Brazil Potash (GRO) Emerging Growth Conference 88 summary

Project overview and market context

• Developing Brazil's largest potash project to reduce the country's 95% reliance on imports and supply sustainable fertilizer locally.

• Potash is a critical, irreplaceable nutrient for food production, with Brazil as the world's top consumer and the U.S. as the third, both heavily dependent on imports.

• Only three main global suppliers exist: Canada, Russia, and Belarus, making the market highly concentrated.

• The project is fully permitted for construction, aiming for 2.4 million tons annual output, covering nearly 20% of Brazil's needs for at least 23 years.

• The basin's size suggests potential for several hundred years of operation.

Financials, partnerships, and milestones

• Expected to generate $1 billion in free cash annually once operational, with a $2.5 billion construction cost and $1.8 billion anticipated in debt financing.

• Franco-Nevada plans a $150 million investment; MOU with Fictor for a $200 million power line reduces capital needs.

• Additional cost reductions expected by replicating third-party funding for infrastructure like the steam plant and port.

• Raised $28 million this year and established a $75 million equity line, providing runway for key milestones.

• 91% of production is pre-sold under binding take-or-pay contracts, ensuring revenue certainty for lenders.

Leadership and operational progress

• Strengthened board with industry veterans, including the founding chairman of Nutrien and leaders from Viterra and IFC.

• Cleared the project site and began early works construction, including community training initiatives.

• Anticipates government exemption from import duties, potentially saving another $100 million.

• Multiple companies under NDA are considering significant asset-level investments.