Allana Potash (AAA.TO) has announced an updated resource estimate on their Dallol potash project in Ethiopia.
The Measured and Indicated resource estimate totals 2.45Bt at an average grade of 17.9 % KCl, representing approximately 438 Million tonnes of KCl. This is more than an 85% increase over the previous resource estimate. The inferred resource came in at 1.1Bt grading 15.9% KCl.
This is again an excellent development, and there’s no doubt Allana will become a highly profitable player in the potash market, as the feasibility study outlined a low-capex and low-opex mine, which should generate $250M per annum in operational cash flow using a potash price of $400/t.
> You can read the press release here
Disclosure: The author holds a long position in Allana Potash. Please see our disclaimer for current positions.
