Just after the market closed, Argonaut released a 21 page client note after returning from their site visit.
They said they wouldn't release financial forecasts ahead of the DFS so they might update later to include financial forecasts. It was a positive report mainly highlighting the excellent growth opportunities for the Angolan agricultural sector with the help of the IFDC and the use of locally produced fertiliser.
A few quotes from the report;
"Two key expat personnel, met on trip are located in Cabinda. German national, Thomas Bruckner has vast experience in establishing logistics operations and Portuguese national, Mario Vigario is anexperienced project manager with 10 years experience in Angola, in particular on the phosphate rock project."
"Job interviews (fitters, mechanics etc.) are currently underway with experienced workforce available due to Cabinda’s long exposure to the oil & gas industry."
"Discussions with government on electricity tariff ongoing which will then enable Minbos to advance discussions with ammonia technology suppliers."
"Biocom provides some colour on the agricultural opportunity that exists in Angola. 10 years ago the project didn’t exist. Plantation plans on developing 38,500 ha of sugar cane of which 26,000 ha is currently planted and developed. It is expected to be at full capacity by 2027"
"Fertilizer usage totals 6,000tpa (Minbos equiv. 10,000tpa). Biocom indicated a willingness to test Minbos product due to current fertilizer issues and are keen to support emerging local industries."
"Malange Province where facilities are located consist of miles and miles of open, unoccupied land that is ideal for agriculture"
"IFDC are basically a non-government organisation with a total budget of US$75m pa, 85% funded by both the USA and Netherlands governments.IFDC arrange guarantees through agricultural dealers and aggregators so as farmers can obtain products (ie. fertilizer, seeds) from these suppliers with funds repaid from sale of produce."
"IFDC presentation to Minister of Mines (Figure 20 & 21) which outlined countries where IFDC had significant involvement (Nigeria, Mali) which had rapidly increased fertilizer use and the opportunity that exists for Angola to follow suit."
"As can be seen by the rapid large-scale development of Biocom’s fully integrated sugar industry, Angola possesses a rare agricultural growth opportunity where capital can be deployed to expeditiously advance the agricultural sector on a first world scale.Not only are there vast areas of severely underutilised land but they are prime growing regions with high quality soil, which will only be bettered with introduction of fertilizers. Region also possess tremendous reliable rainfall.With the current issues evident in the fertilizer market along with food security concerns emanating from governments worldwide along with a renewed focus on sourcing new, green forms of energy both Angola and Minbos have a rare opportunity to capitalise on the unique assets they are endowed with.Timing is everything in this business and now could not be better opportunity in attracting both the funding and technical expertise needed to progress these great agricultural and green energy assets."
