Impressive Progress - AGM

The development of the Colluli potash deposit appears to be making impressive progress on all fronts. The new simple metallurgy / extraction process is a big advance. Allana Potash on the Ethiopian side of the Danakhil Basin is now looking at producing SOP following South Boulder's changed development route at Colluli.

When compared to the Allana project next door in Ethiopia, Colluli stands out as a far better investment. Allana's market cap. is $US91M, over 3 times higher than South Boulder's ($US26M), yet is a much less attractive project. It is deeper, has thinner seams, can only be solution mined, requires massive abstraction and evaporation of groundwater to recover brine and a large evaporation pond system. Colluli can use sea water. Allana's product has to be trucked to and exported from a Djibouti port some 600 km south east. The main beneficiary under the recent Allana deal with the Israeli company ICL is certainly ICL. Allana's DFS used an MOP price of $450 a tonne which is about $100 above current prices, giving a now rosey rate of return.

In comparison, STB's market cap seems very low.