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One hours notice, well at least they got the date right this time, I hope.
The last webinar they got the date wrong by a month, in the past, and refused to reissue an rns with the correct date.
Getting fed up with the directors here.
I'm sure they could have given people more warning.
No new info so still no word on last piece of funding !!!
http://dehai.org/dehai/dehai-news/379524
Nothing revolutionary but covers the state of play,
"The big milestone for us is closing the funding gap – we already have $250m committed, we need a small but important balance.
“That’s what we are currently working through.”
Anybody got a time machine!!
Not very encouraging.
Webinar is important for the company profile and to get date wrong doesn't give me any confidence if they can't get something a simple as that right.
Still a holder but patience wearing thin, expect another rns if they can be bothered.
Hi CS,
I think thse cover the behavior of AFC, I thought they'd actually put it in an RNS but couldn't track it down, maybe it was just an asx announcement.
31st March (original deferrment)
https://www.danakali.com.au/images/stories/axs-announcements/2020/20200331_Danakali_provides_update_on_COVID_19_and_financing.pdf
1st June Update (waiting on some conditions)
https://www.danakali.com.au/images/stories/axs-announcements/2020/20200601_AFC_Investment_Update.pdf
Hopefully todays announcement fullfils some of the criteria, any other company and things would have gone boom today.
https://www.proactiveinvestors.co.uk/companies/amp/news/924780
As it is, the market is probably me, you, a couple of others here and Seamus Cornelius.
Hey DNK co-investors,
after someone posted a link to my first Research Report at the SO4 board I’ve received overwhelming feedback. One also suggested that I post a link to the report here because Danakali is also covered in it.
I’m a private investor who is invested in DNK for some time now. In my first Independent Research Report, I am covering the topic of Sulphate of Potash and the most promising stocks in this sector. DNK is definitely one of them. In case you are interested you can download it directly here: https://commodity-screener.com/download/717/
I would be very happy about your feedback. If you like this content you can register here for free to receive future issues: https://commodity-screener.com/research-reports/
I would also be interested to hear your opinion regarding AFC Bank's current behavior. DNK is waiting for the last tranche of their equity investment for quite some time now. Has anyone ideas for this current behavior?
Given this is the last piece of the puzzle before the construction can start it is definitely worth a discussion.
you are it will be perfect
Just read the report, available on website link is in latest rns.
Well managed and properly run company that will provide value not only shareholders but will create jobs and support local businesses in Eritrea for many many years.
Looking forward to the inevitable rise in shareprice over the coming months and fully expect dividends at some stage.
GLA
Feels like things are progressing well, slowly but well.
https://www.proactiveinvestors.co.uk/companies/news/920099/danakali-close-to-completing-feed-capital-and-schedule-update-for-sop-project-920099.html
Be interesting to see if Shore drum up any support, I'll be honest they're not in my good backs given a previous potash debacle!
Full report in todays Shore Capital Newsletter....
DANAKALI^ (DNK, NR, CNP) – Chairman Seamus Cornelius makes
further on-market purchase; Eritrea successfully flattening COVID-19 curve.
Chairman Seamus Cornelius clearly has significant faith in Danakali’s prospects:
he has purchased on-market another 50k shares @ A$0.3753/share (i.e. c.
A$18.8k’s worth, or c.£10k).
• He had previously purchased: earlier this month, 44.6k shares @
A$0.3699/share (A$16.5k or £8.6k); and, in February 2020, 77.9k shares
@ A$0.57/share (c.A$44.3k or c.£23k). As a result, he now has direct and
indirect interests in 5.0m shares and 5.5m shares, respectively. Danakali
currently has 318.7m shares in issue.
• The Chairman hasn’t been the only buying. Encouragingly, just last week,
CEO Niels Wage bought A$18.8k’s (c.£10k) worth of Danakali shares (50k
shares @ A$0.375/share, or c.19.5p/share).
Meanwhile, according to the blog of the UNDP (United Nations Development
Programme) Africa, Eritrea has been successfully leveraging on social capital to
“flatten the [COVID-19] Curve”. At the time the article was published (1st May,
2020), Eritrea reportedly had only 39 infections and zero deaths. The article
credited this to the Eritrean government’s communal approach, which involved
“engaging communities as frontline disseminators of risk-communication, and
promoting social distancing”.
Danakali is developing the Colluli SOP (Sulphate of Potash) project in Eritrea.
