Report Highlights

  • NZP has entered into an agreement with a private Australian company to sell its Korella North and South phosphate properties in Australia for $3.7M in cash, and royalty payments of $9/t for the first 0.19 Mt of production, and $0.9/t thereafter.
  • Korella North has a defined resource estimate, while Korella South does not. We estimate future royalties from Korella North alone could range from at least $4M, based on the current resource estimate, to over $11M if resource upside is factored in. These estimated royalties bring the total sale price to $8M–$15M, excluding any potential royalties from Korella South. In our previous report from late 2023, we valued the Korella project at $10.2M, indicating that the final sale price (including projected royalties) could significantly exceed our fair value estimate. More importantly, NZP’s current MCAP of $6M suggests that the market is undervaluing Korella, and overlooking the company’s other key assets.