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Fertoz

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FY2015 Annual Report · Fertoz
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ANNUAL REPORT
fOR ThE yEAR ENdEd 30 jUNE

2O15

Fertoz Ltd (ACN 145 951 622)

Fertoz LImIted ACN 145 951 622  |  ANNuAL report 30 JuNe 2015

CORPORATE DIRECTORY

Directors mr James Chisholm – Non-Executive Chairman 

dr Leslie (Les) Szonyi – Executive Director 
mr Adrian Byass – Non-Executive Director 
mr Stephen Keith – Managing Director 
mr Alex penha – Non-Executive Alternative Director 

Company Secretary mr Julien mcInally 

Registered office and 
principal place of business 

40 Balgowlah St 
Wakerley, Qld 4154 

Share register Computershare Investor Services pty Limited 
Yarra Falls, 452 Johnston St 
Abbotsford VIC 3067 

Auditor Bdo Audit pty Ltd 
Level 10, 
12 Creek Street 
Brisbane QLd 4000 

Canadian Lawyers ontario Lawyers 

peterson Law professional Corporation 
390 Bay Street, Suite 806 
toronto, ontario, Canada, m5H 

Australian Lawyers delphi partners  

Level 23, 307 Queen St 
Brisbane, Qld, 4000

Bankers Commonwealth Bank of Australia Ltd 

Stock exchange listing Fertoz Limited shares are listed on the Australian 

Securities exchange (ASX code: Ftz) 

Website www.fertoz.com

2

CoNteNtS

CONTENTS

Corporate directory 

Chairman's message   

Strategy 

Corporate review   

project review  

Board of directors 

List of tenements 

02 

04 

06

07

08

22 

25

3

 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fertoz LImIted ACN 145 951 622  |  ANNuAL report 30 JuNe 2015

ChAIRmAN’S mESSAgE

dear Fellow Shareholder,

It is my pleasure to present the 2015 Annual report for Fertoz Limited (ASX: Ftz). 

Fertoz  is  a  phosphate  exploration  and  development  company  which  is  developing  the  Wapiti  and  Fernie 
phosphate deposits in Canada, trialling phosphate products developed from those deposits on Canadian 
farms,  exploring  the  dry  ridge  project  in  Idaho  uSA  and  working  with  Australian  business’s  through  the 
FertAg joint venture.  

the Company’s main focus is on commencing commercial production in Canada as soon as possible, servicing 
the local organic farming market as well as conventional farmers looking for alternatives to standard, high 
leaching fertilisers.  Wapiti product is well located and ideally suited to satisfying this growing demand.

the last 12 months has seen the Company confirm the mining method at Wapiti and Fernie through collection 
of approximately 2,200 t of bulk sample, submit a small mine application licence for Wapiti, upgraded part 
of the Wapiti resource to the Indicated category and completed a Wapiti Scoping Study.  In the uSA, the 
Company has been granted exploration approval for the dry ridge project in Idaho. 

to increase shareholder value and leverage, the Company plans to keep capital requirements low by running 
with a contract mining model to start Wapiti, and just produce bulk rock phosphate.  Later development will 
entail bagging operations and blending the rock phosphate with other resources to make additional fertiliser 
products, and also moving to an owner-operator model.

the uSA and Canada are both net importers of phosphate rock and are two of the largest agricultural economies 
in the world. the Company aims to supply direct application phosphate rock with minimal processing to both 
the  lucrative  organic  and  conventional  fertiliser  markets  in  both  countries. the  uSA  is  the  largest  organic 
food market in the world while Canada is the fourth largest.  organic farmers in the uSA and Canada need to 
use natural fertilisers in order to retain their organic certification, which is critical as organic crops command 
significantly higher prices than crops from conventional farms. the Wapiti and Fernie rock phosphates are 
particularly suited to acidic soils, which cover much of Canada and the lower parts of the uSA.

In Australia the Company has formed Fertoz Agriculture pty Ltd (“FertAg”) which is a joint venture (“JV”) 
between  Fertoz  Limited  and  Vast  resources  pty  Ltd.    the  JV  was  established  to  distribute  fused  calcium 
magnesium silicate phosphate products to potential customers in Australia and New zealand, which counter 
the acidic soils found across much of Australia’s key farming regions. 

Given the A$/uS$ exchange rate and the high cost of importing the FertAg product the venture in Australia 
has proven to be more challenging than envisaged. Although now restructured to be cash-neutral, the FertAg 
venture has shown the Company that owning and controlling the resource, as the Company has in Canada 
and the uSA, is critical.

As advised on 31 July 2015, Stephen Keith, a successful and highly experienced Canada-based phosphate 
executive, assumed  the role of managing director (“md”) and Les Szonyi has stepped down as md.  Les 
will focus on progressing the Australian FertAg joint venture.  He will assist Stephen with the handover of our 
North American activities and the many phosphate trials and relationships that have been developed over 
the last two years. 

It has been a challenging time in the junior exploration and development space over the last few months and 
the Board has taken the view that the Canadian operations continue to represent the best opportunity for 
the Company, especially now that a Scoping Study has been completed and farm trials are underway.  early 
results look encouraging and the demand for organic fertilisers and produce continues unabated.  

44

CHAIrmAN’S meSSAGe

thank you for all your support over the last year.  We look forward to updating shareholders in the near future 
about progress in Canada and Australia.

James Chisholm 
Chairman 

5

 
 
 
 
 
Fertoz LImIted ACN 145 951 622  |  ANNuAL report 30 JuNe 2015

STRATEgY

the Company’s key objective is to become a growth-
oriented, cash flow generating agribusiness returning 
dividends  to  shareholders.  In  the  near  term,  the 
Company plans to accomplish this through:

1. 

2. 

3. 

4. 

Focusing on our own assets: building sales, 
production and cash flow from our two projects 
in British Columbia, Canada;

proving up potentially larger assets within our 
portfolio: through exploration at our dry ridge 
project in Idaho, uSA - in the heart of phosphate 
mining in the uSA;

Improving the returns and growth potential of 
our existing FertAg business in Australia; and, 

Considering external growth opportunities: add 
low capital-intensity fertiliser assets that can be 
realistically funded and developed.

our  number  one  priority  is  to  develop  our  Wapiti 
and Fernie projects and this is where our effort will 
be concentrated.

our recent management reshuffle is the first step in 
this strategy. Incoming managing director, Stephen 
Keith, has taken on this role with a clear view towards 
moving  the  British  Columbia  projects  forward.  Bulk 
samples  and  sales  to  potential  consumers  have 
already  commenced  and  the  Company  hopes  to 
receive  the  required  permits  to  mine  its  Wapiti 
project – a project that has a positive scoping study 
with an Irr of >80%. Stephen has spent a lot of time 

working with potential off-take customers and other 
fertiliser companies looking for a long-term, reliable 
source  of  organic  rock  phosphate.    As  well,  he  has 
re-worked  the  production  concept  outlined  in  the 
Scoping  Study  to  allow  the  Company  to  produce 
organic rock phosphate with less capital expenditure 
in the early period, ensuring we can cash-flow fund 
future development.

