Investor presentation – June 2014
“As iron ore was the boom commodity over the past 10 years, we highlight
potash as the commodity for the next decade.”
– Goldman Sachs
Global Resources Corporation
Disclaimer
This presentation has been prepared as a summary only, and does not contain all information about Global Resources Corporation Limited’s
(“Global”) assets and liabilities, financial position and performance, profits and losses, prospects, and the rights and liabilities attaching to
Global’s securities. The securities issued by Global are considered speculative and there is no guarantee that they will make a return on the
capital invested, that dividends will be paid on the shares or that there will be an increase in the value of the shares in the future.
Global does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any
recipient of this report. Recipients of this report should carefully consider whether the securities issued by Global are an appropriate investment
for them in light of their personal circumstances, including their financial and taxation position.
Forward Looking Statements
Some of the statements contained in this report are forward looking statements. Forward looking statements include but are not limited to,
statements concerning estimates of potash tonnages, expected costs, statements relating to the continued advancement of Global’s projects and
other statements which are not historical facts. When used in this report, and on other published information of Global, the words such as
“aim”, “could”, “estimate”, “expect”, “intend”, “may”, “potential”, “should” and similar expressions are forward-looking statements.
Although Global believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk and
uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors could
cause actual results to differ from these forward looking statements include the potential that Global’s projects may experience technical,
geological, metallurgical and mechanical problems, changes in product prices and other risks not anticipated by Global.
Competent Person’s Statement
The information in this investor presentation that relates to Exploration Results is based on information reviewed by Mr Laurie Mann, who is a
fellow of AusIMM. Mr Mann is a consultant to Global Resources Corporation Limited and was the Registered Manager for Shark Bay Salt Joint
Venture, a solar salt operation in Western Australia. Mr Mann has in excess of 5 years’ experience which is relevant to the types of deposits
under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the
“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Mann consents to the inclusion in this
presentation of the matters based on this information in the form and context in which it appears.
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Global Resources Corporation
Company overview
 Strategic focus on exploration for and
development of high value sulphate of potash
(SOP) deposits
 Key asset is the Great Sandy Desert Project
in Western Australia

Adjacent to the discovery of a potentially
world class potash province by Reward
Minerals (ASX: RWD)

Maiden drilling program is on track for
the second half of 2014

Located in one of the world’s premier
mining jurisdictions

Accessed via good condition roads and
90km south of the coast

Brine hosted deposits have attractive
cost structures and typically lie in the
first quartile of industry cost curves

