Gordon Tainton, the new president of Focus Ventures (FCV.V) is proving why he was hired, as the company has now signed two Memorandum of Understandings to deliver 2 X 1 million tonnes of phosphate per year to Keytrade and Indagro.
As the news flow from the company was practically non-existing in the past 12-18 months since the PFS was published, these are very welcome important parts of the jigsaw puzzle. The PFS has confirmed the very strong economics of the Bayovar 12 project in Peru, so the lack of progress since the PFS was very frustrating.
With two (non-binding) offtake agreements, Focus Ventures can now show its potential lenders there’s definitely demand for the product, which would be an important hurdle to clear anyway, and we still hope Focus Ventures will be able to get the project across the finish line on its own, unless it could get an important and experienced joint venture partner to agree on fair JV terms.
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The author has a long position in Focus Ventures. Please read the disclaimer