In addition to this, with the approval of the exploration 
permits in Idaho, Stephen has been looking at ways in 
which to start exploring and proving up the potential 
of  the  dry  ridge  project,  in  the  heart  of  the  Idaho 
phosphate region.

Fertoz’s  outgoing  managing  director  Les  Szonyi  is 
assisting Stephen with the handover and at the same 
time,  working  on  growing  the  FertAg  business  in 
Australia and New zealand.  

over the next year, the Company plans to progress 
the Wapiti and Fernie projects to regular production 
and secure off-take contracts for rock phosphate in 
Canada and the uSA, expand our resource base and 
develop additional fertiliser products.  ultimately, the 
Board is looking to pay dividends from multiple high 
value  operating  fertiliser  assets,  primarily  in  North 
America.

Competent Persons Statement

the technical information in this report that relates to exploration targets, exploration results, mineral 
resources or ore reserves is based on information compiled by mr Jo Shearer, a Competent person, 
who is a member of the Association of professional engineers and Geoscientists of British Columbia, a 
‘recognised professional organisation’ (rpo) included in a list that is posted on the ASX website from 
time  to  time.    mr  Shearer  is  the  Chief  operating  officer  Canada  for  Fertoz  Limited.    mr  Shearer  has 
sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration 
and to the activity being undertaken 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 
Shearer consents to the inclusion in the report of the matters based on his information in the form and 
context in which it appears.

6

CorporAte reVIeW

CORPORATE REVIEW

safety

there  were  no  lost  time  injuries  or  environmental 
incidents  recorded  during  the  year  ending  June 
2015.   

Cash

the  Company  had  $82,831  in  cash  as  at  30  June 
2015  and  access  to  an  additional  $950,000  through 
a  $1,250,000  drawdown  debt  facility  through  its 
Chairman,  James  Chisholm,  and  a  working  capital 
facility for its Australian business of $1,000,000. 

Issue of shares and optIons

during  the  reporting  period  the  Company  issued 
a  total  of  2,024,550  fully  paid  ordinary  shares  as 
follows:

•	

•	

615,385 options were exercised by a related 
party of  the Non-executive Chairman (mr James 
Chisholm) at an exercise price of $0.25 per 
ordinary share.

1,250,000 fully paid ordinary shares were 
issued at an issue price of $0.29 per share to 
the managing director (1,000,000 shares) and 
employees (250,000 shares) of the Company as 
agreed by shareholders in resolution 7 and 8 
at the 2014 annual general meeting held on 28 
November 2014. Consideration for the shares 
has been satisfied by a non-recourse loan of 
$362,500 from the Company to the managing 
director and employees with the shares 
remaining in escrow until certain performance 
hurdles are met and if the performance hurdles 
are not met by 27 November 2017 the shares will 
be returned to the Company. this arrangement 
is an in-substance option as explained in note 14 
of the financial statements.

•	

159,165 shares were issued to certain employees 
and consultants for services performed at an 
average issue price of 31.6 cents per share.

during the reporting period a total of 900,000 options 
were  issued  to  non-executive  directors  being  mr 
Stephen Keith and mr Alex penha who each received 
450,000  options  with  each  option  having  a  right  to 
one  share  at  an  exercise  price  of  between  $0.65 
and  $0.85  as  explained  in  note  30  of  the  financial 
statements.

dIreCtors InCreasIng shareholdIng

In  december  2014  Fertoz  Chairman  mr  James 
Chisholm  exercised  615,385  Fertoz  options  at 
an  exercise  price  of  A$0.25  generating  proceeds 
of  A$154,000  for  Fertoz.  mr  Chisholm  and  his 
associated entities now own 5,918,765 Fertoz shares, 
representing 12.6% of Fertoz’s issued capital. 

Board Changes

on 31 July 2015, subsequent to the financial year-end, 
Fertoz  appointed  North  American-based  Stephen 
Keith as managing director of the Company to focus 
on  commercialising  the  North  American  assets.  
mr  Leslie  Szonyi  remains  as  an  executive  director 
reporting to mr Stephen Keith.

Stephen Keith was appointed to the Fertoz board in 
July 2014 as a non-executive director before taking 
on the role of managing director. He lives in toronto 
and  is  well  known  to  the  fertiliser  and  investment 
community  in  Canada,  having  led  tSX  listed  rio 
Verde minerals development Corp. to a sale in 2013. 
rio  Verde  was  progressing  the  development  of  a 
direct  application  rock  phosphate  project  in  Brazil 
at the time of the acquisition. Stephen holds a BSC 
in Applied Science, and an mBA. He is a registered 
professional engineer (p. eng) in British Columbia and 
ontario and has been involved in numerous feasibility 
studies and developed a number of resource projects 
in his career over the last twenty years.

7

Fertoz LImIted ACN 145 951 622  |  ANNuAL report 30 JuNe 2015

PROJECT REVIEW

Figure 1 — Fertoz’s North American project locations and proximity to Canadian agricultural areas

WapItI projeCt (100% owned)
British Columbia, Canada (Wapiti East and Wapiti 
West tenements)

the  Wapiti  project  (which  includes  the  Wapiti  east 
and Wapiti West tenements) totals an area of 19,161 
ha  and  is  located  near  tumbler  ridge,  in  British 
Columbia,  Canada.  the  project  is  easily  accessible 
by  sealed  roads  and  Forest  Service  roads  and  has 
rail  within  80  km.    the  Company  is  focused  on  the 
Wapiti  east  tenements  and  previous  work  indicates 
a  consistent  and  continuous  at-surface  phosphate-
bearing  horizon  which  has  a  potential  strike  length 
of up to 39km. Laboratory results of the phosphate 
indicate up to 10% availability (considered very good 

by  industry  standards)  which  makes  the  product 
at  Wapiti  east  particularly  attractive  to  the  North 
American organic sector which is the largest organic 
market in the World.

Bulk sample and first product sales

Fertoz commenced a bulk sample collection at Wapiti 
in late August after completion of road works which 
included the installation of 10 culverts across creeks 
from the camp and the construction of an access road 
of  approximately  2km  to  the  “North”  bulk  sample 
location. Approximately 1,200 tonnes were collected 
and stockpiled.

8

proJeCt reVIeW

In  october,  Fertoz  appointed  eggers  Soil  Solutions 
to  process  rock  phosphate  in  the  Grand  prairie 
agricultural 
from 
tumbler ridge. 

region,  approximately  240km 

Fertoz commenced first product sales on 9 october, 
selling  25  tonnes  of  ground  20%  p2o5  rock  to  a 
farmer  near  Stettler  in  west-central  Alberta  for  use 
in conventional agriculture trials. the delivered price 
was C$200/t. 

Fertoz has approval for bulk samples totalling 27,500 
tonnes of rock phosphate from its Wapiti and Fernie 
projects,  while  it  waits  approval  for  a  small  mine 
application  for  up  to  75,000  tonnes  per  annum  at 
Wapiti.

