I like what I'm reading on lower operating costs;
"The simplified flowsheet is also expected to deliver lower Operating Expenses (OPEX) due to lower energy, maintenance, and fixed cost requirements."
AND;
"The Plant has significant OPEX and production advantages to Futila, the previous site under consideration (and upon which the DFS was based), including reduced distance for ore haulage from Cácata to the plant; reduced distance for product delivery from the plant to the Port of Cabinda; reduced truck traffic through the city of Cabinda; and reduced costs to hold and maintain site."
So lower plant operating costs, lower transport costs and lower site costs relative to DFS. That means more profit margin!
On the green ammonia;
"The MOU confirms a formal resolution received in late May 2022 outlining the key commercial parameters of the power supply as the basis for a Market Assessment Study, which includes an Initial 100MW at $US0.004 (0.4c) kilowatt hour for 5 years then $US0.008c (0.8c) kilowatt hour for 20 years and an additional 100MW at $US0.015 (1.5c) kilowatt hour for 25 years."
That all averages out to 1.1c/kwh which is extremely low cost but the first 5 years at just a tiny 0.4 cent per kw hour is going to mean even bigger margins over that FIRST FIVE years.
And as if the very low green electricity cost wasn't enough of an advantage ("Initial desktop work undertaken by the Company highlights the potential for the Capanda Green Ammonia Project to produce Ammonia Nitrate at a cost competitive unit price vs. traditional grey (fossil fuel), blue (fossil fuel plus carbon capture) and turquoise (methane) Hydrogen-Ammonia"), there is also this very large advantage;
"Product pricing is expected to attract an inland Africa premium of up to $US200/t over free on board (FOB) prices by eliminating marine freight and insurance, clearing and forwarding costs, bagging costs and significant inland transport costs."
This is also very good news;
"The Technical Study was expected to take 6 months and will include plant design, CAPEX and OPEX evaluation and OPEX inputs, including hydroelectric consumption."That sounds like we might see capex and opex and the market can make assumptions on the ammonia nitrate price which means we can now start to get a much better idea on what sort of revenue and profits will be generated and what this project could be worth. If the market can finally get a good idea on what this project could be worth, hopefully we start to see some value for it reflected in the sp.
Also, with that much info in the tech study, the scoping study shouldn't be far off either - another announcement to look forward to near term.
"The Technical Study results will form the basis for a Scoping Study to be undertaken immediately post completion of the Technical Study."
If the phosphate fertiliser and green ammonia didn't already offer enough multiples of upside, I like the sound of the following. It looks like they are already working on the LFP opportunity.
"The last six months of 2022 saw Minbos seize amyriad of opportunities that Angola presents. TheCompany is now firmly ensconced as more thanjust a phosphate explorer, developer and near termproducer, with development projects thatnow span agriculture, fertilizers, mining explosives,carbon-abatement and LFP battery-gradephosphate paste.Some of this growth - green ammonia,explosives and carbon abatement - has comeorganically, a positive externality from being agood development partner with the AngolanGovernment. However, opportunities in the batterymetals space have come from new relationshipsborn from the use of phosphate in battery metals.Phosphate paste is a critical material for theproduction of Lithium-Iron-Phosphate batteries,with our interest in the product driven by ourphosphate production profile with assistance fromour new partners who invested in Minbos in mid-2022, corner-stoning our $25 million placement andbringing a wealth of experience in thebattery space."
Looking forward to hearing more on what is planned for this LFP project.
So much news to look forward too! It's going to be a very exciting year and I feel confident that we should see a much higher sp by the end of this year.
To help MNB along, check out what the US market did while we slept on Friday night. A big 1.4% gain. The 200DMA has now turned up, the golden cross is being reinforced and the price action is getting more bullish.
The reason for this bullishness? I think it's this (chart below). The US inflation rate just fell again (as it did this week in Australia) and is looking like it's falling quite convincingly now. That not only helps stock valuations but if it keeps falling, rates can stop rising and that stops the growth of losses on US regional bank's books. If rates can begin to fall, those losses on the books of those banks will start to evaporate.
https://www.bls.gov/opub/ted/2023/consumer-price-index-up-0-4-percent-over-the-month-6-0-percent-over-the-year-in-february-2023.htmNow for my favourite chart of all. MNB 2 year chart.