According to the company’s March 2020 report, Phase 2 of the Engineering,
Procurement & Construction Management (EPCM) programme is “materially on
track”, and that Danakali remains relatively well-funded for the time being (ending
the period with A$22.7m of cash).
• Much of the Phase 2 EPCM work currently underway is desk-based in
nature, focused on completing the capital re-estimate and revision of the
project schedule.
• The cash pile is sufficient to last 8.8 quarters, assuming March 2020
quarter’s burn rate (excluding one-offs) – with the possibility of even longer,
given that Danakali anticipates “prudent spending” (restricted to areas
critical to Colluli’s development) resulting in a lower burn rate from Q2
2020.
Colluli is a 50:50 joint venture (CMSC) with the Eritrean National Mining
Corporation (ENAMCO).
• The project has a JORC 2012-compliant resource of 1.1Bt @ 10.5% K2O
for 203Mt of contained SOP-equivalent, which in theory could potentially
allow a mine life of nearly 200 years.
• Colluli is currently envisaged as a 60-year project developed in two stages:
Module I is to produce 472ktpa SOP; Module II would see this increasing
to 944ktpa from Year 6.
• A FEED study was completed in January 2018, wherein the capital cost of
Module I was estimated at US$302m. On a 100% basis, FEED estimates
of post-tax NPV10% (real) and IRR were US$902m and 29.9%, respectively,
assuming an average SOP price of US$569/t and a standard:granular
product split of 56:44.
Quantum,
The only ones I know of are the smaller SOP brine projects being developed in Western Australia.
Kalium Lakes, Salt Lake Potash, Agrimin, Reward Minerals, BCI Minerals, Trigging Mining.
But they are all brine, so evaporative ponds etc are necessary and annual production forecasts are much smaller than DNK if they ever do go into production.
They won't make a dent in what DNK are planning.
DNK will also send all of the Mannheim SOP producers out of business.
Dirty, pollution, climate killing Mannheim will be over.
This project ticks every box.
Slurms,
I've been in it since the I.P.O in 2004!
But in the potash boom of 2011/12 our price went from 10c to $6 in a very short space of time.
Yes, the appointment of Todd is important as the world's investment funds continue to look at ESG metrics as investment criteria.
We just need to get DNK noticed by one of these funds and that is what I'm working on.
Talking to NASDAQ Corporate Solutions ESG about this.
Price is a double edged sword on the one hand it's nice to top up occasionally at these levels. On the other hand if further equity is to be raised the higher the price the better, I've only been in this since August it must feel like an eternity for the earlier investors on ASX.
Can't help but feel the appointment of Todd Romaine is very significant, we might see a PR push from him based on the UN report. Let's see.
I haven't bought any more shares in DNK since 2015-ish.
But at these levels, I'm adding a few here and there.
You just have to check out AfricaFC website at www.africafc.org and see where this is heading.
AFC's core mission is to address Africa's infrastructure development needs while seeking a competitive return on capital for their shareholders.
Since inception they have committed US$3bn to funding large scale infrastructure projects across Africa, including:
PORTS and ROADS.
Ports in Gabon, ports in Mauritania, port extension in Ghana, other ports across West Africa.
I think that behind the scenes the DNK agenda is to:
1/ Get this project up & running
2/ Get production/export up to 1mtpa through the current port of Massawa (230km away)
3/ Get AFC to fund and build a new port at Anfile Bay (87km away) (no cost to dnk)
4/ Ramp up production/export of SOP to 2mtpa, then 3mtpa, then 4mtpa, then 5mtpa
5/ Start shipping the rock salt, gypsum, sopM
6/ Make massive annual profits for the next 100-200 years
7/ Pay massive dividends to shareholders every year for the rest of our lives.
I kinda wish the company would push this bullish scenario.
They are too conservative in my opinion.
Agree maybe management have been to conservative, but they have delivered the goods as construction is about to start and will be producing in 2022, for over 200 years.
Time to get out and about promoting Danakali, maybe a Daily Mail article would not go amiss or an lse.co.uk interview, EML's CEO does them very well and to great effect.
Thanks Jono
Think its very misunderstood.... quick summary...
