2012)

TSX: NPK


Privileged location, close to demand centres

KCl Consumption by Key Blender District

9

Source: ANDA 2012, Verde Potash Plc

TSX: NPK


Phase I: Small is beautiful

The Company is now focused on a Phase I project that will require less

capital and will allow it to generate cash flow on an accelerated timeline.

Engineering work is in process on a 1,000 tonne per day kiln that would

serve two purposes:

1. Generate revenue and cash flow from the sale of ThermoPotash (TK).

2. Allow us to seek necessary performance guarantees for a 12,000 tpd

KCl kiln.

10

TSX: NPK


Phased approach reduces risk

• Flex plant (1,000 tpd capacity);

• TK production; and

• Capable of seeking performance guarantees for a 12,000 tpd

KCl kiln.

• Large scale KCl production;

• Technical risk of scale-up is mitigated by the operation of the

Phase 1 flex plant.

11

TSX: NPK


A premium, multi-nutrient potash fertilizer

K Ca Si Mg TK

ThermoPotash is a controlled-release, non-chloride, multi-nutrient

fertilizer that is ideally suited for Brazil.

12

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What are the advantages of TK?

Controlled release

Stays in soil until needed by the plant.

Multi-nutrient

Potassium, Calcium, Silicon, Magnesium and others.

Non-chloride

Limestone content

Suitable for crops that are sensitive to chloride damage;

i.e., coffee, potatoes, tobacco, pineapple

ThermoPotash reduces the acidity of Brazilian soils.

13

Improving Agronomic Efficiency

TSX: NPK 13


Brazil rainfall and limestone data

Average Annual

Rainfall

Brazil Fertilizer vs. Limestone

Consumption

Minas Gerais, Brazil

1,416

Limestone

30.0

Iowa, USA

882

N

3.4

Shandong, China

614

P2O5

3.9

Uttar Pradesh (plains), India

896

K2O

4.4

14

0 200 400 600 800 1000 1200 1400 1600

Rainfall (mm/year)

0 5 10 15 20 25 30 35

millions of tonnes

Heavy rains in the Brazilian

Cerrado increase the appeal of

a fertilizer resistant to leaching.

pH control costs Brazilian farmers

hundreds of millions of dollars

each year.

Farmers accustomed to adding

high quantities of soil conditioner.

TSX: NPK


ThermoPotash vs. KCl

KCl

TK

60% K 2 O content

Contains chloride

7% K 2 O content

Non-chloride

15

Contains only potassium

Contains potassium, calcium

(limestone), silicon, magnesium, and

other micronutrients

Water soluble (susceptible to leaching)

Soluble in the weak acid of Brazilian

soils; resists leaching

No pH benefit for soils

Corrects acidity of Brazilian soils due to

limestone content

TSX: NPK


Premium fertilizer characteristics

SOP

NOP

K-Mag®

TK

$1,110/t

$2,015/t

$710/t

Under Review

48% K 2 O

0% Ca

44% K 2 O

0% Ca

21% K 2 O

0% Ca

7% K 2 O

22% Ca

16

0% Si

0% Si

0% Si

17% Si

0% Mg

0% Mg

10% Mg

1% Mg

15% S

0% S

21% S


TK field test | Potato

Results of TK application: potatoes after 44 days

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Potato yield (kg/ha)

TK field test | Potato

35,000

30,000

29,841 29,228

25,000

23,550

20,000

15,000

10,000

5,000

0

K-MAG ThermoPotash Control

18

TK generated a yield 24% greater than the control group and not statistically

significantly different than that of K-Mag®.

After harvesting, soil treated with TK showed residual K levels 3 to 5 times

higher than that of the K-Mag® plot.

• K-Mag is a registered trademark of The Mosaic Company

Source: Verde Potash Plc 2012

TSX: NPK


ThermoPotash development

Work on using the potassium silicate rock at Cerrado Verde to produce TK

began in the early 1980s by Brazilian academics.

Verde built on the work from the 1980s with its own research and

development and agronomic field trials that began in 2009 and have

continued through to the present.