Appointment of marketing and  
Distribution Agent

Fertoz  appointed  Natures  Way  Farm  Ltd  (“Natures 
Way”)  on  14  october  as  a  marketing  Agent  to 
sell  rock  phosphate  from  the  Company’s  Wapiti 
project  in  British  Columbia.  Sunalta  Fertilizer  Ltd 
and  enviroperfect  solutions  were  also  appointed  as 
marketing  agents  following  the  signing  of  separate 
agreements 
in  November  and  december  2014 
respectively.

Natures Way Farms sells compost, calcium carbonate 
and rock phosphate, and mainly services the peace 
river and Grand prairie agricultural regions of north-
western  Alberta.  Sunalta  Fertilizer  Ltd  is  a  fertiliser 
company  focused  on  providing  soil  solutions  to 
farms with acidic soils in the central Alberta region. 
enviroperfect  Solutions,  based  near  edmonton, 
Alberta,  is  a  premier  soils  health  company  with 
a  focus  on  sustainable  soil  health  management. 
enviroperfect  Solutions  and  Sunalta  will  distribute 
Fertoz’s rock phosphate, in addition to investigating 
mixing it with other products that provide additional 
soil nutritional balance. 

the market opportunity for Fertoz’s rock phosphate 
products  has  come  about  because  conventional 
phosphate  fertilisers  are  relatively  ineffective  when 
used on the acidic soils of western Canada. Alberta 
has  1  million  acres  of  farming  land  with  strongly 
acidic soils and 4.5 million acres of farming land with 
moderately acid soils (ref: Liming Acid Soils, Alberta 
Government  department  of  Agriculture  and  rural 
development). 

9

one third of all farming land around Grande prairie 
(near Wapiti) has acid soil which reduces the uptake 
of  phosphorus  by  plants.  the  calcium  carbonate 
in  Wapiti  rock  phosphate  effectively  limes  the  soil, 
increasing  the  availability  of  phosphorus  for  plants. 
reduced  crusting  of  the  soil  along  with  improved 
crop  yields  and  reduced  power  requirements  for 
tillage  are  additional  benefits  of  calcium  carbonate 
applications  on  grey  and  dark  grey  wooded  soils 
in  the  peace  river  region  near  Wapiti  and  Grand 
prairie.

the  Company’s  Wapiti  and  Fernie  projects  (see 
Figure  1)  are  ideally  located  close  to  the  major 
farming  regions  of  eastern  British  Columbia  and 
western Alberta. Farms in these areas are a mixture 
of  broad-acre  and  intensive  agricultural  operations, 
with  farmers  fertilising  their  ground  through  either 
broad-acre spreading or directly into seed rows.

JORC Inferred Resource and Exploration Target

on  8  August,  Fertoz  announced  a  maiden  Inferred 
resource  estimate  for  Wapiti  of  1.54  mt  @  21.6% 
p2o5  (at  a  7%  cut-off),  calculated  to  a  depth  of 
30m  along  a  strike  length  of  12.5km.  the  Inferred 
resource is contained within an exploration target of 
between 2.9 mt and 3.3 mt at 20.8% to 22.2% p2o5 
which has been estimated to a depth of 30m along a 
27km strike length. mineralisation extends to depths 
in excess of 90m below surface and there is potential 
to increase both the resource and exploration target 
with  additional  drilling.  the  exploration  target  is 
conceptual  in  nature.  there  has  been  insufficient 
exploration (drilling) outside the area used to support 
the  mineral  resource  to  define  a  mineral  resource 
and it is uncertain if further exploration will result in 
the definition of a mineral resource.

exploration at Wapiti has included 81 diamond drill 
holes  and  multiple  trenches  and  surface  samples 
between  1978  and  2013.  this  information  has  been 
used by J.t. Shearer, m. Sc, p. Geo., and G.Shevchenko, 
B.  Sc.  (eng.)  of  Coastal  resource  mapping  Ltd  to 
estimate  a  mineral  resource  and  an  exploration 
target  in  accordance  with  JorC  2012.  resources 
(including additional elements) are calculated using 
the  polygonal-Weighted  Average  method  and  are 
summarised in tables 1 and 2.

Fertoz LImIted ACN 145 951 622  |  ANNuAL report 30 JuNe 2015

projeCt review
— continued —

the  Inferred  resource  was  calculated  within  four 
distinct areas in the project (Figure 2) and these are 
summarised in table 2. resources were based on a 
12.5km strike length of phosphate-bearing sediments. 
the phosphate-rich horizon has an average width of 
1m  and  was  extrapolated  to  a  depth  of  30m.  the 
density  of  the  phosphate  has  been  calculated  at 
2.845t/m³  by  metsolve  Laboratory  using  empirical 
test  work  and  supported  using  stoichiometric 
calculations.

table  3  shows  the  exploration  target  for  Wapiti.  It 
was based on a phosphate-bearing horizon having a 
mapped strike length of 27km and extrapolation to a 
depth of 30m below surface. the phosphate bearing 
layer is uniform in thickness with a density of 2.845t/
m³.

Intersections on a sectional basis for the calculation 
of this exploration target are summarised in table 4 
(over page). the exploration target distance for each 
section is shown in Figure 2. the data for each section 
was extrapolated at varying distances between data 
points  (drilling,  trenching,  surface  sampling).  the 
uncertainty in determination of the target was in the 
width and grade of the phosphate.

JORC Indicated Resource

on  14  may  2015  the  Company  announced  the 
upgrade of its JorC resource at the Wapiti phosphate 
project  in  British  Columbia.  the  806kt  at  22.3% 
p2o5  Indicated  phosphate  resource  represents  a 
conversion  of  52%  of  the  previous  Inferred  JorC 
resource. the remaining material retains its Inferred 
JorC classification.

taBle 1  -  WapItI east Inferred resourCe  

Depth below 
surface (m)

Category

Tonnes 
(million)

P2O5 
(%)

Al2O3 
(%)

CaO  
(%)

mgO 
(%)

30

Inferred

1.54

21.6

1.9

43.6

1.3

SiO2
(%)

13.7

Fe2O3
(%)

1.2

taBle 2  -  WapItI east Inferred resourCe By phosphate zone

Area Description

Category

Length 
(km)

Depth 
(m)

Width 
(m)

P2O5 
(%)

Resource  
(t)

red deer east Limb

red deer West Limb

Inferred

Inferred

red deer West-West Limb

Inferred

Wapiti Syncline

Inferred

5.6

4.4

1.5

1.0

Total

Inferred

12.5

30

30

30

30

30

1.0

0.95

1.13

1.0

1.0

23.0

19.7

22.5

18.6

21.6

773,490

499,920

138,020

126,530

1,537,960

taBle 3  -  WapItI exploratIon target

Depth below surface 
(m)

Category

Tonnes  
(million)

Width 
(m)

P2O5 (%)  
range

30

exploration target

2,925,290 – 3,293,710

0.85 to 0.97

20.8 to 22.2

10

proJeCt reVIeW

taBle 4  -  WapItI exploratIon target By phosphate zone

Area Description

Category

Length 
(km)

Depth 
(m)

Width 
(m)

red deer east Limb

Inferred resource

5.64

exploration target

2.5

red deer West Limb

Inferred resource

4.34

red deer West-West 
Limb

exploration target

Inferred resource

Wapiti Syncline

Inferred resource

exploration target

9.3

1.5

1.0

2.7

30

30

30

30

30

30

30

P2O5 
(%)

23.0

Resource (t)

773,490

1.0

0.78 – 1.0

23.0 - 25.5

268,640 – 342,860

0.95

19.7

499,920

0.67 - 0.95

19.7 - 22.5

848,610 – 1,071,250

1.13

22.5

138,020

1.0

18.6

126,530

0.73 - 0.97

18.6 - 20.7

270,080 – 341,640

Total

Expln Target

27.0

30

0.85 – 0.97 20.8 – 22.2 2,925,290 – 3,293,710

the  combined  Inferred  and  Indicated  resource 
of  1.54mt  @  21.6%  p2o5  (at  a  7%  cut-off)  has  been 
calculated to a depth of 30m along a strike length of 
12.5km at Wapiti. the resource classification is shown 
below in table 5.

