Corporate Presentation - An Emerging Leader in Boron Advanced Materials and Specialty Products
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Corporate Presentation An Emerging Leader in Boron Advanced Materials and Specialty Products June 2021
TABLE OF CONTENTS The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe such restrictions. DISCLAIMER This presentation is for informational purposes only and does not constitute an offer to sell, or solicitation to purchase, any securities. Such Offer can be made only through proper subscription documentation and only to investors meeting strict suitability requirements. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. In providing this presentation American Pacific Borates Limited ACN 615 606 114 and its subsidiaries (“APBL”) has not considered the financial position or needs of the recipient. Persons needing advice should consult their stockbroker, bank manager, solicitor, attorney, accountant or other independent financial and legal advisors. FORWARD LOOKING STATEMENTS Various statements in this presentation constitute statements relating to intentions, future acts and events. Such statements are generally classified as “forward looking statements” and involve known and unknown risks, uncertainties and other important factors that could cause those future acts, events and circumstances to differ materially from what is presented or implicitly portrayed herein. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates” and similar expressions are intended to identify forward-looking statements. APBL caution shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of APBL only as of the date of this presentation. The forward-looking statements made in this presentation relate only to events as of the date on which the statements are made. COMPETENT PERSON – FORT CADY The information in this release that relates to Exploration Results and Mineral Resource Estimates is based on information prepared by Mr Louis Fourie, P.Geo of Terra Modelling Services. Mr Fourie is a licensed Professional Geoscientist registered with APEGS (Association of Professional Engineers and Geoscientists of Saskatchewan) in the Province of Saskatchewan, Canada and a Professional Natural Scientist (Geological Science) with SACNASP (South African Council for Natural Scientific Professions). APEGS and SACNASP are a Joint Ore Reserves Committee (JORC) Code ‘Recognized Professional Organization’ (RPO). An RPO is an accredited organization to which the Competent Person (CP) under JORC Code Reporting Standards must belong in order to report Exploration Results, Mineral Resources, or Ore Reserves through the ASX. Mr Fourie has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a CP as defined in the 2012 Edition of the JORC Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Fourie consents to the inclusion in this presentation of the matters based on their information in the form and context in which it appears. The information in this release that relates to the conversion of Mineral Resources to Ore Reserves has been prepared by Tabetha A. Stirrett of RESPEC Consulting Inc. Mrs. Tabetha A. Stirrett, P. Geo of RESPEC Consulting Inc. is a member in good standing of the Association of Professional Engineers and Geoscientists of Saskatchewan (Member #10699) and a member of the American Institute of Professional Geologists (CPG) (#11581). APEGS and CPG are a Joint Ore Reserves Committee (JORC) ‘Recognised Professional Organization’ (RPO). Mrs. Stirrett has sufficient Experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a CP as defined in the 2012 Edition of the JORC Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves. Mrs. Stirrett consents to the inclusion in the release of the matters based on their information in the form and context in which it appears. COMPETENT PERSON – SALT WELLS The information in this release that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information prepared by Richard Kern, Certified Professional Geologist (#11494). Richard