Capabilities and Experience for Nitrogen

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Capabilities and Experience

for Nitrogen

CRU Consulting a division of CRU Group www.crugroup.com

United Kingdom

Chancery House, 53-64 Chancery Lane, London WC2A 1QS, UK Tel +44 20 7903 2000 Fax +44 20 7837 0976

China

517, Tower 2,

Bright China Chang An Building, 7 Jianguomennei Avenue, Beijing 100005, China

Tel: +86 10 6510 2206

Fax: +86 10 6510 2207

Chile

Augusto Leguía Norte, Nº 100 of.506, Las Condes, Santiago, Chile Tel +56 2 2231 3900 Fax +56 2 2231 4314

India

B-407, Level 4, Citi Point, JB Nagar, Andheri Kurla Road, Andheri (E),

Mumbai 400059 India

Tel +91 22 668 75757

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Long term macro-economic driven forecasts

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Comprehensive nutrient forecasts linking our models

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Global commodity market research and analysis

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In-depth knowledge of companies, plants and

technologies

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Experienced management consultants

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Extensive experience in analysing project risks

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Independent views for the decision making process

Industry knowledge

Strategic perspective

Robust methodology

Cost-effective

and practical

solutions for

specifi c client

needs

CRU Consulting provides an industry-focused

customised solution

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Extensive industry experience and research gives CRU a

strategic perspective on nitrogen

A team dedicated to analysis of the Fertilizer markets, since the mid-1980s, including two agricultural economists Specialists focused on the Urea and Ammonia markets as well as other key nitrogen products, developing CRU’s research and forecasting models on a global level.

A number of consultants with fertilizer experience across three practice areas:

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Valuation - mine valuation reports for

scoping, pre-feasibility and bankable feasibility studies; mergers and acquisitions; asset transfers

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Market decisions/Strategy

-general business strategy, growth and acquisitions, market entry business plan review; risk analysis; marketing and purchasing strategy public policy issues, logistical analysis

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Negotiation Support - assistance to

producers, consumers, traders, public authorities for contract review and negotiation, and risk assessment

CRU has offi ces in some of the largest fertilizer producing and consuming regions of the world – USA, India, China, Europe and Brazil

Beijing: CRU Consulting has three full time

consultants and two Fertilizer analysts

Mumbai: Three full time consultants and

one Fertilizer analyst

Santiago: Five full time consultants

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s leading range of fertilizer market for ecasts Potassium chloride Market Outlook New Forma t

Now includes:

two biannual reports; New crop demand analysis

transparent forecasting methodologies New long term price forecast to 2037

See inside for full details

www.crugroup.com Al | l | l Authorit A AuthoritA Authorit tive Ative A … From CRU’

s leading range of fertilizer market for ecasts

Potassium Market Outlook

www.crugroup.com AccurAte | AnAlyticA l | Authorit Ative … From CRU’

s leading range of fertilizer market for ecasts Phosphate rock Market Outlook New Forma t

Now includes:

Four quarterly reports New crop demand analysis

transparent forecasting methodologies New long term price forecast to 2037

www.crugroup.com Authorit A Authorit A Authorit tive Ative A … From CRU’

Phosphate _{Market Outlook}

Sulphuric Acid Market Outlook NEW FORMA T www.crugroup.com AccurAte | AnAlyticA l | Authorit Ative … From CRU’

Now includes:

Four quarterly reports New crop demand analysis

Transparent forecasting methodologies New long term price forecast to 2037

Market Outlook www.crugroup.com Authorit A Authorit A Authorit tive Ative A … From CRU’

www.crugroup.com

Nitrogen

Cost Data Ser vice

AccurAte

| ANAlyticA l | Authorit

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A powerful new generation of cost services fr om CRU

New 2012 Versio N

CRU has an in-depth understanding of the

key issues affecting the nitrogen industry

The fertilizer analysis team produces products which assist us

in making valuable and insightful recommendations

Market outlooks

Supply, demand, price and trade outlook for Ammonia and Urea (quarterly).

Publications include the most recent data.

Cost services

Our Fertilizer team’s Nitrogen cost model allows us to benchmark new projects

against a broad cross section of industry competitors.

Special reports

The Fertilizer team provides a diverse set of periodic outlook reports covering

additional nitrogen products such as: UAN, Explosive Grade Ammonium Nitrate,

Ammonium Nitrate and Ammonium Sulphate.