Wapiti Small mine Application

during Wapiti bulk sample collection (Figure 3), Fertoz 
carried out successful blasting trials and confirmed its 
proposed mining method, collecting key information 
for the upcoming small mine application.

In November 2014, the Company submitted a Small 
mine  Application  to  the  B.C.  ministry  of  mines  to 
extract up to 75,000 tonnes per annum of phosphate 
rock from its Wapiti project.

the Company is expecting to receive approval for a 
small mine at Wapiti in the fourth quarter of calendar 
year 2015 or the first quarter of 2016. the Company 
already  has  approval  to  collect  a  total  of  27,500 
tonnes of rock phosphate consisting of 17,500 tonnes 
at Wapiti and 10,000 tonnes at Fernie, while waiting 
for mine approval at Wapiti. 

the Company has also extended its land holding at 
Wapiti to allow for a new road to be built accessing 
the south of the property. Fertoz intends to build a 3.4 
kilometre  access  road  to  the  south  of  the  property, 
which  will  connect  to  existing  forestry  roads  and 
utilise  existing  bridges  over  creeks.  It  will  allow  40 
tonne trucks to take product directly from site to the 
processing  plant,  improving  mining  efficiency  and 
allowing  the  Company  to  increase  product  delivery 
rates. 

taBle 5  -  WapItI east resourCe  

Depth below 
surface (m)

Category

Tonnes 
(million)

P2O5 
(%)

Al2O3 
(%)

CaO  
(%)

mgO 
(%)

Inferred

Indicated

0.73

0.81

21.3

22.3

1.9

1.96

43.6

43.1

1.3

1.3

SiO2
(%)

13.7

14.0

Fe2O3
(%)

1.2

1.3

30

30

30

Total

1.54

21.6

1.9

43.4

1.3

13.8

1.3

11

Fertoz LImIted ACN 145 951 622  |  ANNuAL report 30 JuNe 2015

projeCt review
— continued —

Figure 2 — wapiti project – indicated and inferred jorC resource and exploration target locations

12

proJeCt reVIeW

Figure 3 — trial mining at wapiti during 2014

Wapiti Scoping Study

Cautionary Statement

Fertoz announced on 14 may 2015 a Scoping Study for 
a small-scale rock phosphate mine at the Company’s 
100%-owned  Wapiti  project  in  British  Columbia.    A 
20 year project life was determined from an Indicated 
and Inferred resource of 1.54mt at 21.6% p2o5. the 
project mining model is based on 60% Indicated, 40% 
Inferred resources.  the base case study resulted in:

post tax, unlevered NpV10 real (20 years)

C$20.1m

post tax, unlevered Irr

Capital cost phased over 3 years

payback (discounted, after tax)

82.4%

C$2.7m

2018

Net cash flow pre-tax first 20 years

C$69.8m

results using a 10% post tax real discount rate, C$ 1:00: A$1.04, flat real commodity 
price of C$ 250/t

In  accordance  with  ASX  listing  rules,  the  Company 
advises the results of the Scoping Study referred to in this 
announcement  are  based  on  lower  confidence  technical 
and  preliminary  economic  assessments  that  are  not  the 
level  of  pre-feasibility  or  feasibility  studies.  The  results 
and outcomes of this study are not technically sufficient to 
support Ore Reserves (JORC 2012) or to provide assurances 
as  to  the  economic  viability  of  any  mine  development, 
or  that  any  development  will  proceed.  The  production 
target  referred  to  is  partly  based  on  Indicated  and 
Inferred Mineralisation. There is a low level of geological 
confidence  associated  with  inferred  Mineral  Resources 
and there is no certainty that additional exploration work 
will result in the definition of Indicated Minerals Resources, 
or that mine development and production will be realised. 
Approximately 40% of mineralisation included in the study 
is of the Inferred category.

the Scoping Study was based on a staged open pit 
development  and  the  upgraded  Wapiti  resource.  It 
includes  three  stages  in  the  design,  with  an  initial 
7m open pit for the first 7 years of the project at an 
average strip ratio of 1.6:1, and a 75ktpa production 
rate to be reached in 2018 (though it is possible this 

13

 
Fertoz LImIted ACN 145 951 622  |  ANNuAL report 30 JuNe 2015

projeCt review
— continued —

could  be  brought  forward  to  2017).  the  planned 
mine  area  contains  a  low  risk  resource  which  is 
outcropping, homogenous, and has been drilled and 
bulk  sampled  by  Fertoz.  refer  to  table  6  below  for 
the key assumptions and financial metrics.

only  12.5km  of  the  estimated  39km  length  of  the 
estimated  strike  has  been  included  in  the  Wapiti 
Scoping  Study,  with  the  remainder  representing 
potential  additional  exploration  and  mining 
opportunities. 

the  Company  plans  to  mine  on  a  seasonal  basis 
between may and october to maximise productivity 
and  ease  of  access.  mined  material  will  be 
transported, stockpiled and sold after it is processed 
to  meet  various  market  requirements.    there  is  the 

potential to expand production levels beyond 75ktpa 
thereby enhancing economic potential of the project.  
production would commence on a reduced scale with 
30kt in 2016, 50kt in 2017 and rising to full production 
in  2018.    margins  per  tonne  sold  are  estimated  at 
C$81/t (32% of sales price) for the first 7 years of the 
project.  

the  Wapiti  project  is  located  850km  north  east  of 
Vancouver,  British  Columbia  (BC),  145km  north  east 
of prince George, 70km south east of tumbler ridge 
(coal mining town) and 180km south east of the rail 
hub at dawson Creek (Figure 4).

ready access to the Wapiti site is possible via a number 
of public roads. these are suitable for the transport of 
heavy equipment and haulage of excavated material. 

taBle 6  -  sCopIng study assumptIons and fInanCIal metrICs  

Item

project life 

Scoping Study mined resource (diluted)

Capital cost

Stage 1 resource mined to 7m

Stage 2 resource mined to 19m

Stage 3 resource mined to 31m

Stage 1 mining cost to 7m

Stage 2 mining cost to 19m

Stage 3 mining cost to 31m

processing cost

Freight to processing site

Freight to distributor

distribution cost

Selling price

discount rate (real)

Project NPV (20 years)

Project IRR

Units

years

kt

C$m

kt

kt

kt

C$/t

C$/t

C$/t

C$/t

C$/t

C$/t

% of selling price

C$/t

%

C$m

%

14

Value

20

1,336 @ 20% p2o5

2.7

361

600

400

24.3

40.4

56.3

15.0

20.0

60.0

20%

250.0

10%

20.1

82.4%

proJeCt reVIeW

A  number  of  existing  trails  and  roads  exist  on  the 
Wapiti  property.  Several  of  these  roads  require  an 
extension to support ongoing mining operations. 

