1. Click to edit Master title style
GQ FERTILIZER
TSX-V
AFRICA
BUILDING FOR GROWTH WHERE
THE WORLD IS GROWING
2. Disclaimer
This presentation contains forward-looking statements or forward-looking information within the meaning of applicable
securities legislation (hereinafter collectively referred to as "forward-looking statements") concerning the Company's plans for
its properties, projects, operations, subsidiaries and other matters. These statements relate to analyses and other
information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of
management regarding operations of the Company which are subject to a variety of business and market risks, including
political and regulatory risks associated with mining and exploration in Mali.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or
"does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that
certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not
statements of historical fact and may be forward-looking statements.
These forward-looking statements are based on certain assumptions which the Company believes are reasonable, however,
forward-looking statements are subject to a variety of business and political risks and uncertainties. Some of the important
risks and uncertainties that could affect forward-looking statements are also described in the Company's continuous
disclosure filings made with Canadian securities regulatory authorities, which are available at the SEDAR website and on the
Company’s website. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove
incorrect, they may adversely affect the Company’s business and prospects and actual results may vary materially from those
described in forward-looking statements. Forward-looking statements are made based on management's beliefs, estimates
and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking
statements if these beliefs, estimates and opinions or other circumstances should change, other than as required by
applicable laws. Investors are therefore cautioned against placing undue reliance on forward-looking statements.
The Company cautions that the PEA is preliminary in nature, as it includes “Inferred Mineral Resources” which are considered
too speculative geologically, to have the economic considerations applied to them that would enable them to be categorized
as "Mineral Reserves". There is no certainty that the PEA will be realized, as Mineral Resources do not demonstrate economic
viability.
The technical information in this presentation has been reviewed by Jed Diner, MSc. P.Geol., a qualified person as defined by
National Instrument 43-101.
2
3. Stock
Informa-on
3
As
of
March
6,
2014
STOCK
INFORMATION
TSX-‐V:
GQ
SHARES
OUTSTANDING
48,817,941
-‐OPTIONS
3,815,000
-‐WARRANTS
4,356,293
FULLY
DILUTED
54,989,234
52-‐WEEK
LOW/HIGH
$0.45/$2.54
3-‐MONTH
AVG.
VOL.
77,780
MARKET
CAP.
$91.8M
Le
Main
de
Fa7ma
–
Northern
Mali
4. Our Goal
• Building a Pan African Fertilizer
Manufacturer
– Developing agricultural mineral projects
for local production of field ready
fertilizers
– For regional delivery
• Targeting
– Phosphate Direct Application and SSP,
At Surface Potash Brines, Sulfur and
Lime Projects
– Establishing centers in areas of rapid
agricultural growth West, East and
Southern Africa
4
IER
Sotuba
Test
Plot
(CoGon)
5. Our Strategy
Follow strict development criteria
• Must reach field ready product with compelling investment returns on
capital expenditure of less than $200MM
• Existing market sufficient to absorb planned production within cost
effective transport radius
– Does not include growth potential
– Does not include out of Africa export potential
Africa’s history as exclusively an exporter of resources means many
projects that fit our criteria have been ignored for logistical reasons
This strategy also insulates our proposed business from the ups and
downs of the world fertilizer market, hinging its success to the revolution in
African Agriculture already underway and growth in global food demand
5
6. 6
Source:
EBG
Capital
60% OF THE WORLD’S ARABLE LAND IS IN AFRICA
According
to
Zürich-‐based
advisory
firm,
EBG
Capital,
sub-‐Saharan
Africa
offers
590m
hectares
of
available
cropland,
while
the
rest
of
the
world
offers
just
380m
hectares.
• Only
23-‐30%
of
arable
land
in
W.
Africa
is
currently
culVvated
• Low
ferVlizer
usage
(9kg/
ha
vs.
101kg/ha
in
the
rest
of
the
world)
Why
Africa
7. 7Source:
GRAIN,
AGRA
Alliance,
McKinsey
Agribusiness
project
sizes
–
January
2012
(investment
underway
or
completed
in
‘000s
USD)
“Africa
has
the
poten-al
to
create
a
trillion-‐dollar
food
market”
(World
Bank)
• 62%
of
all
large-‐scale
land
acquisiVons
since
2000
have
occurred
in
Africa.
