october 2011. disclaimer the views expressed here contain information derived from publicly...
TRANSCRIPT
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Disclaimer
The views expressed here contain information derived from publicly available sources and have
not been independently verified.
No representation or warranty is made as to the accuracy, completeness or reliability of the
information.
Any forward looking information in this presentation has been prepared on the basis of a number
of assumptions which may prove to be incorrect. For additional information on these or other
factors, please see the Company’s filings on SEDAR. This presentation should not be relied upon
as a recommendation or forecast by Western Potash Corp.
Nothing in this presentation should be constructed as either an offer to sell or a solicitation of an
offer to buy or sell shares in any jurisdiction.
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Western Potash Corp. Strengths
• World Class Resource
– Updated NI 43 101 Technical Report
• Positive Economics
– Preliminary Economic Assessment
(Scoping Study)
• Ability to Deliver the Project
– Management Experience
Financial Overview
Stock Symbol
• TSX – WPX, FSE - AHE
Cash
• CAD $28 Million
Shares Outstanding
• 160,945,183
Market Capitalization
• CAD $230, 151, 612
Warrants
• 9M($1.75), Expiry June 2013• 1.27M($1.10), Expiry June 2013
Management Holdings•14.9%
Trading Range, as of Oct. 13th, 2011
• $0.70 - 1.55 (52 week)
Average Daily Volume, (78 Days, since TSX Listing) as of Oct. 13th, 2011
• 1 ,334, 614
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June 30, 2011 Financial Information, Close June 30th, $1.43
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World Class Resource
Updated NI 43 101 Technical Report
• Measured (Recoverable)
64 Million Tonnes, 30.47% KCL
• Indicated (Recoverable)
180 Million Tonnes, 30.35% KCL
• Inferred (Recoverable)
701 Million Tonnes, 30.31% KCL
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Milestone Project
Phase 1 & 2 Drill Program
(20, 153m)
NI 43 101 Compliant Mineral Resource Estimate
Measured & Indicated 174 Mt recoverable KCLInferred 560 Mt recoverable KCL
Scoping Study Delivered
Updated NI 43 101 Technical Report
Measured & Indicated 244 Mt recoverable KCLInferred 701 Mt recoverable KCL
Prefeasibility Study Completed
Feasibility Study Process Initiated
FeasibilityCompletion
2009 2010 2011 2012
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Solution Mining Benefits
• Proven Process, Mosaic Belle Plaine Mine
(45 yrs.)
• Reduced CAPEX
• Shorter payback period, higher IRR
• Faster timeline to production
• Scalability
• Lower technical risk
• Reduced environmental footprint
• Reduced health and safety risk
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Positive Economics
• Positive and Robust Preliminary
Economic Assessment Delivered
– (Scoping Study)
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Scoping Study Highlights
AMEC’s EPCM experience with five
Potash Corp mines adds credibility to
the CAPEX estimates for this project.
• (NPV10) 5.22 Bn1 CAD: IRR 27.3%*1. CRU Projected prices ($511)
• Production rate of 2.5 Mt per year
• 40 year mine life
• Total CAPEX $2.51 billion CAD
• 8.5% Reduction of production costs due to the high formation temperatures
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Western Potash Corp. vs. African Explorers
Risk Assessment
Western Potash Africa
Infrastructure
Maintenance Roads Railway Deep Water Ports Fresh Water Electrical Energy Climate
LOW HIGH
Geological
Mining Plan Engineering Geologic Zone Carnallite Technology
LOW HIGH
Environmental
ProceduresLOW LOW
Political
Political Stability Government Accessibility
LOW HIGH
Financial Project Financing
HIGH HIGH
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Global GDP
1900 - 1920
1920 - 1930
1930 - 1940
1940 - 1950
1950 - 1960
1960 - 1970
1970 - 1980
1980 - 1990
1990 - 2000
2000 - 2010
2010 - 2020
2020 - 2025
0
1
2
3
4
5
6
Growth rate(% per annum)
Developing economies
Developed economies
Source: 1900 - 1980 - J. Bradford De Long ("Estimates of World GDP", 1998); 1980 to 2010 - IMF World Economic Outlook Database; 2010 to 2025 Forecast - Global Insight
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GDP Growth
0 200 400 600 800 1000 1200 1400 16000
10
20
30
40
50
South Africa
Chile
SouthKorea
AustraliaCanada
Japan
Japan1980
Russia
Brazil
US1980
US
Eurozone
India
ChinaIndia 2030
China2030
World GDP per capita1 (US$'000, real 2005 PPP)
Population(million persons)
Bubble size = GDP of US$5 trillion (real 2005 PPP)
Source: Global Insight; BHP Billiton analysis.1. All figures for 2009 unless mentioned otherwise
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More CompetitiveLow Pricing Power
Less CompetitiveHigh Pricing Power
Share of the total production which is attributed to the top 5 companies in the industry.
