Agrimin and Newhaul announce potash joint venture, page-8

The reason I got behind this company is 1. Long-term potash thematic 2. Unique scale of the project.

I think the company offers high potential returns but that comes with some key risks 1. technical 2. funding.

The company has done a good job proving up the project from a technical perspective but I am worried about the funding side of things.

James3600 you are correct that they could project finance the development with a 70/30 debt/equity split, however project financing facilities become quite punitive beyond a 50/50 debt/equity split (i.e. cash sweeps/lockups, high interest and fees and convertibles). Project finance debt providers, like Taurus for example, are notorious for providing extremely expensive project financing facilities which can strangle a company's shareholder returns over the medium-term. Because of this I would like to see at least $300m of the project funded by equity (even at say a 20% discount). Having Aus Super as a cornerstone investor may help to facilitate such a raising. Ultimately this will enable a reasonably priced debt facility to be put in place.

This key to facilitating a $300m+ equity raise is to get the sp up over the next 12-months to reduce dilution. Hopefully can get it back up towards a $1/sh!