India and IFCThe updated Company Presentation tells us two telling points.
We know Farhad is in discussions to secure Off-Take Agreement(s) for our potash....no mention of China...but India is highlighted...we all know that India is frustrated with both the Canadian and Russian Potash Cartels...India wants to pay $470 per ton and the cartels say no way its $500 per ton...India would be well served with a secure supply of KCL at a discounted rate as long as they fund all or part of our Capex....India needs 6 million tons and we could supply 2 million tons of their ongoing needs...makes sense to me...Farhad also has the IFC onside to support Allana at the construction stage...
Getting a signed sealed and delivered Off-Take Agreement will come first...and then after the bankable feasibility study he can get an inked deal with the IFC...
He has also stated that he is looking for a "Lead Bank" to coordinate up to 60% of the $900 million Capex required...
Securing Offtake #1 with India that is signed would be great...Securing "conditional" Offtake Agreements #2 and #3 for the balance of the total capex....to only be finalized in one years time...this gives Farhad 1 year to secure the 65% balance of capex required...in one years time we need all financing secured as the BFS will be completed and we will be ready to move into the mine construction phase....
In the end...Farhad may not need a Lead Bank to get the 60% of long term debt financing he referred to in the conference call...he has options...the market needs to see that those that have done their due dilligence on Allana and Ethiopia...put their money where their mouths are...
It appears to me that ..."Someone"...seems to think that they will benefit from Allana trading below $2.00 per share....if I was thinking of making an "offer"....I would want to keep the shares trading low....dont be fooled...the value for Allana is real and the market wants to see something in writing to confirm how the company "pays for it" and moves the resource into production...
Karma
| Closest supplier to India, the second largest potash importer |
IFC will also support Allana at the construction stage (IFC invested $18 billion in private enterprises worldwide in 2010)