INDUSTRIAL METALS, MINERALS AND MINEABLE ENERGY INVESTMENT SUMMIT 2010 LONDON CHAMBER OF COMMERCE & INDUSTRY ● WEDNESDAY , 30 NOV 2010 www.ObjectiveCapitalConferences.com Potash – Where are miners looking? Jess Pridmore – Business Dev’t Director, Intierra Resource Intelligence
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INDUSTRIAL METALS, MINERALS AND MINEABLE ENERGYINVESTMENT SUMMIT 2010
LONDON CHAMBER OF COMMERCE & INDUSTRY ● WEDNESDAY, 30 NOV 2010www.ObjectiveCapitalConferences.com
Potash – Where are miners looking?Jess Pridmore – Business Dev’t Director, Intierra Resource Intelligence
Global PotashMining & Exploration
Activity
Jess Pridmore
Intierra – What We Do
Intierra has been capturing, processing and displaying volatile quasi-public data about the global mining industry to provide a powerful web based competitor intelligence service, known as IntierraLive for over 20 years.
The Intierra system is described as the most sophisticated in terms of functionality and comprehensive in content available, providing simple data querying, alerting and mapping functionality for content as diverse as:
The service is used by 210 companies which includes 8 of the 10 major global mining companies, along with major banks and financial institutions.
• over 40,000 companies• over 3, 500 listed companies• over 39,000 global projects
- grass roots projects to operating mines etc• 163 commodities• Lease coverage – covering major global mining juristictions
ie: Canada, Australia, Burkina Faso etc
IntierraLive
IntierraLive is the most comprehensive information tool available for the resource industry and we currently cover:
Potash Production
Of the four producing countries listed in the Intierra database, • Brazil produced 717 kt and• Russia 2,497kt from their single operations, • whilst the USA produced a total of 1357kt from six operations • and Canada 10,979kt from ten operations.
The Potash Industry Status Quo
As it stands now, the potash industry is consolidated, with eight companies controlling more than 80% of global supplies:
•Potash Corporation of Saskatchewan•Agrium•Mosaic•Germany-based K+S ADR•Russian firms Uralkali and Silvinit •Belarus-based Belaruskali •Israel Chemicals ADR
Historic Muriate of Potash Prices
Potash Projects around the World
Increasing Resources
Increasing Resources
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Pre 2006Post 2006
Sourced from Intierra (market reports from ASX,TSX, NYSE, JSE,AIM,LSE)
Potash: Resource &/or Production
Sourced from Intierra (market reports from ASX,TSX, NYSE, JSE,AIM,LSE)
Bayovar Peru Pre-Feasibility 2013 125 * 250,000 Americas Petrogas Inc.HB (Carlsbad) Canada Feasibility 2013 120 8 200,000 Intrepid Potash, Inc.
Kings Valley United States Scoping * 427 18 115,000 Western Lithium USA Corp
Olaroz Salar Argentina Scoping * 80 * 36,000 Orocobre Limited
Study TypeCountryProperty LOMCAPEXForecast
Production OwnerStart Date
Potash Drill Intersections (Dec 09 to now)
Sourced from Intierra (market reports from ASX,TSX, NYSE, JSE,AIM,LSE)
Potash – Future Trends
Strong demand in upcoming years
Underpinned by strong fertiliser demand from :-
•Diet change - shift to protein
•Continued expected growth in biofuels
•Increased food demand, less available land
Investment Risk?
• Rank projects according to political, security, operational, terrorism risks
• - what/where/who would you invest in?
• Come to workshop!
Conclusion
-8 companies controlling 80% of global potash supply-165 properties around the world. Canada has significantly increased its resource base over past 5 years
-Resources: Congo, Eritrea, north and south America, Australia-Producers: Canada, America, Russia, Chile and Brazil
-4 significant capital raising in past 2 years. 2 in Canada, 1 Australia, 1 Argentina
-2/3rd projects pre-production phases. Mostly grass roots and exploration.Canada still largest at 28%, US 15% Aust on 22% + Argentina on 15% (looking to establish themselves as producers)
-Brazil on 7%. Also Thailand, India, Congo , Chile, Eritrea and Ethiopia all cite resources and/or reserves of potash which are potentially exploitable. (Uzbekistan, Turkmenistan and also Germany upcoming areas)
Conclusion
Feasibility Studies: Current producing countries + Congo, Peru, Argentina• 12 Pre Feas/Scoping• 5 Feasibility Study• 5 ConstructionMining style: industry move to Brine/Evaporation methods (100 brine deposits.
Cheaper to exploit)
For more information
www.intierra.com
IntierraLive Workshops
Intierra will be hosting the following workshops:12.35 – Uranium14.15 – Potash16.05 – Coal