Global Potash Stocks, page-2

A nice mention for Danakali from Peel Hunt (A UK broker) yesterday:

Metals and Mining Daily Discovery: 08/11/2018

Danakali: This newly UK listed developer is running hard towards securing the ~US$300 - US$320m financing package for its fertiliser project.
Not a trendy lithium/cobalt play but still fertilisers will tap into a significant mega trend over the next few decades.

The project itself looks like it should generate very solid cash flows indeed (the deposit is shallow and has a simple low cost process plant compared with many suppliers into the SOP market) and with a truly massive resource base (the current known deposit could feed the entire SOP market for about 30 years) it means that management should also have the capability to add further mining/processing units allowing output to grow with the market.

This sounds a gimme but the deposit is in Eritrea. The country does seem to be steadily returning to the international fold as relations with Ethiopia normalise and Nevsun has operated there for some years (under a takeover offer from Lundin Mining).

That said we think it would be a shame if the jurisdiction was used as an excuse not to have the stock on the radar screen.  

Contact details

Peter Mallin-Jones
John Gilbert

Mining Analyst
Resources Specialist Sales

+44 (0)20 3597 8644
+44 (0)20 7847 4704

[email protected]
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