First Tidal Acquisition Corp T.AAA

One -Two - or Three?

[Karmanow]

Bob, I will do this one just for you++ as it appears we have to wait lets see what Dundee believes Allana can do with a positive Resource Estimate in the near future.  Please understand that these are Dundee's numbers and the application of basic Math. In consideration of those posters that appear to have pre- resource estimate release worries about our resource proving up to be a World Class Deposit I will look at this in reverse...and let you make your own assumptions and conclusions....important to note...at the end of the day Allana will need a maximum of 875 million tonnes in the Measured and Indicated Categories to get the 3 million tonnes of KCL sold per year....anything higher is a bonus.
We heard a couple of things today worth considering as well:
The SOP that we plan to mine WILL be solution mined +/or open pit mined as we have the method in hand to process the ore...thanks sodamae++ for posting Farhads response to you
We also heard (thx alfalfa for posting his email to you++) that the Memo Of Understanding with the China Minerals Co. is on the "back burner" for now...and we will wait to see just how serious they are when Farhad moves to derisk the financing of the capex during the Bankable Feasibility Study....he reconfirmed discussions with Indian Ag Companies...this is good news.
Both China and India are investing into the infrastruture of Ethiopia....so both countries are potential Offtake Candidates for Allana. Most important on the financing side was Dundee's statement that Liberty and the IFC are here for the long term and are going to assist taking us to a mine....very good news.

Dundee Capital Markets recently forecast potash price targets of from $700 to $750 per tonne within 24 months, so the upper end of Allana’s potential extraction rate (3 MTY) could yield revenues of over $2.1 billion per year, with Dallol also being in the lowest cost quartile of potash producers worldwide

If you are not convinced that Allana has enough potash to build a mine....please stop reading as this post will not help you.
*We need to understand that there is a premium of $150 per tonne for the 50% of SOP we plan to mine and this premium is not included as the calculation is based on Dundee's MOP at $700 per tonne..
**The calculation below does not include any ore mined from Open Pit where we have the potential to have an extraction rate of 80% versus the 35% extraction rate used for Solution Mining
***We need to also understand that the resource estimate going to be released will not contain all of the drill holes completed...likely 13 or 14 out of 21 drill holes...bear this in mind when the resource is released!
**** I am assuming 300 million shares outstanding - (Liberty + IFC and/or Offtake Agreement) for $400 million of financing confirmed and made public and then Allana share offer at $4.00 x 100 million shares for the balance of capex of $400 million

A 1 million tonne mine of KCL per year at 25%KCL = 4 million tonnes of ore... extracted at 35% =
11.5 million tonnes of ORE...25 year mine requires 287 million tonnes in the Measured and Indicaed Categories
1 million tonne mined of sellable KCL per year = $700 per tonne - $150 opex = $550 net per tonne x 1 million tonnes = $550 Million dollars / 300 million shares = $1.83 EPS x 10 times earnings = $18.30 per share

A 2 million tonne mine of KCL per year at 25%KCL = 8 million tonnes of ore... extracted at 35% = 
23.0 million tonnes of ORE...25 year mine requires 575 million tonnes in the Measured and Indicaed Categories
2 million tonne mined of sellable KCL per year = $700 per tonne - $150 opex = $550 net per tonne x 2 million tonnes = $1.10 Billion dollars / 300 million shares = $3.66 EPS x 10 times earnings = $36.70 per share

A 3 million tonne mine of KCL per year at 25%KCL = 12 million tonnes of ore... extracted at 35% = 
35.0 million tonnes of ORE...25 year mine requires 875 million tonnes in the Measured and Indicaed Categories
3 million tonne mined of sellable KCL per year = $700 per tonne - $150 opex = $550 net per tonne x 3 million tonnes = $1.65 Billion dollars / 300 million shares = $5.50 EPS x 10 times earnings = $55.00 per share