Over the past four years the Company and a number of research partners

have conducted 41 lab tests and 15 field tests with 12 different crops on

more than 23 hectares (230,000m 2 ).

ThermoPotash was approved for use as a potash fertilizer by the Brazilian

Ministry of Agriculture (“MAPA”) on June 24, 2013 - its registration number

is MG - 90. 773 10000-3. The product is now eligible for sale in Brazil

19

TSX: NPK


Agronomic trials

20

TSX: NPK


How do we make TK?

The Company’s potassium silicate rock is heated in a rotary kiln along with

limestone to produce ThermoPotash.

Heating the potassium silicate rock weakens the bonds between the

potassium and other elements in the rock, thereby allowing for easy K

uptake by plants.

The production process for TK is very similar to the pyro portion of the

production process the Company has developed for KCl.

Given that a TK production facility requires a rotary kiln but no evaporation

or crystallization equipment, capex for a TK plant is expected to be

materially lower than that for a KCl plant producing equivalent tonnage.

21

TSX: NPK


How do we make TK?

Potassium silicate rock Limestone Heat

+ +

22

TK

TSX: NPK


Management

Cristiano Veloso Founder, President, CEO

13 years experience; Brazilian entrepreneur ex Banco do Brasil S/A, CEMIG; LL.B, LL.M International Business

Law

Antônio Schettino Chief Operating Officer

30 years experience; ex COO of MMX Mineração e Metálicos; extensive experience in project development and

construction, including more than two decades as the operations director of significant iron ore, nickel, limestone

and coal mining operations in Brazil, Chile and Colombia

Patricia Radino -Rouse VP Engineering

40 years experience; ex Senior Process Engineer and manager for Paulo Abib Engenharia, responsible for

supervision of a 1.5Mtpy feasibility study for potassium sulphate project for Petrobras

Jaret Anderson VP Corporate Development

13 years experience; ex fertilizer and chemicals analyst with Mackie Research, Salman Partners and UBS

Securities

23

Rodolfo Silva Process Manager

17 years experience; past experience includes work with Usiminas S/A, Magnesita Refratários S/A, Vilma

Alimentos and AMBEV

Eduardo Spolidorio Marketing Manager

14 years experience; past experience includes work with Honeywell, Bunge, Mosaic and Heringer

TSX: NPK


Independent directors

Leonardo Moretzsohn - Chairman

30 years of project finance experience including 24 years at Vale S.A; ex CFO of Vale Inco.; ex CFO of MMX Minas Rio and

EBX Holding S.A. (part of EBX Group); served as a director on Brazilian and international boards both in Brazil including those

of PT Vale Indonesia Tbk and Samarco Mineração (a Brazilian iron ore joint venture between Vale S.A. and BHP Billiton).

Richard Garnett

PhD. in Economic Geology (Royal School of Mines, UK), MBA (Cranfield University, UK); Mining Engineer. Has held senior

positions with Rio Tinto, Anglo American, Hudson Bay Mining and Diamond Fields Resources; instrumental in the early

recognition and exploration of the Voisey’s Bay nickel deposit.

José Fernando Coura

Current CEO of the Instituto Brasileiro de Mineração (IBRAM - Brazilian Mining Association) and Vice-President of the

Federação das Indústrias de Minas Gerais (FIEMG - Association of Industries of Minas Gerais State); served as the Executive

Director of the CAEMI Group, major Brazilian iron ore producer acquired by Vale in 2006.

Renato Gomes

Director of the ABCI Institute (Brazilian International Trade Scholars); lawyer and member of Brazilian and Portuguese Bar

Associations; current President and CEO of Atlantica Mining.

24

Getulio Lamartine de Paula Fonseca

Former General Director National Department of Power & Water Supply; Executive-Secretary Industry & Commerce Ministry.

Henrique Brandão Cavalcanti

Former Brazil’s Minister of the Environment (1994), Deputy Minister of Mines Energy (1967-69), Deputy Minister of Interior

(1969-74).