• Agriculture
in
Africa
will
grow
from
its
current
$280
billion
a
year
to
$500
billion
in
2020,
and
$880
billion
by
2030.
• Nigeria’s
agricultural
sector
could
grow
by
a
colossal
160%
by
2030,
rising
from
$99
billion
in
2010
to
$256
billion
two
decades
later.
AFRICA IS ATTRACTING LARGE AGRIBUSINESS
INVESTMENTS
Why
Africa
8. Why Fertilizer
• Fertilizer offers a unique
conjuncture of business
opportunities
– Agriculture’s predictable
demand and strengthening
growth profile
– Mining’s expected rates of
return
• An ideal way to profit from two
widely expected market trends
– Increasing global food demand
– African development
8
Irriga7on
Canal
–
Niono,
Mali
9. 9
• World
popula-on
projec-on
10
billion
people
by
2100
• Africa’s
populaVon
is
expected
to
double
to
2
billion
by
2050.
• A
more
affluent
world
will
consume
more
food
Grain
required
to
produce
1kg
of
meat
(Sources:
SproG)
World
popula@on
growth
Arable
land
per
capita
• The
amount
of
arable
land
per
capita
is
shrinking
World
popula@on
projec@on
Why
Fer-lizer
in
Africa
11. Botswana Potash
• Exclusive right to develop potash
present at Sua Pan operation of
Botswana Ash Corporation
• Historical work published by the World
Bank suggests that the Sua Pan salar
was capable of producing 163,000 tons
per year, including potential to produce
21,000 tpy of K2SO4
• KCl concentrations in bitterns are
reported to exceed 10.9 grams per litre
(g/L), which is more than a 100%
improvement over the native brine
concentration of 4.3 g/L as measured
by Botswana Ash. This compares
favorably with potash concentration in
the brine from the Dead Sea of 6.2 g/L,
11
Sua
Pan
Potash
Brine
Project
12. Brownfield Brine
• Existing operation produces Soda
Ash (NaCO3) and Salt (NaCl) from
the natural brine
• Brine projects have some of the
lowest operating and capital costs
in the world
• Potential plant would function as
additional circuit on existing
operation
• Leverages existing infrastructure
reducing potential capital
expenditure
• Advancing to definitive agreement
12
14. Tilemsi Phosphate
• 50 million tonnes (Mt) inferred
resource on 26 km² drilled
surface
• High natural grade 24.3% P₂O₅
• Significant upside potential,
project covers 1,206 km² (3
licenses)
• Strategic source of reactive &
soluble phosphate for direct
application, low cost fertilizer
as an NPK component
14
Segou
Pilot
Plant
15. A
Growing
Resource
15
TILEMSI
PHOSPHATE
PROJECT
INITIAL
INFERRED
RESOURCE
50
million
tonnes
AVERAGE
PHOSPHATE
GRADE
24.3%
P₂O₅
CONCENTRATE
GRADE
25-‐38%
P₂O₅
CONCENTRATE
QUALITY
Low
levels
of
contaminants
(ie.
cadmium)
BENEFICIATION
Easy
separaVon
and
treatment
DEPOSIT
DEPTH
Near
surface
Open
pifable
resource
With
a
high
natural
P₂O₅
grade
and
significant
exploraVon
upside,
the
Tilemsi
deposit
is
developing
into
a
world-‐class
phosphate
resource.
Tilemsi
Valley
16. Phosphate
Rock
Characterisa-on
16
Test
Results
Impact
BENEFICIATION
Screening
at
850
microns
to
achieve
P2O5
grades
of
36.8%
Via
simple
screening
process,
the
product
can
easily
beneficiated
to
up
to
36.8%
P₂O₅
SOLUBILITY
71.1%
soluble
P2O5
in
citric
acid
62.5%
soluble
P2O5
in
formic
acid
The
rock
solubility
shows
that
it
is
able
to
compete
with
other
chemical
ferVlizers,
as
ferVlizers’
effecVveness
is
based
on
immediate
availability
of
the
nutrients
GRANULATION
Successfully
produced
granules
sized
1-‐4mm
The
product
can
easily
be
granulated,
allowing
the
product
to
withstand
transportaVon
and
be
used
as
a
component
of
NPK
blended
ferVlizer
Characteriza-on
tests
indicate:
Tilemsi
natural
phosphate
(TNP)
meets
or
exceeds
market
specificaVons
for
beneficiaVon,
solubility
and
granulaVon.
