KP2 Discussion, page-661

Broker notes posted in London:

Our view: We note that with the EPC contract price now confirmed, the total project capex (EPC contract price + owners’ cost) now c.5% cheaper compared to the definitive feasibility study (DFS) published in 2019. Furthermore, the fixed price nature of the EPC contract minimises and protects Kore from capital cost overruns. We also highlight that close to 40% of the total contract price is earmarked for the construction of transportation links and utility pipelines - a key point in our view as this will render the Kola Project self-sufficient and not reliant on the state with regards to infrastructure. While in the near-term we continue to believe that potash prices will remain in the US$275-300/t band, our view of the potash market remains constructive, and we continue to see annual demand growth of c.3% pa driven largely by the need for agricultural yields to feed a growing global population in the face of a limited supply of arable land. House Stock.

Financing is the next key project milestone: While the financing structure for the financing of the Kola Project remains outstanding, we believe that in line with the non-binding memorandum of understanding signed in 2021, the Summit consortium is expected to deliver to Kore a non-binding term sheet for Kola’s financing within three months from the signing of the EPC.

Expected timeline for next milestones: The signing of a firm EPC contract is a key milestone as it ticks off a major project precursor and sets in motion a targeted timeline to first production. Below we summarise indicative timeline of the key development milestones ahead:

• End of February 2025 – receipt of non-binding financing term sheet from the Summit consortium.

• End of April 2025 – completion of the Early Works under the Early Works Agreement; the Early Works are designed to accelerate progress during the financing and enable construction to commence after signing a full set of legally binding financial agreements.

• 2H25: Financial close under the EPC; Final notice to proceed (FNTP) issued under the EPC; Commencement of construction under the EPC.

• 2H29 – first production at the Kola project.

They believe we should be trading at 4p. Lot's of upside from here before financing is agreed - then we should be significantly higher than that!