Fourth offtake deal signed by Australian Potash

AUSTRALIAN Potash has 85% of its planned Lake Wells production under offtake agreement after signing a deal with Hamburg-based HELM AG for 30,000t per annum of sulphate of potash to be distributed in Europe.
Fourth offtake deal signed by Australian Potash Fourth offtake deal signed by Australian Potash Fourth offtake deal signed by Australian Potash Fourth offtake deal signed by Australian Potash Fourth offtake deal signed by Australian Potash

HELM joins Redox, Migao and Mitsui as the four offtake parties so far signed up by APC for a total of 130,000tpa of production versus the 150,000tpa expected from Lake Wells, 500km northeast of Kalgoorlie in Western Australia.

Meanwhile, APC is continuing down the financing route, with a final investment decision targeted for the end of March 2021.

Lake Wells has a development capital cost estimate of A$208 million.

In terms of metrics, a pre-tax net present value of $665 million and an internal rate of return of 25% has been calculated.

APC had cash at the start of the current quarter of $3.4 million.

Shares in APC were up 2.5% to 7.8c in afternoon trade, capitalising the company at $30 million.

APC is one of a handful of ASX-listed potash companies currently closing in on development and production.