TNP
can
be
used
as
either
as
very
low
cost
phosphate
component
for
blended
NPK
ferVlizer
or
as
a
direct
applicaVon
ferVlizer.
17. Explora-on
Program
17
5 km
• Phases
1
+
2
completed
• Oct
2013:
GQ
explora-on
program
to
resume
Map
of
Tilemsi
Phosphate
Project
showing
our
concessions
on
remote
sensing
and
drilling
program
(completed
and
planned)
589
sq.km
417
sq.km
200
sq.km
18. PEA Highlights (1/2)
18
Project
Economics
Value
Project
Net
Present
Value
US$635
million
Discount
Rate
10%
Project
Internal
Rate
of
Return
33%
Equity
Holder
IRR
(40%
Equity/60%
Debt)
42%
Payback
Period
3.7
Years
CEO
Jed
Richardson
discussing
life
in
Gao
with
Tuareg
merchant
Project has powerful potential social
impacts alongside obvious economic
benefits
• Directly addresses soil poverty
issues in Sahel soils
– Cotton production has fallen
50%/ha planted in last 10
years
• Increased crop yields reduce food
security concerns in West Africa
• Provides new export product for
gold dependent Malian economy
• Brings industrial development to
Mali’s troubled north
– Necessary step in ensuring a
lasting peace in the region
19. PEA Highlights (2/2)
19
Project
Parameters
Value
Life
of
Mine
based
on
the
Inferred
Mineral
Resource
esVmate
20
years
Maximum
Rock
Mined
(at
full
capacity)
1
M
tonnes/year
Pre-‐OperaVonal
Cost
US$13
M
IniVal
Capital
Cost
US$
143
M
OPEX
Phosphate
Rock
@36%
P₂O₅
(powder
average
ex
plant)
US$
59
per
tonne
OPEX
Hyper
Phosphate
@36%
P₂O₅
(granulated
avg
ex
plant)
US$
95
per
tonne
FerVlizer
Products
Supplied
at
Full
Capacity
1.18
M
tonnes/year
Sales
Mix:
NPK
/
Direct
ApplicaVon
78%
/
22%
Assump-ons
Value
Product
Price
Discount
to
imported
phosphate
cost
in
Malii
20%
Average
transport
cost
raVo
per
tonne
per
km
US$
0.082
Delivered
Price
of
Diesel
for
Energy
ProducVon
US$1.10/litre
Equity
to
Government
on
Mining
20%
RoyalVes
on
Mine
ProducVon
3%
ConVngency
in
IniVal
Capital
Cost
(12%)
US$
14
M
PoliVcal
Risk
Insurance
Premium
(@
12%)
incl.
in
CAPEX
US$
11
M
Interest
Rate
per
annum
(LIBOR
+
Premium)
7.8%
21. Agronomy
• Great Quest has developed a low cost
phosphate fertilizer alternative for the West
African Market
• We have completed initial field agronomic
testing
– Conducted with IER (Institute of Rural
Economics), administered by Dr. Lamine Traore
– 11 Test plots in major agricultural zones of Mali
– Cotton, rice, corn, millet, sorghum, ground nut,
cow pea
– Currently running first season of multi-stage test
program
– 1st Quantitative results December 2013
• Replicate trials in neighbouring West African
markets
21
Granulated
Tilemsi
Phosphate
–
35%
high
grade,
27%
medium
grade
22. Agronomy
• Extraordinary Results
Corn from the Sikasso Region
Popular crop in a significant
growing region, powerful yield
response.
