Ann: Quarterly Activities Report and Appendix 5B, page-2

This is a high quality offtake partner with a Sovereign Guarantee supporting big expansion plans. Expansion plans which will directly expand demand for our phosphate without it costing us a cent.

"Carrinho is backed by a Sovereign Guarantee to support the development of its facility, which is currently undergoing a US$365Mphase 3 expansion. Carrinho will also provide mall holder farmers with Minbos fertilizer and training, which will enhance grain production and therefore inputs for Carrinho’s processing facility. Over 90% of Angolan farms are less than 2 hectares in size and Carrinho is targeting to work with 2 million smallholder farmers by 2030."

While we haven't heard of an official start to the PFS for the green ammonia, it's good to see that work has begun on the environmental study which is probably in the critical time path of the study.
Also nice to be reminded of our 60 year lease at a cost of just US$300 per year!

"In early August, the Company signed a 60-year lease for the site of the zero-carbon Capanda Green Ammonia Project, within the Capanda Agro-Industrial Hub (Fig. 3) and within 5km of the Capanda Hydroelectric power station. Highlighting the support for the Project within Angola, the 60-year lease was signed at the concessional rate of US$300per annum."

P4 is still looking very promising too. "has seen the Company approached by several potential partners from the anode, cathode and industrial chemical industries interested in producing the P4 product in Angola."

"P4 is an essential critical mineral in the battery materials supply chain, required to produce lithium hexafluorophosphate (LiPF6), the electrolyte used in lithium-ion batteries. However, exploding growth in the battery sector is putting pressure on P4supply to the agricultural sector. P4 is on the EU Critical Raw Materials List (CRM) as“Phosphorus”, in addition to “Phosphate Rock” with total net EU consumption of phosphorus in ‘P4 and derivatives’ estimated at 100-130kt p.a.Europe has no P4 production and is 100% dependent on imports from four countries(China, Kazakhstan, Vietnam, USA) which produce P4, with production and exports highly dependent on variable factors such as local electricity prices, export policies or up and downstream integration.The European Commission estimates that there are only ~10-30 P4 plants operating globally today. Angola’s competitive commercial electricity tariff, economic free zones and proximity to European markets has seen the Company approached by several potential partners from the anode, cathode and industrial chemical industries interested in producing the P4 product in Angola."


Minbos is looking like it's going to be a powerhouse diversified mid cap company over the next several years and the phosphate fertiliser will be a great start to fund the other two projects and make it all happen.
$8.8mill cash on hand gives us a nice cash buffer while waiting on that last US$12mill for capex.