KP2 0.00% 1.2¢ kore potash plc

Just found an interesting article which i believe significantly...

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    Just found an interesting article which i believe significantly increases the chances of a successful signing of the EPC contract between PowerChina and Kp2 (see article below).

    In November 2023, just past, PowerChina signed a major contract to build a highway from Bossarangba to Mbaikiin in the Central African Republic (US $65 million in value).
    The highway starts in the Republic of Congo's (RoC) city of Pointe-Noire. Pointe-Noire in the RoC is the city in which KP2 is building its potash mine.

    If PowerChina has already signed a contract to build infrastructure within the RoC, then it is highly likely that PowerChina would be super interested in having a second construction project within Pointe-Noire (exactly where Kp2's project exists). Reason being, PowerChina's mobilisation costs for the highway project will cover a large portion of the mobilisation costs of KP2's project if PowerChina also secure the KP2 EPC contract, meaning a larger profit margin can be achieved by PowerChina if it builds two major project in Pointe-Noir, rather than just the one road project.

    Basically, the economy of scale is MUCH better to build two major infrastructure projects in Pointe-Noir than it is to build one project.

    GLTAH. =)



    https://hotcopper.com.au/data/attachments/6120/6120148-cd37d881e37bef093455792fdb6d2b02.jpg
    https://hotcopper.com.au/data/attachments/6120/6120154-1f72194c4d252f4eaefd1ac06f652816.jpg
 
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