Agrimin heading towards FID on WA Mackay Potash project
Agrimin ends Q4 of FY22 with $6.8m in cash; 70% of SoP offtake secured already, FID set for Q3
Mentioned
KEY POINTS
- Agrimin has released its quarterly report for the fourth quarter of FY22
- Company has $6.8 million in cash as at 30 June
- Front End Engineering Design (FEED) works for Lake Mackay Potash infrastructure ongoing; construction in August
Agrimin (ASX:AMN) is rapidly approaching a final investment decision (FID) for its flagship Mackay Potash project in WA, scheduled to occur in the next two months.
Trial construction at the company’s acreage will commence in August.
In May, the WA state government committed $100m to seal the Tanami Road, which will greatly assist smooth logistics operations at Mackay.
However, full blown construction of the total project will not progress until FID.
What is the Mackay Potash Project?
Agrimin’s WA-based Mackay potash project is seeking to manufacture Sulphate of Potash (SOP), a water soluble fertiliser.
Agrimin is hoping to enter the market at the same time fertiliser prices ride record volatility due to high energy prices and demand dynamics.
Agrimin notes on its website the Mackay project will see it become one of only four companies outside of China to produce over 450,000 tonnes per annum of SOP.
Agrimin has posted cash in bank of $6.8m at the end of the FY22 fourth quarter.
Mackay Offtake secured
Back in April, Agrimin reported it had secured some 70% of its Sulphate of Potash production under offtake agreements.
OAs have been executed with Nitron Group for 110,000tpa and Gavilon Fertilizer for 50,000tpa respectively.
A map locating the Mackay project and proposed transport routes for product
Agrimin was a Market Index client at the time of publishing. All coverage contains factual information only and should not be interpreted as opinion of financial advice.
