SLIDE 1
Fertilizer and HCl Plant from Potash and MgO
- Construction of a 55 000 TPY fertilizer plant
(SOP & SOPM)
- Location : Thetford Mines, Quebec
- EBITDA : 17 M$/yr
- Capital Cost : 34 M $CDN
- IRR : 38%
Fertilizer and HCl Plant from Potash and MgO Project - - PowerPoint PPT Presentation
Fertilizer and HCl Plant from Potash and MgO Project - - PowerPoint PPT Presentation
Fertilizer and HCl Plant from Potash and MgO Project Construction of a 55 000 TPY fertilizer plant (SOP & SOPM) Location : Thetford Mines, Quebec EBITDA : 17 M$/yr Capital Cost : 34 M $CDN IRR :
SLIDE 2
SLIDE 3
- KSM is developing a project to build a high-end
fertilizer plant (SOP & SOPM) using MgO tailings from Thetford Mines area
- Technology is based on patented process with KSM
- wning 100% of Intellectual Property
- Brownfield project with lower Capex
- Opex 30% lower than Mannheim Process
Project
SLIDE 4
Technology
Potash Sulfuric Acid SOP KSM Process MgO Tailings SOPM HCl
SLIDE 5
Chemistry
2 KCl + 3 H2SO4 + MeOH K2SO4 + 2 HCl + 2 H2SO4 2 H2SO4 + 2 MgO 2 MgSO4 + K2SO4 K2SO4*2 MgSO4
Potash Sulfuric Acid Methanol SOP Hydrochloric Acid Tailings Sulfuric Acid 40% SOPM Cavitation
SLIDE 6
Market Overview - Historical
250 US$/T Margin
SLIDE 7
500 US$/T Margin
Market Overview - Current
1 Compass Minerals Q1 2016 Report, 2 Potash Corp Q1 2016 Report
SOP: A top performing commodity in last 15 years
SLIDE 8
- SOP
– 6 000 000 TPY
- SOPM
– 500 000 TPY
- Hydrochloric acid
– 408 000 T/yr export to USA
All products are targeting <10 %
- f the existing market
Market Overview
SLIDE 9
Plant Overview
Inputs Outputs
Potash SOP
- 32 000 TPY
- 25 000 TPY
Sulfuric Acid SOPM
- 40 000 TPY
- 30 000 TPY
MgO Tailings Hydrochloric acid
- 35 000 T per year
- 43 000 T per year
SLIDE 10
- Strategic Partner and Collaboration Agreement
in place with fertilizer distributor for an off-take agreement
– Market study completed and delivered as part of this agreement – On going tests of KSM’s SOP and SOPM
- On going discussions with other Strategic
Partner for off-take agreement for the HCl
Off-Take Agreement
SLIDE 11
- Lower chloride content
- Adjustable Chemical Composition versus fixed
composition of mined products
- Strategic location for North-East American market
- Strategic location for exportation (120km from deep
sea harbor)
Fertiliser Product Advantages
SLIDE 12
Product Positioning
SLIDE 13
- Access to 40 000 000 tons of MgO tailings
– Owner already shareholder of KSM
- Industrial facility already in place
– Part of on-going faisibility study
Brownfield project
SLIDE 14
Financials – Summary
SUMMARY - FINANCIALS DCF Financial Measures Plant CAPEX $ 34 000 000 Payback Period (PP) 3,5 Discount Rate 7,0% Net Present Value (NPV) $ 87 509 193 Internal Rate of Return (IRR) 38% SUMMARY - ANNUALS Vitrification Plant - Revenues and Costs $/Year Revenues 49 364 184 $ Costs 30 683 606 $ Gross Profits 18 680 578 $ Gross Profits Margin 38% EBITDA 16 933 590 $
SLIDE 15
- High margin between KCl and SOP/SOPM
- Huge resources of magnesium oxide tailings
- Project with high IRR and low Capex
- KSM is seeking financing partner to support