KP2 (ASX) KP2 Discussion

Originally posted by Quest09: ↑

KP2 Project Funding

So project funding for KP2's Kola project is our next BIG milestone after KP2 recently signed an Engineering, Procurement and Construction (EPC) contract with PowerChina.

IMO, KP2 has already largely come to an agreement about project funding, and there remains only the formalities of receiving the Financing Term Sheet and the signing of the Finance Contract for funding to be officially secured.

I derive my opinion directly from the market announcements released by KP2 (as per below screenshots for example), where KP2 appears to confidently state: "the Summit Consortium includes OWI Global, headquartered in Abu Dhabi, who will provide royalty financing in conjunction with product offtake" and "the consortium has advised that the financing term sheet for the construction cost of Kola will be provided to the Company within three months of the execution of the EPC contract".

IMO, project funding has been all but formally secured for a long time, and IMO the formality of securing the required funding is not at risk.

....but who is OWI Global.? See below for more details.

OWI Global

On speculation, OWI Global appears to be a sovereign wealth fund for the United Arab Emirates (UAE), based in Abu Dhabi.

OWI Global appears to be tasked with diversifying UAE investments away from oil & gas in preparation for a post-oil-world (as per in below images).

OWI Global appears to focus on providing funding within four key areas of interest, with Food Security being the first listed.

As we know, potash fertilizer is a critical mineral in the effort to ensure global food security, and as we know KP2 is building a potash mine which is has one of the shallowest deposits globally, and is also among one of the highest grade undeveloped potash projects globally.

Furthermore, KP2's potash mine is located in the UAE's region, so local investment in local food security would make sense for OWI Global and would also align with OWI Global's stated investment goals.

If i'm on the right track here, then once again, the claim that KP2's project funding is all but formally secured is looking to be pretty strong IMO.

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Originally posted by Quest09: ↑

Nasdaq Fertilizer Index puts in another strong showing overnight. Up 2.35% on the back of a 7% rise last week.

Now approaching resistance level for the 4th time.......but looking very strong on the approach..

A breakthrough of resistance could see the fertilizer market in general enter a new bullish cycle.

Would be GREAT timing for KP2 to secure funding, sign offtake agreements, and start project construction amidst a bullish fertilizer market in general.

We could end up seeing a KP2 share which is much higher than we expected.

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A canadian company called Nutrien is the single largest producer of potash in the world, with over 20 million tonnes of capacity (per annum ??) (as per below screenshot from Nutrien website).

Above attached post shows the Nasdaq Fertiliser Index on a bullish approach to resistance, and the below chart image shows the price action of Nutrien (also looking bullish IMO). Both the Nasdaq Fertiliser Index and Nutrien appear to be attempting a breakout into a new long term uptrend.

As previously mentioned, it would be GREAT timing for KP2 to secure project funding, sign offtake agreements, and begin project construction amidst a bullish fertiliser market in general.

Also, in the Half Yearly Report, released only about 4 months ago, KP2 spoke about the potential sale of the DX Project, which is a smaller and financially attractive defined potash resource owned by KP2 (as per below screenshot from the Half Yearly Report).

I imagine the potential sale of the DX Project would be more likely to occur within a bullish fertiliser sector, so i wonder if an announcement about the successful sale of the DX Project is also on the cards for KP2 (maybe a sale to a cashed-up Chinese fertilizer company seeking to secure supply??).

If we did receive an announcement about the sale of the DX Project, alongside the expected announcements about Kola project funding, signed offtake agreements, and the start of Kola project construction, that would certainly be fantastic.

A sale of the DX Project would fill the cash balance of KP2s bank accounts in BIG way, and would also further significantly rerate the KP2 market cap.

GLTAH.