After mining on site, pre-crushed material is planned 
to be transported as broken rock to a manufacturing 
facility  that  will  be  established  at  dawson  Creek.   
At  this  facility,  the  phosphate  rock  will  be  crushed 
to  reduce  its  size  from  40mm  (crushed  rock)  to 
approximately 0.15mm (ground material). 

In order to generate early cash flow while the operation 
at dawson Creek is being established, rock phosphate 
from the Company’s Fernie project will be processed 
at  Stettler,  Alberta.    Here,  a  raymond  mill  will  be 
purchased to grind the 40mm rock down to 0.15mm.  
Stettler  (Figure  4)  is  the  centre  of  a  major  farming 
area in Alberta. there is a further 9kt of bulk sample 

available  for  collection  at  Fernie  for  processing  at 
Stettler under the current Fernie Bulk Sample permit.  
extension of the bulk sample amount or permitting 
for a small-scale mine are growth options for Fernie 
which  will  be  reviewed  by  the  Company  during  the 
second half 2015 calendar year.  

once  sales  are  established  in  the  farming  region 
around  Stettler,  the  raymond  mill  will  either  be 
moved to dawson Creek, or another mill purchased 
and  installed  at  dawson  Creek.    dawson  Creek  has 
the advantage of being a proximate to a rail hub that 
connects to edmonton, Calgary, prince George and 
Vancouver. It also has a trained workforce, industrial 
facilities,  spare  parts  and  industrial  land.    Stettler 
in  Alberta  is  similar  and  has  some  large  farming 
concerns  nearby  that  could  provide  on-going  sales 
opportunities and/or off-take agreements.  

Figure 4 — Key project locations and infrastructure in Western Canada

15

Fertoz LImIted ACN 145 951 622  |  ANNuAL report 30 JuNe 2015

projeCt review
— continued —

there is also the potential to establish an expanded 
processing  facility  at  Stettler  and/or  dawson  Creek 
to  produce  blended  fertiliser  products  using  other 
locally  sourced  resources.    Fernie  rock  phosphate 
can be supplied to other organic fertiliser facilities in 
northern montana and Washington State as well.

months.  Annual fixed costs associated with the mining 
operation  include  camp  set-up,  site  preparation, 
equipment  mobilisation,  insurance,  environmental 
analysis, geotechnical assessment, quality assurance, 
administration  and  community  liaison,  operations, 
sales and marketing, and administration.

Capital  costs  have  been  estimated  using  a 
combination of firm quotes (processing equipment, 
jaw crusher, industrial site) and industry experience. 
total capital required is estimated to be C$2.7m for 
the establishment of a processing facility at dawson 
Creek,  which  will  occur  over  the  initial  3  years  of 
development  (or  two  years  under  an  accelerated 
production  regime).  table  7  provides  a  detailed 
capital cost estimate.

total fixed costs are expected to be C$300k in 2015, 
C$550k in 2016, C$600k in 2017 and C$616kpa from 
2018 onwards when it is expected there will be two 
teams  operating  at  Wapiti  to  extract  75ktpa  in  5 

the  Wapiti  Scoping  Study  assumes  an  estimated 
realised price of C$250/t based on consultation with 
Sunalta Fertilizer Ltd (a Fertoz distributor). this is the 
expected  price  for  bulk  product  in  Alberta  with  a 
minimum p2o5 content of 19%.  A distribution fee of 
20% is payable on the sale price.

this  compares  to  market  prices  which  vary  from 
C$285/t  (20t  truck  loads)  to  C$700/t  (1t  bagged 
material)  for  phosphate  rock  ranging  between  16% 
and 27% p2o5 with 2% to 3% phosphate availability 
in  Canada  and  the  uSA.  the  product  could  also 
potentially  be  micronized  to  less  than  10  microns, 
which  attract  prices  of  over  C$2,500/t  in  North 

taBle 7  -  detaIled CapItal Cost estImate

Item

road access, setup

Crusher

processing equipment for 2015/2016

equipment overhaul and installation at Stettler

Industrial site at dawson Creek (incl. stamp duty, on-costs)

Building with undercover storage at dawson Creek for 2,000t

power installation

Additional processing equipment (to increase production to 20t/hr)

Conveyors, load out hopper with weigh scales

drying equipment for rock processing

Subtotal

engineering design (+10%)

Contingency (+20%) and unallocated items

Total

16

Units

Value

C$k

C$k

C$k

C$k

C$k

C$k

C$k

C$k

C$k

C$k

C$k

C$k

C$k

C$k

300

100

140

60

300

400

50

420

100

200

2,070

207

423

2,700

proJeCt reVIeW

America.  Fertoz  sold  an  initial  26t  at  a  discounted 
price of C$200/t in late 2014 within the Stettler farm 
area between edmonton and Calgary, Alberta. Fertoz 
has  since  confirmed  pricing  to  be  at  least  C$250/t 
for  the  Wapiti  ground  rock  phosphate.  pelletised 
products attract a higher price, as does ground rock 
phosphate that is bagged and/or micronized. All of 
these options are available to the Company but have 
not  been  included  in  the  current  Wapiti  Scoping 
Study.

Laboratory results from the 2t bulk sample collected 
at  Wapiti  east  in  october  2013  demonstrated  low 
heavy  metal  impurities  from  Wapiti.  the  results 
achieved a 10% phosphate availability, which makes 
the  Wapiti  east  product  particularly  attractive  to 
the  organic  fertiliser  market  as  a  direct  application 
product. the result can be compared to other known 
phosphate  areas  such  as  North  Carolina,  uSA  and 
Sechura, peru which typically demonstrate 6% to 7% 
phosphate  availability  and  exhibit  good  agronomic 
effectiveness  on  suitable  soils  and  crops  (Sinclair, 
New zealand Journal of Agricultural research 1998).

the  combined  uS/Canada  organic  goods  market 
is  worth  uS$34.5bn,  or  48%  of  the  global  organic 
food  market.  the  value  of  the  Canadian  organic 
food market has tripled since 2006, far outpacing the 
growth rate of other agri-food sectors. It is estimated 
that  58%  of  all  Canadians  are  buying  organic 

products  on  a  weekly  basis.  Currently,  there  are 
more  than  3,700  certified  organic  farms  in  Canada. 
organic farms are found in every province in Canada 
producing  fruits,  vegetables,  hay,  crops  (i.e.  wheat, 
oats, barley, flaxseed and lentils), animal and animal 
products,  and  herbs.  more  than  half  of  all  certified 
farms are found in Western Canada. organic growers 
typically use organic phosphorus sources, like Wapiti 
rock  phosphate,  to  provide  phosphorus  for  crop 
development.  (FiBL  IFoam  organic  World  2014). 
many  of  the  other  organic  rock  phosphates  in  the 
uSA exhibit phosphate availability of 3% or less.

two  companies  are  undertaking  blending  trials 
with  Wapiti  and  Fernie  phosphate  rock  and  other 
additives to enhance its effectiveness when used as a 
conventional fertilizer.

the  sensitivities  of  the  project  NpV  (C$m)  and  Irr 
(%)  are  summarized  below  in  Figure  5  and  Figure  6 
respectively,  for  parameter  changes  between  +20% 
and -20%.

