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Investor Presentation July 2017
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Page 1: Investor Presentation - s1.q4cdn.coms1.q4cdn.com/553129972/files/doc_presentations/2017/Potash-Ridge...contained in this presentation are based upon what management of the Corporation

InvestorPresentation

July 2017

Page 2: Investor Presentation - s1.q4cdn.coms1.q4cdn.com/553129972/files/doc_presentations/2017/Potash-Ridge...contained in this presentation are based upon what management of the Corporation

Certain statements in this presentation may constitute "forward-looking" statements which involve known and

unknown risks, uncertainties and other factors which may cause the actual results, performance or

achievements of Potash Ridge Corporation (the "Corporation"), or industry results, to be materially different

from any future results, performance or achievements expressed or implied by such forward-looking

statements. When used in this presentation, such statements use such words as "may", "would", "could",

"will", "intend", "expect", "believe", "plan", "anticipate", "estimate" and other similar terminology. These

statements reflect the Corporation's current expectations regarding future events and operating performance

and speak only as of the date of this presentation. Forward-looking statements involve significant risks and

uncertainties, which include, but are not limited to the factors discussed under “A Cautionary Note Regarding

Forward Looking Statements” and "Risk Factors" in the Corporation’s Annual Information Form dated April 6,

2017, and should not be read as guarantees of future performance or results, and will not necessarily be

accurate indications of whether or not such results will be achieved. Although the forward-looking statements

contained in this presentation are based upon what management of the Corporation believes are reasonable

assumptions, the Corporation cannot assure investors that actual results will be consistent with these forward-

looking statements. These forward-looking statements are made as of the date of this presentation and are

expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the

Corporation assumes no obligation to update or revise them to reflect new events or circumstances.

FORWARD LOOKING STATEMENTS

2

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ABOUT US

3TSX:PRK

Potash Ridge is bringing two

potassium sulphate (SOP)

fertilizer processes into

production; one in Quebec and

one in Utah

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OUR VISION IS TO BECOME THE SOP MARKET LEADER IN NORTH AMERICA

4TSX:PRK

Value

Proposition

• SOP is highly sought after premium fertilizer

• 1.5 million tonnes of unmet global demand• Includes 500k tonnes of unmet demand in North America• Only one existing producer North America

• Valleyfield Project – only potential new supply in next 18 months. Low capex and proven process.

• Blawn Mountain Project – potential lowest cost producer in North America

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Project Overview

5

• 40,000 tpy of SOP

• Proven process

• 15-month construction schedule

• Scalable / Potential franchise

• Key commercial agreements signed

• 230,000 tpy of SOP

• Lowest cost producer in North America (US $177/ton)

• 3 years to production

• Upside from expansion potential and alumina resources in tailings

• US $107M in average annual cash flow

• NPV (after tax 10%) US $489M

Valleyfield(Quebec)

BlawnMountain

(Utah)

TSX:PRK

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POTASSIUM SULPHATE IMPROVES YIELD AND QUALITY

6

Which one are you buying?

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Potassium Sulphate (SOP)

Low chloride, high sulphur

Significant benefits for fruits, vegetables, nuts

Improves yield, taste, appearance and shelf life

US$630/tonne in North America

Capacity growth limited in competitor’s North American process

POTASSIUM SULPHATE: Two Macronutrients in One

ALUNITE

CRUSHING & GRINDING

CALCINATION

WATER LEACH

SO2 ACID PLANT SUPHURIC ACID

TSX:PRK

Nitrogen

Phosphate

Potassium Magnesium

Calcium

Sulphur

6

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POTASSIUM APPLICATION IMPROVES YIELD AND QUALITY – IMPACT ON TOMATOES

8University of Florida: Comparison of Potassium Sources and Rates For Tomato Production in Florida

100lb/acre 200lb/acre 300lb/acre

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POTASSIUM SULPHATE ELIMINATES CHLORIDE DAMAGE

9

Clemson University, The Australian and New Zealand Field Guide to Diseases, Pests and Disorders of Grapes

