Summary of where we're at2 Apr 2018 19:57
1) 1st major sales contract of 36k tonnes signed with a major distributor.Annual production capacity being expanded to 320k tonnes early Q2.
2)Order book currently stands at more than 20 ctr's willing to buy direct from HMI rather than a distributor.This is growing by the week and the co. are building a sales channel in Brazil which is working in excess of expectations.
3)HMI have sold the product to the distributor and is only contingent on the speed of delivery from HMI.Cash is received 60 days after first delivery (expected in May) which is NORMAL credit terms.
4) There is no requirement for any more government testing on KPFertil for MAPA certification.Just a site visit expected end April
5)There is suitable infrastructure in place to facilitate delivery
6)There is no rush to develop the phosphate & potash assets in N.BrazilWe are concentrating on the asset (Arapua) which is producing cash at present and the focus is to bring this up the production curve.
7)Currently evaluating options how to deploy present & future cash.This includes developing existing assets,making acquisitions or paying dividends.Comments from shareholders are welcomed.
8)Report to be submitted early Q2 for approval to apply for full Mining Licence.
9)With the trial Mining Licence,there is no cap on quantity that can be produced.It lasts 4 years and we are 12 months into it.Saying that,the co.will probably make their application for the full Mining Licence the middle of this year in order to make things more formal.
10) There is no requirement for any placing to do any further drilling as it's very cheap to do.
All in all,everything looks very positive IMO and with a relatively small free float,once MAPA is received,I would expect the price to be much higher.BM has a masterplan here and I expect him to succeed.