Product marketability and market decisions

CRU Consulting can synthesize data from the Fertilizer analysis team into bespoke

client reports that provide clients with a clear strategy for market entry. We can also

provide analysis of the impact of projects on the global market, as well as highlight

major risks and opportunities.

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We have a global client base...

Market Decisions – CRU advised a large South American refi ning company on the sulphur,

sulphuric acid, and ammonium sulphate markets.

Strategy – A large trading house asked CRU Consulting to look at the market for Ukrainian Nitrogen exports

Valuation – CRU Consulting completed a feasibility study for the construction of a new

ammonia, urea complex in Bahrain and was asked to produce a fi nancial model with specifi c

gas cost and capacity parameters and provide our latest view on the outlook for Urea

Market Decisions – A global trading house looking to explore investment opportunities in the Potash, Urea

and Phosphates markets

Valuation – CRU Consulting was approached by an Australian company looking at the potential to develop a new explosive grade

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...and we have long experience in completing urea and

ammonia projects

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CRU Consulting completed a feasibility study for the construction of a new ammonia, urea complex in Bahrain. The client came back

to CRU with a request to update the fi nancial model with specifi c gas cost and capacity parameters and provide CRU’s latest view

on the outlook for Urea.

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A major fi nancial institution required an independent valuation of an ammonia plant and an assessment of its position on the global

cost curve. CRU Consulting provided a detailed fi nancial model up to the level of free cash fl ow and an accompanying written report.

The model took into account known gas supply contracts and marketing agreements as well as operating cost information from

CRU’s Nitrogen Cost Model. CRU Consulting also provided valuation confi dence levels benchmarking the plant with multiple global

cost curves, highlighting the plants site costs relative to its competition.

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A client recently acquired equity and marketing rights to several nitrogen plants in the Ukraine and required a power point

presentation for their Board summarizing the export markets for the products produced by the new acquisitions. CRU Consulting

provided a global overview of each product, a supply demand forecast, and outlined the current markets for Ukrainian exports and

competing exporters. This was used as a reference point for their marketing strategy going forward.

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A company set up to develop a phosphate deposit asked CRU Consulting to review the potential to either export the rock or upgrade

it to DAP/MAP/TSP for export. This report included a market overview and price forecast for the required raw materials ammonia

and sulphur.

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Meet our high calibre team

■ Steve Markey, Managing Consultant, London, UK

Central to our fertilizer consultancy team is Steve Markey. Steve is responsible for senior project input into strategic and valuation projects involving all areas of the fertilizer and chemicals business. Steve brings over 30 years experience from the fertilizer industry, having been engaged in a variety of positions in sales and marketing, supply chain management, product sourcing and risk management.

■ Sheena Patel, Senior Consultant, London, UK

Sheena is a Fertilizer Desk Manager for CRU Consulting, working closely with Steve on all fertilizer consultancy projects. In CRU Consulting she has managed a number of Valuation and Strategy projects on Phosphates, Sulphur, Ammonia and Potash. Prior to joining CRU Consulting, Sheena spent fi ve years working in CRU Analysis on the research and management of products.

■ David Clark, Senior Consultant, London, UK

David recently joined CRU Consulting after completion of a post graduate degree in business. Prior to starting at CRU, David worked as an engineer in the aluminium smelting industry, focusing on the design and implementations of collector bars and sidewall linings in reductions cells. David then worked as a consultant to the natural resources industry in Australia on energy effi ciency and carbon mitigation, gaining exposure to base metals, coal and natural gas industries.

■ Alistair Wallace, Senior Consultant, London, UK

Alistair Wallace has spent the last seven years analysing global fertilizer markets. Alistair leads CRU’s nitrogen analysis team, managing the Market Outlook for Ammonia and Urea; the groups nitrogen cost work and gas price forecasting and multi-client products covering the nitrates and ammonium sulphate markets. Prior to joining CRU, Alistair spent over six years as a Senior Analyst at Integer Research.

■ Lars Taarland, Senior Markets Editor

Lars has been working for CRU since 2001. He is the author of the FW+ Short Term Urea Forecasts, the weekly FW Markets Reports for urea and nitrates and also contributes to CRU reports on ammonia. Lars has previously worked in the fertilizer industry with Norsk Hydro (Yara ASA) in the early 1970s, as well as at numerous international trading companies.

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Capabilities and Experience for Nitrogen