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Hi Slurms
Yes I think that has always been the perception.
But given the Ethiopian Prime Minister was recently awarded the Nobel Peace Prize and the two countries have opened the border, it is fair to say the old tensions no longer exist.
Geopolitical risks exist everywhere - including the UK. What are the import duties going to look like post Brexit guys?
I have been to Eritrea, and can assure you that much of the bad reputation was a result of previous Ethiopian regimes, unhappy that when Eritrea won their war of independence with Ethiopia, they took all the ports, leaving Ethiopia landlocked - a pretty good reason to be unhappy! So with the borders now open, those tensions have dissolved.
I'm guessing people are being skittish because of the location.
Take away that and it's easily the best prospect out there.
Considering how far along they are, it's worth a punt, but IMO geopolitcal risks exist, and this is reflected in the bargain basement price.
Colluli is the biggest potash deposit in the world (and has never been closed off).
Its the best quality potash deposit in the world.
Its the cheapest to produce potash in the world.
and... (in the words of the DNK CEO) it is the lowest risk potash to produce in the world.
Which in essence, means it is the most strategic and valuable potash deposit in the world. (Dont believe me? Look it up.)
So if a potash company in Yorkshire that has in essence failed because it couldnt attract funding has just been taken over for twice the price - whats DNK worth?
Via equity
https://www.danakali.com.au/investor-relations/asx-announcements
Looks like they're ready to go.
Still a little bit more to be raised and and it's still dependent on dotting the I's and crossing the T's. DYOR
Thanks SlurmsMckenzie for the suggestions. I was looking for something more technical (geological). I found the CPR in the Prospectus, so I wasn't sufficiently diligent when I went through the website the first time. "My bad" as da 'yuf say, init?
https://www.danakali.com.au/images/Danakali_Prospectus.pdf
I remain unconvinced with several aspects of the proposal but I hope this works for investors.
Signing off.
Further text
Competent Persons Statement (Sulphate of Potash Mineral Resource)
Colluli has a JORC-2012 compliant Measured, Indicated and Infe rred Mine ral Resource estimate of 1,289Mt @11% K20. The resource contains 303Mt @ 11% K20 of Measured Resources, 951Mt @ 11% K20 of Indicated Resources and 35Mt @ 10% K20 of Inferred Resources.
The information relating to the 2015 Colluli Mineral Resource estimate was compiled by Mr. John Tyrrell, unde r the supe rvisio n of Mr. Stephen Halabura M.Sc. P. Geo. Fellow of Engineers Canada (Hon), Fellow of Geoscientists Canada, and a geologist with ove r 25 yea rs’ experience in the potash mining industry.
Mr. Tyrrell is a member of the Australian Institute of Mining and Metallurgy and a full-time employee of AMC. Mr. Tyrrell has more than 25 years’ experience in the field of Mineral Resource estimation.
Mr. Halabura is a member of the Association of Professional Engineers and Geoscientists of Saskatchewan, a Recognised Professional Organisation (RPO) under the JORC Code and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Explora tion Results, Mineral Resources
and Ore Reserves (the JORC Code).
Mr. Tyrrell and Mr. Halabura consent to the inclusion of information relating to the 2015 Resource Statement in the form and context in which it appears.
Competent Persons Statement (Sulphate of Potash Ore Reserve)
The January 2018 Colluli Ore Reserve is reported according to the JORC Code and estimated a t 1,100Mt @ 10.5% K2O Equiv. The Ore Reserve is classed as 285Mt @ 11.3% K2O Equiv. Proved and 815Mt @ 10.3% K2O Equiv. Probable.
The Competent Person for the estimate is Mr Mark Chesher, a mining engineer with more than 30 years’ experience in the mining industry. Mr. Chesher is a Fellow of the AusIMM, a Chartered Professional, a full-time employee of AMC
Consultants Pty Ltd, and has sufficient open pit mining activity experience relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the JORC Code. Mr Chesher consents to the inclusion of information relating to the Ore Reserve in the form and
context in which it appears.
In reporting the Mineral Resources and Ore Reserves referred to in this public release, AMC Consultants Pty Ltd acted as an independent party, has no interest in the outcomes of Colluli and has no business relationship with Danakali other than undertaking those individual technical consulting assignments as engaged, and being paid according to standard per diem rates with reimbursement for out-of-pocket expenses. Therefore, AMC Consultants Pty Ltd and the Competent
Persons believe that the re is no conflict of interest in undertaking the assignments ... and so on
Not sure if this helps wit the FEED
https://www.danakali.com.au/images/stories/axs-announcements/2018/20180129_FEED_results.pdf
Search for table 7
And Appendix B for the estimation and reporting of ore reserves.
Any use?
I am a prospective PI. Seems to be a lot about SOP and potential markets on Danakali website but no CPR (independent description and review of resource), of FEED and also no SEIA text. I like to know what I am buying in to and this sounds like "trust us". More show over substance?
https://www.youtube.com/watch?v=VOzYyWWu-RY
From a recent expo in Munich.
Nothing concrete to report but more of the same.
Still working on the equity component expecting an announcement in a couple of months. Given how fast the company operates I'm expecting that to be 6 months!
https://www.proactiveinvestors.co.uk/companies/news/905878/danakali-hopes-to-secure-eritrean-potash-jv-financing-and-move-to-colluli-project-execution-905878.html
This share has taken a lot of patience.
What is Numis, the 'corporate broker' doing?
Sack them and appoint Canaccord to get investors interested in this stock.
Sirius are going under, this is the potash stock to be on but Numis are USELESS !
SXX £20 per share?? I wish lol. I'd have a fleet of Range Rovers if it was
also track the changes in Eritrea of the last 6 months. Sanctions lifted, peace made with their neighbours.. DNK has developed this project to a high level in a country that has re-rated, to produce a product that is essential for the next 200 years. SOP increases crop yields and reduces the amount of water required in farming. So its a food and water story in an African country that has become a less risky jurisdiction. Every project in Eritrea that got permitted and licensed has been a success.. DNK will be no different. Investors must be crowding the sidelines for it to be trading this low still.
Superior product to Sirius, plus FEED level study and nearing finance closure. 44pence to Sirius's 20 pounds per share.
DNK is a sleeping giant.
Speculative Buy Recommendation
I was fairly impressed by DNK's presentation. By far a superior product to Sirius and their resource is 16m deep not 1.6km!
Did anyone go along and hear it? If so, any comments??
DNk are in London and presenting to shareholders and others, preumably ahead of the expected fundraising. The share price will do little until that is done and dusted.
The improved geo politics in the region will help their cause enormously. The deposit is first class.
Has anyone had a look at DNK's metrics and compared to peers in the fertilizer/potash market ?
Sirius for example has a market cap 16 x that of DNK and a quarter of the reserve. DNK is new to the LSE but has been on this project since around 06. They have completed the FEED study and signed take or pay off-take agreements for all of the produce from phase i with EuroChem. Seems like the company is undervalued to me. Would be curious to hear other peoples views.
Bit like wlw board here dead and buried
Spread 200% lock in
lol i remember the days when smiler23 ramped this one into the 5p range, with a forecast of 10p per share. Just shows the reason that people who are optimistic should also be realistic.