Highlights12 Mar 2019 20:14
From feasibility study Jan 19
Highlights:
Business case highlights potential of the Kola asset
· Post-tax, NPV10 (real) of US$1,452M and a real ungeared IRR of 17% on an attributable basis at life-of-mine average Muriate of Potash ("MoP") prices for granular of US$360/t CFR Brazil and standard of US$350/t CFR Brazil
· Operating cash margin averaging 75%
· Average annual EBITDA of approx. US$585M
· 24% annual free cash return on invested capital
· Average annual free cash flow, post-tax, post commissioning of approx. US$500M
· 4.3-year post-tax payback period from first production
Industry leading operating costs and cost of sales
· Mine gate operating cost (pre-transshipment) averaging US$61.71/t, which is in the lowest cost quartile globally based on equivalent CRU market data
· Kola forecast to be lowest cost potash supplier CFR Brazil based on CRU market data
· Significant competitive advantage via low mine gate costs and short shipping distance to Brazil and West African markets
· Average cost of MoP delivered to Brazil of US$102.47/t
Long life and high quality asset
Project financials
Total revenue
US$M 25,508
Average Annual Revenue
US$M 773
Pre-production capital cost
US$M 2,103
Total project post tax free cash flow (gross)
US$M 14,545
Post tax, real un-geared NPV (10% real)
US$M 1,452