the chinese agricultural revolution and building the new potash powerhouse

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Objective Capital's Industrial Metals, Minerals & Investment Summit 2010 London Chamber of Commerce and Industry 3 November 2010 Speaker: Richard Poulden, Sirius Minerals


  • 1. INDUSTRIAL METALS, MINERALS AND MINEABLE ENERGY INVESTMENT SUMMIT 2010 LONDON CHAMBER OF COMMERCE & INDUSTRY WEDNESDAY, 30 NOV 2010 The Chinese agricultural revolution and building the new potash powerhouse Richard Poulden Deputy Chairman, Sirius Minerals

2. BUILDING THE NEW POTASH POWERHOUSE Objective Capital Investment Summit 3 November 2010 SIRIUS MINERALS PLC 3. Important Notice This document is produced for information only and not in connection with any specific or proposed offer (the Offer) of securities in Sirius Exploration Plc (the Company). The information and opinions contained in this presentation, all of which are in draft form, are provided as at the date hereof and are subject to amendment without notice) completeness This at investment professionals defined Article 5) of the Important Notice (notice), further verification and completeness. document is directed as in 19(Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 and at organizations of a kind described in and to whom Article 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (High Net Worth Companies, Unincorporated Associations, etc.) applies (all such persons together being referred to as "relevant persons"). This document must not be acted on, or relied on by, or passed on to (directly or indirectly) persons who are not relevant persons. Any investment or investment activity to which this document relates is available only to relevant persons and will be engaged in only with relevant persons (save as set out below). This document is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on directly indirectly to an published hole in for an purpose document is being provided to redistributed on, directly or indirectly, any other person or published in whole or part any purpose. This document provided recipients on the basis that they keep confidential any information contained herein or otherwise made available, whether orally or in writing, in connection with the Company. This document does not constitute an offer to buy or to subscribe for, or the solicitation of an offer to buy or to subscribe for securities in the Company in any jurisdiction in which such an offer or solicitation is unlawful and is not for distribution in or into any of such jurisdictions. To the extent this document is received or used in jurisdictions outside the UK, any such recipient or user should inform themselves about and observe any applicable legal requirements. Neither this document nor any part of this document should be copied or distributed by recipients where such distribution may lead to a breach of any law or regulatory requirement. No securities in the Company have been or are expected to be registered under the US Securities Act, or under the securities laws of any other jurisdiction. The Company's shares are traded in the United States as American Depositary Receipts and comply with all current legislation relevant to such trading. This document does not constitute or form any part of any offer or invitation or other solicitation or recommendation to purchase any securities in the Company and does not constitute or form part of a prospectus. No reliance may be placed for any purpose whatsoever on the information, representation or opinions. Any decision to purchase or subscribe for securities in the Company in connection with any offer should be made solely on the basis of the information contained in a prospectus on the Company or such other subscription document which may be published in due course and any acquisition of securities in the Company should be made on the basis of the information contained in such document. Neither the issue of this document nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transaction and the right is reserved to terminate any discussions or negotiations with any prospective investors. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. In furnishing this document, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this document or to correct any inaccuracies in, or omissions from, this document which may become apparent. This document should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. Each party to whom this document is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumptions and each recipient should satisfy itself in relation to such matters. Information in this document must not be relied upon as having been authorized or approved by the Company. Neither the Company nor any other person makes any guarantee, representation or warranty, express or implied, as to the accuracy, completeness or fairness of the information and opinions contained in this document, the Company any or whatsoever any loss any use of its nor does accept responsibility liability for howsoever arising from this document or contents or otherwise arising in connection therewith. 4. Potash is highly valuable and strategic Sirius is the only globally diversified potash development company and the only potash company quoted in London Multiple projects in OECD countries Committed to becoming a major low cost and low risk producer of potash 2nd value horizon in related environmental technology Experienced development team Investment Overview Globally diversified portfolio of potash projects 5. Board of Directors Comprehensive spread of skills and experience Former Chief Financial Officer and Business Development Director of Fortescue Metals Group during its major growth phase from start-up to multi-billion dollar iron ore producer. Previously Director of Consolidated Rutile, CFO Iluka Resources. Christopher Catlow, Chairman Successful companies in natural resources, healthcare, technology, venture investment. MA Oxford, MBA London/Harvard, merchant banker, Barrister. Richard Poulden, Deputy Chairman Project evaluation for Rio Tinto, Senior Geologist Exploration North America. Experience in copper, lead, zinc, gold, diamonds, iron ore across Russia, Africa, and Europe. Derek Stonley, Director Chairman Z/Yen Group. Seismology, cartography for oil & gas, then financial services. Created global oil industry cartographic standard databases Geodat and Mundocart. Michael Mainelli, Non-Exec Director Photo Photo Photo Photo Intercontinental Hotels Africa and the Middle East. Management buy-in of 25 hotels from Queens Moat Houses plc with Duke Street Capital. Floatation of Top Notch Health Clubs on AIM. Jonathon Harrison, Finance Director Photo 6. Boyd Petrosearch Global geophysics leaders specialising in Potash/Salt exploration Seismic project management and data interpretation experts North Rim Exploration Leading geoscience and engineering group specialising in Potash development Assessment, verification and mine planning capabilities Schlumberger Global drilling expertise, subsurface engineering & project development Technical Partnerships World leading expertise 7. Potash is of critical importance and value Sirius is developing a globally diversified portfolio of potash projects Committed to being a large-scale, low cost, reliable supplier Focused on low risk countries with access to reliable infrastructure Strategy to Create Shareholder Value To become one of the worlds most important potash suppliers 8. Plants require three primary nutrients above all others: Nitrogen (N): promotes protein formation, growth and yield Phosphorus (P): helps root development, photosynthesis, and drought resistance Potassium (K): helps photosynthesis, strengthens cell, increases resistance, and importantly speeds the absorption of N and P NPK fertilizers are vital to the global food supply Potassium has no substitute in plant physiological function Potash has no commercial substitute Potash 101 One of lifes basic building blocks 9. Population Growth More People means More Food Less Land More Food from Less Land Decreasing Soil Quality More fertilisers needed to maintain crop yields = Potash Demand Growth Megatrend: Food Security Complex problem, simple equation, simple answer WORLD WORLD ASIA AFRICA WORLD ASIA AFRICA 1920 1940 1960 1980 2000 2020 2040 0 2000 4000 6000 8000 10000 pop. millions World Population Growth Projection 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 0 0.1 0.2 0.3 0.4 ha/p Arable Land per Person Source: United Nations Source: FAO Statistics Division 2009 10. CHINA INDIA 1981 1985 1989 1993 1997 2001 2005 2009 0 1000 2000 3000 4000 5000 6000 7000 (USD) GNI per Capita Growth in Asia The global diet is changing Increased demand for meat as affluence rises Increased meat production requires increased productivity of animal feed Increased meat demand = Increased potash demand Added Demand Pressure: Protein Demand Making the problem worse, but still a simple solution 0 2 4 6 8 Poultry Pork Beef Common Feed Conversion Ratios Approximate kg Grain Required per kg Meat Source: FAO Statistics Division 1980 1985 1990 1995 2000 2005 2010 2015 2020 0 10 20 30 40 50 60 kg/p Global Meat Consumption Source: World Bank, World Development Indicators 2009 Source: FAO Statistics Division 11. Biofuels have emerged as a potential solution to climate change and energy security Debate c