22
Phosphate
type
Quan-ty
(Kg/ha)
N
(%)
P
(%)
K
(%)
Yield
(kg/ha)
Diammonium
Chemical
100
15
15
15
2,156
GQ
35%
Granulated
100
11
18
2
3,858
Tilemsi
Powder
300
-‐
24
-‐
2,597
Phosphate
type
Quan-ty
(Kg/ha)
N
(%)
P
(%)
K
(%)
Yield
(kg/ha)
Diammonium
Chemical
100
15
15
15
1,751
GQ
35%
Granulated
100
11
18
2
2,192
Tilemsi
Powder
300
-‐
24
-‐
1,728
Phosphate
type
Quan-ty
(Kg/ha)
N
(%)
P
(%)
K
(%)
Yield
(kg/ha)
Diammonium
Chemical
65
18
46
-‐
904
GQ
27%
Granule
+
M4
100
-‐
27
-‐
1013
Tilemsi
Powder
300
-‐
24
-‐
794
Non irrigated Rice from Bamako
Region
Challenging crop given variable
water availability, benefiting from
whole nutrient nature of GQ product
Peanuts from Kita Region
Medium grade product was tested
with solubility aids, an ultra low cost
option for subsistence crops
23. Small Scale Production
• Markala Production Facility
– 40,000 tonnes of product annually
– Proposed commissioning late 2014
– Expected cost $15 million
• Market Building Step
– For manufacture and sale of product for Malian
market
– Will also provide material for commercial testing
by future large consumers
– Will be used to establish product pricing and off
take agreements for larger planned facility
• Will continue to be used to test and develop
new products once large facility is built
23
Birkenmayer
Granulator
–
Johannesburg,
South
Africa
24. Full Commercial Phosphate Facility
• Located in Gao / Bourem
• Construction 2016
• Initial capital expenditure $143 million
• Construction employment
– Potentially 300 direct and indirect new jobs
during plant construction
• Operation employment
– 200+ Full time jobs in the plant, plus drivers,
miners and support staff
– Mine life 50+ years with potential to grow
with more exploration
• 1 million tonnes of annual production
• Consumption in Mali and export through
out West Africa
24
Trucks
in
Gao,
moving
good
to
and
from
Bamako,
Algieria
and
Niger
25. Our
People
25
Interna-onal
Board
of
Directors
John
A.
Clarke
–
Chairman
Former
CEO
of
Nevsun
Resources
and
ExecuVve
Director
of
AshanV
Goldfields
Victor
Jones
–
Director
30
years
of
experience
in
senior
execuVve
and
board
posiVons
in
public
mineral
exploraVon
and
technology
companies
Ehud
Levy
–
Director
Phosphate
manufacturing
industry
consultant
with
a
30-‐year
career
with
Bateman
Engineering
and
Rotem
Gordon
Peeling
–
Director
Former
President
of
Mining
AssociaVon
of
Canada
(MAC)
with
30
years
of
mining
experience
in
the
public
and
private
sectors
David
Shaw
–
Director
Worked
as
Senior
Mining
Analyst
at
Yorkton
SecuriVes;
iniVated
and
developed
Resource
Research
Group
at
Charlton
SecuriVes
Mali
Board
of
Directors
Abdoulaye
Pona-‐
Director
President
Mali
Chamber
of
Mines,
Founding
director
Mali
Mining
House
SA
Mama
Tapo-‐
Director
Managing
Director
Societe
InternaVonale
de
Services
et
de
representaVon.
Former
Manager
AshanV
Goldfields
26. Our Team
26
Interna-onal
Board
of
Directors
Jed
Richardson
–
President
and
CEO
Former
VP
Corporate
Development
at
Verde
Potash
and
InsVtuVonal
Equity
Research
Analyst
at
Cormark
SecuriVes.
Mohammed
Bouhsane
-‐
COO
Former
Project
Engineer
in
the
Moroccan
mining
and
metallurgy
industries
working
for
the
ONA
Group
and
OCP.
Jayram
Hosanee
-‐
Chief
Financial
Officer
Former
CFO
at
Mineral
Hill
and
Golden
Dawn
Minerals.
Mr
Hosanee
holds
a
CGA.
Thomas
Guillot
–
VP
Corp.
Development
Former
CFO
of
NewGen
Asset
Management
investment
fund,
and
Management
Consultant,
Ministère
de
l’Enfant
et
la
Famille,
Mali.
Marie-‐France
Dikizeyeko
–
Mali
Manager
Former
Senior
ExploraVon
Geologist
at
Randgold
Mali,
Geological
consultant
for
Nevsun
and
AdministraVve
Manager
for
Iamgold
Mali.
27.
27
Great Quest Metals Ltd
TSX-V: GQ
Suite 303, 95 King Street East, Toronto, ON M5C 1G4
+1 416 849 9203
WWW.GREATQUEST.COM
CEO Jed Richardson
Tel (CDN) +1 416.566.8134
Tel (SA) +27 (72) 7206539
Tel (Mali) +223 90 08 25 09
Email jed@greatquest.com