Kern is a licensed Professional Geoscientist registered with AIPG (American Institute of Professional Geologists) in the United States. AIPGis a Joint Ore Reserves Committee (JORC) Code ‘Recognized Professional Organization’ (RPO). An RPO is an accredited organization to which the Competent Person (CP) under JORC Code Reporting Standards must belong in order to report Exploration Results, Mineral Resources, or Ore Reserves through the ASX. Richard Kern has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a CP as defined in the 2012 Edition of the JORC Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Richard Kern consents to the inclusion in the release of the matters based on their information in the form and context in which it appears. AMERICAN PACIFIC BORATES 2
TABLE OF CONTENTS Page 01 Investment Highlights 4 02 Capital Markets Summary 5 03 Boron 101 – What is Boron? 6 04 Fort Cady – Integrated Boron Facility 10 05 Fort Cady – Resource, Solution Mine 11 06 End-Use Applications Solving Global Issues 12 07 Key Milestones 18 08 Summary 19 AMERICAN PACIFIC BORATES 3
1. INVESTMENT HIGHLIGHTS An emerging leader in boron advanced materials and specialty products CRITICAL ADVANCED MATERIALS ▪ New producer of critical advanced material – boron-based specialties GROWING PRODUCT DEMAND ▪ Supporting critical end-markets (energy transition, crop science, safety) ENABLING DECARBONISATION ▪ Many end-market applications supporting global decarbonisation goals LIMITED NEW SUPPLY ▪ Favourable global supply-demand dynamic RARE BORON ASSET ▪ Rare US-based boron asset enabling low-cost production of base and speciality boron products WORLD-CLASS MANAGEMENT ▪ US based executive management ready for execution AMERICAN PACIFIC BORATES 4
2. CAPITAL MARKETS SUMMARY Value Drivers ABR Share Price Overview ▪ US based rare boron asset Share Price – 15 June 2021 A$1.30 ▪ Permitted Share on issue 379m Options ($0.20 - $2.50 strike range) 60m ▪ Cost effective execution plan led by experienced team Fully Diluted Shares 439m ▪ Strong ESG positive impacts Undiluted Market Capitalisation A$570m ▪ Enabler of global decarbonisation Cash at Bank – 31 March 2021 A$59.2m ▪ Developing plan for complimentary US listing Major Shareholders Virtova Capital 13% Atlas Precious Metals 12% Key Executives $9,000,000 $3.00 $8,000,000 David J Salisbury Henri Tausch $2.50 $7,000,000 Chairman, B.Sc (Electrical Engineering), MBA Chief Executive Officer, MSc $6,000,000 $2.00 David is a qualified electrical engineer with over 40 Henri has broad global business experience at Board $5,000,000 years’ experience in the global mining industry. He of Director, CEO and COO level. Most recently he $1.50 is US based and a former Rio Tinto executive who was a Senior Vice President and COO at TSX listed $4,000,000 was President and CEO of Resolution Copper Shawcor Ltd, a global infrastructure and energy $3,000,000 $1.00 Company, Kennecott Minerals Company technology services company where he worked and Rössing Uranium Limited. He has been directly between 2011 and 2021. Throughout his career he $2,000,000 $0.50 responsible for the development, construction and has worked in the United States, Europe and $1,000,000 production of four mines. Australia. $0 $0.00 1/2/20 1/9/20 2/6/20 3/5/20 4/2/20 4/9/20 5/7/20 6/4/20 7/2/20 7/9/20 8/6/20 9/3/20 1/7/21 2/4/21 3/4/21 4/1/21 4/8/21 5/6/21 1/16/20 1/23/20 1/30/20 2/13/20 2/20/20 2/27/20 3/12/20 3/19/20 3/26/20 4/16/20 4/23/20 4/30/20 5/14/20 5/21/20 5/28/20 6/11/20 6/18/20 6/25/20 7/16/20 7/23/20 7/30/20 8/13/20 8/20/20 8/27/20 9/10/20 9/17/20 9/24/20 10/1/20 10/8/20 11/5/20 12/3/20 1/14/21 1/21/21 1/28/21 2/11/21 2/18/21 2/25/21 3/11/21 3/18/21 3/25/21 4/15/21 4/22/21 4/29/21 5/13/21 10/15/20 10/22/20 10/29/20 11/12/20 11/19/20 11/26/20 12/10/20 12/17/20 12/24/20 12/31/20 Anthony Hall Dr Dinakar (Dino) Gnanamgari Executive Director, LLB(Hons), BBus, AGIA Chief Commercial Officer / Chief Technical Volume Price Officer, PhD, BSc Qualified lawyer with over 20years´ commercial experience in venture capital, risk