Investor Presentation | Diggers & Dealers Mining Forum 2017 slide image

Investor Presentation | Diggers & Dealers Mining Forum 2017

Scoping study indicates a compelling investment case... ➤ Study confirmed globally significant scale and compelling financial metrics Parameter Scoping Study Material Assumptions and Outcomes ➤ Targeted SOP production of 370,000tpa over a 20 year life ➤ Development capex of US$259 million, includes US$105 million of indirects and contingency Potassium Recovery SOP Production Rate ➤ Total FOB cash cost of US$256/t, provides an excellent operating margin at current prices of US$500/t ➤ Pre-Feasibility Study in progress Investor Presentation | Diggers & Dealers Mining Forum 2017 agrimin Unit Value Development Period months 24 Operating Life years 20 Brine Extracted Over Operational Life GL 1,330 Annual Brine Extraction Rate GL 66.5 Potassium Concentration mg/L 3,603 % 69.3 tpa 370,000 Average Total Cash Cost US$/t FOB 256 Average All-In Sustaining Cash Cost (Exc. Royalties) US$/t FOB 277 Development Capital Cost (Inc. Contingency of US$52m) US$m 259 12345 1. 2. 3. Development capital cost includes working capital, EPCM, owner's costs and a 25% contingency applied to all line items Average total cash cost is on a free-on-board (FOB) basis, including mine gate costs, transportation and ship loading costs Average total cash cost is based on drying, compacting and glazing all SOP production 4. 5. Average all-in sustaining cash cost does not include royalties as no income projections have been disclosed Potassium recovery is the estimated overall recovery rate achieved through the ponds and process plant 6. USD/AUD exchange rate of 0.75 has been used to convert Australian dollar amounts to US dollars 7. 8. Potassium content can be converted to SOP using a conversion factor of 2.23 (i.e. SOP contains 44.87% Potassium) Cost estimates have a ±35% level of accuracy 9. Information that relates to the Scoping Study has been extracted from the Company's ASX Release entitled Positive Scoping Study for the Mackay SOP Project released on 23 August 2016 21
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