Very hot and arid climate is ideal for low
cost and environmentally friendly solar
evaporation techniques
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Global Resources Corporation
Investment highlights
The Great Sandy Desert Project – highly strategic land position
 Potential to be a globally significant sulphate of potash (SOP) province
 2,570km2 in the Pilbara region of Western Australia, one of the world’s premier mining jurisdictions
 Covers approximately half of the Waukarlycarly Embayment, a major regional depositional sink for inflowing brines
 Surface sampling on adjoining tenements has confirmed economically significant levels potassium and sulphate in the brines
 Metallurgical test work carried out on brines in the region has indicated that the chemistry is suitable to produce SOP
 Very hot and arid environment is ideal for low cost solar evaporation techniques
 Close to sealed roads and other infrastructure servicing nearby mines
Sulphate of potash (SOP) – attractive market fundamentals
 SOP price has increased from US$200/t in 2003 to over US$600/t in 2013 and market fundamentals remain strong
 Strong demand for fertiliser is driven by growing populations, rising living standards and decreasing arable land
 SOP is a premium form of potash and is essential for use on high value crops such as vegetables, fruit and tobacco
 SOP is a geologically scarce commodity and global supply is highly concentrated
Business development – upside through a range of initiatives
 Ongoing assessment of other low cost entry projects with large scale potential
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Global Resources Corporation
Corporate snapshot
Share capital
Directors and management
Share price
$0.07/share
Ordinary shares*
73.6m
In-the-money options ($0.05/share)
14.2m
Diluted market capitalisation
$5.7m
12 month price range
$0.04 – $0.08/share
Balance sheet
Cash*
$1.7m
Debt
$0.0m
Top shareholders
Tim Lyons
11.9%
David Argyle
9.6%
Mark Savich
5.2%
Walloon Securities
5.1%
Top 20
* Figures are post the placement of 16.7m shares at $0.06/share
55.1%
Stephen Everett, Non-Executive Chairman
Chemical engineer with more than 35 years of management and board
experience in the international resources industry. Has held senior
executive and chairman positions of various private and ASX listed
companies. Currently the chairman of MetroCoal Ltd.
Mark Savich, Executive Director
Chartered financial analyst with over 10 years of experience dealing
with the technical and corporate aspects of resource companies, from
explorers to producers. Skilled in project identification, technical and
economical evaluation and corporate development.
Alec Pismiris, Non-Executive Director and Company Secretary
Director of Capital Investment Partners. Has over 25 years experience
as director and company secretary for various ASX listed companies.
Currently a director of Cardinal Resources Ltd, Mount Magnet South NL,
Aguia Resources Ltd and Papillon Resources Ltd.
Tom Lyons, General Manager – Exploration & Development
Geologist with broad experience in a range of commodities including
industrial minerals, precious and base metals and bulks. Has previously
worked throughout a number jurisdictions, including the East Pilbara
region of Western Australia.
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The Potash Industry
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The food security story
Rising food consumption is a long term trend
 United Nations forecasts approximately 71 million new mouths to feed each year
 While at the same time arable land is shrinking around the world
 Emerging markets will need to increase fertiliser use in order to improve agricultural yields
 For many countries outside the OECD, particularly China and India, food security is still a key concern
 Potash is a late cycle commodity and should experience demand growth even as the industrialisation
phase in developing countries winds down
“It now appears they [BHP Billiton] are picking a
megatrend (food consumption – fertiliser) and
choosing the most attractive commodity within this (in
this case, potassium over nitrogen and phosphate)”
– Macquarie Bank
Source: Goldman Sachs
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Potash market
SOP is highly strategic commodity
 Global potash production is 64Mt per annum, including 55Mt of muriate of potash (MOP) and 6Mt of sulphate of potash (SOP)
 The SOP market is worth circa US$3.5 billion per annum
 SOP is far more strategic and geologically scarce than MOP
 More than 50% of the world’s SOP is produced from upgrading MOP, via the Mannheim process or sulphate salts reaction
Total potash market
(~64 million tonnes per annum)
Total SOP market
(~6 million tonnes per annum)
MOP
Mannheim
SOP
Source: CRU
SOPM
NOP
Primary
SOP
Reacted
Salts
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Potash market
A highly concentrated supply side
 Potash supply is highly concentrated, both geographically and at a corporate level
 The major deposits being mined – in Russia, Belarus and Canada – all produce MOP
 For the past decade, circa 65% of the world’s potash production has been marketed by an oligopoly:
•
Canpotex representing PotashCorp, Mosaic and Agrium
•
Belarus Potash Company (BPC) representing Uralkali and Belaruskali
 In July 2013, Uralkali withdrew from BPC
SOP production (million tonnes per annum)
MOP installed capacity (million tonnes per annum)
Source: Compass Minerals, Company websites
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SOP market
Demand is driven by high value crops
 SOP (K2SO4) and is 17.5% sulphur and contains no chloride, compared to MOP (KCl) which contains 46% chloride
 A premium form of potash that is used on high value crops such as vegetables, fruit and tree nuts
 Essential for chloride-sensitive crops and advantageous in saline and arid soils
 SOP improves crop yield, quality and shelf life, i.e. generally if it needs to look good and taste good it needs SOP
Chloride hating
crops
tobacco
tea
grapes
almonds
potatoes
strawberries
oranges
coffee
Chloride loving
crops
sugar beet
coconut
date palm
cereals
oil crops
sugar cane
rubber
cotton
Orange without SOP
Orange with SOP
Source: IC Potash
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SOP market
Brine producers sit at the bottom of the cost curve
 There are only three primary producers of SOP – SDIC Luobupo in China, Compass Minerals in the USA and SQM in Chile
 All 3 producers are exploiting brine deposits via low cost pumping and solar evaporation techniques
 More than 50% of global SOP production, or 4Mt per annum, comes from high cost secondary sources
 The Mannheim process is energy intensive and uses MOP as the primary input, therefore providing a price floor for SOP
 The hydrochloric acid by-product from the process is becoming increasing costly and environmentally hazardous to dispose of
SOP industry operating cost curve
Global brine operations – MOP and SOP
Source: EPM Mining Ventures, CRU, Company websites, Parthenon Analysis
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SOP market
Prices remain strong post-BPC break up
 In July 2013 Uralkali withdrew from BPC and caused a price shock in MOP
 Uralkali is the world’s lowest cost producer with the most unused capacity and
publicly stated that in future it would prioritise volume over price
 SOP prices have remained very stable and since 2011 there has been a
widening in the price differential between MOP and SOP
 Compass Minerals Q4 2013 financial results quoted an average selling price
of US$626/t FOB (short tons)
 Compass Minerals specialty fertiliser segment is characterised by solid
earnings
Compass Minerals – Fertiliser Segment Q4 2013 Results
Source: Compass Minerals
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SOP market
New sources of SOP are extremely capital intensive
 More than 4Mt per annum of high cost
secondary production to be displaced
 Most new projects are extremely capital
intensive, i.e. both IC Potash and Potash Ridge
have a CAPEX requirement of over US$1 billion
Potential SOP production (million tonnes per annum)
 Production expansions which are planned by
Chinese companies and Compass Minerals are
likely to be challenging
 Greenfields developments include:

IC Potash – at project financing stage on
the Ochoa hard-rock deposit (polyhalite)
in New Mexico, USA

EPM Mining Ventures – at feasibility
stage on the Sevier Lake brine deposit in
Utah, USA

Potash Ridge – at feasibility stage on the
Blawn Mountain alunite deposit in Utah,
USA