management, Recent Key Releases Dino is an experienced specialty chemical industry strategy and business development. Anthony was a Founding Director of American Pacific Borates and leader with proven experience in global profit and ▪ 11 June 2021 – ABR Appoints New CEO loss management, marketing, business managed its listing process on the ASX in development, product management and research ▪ 19 May 2021 – ABR Announces Senior Management Appointment 2017. Prior to his role with American Pacific Borates and development. Dino previously held senior roles Anthony spent five years as the initial Managing with FMC Corporation, Axalta Inc. and Albemarle ▪ 10 May 2021 – ABR Defers Phase 1A of Fort Cady Mine to Enhance US Listing Director of ASX listed Highfield Resources Limited Corporation where he most recently was Global taking it from a $10m IPO valuation to an ASX300 Business Vice President, Lithium Specialties at ▪ 7 May 2021 – ABR Executes LOI with Compass Minerals for SOP Sales company. Albemarle Corporation. Dino holds a Ph.D. from Yale University in Inorganic Chemistry ▪ 21 April 2021 – ABR Makes Transformational Appointments to Drive US Listing AMERICAN PACIFIC BORATES 5
3. BORON 101 – WHAT IS BORON? Over 80% of global supply comes from borate salt operations in Turkey and California Boron Global Borate Production ▪ Fifth element in the periodic table ▪ Essential element that pervades modern life Periodic Table with the Element Boron highlighted How Borate Deposits are Formed Map showing global production centers for borates Borate Mineral Chemical Composition % B2O3 Where Mined Borax (Tincal) Na₂B₄O₇ - 10H₂O 36.5% California & Turkey Kernite Na₂B₄O₇ - 4H₂O 51.0% California Ulexite NaCaB₅O₉ - 8H₂O 43.0%. California & Turkey Colemanite Ca₂B₆O₁₁ - 5H₂O 50.8% Turkey Table showing the main mined borate minerals globally Schematic showing genetic geological model for borate deposit formation (Helvaci, 2015) AMERICAN PACIFIC BORATES 6
3. BORON 101 – WHAT IS BORON? Boron is one of the most widely used elements in our society Boron Overview Boron in the press ▪ Borates are naturally-occurring minerals containing boron and is an essential element that pervades modern life. Boron – A Critical Nutrient Required for Root Growth and Potassium Uptake. ▪ Boron is classified as a strategic commodity in many countries, including the US. A balanced supply for essential macro- and micronutrients is one of the most important factors to achieve higher crop yields. ▪ Boron exists everywhere – plants need boron to grow and people need borates in AgriSight their diet. – They are used in permanent magnets, adhesives, agriculture, borosilicate glass (TFT LCDs, fibre-optics), ceramics, detergents, drilling fluids, fibreglass, Boron takes the strain out of Li-ion battery electrodes. flame retardants, fuel cells, lithium-ion batteries, metallurgy, nuclear reactors, Widespread adoption of electric vehicles (EVs) is needed to reduce carbon emissions personal care products and water treatment processes and dependence on fossil fuels, but limited range and high cost puts off many would-be – This broad application means demand is driven by the ‘big picture’ trends of buyers. Materials Today increasing energy efficiency, food security and urbanisation Borates demand by end use (2017) Boron nitride nanofilms will replace antibiotics while protecting against bacterial and fungal infections. Others Insulations Scientists have presented antibacterial nano-coatings based on boron nitride, which are 17% 19% highly effective against microbial pathogens (up to 99.99%). They can become a safe alternative to the usual antibiotics in implantology since they do not have typical negative side effects. The results of the work are published in the international scientific journal. The National University of Science and Technology MISiS Agriculture Borosillicate 13% Glass 11% TFT LCDs Sorry, graphene—borophene is the new wonder material that’s got everyone excited. 3% Stronger and more flexible than graphene, a single-atom layer of boron could Industrial/Chemical revolutionize sensors, batteries, and catalytic chemistry. Electrochemists think borophene 11% TFG Fiberglass 10% could become the anode material in a new generation of more powerful lithium-ion Frit-glazed batteries. Chemists are entranced by its catalytic capabilities. And physicists are testing ceramics its abilities as a sensor to detect numerous kinds of atoms and molecules. 16% Technology Review Source: ABR, Rio Tinto AMERICAN PACIFIC BORATES 7
