The Eritrean govt will need a more realistic and timely approach if the Coluli Project is to progress.
The IRR on ESS1 was 40.6% pre tax, interest and depreciation. Now it's 16.1% post tax, lower potash price, 100% funding (50% return), etc - a big gap even comparing apples with oranges. It would help if the CEO gave comparable IRR figures. 16.1% IRR is much too low for the capital needed from a third party, and inherent risk.
The comment "the rate of expenditure will be modified while discussions with ENAMCO continue" suggest STB are not confident of a sensible outcome.
I am no longer foolish enough or brave enough to invest in any more African projects.
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