good solid announcement with great detail..looks like minimal...

good solid announcement with great detail..

looks like minimal shareholder dilution moving forwards..."Under the Summit’s proposed financing structure, the Company will not contribute to the capital needed to build the Kola Project and will retain a 90% equity interest in Kola."

No mention of second mine to either develop or sell.
Obviously no information in the announcement that has restricted Hathorne from participating in recent cap raise. Could be a few reasons, most obvious would be discussions relating to takeover offer given the global significance of the project...

Still extremely cheap at these levels, and even more so when funding secured compared to BCI Minerals which is developing a project with less strategic relevance, with higher operating costs.

BCI Market cap - AUD $808m
Steady state Salt & SOP EBITDA of ~AUD $385M
c.60% EBITDA margins at steady state

KP2 Market cap - AUD$300m (approx)
EBITDA projected approx USD $544m ( AUD $831.6m)
EBITDA margins 75%



EBITDA based on low Potash price which is very low compared to previous prices.
If they develop the second / third mines and dont sell, would expect EBITDA to exceed USD $1bn

Obviously not a direct like for like comparison as BCI is a Salt and Potash project.

The other comparator, Mosaic Group..
Market Cap - USD $8.09bn
EBITDA - USD $1.8bn
EBITDA margin approx 18%

The Mosaic Company is a producer and marketer of concentrated phosphate and potash crop nutrients. The Company is a provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry. The Company operates through three segments: Phosphates, Potash and Mosaic Fertilizantes. Phosphates segment sells phosphate-based crop nutrients and animal feed ingredients throughout North America and internationally. Potash Segment sells potash throughout North America and internationally, principally as fertilizer, but also for use in industrial applications and, to a lesser degree, as animal feed ingredients. Mosaic Fertilizantes Segment produces and sells phosphate-and potash-based crop nutrients, and animal feed ingredients, in Brazil. In addition to five phosphate rock mines, four chemical plants and a potash mine in Brazil, the segment consists of sales offices, crop nutrient blending and bagging facilities, port terminals and warehouses in Brazil and Paraguay.

KP2 definitely an attractive takeover target. Lets hope an acquisition doesnt occur prior to production.

Only my opinion...good luck to long term holders..