DuSolo Reaches Full Production Capacity at Bomfim Processing Plant

DuSolo Fertilizers (TSXV:DSF) has had a busy year, making big sales deals for its direct-application natural fertilizer (DANF) while continuing to expand the phosphate resource at its Bomfim project in Brazil.

On Wednesday, the good news continued with the company announcing that the processing plant at Bomfim has reached its full production capacity of 20,000 tonnes per month. The plant now running 5.5 days a week with two shifts, for a total of 20 hours per day with about 900 tonnes being produced daily.

Naturally, the company’s president and CEO, Eran Friedlander, is pleased with the news. ”This will be the first full planting season in which DuSolo will be producing fertilizers. At our current production rate, we are able to deliver on all sales contracts currently in place,” he said in a press release. “With the anticipated increased capacity, the company will be in a position to enter into additional sales contracts this year, thereby addressing the growing demand for DANF in the region.”

The company plans to produce at least 100,000 tonnes of DANF during the current planting season, which kicked off in late May. And indeed, the mining permits the company currently has in place only allow it to produce that amount; however, DuSolo submitted an application earlier this year to expand its mining capacity to 200,000 tonnes per year.

Next steps at Bomfim

As mentioned, DuSolo has put in an application to double its allowable mining capacity at Bomfim. Initially it planned to have that capacity in place by March, but a longer-than-expected rainy season and infrastructure-related issues caused delays.

That said, the company hasn’t let those problems get it down. It’s hard at work on the expansion, and at the moment three hammer mills, additional conveyor belts and electrical infrastructure are being installed in order to increase annual production capacity to 160,000 tonnes per year. The expansion is expected to be complete in about two months and is expected to cost C$315,000.

In addition to taking steps to expand its mining capacity, DuSolo has also constructed an on-site laboratory so it can test its DANF products and ensure the quality of the varying grades it comes in: 12 percent, 15 percent and 18 percent P2O5.

For those that aren’t familiar with DANF, it’s a product that comes from high-grade phosphate and is applied directly to soil in its natural, organic form. The company is the sole supplier of the product within Bomfim’s 500-kilometer region. DuSolo’s most recent sales deal will see it supply a Brazilian fertilizer distributor with 60,000 tonnes of 15 percent P2O5 over two years at a price of C$5.5 million.

At close of day Wednesday, DuSolo’s share price was unmoved, trading at C$0.18.

Securities Disclosure: I, Kristen Moran, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: DuSolo Fertilizers is a client of the Investing News Network. This article is not paid-for content.

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