Bought a small parcel today - I'm in!I've started doing more...

Bought a small parcel today - I'm in!

I've started doing more research - I could not find any financial information published by SHP but I found the reason why in their annual report. "Under current ASX rules, the detailed results from the studies cannot be publicly released at the current time. Only once the resource has been upgraded to a JORC Measured and Indicated level a public release of the production and financial details will be possible."

So they have completed scoping studies for they 4 projects but are unable to disclose the information at present. However they have shared some high level expectations / targets in their corporate presentation back in September 2020.



In the same presentation they share their aspiration for their costs:



And they also highlighted their geographical advantage in the European market which is now compounded by the very unfortunate events in the Ukraine.



To get some more information on project finance, I looked at other projects in development and found the Khemisset project by Emerson PLC (LSE:EML) based in Morocco.

They claim they are on the low CAPEX curve due to the shallow deposit and existing infrastructure so I think one could use the numbers from their feasibility study to get an order of magnitude for the Ohmgebirge project. As per the first picture in this post, SHP is probably targeting a facility between 500 kT pa and 1,000 kT pa.

Which is where we can draw a (risky?) comparison with Emerson who provides a summary of their key assumptions and results for a 735 kT pa MOP plant and they are fantastic!


I would be very happy if our study returned similar results and SHP location is even more enviable. The recent appointment of the Regional Director will go a long way in smoothing the implementation phase of the project so I think the main challenge for us will be to fund the project. Raising enough funds at the current market capitalisation will be a challenge and management will need to find other ways to sort out finance...This could include financial support from the UE, a strategic partner, a JV...?

Emerson also provides more detail on CAPEX vs capacity (as their project is multi stage). Here is the link to their presentation.



Exciting times ahead - the results from the drilling will unlock the news flow and no doubt the share price will follow.