Plains Creek Phosphate (TSX.V - PCP) - Corporate Presentation
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Transcript of Plains Creek Phosphate (TSX.V - PCP) - Corporate Presentation
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Corporate Presentation March 2012
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Forward Looking Information This presentation includes statements that are forward-looking. All statements in the presentation (other than statements of historical fact) that address future operations or plans of Plains Creek Phosphate Corp. (“Plains Creek” or the “Company”) or their affiliates, proposed acquisitions, development and commissioning of mines, long term corporate goals, estimated development costs or operating costs, marketing plans or anticipated customers, mine reserves or resources, expansion of production, demand for product, and the future of the mining industry in general and the mining industry in Guinea-Bissau in particular are forward-looking statements. Such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from the results, performance or achievements implied by the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, market prices for phosphate, general economic, market and business conditions, risks and uncertainties related to Plains Creek’s abilities to complete its acquisition of the remaining interests in phosphate properties in Guinea-Bissau, to successfully develop and commission mines at the property, to obtain all necessary permits for development and production as and when required, estimation or resources and reserves, estimation of demand for the product, development and production costs, transportation delays and costs, ability to convert expressions of interest from potential customers into definitive sales agreements, delays in construction of the mining operation, accidents, equipment breakdowns, title matters, labour disputes or other unanticipated difficulties with or interruptions in development or production, phosphate price fluctuations, failure to obtain adequate financing when needed, exchange rate fluctuations, and risks and uncertainties associated with doing business in Guinea-Bissau. Although Plains Creek has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that statements containing forward looking information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on statements containing forward looking information. There may be information in this presentation that is information about prospective results of operations, financial position or cash flows (a “financial outlook”). This financial outlook is provided only to assist in an evaluation of the prospective business outlined in this presentation, but are not to be relied upon as accurate representations of future results and may not be appropriate for any other purpose. Furthermore, because this financial outlook is based upon estimates and hypothetical assumptions about circumstances and events that have not yet taken place and are subject to variation, there are no representations or warranties associated therewith, and there can be no assurance that the outlook will be attained. Readers are cautioned that no forward looking statement or financial outlook is a guarantee of future performance. Plains Creek and RHC assumed no obligation to update these forward-looking statements or financial outlook except as may be required by law.
Not an Offering of Securities This presentation is for information purposes only and does not constitute an offer to sell or a solicitation to buy the securities of Plains Creek or any other securities. Cautionary Note to U.S. Investors Concerning Estimates of Measured and Indicated Resources This presentation uses the terms “Measured” and “Indicated” Resources. U.S. investors are advised that while such terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Technical Report The Company’s current technical report (the “Technical Report”) was prepared in accordance with National Instrument 43-101 (“NI 43-101”) for its principal and sole mineral property known as the Farim Phosphate Project in Guinea-Bissau and is entitled “Technical Report on the Preliminary Economic Assessment of the Farim Phosphate Project in Guinea-Bissau”, dated effective February 10, 2011 and filed under the Company’s profile on SEDAR at www.sedar.com on February 22, 2011 which was prepared for the Company by John S. Warwick, BSc (Hons) PIMMM, C.Eng., Eur.Ing. (Mining) and Andre Lambert, BSc, MIMMM, EurGeolg of IMC Group Consulting Ltd. and Alex Mitchell, MIMMM, C.Eng. and Michael Short, FIMMM, C.Eng. Of GBM Minerals Engineering Consultants Limited. All authors of the Technical Report are independent Qualified Persons as defined under NI 43-101. All references herein to resources of the Farim Phosphate Project are supported by the Technical Report and the reader is directed to the Technical Report for further detail. EBITDA References in this presentation to “EBITDA” are to inferences from the Technical Report. Such EBITDA consists of the gross sales of production less operating costs before interest, income taxes, depreciation and amortization. Management of Plains Creek believes that, in addition to net earnings, EBITDA is a useful complimentary measure of cash available prior to debt service, capital expenditures and income taxes. However, EBITDA is not a recognized measure under Canadian GAAP and does not have a standardized meaning prescribed by Canadian GAAP. Readers are cautioned that EBITDA should not be construed as an alternative to net earnings determined in accordance with Canadian GAAP as an indicator of performance, or to cash flows from operating, investing and financing activities as a measure of liquidity and cash flows. Plains Creek’s method of calculating EBITDA may differ from the methods used by other entities and, accordingly, its EBITDA may not be comparable to similarly titled measures used by other entities.
