Allana Potash Corp. (TSX:AAA,OTCQX:ALLRF) announced that the feasibility study for its Ethiopia-based Danakhil potash project has returned positive results, including an after-tax net present value of US$1.32 billion.
According to the press release, highlights of the study include:
After-tax NPV@10% $1.32 billion After-tax IRR (based on 35% income tax rate) 33% Estimated Total Capital Expenditures (including production, port and logistics and contingency) $642 million Estimated Total Operating Expenditures (Production, transportation, port, FOB on vessel) $98.75/tonne MOP Payback period 3.1 years Total MOP product from Proven and Probable Sylvinite Reserves 23.7 million tonnes
Farhad Abasov, president and CEO of Allana, commented:
Allana is extremely pleased with the very positive Feasibility Study of its Danakhil Potash Project, as prepared by ERCOSPLAN. Even with current potash market realities driving the lower potash price forecast of USD $430/tonne used in the FS, the favourable total production CAPEX of about US$579 million and port and transport CAPEX of US$63 million, make this project one of the lowest cost and potentially highest return greenfield potash projects worldwide.