3. BORON 101 – WHAT IS BORON? Increasing uses in decarbonisation applications Uses for Boron Demand for Borates ▪ Traditional uses for Boron are typically in Fiberglass, Ceramics, and in Fertilisers. Food Security ▪ Increasingly, Boron is now linked to new world applications relates to Clean Energy, Urbanisation and Food Security. Magnets Ceramics Wind Cosmetics Nuclear Detergents Turbines Reactors Industria- lisation Global borates demand (B2O3 equivalent) 3000 Electric EVs Fertilisers Wood Glass Fire Transport Gypsum Treatments Retardants 2013-25 CAGR % 2500 Highly concentrated market 5-6 ▪ The global boron market is dominated by two companies, Eti Maden (Turkish 2000 government owned) and Boron (US), a subsidiary of Rio Tinto. Together, they supply ~80% of global boron. Eti Maden alone supplies over 60% of the world market. 3-4 ▪ This concentration reflects that occurrences of economically viable borates deposits are 1500 rare. – Only four main regions have large-scale borate deposits. Anatolia (Turkey), California 1000 4-5 (US), Central Andes (South America) and Tibet (Central Asia) – In addition to dominating borates production Turkey has ~73% of the world’s total boron reserves 500 Production of Boron ▪ Most global production of boron comes from mining and processing colemanite, borax or 0 kernite ores. 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 – Fort Cady is a colemanite orebody Urbanisation Energy Efficieny Agriculture ▪ Some production comes from boron rich brines. Source: JP Morgan, Company reports AMERICAN PACIFIC BORATES 8
3. BORON – US MARKET AND PARTICIPANTS Limited new supply aside from Turkish Government in the short to medium term Duopoly market with very few global sources of borates Boron Rio Tinto in the US Market ▪ The global boric acid equivalent market is around 4.5Mtpa. ▪ Rio Tinto Boron (majority of US production) appears to be operating at full capacity with flat supply for over ten years. ▪ Around 20% of this market is for fertiliser application with boron being the second most consumed micro nutrient in North America by value. ▪ Production at Rio Tinto Boron in the US has remained stable. In 2020, Rio Tinto Boron produced 480,000 tonnes of boric oxide, equivalent to ~852,000 tonnes of ▪ Eti Maden appears to be the only borate producer with meaningful additional boric acid. capacity capable of meeting additional supply requirements. Borate Supply Curve (excludes ABR Supply) Rio Tinto Boron BA (H3BO3) production 8,000 1,000 ROW 900 7,000 USA - ex Thousand tonnes of Boric Acid Thousand tonnes of Boric Acid ABR Turkey 800 6,000 700 5,000 equivalent equivalent 600 4,000 500 400 3,000 300 2,000 200 1,000 100 - - 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Calendar Year Source: Roskill, ABR estimates and Rio Tinto Note: Assuming a BA grade of 56% AMERICAN PACIFIC BORATES 9
4. FORT CADY – INTEGRATED BORON FACILITY In the right place at the right time Highlights ▪ Excellent jurisdiction (USA – California) ▪ Infrastructure and utilities in place ▪ Local community and talent Interstate Highway ▪ Rare boron resource that can be solution mined Gas • Water • Gas Line ▪ Favourable impurity profile Mine Office ▪ Significant co-product benefits – SOP Approved Spur Rail Line ▪ Multiple potential products (under evaluation while in discussion ALBEMARLE with partners / customers: - SILVER PEAK Approved Solution Mining Region ▪ Boric acid Approved Water Infrastructure ▪ Advanced B-materials ▪ Boron specialties High Voltage Power Line ▪ SOP+B Project map showing infrastructure and utilities AMERICAN PACIFIC BORATES 10 10