Source: Compass Minerals, Company websites
Reward Minerals – at scoping level stage
on the Lake Disappointment deposit in
Australia
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The Great Sandy Desert Project
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Great Sandy Desert Project
Overview
A compelling target:
 Applicant to five Exploration Licences covering
2,570km2 in the East Pilbara
 Situated in a new globally significant SOP
province
 Well located with respect to key Asian markets
 Arid environment is well suited to low cost
solar evaporation
Close to infrastructure:
 Readily accessible via existing well maintained
access roads
 95km south of the Great Northern Highway
 300km east of Port Hedland
 25km from the Telfer gas pipeline
Aiming to fast track exploration:
 Desktop studies and planning underway
 Maiden drilling program is on track for the
second half of 2014
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Great Sandy Desert Project
Regional brine flows
 Very hot and arid environment combined with saline water flow
has resulted in the widespread presence of salt lakes
 Many salt lakes host known occurrences of potash-bearing
brines and some host existing Mineral Resources*:
Lake Disappointment: Indicated Resource of 24.4Mt of SOP
Karly: Exploration Target of between 384 – 960Mt of SOP
 These resources and targets demonstrate that this is potentially
a world class SOP province which needs further exploration
 Brines may exist to a much larger extent within ancient buried
lake systems (palaeovalleys) and consolidated sedimentary
aquifers
 Based on reports by Geoscience Australia (GA), the
palaeovalleys are interpreted to flow north-west throughout the
region
 The Waukarlycarly Embayment is believed to be a large
regional depositional sink at the end of the flow
 Surface sampling undertaken in 2013 (on adjoining tenements
owned by Reward Minerals) has confirmed significant levels of
potassium with brine chemistry suggested suitable for SOP
* Projects are owned by Reward Minerals
Source: Geoscience Australia
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Great Sandy Desert Project
Seismic data demonstrates scale of embayment
 Waukarlcarly Embayment is a large graben feature composed of Canning Basin sediments up to 3.5km deep
 Embayment is possibly acting as a major depositional sink for groundwater flow from the Canning Palaeoriver
 Permian sandstone units throughout the Embayment are a potential aquifer/s for brine
Source: Geoscience Australia
Note: Depth to Proterozoic basement map
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Great Sandy Desert Project
Airborne electromagnetic data suggests brine exists
 Airborne electromagnetic (AEM) survey
has indicated that the Waukarlycarly
Embayment is highly prospective for
potash bearing brines
 Government funded $2.7 million AEM
survey conducted in 2008
 Survey covered ~50,000km² in the
Paterson Province
 Conductive unit extends throughout
the Embayment and is likely to
correlate with saline groundwater
 Sampling of near surface brines at Lake
Waukarlycarly returned an average
potassium grade of 10.02kg SOP/m³ of
brine*
 Historical drilling by BHP and others
near Lake Waukarlycarly intersected
considerable saline groundwater flows
– never assessed for water quality
* Average has been calculated from the brine analysis results
published by Reward Minerals on 10 December 2013 in the ASX
Release titled: “HIGHLY ENCOURAGING POTASH BRINE ANALYSES”
Source: Geoscience Australia
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Great Sandy Desert Project
Geological model
 Global’s tenements cover a 50km by 50km area of the Waukarlycarly Embayment
 Permian sediments of the Poole Sandstone and Paterson Formation represent the targeted geological horizon
 The underlying Grant Group is interpreted to exist at depths of between 500 to 600m
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Great Sandy Desert Project
Planned exploration program
 Company has been very active in holding preliminary meetings with various consulting and service groups
 An independent review and Desktop Study will be undertaken to understand the regional hydrogeological environment
 A maiden drilling program is planned for the second half of 2014
 The program will be designed to test:

Quality and extent of groundwater flows

Test aquifer qualities (physical properties of the host sediments)
 The aim is to be positioned for a major drilling program to commence at the start of the 2015 dry season (April – November)
2014
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Desktop Study, Planning and Approvals
Site Preparation and Drilling Program
Assays and Review
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Great Sandy Desert Project
Conceptual development plan
 The region benefits from a very hot and dry environment with excellent evaporation conditions
 Metallurgical test work carried out on brines throughout the region has indicated favourable brine chemistry is likely to exist
 Low cost solar evaporation techniques should result in very competitive capital intensity and operating costs
 There are a number of brine operations around the world, including Rio Tinto’s three Salt operations (Lake Macleod, Dampier and
Port Hedland) and Mitsui & Co.’s two Salt operations (Onslow and Shark Bay), in Western Australia
Conventional processing route: pumping  evaporation  harvesting  milling & SOP conversion
Source: Mitsui & Co.
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Global Resources Corporation
Summary
 Strategic focus on exploration and
development of high value
sulphate of potash (SOP) deposits

Strong market fundamentals

Highly concentrated supply side

Brine deposits typically lie at the
bottom of industry cost curves
 Key focus is the Great Sandy
Desert Project in Western
Australia

Aiming to be part of an
emerging and globally
significant potash province

Close to the highway and gas
pipeline

Conceptual target is extremely
large
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