Growth options for Wapiti include, but are not limited 
to, the following:

1. 

An extended reach (10m) excavator can be 
used in Stage 1 mining (compared to a 6m 
excavator in the Wapiti Scoping Study). mining 
costs for first 7 years have been based on a 6m 
excavator as this was proven effective during 

40 

35 

30 

25 

20 

15 

10 

5 

140% 

120% 

100% 

80% 

60% 

40% 

20% 

-25% 

-20% 

-15% 

-10% 

-5% 

0% 

5% 

10% 

15% 

20% 

-30% 

-20% 

-10% 

0% 

10% 

20% 

30%

Capital Cost 

Process cost

Selling Price 

Freight Cost

Mine cost

Fixed Costs 

Capital Cost 

Sell Price 

Process Cost

Freight Cost

Mine Cost

Fixed Cost

Figure 5 — NPV (C$m) sensitivity analysis

Figure 6 — IRR (%) sensitivity analysis

17

 
 
 
 
 
Fertoz LImIted ACN 145 951 622  |  ANNuAL report 30 JuNe 2015

projeCt review
— continued —

the bulk sample collection in 2014 (constructing 
a 1m bench and 6m reach for total of 7m). An 
extended reach excavator would extend Stage 
1 mining to 9 years and reduce initial mining 
costs to C$21.1/t. preliminary estimates are that 
an extended reach excavator would increase the 
Scoping Study NpV to C$22.2m with an Irr of 
88.1%;

2. 

3. 

Further exploration is expected to extend the 
mineable phosphate horizon from 12.5km up to 
a maximum of 39km. this would increase mine 
life beyond the current 20 years and reduce 
Stage 1 costs due to the extended period of 
Stage 1 mining; and

project economics could be improved by 
ramping up to full production of 75ktpa in 2017. 
this would require bringing forward the capital 
expenditure of C$2.5m so C$0.5m is spent in 
2015 and $2m is spent in 2016. on this basis, the 
Scoping Study NpV would increase to C$21m 
with an Irr of 88.0%.

fernIe projeCt (100% owned)
British Columbia, Canada (marten, Barnes Lake 
and Crows Nest tenements)

the  Fernie  project  (which  includes  the  marten, 
Barnes  Lake  and  Crows  tenements)  is  located 
near  Sparwood  in  British  Columbia  Canada.  the 
tenements  are  within  25km  of  each  other  and  are 
in  close  proximity  to  the  operating  east  Kootenay 
Coalfield which is serviced by the established mining 
communities in the region.  At the door step of the 
project is the existing road and rail transport links to 
the west coast ports of Canada as well as the North 
American  arterial  rail  and  road  networks.    previous 
exploration  work  has  highlighted  the  presence  of 
widespread,  shallow  phosphate-bearing  sediments 
associated with the base of the Jurassic-aged Fernie 
Formation. 

In  July  Fertoz  received  approval  to  extract  a 
phosphate bulk sample of up to 10,000 tonnes from 
marten.  Fertoz executed a land use agreement with 
tembec Industries in August to allow access to the 
property.

Fertoz  commenced  a  three-week  phosphate  rock 
trenching  and  drill  programme  with  bulk  sample 

collection  of  approximately  1,000  tonnes  from  the 
marten  tenements  at  its  Fernie  phosphate  project 
on 16 october 2014.  

the  Company  has  also  extended  the  phosphate 
prospective  area  from  1,215  hectares  to  1,739 
hectares,  or  43%,  by  acquiring  two  new  tenements 
at  very  low  cost.  the  total  Fernie  project  area  has 
increased from 3,904 hectares to 4,466 hectares.

the  joining  of  marten  and  Crows  Nest  tenements 
(Figure 7) also has the benefit of more efficient use 
of exploration funds as there is no longer a need to 
have  a  separate  exploration  programme  for  Crows 
Nest to keep the tenements in good standing with 
the BC ministry of mines. 

dry rIdge projeCt  
(option to acquire 100% ownership)
Idaho, USA

World  Industrial  minerals  (“WIm”)  completed  field 
work  between  9  July  and  15  July  2014.    GIS  map 
generation  using  eSrI  Arcmap,  and  geological 
cross  section  and  3d  interpretation  using  Geosoft 
target,  was  completed  between  16  July  and  25 
July.  Geological  data  was  generated  to  determine 
locations for 48 drill sites and 24 trenches along the 
full 4.8km length of the Fertoz dry ridge Lease area. 
the proposed road construction, trenches and drill 
sites are shown in Figure 8.

Field work for staking and flagging the proposed dry 
ridge exploration roads, drill pads, and trenches was 
completed between 11 August and 24 August 2014. 
the  uS  Forest  Service  then  performed  a  “timber 
cruise” based on the staking.

environmental  studies 
(wildlife,  vegetation  and 
cultural) were completed and a draft environmental 
Assessment was prepared. the Idaho State Journal 
published  a  notice  for  public  comment  on  Fertoz’s 
planned  exploration  at  dry  ridge.  the  30-day 
public  comment  period  concluded  on  10  october 
2014. Comments were received as part of the public 
submittals  process,  Fertoz’s  consultants  (Cascade 
environment  Services  ‘CeS’)  have  addressed  the 
comments and the draft environmental Assessment 
(eA)  report  was  submitted  to  the  BLm  (Bureau  of 
Land management) on 21 November 2014.

18

proJeCt reVIeW

Figure 7 — Fernie project (Marten, Crows Nest, Barnes Lake)

19

Fertoz LImIted ACN 145 951 622  |  ANNuAL report 30 JuNe 2015

projeCt review
— continued —

In July 2015 the uS Bureau of Land management and 
the uS Forestry Service both gave approval for Fertoz 
to undertake exploration of the dry ridge project in 
Idaho. Fertoz intends to seek a joint venture partner 
to fund the proposed exploration programme.    

the  dry  ridge  acquisition  complements 
the 
Company’s  projects,  and  is  close  to  existing  and 
proposed  phosphate  mines  in  the  Idaho  area.  the 
exploration licence covers 210 hectares and extends 
along  the  known  north-south  trending  outcrop  of 
phosphate  bearing  horizons  demonstrated  on  the 
adjacent  tenements.  previous  trenching,  mapping 
and  analysis  identified  relatively  narrow  and  high-
grade  phosphate  zones  grading  up  to  33%  p2o5, 
at  a  width  of  3m  within  larger,  lower-grade  zones. 
this  phosphate  is  hosted  in  sedimentary  horizons 
that extend north into the tenure owned by Agrium, 
which  is  developing  the  new  Husky  #1  phosphate 
mine  (Federal  register  Notice,  August  2,  2012)  and 
south to Husky #3 also owned by Agrium.

australIan projeCts

during  the  march  quarter  Fertoz  relinquished 
its  two  remaining  exploration  assets  in  Australia. 
they  consisted  of  eL26915  at  Barrow  Creek, 
Northern  territory  and  epm19448  at  Sherrin  North, 
Queensland.

fertoz agrICulture joInt Venture In 
australIa

In November 2014 Fertoz formed Fertoz Agriculture 
pty  Ltd  as  trustee  for  Fertoz  Agriculture  trust 
(“FertAg”, ABN 72 692 314 002), a joint venture (“JV”) 
between Fertoz Limited (50%) and Vast resources pty 
Ltd  (50%)  to  import  and  market  a  proven  specialty 
phosphate fertiliser in Australia and New zealand.