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• High quality development phosphate project in Guinea-Bissau, West Africa • NI 43-101 compliant resource comprised of:
Measured: 69 Mt grading 29.9% P2O5
Indicated: 15 Mt grading 30.1% P2O5
Inferred: 44 Mt grading 29.6% P2O5
• Production expected to commence in 2014 – exporting 2 Mt phosphate rock concentrate per annum for minimum 25 years production license granted and a 25 year Mining Plan of 68 Mt grading 29.9% P2O5
• Simple mining process straight forward beneficiation to produce phosphate rock concentrate potential for choice of open cast dredges or conventional open pit mining
• Existing infrastructure components to support production and export to world markets • Attractive economics with US$80 million EBITDA per year, based on US$100 per tonne phosphate rock as per
NI 43-101 Preliminary Economic Assessment (“PEA”) current phosphate rock spot prices are ~US$200 per tonne potential for EBITDA of US$180 million per year based on US$150 per tonne phosphate rock
• Potential to increase phosphate resources with deposit open in three directions • Strong demand for end product – positive long term fundamentals for fertilizers • Current mandate with BMO Capital Markets as strategic advisor to assist in finding strategic partners and
negotiate off-take agreements
Summary Highlights
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50.1%
100% Ownership (sole asset)
OPTION TO PURCHASE 24.9% GB MINERALS AG
FOR € 13.5 million
PURCHASED 50.1% GB MINERALS AG FOR € 19 million
Share Purchase Agreement
OPTION TO PURCHASE 25% GB MINERALS AG
FOR € 13.5 million
• A Swiss corporation holding production agreement (on very attractive terms) issued in 2009 – mining license with exclusive rights to explore, mine and commercialize the Farim Phosphate Deposit
• Undertaking NI 43-101 Bankable Feasibility Study (“BFS”) - expected completion H1 2012
• Operating Company
• Share Purchase Agreement to acquire 100% GB Minerals AG
Acquisition & Ownership Structure
2010 2011 2012 2013
Plains Creek Phosphate
GB MINERALS AG, Risch (CH)
GB MINERALS SARL Guinea-Bissau
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Asset Located in Northern part of Central GUINEA-BISSAU, WEST AFRICA
• Approximately 25 km south of the Senegal border
• 80 km south to coast with connection by paved road
• Project area is bisected by Cacheu River, which flows to the Atlantic (155 km)
• Production license issued
Project Location
AFRICA
Bissau (Capital)
Cacheu
Mansôa Bafatá
Gabú Bissorã
Farim
GUINEA
SENEGAL
Pointe Chugue (Sea Port Location)
North Atlantic Ocean
GUINEA-BISSAU
Buba
Catió
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• Comprehensive geological data base (assembled during 1981-2009) including 146 drill holes (BRGM, Champion, GB Minerals AG)
• Twenty five year mining plan from NI 43-101 PEA calculated at 68 Mt grading 29.9% P2O5 with average phosphate ore body thickness of 3.3 meters. Average strip ratio 11.8:1
• Potential for a significant increase in resources to the North West and South of the main area (not yet drilled), as well as by increasing stripping ratio to 20:1 (upper A layer) and the exploitation of the lower grade B layer (grading 10-15% P2O5). The A layer is referred to as FPA (Farim Phosphate A grade) and the B layer as FPB
• Fully licensed via Production Agreement (2009) with Guinea-Bissau Government on favorable terms, including 100% ownership, 10 year tax holiday and 2% production royalty
• Straight forward mining operations by removal of (average) 39 meters of unconsolidated overburden to get to phosphate ore, potential for production of a phosphate slurry for the processing plant
• Potential for simple and efficient beneficiation process
• 80 km distance by slurry pipeline to coast
• Currently undertaking Bankable Feasibility Study (“BFS”) – expected completion H1 2012
• Mining agreement provides for relocation of local villagers and the Company is currently conducting a ESIA as part of its BFS
Project Summary
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• Phosphate discovered during oil exploration in the early 1950’s
• During 1980’s French mining agency (BRGM) carried core drilling program (+100 drill holes). Metallurgical test work produced phosphate rock concentrate grading 36.5% P2O5. In 1986, Sofremines completed a prefeasibility study but did not go ahead because of prevailing phosphate market conditions
• From 1996 to 2003 Champion Resources conducted successive stages of feasibility work including drilling 34 drill holes. Confirmed BRGM results and developed a mining plan. Phosphate market conditions and the political situation in Guinea-Bissau prevented project going ahead
