Ann: Cabinda Phosphate Finance and Sales Update, page-764

Minbos - The Facts

Updated to reflect last asx announcement

There are 2 Down-rampers on this forum who post a lot of unsubstantiated lies about MNB

Throw enough mud, some sticks even if untrue.

They have been proven to be Bots, sometimes giving a 2 paragraph reply to a post within 1-2 mins

Such Bots are deployed for a reason, they want the share price to remain low, stop people from buying, encourage selling - you don’t need to be a brain surgeon to work out why they want this.

This post is purely factual based as opposed to the above, I’ve put references in to substantiate - something they won’t do

If any one with a buy/held disclosure wants to add to the post or repost it, you’re most welcome, in fact encouraged !!

Market Cap ~ $39m, Cash $12.5m (Mar 31st) US$1.18m received post Mar 31st (March Quarterly)

Minbos is a fully permitted ASX listed company with a JORC Resource/Reserve of 8.4mt @20.4% / 4.7mt @30.1% using a 19% cutoff, it is significantly higher with a lower cutoff. Unlike most Phosphate Resources, this does not require concentration (by flotation). (asx 23/11/22 and 17/10/22 )

Minbos is currently constructing it’s Processing Plant in Cabinda, Angola. It is only 16km from Port & is a simple flowsheet of crushing the drying the phosphate, unlike most phosphate companies because of the high % reserve/resource no concentration is needed. Construction started last December and is scheduled to take 8 months including 1 month commissioning. Stage 1 is based on 187k tonnes pa, stage 2 expansion at an extra capex cost of < $4m brings it up to 400kt pa. The company has indicated it will build to stage 2 expansion, but has yet to formalise this. (asx 5/12/24 )

Construction is being carried out under contract by a well respected Portugese company Grupo Arliz https://www.grupoarliz.pt/en/grupo-arliz-en/

You can view the progress looking at posts on Minbos’ X https://x.com/MinbosResources

The DFS showed a NPV of US$203.2m for our 85% ownership. Since the DFS the flow sheet has been simplified, the production site relocated closer to mine + port, and capex reduced. The price of TSP (which our pricing is based on) is also higher than the DFS figure. (asx 17/10/22 pricing https://businessanalytiq.com/procurementanalytics/index/triple-superphosphate-tsp-price-index/#google_vignette

Minbos has already paid for, manufactured & stored on site the majority of the processing equipment. This included over 26 (40’) shipping containers and 3 (20”) shipping containers plus several items too large to fit in a shipping container such as the rotary dryers. As at October 31 2024 US$12.5m around A$20m has been spent (Annual report 2024 + Sept’24 Qtly )

The Sovereign Wealth Fund of Angola (SWF) invested in Minbos to the tune of US$10m, we have received the 1st 2 tranches. We have now received last tranche of US$1.17m which completes their US$10m investment. (asx 7/3/25 + 30/4/25)

Minbos has a signed debt facility (contract) with IDC for US$14m. It has one CP outstanding before funds can be drawn down which is an offtake. The latest asx update indicates IDC are updating the CP in line with the Company’s sales and marketing strategy to diversify away from a single customer strategy to a broad base of export and domestic sales,

with the 120,000ktpa expected to be satisfied from a mix of export markets and domestic distributors and food aggregators. (asx 15/5/25 )

At the AGM the CEO said they have LOI’s from local + export for a minimum of 120t which satisfies the IDC’s CP.

Minbos have signed a revised Term Sheet with Angola’s largest bank, Bank BAI for US$12m at 7.5% + 2.5% for a loan guarantee provided by FGC on up to 80% of the loan. FGC loan guarantee was the only outstanding CP, but have now agreed to provide the guarantee. (asx 15/5/25) The only outstanding item to complete to access the funds is BAI’s desire for Soul Rock (Minbos’ Angolan subsidiary) to restructure from a private company to a public company (unlisted) This is purely administrative. At the AGM the CEO actually said the BAI are pushing Minbos to complete their side of what is required to change this structure.

Once producing we will have a monopoly on Phosphate sales, by Presidential Decree no. 213/23 local businesses have to buy from local vendors, not import, presently Angola imports 100% of fertilizers. (asx 15/4/24 )

Minbos has a MoU with Foskor, A South African company for the possible export of 200,000t pa, other export opportunities include Brazil (asx 1/7/24 )

Minbos is a Mauritius based company, tax is minimal there, they also have some very generous tax concessions in Angola, tax paid will be minimal, though not paying any Australian taxes, any dividends will be unfranked. ( asx 9/1/23)

We have done 5 years of growing trials, the acidic soils of Angola require phosphate before other eg nitrogen based fertilisers will work. ( asx many announcements)

Pricing is based on TSP, with the present TSP price of $477/t we’d receive US$332/t (asx DFS, Carrinho MOU)

Angola was/is an oil rich country, prior to that agriculture was prominent industry, the Government wants to prioritise agriculture, especially considering they import most of their food, demographically they have a young rapidly growing population.

Green Ammonia business. The Angolan Government has leased a site to us for 60 years at $300 pa (yes thas right no k after the 300) it is within 5km of the Capanda Hydro plant (ASX 1/8/23), where they have a power purchase agreement of 0.4 cents for 100MW for 1st 5 years then 0.8c for 20 years, an additional 100mw at 1.5c a KWH for 25 years. This is the cheapest electricity in the World and Green Ammonia’s main cost is electricity (asx 14/12/22)

Minbos have a MoU with Talus who provide a BOO (Build Own Operate) type of modular Green Ammonia (no capex to us) plant that can be used as direct application or further processed (asx 27/5/24)