Key operational highlights

  • Completion of the Front End Engineering Design (FEED) Study, confirming Colluli as the most advanced stage greenfield SOP project globally with industry leading capital intensity, first quartile costs, a project level NPV of US$902 million and IRR of 29.9% for Module I & II.
  • Updated JORC-2012 compliant Ore Reserve report for Colluli completed as part of FEED, estimating:
    • ? 1100 Mt @ 10.5% K2O Ore Reserve
    ? 203 Mt of contained SOP equivalent
    ? Expected mine life of almost 200 years at FEED production rates
  • Signed binding take-or-pay offtake agreement with global partner EuroChem Trading GmbH (EuroChem) for up to 100% of Colluli Module I SOP production for an initial 10-year term, with an option to extend a further 3 years.
  • Successful admission to trading on the London Stock Exchange (LSE) Main Market, helping to increase the company’s reach to international institutions and raise the profile of the Project.
  • Significant positive developments in Eritrean-Ethiopian relations including signing of peace treaty.
  • CMSC’s Social and Environmental Management Plans (SEMPs) were agreed and finalised following an extensive review process by the Eritrean Ministry of Land, Water & Environment’s Department of Environment.
  • DRA Global confirmed as preferred Engineering Procurement Construction & Management (EPCM) contractor for Colluli.

Key financial highlights

  • Cash position of AUS$9.6 million as at 31 December 2018.
  • Executed non-binding indicative US$200 million debt term sheet and associated mandate with highly reputable African development finance institutions (DFIs) the African Export-Import Bank (Afreximbank) and Africa Finance Corporation (AFC), to fund construction and development of Colluli.