- The 200 year mine life is correct - whats crazy is that the deposit is shallow and never been closed off - meaning it could actually be even bigger! But is already the largest SOP (and possibly MOP) deposit in the world
- SOP is the most valuable form of potash - and Colluli's SOP has been tested to be the highest quality SOP in the world (nb there are three elements you need to grow everything, and they are irreplaceable - Nitrogen, Phosphate and Potassium or Potash. Potash is the most valuable of the three.
- Colluli is the only open pit potash project in the world - why? Because they are all ~ 1 km underground. So its the cheapest to produce, and the lowest risk. It also sits on a major shipping channel - The Red Sea.
So to summarise, Colluli is the largest, best quality, cheapest to produce and lowest risk potash project in the world. Which makes it the most strategic and valuable of all potash deposits.
Management has been extremely conservative, which is the reason that the price is where it is now. But with the funding all but complete, a fire is about to be lit here...
-
Good post Tony and along with today's rns and having read the new presentation on the website I can't see any reason not to invest here.
This share is definately flying below everyones radar at the moment but it's just to good stay that way.
Construction starting soon, funding derisked, government giving full backing, massive resource,
could go on and on, 200 year mine life, just had to get that in again!
Lots of other companies on lse just paying wages to directors but this one and a few others actually have people who are willing to get the job done and realise shareholder value.
Will keep topping up here before it gets on others radar because then the price will increase quite quickly especially when production starts. GLA
So this is getting very, very interesting now...
When you read the following JP Morgan announcement below, and put it with the start of this thread ie only mining project on the planet to have UN sustainability approvals - there is about to be a huge amount of interest in this company...
New York, January 21, 2020
J.P. Morgan (NYSE: JPM) today announced the creation of the J.P. Morgan Development Finance Institution (DFI) to expand its development-oriented financing activities in emerging markets. In consultation with leading development institutions, J.P. Morgan has created rules-based criteria to help identify business activities and opportunities that generate both financial and developmental returns.
“By defining eligible transactions and anticipating their impact, we can help attract much-needed private investment to developing countries,” said Daniel Pinto, Co-President of JPMorgan Chase and CEO of the Corporate & Investment Bank. “Our aim is to increase engagement with clients and investors interested in financing critical projects and transactions in emerging markets.”
By defining eligible transactions and anticipating their impact, we can help attract much-needed private investment to developing countries. Our aim is to increase engagement with clients and investors interested in financing critical projects and transactions in emerging markets. Daniel Pinto, CEO of Corporate & Investment Bank, J.P. Morgan
Leading J.P. Morgan’s new effort is Faheen Allibhoy, a seasoned manager and investment professional with deep experience in emerging markets and development finance. Allibhoy, who will be based in New York, had an 18-year career at the International Finance Corporation, most recently as Country Manager responsible for operations and client relationships in West Africa. Daniel Zelikow, Global Head of J.P. Morgan’s Public Sector Group and Co-Head of the Infrastructure Finance and Advisory practice, will chair the DFI’s governing board.
The United Nations estimates that achieving the Sustainable Development Goals – which seek to address basic infrastructure, food security, climate change, health, and education – by 2030 will require $5 to $7 trillion per year, with an annual investment gap of about $2.5 trillion in developing countries. By galvanizing private capital towards this ambition, the J.P. Morgan DFI aims to help narrow the funding gap.
With its newly-launched Development Finance Institution, J.P. Morgan expects to attract additional investment into emerging economies – including connecting philanthropic or concessional funds with private capital to spur investment through blended finance models. In 2019 alone, J.P. Morgan served clients in 82 of the 144 World Bank-eligible borrowing countries. The DFI estimates that J.P. Morgan will be able to finance development activities valued at more than $100 billion annually from investment banking transactions alone, with additional contributions from its markets busines
Also never got into sxx but did consider it, sorry for those that did but it did seem to be a good investment at one time.
Not finished my research here yet but I am leaning toward it even though it might be a slow burner for a while but better to get in early that regret it later.
Mine life of 200 years that's outstanding, only 16m below surface, funded, 50:50 with gov a good thing, bringing employment were its needed, will help,the economy and people, ok convinced myself but will have to free up some funds hmmm.
Nice article here
https://www.mining.com/danakali-begins-work-to-get-eritrean-potash-project-off-the-ground/
https://www.youtube.com/watch?v=uW2Y2Wx_cRM
Danakali CEO, Niels Wage, details recent developments and plans for 2020.
Mainly talks about polyhalite as competition, but good to hear from Neils Wage.
