WHO WE ARE POTASSIUM CHLORIDE (KCl ... - Verde Potash Plc

WWW.VERDEPOTASH.COM TSX: NPK
AT-SURFACE POTASH IN THE HEART OF BRAZIL’S
AGRICULTURAL REGION
WHO WE ARE
Verde Potash, a Brazilian fertilizer development company,
is focused on advancing the Cerrado Verde Project located
in the heart of Brazil’s largest agriculture market. Cerrado
Verde hosts a large, at-surface deposit of potassium-rich
verdete slate for which the company has developed a
simple process to produce potassium chloride (KCl). In
addition, the company is developing its Calcario limestone
project; limestone being a key raw material in the verdete
to KCl production process.
CERRADO VERDE
A Potash Solution for Brazil’s Growing Potash
Problem
Current 43-101 mineral resource estimate:
TOTAL
INDICATED
TOTAL
INFERRED
CUT-OFF
GRADE (% K 20)
TONNAGE
(Mt)
AVERAGE
GRADE (% K 20)
7.5 71.08 9.22
7.5 2,763.80 8.91
POTASSIUM CHLORIDE (KCl)
POTASH PRODUCT
• A preliminary economic assessment for the production
of potassium chloride (KCl) from verdete was published
in February 2012 by SRK Consulting.
• Production process uses off the shelf equipment
identical to that employed in the production of cement
(i.e., standard rotary kiln operating at > 860°C vs. the
cement process at ~1,400°C).
• Process uses simple reagents: salt (NaCl) and
limestone.
Key Economic Highlights:
TOTAL PRODUCTION: 3 MTPY GRANULAR KCl
Phase 1:
0.6 Mtpy
(2015)
Phase 2:
1.6 Mtpy
(2017)
Phase 3:
3.0 Mtpy
(2019)
• 253 million tonnes of in-situ K 20; more than three decades
worth of Brazilian consumption at 2011 rates.
• Potash minerals microcline and muscovite occur at surface to
a depth of 85m.
• Potassium-rich rock (“verdete”) is distributed over an area
approximately: 100km x 6km x 20m to 80m thick.
• Potential mining operation: open pit, friable rock, no
overburden.
• 40,225 metres of reverse circulation drilling and 1,717m of
diamond drilling completed over the last three years.
BRAZIL AGRICULTURE
• Brazil is a dominant agricultural power; #1 global exporter of
sugar, coffee, poultry and orange juice and the #2 global
exporter of beef and soybeans.
World share 2011/12, %
Capex per phase
(USD million)
Capex for Total
3 Mtpy production
(USD million)
(excludes sustaining
capital)
Operating Costs
(USD/t KCl)
598 732 1,008
2,338
285
IRR (%) 27.1
After Tax NPV
(USD million), at 10%
discount rate
3,367
PEA was based on the following assumptions:
• Production of 100% granular fertilizer grade KCl (≥60% K 20).
• Base case scenario – Total production of 3 Mtpy in three phases:0.6 Mtpy
(start up: H2 2015), 1.6 Mtpy (start up: 2017),3 Mtpy (start up: 2019).
• A total planned production life of 30 years for 3 Mtpy.
(Source: USDA Foreign Agricultural Service)

KCl (millions of tonnes)
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
WWW.VERDEPOTASH.COM TSX: NPK
TRANSPORTATION ADVANTAGE
• Our location in Minas Gerais state, Brazil offers a
significant and lasting competitive advantage vs.
offshore suppliers.
• Saskatchewan potash producers face transportation and
logistics costs to blenders in Brazil's Cerrado of US$188
to US$240 per tonne.
• Our privileged location in the Cerrado will provide us
with amongst the lowest delivered cash costs to
Brazilian buyers.
POTASH CONSUMPTION PER
FERTILIZER BLENDER
DISTRICT 2011
BRAZIL’S ANNUAL KCl
CONSUMPTION
9
8
7
6
5
4
3
2
1
0
(Source: FAO, IFA)
DEPENDENCY ON IMPORTED
POTASH
• Brazil was the largest importer of potash in the world in
2011.
• In 2011, Brazil consumed 8.1 million tonnes of KCl, of
which 7.5 million tonnes was imported (ie. imports
account for 92% of consumption).
• Brazilian government has a stated goal of fertilizer
independence by 2020.
• Brazil’s potash consumption is forecast by CRU to
reach 12.6 million tonnes of KCl in 2020.
(Source: CRU Fertilizer Week; FERTECON report (FERTECON, 2009, /15/); CRU, 2012)
• Approximately 60% of Brazil’s fertilizer consumption takes
place in Minas Gerais and nearby states.
• KCl consumption expected to grow 5.3% per year in
Brazil through 2020.
(Source: CRU, 2012)
SYMBOL NPK: TSX
SHARES ISSUED (November 1, 2012) 37,336,115
FULLY DILUTED 40,997,097
52 WEEK: HI/LO C$8.99/C$2.67
3-MONTH DAILY AVERAGE VOLUME 33,656
MARKET CAP (AT $3.42)
CASH POSITION (September 30, 2012)
DEBT C$0
C$128 million
C$21.1 million
www.verdepotash.com
investor@verdepotash.com
Canada
47 Colborne Street, Suite 307
Toronto, Ontario M5E 1P8
Ph: 1(416)866-2966
Fx: 1(416)866-8829
Management
Founder, President & CEO - Cristiano Veloso
Chief Operating Officer – Pedro Ladeira
Chief Financial Officer – Milson Mundim
VP Mining – Rubens Mendonça
VP Engineering – Dr. Patricia Radino-Rouse
VP Corporate Development – Jaret Anderson
Metallurgical Consultant – Dr. Derek Fray
Process Manager – Rodolfo Rezende Silva
Board of Directors
Peter Gundy (Chairman)
Dr. G. Lamartine de P. Fonseca
Dr. Henrique Cavalcanti
Dr. Renato Gomes
Dr. Richard Garnett
Cristiano Veloso
Jed Richardson
Technical Advisory Committee
Ysao Munemassa
Dr. Richard Garnett
Dr. Derek Fray