• 2004 to 2009. GB Minerals AG, a Swiss company acquired exploration license and mining lease. Carried out successive validation studies, excavated a box cut, drilled 30+ drill holes. Developed a mining plan on a resource grading 31.5% P2O5
• In May 2009 GB Minerals AG signed a comprehensive production agreement with Guinea-Bissau Government
• In 2010, Plains Creek completed a NI 43-101 compliant resource estimate of 69 Mt Measured at a grade of 29.9% P2O5, 15 Mt Indicated Resources at a grade of 30.1% P2O5 and Inferred Resources of 44 Mt at a grade of 29.6% P2O5
1950 1960 1970 1980 1990 2000 2010
Discovered during oil exploration
BRGM Core drilling +100 drill holes
Positive Pre-Feasibility Study
Champion Resources 34 drill holes
GB Minerals AG 30 drill holes
Production Agreement
Project History
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1,741.61 km2
306.25 km2
Mineral Licenses & Leases Area
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Comprehensive Drilling Program Over Years – 146 Drill Holes
Completed
Underway
Revised
Pending
Projected (flooded area)
0.75m FPA Layer Thickness
GBM Drilling 2009
BRGM grid S drilling BR or PS Drilling
Drilling 17.7.09 Maille serree autour de SD 5 (GBM 2008)
Zone 2 puits et 4 piezos (GBM 2009)
Drilling History
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FARIM
Overview of P2O5 content in deposit area Satellite view of the main deposit area
The Production License for the exploitation of phosphate ore covers an area of 30,625 ha; The initial focus area (above) of the 25 year mining plan of 68 Mt at 29.9% P2O5 is contained within the
Measured Resource (69 MT at 29.9% P2O5) and Indicated Resource (15 MT at 30.1% P2O5) of the upper FPA upper layer
<26% <28% <30% <32% <34%
Contents P2O5%
>34%
Phosphate Deposits Farim, Saliquinhe
TAMBATO SALIGUINHE
CANICO
1 km
Deposit
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Two Main Phosphate Horizons FPA / FPB
Simplified Cross Section Not to Scale
Ground Level
Overburden Av. 39 meters (clayey sand)
29.9% P2O5
A few meters below
Cut-off 1 meter
FPA
FPB
68 Mt at 29.9% P2O5 (based on 3.3m av. seam thickness)
3.3m
10-15% P2O5
Cut-off 1 meter
MINING FOCUS
Phosphate Horizons – FPA & FPB
69 Mt Measured Resource at 29.9% P2O5 , 15 Mt Indicated Resource at a grade of 30.1% P2O5 and Inferred Resources of 44 Mt at a grade of 29.6% P2O5
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2 1
3
AREA OF HIGH QUALITY PHOSPHATE RESOURCE GRADING 29.9% P2O5 1
2
3
POTENTIAL DIRECTIONS TO EXPAND THE SIZE OF THE RESOURCE
EXISTING RESOURCES
NI 43-101 Resource Comprised of:
69 Mt at 29.9% P2O5 Measured
15 Mt at 30.1% P2O5 Indicated
44 Mt at 29.6% P2O5 Inferred
Deposit Area Open in 3 Directions
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Production Agreement • Includes production license, mining lease and incentive agreement • 100% GB Minerals AG owned (no Government participation) • 25 years duration, renewable for successive period of 25 years
Infrastructure • Port, roads, pipelines, etc. at sole discretion of company • No Government taxes, license fees or other costs
Rights and Obligations • Regulates rights regarding access and use, building of infrastructure,
expats, imports, exporting products, etc. Taxes and Royalties • 10 year tax holiday from start of commercial operations • 2% tax deductible royalty on production
Mining (no drilling or blasting) • Overburden average 39 meters of soft clayey sand, stripping ratio 11.8:1 • Use conventional truck and shovel overburden stripping for upper 7-10 meters • Production rate per annum: 2.76 Mt ROM phosphate ore grading 29.9% P2O5
Beneficiation (no crushing) Recovery (based on BRGM and Champion test work)
Production Agreement & Operational Overview Phosphate Rock
• Screening of >1 mm particles • Sizing: remove <10 micron particles • Magnetic separation to remove iron particles • Slurry pipeline to port (80 km) • Dry product to port at 8 - 10% moisture for shipping • Production rate per annum – 2.16Mt at 8% moisture
• P2O5 recovery: 79.6% • Weight recovery: 72.5% • Product : P2O5 phosphate rock concentrate grading
32.5% P2O5 and 3.5% Fe + Al content - medium grade concentrate 70 BPL
• Production rate: 2 Mt (dry) per annum
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GENERAL • Port, roads, pipelines, etc. at sole
discretion of company • No Government taxes, license
fees or other costs
PORT (SOLE USE) • Located 80 km from mine site and
18 km east of capital city of Bissau • Depth at low tide is 12 meters • Access for 35,000 to 40,000 tonne
vessels directly from the Atlantic • Storage facilities for 40,000 tonnes.
