MICROBE ORGANIC FARMING BUSINESS · PDF file3 MICROBE ORGANIC FARMING 1. EXECUTIVE SUMMARY • Bio World has developed Microbe Organic Farming Technology which can provide the following

Minerals & Energy

MICROBE ORGANIC FARMING

BUSINESS OPPORTUNITY

www.primaresources.com.au

BIO WORLD Pty Ltd Prima Resources Pty Ltd Business Associates: Malcolm Borgward Tracy Corbin Jenna Shenton

CEO: Michael Shenton Email: [email protected] Mob No : +61 407 919 077

September 2015

http://www.primaresources.com.au/

mailto:[email protected]

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Overview Presenter: Michael Shenton CEO

Table of Contents

1. Executive Summary

2. Business Benefits

3. Technology

4. Cost Analysis

5. Environmental Benefits

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1. EXECUTIVE SUMMARY • Bio World has developed Microbe Organic Farming Technology

which can provide the following Benefits: • Increases Crop Yields up to a factor of Two (100% Increase)

( Exact improvement depends on Type of Crop/Location) • Provides Farmers with a cost effective and convenient system to

increase crop production - $50 / Ha • Safe and Sustainable System of Farming • Reduces Irrigation Water Usage • Improves soil structure and ability of plants to breathe and feed • Provides food which is grown naturally without the addition of

chemicals • Eliminates Environmental Degradation by using natural growing

processes and eliminates compaction and damage to soil. • Eliminates pollution to water and rivers be eliminating chemicals

and improving surface water runoff

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1. Business Opportunity Capital Cost : $2.0 Million Operating Capital Reqd: $2.5 Million ( First 2 Yrs Ops) Annual Profit: $2.0 Million Payback Period less than 5 yrs ( due to farmers having 1 yr credit)

2. Current Fertiliser Sales - 6 million Tonnes per Yr (Australia) Current Fertiliser Sales - $2 Billion per Yr Current Fertiliser Market Growth – 3.0 % per Yr

3. If MOF accessed 1 % of Current Fertiliser Market (Australia) MOF possible Annual Sales - $20 Million per Yr MOF possible Annual Profit - $11 Million per Yr

4. Opportunities in International Markets Global Current Fertiliser Sales – 180 million Tonnes per Yr Global Current Fertiliser Market Growth – 2.4 % per Yr Global Fertiliser Market Sales - $150 Billion If MOF accessed 1 % Global Market Sales - $1.5 Billion ( Sales)


2. Business benefits

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1. Opportunity to possibly increase Crop Yields by 100% 2. Cost of MOF Fertiliser $50 / Ha 3. Opportunity to reduce starvation and food dependency 4. Safe and Sustainable System of Farming 5. Provides non-chemical Treatment to improve crop production 6. Convenient delivery system 7. Reduced environmental damage to the land 8. Improved Soil Structure gives open/increased pores for aeration and water delivery to plant roots



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Typical Benefits from Microbe Organic Farming Possible to double the yield of crop compared to normal methods Previous farm trials undertaken at Williams WA in the same field The field was wheat sowed with alternate strips of MOF Crop and Normal Crop



MOF Crop Normal Crop MOF Crop Normal Crop

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Typical Benefits from Microbe Organic Farming Example Using Wheat Crop Consider: Microbe Organic Farming - spread at 100 Kg/Ha Urea - spread at 150 Kg/Ha Specialist Nitrogen 30% + Urea 70% - spread at 100Kg/Ha



Fertiliser Type Cost $/Ha Yield T/Ha

Estd Profit

S/Ha

Estd

Increase

Profit $/Ha

Estd Increase

Profit

Percent

MOF 50 6,000 1,350 648 92.4%

Urea 82 3,118 701 Baseline Baseline

Nitrogen + Urea 84 3,607 811 110 15.7%

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2. Business benefits Percent %

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Using microbes to boost plant production or protect plants from pests is not a new idea. Indeed, traditional agricultural practices like crop rotation or co-cultivation of legumes with non-leguminous plants have been in use for millennia. There is even a small, but significant market for biological crop treatments. Biopesticides, a category that includes biological agents used as insecticides, herbicides, pesticides, and fungicides have been estimated to constitute a $2.1 billion per year industry — about 5% of the $44 billion per year chemical pesticide industry. A little over half of that market is made up of live microbes; other types of biopesticides include non-microbial agents like insects and biologically-derived compounds like pheromones. The global market for chemical fertilizers is on the order of $150 billion per year; microbial approaches could potentially substitute for or augment this market.

