www.gensource.ca (TSX.V: GSP) June 20, 2017
Disclaimer This presentation does not constitute and offer to sell, or the solicitation for the offer to buy, the securities of Gensource. The scientific and technical information contained in this presentation has been reviewed and approved by Mike Ferguson, P.Eng., who is the President and Chief Executive Officer of Gensource and a “qualified person” under National Instrument 43 -101. Caution Regarding Forward-Looking Statements: This news presentation may contain forward looking information and Gensource cautions readers that forward looking information is based on certain assumptions and risk factors that could cause actual results to differ materially from the expectations of Gensource included in this news release. This news release includes certain "forward- looking statements”, which often, but not always, can be identified by the use of words such as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". These statements are based on information currently available to Gensource and Gensource provides no assurance that actual results will meet management's expectations. Forward- looking statements include estimates and statements with respect to Gensource’s future plans, objectives or goals, to the eff ect that Gensource or management expects a stated condition or result to occur, including funding and development pursuant to the definitive joint venture agreement with the EGME, the expected timing for release of a reserve estimate and a feasibility study and whether or not the study will conclude that mineral production is feasible on a technical or economic basis, and the establishment of vertical integration partnerships and the sourcing of end use potash purchasers. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, funding and development pursuant to a definitive joint venture agreement with the EGME, results of exploration, the economics of processing methods, project development, reclamation and capital costs of Gensource’s mineral properties, the ability to complete a feasibility which sup ports the technical and economic viability of mineral production, Gensource’s financial condition and prospects, the ability to establish viable vertical integration partnerships and the sourcing of end use potash purchasers, could differ materially from those currently anticipated in such statements for many reasons such as: failure to obtain funding and undertake development pursuant to the definitive joint venture agreement with the EGME; an inability to finance and/or complete an update of the resource estimate to a reserve estimate, and a feasibility study which supports the technical and economic viability of mineral production; changes in general economic conditions and conditions in the financial markets; the ability to find distributors and source off-take agreements; changes in demand and prices for potash; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with Ge nsource’s activities; and other matters discussed in this news release and in filings made with securities regulators. This list is not exhaustive of the factors that may affect any of Gensource’s forward -looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Gensource’s forward -looking statements. Gensource does not undertake to update any forward-looking statement that may be made from time to time by Gensource or on its behalf, except in accordance with applicable securities laws. For a more complete review of the factors that may affect Gensource’s forward - looking statements, please see the company’s Infor mation Circulars and Management’s Discussion and Analyses, posted on Sedar, www.sedar.ca, or on the Company's website at www.gensourcepotash.ca/?page_id=642 . www.gensource.ca (TSX.V: GSP) 2
What is Fertilizer? A Global Commodity!! Maximum plant yields are only possible when nutrients are applied in a balanced way Ag. Plants require 16 different nutrients for healthy growth - classified as Macronutrients or Micronutrients (Primary & Secondary) The three primary macronutrients are nitrogen (N), phosphorous (P), and potassium (K) These nutrients are each responsible for different aspects of plant health. This is Potash (KCL) Nitrogen (N) Phosphorus (P) Potassium (K) Promotes protein formation Key in root development & Improves plant durability & Determines plant growth, photosynthesis process resistance to drought, disease, yield, vigor and colour Helps in drought resistance weeds, parasites & cold weather. Source: Fertllizer101.org www.gensource.ca Gensource Potash Corporation (TSX.V: GSP) 3
The 21 st Century Potash Dilemma Supply Side - Current Potash Producers Suffer From Lack of Competition Current potash supply is controlled by oligopolistic supply-side production and distribution Lack of Price Transparency No real price discovery on transactions. No spot or contracted market Excess Supply Capacity Supply add-ons to control market and keep competition out Compressed Profit Margins Costly mining operations coupled with complex supply chain management www.gensource.ca (TSX.V: GSP) 4
The 21 st Century Potash Dilemma Demand Side - Potash Customers Suffer From Lack of Competition Current potash supply is controlled by oligopolistic supply-side production and distribution – zero price control for customers Lack of Price Transparency Little price discovery on large transactions - no spot or contracted market for customers to work with Excess Supply Capacity Supply add-ons to control market and keep competition out – minimal choice for competitive alternatives to customers Compressed Profit Margins Costly global mining operations coupled with complex supply chain management – high delivered cost to customers www.gensource.ca (TSX.V: GSP) 5
Market Opportunity Disrupt Existing Supply Chain by Deploying Innovative Extraction Methods and Partnering Directly with Potash Users Choice Provide customers with a dedicated supply from an independent producer shipped direct from the mine gate Cheaper Direct-to-consumer results in significant savings (up to USD $150/t) by avoiding the highly controlled distribution channel www.gensource.ca (TSX.V: GSP) 6
How It Works 100% Potash Product Direct Delivery Gensource Potash JVCo. Corp.: Potash Owns, constructs - Mineral Reserve Customer/Partner: and operates - Mining Lease - Off-take Agreement - Expertise production facility - Finance - Work to-date % Ownership/Profitability % Ownership/Profitability www.gensource.ca (TSX.V: GSP) 7
How It Works Go from this… To this… Less storage and handling = higher quality and lower price www.gensource.ca (TSX.V: GSP) 8
Who Is Gensource Potash? People – Experienced and senior team of potash experts with over 150 years of combined potash experience Projects – Potash One (sold for over $430 million), American Soda Co., Pennzoil Sulphur Company Partners – Golder Associates, Whiting Equipment, ENGCOMP Engineering, South East Construction, Terra Modeling www.gensource.ca (TSX.V: GSP) 9
Hi Quality Asset Base • Projects situated in world’s largest Diversified Portfolio of potash basin – Saskatchewan , Development Projects Canada • Central to all infrastructure including roads, rail, water, and power • Strong local and provincial support – ranked #1 mining jurisdiction in the world (Fraser KL 244 Institute Annual Mining Survey 2016) • NI 43-101 compliant 145 million tons Indicated, 328 million tons Inferred KL 245 Resource • Bankable Feasibility Study completed May 31, 2017 www.gensource.ca (TSX.V: GSP) 10
High Quality Assets Vanguard 1 - Feasibility Study Highlights Project capacity: One module at 250,000 Compelling Project NPV and IRR t/a final product, (unlevered – 100% Equity Base Case) standard grade Mine life: > 100 years, 144 Mt of Indicated resource (NI Pre Sask. Profit Indicator Post Sask. Profit Tax 43-101 compliant) Tax Mining method: Selective Dissolution using horizontal caverns NPV 8 $329,403,545 $235,822,250 Processing: Cooling crystallization using energy efficiency measures IRR 18.32% 16.31% Capex: USD $210M Sustaining Capex: USD $2.9M annually Opex: USD $39.54/t Construction: 20 months Source: Gensource Potash – Vanguard 1 Feasibility Study May 31, 2017 www.gensource.ca (TSX.V: GSP) 11
Vanguard 1 Plant to be Constructed - Simple and Repeatable Source: Gensource Potash – Vanguard 1 Feasibility Study May 31, 2017 www.gensource.ca (TSX.V: GSP) 12
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