24-27 months to get up and running.
https://m.miningweekly.com/article/anglos-polyhalite-entry-likely-to-hit-mop-more-than-sop-danakali-2020-01-21
And ... A reminder as the world turns to sustainability:
1/ DANAKALI'S Colluli Potash Project is the only mining project on planet earth to have United Nations sustainability approvals.
2/ It achieved an unprecedented 13 out of the 17 U.N. sustainable development goals.
3/ No.13 of these goals was 'Climate Action'
4/ Other goals included: 'No Poverty', 'Zero Hunger', 'Responsible Production and Consumption'
The U.N.D.P report:
http://www.danakali.com.au/images/stories/UNDP-Report-on-Colluli.pdf
Hi Slurms,
Actually I'm not a believer in polyhalite, other than it is a 500,000 tpa market. I am a believer in potash however, which is the most valuable of the three elements needed to grow everything on the planet (Nitrogen, Phosphate and Potash or potassium), and is irreplaceable. SOP is the best quality potash available as it doesnt leave residual salt when its used (hence the price premium).
No I dont really want to see DNK taken over - there is a lot, lot more upside for shareholders when it goes into production - and construction is about to start NOW.
Nice feedback on Eritrea, all I've had to go on so for are a wiki page and the twitter feed of Seamus Cornelius.
I personally don't think danakali would compliment AAL s proposed purchase of sirius, if you have faith in polyhalite then that's up 13 million tons of low chloride fertiliser you need to shift.
I think a mop producer could be a better fit. (Dnk could produce it at some point but hopefully you get what I mean)
That said BHP have played a hand with the Jansen project, we now have AAL looking to get in. It stands to reason the other big miners will be sniffing around. Away from Danakali im pretty sure someone will try to consolidate all the Aussie native potash plays like SO4, APC and KLL.
Question is, would you actually want Danakali to be snapped up?
Danakali watches Anglo’s move on Sirius as potash space heats up
Anglo American’s offer for Sirius Minerals values the UK potash project holder at £386mln (US$508mln).
Danakali Ltd - Danakali watches Anglo’s move on Sirius as potash space heats up
Danakali is at the pre-development stage of the Colluli Potash Project in Eritrea
Danakali Ltd (ASX:DNK) (LON:DNK) (OTCMKTS:SBMSF) is closely watching the progress of Anglo American plc’s (LON:AAL) takeover bid for Sirius Minerals PLC (LON:SXX) as the potash market heats up.
The global mining giant’s offer for Sirius, which owns the Woodsmith Potash Project in the UK, values the target at £386mln (US$508mln).
Danakali’s keen interest comes as it is in the pre-development stages of the world-class Colluli Potash Project in Eritrea.
Demand for world-class projects
A report prepared for Danakali by Numis said: “Anglo American's potential offer for Sirius Minerals ... highlights the potential for consolidation in the potash space and the demand for world-class projects, of which Colluli is one.
“In contrast to Woodsmith, Colluli is near-surface, with lower capital intensity and produces a product for which there is an established global market and pricing mechanism.”
Anglo’s proposal represents a premium of 34.1% to the closing price of 4.1 pence per Sirius share on January 7, 2020, and 46.5% to the volume-weighted average price of 3.75 pence per share since the September 17, 2019, strategic review announcement.
The Board of Sirius has indicated to Anglo American that it expects to be able to recommend a firm offer for Sirius if made at the price stated in the initial offer.
Strong interest in potash
Danakali said that Anglo had the resources to develop the asset and was looking to shift away from commodities such as thermal coal.
The LSE and ASX listed company said the offer indicated that major miners were taking a strong interest in potash and other green commodities.
In its report, Numis said: “We retain a Buy recommendation for Danakali and a target price of 70 pence based on 0.6x NAV, with the main upcoming catalysts being finalising the project funding package and commencing development.
“DNK achieved a number of key milestones in 2019, securing both project debt and a strategic investor to underpin the development of Colluli.”
“Fits well with Anglo’s strategy”
Anglo said in a statement: “Anglo American identified the project as being of potential interest some time ago, given the quality of the underlying asset in terms of scale, resource life, operating cost profile and the nature and quality of its product.
“The project has the potential to fit well with Anglo American’s established strategy of focusing on world-class assets, particularly in the context of Anglo American’s portfolio trajectory towards later cycle products that support a fast-growing global population and a cleaner, greener, more sustainable world.”