Business
Kola Project optimisation study outcomes
Kola Project optimisation study outcomes.
About this update from Kore Potash Plc
[{"type":"text","content":"\n \n 27 June 2022\n \n \n Kore Potash Plc\n \n \n \n (\"Kore Potash\" or the \"Company\")\n \n \n \n \n \n \n Kola Project optimisation study outcomes\n \n \n \n \n \n \n \n \n Kore Potash, the potash development company with 97% ownership of the Kola and DX Potash Projects in the Sintoukola Basin, located within the Republic of Congo (\"RoC\"), is pleased to provide additional information on the outcomes of the optimisation study (\"Study\") for the Kola Potash Project (\"Kola\" or the \"Project\").\n \n \n \n \n \n The Company has completed its review of the Study undertaken by the engineering partner of the Summit Consortium (\"Consortium\"), SEPCO Electric Power Construction Corporation (\"SEPCO\") as announced in \"\n Kola optimisation study received\" on 1st April 2022.\n \n \n \n \n \n The Kola production target and forecast financial information has now been updated to incorporate the results of the optimisation study.\n \n \n \n \n \n \n Highlights\n \n \n \n \n \n \n \n ·\n \n \n \n \n Capital cost is reduced by US$520 million to US$1.83 billion on an engineering, procurement and construction (\"EPC\") basis compared to the DFS capital cost of US$2.35 billion on an equivalent EPC basis.\n \n \n \n \n \n \n ·\n \n \n \n \n Construction period reduced to 40 months from the DFS construction period of 46 months.\n \n \n \n \n \n \n ·\n \n \n \n \n Key financial metrics improved on DFS outcomes (at potash pricing averaging US$360/ tonne unchanged from the DFS):\n \n \n \n \n \n \n \n \n \n \n \n \n \n o \n Kola NPV10 post tax improved to US$1.623 billion\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n o \n IRR improved to 20% on ungeared post tax basis\n \n \n \n \n \n \n \n \n \n ·\n \n \n \n \n At a potash price of US$1000/t MoP CFR Brazil (less than current potash price of approximately US$1100/t MOP CFR Brazil) the Kola financial metrics improve to:\n \n \n \n \n \n \n \n \n \n \n \n \n \n o \n Kola net present value (\"NPV\")10 post tax US$ 9.354 billion\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n o \n Internal rate of return (\"IRR\") of 49% on ungeared post tax basis\n \n \n \n \n \n \n \n \n \n ·\n \n \n \n \n Kola designed with a nameplate capacity of 2.2 million tonnes per annum (\"Mtpa\") of Muriate of Potash (\"MoP\")\...