Crystal Peak Minerals

Primary ticker: TSXV:CPM
Stage of development: Development
Primary minerals: Potassium Sulfate
Project to promote: Sevier Playa Project

Live financials

Crystal Peak Minerals Inc. is a pre-revenue, development-stage sulfate of potash (SOP) company that controls over 124,000 acres on the Sevier Playa in Millard County, Utah, USA. Publicly traded (TSXV: CPM; OTCQX: CPMMF), we intend to produce SOP and other minerals using an environmentally friendly solar evaporation process. With permitting almost completed, we expect to begin construction in Q4 2019 and production in 2023. Our feasibility study reflects average annual SOP production over the 30-year life of the project of about 328,000 tons, with an NPV of $730 million and an IRR of 21%.

Management Profile

John Mansanti, President & CEO

Mr. Mansanti has more than 35 years of experience leading teams with Intrepid Potash, Barrick Gold, Placer Dome, Newmont Mining, and Freeport McMoRan. He is also a past president and an active member of the Society for Mining, Metallurgy, and Exploration.

Blake Measom, CFO

Mr. Measom has 30 years of experience, having previously served as Chief Financial Officer for Barrick Gold of North America, Inc. and as Vice President of Finance and Chief Financial Officer for Kennecott Energy Company, a subsidiary of the Rio Tinto Group. Previously, he was a Senior Manager with PricewaterhouseCoopers.

What is your rationale for attending 121 Mining Investment?

With a compelling feasibility study and with permitting nearly completed, we are seeking investors to provide project financing, both debt and equity. In addition, we are seeking an interim financing component to allow us to finalize the permitting process, perform pre-construction engineering, and put together project financing. We have recently engaged an advisor for project financing on the debt side to help us through that process.

What recent news would you like to highlight to investors attending?

Our draft environmental impact statement (DEIS) was published November 30, 2018. The public comment period associated with the DEIS was concluded in mid-January 2019 with only 9 comment letters received, 5 of which are strong advocates of the project. The feasibility study reflects a low-cost brine SOP project with life-of-mine (30 years) reserves and strong economic returns, located in a very favorable mining jurisdiction in close proximity to the largest U.S. market for SOP. We are currently discussing terms with several potential product offtake partners, with draft term sheets being exchanged.

What are your key goals for the next 3, 6 and 12 months?

3 Months:

Obtain interim financing, progress pre-construction engineering, complete the final EIS, and negotiate offtake agreements.

6 Months:

Complete the EIS process and receive the related record of decision (ROD), commit project financing, complete pre-construction engineering, and finalize and sign offtake agreements.

12 Months:

Close project financing, receive notice to proceed, award construction contracts, and begin construction.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

We require additional financing partners to allow us to complete pre-construction engineering work and put the project finance package in place. We are looking for partners who recognize the high quality of the asset underlying this project and the potential for very favorable investment returns.

What do you think makes your company such a compelling investment?

We are a new, low cost U.S. based SOP company, with a project strategically located near the largest and highest margin U.S. market (California/West Coast). The project has an estimated NPV of $730 million and an estimated IRR of 21%; however, our public shares are trading at a significant discount to the value of the project and its underlying asset. Using EBITDA multiples typically applied to producing potash companies, it is evident that Crystal Peak is substantially under-valued in the public markets and is poised to provide excellent returns for early investors.