KP2 (ASX) KP2 Discussion

Originally posted by Quest09: ↑

This announcement is massive news in my opinion:

"Kore Potash and PowerChina commenced further detailed negotiation on the EPC proposal and draft EPC contract. The Company met senior PowerChina officials in Beijing in May 2024 and again in Dubai in July 2024, where both parties satisfactorily resolved all outstanding commercial points. The agreements are now with the respective legal counsels of both parties to finalise the agreements. When the agreements are in final state Kore Potash and PowerChina will work towards fixing a date for signing ceremony with the Minister of Mines and his colleagues of the Republic of Congo in Brazzaville. Following the signing ceremony relevant details of the agreement will be made public."

IMO, the above statement within the announcement strongly indicates that a contract signing event is highly likely to take place in the near future. In which case, this significantly de-risks a large portion of the Kola Mine development.

As we have been previously told, and as has been re-stated within this latest announcement "The financing parties of the Consortium have again reinforced their ongoing strong interest in financing Kola and await the finalisation of the EPC contract terms".........and......"The Consortium has advised that the financing proposal for the total construction cost of Kola will be provided to the Company within six weeks of the execution of the EPC Contract."

Kola Mine Financial MetricsThis is a massive project:

KP2's Kola mine is a high grade resource with a production cost which is among the lowest in the industry (USD $102/t MoP)

Project NPV is pretty spectacular IMO:

At an MoP price of USD $360/t, project NPV is USD $1.6 billion dollars (~AUD $2.5 billion dollars).

At an MoP price of USD $500/t, project NPV is USD $3.3 billion dollars (~AUD $5 billion dollars).

IMO, KP2 is significantly undervalued and has some significant upside which is soon to be realised.

All in my opinion (IMO). DYOR.

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Originally posted by Quest09: ↑

So i have a possible scenario on how we could get the news about a successful signing of the EPC contract.

Im thinking, out of the blue, we will probably get a Trading Halt announcement late in the week (possibly a Thursday or Friday in the coming weeks ahead). The trading halt will state that trading will resume early in the following week (a Monday or Tuesday) pending the release of a price sensitive announcement.

Im thinking that the signing ceremony will then occur over the weekend during the trading halt (we may even see news of the signing ceremony in the media over that weekend), and then on the following Monday/Tuesday the "EPC signing announcement" will be officially released to the market and trading will resume.

If this is how it plays out, then the question is, on which Thursday/Friday will the Trading Halt be released.? This week.? Next week.? The week after.?

GLTAH.

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Originally posted by Quest09: ↑

KP2's Kola Project - Project Details

The Sintoukola Potash Project area contains the Kola sylvinite and carnallite deposits, DX sylvinite deposits and Dougou carnallite deposits.
These deposits are all situated within the Kola and Dougou Mining Licenses.

The Kola sylvinite deposit has a Mineral Resource of 848 Mt with an average grade of 34.8% KCl at an average depth of approximately 250 metres below the surface. The Kola DFS determined Proved and Probable Ore Reserves totaling 152.4 Mt with an average grade of 32.5% KCl.

Kola Project Overview
Once operational, Kola is anticipated to be one of the lowest cost MoP producers globally.

Project Net Present Value

At an MoP price of USD $360/t, project NPV is USD $1.6 billion dollars (~ AUD $2.5 billion dollars).

At an Mop price of USD $500/t, project NPV is USD $3.3 billion dollars (~ AUD $ 5 billion dollars).

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Another aspect of KP2's future potential (and hence KP2's future market cap) which is often overlooked has been described within this below statement taken from the "Kore Potash Annual Report for the Financial Year Ended 31 December 2023". The statement is as follows:

"The Sintoukola Potash Project also has district-scale development potential with over 6 billion tonnes of potash mineral resources located approximately 35 kilometres from the coast".

So, the current Kola Project DFS determined Proved and Probable Ore Reserves totaling 152.4 million tonnes, and hence has a project NPV in the billions of dollars with this defined resource alone.................but just imagine the potential future value of KP2 with consideration to the "district-scale development potential with over 6 billion tonnes of potash"