Numis Broker report 09/01/2020 - target 70 pence

In our view, Anglo American's potential offer for Sirius Minerals, which owns the
Woodsmith project in North Yorkshire, highlights the potential for consolidation in
the potash space and the demand for world-class projects, of which Colluli is one.
In contrast to Woodsmith, Colluli is near surface, with lower capital intensity and
produces a product for which there is an established global market and pricing
mechanism. We retain a Buy recommendation for Danakali and a target price of 70p
based on 0.6x NAV, with the main upcoming catalysts being finalizing the project
funding package and commencing development. DNK achieved a number of key
milestones in 2019, securing both project debt and a strategic investor to underpin
the development of Colluli.