5. FORT CADY – RESOURCE AND SOLUTION MINE Off the shelf equipment with an ore body that has been mined previously JORC compliant Mineral Resource Estimate and Reserve (3 December 2018*) Highlights ▪ Rare boron resource amenable to solution mining ▪ Potential for lithium extraction but not included in current models ▪ Permitted for Flow Sheet ▪ Low cost HCl reagent supplied by SOP operation ▪ Testing reagent temperature for potential significant benefits to plant design Fort Cady Simplified Flowsheet ▪ Small-scale commercial operation for value engineering and product in 2022 is under development SOP Processing Solution Mining Boric Acid Processing ▪ Sustainability focus will be a key part of design * ABR confirms all material assumptions and technical parameters underpinning the Resource Estimate and Reserve continue to apply and have not materially changed as per Listing Rule 5.23.2 AMERICAN PACIFIC BORATES 11
6. END-USE APPLICATIONS An enabler of global decarbonisation THREE MAJOR THEMES FOR END-USE ▪ Energy transition ▪ Crop science – food security ▪ Safety and performance materials MANY APPLICATIONS SUPPORT THE WORLD’S DECARBONISATION TARGETS ▪ Green energy generation ▪ Permanent magnets for electric drive trains ▪ Energy storage (Li-ion and Li-S batteries) ▪ Energy efficiency (fibre-glass insulation) ▪ Micro-nutrients to increase crop yield AMERICAN PACIFIC BORATES 12
6. END-USE APPLICATIONS – PERMANENT MAGNETS Boron is uniquely applied to NdFeB permanent magnets Permanent Magnets Overview Permanent Magnets ▪ Neodymium ferro boron magnets are likely to be in high demand for EVs, regardless of which energy approach wins (refer to battery technology in figure to the right). This will increase the demand for Boron over the next 20 years. 100 Global Electric Vehicle Units Sales 100% 90 90% 80 80% 70 70% Unit Sales (MM) 60 60% 50 50% 40 40% 30 30% 20 20% Dominant Motor Technology 10 10% Neodymium / Permanent Magnet 0 0% 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E 2031E 2032E 2033E 2034E 2035E 2036E 2037E 2038E 2039E 2040E 2019 Lithium Ion Battery Technology Unit Sales % of Total Global Unit Sales Battery Chemistry LCO LMO LFP NMC NCA ▪ “The smaller size / weight, higher torque density and improved efficiency of permanent magnet motors compared to induction motors make them attractive for use in HEV and EVs, as they provide better acceleration, reduce vehicle weight Select OEMs and allow greater space for other components. It is expected that other models will introduce permanent magnet motors to improve their performance and range as the EV market becomes more competitive.” - Roskill Source: Roskill, Morgan Stanley Research, CRU AMERICAN PACIFIC BORATES 13
6. END-USE APPLICATIONS – ELECTRIC VEHICLES Many and wide uses in electric vehicles Cleaning Chassis Brakes Glass Airbag Insulation Battery Drivetrain Clean Energy Detergents Steel Ceramic Borosilicate Firing Acoustic Anode Permanent magnet Wind turbine/Solar mechanism Electric Vehicles need Borates AMERICAN PACIFIC BORATES 14
6. END-USE APPLICATIONS – GREEN ENERGY Important in main green energy technologies WIND TURBINES ▪ Drive trains ▪ Blades SOLAR PV MODULES ▪ Glass in cells NUCLEAR POWER PLANTS ▪ Nuclear reactor AMERICAN PACIFIC BORATES 15
6. END-USE APPLICATIONS – MICRO-NUTRIENTS Micro-nutrients like boron serve to increase yield Functions of Boron in Plants Flower production Cell wall and structure FOOD SECURITY Fruit quality and shelf life Photosynthesis Boron is one of the eight essential micronutrients or trace elements required by plants. Lateral root development Crops with boron sensitivity include: broccoli, cabbage, cauliflower, turnips, rice, beetroot, spinach, asparagus, carrots, eggplants, leeks, okra, onions, parsnips, radishes, strawberries, sweet corn, tomatoes, and potatoes AMERICAN PACIFIC BORATES 16
