Danakali ESG Framework
Sulphate of Potash - Project Comp Economics Post-Tax
Company
DANAKALI
KALIUM
PM
TAKES
REWARD
MINERALS LTD
agrimin
SALT LAKE
POTASH LTD
THE
AUSTRALIAN
COMPANY
SOP
Lake Wells (5)
م
DANAKALI
Lake
Project-
Colluli
Beyondie Potash (1)
Lake Mackay (3)
Lake Way (4)
Disappointment (2)
Prefinancing
A$1,905m(7)
A$402m
A$293m
A$922m
A$497m
A$541m
NPV (Post Tax)
30%
23%
15%
21%
28%
N/A%
IRR (Post Tax)
A$973/t(6)
A$1,714/t
A$ 1,156/t
A$922/t
A$1,038/t
A$1,387/t
Capital Intensity
A$457m
A$280m
A$320m
A$415m
A$256m
A$268m
Initial Capex $m
8%
8%
8%
8%
8%
8%
Disc Rate (Post Tax)
A$790/t
A$714/t
A$714/t
A$714/t
A$786/t
A$733
SOP Price Estimate
(2017)
(2017)
(2019)
(2018)
(2019)
(2019)
3.25 Years
5.5 Years
6.0 Years
4.2 Years
3.5 Years
4.0 Years
Payback (Post Tax)
Mine Life
200 years
30+ years
23 years
40 years
20 years
30 years
(1)
Kalium Company Announcements. 21 May 2020. Note FEED SOP Price, 4 March 2019 US$606/t or AU$865 using FX AUD: USD $0.70 as at 20 Oct 2020. Company Announcements: 18 Sept 2018, 4 October 2017 (2) Reward Company Announcements 2 October 2019. (3)
Agrimin Company Announcements: 21 Jul 2020: Investor Presentation July 2020 (4)SO4 Company Announcements: 11 October 2020: Outstanding Bankable Feasibility Study. FX rate AUD:USD as at 20 October 2020 AU$0.70: US$1.00.(5) Australian Potash Announcements:
17 December 2019 & 13 August 2020. (6) Module 1 only, Assumes a capex of US$322 and 472 ktpa SOP production. (7) Module 1 &2. DNK owns 50% of the Colluli Project that has a NPV (Post Tax) of A$1,905m. DNK share of the NPV (Post Tax) is A$952.5m, 8% discount
rate and includes corporate tax and royalties, FX rate of 0.70, Standard Chartered Bank Financial DNK Model: Dated as at 20 October 2020. Note this excludes project expansion related to other export opportunities.
Note all previously announced NPV, IRR, Discount Rate have been at a post tax basis and all prices in US$. These figures have been provided specifically to compare DNK against Australian project economics use AU$View entire presentation