I am eagerly awaiting upcoming funding news, and the Carrinho Offtake.
In the fertiliser industry, part of pricing is often determined by the "relative agronomic effectiveness" (RAE). RAE helps determine how effective a new or alternative fertilizer is compared to a standard fertilizer. A higher RAE value indicates that the test fertilizer is more effective in enhancing crop yield compared to the reference fertilizer, while a lower RAE value suggests less effectiveness. I believe from the DFS our phosphate was set as 92% of RAE of TSP, which was one of the factors to help determine the pricing. Since then the company has released many more field trials which could add value to our product.
From 3-oct announcement "Minbos commercial offtake agreements are tied to field trial performance, with these latest results bolstering the Company’s confidence that forward orders will be filled for the Company’s first production run" and "With field trials confirming “Prosper Primeiro” as a high RAE (Relative Agronomic Effect) fertilizer, underpinning its pricing against bulk Triple Super Phosphate (TSP)"
What I am particularly interested to see in the off-take is whether the residual effect of Prosper Primeiro, which has only recently been realised (30th January announcement), will be taken into consideration in the product pricing. From that announcement: "Especially impressive for field trial partners has been the observed “repeated effect” with crops planted in plots now in the second year after the initial application of Minbos fertiliser performing well above expectations", I like how they mention it was specifically interesting for "field trial partners", I wonder if a product that continues to benefit crop growth in years two and three (resulting in less fertiliser use in later years) could come with a higher price tag?
Even is the products price is in expectations with what was in the DFS, the company will still be highly profitable if they make it to production, anything above will be a massive bonus.
MNB Price at posting:
6.7¢ Sentiment: Buy Disclosure: Held
