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 Metrics
This 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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