24 hour loading turnaround
ROAD / PIPELINE • World Bank financing construction /
upgrading of existing paved road from Farim to Mansoa (56 Km)
• Existing road (14 km) from Mansoa to Dugal (turnoff to port location)
• Pipeline from Farim to Pointe Chugue (port location) – 80 km to be constructed by company
FARIM
BISSAU
GUINEA-BISSAU
SEA PORT LOCATION
MANSOA
DUGAL
POWER • Install diesel or heavy oil
generators at mine site, ± 10-15 MW
• Recently announcement of 130 MW oil fired power station to be built at Bissau
• Planning power line in future to mine site; financed by World Bank and operated by US company
Phosphate rock mineralization close to surface is open pittable with low cash costs and ease of transportation
On-Site Power
General
Port Location (Sole Use)
Roads / Pipeline
Infrastructure
Barro
Bigene
Binaga
Jabel Olossato
Berecodim
Mansaba
Cutiá
Cubonge
Bindoro Chugue
Nhacra
Cumere
Enxude
Mambonco
Leto
Simbor Buborim
Santancoto
Uenquem
Late
Encheia Blafechuro
Impasse
Clague Nhamate
Flaque Infunde Embande
Gansambo Matar
Bancolene
Nhanfa Cussondome
Jagali Balanta
Bissora
Faca
Jugudul
Senegal
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Feb 2010
Mar 2011
EARN-IN PURCHASE
ADDITIONAL 24.9%
GB MINERALS AG
PURCHASE REMAINING
25% GB MINERALS AG
(50.1%) (75%) (100%)
Start Feasibility
Study
TSX.V Listing Plains Creek RTO
Detailed Engineering & Design
Bankable Feasibility Study
Complete H1 2012
START PRODUCTION
CONSTRUCTION
Nov 2010
NI 43-101 Technical
Report
PURCHASE 50.1%
GB MINERALS AG
Dec 2011
Dec 2012
Dec 2014
Sep 2014
Offtake & Financing
Total Ownership
2010 2014 2011 2012
Corporate & Development Timeline
2013
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• Plains Creek has awarded GBM Minerals Engineering a contract to complete a Feasibility Study on the
Farim Phosphate Deposit, Guinea-Bissau About GBM Mineral Engineering Consultants • GBM Minerals Engineering Consultants Limited (GBM) is an independent firm of engineering consultants
specializing in the development, design and construction of new mining projects and the refurbishment of existing gold, base-metal and industrial mineral ore processing plants. They are experts in the design, engineering, project management, procurement and construction of such plants and are currently providing technical services to the mining industry in Africa, Central Asia, Russia, Europe, Australia, the Americas and the Middle East
• GBM was formed in March of 1994 by the employees of a large North American engineering consultancy following the closure of that consultant’s Gold and Base Metal Mining Projects Centre in London. The Centre had operated as a stable unit with the employees and other consultants working together on international projects for several years. The GBM employees have all worked for significant periods in the worldwide mining industry, and are familiar with the latest work practices and technologies
• GBM has been certified by the British Standards Institution and deemed by them to operate a Quality Management System which complies with the requirements of BS EN ISO 9001:2000
• GBM’s head office is located in Twickenham, 15 km south-west of London City center
“Experts in design, engineering, project management, procurement and construction of process plants…”
Feasibility Study
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CAPITAL EXPENDITURE US$
Feasibility Study 5,000,000
Engineering and Design 23,155,000
Overburden Removal 21,220,000
Infill Drilling + Exploration 5,228,000
Geology / Hydrology 500,000
Mining 25,000,000
Processing Plant 77,600,000
Power Plant 12,000,000
Water 1,850,000
Mine Site + Infrastructure 16,045,000
Roads & Pipeline 58,750,000
Port 35,700,000
General Overhead 6,084,000
TOTAL EXPENDITURE $288,132,000
