28/04/2020 Australian Potash defies tumbling market with offtake deal | The West Australian
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Mining Australian Potash defies tumbling market with offtake deal Stuart McKinnon The West Australian Monday, 16 March 2020 6:51PM Stuart McKinnon
Australian Potash managing director Matt Shackleton with a sample of the company’s harvested potash-rich salts. Credit: The West Australian
Australian Potash shares closed firmer after the company locked in a locally-based offtake agreement with Sydney-based chemicals company Redox.
Under the binding 10-year agreement, Australian Potash will supply the company with 20,000tpa of sulphate of potash from its proposed Lake Wells project north-east of Laverton.
The deal will give Redox exclusive rights to sell and distribute Australian Potash’s trademarked K-Brite potash product across Australia and New Zealand.
https://thewest.com.au/business/mining/australian-potash-defies-tumbling-market-with-offtake-deal-ng-b881490938z 1/4 28/04/2020 Australian Potash defies tumbling market with offtake deal | The West Australian Australian Potash also said it was well advanced with discussions with other tier 1 offtake partners covering Asia, Europe, the Americas and China.
Australian Potash managing director Matt Shackleton said ultimately APC will have a large proportion of the planned 150,000tpa of production from the Lake Wells under offtake.
A definitive feasibility study released in August last year put a $208 million price tag on Lake Wells, that is expected to deliver annual pre-tax free cashflows of $100 million and life-of-mine pre-tax free cashflows of $3.1 billion over a 30-year minelife.
The company’s shares defied a deeply negative day on the ASX to close 1¢ higher at 7¢.
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