PEA Confirms Viabilty of a Low-Cost Potash Mine in Africa

Published: 5/13/2024

Author: FRC Analysts

*See important disclosures at the bottom of this report

Sector: Basic Materials | Industry: Other Industrial Metals & Mining

Ticker Symbols:

MLP.V - TSX 🔹

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A Preliminary Economic Assessment (PEA) on the Banio potash project in Gabon, Western Africa, returned robust economics, with an AT-NPV10% of US$1.1B, and a high AT-IRR of 33%, using US$387/t granular Muriate of Potash (gMOP) vs the spot price of US$305/t. MLP is trading at just 1% of the AT-NPV10%.
The project can be advanced to production within three to four years. We believe Banio stands out among undeveloped potash projects with its comparatively low initial CAPEX of US$480M, and OPEX of US$61/t, attributed to its amenability to solution mining.

We believe there is significant resource expansion potential as the current estimate only covers 1.5% of the project area. MLP is aiming to complete a resource update in H2-2

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