A World-Class Investment in Food Security
Sustainable Potash Project with Attractive Financial Returns
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Project well advanced to near construction ready state
>US$230M raised to date for project development
Feasibility study and environmental & social impact assessments
completed
Majority of the permits in-hand and land mostly purchased
Multi-generational scale & option for future growth
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23 years of reserves¹ based on drilling only 5% of the potential basin
Shorter inland distances to key fertilizer customers
Local relationship with largest diversified Brazil agri-company
Project By The Numbers
Estimated Reserve Project
Life(1)
Potash (KCL) Annual
Nameplate Production
23 Years
~2.2 Mt
Projected Capital Investment to Achieve Full Production (2):
Pre-Tax
~US $2.3 Billion
After-Tax
~US $2.5 Billion
After-Tax Capital Intensity
US $1,021/tonne per annum
Projected Financials
$
Substantial & sustainable cost advantage
Lowest all-in delivered cost to Brazil growers
Import dependence supports structurally higher margins
In-market position enables margin resilience through-the-cycle
Revenue
Potash Long-Term CFR
Brazil Benchmark Price
Forecast(3)
Opportunity for sustainability leadership and innovation
Local potash supply results in ~1.3mt avoided CO2e
Plan to sell a portion of production at subsidized rates in exchange
for farmer commitment to not burn the Amazon jungle
Domestic source of potash helps ensure food security
Brazil Potash Estimated
Realized Price (FOB Port)
OPEX
FOB Port At Full Run Rate
Income
Run-Rate EBITDA(4)
~ US $506/tonne
~ US $543/tonne
~US$87/tonne
~ US $1 Billion
Source: Technical Report completed by Ercosplan; Notes: : (1) Potential to increase to 34 years pending Federal Congressional Approval given additional resource would be on indigenous lands (2)
Initial Capex Only (3) Long-term price and netback forecast based on CRU estimates as at August 2022 provided in Real US$ 2021 Values for calendar years 2029 to 2051 with CRU price outlook held
constant after 2046, prices adjusted for inflation based on variation of American PPI between July 2021 & July 2022 which was 5.8% (4) Based on run-rate production from project years 4 to 20
BRAZIL
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POTASHView entire presentation