When we hit 19 cents on 25/10/21 this was the status of the company:
In Dec 2020 we had a MOU with the IFDC to develop fertiliser in Angola
At that stage we were planning to produce Enhanced Phosphate rock EPR
In March 2021 we receive the mining license, 35 years renewable, over 85 sq km
In July 2021 we paid a A$1.5m deposit to FEECO for fabrication & manufacture of the Cabinda Phosphate Plant, locking in the price.
(which we now have insured for $21m)
In Oct 2021 LOI with Govt to develop green ammonia, govt agreed to provide land for the project inc hydro power.
That was when the SP peaked
In summary we had plans to produce phosphate (EPR) & green Ammonia, we had a mining license & had paid a deposit on the long lead plant equipment.
However we had no DFS, no power purchase agreement for the GA, no imminent plans to construct a plant, no finance
Admittedly less SOI back then (issued 60m shares in Dec 2021 + 227m in July 2022, + the recent placement), however it was in the middle of covid and fertiliser prices did leap after the Ukraine war.
Compare 25/10/21 at 19c to today
- We have a DFS
- We have fully paid for that FEECO equipment- We have a power purchase agreement for GA at incredibly cheap prices
- We have very generous tax concessions
- We are fully permitted
- We have a Phosphate plant site at cheap rent
- We have the Carrinho offtake MOU
- We have a GA site at cheap rent - even Andrew Forest wanted a bit of it
- We have full plans for the phosphate plant, can start construction within 2 weeks
- We have US$14m IDC funding
- We are in the final stages of securing the remaining finance
- We have a MOU for a BOO GA modular plant
- We have 5 years of very successful plant trials
- We have marketed to numerous larger farms such as Biocom
- We have paid trolls trying their best to keep a lid on the SP for their employers.
I’ve probably missed a few milestones, however IMO the company is in a far better position today than it was back in October 2021.
It’s funny, when the SP was 5c potential buyers (myself included) thought I’m not going to pay 5.2c when I should be able to get it for 5c, at 6.4c buyers think I’m not going to pay 6.7c when I can buy it for 6.4c. My point, one of these CPs can be satisfied at any time (probably announced in the morning pre-open due to the time zone change), IMO satisfying any one of the CPs will push up the SP & IMO one CP will lead to the others very quickly - which leads to construction and very good profit margins.