FertAg  has  obtained  exclusive  Australian/New 
zealand  distribution  rights  from  an  Asian  supplier 
to supply up to 50,000 tpa of a specialty high grade 
phosphate product that can be used by both organic 
and  conventional  farmers.  the  brand  name  chosen 
by the JV follows the typical N-p-K nomenclature of 
conventional fertiliser:  “FertAg 0-8-0”.

Figure 9 — FertAg 0-8-0 loaded ready for shipment to Australia in 20 foot containers.            FertAg 0-8-0 and FertAg 0-7-0.

20

proJeCt reVIeW

FertAg  0-8-0  is  a  fused  calcium-magnesium-silicate 
phosphate,  not  a  reactive  phosphate  rock.  It  is 
manufactured  at  high  temperature  from  naturally 
occurring minerals and because there is no chemical 
change,  it  is  suitable  for  use  in  both  organic  and 
conventional  agriculture.  the  product  is  insoluble 
in  water  and  does  not  leach  into  waterways,  like 
conventional p fertilisers, yet 95% of the p is readily 
available for uptake to plants.

When compared on a cost per hectare basis, FertAg 
0-8-0 is expected to be cheaper than superphosphate 
due to:

a. 

Less product required per hectare;

b. 

Lower spreading costs;

c. 

No need for periodic lime applications; and

d. 

Less other nutrients required.

due to customer demand, FertAg has introduced a 
granular product, FertAg Granular 0-7-0 (“FertAg G 
0-7-0”) which is available in 1 tonne bags and 25kg 
bags.

FertAg  0-8-0  is  typically  spread  using  belt  and  disc 
spreaders. 

FertAg G 0-7-0 has the advantage of being able to be 
spread through air seeders and also by aircraft over 
large pastures. FertAg products are not hygroscopic 
and do not pick up moisture and harden like single 
super phosphate. they can be stored indefinitely and 
are easy to spread at all times.  FertAg 0-8-0 and FertAg 
G 0-7-0 are effective alternatives for superphosphate. 
Australian farmers use approximately 710,000 tonnes 
of  superphosphate  per  year  (Australian  Bureau  of 
Statistics 2012 data) while New zealand farmers use 
approximately 1,000,000 tonnes each year (Ballance 
2015).

Initiatives  introduced  during  the  march  quarter 
were:

1. 

Secured a non-exclusive National Supplier 
Agreement (ASX announcement 9 February 
2015) for distribution of FertAg’s specialty 
phosphate products with ruralco Holdings Ltd 
(“ruralco”), a major Australian agribusiness.

2. 

3. 

Introduced a Shareholder rewards program 
(ASX announcement 12 February 2015) where 
Fertoz shareholders who own a minimum of 
5,000 shares can receive a refund of A$15 
per tonne for FertAg products purchased in 
Australia. Key terms and conditions are available 
on the Company’s websites (www.fertoz.com, 
www.fertag.com) and were also provided in the 
press release.

entered into a working capital facility (ASX 
announcement 27 February 2015 with 
moneytech Finance pty Ltd (“moneytech”) for 
up to A$1 million (the “Facility”). the Facility 
provides FertAg with up to 90 days to pay 
moneytech for expected proceeds from goods 
sold. A global insurance group, currently rated 
A+ by Standard & poors, agreed to insure the 
Facility. 

4. 

developed FertAg web page www.fertag.com.

800  tonnes  of  FertAg  0-8-0  product  was  imported 
to  Brisbane  and  melbourne  in  February  and  march 
2015.

Sales revenue for FertAg 0-8-0 in the march quarter 
was A$38,000 from sales in Queensland and Victoria. 
Sales have continued to grow since with orders also 
coming from NSW, tasmania and Kangaroo Island.

revenue  from  sales  of  FertAg  0-8-0  invoiced  in  the 
June  quarter  for  FertAg  0-8-0  were  up  35%  on  the 
march  quarter.  Sales  at  the  end  of  June  totalled 
$94,000. 

during  the  march  quarter,  the  distributor  network 
was expanded to include Landmark, e.e. muirs and 
National  Framers  Warehouse  stores,  and  7  product 
distribution  centres  were  established  in  sites  across 
Queensland, NSW, Victoria and tasmania to enable 
easy  access  for  farmers,  and  to  reduce  holding 
costs.

FertAg has delayed the appointment of further sales 
personnel and also expansion into New zealand. the 
sales team has been reduced to one full time person 
with  technical  support  being  provided  part-time  as 
required. these changes and the growth in customer 
awareness  of  the  FertAg  products  have  resulted  in 
the business becoming cash positive in June.

21

Fertoz LImIted ACN 145 951 622  |  ANNuAL report 30 JuNe 2015

BOARD OF DIRECTORS

mr James Chisholm

Title Non-executive Chairman

Qualifications B.eng, mBA

Experience and expertise mr Chisholm is a qualified engineer, having worked in the engineering, 
mining, oil and gas sectors for the past 28 years. mr Chisholm has worked 
on  numerous  resource  construction  and  maintenance  projects  around 
Australia,  primarily  covering  coal,  iron  ore,  and  agricultural  mining  and 
processing. mr Chisholm co-founded the Chairmen1 pty Ltd which sold its 
assets to Guildford Coal Ltd (ASX: GuF), becoming its largest shareholder. 
mr  Chisholm  is  experienced  in  start-up  exploration  and  development 
companies.

Other current directorships executive Chairman of Atrum Coal NL (ASX: Atu)

mr Stephen Keith (appointed as non-executive 29 July 2014)

Title managing director (appointed 31 July 2015)

Qualifications p.eng, B.Sc. Applied Science, mBA 

Experience and expertise mr  Keith  was  appointed  managing  director  on  31  July  2015  to  focus 
on  commercialising  North  American  assets.  previously  he  was  a  non-
executive director. mr Keith is based in toronto, was president and Chief 
executive of officer (Ceo) of Search minerals Inc. (tSX-V:SmY), a company 
focused on the exploration and development of strategic metals. prior to 
his work with Search minerals, mr Keith was founder and president of rio 
Verde minerals development Corp ("rio Verde") (tSX: rVd), a phosphate 
company he took from concept to listing on the tSX-V. mr Keith led rio 
Verde minerals until its acquisition by B&A Fertilizers Limited on march 13, 
2013. In addition mr Keith sits on the Board of directors of Aura minerals 
(tSX:orA).