TOTAL EXPENDITURE WITH 25% CONTINGENCY $360,165,000
OPERATING COST per tonne US$
Mining 25
General Expenses 5
Processing 15
Power + Water 10
Pipeline 3
Port 2
TOTAL COST per tonne $60
TOTAL COST per tonne with 10% contingency $66
Capital & Operating Costs
Source: NI 43-101 PEA
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Discount Rate NPV (1,2)
10% $254 million
12% $180 million
15% $104 million
NI 43-101 PEA Financial Model
Source: NI 43-101 PEA 1. Does not factor contingencies 2. NPV discounted to 2010 as per NI 43-101 PEA
FINANCIAL MODEL(1) 2011 2012 2013 2014 2015 2016 2017 - 38 Production
ROM ('000 tonnes) 1,380 2,760 2,760 2,760 2,760
Recovery by Wt (%) 72.50 72.50 72.50 72.50 72.50
Phosphate Rock (‘000 tonnes) 1,001 2,001 2,001 2,001 2,001
Price Phosphate Rock (US$/t) 100 100 100 100 100
Sales (US$ '000s) 100,050 200,100 200,100 200,100 200,100
Operating Cost /tonne (US$) 60 60 60 60 60
Total Operating Costs (US$ '000s) 60,030 120,060 120,060 120,060 120,060
EBITDA 40,020 80,040 80,040 80,040 80,040
CAPEX (US$ '000s) 6,084 106,917 169,181 10,100 10,100 10,100 10,100
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Sensitivity Analysis
NPV Sensitivity (US$mm) (1)
NPV (US$mm) Capex & Opex Contingency Sensitivity (15% Discount Rate)
IRR
90%
75%
58%
41%
24%
$200
$175
$150
$125
$100
Source: NI 43-101 PEA Financial Analysis 1. Does not factor contingencies
Phosphate Rock Price (US$/tonne)
###### $100 $125 $150 $175 $200
0% $104 $303 $502 $702 $901
10% $83 $282 $481 $680 $879
15% $72 $271 $470 $669 $869
20% $61 $260 $459 $659 $858
25% $50 $249 $449 $648 $847
Cape
x Co
ntin
genc
y
Phosphate Rock Price (US$/tonne)
###### $100 $125 $150 $175 $200
0% $104 $303 $502 $702 $901
3% $92 $291 $490 $690 $889
5% $80 $279 $478 $678 $877
10% $56 $255 $455 $654 $853
13% $44 $243 $443 $642 $841
Ope
x Co
ntin
genc
y
Discount Rate
$104.00 10% 12% 14% 15% 16%
$100 $254 $180 $125 $104 $85
$125 $581 $445 $344 $303 $268
$150 $908 $710 $562 $502 $450
$175 $1,236 $975 $781 $702 $632
$200 $1,563 $1,241 $999 $901 $815
Phos
phat
e Ro
ck P
rice
(US$
/ton
ne)
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INDIA CHINA
WESTERN EUROPE USA
BRAZIL
Global Phosphate End-Markets
Main Phosphate End-Markets Phosphate Concentrate Market – 179Mtpa
Merchant Market (1)
Vertically Integrated
23%
77%
1999
2010
PLAINS CREEK PRODUCTION
2 MILLION TONNES PER
ANNUM
Source: CRU 1. Merchant market calculated as world exports as a percentage of total production
Decreased proportion of phosphate rock sold in merchant markets, presenting a greater opportunity
Merchant Market (1)
Vertically Integrated
16%
84%
Proximity to global key end-markets with strong demand for phosphate rock concentrate
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Source: World Health Organization, Food and Agriculture Organization (FAO)
1.5
1.7
1.9
2.1
2.3
2.5
2.7
2.9
3.1
3.3
1964-66 1974-76 1984-86 1997-99 2015E 2030E
Thou
sand
s of
KC
al p
er C
apita
per
Day
Worldwide Daily Food Consumption per Capita Arable Land per Capita
0.0
0.1
0.2
0.3
0.4
0.5
1961 1966 1971 1976 1981 1986 1991 1996 2001 2006
Hec
tars
of A
rabl
e La
nd p
er P
erso
n
Increasing populations and consumption are straining global food supply and increasing the need for fertilizers
Calories consumed per capita expected to increase by ~30% (1964–2030)
Arable land per capita has decreased ~50% since 1964
Fertilizer Demand Driven by Demographics
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0
300
600
900
1200
1500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
(US$
/tonn
e)
DAP - Historical Phosphate Rock - Historical
Source: Food & Agriculture Organization of the UN
Global phosphate consumption expected to grow by 45% from 2005 to 2030 leading to higher fertilizer prices
Top 4 Countries (2009): China 34% India 19% USA 9% Brazil 7%
