ASX:DNK
Paul Donaldson, Managing Director
RUI Sydney Resources Round Up Conference
10 - 11 May 2017
Forward looking statements and disclaimerThe information in this presentation is published to inform you about Danakali Limited (the "Company" or "DNK") and its activities. DNK has endeavoured to ensure that the information enclosed is accurate at the time of release, and that it accurately reflects the Company's intentions. All statements in this presentation, other than statements of historical facts, that address future production, project development, reserve or resource potential, exploration drilling, exploitation activities, corporate transactions and events or developments that the Company expects to occur, are forward-looking statements. Although the Company believes the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements.
Factors that could cause actual results to differ materially from those in forward-looking statements include market prices of potash and, exploitation and exploration successes, capital and operating costs, changes in project parameters as plans continue to be evaluated, continued availability of capital and financing and general economic, market or business conditions, as well as those factors disclosed in the Company's filed documents.
There can be no assurance that the development of the Colluli Project will proceed as planned. Accordingly, readers should not place undue reliance on forward looking information. Mineral Resources and Ore Reserves have been reported according to the JORC Code, 2012 Edition. To the extent permitted by law, the Company accepts no responsibility or liability for any losses or damages of any kind arising out of the use of any information contained in this presentation. Recipients should make their own enquiries in relation to any investment decisions.
Mineral Resource, Ore Reserve and financial assumptions made in this presentation are consistent with assumptions detailed in the Company's ASX announcements dated 25 February 2015, 4 March 2015, 19 May 2015, 23 September 2015, 30 November 2015, 15 August 2016 and 1 February 2017 which continue to apply and have not materially changed. The Company is not aware of any new information or data that materially affects assumptions made.
HIGHLIGHTS Colluli is a world class development and meets all the criteria of a Tier 1 projectLarge, long life, high quality resource close to coast and global markets
One of the highest grade sulphate of potash resources in the world
Shallowest known evaporite deposit globally
Sulphatic salts extracted in solid form
60km from the coast and 200km from established shipping infrastructure
1.3 billion tonne potassium resource containing a 1.1 billion tonne reserve1,2
Estimated mine life in excess of 200 years based on DFS production rates4
Sulphate of Potash (SOP) is a premium potash typePremium, chloride free potash type providing both potassium and sulphur3
Economically exploitable primary resources are geologically scarce
Limited advanced stage primary projects in the development pipeline
Supply gap has been bridged by high cost, manufactured secondary product which provides price support for primary producers3
Positive DFS demonstrates outstanding economicsColluli demonstrates the most favourable economics relative to all advanced stage SOP projects globally4
Low development capital4
Industry leading capital intensity4
Bottom quartile operating costs4
Low incremental growth capital4 1. ASX Announcement, 25th February 2015
ASX Announcement, 19th May 2015
CRU Consultants, Integer Research
ASX Announcement, November 2015
HIGHLIGHTS Front end engineering design optimisation highly favourable1SOP output increase of over 10% following processing plant debottlenecking1
Development capital reduction opportunities identified (water reduction, elimination of offsite infrastructure, pit development approach and processing plant footprint size reduction) and being progressed1
Simple, commercially proven production processProduction of SOP from kainite and sylvite is a proven, low cost, high yield process utilising simple, proven mineral processing units
Unrivalled diversification and upside potentialThe Colluli resource has the capability of producing a multi agri-commodity suite including sulphate of potash (SOP), sulphate of potash magnesia (SOP-M), Muriate of Potash (MOP), polyhalite, magnesium sulphate (kieserite fertiliser) and gypsum
In addition, the resource comprises over 300 million tonnes of high quality rock salt and appreciable amounts of magnesium chloride
Fully permittedMining agreement signed2
Mining licenses awarded2
Social, Environmental Impact Assessment Approved4
Offtake discussions well progressedMOU's signed for entire product volume. Heads of agreements progressing with completion targeted for the end
of Q2
3 1. ASX Announcement, 3rd May 2017
ASX Announcement, 1st February 2017
ASX Announcement, 20th July 2016
ASX Announcement, 6th December 2016
Danakali Ltd. published this content on 12 May 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 12 May 2017 06:39:13 UTC.
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