Allana Potash fka AAA

[ertwo]

"...AAA can't afford to play games with ICL...."


You got that right. Changing horses at the middle of the race is kinda-sorta dicey.


I hang my hope of the SOP project as a source of equity as a spin-off or preferred shares of Farhad's type.

Market does not seems to buy the story though....


In reviewing my haphazard notes:

Farhad mentioned that the lenders require contingency funds for cost overruns and working capital for the first year of operation.

He mentioned 35M for the working capital and undisclosed amount for the cost overruns. I would dare to guess that the total capital budget for the project (including some cost creep) would be in 750M to 800M range.

Farhad mentioned that the cost creep is not as large as feared and the FEED will quantify it further. He went on to mention that the significant portion of the components will be coming from South Asia and even from South Africa.

Farhad also mentioned that EXIM banks from the individual exporting countries would be involved and he mentioned that 100M of debt over the basic 65% mark is possible.

I am not sure how he can securitize it, but hey he might be able to pull it out with the take of pay off-take.

He answered the question how much money is in the bank right now saying something around 20M.

With the current cashburn I would guess that Allana has about a year before it has to go to the trough again.
It should be sufficient time for closing the deal, if everything goes well.


Farhad mentioned on the SOP side that there are 6 evaporation ponds in place and 1 of them will be used for PEA work. There is a production size cavern operational already.

I did not get to ask if there are any thoughts given to using this cavern for a small scale operation (100,000 t/y MOP)?

Quick back of the envelope calculations result in $15M to $20M free cash flow. This could go a great distance at this point of time.

some more notes later...