Re: Questions for all A gamers on AAA ?
in response to
by
posted on
Dec 29, 2014 12:34AM
Focusing on the Dallol Potash Project in Ethiopia
I expect we will find out further details at the Jan AGM / Special meeting, I would expect financing will be on track for Q1 2015.
As for the MOP project not being feasible, the last interview with RK states the following. This is why I believe the funding relies on the further testing of the larger caverns as well as the water recharge rates.
The SOP PEA was announced IMO to negotiate a better price with ICL if a potential buyout were to occur. The other factor very well may be the Chinese engineering group who is looking to build the MOP mine. They have shown interest in the SOP due to the strong demand in China for SOP and a very tight and growing SOP market. Regardless this card that Farhad had played is only going to benefit the overall value of Allana providing the SOP PEA process to be positive. Work YARA doing extensive work next door, I believe much of the ground work to understand the extraction process has already been done. I believe Farhad has mentioned that they have been sharing information with YARA and vice versa. In the end the SOP PEA will provide a good indication on 75% of Alana's property value. With $600-700/ton SOP, it's a no brainer that Allana move this project forward sooner than later to beat others who are considering SOP development. (ICP).
With Allana’s low capex numbers, Kelertas says it can continue to deliver a high rate of return once the mine is at its full capacity of one million tonnes per year. “The very low cost structure means that we can be profitable even at a U.S.$300 to $350 spot price. Other projects won’t get off the ground unless the price is $500 or higher, so many of them are looking at 2020 or beyond before they might get back on the drawing board.”