Allana Potash (AAA.TO) has finally announced the outcome of the feasibility study on their 95% owned Danakhil Potash Project in Ethiopia, Africa.
The capex will be approximately $650M and the opex will be around $100/t. This results in a very respectable after-tax NPV10% of $1.32B. Although the capex has come down from $800M to $650M, some people will be disappointed as the NPV10% is now coming in 44% lower than the $2.36B NPV in the PEA, but we feel more comfortable using the lower potash-prices.
With this feasibility study, Allana should be able to finance the Danakhil project, as the company announced last year they received expressions of interests from various lenders.
Disclosure: The author holds a long position in Alana Potash Inc. Please see our disclaimer for current positions.