Report : www.Feed The World.info Supported by World Health Organisation

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3. Technology

FEEDSTOCK STORAGE BALL MILL MICROBE TANK

BAGGING MACHINE PELLETISER DRYER / HEATER

FEEDSTOCK

DELIVERY

Minerals & Energy 11


4. Cost Analysis

Microbe Organic Farming 5 Yr Financial Plan Summary 2015 to 2019

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2015-2019

Total Total Total Total Total Total

MOF Production (Tonnes)( $116 /Tonne) 9600 9600 9600 9600 9600 48000

Income ( 1 x Field = 4,000 Ha )

No of Bulk Sales Microbes ( 400

Tonnes/Field=$50/Ha) 18 24 24 24 24 48

Income - Bulk Sales of Microbes- $500 /Tonne $0 $3,600,000 $4,800,000 $4,800,000 $4,800,000 $22,800,000

Total Income $0 $3,600,000 $4,800,000 $4,800,000 $4,800,000 $22,800,000

Capital / Start up Costs $2.0 Million

Monthly Repayments 5 Yrs at 5% Interest $500,000 $500,000 $500,000 $500,000 $500,000 $2,500,000

Outgoings

MOF Production Costs $1,113,600 $1,113,600 $1,113,600 $1,113,600 $1,113,600 $5,568,000

Total Outgoings $1,431,934 $1,431,934 $1,431,934 $1,431,934 $1,431,934 $7,159,671

Actual Profit Before Tax -$1,931,934 $1,668,066 $2,868,066 $2,868,066 $2,868,066 $13,140,329

Cumulative Cash Flow -$1,931,934 -$263,868 $2,604,197 $5,472,263 $8,798,662 $13,140,329

Actual Margin Before Tax 43.84% 58.36% 58.36% 58.73% 59.75% 57.63%

Tax -$579,580 $500,420 $860,420 $860,420 $860,420 $3,942,099

Actual Profit After TaxTax -$1,352,354 $1,167,646 $2,007,646 $2,007,646 $2,007,646 $9,198,230

Minerals & Energy 12


4. Cost Analysis

Description

Capital Costs Amount $

Front End Loader 100,000

Conveyors 70,000

Ball Mill 100,000

Storage Silos (3) 75,000

MOF Tank 25,000

Storage Tank 25,000

Heater/ Dryer 100,000

Pelletiser 100,000

Bag Filling Station 100,000

Truck/Forklift 150,000

Pallets 100,000

Bags 100,000

Contingency 209,000

TOTAL CAPITAL COSTS 1,254,000

Start Up Costs Amount $

Company Formation 10,000

Insurances 10,000

Commercial Property 20,000

Office Furniture 10,000

Computers/Phones/etc 10,000

Contingency 12,000

TOTAL START UP COSTS 72,000

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4. Cost Analysis

•Initial Farm Trials Completed •Engage JV Funding Partners •Carryout Detailed Feasibility Study •List Company on Australian Stock Exchange •Discussions in hand with Curtin University for Research Trials •Discussions in hand with WA Dept of Agriculture •Discussions in hand with CSIRO •Lease Industrial Premises •Assemble Production Plant •Start Production and Sales of Microbes Fertiliser •Investigate Global Markets and Overseas Exports

Company Strategy

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1. Eliminates Chemical Run-off and eliminates pollution of water table, streams and rivers. 2. Eliminates Algal Bloom and destruction of fish habitat in Rivers and Estuaries 2. Safe and Sustainable System of Farming 3. Provides non-chemical Treatment to improve crop production 4. Reduced environmental damage to the land 5. Improved Soil Structure gives open/increased pores for aeration and water delivery to plant roots 6. Improves impoverished soils and sands Turns unproductive waste land into productive farmland 7. Eliminates Environmental Degradation by using natural growing processes and eliminates compaction and damage to soil.


5. Environmental benefits

Minerals & Energy

MICROBE ORGANIC FARMING TECHNOLOGY

BIO WORLD PTY LTD PRIMA RESOURCES PTY LTD

BUSINESS ASSOCIATE:

MALCOLM BORGWARD

MAY 2015

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BIO WORLD PTY LTD May 2015

CEO: Michael Shenton

Documents

MICROBE ORGANIC FARMING BUSINESS · PDF file3 MICROBE ORGANIC FARMING 1. EXECUTIVE SUMMARY • Bio World has developed Microbe Organic Farming Technology which can provide the following