AGORACOM Small-cap Investor Relations Blog

BY BEING A DOMESTIC FERTILIZER PRODUCER, DUSOLO IS ABLE TO OFFER A PREMIUM PRODUCT AT A SIGNIFICANTLY LOWER COST

 

• Our Direct Application Natural Fertilizer (DANF) product is in demand in the region

• Flagship asset, the Bomfim Project, is 100% owned and located in one of the world’s fastest growing agrarian regions

• Bomfim Processing Plant operating at full capacity

• On track to produce at least ~100,000 tonnes of DANF in 2015

• Sales contracts in place for 2015 planting season: 81,100 tonnes for ~C$8.5 million

• Starting to generate revenue

MANY NEAR TERM CATALYSTS EXPECTED

• Entering into additional DANF product sales contracts

• Doubling capacity at our processing facility to 160,000 tonnes per year

• Updating the National Instrument 43-101 Resource Estimate to include results from the 2015 drill campaign – Recent drill results confirm presence of additional high-grade phosphate mineralization beyond areas identified in initial resource estimate
• Third Party Economic Evaluation of Operations Planned for 2015
• Strong Financial Backing

Company entered into an agreement with Mineração Batalha e Participações Ltda. to acquire the São Roque Phosphate Project in southeast Brazil.

The Project’s highlights include:

• Located within the agribusiness region of Minas Gerais and São Paulo states, with many coffee, orange and sugar-cane (ethanol) plantations in the surrounding area.

• At surface, high-grade phosphate mineralization has been identified with multiple grab samples from outcrops confirming >20% P₂O₅.

• Geophysics anomalies very well defined and confirmed by surface sampling.

• Close proximity to infrastructure, including roads, rail, water and power, and existing fertilizer producers. City of Piumhi is 40 km from the Project.

• 70% interest earned through commitment to invest in exploration and project development. No direct payment to JV Partner.

BRAZIL’S DOMESTIC FERTILIZER SUPPLY DOES NOT MEET CURRENT DEMANDS

• World’s largest exporter of sugar, coffee and orange juice and the 2^nd largest in soybean exports

• Brazil imports more than 50% of phosphate fertilizers used overseas

• Significant transportation and logistic-related costs are added to imported fertilizers

• DuSolo’s is increasing the supply of domestically produced fertilizers

• Helping the country achieve agricultural self-sufficiency

FLAGSHIP ASSET LOCATED IN ONE OF THE WORLD’S LARGEST AGRICULTURAL REGIONS

• The Cerrado region is home to one of the largest arable landmasses in the world

• Majority of future increases in global food production is expected to come from this region

• The tropical rains in the Cerrado wash away nutrients, leaving the soil poor for farming and needing to be fertilized frequently

• Cerrado is land locked, therefore making fertilizer imports very expensive

STRONG DEMAND FOR DANF EXISTS IN THE REGION

Within a 500 km radius of DuSolo’s processing facility:

• 1.2 million tonnes of phosrock is being consumed every year

• 585 farms and agricultural centres exist

• DANF consumption is growing at a compound annual growth rate of 6%

• No domestic production