So i have highlighted a couple of paragraphs that IMO seems to...

So i have highlighted a couple of paragraphs that IMO seems to sum up KP2's current position. First is a paragraph from page 14 of the report:

"The Group’s financial projections and cash flow forecast does not include funding for the construction of the Kola project which
is subject to the successful completion of the Optimisation study and subsequent agreement to the EPC and Financing proposal
from the Summit Consortium. Under the MoU the Consortium’s Financing proposal is for the completed construction of the Kola
Project. In the event the Financing proposal is not presented or accepted by Kore Potash the Company intends to seek alternative
EPC and Financing proposals for the construction of the Kola project. Current market conditions for Potash remain strong with
the area of arable land available for crops globally reducing with very few new potash projects entering the market to meet the
increase in demand. Some producer’s exports have been stopped due to international sanctions, further reducing supply. Given
the increase in the Potash prices, the optimisation study being undertaken by the Consortium to reduce the capital costs of the
project and the increase in some supply cost driven by the current market conditions Kola remains an attractive project."

According to my understanding, the paragraph suggests that the company has enough cash reserves to keep operating until march 2023, but obviously that cash does not include the construction of the mine.

IMO it goes on to say that the Summit Consortium (the current potential financial backer of this project) needs to deliver on its promise of successfully completing and delivering the Optimisation Study, the EPC study, and then the financing proposal (3 key documents/proposals). IMO KP2 then expresses some confidence in its current standing by stating that "In the event the Financing proposal is not presented or accepted by Kore Potash the Company intends to seek alternative EPC and Financing proposals for the construction of the Kola project". IMO KP2 is basically saying that the Summit Consortium needs to deliver on its promise (the MoU), or KP2 will source an EPC and finance agreement elsewhere. IMO the paragraph ends by reiterating the strong economic and geopolitical case for Kore's potash project.

There is also another paragraph of note, on page 11, it states:

"Separate from the Summit Consortium’s activity, Kore Potash management also continued to brief potential offtake partners with the capability to procure all the Kola production and who have expressed interest in partnering with the Company."

IMO it seems that KP2 already has other potential partners lined up. Partners who have the ability to procure all of the Kola production. Isn't that like billions of dollars worth of potash.? Could this be SQM.?

Although this report makes for some dry reading, and carries a very 'matter of fact' tone, i don't think that necessarily makes it a less than favourable report. I mean it doesn't have all the 'jazz' of a hot market sensitive announcement, but i don't think that necessarily makes it unfavourable in its content.

It does seem that there is a lot of work to be done in the coming months, and that the financing situation has not yet been largely de-risked, but potentially, there are a lot of positive and optimistic signs here.

GLTAH.

All statements made are my opinion only and are not financial advice.