6. END-USE APPLICATIONS – FERTILISERS Specialty boron fertilisers being sold at a significant premium ▪ Mosaic’s Aspire product combines two forms of boron with potassium into a ▪ Compass’ Wolf Trax Boron DDP (Dry Dispersible Powder Technology) single granule for uniform nutrient distribution, ensuring each plant receives micronutrient and secondary nutrient fertilisers are designed to coat onto dry balanced nutrition for maximum yield potential. fertiliser blends and deliver highly-available nutrition through better distribution – Aspire utilises two forms of boron — quick-release sodium borate and in the field than traditional granular fertilisers. gradual-release calcium borate — delivered at the root level, providing – This results in even, blanket-like distribution of boron across a field, season-long nutrient availability throughout the plants life cycle delivering a safe dose of boron and placing the nutrient closer to plant roots ◦ Because Aspire’s two forms of boron provide continuous boron nutrition for earlier plant uptake. throughout the growing season, growers have the option to apply Aspire ▪ Wolf Trax Boron DDP is chemically and physically designed for earlier uptake. in either the spring or fall The particle size is ideal for plant uptake and the nutrients are formulated to – Mosaic outlines that the Aspire boron delivery system can significantly resist soil tie-up and remain plant-available. improve root development, nutrient uptake and pollination and is proven to ▪ Formulated with at least two forms of the boron minerals, providing immediate increase yields across a variety of crops and soil conditions nutrient uptake by the plants, as well as continuous feeding over time. This ensures nutrients are available to the plant at the right time, and deficiencies are corrected during critical growth stages. – Plants benefit from early and prolonged feeding of boron Boron in crop production Reasons for boron deficiency Common crops affected Visual symptoms ▪ Boron maintains a balance between sugar 1. High soil PH • Alfalfa • Yellowing between veins and and starch. 2. Leaching in coarse soils • Canola young leaves ▪ Boron is essential for proper cell wall 3. Low soil organic matter • Cotton • Cotton: Limited vertical growth formation. making plant appear bushy 4. Low soil moisture • Fruit trees ▪ Boron is important in pollination and seed • Corn: Missing kernels 5. High calcium level • Vegetables reproduction. • Stunted new growth or dieback of shoot tips Source: Mosaic, Compass Minerals AMERICAN PACIFIC BORATES 17
7. KEY MILESTONES Milestones to ensure ABR becomes a globally significant producer of borates CORPORATE CAPABILITY ▪ Build out world-class US based management team Process Optimisation PRODUCT DEVELOPMENT ▪ Initial product in 2022 Product Value Development Creation PROCESS OPTIMISATION ▪ Making the right products for the lowest cost and highest margin VALUE CREATION ▪ Establish boron specialties’ business to focus on high-tech and high- performance applications Corporate US Listing Capability US LISTING ▪ Progress US listing whilst supporting ASX listing Industry INDUSTRY PARTNERSHIPS Partnerships ▪ Target partners to support high-tech and high-performance product development AMERICAN PACIFIC BORATES 18
8. SUMMARY An emerging leader in boron advanced materials and specialty products CRITICAL ADVANCED MATERIALS ▪ New producer of critical advanced material – boron-based specialties GROWING PRODUCT DEMAND ▪ Supporting critical end-markets (energy transition, crop science, safety) ENABLING DECARBONISATION ▪ Many end-market applications supporting global decarbonisation goals LIMITED NEW SUPPLY ▪ Favourable global supply-demand dynamic RARE BORON ASSET ▪ Rare US-based boron asset enabling low-cost production of base and speciality boron products WORLD-CLASS MANAGEMENT ▪ US based executive management ready for execution AMERICAN PACIFIC BORATES 19
Boron – the “enabler” of global decarbonisation Anthony Hall Executive Director +61 417 466 039 ahall@americanpacificborates.com Elvis Jurcevic Electric Green Energy Energy Food Powertrain Investor Relations Energy Storage Efficiency Security (magnets) +61 408 268 271 ej@irxadvisors.com
You can also read