Asia55%
North America
14%
Europe12%
South America
10%
Other9%
Global Phosphate Consumption 2002
Asia66%
North America
10%
Europe8%
South America
10%
Other6%
2009
Consumption outpacing production by an average of 0.2% annually
Historical Phosphate Prices
Consumption: 34Mt
Production: 36Mt Production: 40Mt
Consumption: 38Mt
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• Farim Phosphate Project is a development project with world class potential: high quality mining resources, proximity to existing infrastructure and global end markets and robust project economics with production license and incentive agreements in place
• Attractive long term phosphate industry fundamentals: Pricing has doubled in the last few years to sustainable levels and global markets are positive on the fundamentals for fertilizer companies
• Company strategy to advance Farim Phosphate Project to production at 2 Mt phosphate rock concentrate per annum; straight forward mining and simple beneficiation process
• Significant exploration & resource expansion potential – open in 3 directions and large lower grade phosphate zone underlying main deposit; additional 1,741.61 km2 exploration license
• Two NI 43-101 engineering studies: NI 43-101 Technical Report – Preliminary Economic Assessment completed NI 43-101 Feasibility Study underway – expected completion in H1 2012
• TSX Venture listed – TSX.V-PCP
• Plains Creek is one of few select opportunities for public investors to participate directly in a pure play
phosphate rock development stage company with robust project economics
Summary
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Glenn Laing B.Sc. Eng (Mining Geology) and M.Sc. (Mining Engineering) – CEO & President Mr. Glenn Laing has over 30 years experience in the mining and financial industries including over 25 years in the position of President / Managing Director of mining and exploration companies. Mr. Laing was president and CEO of St. Andrews Goldfields form 2001-07. During his tenure at St. Andrews he raised in excess of $100 million for its gold mines and exploration assets. Today, St. Andrews is on its way to being a 200,000 ounce per year gold producer based on assets that Mr. Laing put together. Over the span of his career Mr. Laing has raised in excess of $1 billion for mining exploration and development projects.
John Reynolds – Chairman & Director
Mr. Reynolds career includes substantial experience in venture capital development, consumer products marketing, resource sector development and elected political office, both federal and provincial. Mr. Reynolds began his career in the sales and marketing field but has spent the last 35 years in the political arena, with a career that includes the positions of Member of Parliament; Minister of the Environment for BC; and Official opposition House Leader for the Conservative Party, to name a few. John was appointed as a Senior Strategic Advisor to McMillan LLP law firm in Vancouver and has been appointed as a member of the Queen's Privy Council for Canada.
Paul C. Jones B.Sc. Mining Engineering. P. Eng. – Director
Mr. Paul Jones has served in numerous engineering, operations, senior management, consulting positions and director in public and private companies active in the Americas, Africa and Asia during his long career (+40 years) in the mining industry. Mr. Jones is a Legion of Honor member of the Society of Mining Engineers where he has been a member since 1958, and is a member and officer of the Mining and Metallurgical Society of America. In February 2004, Mr. Jones received the William Lawrence Saunders Gold Metal from the American Institute of Mining, Metallurgical and Petroleum Engineers in recognition of his service to the public and the minerals industry.
