Brian Ostroff: Presentation: Focusing on the Global Demand for Phosphate
The majority of phosphate in the world comes from sedimentary deposits which often contain some contaminants such as heavy metals. Arianne’s deposits come from the rarer igneous rock which is much cleaner and of a higher grade.
Demand for phosphate grows every year as the world continually needs more phosphate. About five million tons of supply is required every year, or we will end up in a global supply deficit.
Much of the worlds phosphate supply comes from the geopolitically high-risk Middle East. Places like Morroco, Tunisia, Saudi Arabia, and Syria. Currently, much of that production is not available. Russia is the other supplier of high-quality phosphate.
Arianne is the only large scale source of independent raw production that is set to come onstream. The world at a minimum needs a mine the size of Arianne to go online every single year to maintain supply.
Arianne is based in Quebec, Canada, and they have all of their key infrastructure already in place. They are fully permitted for building the mine and a seaport facility. They have a 25-year mine supply resource with the potential for up to fifty years. It’s an extensive project with a considerable capital cost that should generate over 500 million in revenue per year with 250 million in profits.
Time Stamp References:
1:00 – Intro to Brian and Arianne Phosphate
2:00 – Why phosphate is crucial in fertilizer.
3:30 – Phosphate sedimentary or igneous.
5:30 – Demand picture for phosphate.
7:30 – Phosphate mining supply countries.
10:00 – Overview of Ariannes Project
14:30 – Development Timeline
17:00 – 2019 Objectives.
Talking Points From This Week’s Episode
• Much of the world’s phosphate comes from high-risk countries.
• Arianne’s deposit in Canada is clean and high-grade.
• They are fully permitted and have
• They are advancing to commence construction.
Brian Ostroff is Chief Executive Officer and Director of Arianne Phosphate. He is a graduate of the University of Toronto (1986). In 1987, he joined RBC Dominion Securities where his focus was on smaller cap special situations as well as alternative investments. In 1999, Brian joined the M&A advisory firm Goodrich Capital where he was the Canadian managing partner overseeing mandates across a spectrum of industries with a focus on display technologies and mining. In 2004, Brian moved over to the trading side of the business where he spent a year as a proprietary trader with a large Canadian bank and subsequently on his own for four years before joining Windermere Capital as Managing Director. His area of focus is the junior and mid-tier mining sector. Mr. Ostroff has sat on Arianne Phosphate’s board since 2014. Arianne is traded on the TSX.V: DAN and the US OTC market.