Other current directorships Aura minerals (tSX:orA).

22

BoArd oF dIreCtorS

BoArd oF direCtors 
— continued —

Dr Leslie Szonyi

Title executive director  

(changed from Managing Director to executive director on 31 July 2015)

Qualifications B. eng, ph.d. Chemical engineering, member of AICd

Experience and expertise dr Les Szonyi has over 30 years’ experience in the chemicals processing 
industry, including 18 years at orica (formerly ICI Australia). He spent the 
five and a half years prior to joining Fertoz based in Central Queensland, 
leading  Queensland  Nitrates  (QNp),  an  integrated  manufacturer  of 
ammonia,  nitric  acid  and  ammonium  nitrate.  Les  has  a  track  record  of 
increasing shareholder value through enhanced commercial performance, 
contract  negotiation,  technical  excellence,  project  management  and 
superior  operations  and  safety  performance.  dr  Szonyi  was  managing 
director  until  31  July  2015  and  continues  as  director  and  a  consultant  
reporting to mr Keith the current managing director.

Other current directorships None

mr Adrian Byass

Title Independent Non-executive director

Qualifications BSc (Hon), B.econ, member of Institute of Geoscientists, Fellow of Society 

of economic Geology

Experience and expertise mr  Byass  has  over  18  years’  experience  in  the  mining  and  minerals 
industry.  this  experience  has  principally  been  gained  through  mining, 
resource estimation, mine development and exploration roles for several 
gold, base metals and specialty metal mining and exploration companies 
worldwide.  mr  Byass  is  a  Competent  person  for  reporting  to  the  ASX 
for  certain  minerals.  mr  Byass  has  also  gained  experience  in  corporate 
finance  and  financial  modelling  during  his  employment  with  publicly 
listed mining companies. He is currently managing director of plymouth 
minerals Limited.

Other current directorships

Ironbark zinc Limited (ASX: IBG), Corazon mining Limited (ASX: CzN) and 
plymouth minerals Limited (ASX: pLH).

23

Fertoz LImIted ACN 145 951 622  |  ANNuAL report 30 JuNe 2015

mr Alexandre Penha (appointed 29 July 2014)

Title Alternative Non-executive director to Stephen Keith

Qualifications BA, B.Sc. economics, post-degree in Corporate Finance

Experience and expertise mr penha is based in toronto and has worked closely with Stephen Keith 
for  a  number  of  years  at  both  Search  minerals  (director  and  eVp)  and 
rio Verde minerals (Vp of Corporate development). mr penha has over 
eight years of experience in mining capital markets, including corporate 
development,  research  and  investment  banking.  mr  penha  is  a  board 
member of the Brazil-Canada Chamber of Commerce and Chairman of 
its mining Committee.  

Other current directorships None 

24

LISt oF teNemeNtS

LIST OF TENEmENTS

Project Name

Tenement 
Number

Ownership

Approx.  
Area (ha)

Expiry Date

Registered holder

CANADA
Wapiti East

WK-1

WK-2

WK-3

WK-4

WK-5

WK-6

WK-7

WK-8

WK-9

WK-10

WK-11

WK-12

WK-one

Wapiti Ne

Wapiti two

Wapiti South

WAp S2

WAp S3

WAp S4

WAp S5

WAp S6

red deer 1 

red deer 2

red deer 3

munok

munok 1

Belcourt 1

munok 2

Belcourt 2

Belcourt 3

Belcourt 4

Belcourt 4

Belcourt Link

851942

851948

851952

851958

941760

941761

941762

941763

941764

941769

955278

956829

982744

1015556

1015557

1015558

1018104

1018106

1018107

1018108

1018109

1023921

1023922

1023923

1029417

1015626

1015627

1024783

1024803

1024806

1024805

1024805

1027037

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

450.83

451.02

450.77

451.2

450.83

469.87

450.86

451.08

451.33

451.36

470.31

225.35

18.8

375.54

168.93

376.35

451.82

451.75

451.93

452.09

452.3

150.2

206.3

150.1

207.38

169.58

113.27

603.05

301.76

188.7

339.78

339.8

282.59

25

Fertoz LImIted ACN 145 951 622  |  ANNuAL report 30 JuNe 2015

Project Name

Tenement 
Number

Ownership

Approx.  
Area (ha)

Expiry Date

Registered holder

CANADA (continued)
Wapiti East (continued)

WAp 11

South 1

South 2

South road 2

SubTotal

Wapiti West

tunnel 1

tunnel 2

Sukunka1

Sukunka2

pAL 2

pAL 3

pAL 4

SuK 3

SuK 4

SuK 5

SuK 6

SuK 7

SuK 8

SuK 9

SuK 10

SuK 11

t11

SubTotal

Barnes Lake

BL 1

BL 2

Crows Nest

Crows Nest

Crows 2

1027038

1029488

1029489

1030777

942096

942097

851714

980302

1018084

1018085

1018086

1018087

1018095

1018096

1018097

1018098

1018099

1018101

1018102

1018103

1018128

1011319

1020873

1023062

1023064

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

21/04/2021

Fertoz International

27/03/2016

Fertoz International

27/03/2016

Fertoz International

15/09/2016

Fertoz International

15/09/2016

Fertoz International

27/03/2016

Fertoz International

27/03/2016

Fertoz International

27/03/2016

Fertoz International

27/03/2016

Fertoz International

27/03/2016

Fertoz International

27/03/2016

Fertoz International

27/03/2016

Fertoz International

27/03/2016

Fertoz International

27/03/2016

Fertoz International

27/03/2016

Fertoz International

27/03/2016

Fertoz International

27/03/2016

Fertoz International

28/03/2016

Fertoz International

19/07/2017

Fertoz International

18/10/2016

Fertoz International

15/10/2021

Fertoz International

15/10/2021

Fertoz International

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

168.94

112.64

376.16

413.66

12,208.43

446.13

445.97

18.51

444.23

443.88

388.49

444.1

444.32

444.53

444.71

444.89

445.08

445.25

445.39

445.57

445.8

316.2

6,953.03

608.98

629.00

1450.89

38.67

26

LISt oF teNemeNtS

List oF teNeMeNts
— continued —

Project Name

Tenement 
Number

Ownership

Approx.  
Area (ha)

Expiry Date

Registered holder

CANADA (continued)
marten

marten 1

marten 2

marten Nth

marten e

SubTotal

Canada Total

UNITED STATES

1024365

1025533

1029979

1031107

100%

100%

100%

100%

dry ridge

I-07238

0%¹

United States Total

754.32

460.86

334.99

188.48

4,466.19

23,627.65

210.0

210.0

29/06/2021

Fertoz International

28/06/2021

Fertoz International

1/08/2021

Fertoz International

23/09/2021

Fertoz International

31/05/2016

Solvay uSA Inc.

27

Fertoz Ltd (ACN 145 951 622)