Directors & Management
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Mr. Guocai Liu – Director Mr. Liu, since 2006, has been the Chairman, Chief Executive Officer, President and a director of Migao Corporation, a producer of fertilizers for the high-value agricultural Chinese market. Since 2000, Mr. Liu has also been the General Manager and Chief Executive Officer of Liaoning Yongcheng Economic Trade Development Co., Ltd. He was also a director of IND Dairytech Limited from 2007 to August 2010. Mr. Liu has been engaged in the chemical import and export trade, research and development, and construction of chemical products for more than 16 years. Mr. Liu graduated from the Jianghan Petroleum Institute of China (formerly Changjiang University) in 1987 and also holds a Master's Degree in economics from Liaoning University. Mr. James Xiang – Director Mr. Xiang is the President of China Mineral Resources Limited ("CMRL") and President of CNX Consulting Inc., which provides accounting and financial advisory services to Chinese companies that are seeking listing, financing and M&A opportunities in North America. CMRL holds 31,000,000 common shares of the Company. Mr. Xiang has worked in corporate finance management in numerous TSX listed companies. Mr. Xiang holds a Bachelor of Arts from Huazhong University of Science & Technology in China and a Masters of Business Administration from York University. Mr. Xiang is a Certified Management Accountant (Ontario) and a Certified Public Accountant (Delaware). Mr. Kirill Zimin – Director Mr. Zimin has been a partner in Aterra Capital since 2011. Before that Mr. Zimin worked as an independent M&A adviser in the junior mining sector which included also being Head of Business Development in Africa for Severstal Resources, a division of OAO Severstal. Mr. Zimin graduated from Moscow State University with a law degree, has previously held directorships of multiple mining companies and has extensive experience in business development and corporate governance. Carson Phillips – Corporate Development & Director Currently, Mr. Phillips is also a director of Ecuador Capital Corp., a private company focused in Ecuador. He has management experience both domestically and internationally having a tenure with the International Chamber of Commerce in 2004 located in Paris, France. Mr. Phillips has a degree in Business Administration from UBC Okanagan as well as a degree in International Business from the Netherlands.
Directors & Management
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Common Shares
Founders & Management 38,000,000
WAD Consult – Owners of 49.9% GB Minerals 101,000,000
Common Shares 228,564,588
Shares Outstanding 367,564,588 Options 25,095,000
Warrants 19,759,298
Fully Diluted 412,418,886
Capital Structure
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Phosphate Developer Peers
Equity Net Debt Price / Enterprise Resources Average GradeValue (FDITM) (Cash) NAV (1) Value M&I Inferred M&I Inferred
(US$mm) (US$mm) (multiple) (US$mm) (Mt) (Mt) (% P2O5) (% P2O5)
PHOSPHATE ROCK OPERATIONS
Stonegate $170 ($29) 0.52x $122 59 462 16.7% 11.6% nmf nmf nmf
Minemakers $81 ($18) 0.18x $63 377 2,356 18.7% 18.3% 6.0 $60 $87
Aguia $79 ($13) na $62 na 45 na 12.0% na na na
Minbos Resources $25 ($6) na $8 na na na na na na na
Average $89 0.35x $64 218 954 17.7% 14.0%
Median $80 0.35x $62 218 462 17.7% 12.0%
INTEGRATED OPERATIONS
MbAC $294 ($117) 0.60x $156 59 58 5.0% 7.3% 4.5 $119 $112
D'Arianne Resources $143 ($9) 0.74x $122 86 287 7.2% 5.7% 3.0 $106 $71
Legend $72 ($11) na $43 196 na 14.6% na 2.0 $415 $328
Phoscan $53 ($65) 0.29x ($11) 62 56 23.6% 21.9% 1.2 $770 $288
Sunkar $31 $5 na $35 266 182 10.4% 10.6% 5.0 $176 $184
Average $119 0.54x $69 134 146 12.2% 11.4%
Median $72 0.60x $43 86 120 10.4% 8.9%
Total Mean $105 0.47x $67 158 492 13.7% 12.5%
Total Median $79 0.52x $62 86 182 14.6% 11.6%
Plains Creek $26 ($3) 0.14x $47 84 44 29.9% 29.6% 2.8 $104 $60
Capex(US$/tonne)
Cash Cost(US$/tonne)
Project Rock Capacity
Source: Company Reports, Equity Research 1. NAV’s are unfinanced for equivalency
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Contact
Carson Phillips Suite 1660 - 401 West Georgia Street
Vancouver, BC V6B 5A1 Tel: 604-657-5871
Email: [email protected]