Consolidation rates
Source: CRU Strategies
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Saskatchewan, Canada
Competitive
• Largest Potash Producer in the
world, +30%
• Hosts 50% of the World`s Reserves
• Value of SK. Potash sales in 2009
were $3.1 billion
Investment Climate
• Potash Production has been continuous since 1962
• Potash Industry will invest $12 billion in development from 2005-2020
• SK. Greenfield development encouraged
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Ability to Deliver the Project
• Management Experience
• Engineering Process 3 Months
ahead of schedule
• Financed through the completion
of Robust Feasibility
• Commercial Team Formed
• Strategic Partner Identification
• Partner Acquisition strategy
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Management
President & CEOPatricio Varas•Professional Geologist with over 24 years experience in exploration, project development and corporate management.•WPX President and CEO since inception.
Executive Vice PresidentDean Pekeski•Professional Geologist with over 17 years experience in mineral exploration.•Previously the VP of Exploration with WPX.
VP Corporate DevelopmentJohn Costigan•Over 25 years experience in technical sales and marketing to the mining, food, and pulp & paper multinationals.•VP of Corporate Development at WPX since inception.
VP Corporate Finance & DirectorPatrick Power•Over 17 years of experience as a stock market professional and as director of public companies. •Played a critical role in raising approximately 80 million for WPX to date.
Economics and ModellingIan Graham•Over 20 years of mineral exploration and evaluation experience with Anglo American and Rio Tinto.•Geological and project management experience in the field of mineral exploration and project development in Canada and abroad.
Financial AdvisorJohn King Burns
•Experience with Drexel Burnham Lambert Inc. and Barclays Bank Plc, Metals Group.•Provides both strategic and tactical advice to management in combination with financial advisory services.
Consultants and Technical Advisors
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Western Potash
Seismic Operations and Interpretation
RPS BoydPetro-Search
Resource, Mine Plan and
Cavern DesignAgapito
Scoping Study, PFS
AMEC Americas Ltd
EnvironmentalGolder
Associates
Land Administration
Brady Land
Geomechanical Testing and Subsidence
RESPEC
Taxation, Royalties & EconomicsRevenant Consulting
Potash Geological
AdvisorRon Brown
Geotechnical Engineering
Kuchling Consulting
Evaporation-Crystallization
TechnologyWhiting
Wellfield Engineering
Sabine Storage
Dissolution Testing
NG Consulting
NovoproTechnical Advisor
Drilling Consultants
Impact
Market Analysis
CRU Strategies
Board of Directors
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Conclusion
• World Class Resource
– Updated NI 43 101 Technical Report
– High Grades (+30% KCL)
– Low Risk Development Environment
• Positive Economics
– PEA (Scoping Study)
– 40+ year mine life at 2.5 TPY
– IRR: 27.3%, CAPEX: $2.51 billion
– Reduction in Production Costs of 8.5%
• Ability to Deliver the Project
– Management Experience
– Amec Americas, Feasibility process (ahead of
schedule)Source: AMEC Americas Ltd.
Suite 1818 - 701 West Georgia St.Vancouver, British ColumbiaV7Y 1C6, Canada604.689.WEST (9378)[email protected]
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