Materials

Agrimin ends Q1 with $9m in bank, secure offtake

Thu 28 Apr 22, 11:12am (AEST)
Potash 1 - Sack bag and granular mineral fertilizer, top view

Stocks in article

amn
MktCap:
-

Share article

Key Points

  • Cash balance sitting at $9m for end of Q1FY22
  • Capital raising of $10m completed in the quarter
  • Agrimin sees 70% of its Sulphate of Potash (SOP) secured by offtake agreements

Agrimin Limited (ASX:AMN) is securing its commercial position with 70% of SOP to be produced at its flagship Mackay Potash Project in WA now locked in with Offtake Agreements (OA).

The company executed OAs with Nitron Group for 115,000 tonnes per annum and Gavilon Fertilizer for 50,000tpa SOP in the quarter. 

At the same time, the potential for efficient logistics operations onsite the Mackay project has been enhanced by the Federal Government’s decision to provide $400m in funding to seal Tanami Road in WA. 

The infrastructure works allow Agrimin a greater opportunity to ensure the safe and cost-effective trucking of materials from the project site to secondary locations and buyers. 

Schematics detailing the location of the Mackay Project
Schematics detailing the location of the Mackay Project

Healthy cashflows underpinning WA Mackay Potash Project

With $9.2m cash in bank at the end of Q1 and a capital raising of $10m completed in the quarter, Agrimin’s development of its Mackay Potash Project appears a reliable bet to roll out on-schedule and on-budget.

The recent wrap-up of Front End Engineering Designs (FEED) for Agrimin’s envisioned SOP processing plant sees the Mackay project heading towards Final Investment Decision. 

Earlier this week, the WA EPA accepted the company’s initial environmental plan documentation and confirmed the company will not need to go through the Federal environmental approvals process. 

Native Title negotiations and secondary safety and works applications remain in momentum as the company continues to check its boxes. 

Capital raising sees 62m new shares in Q1

As part of two separate placements in the quarter, the company issued 14.3m new shares as it pulled in two tranches of $5m to a total of $10m. 

It also issued a further 47m new ordinary shares through a bonus issue of one new share for every five already held. The bonus issue sought to reward shareholders in the company patiently waiting for Mackay to make FID. 

Agrimin intends for the expanded share base to allow for higher liquidity in day-to-day trades of company shares. Expenditure for the quarter was $1.43m. 

The shape of Agrimin's charts over the last year
The shape of Agrimin's charts over the last year.

 

Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

Get the latest news and media direct to your inbox

Sign up FREE