TSX: NPK


A low capex potash opportunity in Brazil

TK offers many advantages over KCl and is ideally suited for Brazilian soils.

A TK project involves much less capital than a similarly sized KCl plant.

A TK plant will allow us to generate cash flow and to mitigate technical risk

of scale-up to large scale KCl production.

Management remains focused on advancing the Cerrado Verde project and

monetizing the value of the large, at-surface potash resource the Company

controls in the heart of Brazil’s key agricultural region.

25

TSX: NPK


Appendix

26

TSX: NPK


Distance from Brazilian fertilizer buyers

Freight Distance for Potash Suppliers to Uberaba, Brazil (km)

Verde Potash

299

Sergipe

1,870

Germany

Israel

11,218

12,530

27

Russia

14,825

Canada

17,860

- 5,000 10,000 15,000 20,000

km

Rail Ship Truck

TSX: NPK


TK efficacy | Leaching

Granular KCl and granular TK applied to the soil surface at a dose equivalent to 3,000 kg /

ha K 2 O and then subjected to 300 mm of irrigation measured over a period of 18 days.

28


TK efficacy | Leaching

Percentage of K leached after simulation of

heavy rain over 18 days

30%

25%

20%

26.2%

26.0%

15%

10%

29

5%

0%

KCl (granular)

Sandy soil (15% clay)

0.3% 0.3%

ThermoPotash

Clayey soil (40% clay)

Over a quarter of the potassium in the KCl was leached away vs. only

0.3% of the TK.

TSX: NPK


US$ (Billions)

2008

2009

2010

2011

2012

BNDES’s budget is significant

120

BNDES Disbursements

100

80

60

30

40

20

0

Source: BNDES, http://www.bndes.gov.br/

TSX: NPK


The Brazilian real is depreciating vs. the USD

31

A depreciating real benefits Verde as labour, electricity and other costs at

Cerrado Verde tend to move lower in Canadian and U.S. dollar terms,

thus benefitting margins.

TSX: NPK

31


Potash prices in R$ terms

Granular Potash CFR Brazil in Brazilian Reals

32

Potash price in Brazilian real terms has held in better than that in other

markets due in part to the depreciation of the real.

TSX: NPK

32


Logistics: Saskatchewan to Brazil

Saskatchewan producer shipping to the Cerrado

Mill gate cash cost

$144 1 /t

Rail to Vancouver

$43 2 /t

Mill gate

$144/t

Seaborne to Brazil

$33 3 /t

Brazil port charges

+ Demurrage

+ AFRMM

$26 - 43 4 /t

$5-10/t

$8 5 /t

Transportation

$188 - 240/t

33

Truck to blenders inland

$44 - 108 6 /t

Finance charges $12 7 /t

Total delivered cost

$332 - 384/t

1

Average COGS for Saskatchewan`s largest potash producer over the trailing 12 months

2

Government of Canada, Ministry of Transportation

3

CRU

4

Santos Port = $43; Paranaguá Port = $26 (Agroconsult)

5

AFRMM = Additional Freight for Renewal of the Merchant Navy : a tax imposed on inbound Brazilian freight (CRU)

6

Verde Potash Plc estimate

7

Cost to finance one tonne of potash at 5.5% interest for 150 days

TSX: NPK


Crawling

34

University of Cambridge - UK

Verde’s lab - Brazil


Walking

35

Hazen Research – Denver, CO

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Jogging

36

Verde Potash – Pilot Plant in Brazil

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Running

37

FLSmidth – Allentown, PA

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Analyst coverage

Company Analyst Contact Details

AltaCorp Capital John Chu +1 (647) 776-8236

GMP Securities Anoop Prihar +1 (416) 367-8600

Kaiser Research John Kaiser +1 (925) 631-9748

Ocean Equities Adam Lucas +44 (0) 207 786 4370

38

Paradigm Capital Spencer Churchill +1 (416) 361-6056

Scotia Capital Ben Isaacson +1 (416) 945-5310

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TSX-V:AMZ TSX:NPK

www.amazonplc.com

www.verdepotash.com

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