Peach and grape leaves suffering salt (chloride) damage

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SOP: A top performing commodity in last 5 years

SOP: SUPERIOR PRODUCT WITH ATTRACTIVE MARKET DYNAMICS

1 Compass Minerals Q1 2017 Report, 2 Potash Corp Q1 2017 Report

SERVING AN UNDERSERVED MARKET

10

MOP2

SOP1

$US/ton

-

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2012 2013 2014 2015 2016 2017

SOP price influenced by high-value crop economics not MOP price

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SOURCES OF POTASSIUM SULPHATE

SOPCHEMICAL REACTION: Mannheim Process50% of all SOP produced uses Mannheim Process

Used in Asia, Middle East and Europe

Soluble and granular form

SOPEVAPORATION: Salt LakeFinite resource

Found in USA, Chile, China, Europe

Granular form

11TSX:PRK

SOPMINERAL PROCESSING: AluniteProven process

Soluble and granular form

POTASH RIDGE’S TWO SOP PROJECTS

BLAWN MOUNTAIN (Utah)

VALLEYFIELD FERTILIZER CORP. (Quebec)

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SOP CONSUMPTION MATCHES LOCAL AVAILABLE PRODUCTION

12Green Markets, Northern Shoreline, company reports

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

North A. South A. Europe Asia Middle East

North America is Underserved

Current Production Existing Consumption Estimated Demand

000’s tonnes

North American SOP Market

Current Production: 400,000 tonnes/year

Current Consumption: 500,000 tonnes/year

Projected demand: 1,000,000 tonnes/year

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TWO PROJECTS STRATEGICALLY LOCATED TO SERVE SOP-DEMANDING CROPS

Valleyfield

Blawn Mountain

AlmondsGrapesApplesLettuce

CitrusVegetablesPotatoesTobacco

13

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ONE PRODUCT, TWO PROCESSES

14

• Proven Mannheim process

• 40,000 tpy of SOP

• Scalable

• Construction contract with SNC

• Granular and soluble SOP product

• 15-month construction

• Several commercial agreements in place

• 230,000 tpy of SOP

• US $456M capex

• 20.1% after tax IRR

• Lowest cost producer in North America (US $177/ton)

• Major permits and water rights secured; infrastructure nearby

• US $107M in average annual cash flow

• NPV (after tax 10%) US $489M

Valleyfield(Quebec)

BlawnMountain

(Utah)

TSX:PRK

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Valleyfield Project

Quebec

TSX:PRK

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o Will be first SOP producer on North American east coast

o Strong government support

o Located in industrial area near Montreal, Quebec

o Low capex – less than $60 million

o Short build time: 15 months

o 40,000 tonnes per year and easily scalable

o Commercial arrangements create barriers to entry

o Technology partner with 20 years experience

16

VALLEYFIELD: STRATEGICALLY LOCATED

TSX:PRK

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PROVEN MANNHEIM PROCESS

Converts MOP to SOP

Proven production process (150 year history), with numerous operating facilities in Europe and China (50% of current SOP production is from Mannheim)

High quality, consistent production process

POTASSIUM CHLORIDE

(MOP)

SULPHURIC ACID

HEAT

MANNHEIM FURNACE

POTASSIUM SULPHATE

(SOP)

HYDRO-

CHLORIC ACID (HCl)

TSX:PRK 17

Raw Material Finished Products2-Stage Process

550oC

.84t

.56t

1.0t

1.2t

✓ ✓✓

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Blawn Mountain Project

Utah

TSX:PRK

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BLAWN MOUNTAIN PROJECT (UTAH)

19

• Drilling data has established 45+ years of reserves

• Over 100 years of potential production

• Ranked #11 mining jurisdiction globally(1)

• 100% state-owned land

• Strong state government and local support

• All necessary infrastructure nearby

(1) Fraser Institute, 2016

12

3

54

1 Area 2 Mining Zone 2 Processing Plant Location 3 Access Road 4 Area 1 Mining Zone 5 Ore Test Pit

TSX:PRK

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BLAWN MOUNTAIN PROJECT (UTAH)

