Gq presentation-june-10-2014-website
-
Upload
adnet-communications -
Category
Economy & Finance
-
view
745 -
download
0
Transcript of Gq presentation-june-10-2014-website
Click to edit Master title style
GQ FERTILIZER
TSX-V AFRICA
BUILDING FOR GROWTH WHERE T H E W O R L D I S G R O W I N G
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
Stock Informa-on
3
As of June 10, 2014
STOCK INFORMATION TSX-‐V: GQ
SHARES OUTSTANDING 48,892,941
-‐OPTIONS 3,815,000
-‐WARRANTS 2,114,813
FULLY DILUTED 54,747,754
52-‐WEEK LOW/HIGH $0.45/$2.54
3-‐MONTH AVG. VOL. 77,780
MARKET CAP. $61.1M
Le Main de Fa5ma – Northern Mali
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 (CoFon)
5
OUR OPPORTUNITY
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
6
Tilemsi Phosphate Deposit
Segou Pilot Plant
Phosphate Rock Characterisa-on
7
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 ferPlizers, as ferPlizers’ effecPveness 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 transportaPon and be used as a component of NPK
blended ferPlizer
Characteriza-on tests indicate:
Tilemsi natural phosphate (TNP) meets or exceeds market specificaPons for beneficiaPon, solubility and granulaPon.
TNP can be used as either as very low cost phosphate component for blended NPK ferPlizer or as a direct applicaPon ferPlizer.
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 8
Granulated Tilemsi Phosphate – 35% high grade, 27% medium grade
Agronomy
• Extraordinary Results
Corn in Sikasso Popular crop in a significant growing region, powerful yield response.
9
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
Un-Irrigated Rice in Bamako Challenging crop given variable water availability, benefiting from whole nutrient nature of GQ product
Peanuts in Kita Medium grade product was tested with solubility aids, an ultra low cost option for subsistence crops
Pilot Plant Production
• Segou Production Facility – 40,000 tonnes of product annually
• 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
10
Birkenmayer Granulator – Johannesburg, South Africa
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
11
Trucks in Gao, moving goods to and from Bamako, Algieria and Niger
PEA Highlights
Project Parameters Value
Life of Mine based on the Inferred Mineral Resource esPmate
20 years
Maximum Rock Mined (at full capacity) 1 M tonnes/year
Pre-‐OperaPonal Cost US$13 M
IniPal Capital Cost US$ 143 M
OPEX Phosphate Rock @36% P₂O₅ (powder average ex plant)
US$ 59 per tonne
OPEX Phosphate Rock @36% P₂O₅ (granulated avg ex plant)
US$ 95 per tonne
FerPlizer Products Supplied at Full Capacity 1.18 M tonnes/year
Sales Mix: NPK / Direct ApplicaPon 78% / 22%
Assump-ons Value
Product Price Discount to imported phosphate cost in Mali
20%
Average transport cost raPo per tonne per km US$ 0.082
Delivered Price of Diesel for Energy ProducPon US$1.10/litre
Equity to Government on Mining 20%
RoyalPes on Mine ProducPon 3%
ConPngency in IniPal Capital Cost (12%) US$ 14 M
PoliPcal Risk Insurance Premium (@ 12%) incl. in CAPEX US$ 11 M
Interest Rate per annum (LIBOR + Premium) 7.8%
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 discussing life in Gao with Tuareg merchant
Explora-on Poten-al
13
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
14
OUR GROWTH
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,
15
Sua Pan Potash Brine Project
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
16
17
WHO WE ARE
Our People
18
Interna-onal Board of Directors
John A. Clarke – Chairman Former CEO of Nevsun Resources and ExecuPve Director of AshanP Goldfields
Victor Jones – Director 30 years of experience in senior execuPve and board posiPons in
public mineral exploraPon 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 AssociaPon 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 SecuriPes; iniPated and developed Resource Research Group at Charlton SecuriPes
Mali Board of Directors
Abdoulaye Pona-‐ Director President Mali Chamber of Mines, Founding director Mali Mining
House SA
Mama Tapo-‐ Director Managing Director Societe InternaPonale de Services et de
representaPon. Former Manager AshanP Goldfields
Our Team
19
Interna-onal Board of Directors
Jed Richardson – President and CEO Former VP Corporate Development at Verde Potash and
InsPtuPonal Equity Research Analyst at Cormark SecuriPes.
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, Golden Dawn Minerals and
Loita Group. Mr Hosanee holds a CGA.
Thomas Guillot – VP Corporate 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 ExploraPon Geologist at Randgold Mali, Geological consultant for Nevsun and AdministraPve Manager, Iamgold Mali
20
• World popula-on projec-on 10 billion people by 2100
• Africa’s populaPon 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: SproF)
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
“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
21 Source: GRAIN, AGRA Alliance, McKinsey, IMF, FAO
Projected Evolution of World Agricultural Production by 2050
Source: FAO, June 2012
Projected increase of the world agricultural production between
2005/2007 and 2050:
+60%
Conservative scenario
SSA
+170% in SSA
Annual GDP Growth 2013 2014 2015 2018
World +2.9 +3.6 +4.0 +4.1
Sub-‐Saharan Africa +5.0 +6.0 +5.7 +5.7
Africa is Where the Growth is …
22
Great Quest Metals Ltd
TSX-V: GQ
Suite 303, 95 King Street East, Toronto, ON M5C 1G4 +1 416 849 9203
WWW.GREATQUEST.COM
Email [email protected]