ddzx, From what I have read previously the financing of mines is typically over 5 to 6 years only. Do not think the banks finance over 25 years and not for mines in Africa.
There is no doubt that their model will reflect financing over this 5 to 6 year period, if not quicker.
Not sure how the above will affect your calculations?
In terms of the potash price being in the ranges you indicated, which are correct, I am of the view that the lower the potash price the more viable ELM will be in relation to peers and major producers. ELM has great grades, some of the lower depths and incredibly well located to the big off takers.
Looking at the January announcement with the Summit offer, it indicated that there would be further exploration in Yangala. This will be a good move if the resource proves.
With the Yangala potential grades of between 55% to 60% KCl, the opex must be in line, if not lower than Dougou (20% to 24% KCl) where the studies indicated at $68 per ton Mop.
Combine this with Kola (33%KCl) at 91$ per ton Mop, this must make one of the leading resources in the world.
I reckon ELM has all the key factors for a good potash resource, low depths, quantum, great grades and excellently located.
This is a wait and see, but I reckon the time to close out the deal shows something substantial is coming, especially when combined with the calibre of the team.
K2P Price at posting:
15.5¢ Sentiment: Buy Disclosure: Not Held
