The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
https://www.pscp.tv/w/c0IZpzFtTUVQdmJBQXpXS0d8MWdxeHZvWGJQT3BLQklUy7ZrswQHiUt8P8sPs4_OCNrrSDAZnkfODAS-4WzZ
Interesting podcast. Going over much the same as before but quoting potash price in the USA of $350 per tonne.
https://twitter.com/UKInvestorMAG/status/1381185255483207681?s=20
Certainly MoP, and OCP contract is a done deal Redroy.
What I believe is more likely that OCP, sign an off-take contract and that be the leverage to gain funding from elsewhere?
However, if another company offers a better price that’s where the potash goes?
Doing the right thing does involve looking at the bigger picture. The Moroccan government is super generous. Doing the right thing doesn’t necessarily view price per ton rate as the be all and end all of a decision to sign a contract. That perhaps the chicken & egg scenario?
Evening all,
AudibleEnergy, you are correct that OCP are focused on developing their in-house operations. however, the Moroccan Govt., their 95% shareholder has the wider ambition to develop and diversify the Processing capabilities in-Country. OCP are Phosphate rock miners and Phosphate Fertilizer producers, they are not MOP producers, which is why they currently import all their Mop ( Potassium) requirements. Graham Clarke again re-iterated that our MOP is likely to be sold in Morocco, so an offtake agreement with OCP seems inevitable. This may involve buying into EML to assist development, and as bluepalace points out, it would be in both parties interests to do so, particuarly as they have what we need to produce SOP, and could extend our mine life by either JV-ing their exploration licences next to our resources, or takeover of EML further down the track - a win/win for us investors at this stage.
It makes perfect sense for both OCP and EML to reach an agreement - it is a win win for both parties. We will have to wait for the details but it is likely to include a supply agreement. Possibly EML supplies all of its potash to OCP at a favourable market rate (still extremely profitable for EML because OCP are next door so no transportation costs). In return OCP agrees to inject a significant amount of money into EML to expand the mine life to greater than 50 years, as well as support the SOP and salt workstreams. You can’t under- estimate the experience that EML has here in the potash space - this is very valuable to OCP. Once in production, it wouldn’t surprise me if OCP buy out EML but I think any takeover is a couple of years away. All speculation at this stage of course.
Redroy, I view from the OCP, website a commitment to invest in their own four Potash mines. They own their chickens and eggs. No where do I read that they be setting their flock free, or creation of a larger flock of birds to be managed by another company a wholly separate entity with a board also independent.
Let us agree that some of funds OCP hold fir investment be for EML? We are now very close to the final permit, we have the front and back end of the mine either completed or in the process completion. OCP, cannot commit to funding EML, without a commitment from EML, to supply potash. No commitment to supply then no investment possible?
OCP, won’t fund just to see potash sail off into the distance. I’m perplexed that a wholly independent entity could first receive funding without a supply commitment lasting the entire life of the mine. And then add to that what price is paid? Obviously if OCP, fund EML, they could force terms and conditions? Sure OCP, could get a genuine bargain from any serious investment? They already own and operate four mines. What reason fund a private entity?
OCP, could at a later date once EML, is fully operational swap their mineral rights for equity? This situation were Moroccan government owned hydrocarbon rights, the government with Sound Energy, done a deal believe was to the value 290 million £$.
My point is I very much doubt the scenario you put forward unless we see a supply contract first.
Afternoon AudibleEnergy,The Moroccan Govt., do indeed own 95% of OCP. With a revenue turnover of ~ U$ 5.6Billion in 2019, and a Development Strategy to invest U$20Billion by 2027 in predominantly Moroccan based Mining and Processing capacity, ( especially on export related Products). I don't see funding being an issue for them as far as Emmerson are concerned. They do have well stated investment criteria, but from what I know about our " Doing the right thing at the right time " ethics to building and operating the Project, imo, we should fit nicely with their requirements. They do need the Potassium contained in the MOP, to enable them to manufacture their range of customized Fertilizers across Africa. Using " home sourced " Mop at a competitive price would assist their aims, and they could also include SOP in their portfolio at a later date. The best advice I can give you, would be to visit the OCP website as this will give a fuller insight into that organization. Hope this helps with your query.