20

oWill be lowest cost producer in North America

o Focused on serving California market with soluble SOP

o Initial production rate of 255,000 tons per year

o 45+ years proven + probable reserves

o Permits and water rights secured

o Off-take for sulphuric acid byproduct secured

o All infrastructure within 30 miles

o Tailings include 19.4 million tons of measured & indicated alumina resources over life of mine

oMetallurgical testing to be undertaken to assess potential as: Bauxite substitute, concrete input or other industrial applications

oNot valued in NPV

TSX:PRK

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GUY BENTINCKChief Executive Officer

• Chartered Professional Accountant

• 20 years mining/resource experience

• Sherritt CFO and SVP Capital Projects

EXPERIENCED AND PROVEN MANAGEMENT

ROSS PHILLIPSChief Commercial Officer

MA (Econ)/MBA/CFA/CPA,CMA

• 15 years experience in large resource and energy sector projects

• Sherritt, Capital Power

DIVERSE, EXPERIENCED SKILL SETS

21TSX:PRK

PETRA DECHERChief Financial Officer

• Formerly VP Finance and Assistant Secretary, Franco-Nevada Corporation

• 15 years in mining industry with focus on public reporting, corporate governance, and structuring

ANDREW SQUIRESPresident & Chief Operating Officer

• Over 30 years of international resource development experience

• OSUM Oil Sands/ AMOCO/ Paramount Resources

• BSc. in Mechanical Engineering (University of Alberta)

JAY HUSSEYPresident, Valleyfield Fertilizer

• Founder of Valleyfield Fertilizer Corp.

• 9 years SOP operational experience with Migao Corporation (Mannheim SOP producer)

• 20 years capital markets consulting

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• BRUCE DUNCAN

Chairman

• ARTHUR ROTH

Vice Chairman

• GUY BENTINCK

Director and Chief Executive Officer

• ANDREW SQUIRES

Director, President and Chief Operating Officer

• CHRIS REID

Director (Chair of Audit Committee)

BOARD OF DIRCTORS

22TSX:PRK

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CAPITAL STRUCTURE

23TSX:PRK

CAPITAL STRUCTURE

Common shares (basic) 136.2 million

Warrants* 24 million

Stock Options 11.7 million

Common Shares (fully diluted) 171.9 million

Current share price $0.20

Market cap $27 million

*Warrants

# Warrants Exercise Price Expiry Proceeds

6.5M $0.08 Nov. 2017 $511,000

6.5M $0.30 Apr. 2019 $1,950,000

2.8M $0.50 May 2019 $1,400,000

6.5M $0.50 Jan. 2022 $3,250,000

1.8M $0.50 Jan. 2020 $900,000

Page 24: Investor Presentation - s1.q4cdn.coms1.q4cdn.com/553129972/files/doc_presentations/2017/Potash-Ridge...contained in this presentation are based upon what management of the Corporation

NEAR TERM CATALYSTS

24TSX:PRK

Valleyfield

o Finalize additional SOP off-take agreements

o Finalize combination debt and preferred share financing

o Start construction

Blawn Mountain

o Finalize SOP off-take agreement

o Obtain fixed price construction agreement

o Confirm alumina upside assessment

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INVESTMENT HIGHLIGHTS

25TSX:PRK

o Pure SOP play – huge demand globally and in North America

o East coast strategy: supply unmet demand with first local production facility

o West coast strategy: as lowest cost producer, replace import supply & disrupt incumbent

o Focus on non-dilutive project level financing creates attractive investment opportunity

o Valleyfield - quick to cash flow & profitability

o Blawn Mountain - lowest cost producer in North America with long-life reserves

Page 26: Investor Presentation - s1.q4cdn.coms1.q4cdn.com/553129972/files/doc_presentations/2017/Potash-Ridge...contained in this presentation are based upon what management of the Corporation

Potash Ridge Corporation

10 King Street East, Suite 300

Toronto, Ontario

416.362.8640

www.potashridge.com


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